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Financial risk management (Tables)
 12 Months Ended
Jun. 30, 2021
Text block [abstract]  
Summary of foreign currency risk arising from financial assets and liabilities, which are denominated in currencies other than the US dollar
The following table shows the foreign currency risk arising from financial assets and liabilities, which are denominated in currencies other than the US dollar:
 
Net financial (liabilities)/assets - by currency of denomination
   
2021
     2020  
    
US$M
     US$M  
Australian dollar
s
   
 
(4,421
) 
     (3,788 ) 
Chilean peso
   
 
(649
) 
     (369 ) 
British pound sterling
   
 
535
 
     587  
Euro
   
 
366
 
     619  
Other
   
 
128
 
     (17 ) 
    
 
 
    
 
 
  
Total
   
 
(4,041
) 
     (2,968 ) 
    
 
 
    
 
 
  
Summary of Financial Assets and Liabilities by Class
The financial assets and liabilities are presented by class in the table below at their carrying amounts.
 
    
IFRS 13

Fair value

hierarchy

Level
 (1)
    
IFRS 9 Classification
   
2021

US$M
      2020
US$M
Restated		  
Current cross currency and interest rate swaps
 
(
2)
      2     Fair value through profit or loss   
 
20
        3  
Current other derivative contracts
 
(3)
      2,3     Fair value through profit or loss   
 
207
        45  
Current other investments
 (4)
      1,2     Fair value through profit or loss   
 
3
        36  
Non-current
cross currency and interest rate swaps
 (2)
      2     Fair value through profit or loss   
 
1,123
        2,009  
Non-current
other derivative contracts
 (3)
      2,3     Fair value through profit or loss   
 
152
        159  
Non-current
investment in share
s
      3     Fair value through other comprehensive income   
 
31
        32  
Non-current
other investments
 (4)(5)
      1,2,3     Fair value through profit or loss   
 
304
        322  
       
 
 
     
 
 
  
Total other financial assets
                
 
1,840
        2,606  
Cash and cash equivalents
            Amortised cost   
 
15,246
        13,426  
Trade and other receivables
 (6)
            Amortised cost   
 
2,363
        1,633  
Provisionally priced trade receivables
      2     Fair value through profit or loss   
 
3,547
        1,480  
Loans to equity accounted investments
            Amortised cost   
 
–
        40  
       
 
 
     
 
 
  
Total financial assets
                
 
22,996
        19,185  
       
 
 
     
 
 
  
Non-financial
assets
                
 
85,931
        86,548  
       
 
 
     
 
 
  
Total assets
                
 
108,927
        105,733  
       
 
 
     
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current cross currency and interest rate swaps
 (2)
      2     Fair value through profit or loss   
 
–
        165  
Current other derivative contracts
 (3)
      2,3     Fair value through profit or loss   
 
52
        60  
Current other financial liabilities
 (7)
            Amortised cost   
 
78
        –  
Non-current
cross currency and interest rate swaps
 (2)
      2     Fair value through profit or loss   
 
586
        1,414  
Non-current
other financial liabilities
 (7)
            Amortised cost   
 
560
        –  
       
 
 
     
 
 
  
Total other financial liabilities
                
 
1,276
        1,639  
Trade and other payables
 (8)
            Amortised cost   
 
6,277
        5,354  
Provisionally priced trade payables
      2     Fair value through profit or loss   
 
574
        269  
Bank loans
 (9)
            Amortised cost   
 
2,260
        2,492  
Notes and debentures
 (9)
            Amortised cost   
 
14,769
        21,045  
Lease liabilities
                
 
3,896
        3,443  
Other
 (9)
            Amortised cost   
 
58
        68  
       
 
 
     
 
 
  
Total financial liabilities
                
 
29,110
        34,310  
       
 
 
     
 
 
  
Non-financial
liabilities
                
 
24,212
        19,248  
       
 
 
     
 
 
  
Total liabilities
                
 
53,322
        53,558  
                 
 
 
     
 
 
  
 
(1)
 
All of the Group’s financial assets and financial liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 with the exception of the specified items in the following footnotes.
 
(2)
 
Cross currency and interest rate swaps are valued using market data including interest rate curves (which include the base LIBOR rate and swap rates) and foreign exchange rates. A discounted cash flow approach is used to derive the fair value of cross currency and interest rate swaps at the reporting date.
 
(3
)
 
Includes other derivative contracts of US$121 million (2020: US$179 million) categorised as Level 3. Significant items are derivatives embedded in physical commodity purchase and sales contracts of gas in Trinidad and Tobago with net assets fair value of US$121 million (2020: US$180 million).
(4)
 
Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$260 million (2020: US$296 million) of which other investment (US Treasury Notes) of US$72 million categorised as Level 1 (2020: US$87 million).
 
(5)
 
Includes other investments of US$46 million (2020: US$47 million) categorised as Level 3.
 
