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Investments accounted for using the equity method | 12 Months Ended
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Jun. 30, 2024
Text block 1 [Abstract] |
Investments accounted for using the equity method | 31 Investments accounted for using the equity method 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 |
| 2024 % |  |  | 2023 % |
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 |
Voting in relation to relevant activities in Antamina, determined to be the approval of the operating and capital budgets, does not require unanimous consent of all participants to the arrangement, therefore joint control does not exist. Instead, because the Group has the power to participate in the financial and operating policies of the investee, this investment is accounted for as an associate. Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). As the Samarco entity has the rights to the assets and obligations to the liabilities relating to the joint arrangement and not its owners, this investment is accounted for as a joint venture. The Group is restricted in its ability to make dividend payments from its investments in associates and joint ventures as any such payments require the approval of all investors in the associates and joint ventures. The ownership interest at the Group’s and the associates’ or joint ventures’ reporting dates are the same. When the annual financial reporting date is different to the Group’s, financial information is obtained as at 30 June in order to report on an annual basis consistent with the Group’s reporting date. The movement for the year in the Group’s investments accounted for using the equity method is as follows:
Year ended 30 June 2024 US$M |  | Investment in associates |  |  | Investment in joint ventures |  |  | Total equity accounted investments |
At the beginning of the financial year |  |  | 1,620 |  |  |  | – |  |  |  | 1,620 |
(Loss)/profit from equity accounted investments, related impairments and expenses 1 |  |  | 376 |  |  |  | (3,032 | ) |  |  | (2,656 | )
Investment in equity accounted investments |  |  | 63 |  |  |  | – |  |  |  | 63 |
Dividends received from equity accounted investments |  |  | (397 | ) |  |  | – |  |  |  | (397 | )
Other 1 |  |  | – |  |  |  | 3,032 |  |  |  | 3,032 |
At the end of the financial year |  |  | 1,662 |  |  |  | – |  |  |  | 1,662 |
1 | Represents financial impacts of Samarco dam failure in the Group’s loss from equity accounted investments, related impairments and expenses. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
The following table summarises the financial information relating to each of the Group’s significant equity accounted investments.
|  | Associates |  |  | Joint ventures |  |  |  |
2024 US$M |  | Antamina |  |  | Individually immaterial 1 |  |  | Samarco 2 |  |  | Individually immaterial |  |  | Total |
Current assets |  |  | 1,699 |  |  |  |  |  |  |  | 564 | (3) |  |  |  |  |  |  |  |
Non-current assets |  |  | 6,325 |  |  |  |  |  |  |  | 7,214 |  |  |  |  |  |  |  |  |
Current liabilities |  |  | (987 | ) |  |  |  |  |  |  | (3,266 | ) (4) |  |  |  |  |  |  |  |
Non-current liabilities |  |  | (2,389 | ) |  |  |  |  |  |  | (23,211 | ) |  |  |  |  |  |  |  |
Net assets/(liabilities) – 100% |  |  | 4,648 |  |  |  |  |  |  |  | (18,699 | ) |  |  |  |  |  |  |  |
Net assets/(liabilities) – Group share |  |  | 1,569 |  |  |  |  |  |  |  | (9,349 | ) |  |  |  |  |  |  |  |
Adjustments to net assets related to accounting policy adjustments |  |  | (71 | ) |  |  |  |  |  |  | – |  |  |  |  |  |  |  |  |
Investment in Samarco |  |  | – |  |  |  |  |  |  |  | 516 | (6) |  |  |  |  |  |  |  |
Impairment of the carrying value of the investment in Samarco |  |  | – |  |  |  |  |  |  |  | (1,041 | ) (7) |  |  |  |  |  |  |  |
Additional share of Samarco losses |  |  | – |  |  |  |  |  |  |  | 7,891 | (8) |  |  |  |  |  |  |  |
Unrecognised losses |  |  | – |  |  |  |  |  |  |  | 1,983 | (9) |  |  |  |  |  |  |  |
Carrying amount of investments accounted for using the equity method |  |  | 1,498 |  |  |  | 164 |  |  |  | – |  |  |  | – |  |  |  | 1,662 |
Revenue – 100% |  |  | 4,381 |  |  |  |  |  |  |  | 1,553 |  |  |  |  |  |  |  |  |
Profit/(loss) from Continuing operations – 100% |  |  | 1,353 |  |  |  |  |  |  |  | (6,726 | ) (10) |  |  |  |  |  |  |  |
