Cover Page
Cover Page | 12 Months Ended |
Jun. 30, 2022 shares | |
Document Information [line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | BHP GROUP LIMITED |
Entity Central Index Key | 0000811809 |
Current Fiscal Year End Date | --06-30 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Address, Address Line One | 171 COLLINS STREET |
Entity Address, City or Town | MELBOURNE |
Entity Address, Postal Zip Code | 3000 |
Entity Incorporation, State or Country Code | C3 |
Entity Address, Country | AU |
Entity Common Stock, Shares Outstanding | 5,065,820,556 |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Registration Statement | false |
Entity File Number | 001-09526 |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | Ernst & Young |
Auditor Firm ID | 1435 |
Auditor Location | Melbourne, Australia |
BHP Group Ltd [member] | Business Contact [Member] | |
Document Information [line Items] | |
Entity Address, Address Line One | 171 COLLINS STREET |
Entity Address, City or Town | MELBOURNE |
Entity Address, Postal Zip Code | 3000 |
Entity Address, Country | AU |
Contact Personnel Name | STEFANIE WILKINSON |
City Area Code | 61 3 |
Local Phone Number | 9609 3333 |
Contact Personnel Fax Number | 61 3 9609 3015 |
BHP Group Ltd [member] | American Depositary Shares [Member] | |
Document Information [line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | BHP |
Security Exchange Name | NYSE |
BHP Group Ltd [member] | Ordinary shares [member] | |
Document Information [line Items] | |
Title of 12(b) Security | Ordinary Shares |
Trading Symbol | BHP |
Security Exchange Name | NYSE |
Consolidated Income Statement
Consolidated Income Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Continuing operations | |||
Revenue | $ 65,098 | $ 56,921 | $ 38,924 |
Other income | 1,398 | 380 | 720 |
Expenses excluding net finance costs | (32,371) | (30,871) | (25,453) |
Loss from equity accounted investments, related impairments and expenses | (19) | (915) | (508) |
Profit from operations | 34,106 | 25,515 | 13,683 |
Financial expenses | (1,050) | (1,290) | (1,192) |
Financial income | 81 | 67 | 334 |
Net finance costs | (969) | (1,223) | (858) |
Profit before taxation | 33,137 | 24,292 | 12,825 |
Income tax expense | (10,430) | (10,376) | (4,216) |
Royalty-related taxation (net of income tax benefit) | (307) | (240) | 19 |
Total taxation expense | (10,737) | (10,616) | (4,197) |
Profit after taxation from Continuing operations | 22,400 | 13,676 | 8,628 |
Discontinued operations | |||
Profit/(loss) after taxation from Discontinued operations | 10,655 | (225) | 108 |
Profit after taxation from Continuing and Discontinued operations | 33,055 | 13,451 | 8,736 |
Attributable to non-controlling interests | 2,155 | 2,147 | 780 |
Attributable to BHP shareholders | $ 30,900 | $ 11,304 | $ 7,956 |
Basic earnings per ordinary share (cents) | $ 6.106 | $ 2.235 | $ 1.573 |
Diluted earnings per ordinary share (cents) | 6.093 | 2.230 | 1.570 |
Basic earnings from Continuing operations per ordinary share (cents) | 4 | 2.280 | 1.552 |
Diluted earnings from Continuing operations per ordinary share (cents) | $ 3.992 | $ 2.275 | $ 1.548 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of comprehensive income [abstract] | |||
Profit after taxation from Continuing and Discontinued operations | $ 33,055 | $ 13,451 | $ 8,736 |
Hedges: | |||
(Losses)/gains taken to equity | (914) | 863 | (315) |
Losses/(gains) transferred to the income statement | 881 | (837) | 297 |
Exchange fluctuations on translation of foreign operations taken to equity | (5) | 5 | 1 |
Exchange fluctuations on translation of foreign operations transferred to income statement | (54) | ||
Tax recognised within other comprehensive income | 10 | (8) | 5 |
Total items that may be reclassified subsequently to the income statement | (82) | 23 | (12) |
Items that will not be reclassified to the income statement: | |||
Re-measurement gains/(losses) on pension and medical schemes | 24 | 58 | (81) |
Equity investments held at fair value | (8) | (2) | (2) |
Tax recognised within other comprehensive income | (9) | (20) | 26 |
Total items that will not be reclassified to the income statement | 7 | 36 | (57) |
Total other comprehensive (loss)/income | (75) | 59 | (69) |
Total comprehensive income | 32,980 | 13,510 | 8,667 |
Attributable to non-controlling interests | 2,160 | 2,158 | 769 |
Attributable to BHP shareholders | $ 30,820 | $ 11,352 | $ 7,898 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 17,236 | $ 15,246 |
Trade and other receivables | 5,426 | 6,059 |
Other financial assets | 629 | 230 |
Inventories | 4,935 | 4,426 |
Assets held for sale | 324 | |
Current tax assets | 263 | 279 |
Other | 175 | 129 |
Total current assets | 28,664 | 26,693 |
Non-current assets | ||
Trade and other receivables | 153 | 337 |
Other financial assets | 802 | 1,610 |
Inventories | 1,315 | 1,358 |
Property, plant and equipment | 61,295 | 73,813 |
Intangible assets | 1,369 | 1,437 |
Investments accounted for using the equity method | 1,420 | 1,742 |
Deferred tax assets | 56 | 1,912 |
Other | 92 | 25 |
Total non-current assets | 66,502 | 82,234 |
Total assets | 95,166 | 108,927 |
Current liabilities | ||
Trade and other payables | 6,687 | 7,027 |
Interest bearing liabilities | 2,622 | 2,628 |
Liabilities directly associated with the assets held for sale | 17 | |
Other financial liabilities | 579 | 130 |
Current tax payable | 3,032 | 2,800 |
Provisions | 3,965 | 3,696 |
Deferred income | 34 | 105 |
Total current liabilities | 16,919 | 16,403 |
Non-current liabilities | ||
Interest bearing liabilities | 13,806 | 18,355 |
Other financial liabilities | 1,997 | 1,146 |
Non-current tax payable | 87 | 120 |
Deferred tax liabilities | 3,063 | 3,314 |
Provisions | 10,478 | 13,799 |
Deferred income | 50 | 185 |
Total non-current liabilities | 29,481 | 36,919 |
Total liabilities | 46,400 | 53,322 |
Net assets | 48,766 | 55,605 |
EQUITY | ||
Treasury shares | (31) | (33) |
Reserves | 12 | 2,350 |
Retained earnings | 40,338 | 46,779 |
Total equity attributable to BHP shareholders | 44,957 | 51,264 |
Non-controlling interests | 3,809 | 4,341 |
Total equity | 48,766 | 55,605 |
BHP Group Limited [member] | ||
EQUITY | ||
Share capital | $ 4,638 | 1,111 |
BHP Group Plc [member] | ||
EQUITY | ||
Share capital | $ 1,057 |
Consolidated Cash Flow Statemen
Consolidated Cash Flow Statement - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | |||
Profit before taxation from Continuing operations | $ 33,137 | $ 24,292 | $ 12,825 |
Adjustments for: | |||
Depreciation and amortisation expense | 5,683 | 5,084 | 4,667 |
Impairments of property, plant and equipment, financial assets and intangibles | 515 | 2,507 | 482 |
Net finance costs | 969 | 1,223 | 858 |
