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Investments accounted for using the equity method (Tables)
 12 Months Ended
Jun. 30, 2023
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Summary of Ownership Interest in Equity Accounted Investments
Significant interests in equity accounted investments of the Group are those with the most significant contribution to the Group’s net profit or net assets. The Group’s ownership interest in significant equity accounted investments results are listed in the table below. For a list of the Group’s associates and joint ventures, refer to Exhibit 8.1 – List of Subsidiaries.
 
Significant associates and joint ventures
  
Country of
incorporation/
principal
place of
business
  
Associate or
joint
venture
  
Principal
activity
  
Reporting
date
  
Ownership interest
  
 
2023

%
     2022
%		  
Compañía Minera Antamina S.A. (Antamina)
   Peru   Associate   Copper and zinc mining   31 December  
 
33.75
 
     33.75  
Samarco Mineração S.A. (Samarco)
   Brazil   Joint venture   Iron ore mining   31 December  
 
50.00
 
     50.00  
Summary of Movements of Investments Accounted for using the Equity Method
The movement for the year in the Group’s investments accounted for using the equity method is as follows:
 
Year ended 30 June 2023
US$M
   
Investment in
associates
    
Investment in
joint ventures
    
Total equity
accounted
investments
  
At the beginning of the financial year
     
1,420
      
–
      
1,420
  
Profit/(loss) from equity accounted investments, related impairments and expenses
1
     
379
      
215
      
594
  
Investment in equity accounted investments
     
149
      
–
      
149
  
Dividends received from equity accounted investments
     
(328
)
 		    
–
      
(328
)
 
Other
1
     
–
      
(215
)
 		    
(215
)
 
    
 
 
    
 
 
    
 
 
  
At the end of the financial year
     
1,620
      
–
      
1,620
  
    
 
 
    
 
 
    
 
 
  
 
1
 
Represents financial impacts of Samarco dam failure in the Group’s loss from equity accounted investments, related impairments and expenses. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
Summary of Financial Information of Significant Equity Accounted Investments
The following table summarises the financial information relating to each of the Group’s significant equity accounted investments. BHP Brasil’s 50 per cent portion of Samarco’s commitments, for which BHP Brasil has no funding obligation, is US$500 million (2022: US$350 million).
 
               
               
               
               
               
 
  
Associates
 
 
Joint ventures
 
  
 
 
2023
US$M
  
Antamina
 
 
Individually
immaterial
1
 
 
Samarco
2
 
 
Individually
immaterial
 
  
Total
 
                                                                                                               
Current assets
   
 
1,519
 
          
 
537
3
 
                 
Non-current assets
   
 
5,670
 
          
 
5,739
 
                 
Current liabilities
   
 
(774
)
 
          
 
(11,167
)
4
 
                 
Non-current liabilities
   
 
(1,944
)
 
          
 
(10,614
)
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets/(liabilities) – 100%
   
 
4,471
 
          
 
(15,505
)
 
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net assets/(liabilities) – Group share
   
 
1,509
 
          
 
(7,753
)
 
           
 
                      
 
Adjustments to net assets related to accounting policy adjustments
   
 
(79
)
 
          
 
291
5
 
                 
Investment in Samarco
   
 
–
 
          
 
516
6
 
                 
Impairment of the carrying value of the investment in Samarco
   
 
–
 
          
 
(1,041
)
7
 
                 
Additional share of Samarco losses
   
 
–
 
          
 
6,034
8
 
                 
Unrecognised losses
   
 
–
 
          
 
1,953
9
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Carrying amount of investments accounted for using the equity method
   
 
1,430
 
  
 
190
 
  
 
–
 
  
 
    
–
 
   
 
1,620
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Revenue – 100%
   
 
4,350
 
          
 
1,554
 
                 
Profit/(loss) from Continuing operations – 100%
   
 
1,571
 
          
 
(3,018
)
10
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of profit/(loss) of equity accounted investments
   
 
530
 
          
 
(1,509
)
 
                 
Adjustments to share of profit/(loss) related to accounting policy adjustments
   
 
(79
)
 
          
 
23
1
1
 
                 
Impairment of the carrying value of the investment in Samarco
   
 
–
 
          
 
–
 
                 
Additional share of Samarco losses
   
 
–
 
          
 
452
 
                 
Fair value change on forward exchange derivatives
   
 
–
 
          
 
471
 
                 
Unrecognised losses
   
 
–
 
          
 
778
9
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
   
 
451
 
  
 
(72
)
 
  
 
215
 
  
 
–
 
   
 
594
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Comprehensive income – 100%
   
 
1,571
 
          
 
(3,018
)
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of comprehensive income/(loss) – Group share in equity accounted investments
   
 
451
 
  
 
(72
)
 
  
 
215
 
  
 
–
 
   
 
594
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Dividends received from equity accounted investments
   
 
327
 
  
 
1
 
  
 
–
 
  
 
–
 
   
 
328
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
 
                                                                                                                                             
    
Associates
    
Joint ventures
         
2022
US$M
   
Antamina
    
Individually
immaterial
1
    
Samarco
2
    
Individually
immaterial
     
Total
  
Current assets
   
 
1,275
 
          
 
499
3
 
                 
Non-current assets
   
 
5,293
 
          
 
5,717
 
                 
Current liabilities
   
 
(847
) 
          
