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Financial risk management (Tables)
 12 Months Ended
Jun. 30, 2024
Text block 1 [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
   
2024
     2023  
    
US$M
     US$M  
AUD
   
 
(3,850
) 
     (4,168 ) 
CAD
   
 
(543
) 
     (312 ) 
CLP
   
 
(150
) 
     (74 ) 
GBP
   
 
323
 
     353  
EUR
   
 
239
 
     217  
Other
   
 
43
 
     355  
  
 
 
    
 
 
  
Total
   
 
(3,938
) 
     (3,629 ) 
  
 
 
    
 
 
  
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
   
2024

US$M
      2023
US$M		  
Current cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
5
 
      34  
Current other derivative contracts
3
    2,3    Fair value through profit or loss   
 
118
 
      407  
Current other financial assets
4
       Amortised cost   
 
234
 
      –  
Current other investments
5
    1,2    Fair value through profit or loss   
 
24
 
      29  
Non-current
cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
113
 
      149  
Non-current
other derivative contracts
3
    2,3    Fair value through profit or loss   
 
103
 
      228  
Non-current
other financial assets
6
    3    Fair value through profit or loss   
 
195
 
      246  
Non-current
other financial assets
4,7
       Amortised cost   
 
398
 
      –  
Non-current
investment in shares
    1,3    Fair value through other comprehensive income   
 
201
 
      224  
Non-current
other investments
5
    1,2    Fair value through profit or loss   
 
219
 
      268  
        
 
 
     
 
 
  
Total other financial assets
         
 
1,610
 
      1,585  
Cash and cash equivalents
       Amortised cost   
 
12,501
 
      12,428  
Trade and other receivables
8
       Amortised cost   
 
1,597
 
      1,506  
Provisionally priced trade receivables
    2    Fair value through profit or loss   
 
3,250
 
      2,705  
        
 
 
     
 
 
  
Total financial assets
         
 
18,958
 
      18,224  
        
 
 
     
 
 
  
Non-financial
assets
         
 
83,404
 
      83,072  
        
 
 
     
 
 
  
Total assets
         
 
102,362
 
      101,296  
        
 
 
     
 
 
  
           
Current cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
176
 
      147  
Current other derivative contracts
    2    Fair value through profit or loss   
 
241
 
      176  
Current other financial liabilities
9
       Amortised cost   
 
95
 
      79  
Non-current
cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
1,337
 
      1,608  
Non-current
other derivative contracts
3
    2,3    Fair value through profit or loss   
 
54
 
      82  
Non-current
other financial liabilities
9
       Amortised cost   
 
368
 
      467  
        
 
 
     
 
 
  
Total other financial liabilities
         
 
2,271
 
      2,559  
Trade and other payables
10
       Amortised cost   
 
6,049
 
      5,338  
Provisionally priced trade payables
    2    Fair value through profit or loss   
 
614
 
      841  
Bank overdrafts and short-term borrowings
11
       Amortised cost   
 
3
 
      5  
Bank loans
11
       Amortised cost   
 
2,610
 
      7,502  
Notes and debentures
11
       Amortised cost   
 
14,932
 
      11,819  
Lease liabilities
12
         
 
3,116
 
      3,019  
Other
11
       Amortised cost   
 
57
 
      –  
        
 
 
     
 
 
  
Total financial liabilities
         
 
29,652
 
      31,083  
        
 
 
     
 
 
  
Non-financial
liabilities
         
 
23,590
 
      21,683  
        
 
 
     
 
 
  
Total liabilities
         
 
53,242
 
      52,766  
        
 
 
     
 
 
  
 
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$92 million related to power purchase contract agreements that are categorised as Level 3 (2023: US$46 million).
 
4
 
Includes deferred consideration of US$495 million in relation to the divestment of the Blackwater and Daunia mines.
 
5
 
Includes investments held by BHP Foundation which are restricted and not available for general use by the Group of US$243 million (2023: US$290 million) of which other investments (mainly US Treasury Notes) of US$134 million categorised as Level 1 (2023: US$138 million).
 
6
 
Includes receivables contingent on future realised coal price of US$195 million (2023: US$246 million receivables contingent on outcome of future events relating to mining and regulatory approvals).
 
7
 
Includes Senior notes of US$137 million relating to Samarco with a maturity date of 30 June 2031 (refer to note 4 ‘Significant events – Samarco dam failure’ for further information).
 
8
 
Excludes input taxes of US$492 million (2023: US$531 million) included in other receivables.
 
9
 
Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group’s Escondida operations.
 