Loss from equity accounted investments, related impairments and expenses | 19 | 915 | 508 |
Other | (350) | 573 | 896 |
Changes in assets and liabilities: | |||
Trade and other receivables | (703) | (2,389) | 128 |
Inventories | (865) | (405) | (714) |
Trade and other payables | 727 | 1,149 | (589) |
Provisions and other assets and liabilities | (248) | 486 | 1,350 |
Cash generated from operations | 38,884 | 33,435 | 20,411 |
Dividends received | 1,018 | 728 | 117 |
Interest received | 58 | 97 | 368 |
Interest paid | (657) | (766) | (1,213) |
Proceeds/(settlements) of cash management related instruments | 378 | (401) | 85 |
Net income tax and royalty-related taxation refunded | 105 | 222 | 47 |
Net income tax and royalty-related taxation paid | (10,501) | (7,432) | (5,130) |
Net operating cash flows from Continuing operations | 29,285 | 25,883 | 14,685 |
Net operating cash flows from Discontinued operations | 2,889 | 1,351 | 1,021 |
Net operating cash flows | 32,174 | 27,234 | 15,706 |
Investing activities | |||
Purchases of property, plant and equipment | (5,855) | (5,612) | (5,991) |
Exploration expenditure | (256) | (192) | (176) |
Exploration expenditure expensed and included in operating cash flows | 199 | 134 | 123 |
Net investment and funding of equity accounted investments | (266) | (553) | (596) |
Proceeds from sale of assets | 221 | 158 | 187 |
Proceeds/(settlements) from sale of subsidiaries, operations and joint operations net of their cash | 1,255 | (3) | |
Other investing | (271) | (257) | (130) |
Net investing cash flows from Continuing operations | (4,973) | (6,325) | (6,583) |
Net investing cash flows from Discontinued operations | (904) | (1,520) | (1,033) |
Net cash completion payment on merger of Petroleum with Woodside | (683) | ||
Cash and cash equivalents disposed on merger of Petroleum with Woodside | (399) | ||
Net investing cash flows | (6,959) | (7,845) | (7,616) |
Financing activities | |||
Proceeds from interest bearing liabilities | 1,164 | 568 | 514 |
Proceeds/(settlements) of debt related instruments | 167 | (157) | |
Repayment of interest bearing liabilities | (3,358) | (8,357) | (2,008) |
Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts | (149) | (234) | (143) |
Dividends paid | (17,851) | (7,901) | (6,876) |
Dividends paid to non-controlling interests | (2,540) | (2,127) | (1,043) |
Net financing cash flows from Continuing operations | (22,734) | (17,884) | (9,713) |
Net financing cash flows from Discontinued operations | (33) | (38) | (39) |
Net financing cash flows | (22,767) | (17,922) | (9,752) |
Net increase/(decrease) in cash and cash equivalents from Continuing operations | 1,578 | 1,674 | (1,611) |
Net increase/(decrease) in cash and cash equivalents from Discontinued operations | 1,952 | (207) | (51) |
Net cash completion payment on merger of Petroleum with Woodside | (683) | ||
Cash and cash equivalents disposed on merger of Petroleum with Woodside | (399) | ||
Cash and cash equivalents, net of overdrafts, at the beginning of the financial year | 15,246 | 13,426 | 15,593 |
Foreign currency exchange rate changes on cash and cash equivalents | (458) | 353 | (505) |
Cash and cash equivalents, net of overdrafts, at the end of the financial year | $ 17,236 | $ 15,246 | $ 13,426 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Share capital [member] BHP Group Limited [member] | Share capital [member] BHP Group Plc [member] | Treasury shares [member] BHP Group Limited [member] | Treasury shares [member] BHP Group Plc [member] | Reserves [member] | Retained earnings [member] | Attributable to BHP shareholders [member] | Non-controlling interests [member] |
Balance at Jun. 30, 2019 | $ 51,753 | $ 1,111 | $ 1,057 | $ (32) | $ 2,285 | $ 42,748 | $ 47,169 | $ 4,584 | |
Total comprehensive income | 8,667 | (12) | 7,910 | 7,898 | 769 | ||||
Transactions with owners: | |||||||||
Purchase of shares by ESOP Trusts | (143) | (139) | $ (4) | (143) | |||||
Employee share awards exercised net of employee contributions net of tax | 166 | 4 | (132) | (38) | |||||
Vested employee share awards that have lapsed, been cancelled or forfeited | (10) | 10 | |||||||
Accrued employee entitlement for unexercised awards net of tax | 175 | 175 | 175 | ||||||
Dividends | (8,277) | (7,234) | (7,234) | (1,043) | |||||
Balance at Jun. 30, 2020 | 52,175 | 1,111 | 1,057 | (5) | 2,306 | 43,396 | 47,865 | 4,310 | |
Total comprehensive income | 13,510 | 22 | 11,330 | 11,352 | 2,158 | ||||
Transactions with owners: | |||||||||
Purchase of shares by ESOP Trusts | (234) | (229) | (5) | (234) | |||||
Employee share awards exercised net of employee contributions net of tax | 202 | 4 | (149) | (57) | |||||
Vested employee share awards that have lapsed, been cancelled or forfeited | (4) | 4 | |||||||
Accrued employee entitlement for unexercised awards net of tax | 175 | 175 | 175 | ||||||
Dividends | (10,021) | (7,894) | (7,894) | (2,127) | |||||
Balance at Jun. 30, 2021 | 55,605 | 1,111 | 1,057 | (32) | (1) | 2,350 | 46,779 | 51,264 | 4,341 |
Total comprehensive income | 32,980 | (90) | 30,910 | 30,820 | 2,160 | ||||
Transactions with owners: | |||||||||
BHP Group Limited shares issued | 172 | (172) | |||||||
Purchase of shares by ESOP Trusts | (149) | (148) | (1) | (149) | |||||
Employee share awards exercised net of employee contributions net of tax | 321 | $ 2 | (207) | (116) | |||||
Vested employee share awards that have lapsed, been cancelled or forfeited | (30) | 30 | |||||||
Accrued employee entitlement for unexercised awards net of tax | 143 | 143 | 143 | ||||||
Corporate structure unification | 3,355 | $ (1,057) | (2,298) | ||||||
Dividends | (20,260) | (17,720) | (17,720) | (2,540) | |||||
In specie dividend on merger of Petroleum with Woodside | (19,559) | (19,559) | (19,559) | ||||||
Divestment of subsidiaries, operations and joint operations | (157) | (157) | |||||||
Transfers within equity on divestment of subsidiaries, operations and joint operations | (14) | 14 | |||||||
Equity contributed net of tax | 163 | 158 | 158 | 5 | |||||
Balance at Jun. 30, 2022 | $ 48,766 | $ 4,638 | $ (31) | $ 12 | $ 40,338 | $ 44,957 | $ 3,809 |
Segment reporting