 
(10,830
)
4
 
                 
Non-current liabilities
   
 
(1,851
) 
          
 
(7,873
) 
                 
    
 
 
            
 
 
                   
Net assets/(liabilities) – 100%
   
 
3,870
 
          
 
(12,487
) 
                 
    
 
 
            
 
 
                   
Net assets/(liabilities) – Group share
   
 
1,306
 
          
 
(6,244
) 
                 
Adjustments to net assets related to accounting policy adjustments
   
 
–
 
          
 
268
5
 
                 
Investment in Samarco
   
 
–
 
          
 
516
6
 
                 
Impairment of the carrying value of the investment in Samarco
   
 
–
 
          
 
(1,041
)
7
 
                 
Additional share of Samarco losses
   
 
–
 
          
 
5,326
 
                 
Unrecognised losses
   
 
–
 
          
 
1,175
9
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Carrying amount of investments accounted for using the equity method
   
 
1,306
 
  
 
114
 
  
 
–
 
  
 
–
 
   
 
1,420
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Revenue – 100%
   
 
5,264
 
          
 
1,670
 
                 
Profit/(loss) from Continuing operations – 100%
   
 
2,133
 
          
 
(528
)
10
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of profit/(loss) of equity accounted investments
   
 
720
 
          
 
(276
)
11
 
                 
Impairment of the carrying value of the investment in Samarco
   
 
–
 
          
 
–
 
                 
Additional share of Samarco losses
   
 
–
 
          
 
290
 
                 
Fair value change on forward exchange derivatives
   
 
–
 
          
 
(81
) 
                 
Unrecognised losses
   
 
–
 
          
 
(609
)
9
 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
   
 
720
 
  
 
(63
) 
  
 
(676
) 
  
 
–
 
   
 
(19
) 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Comprehensive income – 100%
   
 
2,133
 
          
 
(528
) 
                 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of comprehensive income/(loss) – Group share in equity accounted investments
   
 
720
 
  
 
(63
) 
  
 
(676
) 
  
 
–
 
   
 
(19
) 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Dividends received from equity accounted investments
   
 
776
 
  
 
11
 
  
 
–
 
  
 
–
 
   
 
787
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
 
 
  
Associates
 
 
Joint ventures
 
  
 
 
2021
US$M
  
Antamina
 
  
Cerrejón
 
 
Individually
immaterial
 
 
Samarco
2
 
 
Individually
immaterial
 
  
Total
 
Revenue – 100%
      4,822        844               814                   
Profit/(loss) from Continuing operations – 100%
      1,847        (43 )              (2,202 )
10
 		                 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of profit/(loss) of equity accounted investments
      623        (14 )              (1,076 )
11
 		                 
Impairment of the carrying value of the investment in Cerrejón
      –        (466 )              –                   
Impairment of the carrying value of the investment in Samarco
      –        –               (111 )
7
 		                 
Additional share of Samarco losses
      –        –               85                   
Fair value change on forward exchange derivatives
      –        –               136                   
Unrecognised losses
      –        –               (24 )
9
 		                 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
      623        (480 )      (68 )      (990 )      –        (915 ) 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Comprehensive income/(loss) – 100%
      1,847        (43 )              (2,202 )                  
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of comprehensive income/(loss) – Group share in equity accounted investments
      623        (480 )      (68 )      (990 )      –        (915 ) 
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Dividends received from equity accounted investments
      714        13       10       –       –        737  
    
 
 
     
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
 
1
 
The unrecognised share of gain for the period was US$76 million (2022: unrecognised share of gain for the period was US$16 million), which decreased the cumulative losses to US$141 million (2022: decrease to US$217 million).
 
2
 
Refer to note 4 ‘Significant events – Samarco dam failure’ for further information regarding the financial impact of the Samarco dam failure which occurred in November 2015 on BHP Brasil’s share of Samarco’s losses.
 
3
 
Includes cash and cash equivalents of US$138 million (2022: US$106 million).
 
4
 
Includes current financial liabilities (excluding trade and other payables and provisions) of US$7,154 million (2022: US$6,837 million).
 
5
 
Relates mainly to dividends declared by Samarco that remain unpaid at balance date and which, in accordance with the Group’s accounting policy, are recognised when received not receivable.
 
6
 
Working capital funding provided to Samarco during the period is capitalised as part of the Group’s investments in joint ventures and disclosed as an impairment included within the Samarco impairment expense line item.
 
7
 
In the year ended 30 June 2016 BHP Brasil adjusted its investment in Samarco to US$ nil (resulting from US$(655) million share of loss from Samarco and US$(525) million impairment). Additional cumulative impairment losses relating to working capital funding of US$(516) million have also been recognised.
 
8
 
BHP Brasil has recognised accumulated additional share of Samarco losses of US$(6,034) million resulting from US$(4,795) million provisions relating to the Samarco dam failure, including US$(1,239) million recognised as net finance costs.
 
9
 
Share of Samarco’s losses for which BHP Brasil does not have an obligation to fund.
 
10
 
Includes depreciation and amortisation of US$144 million (2022: US$205 million; 2021: US$154 million), interest income of US$42 million (2022: US$19 million; 2021: US$1 million), interest expense of US$1,384 million (2022: US$628 million; 2021: US$492 million) and income tax (expense)/benefit of US$(213) million (2022: US$(7) million; 2021: US$(303) million).
 
11
 
Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable.