BHP said on Friday that the US Securities and Exchange Commission and Department of Justice had notified the group “of the issues they consider could form the basis of enforcement actions and discussions are continuing”.
The issues “relate primarily to matters in connection with previously terminated exploration and development efforts, as well as hospitality provided as part of the company’s sponsorship of the 2008 Beijing Olympics”, the miner said.
It said: “BHP Billiton is fully committed to operating with integrity and the group’s policies specifically prohibit engaging in unethical conduct. BHP Billiton has what it considers to be a world class anti-corruption compliance programme.”
The miner has been under investigation by the SEC for four years.
Reports earlier this year in Australia said that instead of using the Olympics affiliation to promote its products, BHP allegedly ran a “behind-the-scenes campaign to improve relations with its most important clients – those who run China’s state-owned steel-making firms”.
Chinalco, Baosteel and the China Iron and Steel Association were reportedly among those BHP wooed around the time of the Olympics, which came when the mining giant was being criticised in the media for high iron ore prices.
The Anglo-Australian miner said its own internal investigation launched several years ago found evidence regarding possible bribery of foreign government officials and the information was disclosed to relevant authorities, including the US Department of Justice.
Reuters reports that penalties for violations of the US Foreign Corrupt Practices Act can vary widely, depending on, among other factors, the extent and duration of the violations, the level of benefit the company received, and the level of cooperation from the target of the probe.
The SEC declined to comment and the Department of Justice was not immediately available for comment.
BHP reports full-year results on August 20, the first under new chief executive Andrew Mackenzie.