Segment reporting | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Segment reporting | 1 Segment reporting Reportable segments The Group operated three reportable segments during FY2022, which are aligned with the commodities that are extracted and marketed and reflect the structure used by the Group’s management to assess the performance of the Group. Reportable segment Principal activities Copper Mining of copper, silver, zinc, molybdenum, uranium and gold Iron Ore Mining of iron ore Coal Mining of metallurgical coal and energy coal On 22 November 2021, the Group signed a binding SSA for the merger of the Group’s oil and gas portfolio with Woodside. Following that announcement, the Group’s Petroleum business no longer meets the reporting segment recognition criteria as outlined in IFRS 8/AASB 8 ‘Operating segments’ and therefore does not form part of the reportable segments. Comparative periods have been adjusted for the effects of applying IFRS 5/AASB 5 ‘Non-current Assets Held for Sale and Discontinued Operations’ to disclose the Group’s Petroleum business on the same basis as the current period. Group and unallocated items includes functions, other unallocated operations including Potash, Nickel West and legacy assets, and consolidation adjustments. Revenue not attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from unallocated operations. Exploration and technology activities are recognised within relevant segments. Year ended 30 June 2022 US$M Copper Iron Ore Coal Group and Group Revenue 16,849 30,767 15,549 1,933 65,098 Inter-segment revenue – – – – – Total revenue 16,849 30,767 15,549 1,933 65,098 Underlying EBITDA 8,565 21,707 9,504 858 40,634 Depreciation and amortisation (1,765 ) (2,203 ) (762 ) (953 ) (5,683 ) Impairment losses 1 (470 ) (33 ) (9 ) (3 ) (515 ) Underlying EBIT 6,330 19,471 8,733 (98 ) 34,436 Exceptional items 2 (81 ) (648 ) 849 (450 ) (330 ) Net finance costs (969 ) Profit before taxation 33,137 Capital expenditure (cash basis) 2,528 1,848 621 858 5,855 Profit/(loss) from equity accounted investments, related impairments and 577 (595 ) – (1 ) (19 ) Investments accounted for using the equity method 1,415 – – 5 1,420 Total assets 3 32,762 24,613 11,524 26,267 95,166 Total liabilities 3 5,342 7,790 3,874 29,394 46,400 Year ended 30 June 2021 US$M Restated Copper Iron Ore Coal Group and Group Revenue 15,726 34,475 5,154 1,566 56,921 Inter-segment revenue – – – – – Total revenue 15,726 34,475 5,154 1,566 56,921 Underlying EBITDA 8,489 26,278 288 18 35,073 Depreciation and amortisation (1,608 ) (1,971 ) (845 ) (660 ) (5,084 ) Impairment losses 1 (72 ) (13 ) (20 ) (31 ) (136 ) Underlying EBIT 6,809 24,294 (577 ) (673 ) 29,853 Exceptional items 2 (144 ) (1,319 ) (1,567 ) (1,308 ) (4,338 ) Net finance costs (1,223 ) Profit before taxation 24,292 Capital expenditure (cash basis) 2,180 2,188 579 665 5,612 Profit/(loss) from equity accounted investments, related impairments and expenses 692 (1,126 ) (480 ) (1 ) (915 ) Investments accounted for using the equity method 1,482 – – 260 1,742 Total assets 3 31,517 26,171 11,030 40,209 108,927 Total liabilities 3 4,589 7,508 3,518 37,707 53,322 Year ended 30 June 2020 US$M Restated Copper Iron Ore Coal Group and Group Revenue 10,666 20,797 6,241 1,220 38,924 Inter-segment revenue – – 1 (1 ) – Total revenue 10,666 20,797 6,242 1,219 38,924 Underlying EBITDA 4,347 14,554 1,632 (663 ) 19,870 Depreciation and amortisation (1,740 ) (1,608 ) (807 ) (512 ) (4,667 ) Impairment losses 1 (17 ) (22 ) (14 ) (20 ) (73 ) Underlying EBIT 2,590 12,924 811 (1,195 ) 15,130 Exceptional items 2 (1,228 ) (614 ) (18 ) 413 (1,447 ) Net finance costs (858 ) Profit before taxation 12,825 Capital expenditure (cash basis) 2,434 2,328 603 626 5,991 Profit/(loss) from equity accounted investments, related impairments and expenses 67 (508 ) (68 ) 1 (508 ) Investments accounted for using the equity method 1,558 – 776 251 2,585 Total assets 3 28,892 23,841 12,110 40,890 105,733 Total liabilities 3 3,535 5,441 2,601 41,981 53,558 1 Impairment losses exclude exceptional items of US$ nil (2021: US$2,371 million; 2020: US$409 million). 2 Exceptional items reported in Group and unallocated include Samarco dam failure costs of US$(13) million (2021: US$(14) million; 2020: US$(32) million) and Samarco related other income of US$ 3 Group and unallocated comparative periods total assets and total liabilities include Petroleum assets and liabilities that were previously disclosed as part of the Petroleum segment. Geographical information Revenue by location of customer 2022 2021 2020 US$M US$M US$M Restated Restated Australia 1,649 1,871 1,212 Europe 2,129 886 963 China 36,618 39,653 26,503 Japan 8,401 4,387 3,314 India 5,215 2,189 1,475 South Korea 4,786 3,420 2,666 Rest of Asia 4,303 2,934 1,730 North America 1,282 1,147 719 South America 715 426 315 Rest of world – 8 27 65,098 56,921 38,924 Non-current assets by location of assets 2022 2021 2020 US$M US$M US$M Australia 43,250 48,612 48,236 North America 3,964 9,701 9,682 South America 18,280 18,548 18,179 Rest of world 150 1,851 1,955 Unallocated assets 1 858 3,522 6,210 66,502 82,234 84,262 1 Unallocated assets comprise deferred tax assets and other financial assets. Underlying EBITDA Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any exceptional items. Underlying EBITDA includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit). Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from period-to-period and provide investors with further clarity in order to assess the performance of the Group’s operations. Management monitors exceptional items separately. Refer to note 3 ‘Exceptional items’ for additional detail. Segment assets and liabilities Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities and deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted investment. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Revenue | 2 Revenue Revenue by segment and asset 2022 2021 2020 US$M US$M US$M Restated Restated Escondida 9,500 9,470 6,719 Pampa Norte 2,670 1,801 1,395 Olympic Dam 1,776 2,211 1,463 Third - 2,903 2,244 1,089 Total Copper 1 16,849 15,726 10,666 Western Australia Iron Ore 30,632 34,337 20,663 Third-party products 19 18 15 Other 116 120 119 Total Iron Ore 30,767 34,475 20,797 BHP Mitsubishi Alliance 10,254 3,537 4,422 New South Wales Energy Coal 3,035 839 885 Other 2 2,260 778 935 Total Coal 3 15,549 5,154 6,242 Group and unallocated items 4 1,933 1,566 1,220 Inter-segment adjustment – – (1 ) Total revenue 65,098 56,921 38,924 1 Total Copper revenue includes: copper US$15,992 million (2021: US$14,812 million; 2020: US$10,044 million) and other US$857 million (2021: US$914 million; 2020: US$622 million). Other consists of silver, zinc, molybdenum, uranium and gold. 2 Includes revenue related to BHP Mitsui Coal (BMC) divested in May 2022. 3 Total Coal revenue includes: metallurgical coal US$11,990 million (2021: US$4,260 million; 2020: US$5,311 million) and energy coal US$3,559 million (2021: US$894 million; 2020: US$931 million). 