(6)
 
Excludes input taxes of US$486 million (2020: US$478 million) included in other receivables.
 
(7)
Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group’s Escondida operations.
 
(8)
 
Excludes input taxes of US$176 million (2020: US$145 million) included in other payables.
 
(9)
 
All interest bearing liabilities, excluding lease liabilities, are unsecured.
Summary of Carrying Amounts of Group's Notes and Debentures by Currency and Derivatives Which Hedge
The table below shows the carrying amounts of the Group’s notes and debentures by currency and the derivatives which hedge them:
 
•  
The carrying amount of the notes and debentures includes foreign exchange remeasurement to period-end rates and fair value adjustments when included in a fair value hedge.
 
•  
The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at period-end rates, fair value movements due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive income, ineffectiveness recognised in the income statement and accruals or prepayments.
 
•  
The hedged value of notes and debentures includes their carrying amounts adjusted for the offsetting derivative fair value movements due to foreign currency and interest rate risk remeasurement.
           
Fair value of derivatives
        
2021
US$M                                    
   
Carrying
amount of
notes and
debentures
     
Foreign
exchange
notional
at spot
rates
     
Interest
rate risk
    
Recognised
in cash flow
hedging
reserve
    
Recognised
in cost of
hedging
reserve
     
Recognised
in the
income
statement 
(1)
    
Accrued
cash
flows
    
Total
    
Hedged
value of
notes and
debentures 
(2)
  
    
A
     
B
     
C
    
D
    
E
     
F
    
G
    
B to G
    
A + B + C
  
USD
   
 
6,270
 
   
 
–
 
   
 
(318
) 
  
 
–
 
  
 
–
 
   
 
11
 
  
 
77
 
  
 
(230
) 
  
 
5,952
 
GBP
   
 
3,387
 
   
 
435
 
   
 
(544
) 
  
 
(81
) 
  
 
25
 
   
 
(34
) 
  
 
53
 
  
 
(146
) 
  
 
3,278
 
EUR
   
 
4,486
 
   
 
73
 
   
 
(418
) 
  
 
(33
) 
  
 
27
 
   
 
7
 
  
 
49
 
  
 
(295
) 
  
 
4,141
 
CA
D
   
 
626
 
   
 
142
 
   
 
(21
) 
  
 
(28
) 
  
 
25
 
   
 
(2
) 
  
 
(2
) 
  
 
114
 
  
 
747
 
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
 
14,769
 
   
 
650
 
   
 
(1,301
) 
  
 
(142
) 
  
 
77
 
   
 
(18
) 
  
 
177
 
  
 
(557
) 
  
 
14,118
 
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
  
 
            Fair value of derivatives        
2020
US$M                                    
    Carrying
amount of
notes and
debentures		      Foreign
exchange
notional
at spot
rates		      Interest
rate risk		     Recognised
in cash flow
hedging
reserve		     Recognised
in cost of
hedging
reserve		     Recognised
in the
income
statement 
(1)
     Accrued
cash
flows		     Total     Hedged
value of
notes and
debentures 
(2)
  
     A      B      C     D     E     F     G     B to G     A + B + C  
USD
      9,926       
–
        (742 )     
–
      
–
       29       74       (639 )      9,184  
GBP
      3,245        764        (730 )      (16 )      13       (18 )      47       60       3,279  
EUR
      7,294        500        (576 )      (55 )      21       65       32       (13 )      7,218  
CAD
      580        199        (32 )     
–
       (2 )      (4 )      (2 )      159       747  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
      21,045        1,463        (2,080 )      (71 )      32       72       151       (433 )      20,428  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Predominantly related to ineffectiveness.
 
(2)
 
Includes US$3,018 million (2020: US$3,019 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship.
Summary of Hedging instruments As at 30 June 2021, the Group has not transitioned any of its existing interest rate swaps to alternative risk-free rates.
 
Hedging instrument
   
Notional
currency
   
Notional value

US$M
     
Notional value to mature before
LIBOR expires FY2023

US$M
  
Interest rate swaps
    USD   
 
11,950
 
   
 
1,979
 
    
 
   
 
 
     
 
 
  
Cross-currency interest rate swaps
    EUR   
 
3,187
 
   
 
404
 
     GBP   
 
1,673
 
   
 
923
 
    
 
   
 
 
     
 
 
  
    
Total
   
 
16,810
 
   
 
3,306
 
    
 
   
 
 
     
 
 
  
Summary of Reconciliation of Components of Equity and Analysis of Movements in Reserves for all Hedges
The following table shows a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of these reserves, refer to note 17 ‘Other equity’. 
 