Share of profit/(loss) of equity accounted investments |  |  | 457 |  |  |  |  |  |  |  | (3,363 | ) |  |  |  |  |  |  |  |
Adjustments to share of profit/(loss) related to accounting policy adjustments |  |  | 8 |  |  |  |  |  |  |  | (6 | ) (11) |  |  |  |  |  |  |  |
Impairment of the carrying value of the investment in Samarco |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  |  |
Additional share of Samarco losses |  |  | – |  |  |  |  |  |  |  | 506 |  |  |  |  |  |  |  |  |
Fair value change on forward exchange derivatives |  |  | – |  |  |  |  |  |  |  | (199 | ) |  |  |  |  |  |  |  |
Movement in unrecognised losses |  |  | – |  |  |  |  |  |  |  | 30 | (9) |  |  |  |  |  |  |  |
(Loss)/profit from equity accounted investments, related impairments and expenses |  |  | 465 |  |  |  | (89 | ) |  |  | (3,032 | ) |  |  | – |  |  |  | (2,656 | )
Comprehensive income – 100% |  |  | 1,353 |  |  |  |  |  |  |  | (6,726 | ) |  |  |  |  |  |  |  |
Share of comprehensive (loss)/income – Group share in equity accounted investments |  |  | 465 |  |  |  | (89 | ) |  |  | (3,032 | ) |  |  | – |  |  |  | (2,656 | )
Dividends received from equity accounted investments |  |  | 397 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 397 |
|  | 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 | (11) |  |  |  |  |  |  |  |
Impairment of the carrying value of the investment in Samarco |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  |  |
Additional share of Samarco losses |  |  | – |  |  |  |  |  |  |  | 452 |  |  |  |  |  |  |  |  |
Fair value change on forward exchange derivatives |  |  | – |  |  |  |  |  |  |  | 471 |  |  |  |  |  |  |  |  |
Movement in 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 |  |  | Samarco 2 |  |  | Individually immaterial |  |  | Total |
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 | ) |  |  |  |  |  |  |  |
Impairment of the carrying value of the investment in Samarco |  |  | – |  |  |  |  |  |  |  | – |  |  |  |  |  |  |  |  |
Additional share of Samarco losses |  |  | – |  |  |  |  |  |  |  | 290 |  |  |  |  |  |  |  |  |
Fair value change on forward exchange derivatives |  |  | – |  |  |  |  |  |  |  | (81 | ) |  |  |  |  |  |  |  |
Movement in 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 |
1 | The unrecognised share of gain for the period was US$41 million (2023: unrecognised share of gain for the period was US$76 million), which decreased the cumulative losses to US$100 million (2023: decrease to US$141 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. The financial information disclosed represents the underlying financial information of Samarco updated to reflect the Group’s best estimate of the costs to resolve all aspects of the Federal Public Prosecution Office claim and Framework Agreement.
3 | Includes cash and cash equivalents of US$251 million (2023: US$138 million).
4 | Includes current financial liabilities (excluding trade and other payables and provisions) of US$ nil (2023: US$7,154 million).
5 | Relates mainly to dividends declared by Samarco that remain unpaid at balance date and which, in accordance with the Group’s accounting policy, are recognised when received not receivable.
6 | Any working capital funding provided to Samarco is capitalised as part of the Group’s investments in joint ventures and disclosed as an impairment included within the Samarco impairment expense line item.
7 | In the year ended 30 June 2016 BHP Brasil adjusted its investment in Samarco to US$ 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$(516) million have also been recognised.
8 | BHP Brasil has recognised accumulated additional share of Samarco losses of US$(7,891) million resulting from US$(6,147) million provisions relating to the Samarco dam failure and US$(1,744) 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$165 million (2023: US$144 million; 2022: US$205 million), interest income of US$43 million (2023: US$42 million; 2022: US$19 million), interest expense of US$807 million (2023: US$1,384 million; 2022: US$628 million), other finance income in relation to the Judicial Reorganisation of US$1,756 million (2023: US$ nil; 2022: US$ nil) and income tax benefit/(expense) of US$999 million (2023: US$(213) million; 2022: US$(7) million).
11 | Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable.

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