4 Group and unallocated items revenue includes: Nickel West US$1,926 million (2021: US$1,545 million; 2020: US$1,189 million) and other revenue US$7 million (2021: US$21 million; 2020: US$31 million). Revenue consists of revenue from contracts with customers of US$ 65,504 million (2021: US$55,562 million; 2020: US$38,917 million) and other revenue predominantly relating to provisionally priced sales of US$(406) million (2021: US$1,359 million; 2020: US$7 million). Recognition and measurement The Group generates revenue from the production and sale of commodities. Revenue is recognised when or as control of the promised goods or services passes to the customer. In most instances, control passes when the goods are delivered to a destination specified by the customer, typically on board the customer’s appointed vessel. Revenue from the provision of services is recognised over time as the services are provided, but does not represent a significant proportion of total revenue and is aggregated with the respective asset and product revenue for disclosure purposes. The amount of revenue recognised reflects the consideration to which the Group expects to be entitled in exchange for transferring goods or services. Where the Group’s sales are provisionally priced, the final price depends on future index prices. The amount of revenue initially recognised is based on the relevant forward market price. Adjustments between the provisional and final price are accounted for under IFRS 9/AASB 9 ‘Financial Instruments’ (IFRS 9), separately recorded as other revenue and presented as part of the total revenue of each asset. The period between provisional pricing and final invoicing is typically between 60 and 120 days. Revenue from the sale of significant by-products is included within revenue. Where a by-product is not significant, revenue is credited against costs. The Group applies the practical expedient to not adjust the expected consideration for the effects of the time value of money if the period between the delivery and when the customer pays for the promised good or service is one year or less. The Group applies the practical expedient not to disclose information relating to unfulfilled performance obligations, either due to the expected duration of the contract term being one year or less, or for longer term contracts, because the entity has a right to consideration (and can recognise revenue) for goods delivered. |
Exceptional items
Exceptional items | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Exceptional items | 3 Exceptional items Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact is considered material to the Financial Statements. Such items included within the Group’s profit from Continuing operations for the year are detailed below. Exceptional items attributable to D Year ended 30 June 2022 Gross Tax Net US$M US$M US$M Exceptional items by category Samarco dam failure (1,032 ) (31 ) (1,063 ) Impairment of US deferred tax assets – (423 ) (423 ) Corporate structure unification costs (428 ) – (428 ) BHP Mitsui Coal (BMC) gain on disposal 840 – 840 Total (620 ) (454 ) (1,074 ) Attributable to non-controlling interests – – – Attributable to BHP shareholders (620 ) (454 ) (1,074 ) Samarco Mineração S.A. (Samarco) dam failure The FY2022 exceptional loss of US$1,063 million (after tax) related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2022 US$M Other income – Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (66 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense – Samarco Germano dam decommissioning 68 Samarco dam failure provision (663 ) Fair value change on forward exchange derivatives (81 ) Net finance costs (290 ) Income tax expense (31 ) Total 1 (1,063 ) 1 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. Impairment of US deferred tax assets The Group recognised an impairment charge of US$423 million (after tax) in relation to deferred tax assets where the recoverability has historically been reliant on Petroleum earnings in the same tax group. While these tax assets remained with the Group following the merger of the Group’s oil and gas portfolio with Woodside, the impairment charge reflects the extent of other currently forecast future earnings against which the assets can be recovered. Corporate structure unification costs The Group incurred transaction costs associated with the unification of the Group corporate structure under its existing Australian parent company, BHP Group Limited, which was completed on 31 January 2022. Refer note 16 ‘Share capital’ for further information. BHP Mitsui Coal (BMC) gain on disposal On 3 May 2022 the Group sold it per cent interest in BHP Mitsui Coal Pty Ltd (BMC) to Stanmore SMC Holdings Pty Ltd, a wholly owned subsidiary of Stanmore Resources Limited (Stanmore Resources). Stanmore Resources paid billion cash consideration at completion plus a preliminary completion adjustment of million for working capital million in cash remains payable in on 3 November 2022 with potential for an additional amount of up to million (US$122 million discounted) in a price-linked earnout payable in the 2024 calendar year. Details of the gain on disposal is as follows: US$M Assets Cash and cash equivalents 63 Trade and other receivables 360 Other financial assets 26 Inventories 92 Property, plant and equipment 1,214 Total assets 1,755 Liabilities Trade and other payables 253 Interest bearing liabilities 249 Tax payable s 9 Provisions 425 Deferred tax liabilities 31 Total liabilities 967 Net assets disposed 788 Less non-controlling interest share of net assets disposed 157 BHP share of net assets disposed 631 Gross consideration 1,318 Transaction and other directly applicable costs (69 ) Income tax expense – Deferred consideration 222 Gain on disposal 840 The exceptional items relating to the year ended 30 June 2021 and the year ended 30 June 2020 are detailed below. 30 June 2021 Year ended 30 June 2021 Restated Gross Tax Net US$M US$M US$M Exceptional items by category Samarco dam failure (1,087 ) (71 ) (1,158 ) COVID-19 related costs (499 ) 138 (361 ) Impairment of Energy coal assets (1,523 ) (651 ) (2,174 ) Impairment of Potash assets (1,314 ) (473 ) (1,787 ) Total (4,423 ) (1,057 ) (5,480 ) Attributable to non-controlling interests (34 ) 10 (24 ) Attributable to BHP shareholders (4,389 ) (1,067 ) (5,456 ) Samarco Mineração S.A. (Samarco) dam failure The FY2021 exceptional loss of US$1,158 million related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2021 US$M Other income 34 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (46 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (111 ) Samarco Germano dam decommissioning (15 ) Samarco dam failure provision (1,000 ) Fair value change on forward exchange derivatives 136 Net finance costs (85 ) Income tax expense (71 ) Total 1 (1,158 ) 1 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. COVID-19 related costs The exceptional item reflects the directly attributable COVID-19 pandemic related additional costs for the Group for FY2021, including costs associated with the increased provision of health and hygiene services, the impacts of maintaining social distancing requirements and demurrage and other standby charges related to