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Investments accounted for using the equity method (Tables)
 12 Months Ended
Jun. 30, 2024
Text block 1 [Abstract]  
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
  
 
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  
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 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.
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.
 
    
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.