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Provisions (Tables)
 12 Months Ended
Jun. 30, 2020
Provision for dividends and other liabilities [member]  
Statement [LineItems]  
Summary of Provisions
The disclosure below excludes closure and rehabilitation provisions (refer to note 14 ‘Closure and rehabilitation provisions’), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 25 ‘Employee benefits, restructuring and post-retirement employee benefits provisions’) and provisions related to the Samarco dam failure (refer to note 4 ‘Significant events – Samarco dam failure’).
 
   
2020
  2019 
   
US$M
  US$M 
Movement in provision for dividends and other liabilities
   
At the beginning of the financial year
  
 
501
 
  944 
Dividends determined
  
 
7,234
 
  11,302 
Charge/(credit) for the year:
   
Underlying
  
 
1,027
 
  372 
Discounting
  
 
3
 
  10 
Exchange variations
  
 
(356
) 
  101 
Released during the year
  
 
(94
) 
  (391) 
Utilisation
  
 
(99
) 
  (338) 
Dividends paid
  
 
(6,876
) 
  (11,395) 
Transfers and other movements
  
 
(100
) 
  (104) 
  
 
 
  
 
 
 
At the end of the financial year
  
 
1,240
 
  501 
  
 
 
  
 
 
 
Comprising:
   
Current
  
 
258
 
  220 
Non-current
  
 
982
 
  281 
  
 
 
  
 
 
 
Samarco dam failure [member]  
Statement [LineItems]  
Summary of Financial Impacts of Samarco Dam Failure
The financial impacts of the Samarco dam failure on the Group’s income statement, balance sheet and cash flow statement for the year ended 30 June 2020 are shown in the table below and have been treated as an exceptional item.
 
Financial impacts of Samarco dam failure
  
2020
  2019  2018 
   
US$M
  US$M  US$M 
Income statement
    
Other income
(1)
  
 
489
 
  50   – 
Expenses excluding net finance costs:
    
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure
(2)
  
 
(64
) 
  (57)   (57) 
Loss from equity accounted investments, related impairments and expenses:
    
Samarco impairment expense
(3)
  
 
(95
) 
  (96)   (80) 
Samarco Germano dam decommissioning
(4)
  
 
46
 
  (263)   – 
Samarco dam failure provision
(5)
  
 
(459
) 
  (586)   (429) 
  
 
 
  
 
 
  
 
 
 
Loss from operations
  
 
(83
) 
  (952)   (566) 
Net finance costs
(6)
  
 
(93
) 
  (108)   (84) 
  
 
 
  
 
 
  
 
 
 
Loss before taxation
  
 
(176
) 
  (1,060)   (650) 
Income tax benefit
  
 
–
 
  –   – 
  
 
 
  
 
 
  
 
 
 
Loss after taxation
  
 
(176
) 
  (1,060)   (650) 
  
 
 
  
 
 
  
 
 
 
Balance sheet movement
    
Trade and other payables
  
 
(5
) 
  4   4 
Provisions
  
 
(137
) 
  (629)   (228) 
  
 
 
  
 
 
  
 
 
 
Net liabilities
  
 
(142
) 
  (625)   (224) 
  
 
 
  
 
 
  
 
 
 
 
      
2020
     2019     2018 
      
US$M
     US$M     US$M 
Cash flow statement
       
Loss before taxation
   
 
(176
) 
   (1,060)    (650) 
Adjustments for:
       
Samarco impairment expense
(3)
   
95
    96    80  
Samarco Germano dam decommissioning
(4)
  
 
(46
) 
   263    –  
Samarco dam failure provision
(5)
  
 
459
 
   586    429  
Net finance costs
(6)
  
 
93
 
   108    84  
Changes in assets and liabilities:
       
Trade and other payables
  
 
5
 
   (4)    (4)  
   
 
 
   
 
 
   
 
 
 
Net operating cash flows
   
 
430
 
   (11)    (61) 
   
 
 
   
 
 
   
 
 
 
Net investment and funding of equity accounted investments
(7)
   
 
(464
) 
   (424)    (365) 
   
 
 
   
 
 
   
 
 
 
Net investing cash flows
   
 
(464
) 
   (424)    (365) 
   
 
 
   
 
 
   
 
 
 
Net decrease in cash and cash equivalents
   
 
(34
) 
   (435)    (426) 
   
 
 
   
 
 
   
 
 
 
 
(1)
 
Proceeds from insurance settlements.
 
(2)
 
Includes legal and advisor costs incurred.
 
(3)
 
Following a change to IAS 28 ‘Investments in Associates and Joint Ventures’ the loss from working capital funding provided during the period will be disclosed as an impairment included within the Samarco impairment expense line item and not as operating loss. Comparative periods have been restated to reflect the change.
 
(4)
 
US$37 million change in estimate and US$(83) million exchange translation.
 
(5)
 
US$916 million change in estimate and US$(457) million exchange translation.
 
(6)
 
Amortisation of discounting of provision.
 