delays caused by COVID-19. At the time, COVID-19 was considered a single protracted globally pervasive event. However, as the pandemic has continued to evolve, certain impacts that were initially considered to be potentially short-term in nature are now expected to continue over a number of reporting periods. These activities are now considered to be part of business as usual operations and, as such, for FY2022, the incremental costs have not been classified as an exceptional item. Impairment of Energy coal assets The Group recognised an impairment charge of US$1,704 million (after tax) in relation to New South Wales Energy Coal (NSWEC) reflecting the status of the divestment process and current market conditions for thermal coal, the strengthening Australian dollar and changes to the mine plan. In addition, the Group recognised an impairment charge of US$470 million (after tax) for Cerrejón, reflecting the expected net sales proceeds. Impairment of Potash assets The Group recognised an impairment charge of US$1,787 million (after tax) in relation to Potash. The impairment charge reflect ed expected 30 June 2020 Year ended 30 June 2020 Gross Tax Net US$M US$M US$M Exceptional items by category Samarco dam failure (176 ) – (176 ) Cancellation of power contracts (778 ) 271 (507 ) COVID-19 related costs (177 ) 51 (126 ) Cerro Colorado impairment (409 ) (83 ) (492 ) Total (1,540 ) 239 (1,301 ) Attributable to non-controlling interests (291 ) 90 (201 ) Attributable to BHP shareholders (1,249 ) 149 (1,100 ) Samarco Mineração S.A. (Samarco) dam failure The FY2020 exceptional loss of US$176 million related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2020 US$M Other income 489 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (64 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (95 ) Samarco Germano dam decommissioning 46 Samarco dam failure provision (459 ) Net finance costs (93 ) Total 1 (176 ) 1 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. Cancellation of power contracts Reflects an onerous contract provision in relation to the cancellation of power contracts at the Group’s Escondida and Spence operations, as part of the shift towards 100 per cent renewable energy supply contracts. COVID-19 related costs The exceptional item reflects the directly attributable COVID-19 pandemic related additional costs for the Group for FY2020, including costs associated with the increased provision of health and hygiene services, the impacts of maintaining social distancing requirements and other standby charges related to delays caused by COVID-19. At the time, COVID-19 was considered a single protracted globally pervasive event. However, as the pandemic has continued to evolve, certain impacts that were initially considered to be potentially short-term in nature are now expected to continue over a number of reporting periods. These activities are now considered to be part of business as usual operations and, as such, for FY2022, the incremental costs have not been classified as an exceptional item. Cerro Colorado impairment The Group recognised an impairment charge of US$492 million (after tax) in relation to Cerro Colorado. This reflects the decision taken by the Group to reduce Cerro Colorado’s throughput for the remaining period of its current environmental licence, which expires at the end of CY2023. |
Provisions
Provisions | 12 Months Ended |
Jun. 30, 2022 | |
Samarco dam failure [member] | |
Statement [Line Items] | |
Provisions | 4 Significant events – Samarco dam failure On 5 November 2015, the Samarco Mineração S.A. (Samarco) iron ore operation in Minas Gerais, Brazil, experienced a tailings dam failure that resulted in a release of mine tailings, flooding the communities of Bento Rodrigues, Gesteira and Paracatu and impacting other communities downstream (the Samarco dam failure). Refer to section on ‘Samarco’ in the Operating and Financial Review. Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). BHP Brasil’s 50 per cent interest is accounted for as an equity accounted joint venture investment. BHP Brasil does not separately recognise its share of the underlying assets and liabilities of Samarco, but instead records the investment as one line on the balance sheet. Each period, BHP Brasil recognise d ed d was Any charges relating to the Samarco dam failure incurred directly by BHP Brasil or other BHP entities are recognised 100 per cent in the Group’s results. The financial impacts of the Samarco dam failure on the Group’s income statement, balance sheet and cash flow statement for the year ended 30 June 2022 are shown in the tables below and have been treated as an exceptional item. Financial impacts of Samarco dam failure 2022 2021 2020 US$M US$M US$M Income statement Other income 1 – 34 489 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure 2 (66 ) (46 ) (64 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense 3 – (111 ) (95 ) Samarco Germano dam decommissioning 4 68 (15 ) 46 Samarco dam failure provision 5 (663 ) (1,000 ) (459 ) Fair value change on forward exchange derivatives 6 (81 ) 136 – Loss from operations (742 ) (1,002 ) (83 ) Net finance costs 7 (290 ) (85 ) (93 ) Loss before taxation (1,032 ) (1,087 ) (176 ) Income tax expense 8 (31 ) (71 ) – Loss after taxation (1,063 ) (1,158 ) (176 ) Balance sheet movement Trade and other payables (1 ) (5 ) (5 ) Derivatives (160 ) 136 – Tax liabilities (31 ) (71 ) – Provisions (629 ) (741 ) (137 ) Net liabilities (821 ) (681 ) (142 ) 2022 2021 2020 US$M US$M US$M Cash flow statement Loss before taxation (1,032 ) (1,087 ) (176 ) Adjustments for: Samarco impairment expense 3 – 111 95 Samarco Germano dam decommissioning 4 (68 ) 15 (46 ) Samarco dam failure provision 5 663 1,000 459 Fair value change on forward exchange derivatives 6 81 (136 ) – Proceeds of cash management related instruments 79 – – Net finance costs 7 290 85 93 Changes in assets and liabilities: Trade and other payables 1 5 5 Net operating cash flows 14 (7 ) 430 Net investment and funding of equity accounted investments 9 (256 ) (470 ) (464 ) Net investing cash flows (256 ) (470 ) (464 ) Net decrease in cash and cash equivalents (242 ) (477 ) (34 ) 1 Proceeds from insurance settlements. 2 Includes legal and advisor costs incurred. 3 Impairment expense from working capital funding provided during the period. 4 US$(56) million (2021: US$(6) million; 2020: US$37 million) change in estimate and US$(12) million (2021: US$21 million; 2020: US$(83) million) exchange translation. 5 US$747 million (2021: US$842 million; 2020: US$916 million) change in estimate and US$(84) million (2021: US$158 million; 2020: US$(457) million) exchange translation. 6 During the period the Group entered 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 Loss from equity accounted investments, related impairments and expenses in the Income Statement. 