XML 33 R26.htm IDEA: XBRL DOCUMENT v3.22.4
Provisions (Tables)
 6 Months Ended
Dec. 31, 2022
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 half year ended 31 December 2022 are shown below and have been treated as an exceptional item.
 
Financial impacts of Samarco dam failure
   
Half year

ended

31 Dec

2022

US$M
    
Half year

ended

31 Dec

2021

US$M
    
Year
ended

30 June

2022

US$M
  
Income statement
                         
Other income
1
   
 
–
 
     –       –  
Expenses excluding net finance costs:
                         
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure
2
   
 
(47
) 
     (27 )      (66 ) 
Profit/(loss) from equity accounted investments, related impairments and expenses:
                         
Samarco impairment expense
3
   
 
–
 
     –       –  
Samarco Germano dam decommissioning
4
   
 
31
 
     49       68  
Samarco dam failure provision
5
   
 
(13
) 
     (539 )      (663 ) 
Fair value change on forward exchange derivatives
6
   
 
109
 
     (212 )      (81 ) 
    
 
 
    
 
 
    
 
 
  
Profit/(loss) from operations
   
 
80
 
     (729 )      (742 ) 
Net finance costs
7
   
 
(222
) 
     (93 )      (290 ) 
    
 
 
    
 
 
    
 
 
  
Loss before taxation
   
 
(142
) 
     (822 )      (1,032 ) 
Income tax benefit/(expense)
   
 
2
 
     1       (31 ) 
    
 
 
    
 
 
    
 
 
  
Loss after taxation
   
 
(140
) 
     (821 )      (1,063 ) 
    
 
 
    
 
 
    
 
 
  
Balance sheet movement
                         
Trade and other payables
   
 
–
 
     3       (1 ) 
Derivatives
   
 
83
 
     (202 )      (160 ) 
Tax liabilities
   
 
2
 
     1       (31 ) 
Provisions
   
 
135
 
     (327 )      (629 ) 
    
 
 
    
 
 
    
 
 
  
Net liabilities
   
 
220
 
     (525 )      (821 ) 
    
 
 
    
 
 
    
 
 
  
 
    
Half year ended

31 Dec 2022

US$M
    
Half year ended

31 Dec 2021

US$M
    
Year ended

30 June 2022

US$M
  
Cash flow statement
                                                 
Loss before taxation
           
 
(142
) 
             (822 )              (1,032 ) 
Adjustments for:
                                                 
Samarco impairment expense
3
   
 
–
 
             –               –          
Samarco Germano dam decommissioning
4
   
 
(31
) 
             (49 )              (68 )         
Samarco dam failure provision
5
   
 
13
 
             539               663          
Fair value change on forward exchange derivatives
6
   
 
(109
) 
             212               81          
Proceeds/(settlements) of cash management related instruments
   
 
26
 
             (10 )              79          
Net finance costs
7
   
 
222
 
             93               290          
Changes in assets and liabilities:
                                                 
Trade and other payables
   
 
–
 
             (3 )              1          
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net operating cash flows
           
 
(21
) 
             (40 )              14  
            
 
 
            
 
 
            
 
 
  
Net investment and funding of equity accounted investments
8
           
 
(339
) 
             (256 )              (256 ) 
            
 
 
            
 
 
            
 
 
  
Net investing cash flows
           
 
(339
) 
             (256 )              (256 ) 
            
 
 
            
 
 
            
 
 
  
Net decrease in cash and cash equivalents
           
 
(360
) 
             (296 )              (242 ) 
            
 
 
            
 
 
            
 
 
  
 
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$(33) million (31 December 2021: US$25 million; 30 June 2022: US$(56) million) change in estimate and US$2 million (31 December 2021: US$24 million; 30 June 2022: US$(12) million) exchange translation.
5
US$ nil (31 December 2021: US$(806) million; 30 June 2022: US$747 million) change in estimate and US$13 million (31 December 2021: US$267 million; 30 June 2022: US$(84) million) exchange translation.
6
The Group enters 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
Profit/(loss)
from equity accounted investments, related impairments and expenses in the Income Statement.
7
Amortisation of discounting of provision.
8
Includes US$ nil (31 December 2021: US$ nil; 30 June 2022: US$ nil) working capital funding provided during the period, US$(339) million (31 December 2021: US$(256) million; 30 June 2022: US$(256) million) utilisation of the Samarco dam failure provision and US$ nil (31 December 2021: US$ nil; 30 June 2022: US$ nil) utilisation of the Samarco Germano decommissioning provision.
 
Samarco dam failure [member]  
Statement [Line Items]  
Summary of Provisions
Provisions related to the Samarco dam failure
 
          
31 Dec
2022

US$M
          
30 June
2022

US$M
  
At the beginning of the reporting period
           
 
3,421
 
             2,792  
Movement in provisions
           
 
(135
) 
             629  
Comprising:
                                 
Utilised
   
 
(339
) 
             (256 )         
Adjustments charged to the income statement:
                                 
Change in estimate — Samarco dam failure provision
   
 
–
 
             747          
Change in estimate — Samarco Germano dam decommissioning
   
 
(33
) 
             (56 )         
Amortisation of discounting impacting net finance costs
   
 
222
 
             290          
Exchange translation
   
 
15
 
             (96 )         
    
 
 
            
 
 
    
 
 
  
At the end of the reporting period
           
 
3,286
 
             3,421  
Comprising:
                                 
Current
           
 
1,950
 
             1,815  
Non-current
           
 
1,336
 
             1,606  
            
 
 
            
 
 
  
At the end of the reporting period
           
 
3,286
 
             3,421  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Comprising:
                                 
Samarco dam failure provision
           
 
3,122
 
             3,237  
Samarco Germano dam decommissioning provision
           
 
164
 
             184