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Provisions (including post-retirement benefits) (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of other provisions [abstract]  
Summary of provisions including post-retirement benefits

Note
Pensions
and
post-retirement
healthcare(b)
US$m
Other
employee
entitlements(c)
US$m
Close-down
and
restoration/
environmental(d)
US$m
Other
US$m
Total
2021
US$m
Total
2020
US$m
At 1 January
3,055 419 13,335 856 17,665 15,103 
Adjustment on currency translation
(11)(23)(483)(29)(546)890 
Adjustments to mining properties/right of use assets:14 
– increases to existing and new provisions— — 518 3 521 141 
– change in discount rate— — — — — 816 
Charged/(credited) to profit:
– increases to existing and new provisions
161 112 1,475 382 2,130 1,074 
– change in discount rate— — — — — 140 
– unused amounts reversed
— (21)(192)(37)(250)(299)
– exchange losses on provisions
— — 23 — 23 (22)
– amortisation of discount
— — 415 3 418 377 
Utilised in year
(129)(102)(541)(128)(900)(774)
Re-measurement (gains)/losses recognised in other comprehensive income(687)— — — (687)250 
Transfers and other movements(a)
(291)9 (8)(48)(338)(31)
At 31 December
2,098 394 14,542 1,002 18,036 17,665 
Balance sheet analysis:
Current
66 317 1,023 700 2,106 1,729 
Non-current
2,032 77 13,519 302 15,930 15,936 
Total
2,098 394 14,542 1,002 18,036 17,665 
Schedule of cash spend for undiscounted close-down and environmental restoration obligation
Undiscounted close-down and environmental restoration cash flows<1yr
US$m		1-3 yrs
US$m		3-5 yrs
US$m		> 5 yrs
US$m
Total
US$m
At 31 December 20211,023 1,652 1,680 14,420 18,775 
At 31 December 2020776 1,203 1,433 13,988 17,400 
(a)During the year ended 31 December 2021, the Group entered into an agreement to transfer its partially funded pension obligations in France to an external insurer. The insurance premium was paid by the transfer of the existing pension assets valued at US$89 million plus an additional cash payment of €247 million (US$294 million), of which US$3 million was taken to the income statement. The Group has no further legal or constructive obligation relating to the insured pensions and has reflected this transaction as a settlement.
(b)The main assumptions used to determine the provision for pensions and post-retirement healthcare, and other information, including the expected level of future funding payments in respect of those arrangements, are given in note 42.
(c)The provision for other employee entitlements includes a provision for long service leave of US$272 million (2020: US$283 million), based on the relevant entitlements in certain Group operations and includes US$60 million (2020: US$62 million) of provision for redundancy and severance payments.
(d)The Group’s policy on close-down and restoration costs is described in note 1(l) and in paragraph (iii) under “Critical accounting policies and estimates” on page 230. Close-down and restoration costs are a normal consequence of mining, and the majority of close-down and restoration expenditure is incurred in the years following closure of the mine, refinery or smelter.
Non-current provisions for close-down, restoration and environmental expenditure include amounts relating to environmental clean-up of US$645 million (2020: US$468 million) expected to take place between one and five years from the balance sheet date, and US$1,059 million (2020: US$937 million) expected to take place later than five years after the balance sheet date.
Close-down, restoration and environmental liabilities at 31 December 2021 have not been adjusted for closure related receivables amounting to US$410 million (2020: US$574 million) due from the ERA trust fund and other financial assets held for the purposes of meeting closure obligations. These are included within “Receivables and other assets” on the balance sheet.
Schedule of close-down, restoration and environmental provisions
As at 31 December
2021
US$m
2020
US$m
Undiscounted close-down and environmental restoration obligations18,775 17,400 
Impact of discounting(4,233)(4,065)
Present closure obligation14,542 13,335 
Attributable to:
Operating sites10,727 10,736 
Non-operating sites3,815 2,599 
Total14,542 13,335 
Closure cost composition as at 31 December
2021
US$m
2020
US$m
Decommissioning, decontamination and demolition3,343 3,131 
Closure and rehabilitation earthworks (a)
4,125 4,223 
Long-term water management costs (b)
967 966 
Post closure monitoring and maintenance1,676 1,318 
Indirect costs, owners' costs and contingency (c)
4,431 3,697 
Total14,542 13,335 
The underlying costs for closure have been estimated with varying degrees of accuracy based on a function of the age of the underlying asset and proximity to closure. For assets within ten years of closure, closure plans and cost estimates are supported by detailed studies which are refined as the closure date approaches. These closure studies consider climate change and plan for resilience to expected climate conditions with a particular focus on precipitation rates. For new developments, consideration of climate change and ultimate closure conditions are an important part of the approval process. For longer-lived assets, closure provisions are typically based on conceptual level studies that are refreshed at least every five years; these are evolving to incorporate greater consideration of forecast climate conditions at closure.
(a)A key component of earthworks rehabilitation involves re-landscaping the area disturbed by mining activities utilising the largely diesel powered heavy mobile equipment. In developing low-carbon solutions for our mobile fleet, this may include electrification of the vehicles during the mine life. The forecast cash flows for the heavy mobile equipment in the closure cost estimate are based on existing fuel sources. The cost incurred during closure could reduce if these activities are powered by renewable energy.
(b)Long-term water management relates to the post-closure treatment of water due to acid rock drainage and other environmental commitments and is an area of research and development focus for our Closure team. The cost of this water processing can continue for many years after the bulk earthworks and demolition activities have completed and are therefore exposed to long-term climate change. This could materially affect rates of precipitation and therefore change the volume of water requiring processing. It is not currently possible to forecast accurately the impact this could have on the closure provision as some of our locations could experience drier conditions whereas others could experience greater rainfall. A further consideration relates to the alternative commercial use for the processed water, which could support ultimate transfer of these costs to a third party.
(c)Indirect costs, owners' costs and contingency include adjustments to the underlying cash flows to align the closure provision with a central-case estimate. This excludes allowances for quantitative estimation uncertainties, which are allocated to the underlying cost driver and presented within the respective cost categories above.

Geographic composition as at 31 December
2021
US$m
2020
US$m
Australia7,605 7,076 
USA4,057 3,819 
Canada1,662 1,482 
Rest of World1,218 958 
Total14,542 13,335