7 Amortisation of discounting of provision. 8 Includes tax on forward exchange derivatives and other taxes incurred during the period. 9 Includes US $ $ o Equity accounted investment in Samarco BHP Brasil’s investment in Samarco remains at US$ nil. No dividends have been received by BHP Brasil from Samarco during the period and Samarco currently does not have profits available for distribution. Provisions related to the Samarco dam failure 2022 2021 US$M US$M At the beginning of the financial year 2,792 2,051 Movement in provisions 629 741 Comprising: Utilised (256 ) (359 ) Adjustments charged to the income statement: Change in estimate - Samarco dam failure provision 747 842 Change in estimate - Samarco Germano dam decommissioning (56 ) (6 ) Amortisation of discounting impacting net finance costs 290 85 Exchange translation (96 ) 179 At the end of the financial year 3,421 2,792 Comprising: Current 1,815 1,206 Non-current 1,606 1,586 At the end of the financial year 3,421 2,792 Comprising: Samarco dam failure provision 3,237 2,560 Samarco Germano dam decommissioning provision 184 232 Samarco dam failure provisions and contingencies As at 30 June 2022, BHP Brasil has identified provisions and contingent liabilities arising as a consequence of the Samarco dam failure as follows: Provisions Provision for Samarco dam failure On 2 March 2016, BHP Brasil, Samarco and Vale, entered into a Framework Agreement with the Federal Government of Brazil, the states of Espírito Santo and Minas Gerais and certain other public authorities to establish a foundation (Fundação Renova) that is developing and executing environmental and socio-economic programs (Programs) to remediate and provide compensation for damage caused by the Samarco dam failure (the Framework Agreement). Key Programs include those for financial assistance and compensation of impacted persons, including fisherfolk impacted by the dam failure, and those for remediation of impacted areas and resettlement of impacted communities. A committee (Interfederative Committee) comprising representatives from the Brazilian Federal and State Governments, local municipalities, environmental agencies, impacted communities and Public Defence Office oversees the activities of the Fundação Renova in order to monitor, guide and assess the progress of actions agreed in the Framework Agreement. In addition, the 12th Federal Court is supervising the work of the Fundação Renova and the Court’s decisions, including decisions relating to the scope of individuals eligible for compensation and the amount of damages to which they are entitled, have been considered in the Samarco dam failure provision change in estimate. Any future decisions will be analysed for impacts on the provision at the time of any decision and the provision may be impacted in future reporting periods as a result of appeals and motions for clarification on certain Court decisions that remain outstanding. The term of the Framework Agreement is 15 years, renewable for periods of one year successively until all obligations under the Framework Agreement have been performed. Under the Framework Agreement, Samarco has primary responsibility for funding Fundação Renova’s annual calendar year budget for the duration of the Framework Agreement. The funding amounts for each calendar year will be dependent on the remediation and compensation projects to be undertaken in a particular year. Annual contributions may be reviewed under the Framework Agreement. To the extent that Samarco does not meet its funding obligations, each of BHP Brasil and Vale have secondary funding obligations under the Framework Agreement in proportion to their Samarco began to gradually recommence operations in December 2020, however, there remains significant uncertainty regarding Samarco’s long-term cash flow generation and the outcome of the Judicial Reorganisation (outlined below) . The dam failure provision at 30 June 2022 reflects only the Group’s estimate of the costs to be incurred in completing those Programs, as the Group is unable to provide a range of possible outcomes or a reliable estimate of other existing or potential future claims (refer to contingent liabilities below). Under a Governance Agreement ratified on 8 August 2018, BHP Brasil, Samarco and Vale were to establish a process to renegotiate the Programs over two years to progress settlement of the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim (described below). Pre-requisites established in the Governance Agreement, for re-negotiation of the Framework Agreement , was Formal of the claim ceased 10 December , however no further rulings have been made BHP Brasil, Samarco, Vale and Federal and State prosecutors have been engaging in negotiations to seek a definitive and substantive settlement of the obligations under the Framework Agreement and the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim. The negotiations are overseen by the President of the National Council of Justice, as the Chief Justice of the Supreme Court in Brazil and are expected to continue until at least the expected end of the term of the current President on 31 August 2022. Outcomes of the negotiations are highly uncertain and, until any revisions to the Programs are agreed, Fundação Renova will continue to implement the Programs in accordance with the terms of the Framework Agreement and the Governance Agreement. BHP Brasil, Samarco and Vale are required to maintain security of an amount equal to the Fundação Renova’s annual budget up to a limit of R$2.2 billion (approximately US$420 million). The security currently comprises R$1.3 billion (approximately US$250 million) in insurance bonds and a charge of R$800 million (approximately US$150 million) over Samarco’s assets. A further R$100 million (approximately US$20 million) in liquid assets previously maintained as security was released for COVID-19 related response efforts in Brazil. Samarco Germano dam decommissioning Samarco is currently progressing plans for the accelerated decommissioning of its upstream tailings dams (the Germano dam complex). Given the uncertainties surrounding Samarco’s long-term cash flow generation, BHP Brasil’s provision for a 50 per cent share of the expected Germano decommissioning costs i s US$184 million (30 June 2021: U S$232 million). The decommissioning is progressing, however further engineering work and required validation by Brazilian authorities could lead to changes to estimates in future reporting periods. Contingent liabilities The following matters are disclosed as contingent liabilities and given the status of these matters it is not possible to provide a range of possible outcomes or a reliable estimate of potential future