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Financial risk management (Tables)
 12 Months Ended
Jun. 30, 2023
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 carrying values of financial assets and liabilities at the end of the reporting period denominated in currencies other than the US dollar that are exposed to foreign currency risk:
 
Net financial (liabilities)/assets - by currency of denomination
   
2023
     2022  
    
US$M
     US$M  
AUD
     
(4,168
)
 		     (3,649 ) 
CLP
     
(74
)
 		     (602 ) 
GBP
     
353
       388  
EUR
     
217
       280  
Other
     
43
       187  
    
 
 
    
 
 
  
Total
     
(3,629
)
 		     (3,396 ) 
    
 
 
    
 
 
  
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
   
2023

US$M
      2022
US$M		  
Current cross currency and interest rate swaps
2
      2      Fair value through profit or loss     
34
        –  
Current other derivative contracts
3
      2,3      Fair value through profit or loss     
407
        326  
Current other financial assets
             Amortised cost     
–
        100  
Current other investments
4
      1,2      Fair value through profit or loss     
29
        203  
Non-current cross currency and interest rate swaps
2
      2      Fair value through profit or loss     
149
        136  
Non-current other derivative contracts
3
      2,3      Fair value through profit or loss     
228
        16  
Non-current other financial assets
5
      3      Fair value through profit or loss     
246
        273  
Non-current investment in shares
      1,3      Fair value through other comprehensive income     
224
        138  
Non-current other investments
4
      1,2      Fair value through profit or loss     
268
        239  
                  
 
 
     
 
 
  
Total other financial assets
                   
1,585
        1,431  
Cash and cash equivalents
             Amortised cost     
12,428
        17,236  
Trade and other receivables
6
             Amortised cost     
1,506
        1,674  
Provisionally priced trade receivables
      2      Fair value through profit or loss     
2,705
        3,478  
                  
 
 
     
 
 
  
Total financial assets
                   
18,224
        23,819  
                  
 
 
     
 
 
  
Non-financial assets
                   
83,072
        71,347  
                  
 
 
     
 
 
  
Total assets
                   
101,296
        95,166  
                  
 
 
     
 
 
  
                                 
Current cross currency and interest rate swaps
2
      2      Fair value through profit or loss     
147
        358  
Current other derivative contracts
      2      Fair value through profit or loss     
176
        118  
Current other financial liabilities
7
             Amortised cost     
79
        103  
Non-current cross currency and interest rate swaps
2
      2      Fair value through profit or loss     
1,608
        1,466  
Non-current other derivative contracts
3
      2,3      Fair value through profit or loss     
82
        31  
Non-current other financial liabilities
7
             Amortised cost     
467
        500  
                  
 
 
     
 
 
  
Total other financial liabilities
                   
2,559
        2,576  
Trade and other payables
8
             Amortised cost     
5,338
        5,223  
Provisionally priced trade payables
      2      Fair value through profit or loss     
841
        1,385  
Bank overdrafts and short-term borrowings
9
             Amortised cost     
5
        –  
Bank loans
9
             Amortised cost     
7,502
        2,472  
Notes and debentures
9
             Amortised cost     
11,819
        11,363  
Lease liabilities
10
                   
3,019
        2,576  
Other
9
             Amortised cost     
–
        17  
                  
 
 
     
 
 
  
Total financial liabilities
                   
31,083
        25,612  
                  
 
 
     
 
 
  
Non-financial liabilities
                   
21,683
        20,788  
                  
 
 
     
 
 
  
Total liabilities
                   
52,766
        46,400  
                  
 
 
     
 
 
  
 
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 unless specified otherwise in the following footnotes.
 
2
 
Cross currency and interest rate swaps are valued using market data including interest rate curves 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 net other derivative assets of US$
46
million related to power purchase contract agreements that are categorised as Level 3 (2022: US$ nil). 
 
4
 
Includes investments held by BHP Foundation which are restricted and not available for general use by the Group of US$290 million (2022: US$252 million) of which other investment
s
(mainly US Treasury Notes) of US$
138
million categorised as Level 1 (2022: US$119 million).
 
5
 
Includes receivables contingent on outcome of future events relating to mining and regulatory approvals of US$246 million (2022: US$233 million).
 
6
 
Excludes input taxes of US$531 million (2022: US$427 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$121 million (2022: US$79 million) included in other payables.
 
9
 
All interest bearing liabilities, excluding lease liabilities, are unsecured.
 
10
 
Lease liabilities are measured in accordance with IFRS 16/AASB 16 ‘Leases’.
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
 
  
 
 
2023
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
     
7,245
       
–
       
214
      
–
      
–
      
32
      
23
      
269
       
7,459
  
GBP
     
1,566
       
522
       
274
      
24
      
(9
)
 		    
(69
)
 		    
35
      
777
       
2,362
  
EUR
     
3,008
       
434
       
302
      
(39
)
 		    
10
      
(49
)
 		    
(132
)
 		    
526
       
3,744
  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Total
     
11,819
       
956
       
790
      
(15
)
 		    
1
      
(86
)
 		    
(74
)
 		    
1,572
       
13,565
  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
       
            Fair value of derivatives         
2022
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
      4,740        –        (16 )      –       –       (7 )      86       63        4,724  
GBP
      2,599        796        (115 )      (35 )      13       26       42       727        3,280  
EUR
      3,449        585        112       (16 )      8       (4 )      45       730        4,146  
CAD
      575        167        5       (8 )      6       (3 )      1       168        747  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Total
      11,363        1,548        (14 )      (59 )      27       12       174       1,688        12,897  
    
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
 
1
 
Predominantly related to ineffectiveness.
 
