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Provisions (Tables)
 12 Months Ended
Jun. 30, 2021
Provision for dividends and other liabilities [member]  
Statement [Line Items]  
Summary of Provisions
The disclosure below excludes closure and rehabilitation provisions (refer to note 15 ‘Closure and rehabilitation provisions’), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 26 ‘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’).
 
    
2021
     2020  
    
US$M
     US$M  
Movement in provision for dividends and other liabilities
                 
At the beginning of the financial year
   
 
1,240
 
     501  
Dividends determined
   
 
7,894
 
     7,234  
Charge/(credit) for the year:
                 
Underlying
   
 
260
 
     1,027  
Discounting
   
 
2
 
     3  
Exchange variation
s
   
 
20
 
     (356 ) 
Released during the year
   
 
(43
) 
     (94 ) 
Utilisation
   
 
(267
) 
     (99 ) 
Dividends paid
   
 
(7,901
) 
     (6,876 ) 
Transfers and other movements
   
 
(624
) 
     (100 ) 
    
 
 
    
 
 
  
At the end of the financial year
   
 
581
 
     1,240  
    
 
 
    
 
 
  
Comprising:
                 
Current
   
 
293
 
     258  
Non-current
   
 
288
 
     982  
    
 
 
    
 
 
  
Samarco dam failure [member]  
Statement [Line Items]  
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 2021 are shown in the tables below and have been treated as an exceptional item.
 
Financial impacts of Samarco dam failure
   
2021
     2020     2019  
    
US$M
     US$M     US$M  
Income statement
                         
Other income
(1)
   
 
34
 
     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)
   
 
(46
) 
     (64 )      (57 ) 
Loss from equity accounted investments, related impairments and expenses:
                         
Samarco impairment expense
(3)
   
 
(111
) 
     (95 )      (96 ) 
Samarco Germano dam decommissioning
(4)
   
 
(15
) 
     46       (263 ) 
Samarco dam failure provision
(5)
   
 
(1,000
) 
     (459 )      (586 ) 
Fair value change on forward exchange derivatives
(6)
   
 
136
 
     –       –  
    
 
 
    
 
 
    
 
 
  
Loss from operation
s
   
 
(1,002
) 
     (83 )      (952 ) 
Net finance costs
(7)
   
 
(85
) 
     (93 )      (108 ) 
    
 
 
    
 
 
    
 
 
  
Loss before taxation
   
 
(1,087
) 
     (176 )      (1,060 ) 
Income tax expense
(8)
   
 
(71
) 
     –       –  
    
 
 
    
 
 
    
 
 
  
Loss after taxation
   
 
(1,158
) 
     (176 )      (1,060 ) 
    
 
 
    
 
 
    
 
 
  
Balance sheet movement
                         
Trade and other payables
   
 
(5
) 
     (5 )      4  
Derivatives
  
 
136
 
     –       –  
Tax liabilities
   
 
(71
) 
     –       –  
Provisions
   
 
(741
) 
     (137 )      (629 ) 
    
 
 
    
 
 
    
 
 
  
Net liabilities
   
 
(681
) 
     (142 )      (625 ) 
    
 
 
    
 
 
    
 
 
  
 
          
2021
           2020           2019  
          
US$M
           US$M           US$M  
Cash flow statement
                                                 
Loss before taxatio
n
           
 
(1,087
) 
             (176 )              (1,060 ) 
Adjustments for:
                                                 
Samarco impairment expense
(3)
   
 
111
 
             95               96          
Samarco Germano dam decommissioning
(4)
   
 
15
 
             (46 )              263          
Samarco dam failure provision
(5)
   
 
1,000
 
             459               586          
Fair value change on forward exchange derivatives
(6)
   
 
(136
) 
             –               –          
Net finance costs
(7)
   
 
85
 
             93               108          
Changes in assets and liabilities:
                                                 
Trade and other payables
   
 
5
 
             5               (4 )         
Net operating cash flows
           
 
(7
) 
             430               (11 ) 
            
 
 
            
 
 
            
 
 
  
Net investment and funding of equity accounted investments
(9)
           
 
(470
) 
             (464 )              (424 ) 
            
 
 
            
 
 
            
 
 
  
Net investing cash flows
           
 
(470
) 
             (464 )              (424 ) 
            
 
 
            
 
 
            
 
 
  
Net decrease in cash and cash equivalents
           
 
(477
) 
             (34 )              (435 ) 
            
 
 
            
 
 
            
 
 
  
 
(1)
 
Proceeds from insurance settlements.
 
(2)
 
Includes legal and advisor costs incurred.
 
(3)
 
Impairment expense from working capital funding provided during the period.
 
(4)
 
US$(6) million (2020: US$37 million; 2019: US$263 million) change in estimate and US$21 million (2020: US$(83) million; 2019: US$ nil) exchange translation.
 
(5)
 
US$842 million (2020: US$916 million; 2019: US$579 million) change in estimate and US$158 million (2020: US$(457) million; 2019: US$7 million) exchange translation.
 
(6)
 
During the period the Group entered into forward exchange contracts to limit the Brazilian reais exposure on the dam failure provisions. While not applying hedge accounting, the fair value changes in the forward exchange instruments are recorded within Loss from equity accounted investments, related impairments and expenses in the Income Statement.
 
(7)
 
Amortisation of discounting of provision.
 
(8)
 
Includes tax on forward exchange derivatives and other taxes incurred during the period.
 
(9)
 
Includes US$(111) million (2020: US$(95) million; 2019: US$(96) million) funding provided during the period, US$(351) million (2020: US$(365) million; 2019: US$(328) million) utilisation of the Samarco dam failure provision, and US$(8) million (2020: US$(4) million; 2019: US$ nil) utilisation of the Samarco Germano decommissioning provision.
Summary of Provisions
Provisions related to the Samarco dam failure
 
          
2021
            2020  
          
US$M
           
US$M
  
At the beginning of the financial year
           
 
2,051
 
              1,914  
Movement in provisions
           
 
741
 
              137  
Comprising:
                                  
Utilised
   
 
(359
) 
              (369 )         
Adjustments charged to the income statement:
                                  
Change in estimate - Samarco dam failure provision
   
 
842
 
              916          
Change in estimate - Samarco Germano dam decommissionin
g
   
 
(6
) 
              37          
Amortisation of discounting impacting net finance costs
   
 
85
 
              93          
Exchange translation
   
 
179
 
              (540 )         
            
 
 
             
 
 
  
At the end of the financial year
           
 
2,792
 
              2,051  
            
 
 
             
 
 
  
Comprising:
                                  
Current
           
 
1,206
 
              896  
Non-current
           
 
1,586
 
              1,155  
            
 
 
             
 
 
  
At the end of the financial year
           
 
2,792
 
              2,051  
            
 
 
             
 
 
  
Comprising:
                                  
Samarco dam failure provision
           
 
2,560
 
              1,824  
Samarco Germano dam decommissioning provision
           
 
232
 
              227