exposures for BHP, unless otherwise stated. A number of the claims below have not specified the amount of damages sought and, where this is specified, amounts could change as the matter progresses. Ultimately, all the legal matters disclosed as contingent liabilities could have a material adverse impact on BHP’s business, competitive position, cash flows, prospects, liquidity and shareholder returns. Federal Public Prosecution Office claim BHP Brasil is among the defendants named in a claim brought by the Federal Public Prosecution Office on 3 May 2016 , seeking R$155 billion (approximately US$30 billion) for reparation, compensation and moral damages in relation to the Samarco dam failure . The 12th Federal Court previously suspended the Federal Public Prosecution Office September 2020, Brazilian Federal and State prosecutors and public defenders filed a request for the immediate resumption of the R$155 billion (approximately US$30 billion) claim, which was suspended since the date of ratification of the Governance Agreement. Formal suspension of the claim ceased on 10 December 2021, however no further rulings have been made. BHP Brasil, Samarco, Vale and Federal and State prosecutors have been engaging in negotiations to seek a definitive and substantive settlement of the obligations under the Framework Agreement and the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim. The negotiations are overseen by the President of the National Council of Justice, as the Chief Justice of the Supreme Court in Brazil and are expected to continue until at least the expected end of the term of the current President on 31 August 2022. Outcomes of the negotiations are highly uncertain and it is therefore not possible to provide a reliable estimate of potential outcomes and there is a risk that a negotiated outcome may be materially higher than amounts currently reflected in the Samarco dam failure provision. Australian class action complaint BHP Group Ltd is named as a defendant in a shareholder class action filed in the Federal Court of Australia on behalf of persons who acquired shares in BHP Group Ltd on the Australian Securities Exchange or shares in BHP Group Plc on the London Stock Exchange and Johannesburg Stock Exchange in periods prior to the Samarco dam failure. The amount of damages sought is unspecified. United Kingdom group action complaint BHP Group Plc and BHP Group Ltd were named as defendants in group action claims for damages filed in the courts of England. These claims were filed on behalf of certain individuals, governments, businesses and communities in Brazil allegedly impacted by the Samarco dam failure. The amount of damages sought in these claims is unspecified. In August 2019, the BHP parties filed a preliminary application to strike out or stay this action on jurisdictional and other procedural grounds. That application was successful before the High Court and the action was dismissed. However, on 8 July 2022, the Court of Appeal reversed the dismissal decision and allowed the action to proceed in England. BHP Group Ltd and BHP Group (UK) Ltd (formerly BHP Group Plc) will seek permission to appeal to the Supreme Court of the United Kingdom. Criminal charges The Federal Prosecutors’ Office has filed criminal charges against BHP Brasil, Samarco and Vale and certain employees and former employees of BHP Brasil (Affected Individuals) in the Federal Court of Ponte Nova, Minas Gerais. On 3 March 2017, BHP Brasil filed its preliminary defences. The Federal Court terminated the charges against eight of the Affected Individuals. The Federal Prosecutors’ Office has appealed seven of those decisions with hearings of the appeals still pending. BHP Brasil rejects outright the charges against the company and the Affected Individuals and is defending itself from all charges while fully supporting each of the Affected Individuals in their defence of the charges. Civil public action commenced by Associations concerning the use of Tanfloc for water treatment The Vila Lenira Residents Association, State of Espírito Santo Rural Producers and Artisans Association, Colatina Velha Neighborhood Residents Association, and United for the Progress of Palmeiras Neighborhood Association have filed a lawsuit against Samarco, BHP Brasil and Vale and others, including the State of Minas Gerais, the State of Espirito Santo and the Federal Government. The plaintiffs allege that the defendants carried out a clandestine study on the citizens of the locations affected by the Fundão’s Dam Failure, using TANFLOC – a tannin-based flocculant/coagulant – that is currently used for wastewater treatment applications. The plaintiffs claim that this product allegedly put the population at risk due to its alleged experimental qualities. The plaintiffs are seeking multiple kinds of relief – material damage, moral damages, loss of profits – and that the defendants should pay for water supply in all locations where there is no water source other than the Doce River. On 25 July 2022, Samarco, BHP Brasil and Vale presented their defences individually, as well as the State of Minas Gerais, the State of Espírito Santo and the Federal Government. The Court’s decision is still pending. Other claims BHP Brasil is among the companies named as defendants in a number of legal proceedings initiated by individuals, non-governmental organisations, corporations and governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The other defendants include Vale, Samarco and Fundação Renova. The lawsuits include claims for compensation, environmental reparation and violations of Brazilian environmental and other laws, among other matters. The lawsuits seek various remedies including reparation costs, compensation to injured individuals and families of the deceased, recovery of personal and property losses, moral damages and injunctive relief. In addition, government inquiries and investigations relating to the Samarco dam failure have been commenced by numerous agencies of the Brazilian government and are ongoing. Additional lawsuits and government investigations relating to the Samarco dam failure could be brought against BHP Brasil and possibly other BHP entities in Brazil or other jurisdictions. BHP insurance BHP has various third party general liability and directors and officers insurances for claims related to the Samarco dam failure made directly against BHP Brasil or other BHP entities, their directors and officers, including class actions. External insurers have been notified of the Samarco dam failure along with the third party claims and class actions referred to above. In the period since the dam failure, the Group has recognised US$573 million other income from general liability insurance proceeds relat ed As at 30 June 2022, an insurance receivable