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Significant events - Samarco dam failure (Tables) - Samarco dam failure [member]
 6 Months Ended
Dec. 31, 2019
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 half year ended 31 December 2019 are shown below and have been treated as an exceptional item.
 
Financial impacts of Samarco dam failure
  
Half year

ended

31 Dec

2019

US$M
   
Half year

ended

31 Dec

2018

US$M
  
Year

ended

30 June

2019

US$M
 
Income statement
              
Other income
(1)
   40    –   50 
Expenses excluding net finance costs:
              
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure
(2)
  
 
(25
)
 
   (33)   (57) 
Loss from equity accounted investments, related impairments and expenses:
              
Samarco impairment expense
(3)
  
 
(27
)
   (47)   (96) 
Samarco Germano dam decommissioning
(4)
  
 
7
 
   –   (263) 
Samarco dam failure provision
(5)
  
 
56
 
   (70)   (586) 
   
 
 
   
 
 
  
 
 
 
Profit/(loss) from operations
  
 
51
 
   (150)   (952) 
Net finance costs
(6)
  
 
(57
) 
  
 (60)   (108) 
   
 
 
 
  
 
 
  
 
 
 
Loss before taxation
  
 
(6
) 
  
 (210)   (1,060) 
Income tax benefit
  
 
–
 
  
 –   – 
   
 
 
 
  
 
 
  
 
 
 
Loss after taxation
  
 
(6
) 
  
 (210)   (1,060) 
   
 
 
   
 
 
  
 
 
 
Balance sheet movement
              
Trade and other payables
  
 
–
 
   2   4 
Provisions
  
 
186
 
   38   (629) 
   
 
 
   
 
 
  
 
 
 
Net assets/(liabilities)
  
 
186
 
   40   (625) 
   
 
 
   
 
 
  
 
 
 
   
Half year ended

31 Dec
 
2019

US$M
   
Half year ended

31 Dec 2018

US$M
  
Year ended

30 June 2019

US$M
 
Cash flow statement
                           
Loss before taxation
       
 
(6
) 
       (210)       (1,060) 
Adjustments for:
                           
Samarco impairment expense
(3)
  
 
27
 
        47       96     
Samarco Germano dam decommissioning
(4)
  
 
(7
)
 
        –       263     
Samarco dam failure provision
(5)
  
 
(56
)
 
        70       586     
Net finance costs
(6)
  
 
57
 
        60       108     
Changes in assets and liabilities:
                           
Trade and other payables
  
 
–
 
        (2)       (4)     
   
 
 
   
 
 
   
 
 
  
 
 
  
 
 
  
 
 
 
Net operating cash flows
       
 
15
 
       (35)       (11) 
        
 
 
       
 
 
      
 
 
 
Net investment and funding of equity accounted investments
(7)
       
 
(207
)
 
       (215)       (424) 
        
 
 
       
 
 
      
 
 
 
Net investing cash flows
       
 
(207
)
 
       (215)       (424) 
        
 
 
       
 
 
      
 
 
 
Net decrease in cash and cash equivalents
       
 
(192
)
 
       (250)       (435) 
        
 
 
       
 
 
      
 
 
 
 
(1)
Proceeds from insurance settlements.
(2)
Includes legal and advisor costs incurred.
(3)
Loss from working capital funding provided during the period.
(4)
US$
(
6
)
 
million change in estimate and US$
13
 million exchange translation.
(5)
US$(28) million change in estimate and US$84 million exchange translation.
(6)
Amortisation of discounting of provision.
(7)
Includes US$(27) million funding provided during the period, US$(177) million utilisation of the Samarco dam failure provision and US$(3) million utilisation of the Samarco Germano decommissioning provision.
Summary of Provisions
Provisions related to the Samarco dam failure
 
 
  
 
 
 
31 Dec
2019

US$M
 
 
 
 
 
30 June
2019

US$M
 
At the beginning of the reporting period
  
   
 
 
1,914
 
 
   
 
 
1,285
 
Movement in provision
  
   
 
 
(186
) 
 
   
 
 
629
 
Comprising:
  
   
 
   
 
   
 
   
Utilised
  
 
(180
) 
 
   
 
 
(328
) 
 
   
Adjustments charged to the income statement:
  
   
 
   
 
   
 
   
Change in estimate — provision for Samarco dam failure
  
 
28
 
 
   
 
 
579
 
 
   
Change in estimate — Samarco Germano dam decommissioning
  
 
6
 
 
   
 
 
263
 
 
   
Amortisation of discounting impacting net finance costs
  
 
57
 
 
   
 
 
108
 
 
   
Exchange translation
  
 
(97
) 
 
   
 
 
7
 
 
   
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At the end of the reporting period
  
   
 
 
1,728
 
 
   
 
 
1,914
 
 
  
   
 
 
 
 
 
   
 
 
 
 
Comprising:
  
   
 
   
 
   
 
   
Current
  
   
 
 
500
 
 
   
 
 
440
 
Non-current
  
   
 
 
1,228
 
 
   
 
 
1,474
 
 
  
   
 
 
 
 
 
   
 
 
 
 
At the end of the reporting period
  
   
 
 
1,728
 
 
   
 
 
1,914