2021
US$M
  
Cash flow hedging
reserve
 
 
Cost of hedging
reserve
 
 
Total
 
 
  
Gross
 
 
Tax
 
 
Net
 
 
Gross
 
 
Tax
 
  
Net
 
 
 
 
At the beginning of the financial yea
r
   
 
71
 
  
 
(21
) 
  
 
50
 
  
 
(32
) 
  
 
9
 
   
 
(23
) 
  
 
27
 
Add: Change in fair value of hedging instrument recognised in OCI
   
 
863
 
  
 
(259
) 
  
 
604
 
  
 
–
 
  
 
–
 
   
 
–
 
  
 
604
 
Less: Reclassified from reserves to financial expenses – recognised through OCI
   
 
(792
) 
  
 
238
 
  
 
(554
) 
  
 
(45
) 
  
 
14
 
   
 
(31
) 
  
 
(585
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
At the end of the financial year
   
 
142
 
  
 
(42
) 
  
 
100
 
  
 
(77
) 
  
 
23
 
   
 
(54
) 
  
 
46
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
2020
US$M
  
Cash flow hedging
reserve
 
 
Cost of hedging
reserve
 
 
Total
 
 
  
Gross
 
 
Tax
 
 
Net
 
 
Gross
 
 
Tax
 
 
Net
 
 
 
 
At the beginning of the financial year
      163       (49 )      114       (106 )      32       (74 )      40  
Add: Change in fair value of hedging instrument recognised in OCI
      (315 )      94       (221 )      –       –       –       (221 ) 
Less: Reclassified from reserves to financial expenses – recognised through OCI
      223       (66 )      157       74       (23 )      51       208  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At the end of the financial year
      71       (21 )      50       (32 )      9       (23 )      27  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Summary of Movement of Interest Bearing Liabilities and Related Derivatives
The movement in the year in the Group’s interest bearing liabilities and related derivatives are as follows:
 
    
Interest bearing liabilities
    
Derivatives
(assets)/

liabilities
        
2021
US$M
   
Bank
loans
    
Notes and
debentures
    
Lease
liabilities
    
Bank
overdraft
and short-
term
borrowings
    
Other
    
Cross
currency
and
interest
rate swaps
    
Total
  
At the beginning of the financial year
   
 
2,492
 
  
 
21,045
 
  
 
3,443
 
  
 
–
 
  
 
68
 
  
 
(433
) 
        
Proceeds from interest bearing liabilities
   
 
504
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
64
 
  
 
–
 
  
 
568
 
Settlements of debt related instruments
   
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
167
 
  
 
167
 
Repayment of interest bearing liabilities
   
 
(737
) 
  
 
(6,888
) 
  
 
(770
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(8,395
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
   
 
(233
) 
  
 
(6,888
) 
  
 
(770
) 
  
 
–
 
  
 
64
 
  
 
167
 
  
 
(7,660
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other movements:
       
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      
Loss on bond repurchase
      –
 
 
 
579
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(184
) 
 
      
Interest rate impacts
   
 
–
 
  
 
(764
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
704
 
        
Foreign exchange impacts
   
 
(1
) 
  
 
798
 
  
 
115
 
  
 
–
 
  
 
(14
) 
  
 
(796
) 
        
Lease additions
   
 
–
 
  
 
–
 
  
 
1,223
 
  
 
–
 
  
 
–
 
  
 
–
 
        
Remeasurement of index-linked freight contracts
   
 
–
 
  
 
–
 
  
 
(59
) 
  
 
–
 
  
 
–
 
  
 
–
 
        
Other interest bearing liabilities/derivative related changes
   
 
2
 
  
 
(1
) 
  
 
(56
) 
  
 
–
 
  
 
(60
) 
  
 
(15
) 
        
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
          
At the end of the financial year
   
 
2,260
 
  
 
14,769
 
  
 
3,896
 
  
 
–
 
  
 
58
 
  
 
(557
) 
        
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
          
       
     Interest bearing liabilities     Derivatives
(assets)/
liabilities		        
2020
US$M
    Bank
loans		     Notes and
debentures		     Lease
liabilities		     Bank
overdraft
and short-
term
borrowings		     Other     Cross
currency
and
interest
rate swaps		     Total  
At the beginning of the financial year
      2,498       21,529       715       20       66       204          
Proceeds from interest bearing liabilitie
s
      514       –       –       –       –       –       514  
Settlements of debt related instruments
      –       –       –       –       –       (157 )      (157 ) 
Repayment of interest bearing liabilities
      (522 )      (859 )      (671 )      –       5       –       (2,047 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
      (8 )      (859 )      (671 )      –       5       (157 )      (1,690 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other movements:
                                                         
Interest rate impacts
      –       720       –       –       –       (788 )         
Foreign exchange impacts
      –       (354 )      (43 )      –       (4 )      316          
Leases recognised on IFRS 16 transition
      –       –       2,301       –       –       –          
Lease additions
      –       –       436       –       –       –          
Remeasurement of index-linked freight contracts
      –       –       733       –       –       –          
Other interest bearing liabilities/derivative related changes
      2       9       (28 )      (20 )      1       (8 )         
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
          
At the end of the financial year
      2,492       21,045       3,443       –       68       (433 )