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Segment reporting
 12 Months Ended
Jun. 30, 2023
Text block [abstract]  
Segment reporting
1     Segment reporting
Reportable segments
The Group operated three reportable segments during FY2023, which are aligned with the commodities that are extracted and marketed and reflect the structure used by the Group’s management to assess the performance of the Group.
 
Reportable segment
   
Principal activities
   
Copper
   
Mining of copper, silver, zinc, molybdenum, uranium and gold
   
Iron Ore
   
Mining of iron ore
   
Coal
   
Mining of metallurgical coal and energy coal
Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West, West Musgrave, legacy assets and consolidation adjustments. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from unallocated operations. Exploration and technology activities are recognised within relevant segments.
 
Year ended 30 June 2023
US$M
   
Copper
    
Iron Ore
    
Coal
    
Group and
unallocated
items/
eliminations
    
Group
total
  
Revenue
   
 
16,027
 
  
 
24,812
 
  
 
10,958
 
  
 
2,020
 
  
 
53,817
 
Inter-segment revenue
   
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total revenue
   
 
16,027
 
  
 
24,812
 
  
 
10,958
 
  
 
2,020
 
  
 
53,817
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBITDA
   
 
6,653
 
  
 
16,692
 
  
 
4,998
 
  
 
(387
) 
  
 
27,956
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Depreciation and amortisation
   
 
(1,810
) 
  
 
(1,993
) 
  
 
(697
) 
  
 
(561
) 
  
 
(5,061
) 
Impairment losses
1
   
 
(33
) 
  
 
(28
) 
  
 
(6
) 
  
 
(8
) 
  
 
(75
) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBIT
   
 
4,810
 
  
 
14,671
 
  
 
4,295
 
  
 
(956
) 
  
 
22,820
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Exceptional items
2
   
 
471
 
  
 
(295
) 
  
 
–
 
  
 
(64
) 
  
 
112
 
Net finance costs
                                   
 
(1,531
) 
                                    
 
 
  
Profit before taxation
                                   
 
21,401
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Capital expenditure (cash basis)
   
 
2,698
 
  
 
1,966
 
  
 
657
 
  
 
1,412
 
  
 
6,733
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
   
 
854
 
  
 
(256
) 
  
 
–
 
  
 
(4
) 
  
 
594
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Investments accounted for using the equity method
   
 
1,530
 
  
 
–
 
  
 
–
 
  
 
90
 
  
 
1,620
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total assets
   
 
40,366
 
  
 
25,025
 
  
 
11,087
 
  
 
24,818
 
  
 
101,296
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total liabilities
   
 
5,824
 
  
 
8,382
 
  
 
3,821
 
  
 
34,739
 
  
 
52,766
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
Year ended 30 June 2022
US$M
    Copper     Iron Ore     Coal     Group and
unallocated
items/
eliminations		     Group
total		  
Revenue
      16,849       30,767       15,549       1,933       65,098  
Inter-segment revenue
      –       –       –       –       –  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total revenue
      16,849       30,767       15,549       1,933       65,098  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBITDA
      8,565       21,707       9,504       858       40,634  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Depreciation and amortisation
      (1,765 )      (2,203 )      (762 )      (953 )      (5,683 ) 
Impairment losses
1
      (470 )      (33 )      (9 )      (3 )      (515 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBIT
      6,330       19,471       8,733       (98 )      34,436  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Exceptional items
2
      (81 )      (648 )      849       (450 )      (330 ) 
Net finance costs
                                      (969 ) 
                                    
 
 
  
Profit before taxation
                                      33,137  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Capital expenditure (cash basis)
      2,528       1,848       621       858       5,855  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
      577       (595 )      –       (1 )      (19 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Investments accounted for using the equity method
      1,415       –       –       5       1,420  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total assets
      32,762       24,613       11,524       26,267       95,166  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total liabilities
      5,342       7,790       3,874       29,394       46,400  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
Year ended 30 June 2021
US$M
    Copper     Iron Ore     Coal     Group and
unallocated
items/
eliminations		     Group
total		  
Revenue
      15,726       34,475       5,154       1,566       56,921  
Inter-segment revenue
      –       –       –       –       –  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total revenue
      15,726       34,475       5,154       1,566       56,921  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBITDA
      8,489       26,278       288       18       35,073  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Depreciation and amortisation
      (1,608 )      (1,971 )      (845 )      (660 )      (5,084 ) 
Impairment losses
1
      (72 )      (13 )      (20 )      (31 )      (136 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Underlying EBIT
      6,809       24,294       (577 )      (673 )      29,853  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Exceptional items
2
      (144 )      (1,319 )      (1,567 )      (1,308 )      (4,338 ) 
Net finance costs
                                      (1,223 ) 
                                    
 
 
  
Profit before taxation
                                      24,292  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Capital expenditure (cash basis)
      2,180       2,188       579       665       5,612  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
      692       (1,126 )      (480 )      (1 )      (915 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Investments accounted for using the equity method
      1,482       –       –       260       1,742  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total assets
3
      31,517       26,171       11,030       40,209       108,927  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total liabilities
3
      4,589       7,508       3,518       37,707       53,322  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
1
 
Impairment losses exclude exceptional items of US$ nil (2022: US$ nil; 2021: US$2,371 million).
 
2
 
Exceptional items reported in Copper and Group and unallocated include fair value changes on
Samarco related
 
forward exchange derivatives of US$471 million (2022: US$(81) million; 2021: US$136 million), Samarco dam failure costs of US$(64) million (2022: US$(13) million; 2021: US$(14) million), and Samarco related other income of US$ nil (2022: US$ nil; 2021: US$34 million). Refer to note 3 ‘Exceptional items’ for further information.
 
3
 
Group and unallocated FY2021 total assets and total liabilities include Petroleum assets and liabilities that were disclosed as part of the Petroleum segment before the merger of the Group’s oil and gas portfolio with Woodside Energy Group Ltd (‘Woodside’) in FY2022.
 
Geographical information
 
    
Revenue by location of customer
  
    
2023
      2022      2021  
    
US$M
      US$M      US$M  
Australia
     
1,702
        1,649        1,871  
Europe
     
1,961
        2,129        886  
China
     
31,205
        36,618        39,653  
Japan
     
6,971
        8,401        4,387  
India
     
3,447
        5,215        2,189  
South Korea
     
2,997
        4,786        3,420  
Rest of Asia
     
3,583
        4,303        2,934  
North America
     
1,382
        1,282        1,147  
South America
     
569
        715        426  
Rest of world
     
–
        –        8  
    
 
 
     
 
 
     
 
 
  
      
53,817
        65,098        56,921  
    
 
 
     
 
 
     
 
 
  
   
    
Non-current assets by location of
assets
  
    
2023
      2022      2021  
    
US$M
      US$M      US$M  
Australia
     
51,961
        43,250        48,612  
North America
     
5,081
        3,964        9,701  
South America
     
19,047
        18,280        18,548  
Rest of world
     
685
        150        1,851  
Unallocated assets
1
     
1,171
        858        3,522  
    
 
 
     
 
 
     
 
 
  
      
77,945
        66,502        82,234  
    
 
 
     
 
 
     
 
 
  
 
1
 
Unallocated assets comprise deferred tax assets and other financial assets.
Underlying EBITDA
Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any exceptional items. Underlying EBITDA includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit).
Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from
period-to-period
and provide investors with further clarity in order to assess the performance of the Group’s operations. Management monitors exceptional items separately. Refer to note 3 ‘Exceptional items’ for additional detail.
Segment assets and liabilities
Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities and deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted
investment.