(7)
 
Includes US$(95) million funding provided during the period, US$(365) million utilisation of the Samarco dam failure provision, and US$(4) million utilisation of the Samarco Germano decommissioning provision.
Summary of Provisions
Provisions related to the Samarco dam failure
 
      
2020
      2019 
      
US$M
      US$M 
At the beginning of the financial year
   
 
1,914
 
    1,285 
Movement in provisions
   
 
137
 
    629 
Comprising:
      
Utilised
  
 
(369
) 
    (328)  
Adjustments charged to the income statement:
      
Change in estimate - Samarco dam failure provision
  
 
916
 
    579  
Change in estimate - Samarco Germano dam decommissioning
  
 
37
 
    263  
Amortisation of discounting impacting net finance costs
  
 
93
 
    108  
Exchange translation
  
 
(540
) 
    7  
   
 
 
    
 
 
 
At the end of the financial year
   
 
2,051
 
    1,914 
   
 
 
    
 
 
 
Comprising:
      
Current
   
 
896
 
    440 
Non-current
   
 
1,155
 
    1,474 
   
 
 
    
 
 
 
At the end of the financial year
   
 
2,051
 
    1,914 
   
 
 
    
 
 
 
Closure and rehabilitation provisions [member]  
Statement [LineItems]  
Summary of Provisions
 
   
2020
  2019 
   
US$M
  US$M 
At the beginning of the financial year
  
 
6,977
 
  6,330 
Capitalised amounts for operating sites:
   
Change in estimate
  
 
1,255
 
  494 
Exchange translation
  
 
(188
) 
  (194) 
Adjustments charged/(credited) to the income statement:
   
Increases to existing and new provisions
  
 
731
 
  318 
Exchange translation
  
 
(19
) 
  (7) 
Released during the year
  
 
(43
) 
  (33) 
Other adjustments to the provision:
   
Amortisation of discounting impacting net finance costs
  
 
356
 
  353 
Expenditure on closure and rehabilitation activities
  
 
(258
) 
  (201) 
Exchange variations impacting foreign currency translation reserve
  
 
(1
) 
  (2) 
Divestment and demerger of subsidiaries and operations
  
 
–
 
  (80) 
Other movements
  
 
–
 
  (1) 
  
 
 
  
 
 
 
At the end of the financial year
  
 
8,810
 
  6,977 
  
 
 
  
 
 
 
Comprising:
   
Current
  
 
373
 
  361 
Non-current
  
 
8,437
 
  6,616 
  
 
 
  
 
 
 
Operating sites
  
 
6,636
 
  5,535 
Closed sites
  
 
2,174
 
  1,442 
  
 
 
  
 
 
 
Employee benefits, restructuring and post-retirement employee benefits provisions [member]  
Statement [LineItems]  
Summary of Provisions
 
   
2020
   2019 
   
US$M
   
US$M
 
Employee benefits
 (1)
  
 
1,313
 
   1,140 
Restructuring
 (2)
  
 
34
 
   78 
Post-retirement employee benefits
 (3)
  
 
547
 
   493 
  
 
 
   
 
 
 
Total provisions
  
 
1,894
 
   1,711 
  
 
 
   
 
 
 
Comprising:
    
Current
  
 
1,283
 
   1,154 
Non-current
  
 
611
 
   557 
(1)
 
The expenditure associated with total employee benefits will occur in a pattern consistent with when employees choose to exercise their entitlement to benefits.
 
(2)
 
Total restructuring provisions include provisions for terminations and office closures.
 
(3)
 
Refer to note 26 ‘Pension and other post-retirement obligations’.
Summary of Reconciliation of Employee Benefits, Restructuring and Post-retirement Employee Benefits
 
2020
  
Employee
benefits
  
Restructuring
  
Post-
retirement
employee
benefits
(3)
  
Total
 
   
US$M
  
US$M
  
US$M
  
US$M
 
At the beginning of the financial year
  
 
1,140
 
 
 
78
 
 
 
493
 
 
 
1,711
 
Charge/(credit) for the year:
     
Underlying
  
 
1,224
 
 
 
26
 
 
 
65
 
 
 
1,315
 
Discounting
  
 
–
 
 
 
–
 
 
 
36
 
 
 
36
 
Net interest expense
  
 
–
 
 
 
–
 
 
 
(21
) 
 
 
(21
) 
Exchange variations
  
 
(31
) 
 
 
(1
) 
 
 
(34
) 
 
 
(66
) 
Released during the year
  
 
(127
) 
 
 
(12
) 
 
 
(1
) 
 
 
(140
) 
Remeasurement gains taken to retained earnings
  
 
–
 
 
 
–
 
 
 
81
 
 
 
81
 
Utilisation
  
 
(893
) 
 
 
(58
) 
 
 
(70
) 
 
 
(1,021
) 
Transfers and other movements
  
 
–
 
 
 
1
 
 
 
(2
) 
 
 
(1
) 
  
 
 
  
 
 
  
 
 
  
 
 
 
At the end of the financial year
  
 
1,313
 
 
 
34
 
 
 
547
 
 
 
1,894
 
  
 
 
  
 
 
  
 
 
  
 
 
 
(3)
 
Refer to note 26 ‘Pension and other post-retirement obligations’.