2
 
Includes US$534 million (2022: US$3,018 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship.
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 18 ‘Other equity’.
 
2023
US$M
   
Cash flow hedging
reserve
    
Cost of hedging
reserve
    
Total
  
    
Gross
    
Tax
    
Net
    
Gross
    
Tax
    
Net
        
At the beginning of the financial year
     
59
      
(18
)
 		    
41
      
(27
)
 		    
8
      
(19
)
 		    
22
  
Add: Change in fair value of hedging instrument recognised in OCI
     
95
      
(29
)
 		    
66
      
–
      
–
      
–
      
66
  
Less: Reclassified from reserves to financial expenses – recognised through OCI
     
(174
)
 		    
53
      
(121
)
 		    
26
      
(8
)
 		    
18
      
(103
)
 
Less: Loss/(gain) transferred to balance sheet related items
     
35
      
(11
)
 		    
24
      
–
      
–
      
–
      
24
  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At the end of the financial year
     
15
      
(5
)
 		    
10
      
(1
)
 		    
–
      
(1
)
 		    
9
  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
       
2022
US$M
    Cash flow hedging
reserve		     Cost of hedging
reserve		     Total  
     Gross     Tax     Net     Gross     Tax     Net        
At the beginning of the financial year
      142       (42 )      100       (77 )      23       (54 )      46  
Add: Change in fair value of hedging instrument recognised in OCI
      (914 )      274       (640 )     
–
      
–
      
–
       (640 ) 
Less: Reclassified from reserves to financial expenses – recognised through OCI
      831       (250 )      581       50       (15 )      35       616  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At the end of the financial year
      59       (18 )      41       (27 )      8       (19 )      22  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Summary of Movement of Interest Bearing Liabilities and Related Derivatives
The movement in the y
e
ar in the Group’s interest bearing liabilities and related derivatives are as follows:
 
    
Interest bearing liabilities
    
Derivatives
Liabilities/
(assets)
       
2023
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
     
2,472
      
11,363
      
2,576
      
–
       
17
      
1,688
          
Proceeds from interest bearing liabilities
     
5,450
      
2,732
      
–
      
–
       
–
      
–
      
8,182
  
Settlements of debt related instruments
     
–
      
–
      
–
      
–
       
–
      
(677
)
 		    
(677
)
 
Repayment of interest bearing liabilities
     
(1,087
)
 		    
(1,610
)
 		    
(576
)
 		    
–
       
(16
)
 		    
–
      
(3,289
)
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
     
4,363
      
1,122
      
(576
)
 		    
–
       
(16
)
 		    
(677
)
 		    
4,216
  
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Other movements:
                                                          
Acquisition of subsidiaries and operations
     
688
      
–
      
423
      
–
       
–
      
–
          
Interest rate impacts
     
–
      
(803
)
 		    
–
      
–
       
–
      
691
          
Foreign exchange impacts
     
(23
)
 		    
128
      
12
      
–
       
–
      
(127
)
 		        
Lease additions
     
–
      
–
      
542
      
–
       
–
      
–
          
Remeasurement of index-linked freight contracts
     
–
      
–
      
53
      
–
       
–
      
–
          
Other interest bearing liabilities/derivative related changes
     
2
      
9
      
(11
)
 		    
5
       
(1
)
 		    
(3
)
 		        
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
At the end of the financial year
     
7,502
      
11,819
      
3,019
      
5
       
–
      
1,572
          
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
 
     Interest bearing liabilities     Derivatives
(assets)/
liabilities		        
2022
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
      2,260       14,769       3,896       –        58       (557 )         
Proceeds from interest bearing liabilities
      1,150       –       –       –        14       –       1,164  
Settlements of debt related instruments
      –       –       –       –        –       –       –  
Repayment of interest bearing liabilities
1
      (941 )      (1,232 )      (1,163 )      –        (55 )      –       (3,391 ) 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
      209       (1,232 )      (1,163 )      –        (41 )      –       (2,227 ) 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
    
 
 
  
Other movements:
                                                          
Divestment and demerger of subsidiaries and operations
      –       –       (492 )      –        –       –          
Interest rate impacts
      –       (1,286 )      –       –        –       1,277          
Foreign exchange impacts
      3       (894 )      (126 )      –        (2 )      898          
Lease additions
      –       –       866       –        –       –          
Remeasurement of index-linked freight contracts
      –       –       (369 )      –        –       –          
Other interest bearing liabilities/derivative related changes
      –       6       (36 )      –        2       70          
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
At the end of the financial year
      2,472       11,363       2,576       –        17       1,688          
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
          
 
1
 
FY2022 includes US$33 million of Discontinued operations cash flows.