10
 
Excludes input taxes of US$101 million (2023: US$121 million) included in other payables.
 
11
 
All interest bearing liabilities, excluding lease liabilities, are unsecured.
 
12
 
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
         
2024
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
and other
cash flows
    
Total
     
Hedged
value of
notes and
debentures
2
  
    
A
     
B
     
C
     
D
    
E
    
F
    
G
    
B to G
     
A + B + C
  
USD
   
 
10,928
 
      –     
 
498
 
      –       –    
 
2
 
  
 
(48
) 
  
 
452
 
   
 
11,426
 
GBP
   
 
1,595
 
   
 
521
 
   
 
247
 
   
 
(13
) 
  
 
3
 
  
 
(69
) 
  
 
(16
) 
  
 
673
 
   
 
2,363
 
EUR
   
 
2,409
 
   
 
367
 
   
 
259
 
   
 
(27
) 
  
 
7
 
  
 
(50
) 
  
 
(286
) 
  
 
270
 
   
 
3,035
 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Total
   
 
14,932
 
   
 
888
 
   
 
1,004
 
   
 
(40
) 
  
 
10
 
  
 
(117
) 
  
 
(350
) 
  
 
1,395
 
   
 
16,824
 
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
            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
and other
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  
  
 
 
     
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
 
1
 
Predominantly related to ineffectiveness.
 
2
 
Includes US$532 million (2023: US$534 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’.
 
2024
US$M
   
Cash flow hedging
reserve
    
Cost of hedging
reserve
    
Total
  
    
Gross
    
Tax
    
Net
    
Gross
    
Tax
    
Net
        
At the beginning of the financial year
   
 
15
 
  
 
(5
) 
  
 
10
 
  
 
(1
) 
  
 
–
 
  
 
(1
) 
  
 
9
 
Add: Change in fair value of hedging instrument recognised in OCI
   
 
(24
) 
  
 
7
 
  
 
(17
) 
  
 
(9
) 
  
 
3
 
  
 
(6
) 
  
 
(23
) 
Less: Reclassified from reserves to financial expenses – recognised through OCI
   
 
49
 
  
 
(15
) 
  
 
34
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
34
 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At the end of the financial year
   
 
40
 
  
 
(13
) 
  
 
27
 
  
 
(10
) 
  
 
3
 
  
 
(7
) 
  
 
20
 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
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  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Summary of Movement of Interest Bearing Liabilities and Related Derivatives
The movement in the year in the Group’s interest bearing liabilities and related derivatives are as follows:
 
 
  
Interest bearing liabilities
 
 
Derivatives
(assets)/

liabilities
 
 
 
 
2024
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
   
 
7,502
 
  
 
11,819
 
  
 
3,019
 
  
 
5
 
  
 
–
 
  
 
1,572
 
  
 
  
 
Proceeds from interest bearing liabilities
   
 
400
 
  
 
4,691
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
5,091
 
Settlements of debt related instruments
   
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(321
) 
  
 
(321
) 
Repayment of interest bearing liabilities
   
 
(5,319
) 
  
 
(1,338
) 
  
 
(656
) 
  
 
–
 
  
 
(14
) 
  
 
–
 
  
 
(7,327
) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
   
 
(4,919
) 
  
 
3,353
 
  
 
(656
) 
  
 
–
 
  
 
(14
) 
  
 
(321
) 
  
 
(2,557
) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other movements:
   
 
                                                
Divestment of subsidiaries and operations
   
 
–
 
  
 
–
 
  
 
(60
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
Interest rate impacts
   
 
–
 
  
 
(214
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
188
 
  
Foreign exchange impacts
   
 
24
 
  
 
(35
) 
  
 
(16
) 
  
 
–
 
  
 
–
 
  
 
35
 
  
Lease additions
   
 
–
 
  
 
–
 
  
 
593
 
  
 
–
 
  
 
–
 
  
 
–
 
  
Remeasurement of index-linked freight contracts
   
 
–
 
  
 
–
 
  
 
230
 
  
 
–
 
  
 
–
 
  
 
–
 
  
Other interest bearing liabilities/derivative related changes
   
 
3
 
  
 
9
 
  
 
6
 
  
 
(2
) 
  
 
71
 
  
 
(79
) 
  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
At the end of the financial year
   
 
2,610
 
  
 
14,932
 
  
 
3,116
 
  
 
3
 
  
 
57
 
  
 
1,395
 
  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Interest bearing liabilities
 
 
Derivatives
(assets)/
liabilities
 
 
 
 
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