has not been recognised f o Commitments Under the terms of the Samarco joint venture agreement, BHP Brasil does not have an existing obligation to fund Samarco. BHP has agreed to fund a total of up to US$1,350 million for the Fundação Renova programs and Samarco’s working capital during calendar year 2022 . Samarco’s cash flow generation in the period was sufficient to fund its working capital and the Fundação Renova programs, as such no funding was provided by the Group in the six months to 30 June 2022 . Any additional requests for funding or future investment provided would be subject to a future decision by BHP, accounted for at that time. Samarco judicial reorganisation Samarco filed for Judicial Reorganisation (JR) in April 2021 , with the Commercial Courts of Belo Horizonte, State of Minas Gerais, Brazil (JR Court), after multiple enforcement actions taken by certain financial creditors of Samarco which threatened Samarco’s operations. The JR Court granted a stay of the enforcement actions in Brazil until 15 October 2022 . The JR is an insolvency proceeding that provides a means for Samarco to seek to restructure its financial debts and establish a sustainable financial position that allows Samarco to, among other things, continue to rebuild its operations and strengthen its ability to meet its Fundação Renova funding obligations. Samarco’s operations have continued during the JR proceeding. According to the list of creditors filed with the JR Court by the Judicial Administrators (who are in charge of a first review of the list of creditors filed by Samarco), Fundação Renova’s funding obligations undertaken by Samarco are not subject to the JR, although some financial creditors of Samarco have objected to this position. Some such creditors filed challenges to the list of creditors filed by the Judicial Administrators, in order to, among other things, prevent Samarco from funding Fundação Renova. In December 2021 , the 12 th Federal Court granted BHP Brasil’s request that Samarco be able to fund Fundação Renova obligations, overturning a temporary injunction against such funding previously granted by the State Court in October 2021 . BHP Brasil also obtained a preliminary injunction from the Superior Court supporting the jurisdiction of the 12 th Federal Court, and not the State Court, in this matter. An appeal against this ruling by certain financial creditors is still to be ruled upon. Samarco has, with the support of BHP Brasil and Vale, continued to meet its Fundação Renova funding obligations. In April 2022 , Samarco presented a restructure proposal for voting at a meeting of its creditors under the JR proceeding, which was rejected by certain of the Samarco financial creditors. Certain Samarco creditors, including a group of financial creditors and Samarco’s employee unions then proposed alternative restructure proposals. Samarco, BHP Brasil and Vale subsequently each filed objections with the JR Court to both the voting process regarding the rejection of the Samarco proposal and the restructure proposal filed by a group of financial creditors. These legal disputes, and others in the JR process, have yet to be ruled on by the JR Court. It is expected that there will be continuing litigation from creditors against Samarco and its shareholders over the course of the JR proceeding, including with respect to the treatment of Samarco’s Fundação Renova-related obligations and attempts to pierce Samarco’s corporate veil to hold BHP Brasil and Vale liable for Samarco’s debts. The duration and outcome of the JR remains uncertain with the potential for protracted litigation and appeals because, among other things, the Samarco JR is occurring under new and untested Brazilian bankruptcy legislation. While the JR is not expected to affect Samarco’s obligation or commitment to make full redress for the 2015 Fundão dam failure, and is not expected to impact Fundação Renova’s ability to undertake that remediation and compensation, it is not possible to determine the outcomes of the JR or reliably estimate any impact that the reorganisation may have for BHP Brasil, including its share of the Samarco dam failure provisions. The following section includes disclosure required by IFRS of Samarco’s provisions, contingencies and other matters arising from the dam failure for matters in addition to the above-mentioned claims to which Samarco is a party. Samarco Dam failure related provisions and contingencies In addition to its obligations under the Framework Agreement as at 30 June 2022, Samarco has recognised provisions of US$0.3 billion (30 June 2021: US$0.2 billion), based on currently available information. The magnitude, scope and timing of these additional costs are subject to a high degree of uncertainty and Samarco has indicated that it anticipates that it will incur future costs beyond those provided. These uncertainties are likely to continue for a significant period and changes to key assumptions could result in a material change to the amount of the provision in future reporting periods. Any such unrecognised obligations are therefore contingent liabilities and, at present, it is not practicable to estimate their magnitude or possible timing of payment. Accordingly, it is also not possible to provide a range of possible outcomes or a reliable estimate of total potential future exposures at this time. Samarco is also named as a defendant in a number of other legal proceedings initiated by individuals, non-governmental organisations, corporations and governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The lawsuits include claims for compensation, environmental rehabilitation and violations of Brazilian environmental and other laws, among other matters. The lawsuits seek various remedies including rehabilitation costs, compensation to injured individuals and families of the deceased, recovery of personal and property losses, moral damages and injunctive relief. In addition, government inquiries and investigations relating to the Samarco dam failure have been commenced by numerous agencies of the Brazilian government and are ongoing. Given the status of proceedings it is not possible to provide a range of possible outcomes or a reliable estimate of total potential future exposures to Samarco. Additional lawsuits and government investigations relating to the Samarco dam failure could be brought against Samarco. Samarco insurance Samarco has standalone insurance policies in place with Brazilian and global insurers. Insurers’ loss adjusters or claims representatives continue to investigate and assist with the claims process for matters not yet settled. As at 30 June 2022, an insurance receivable has not been recognised by Samarco in respect of ongoing matters. Samarco commitments At 30 June 2022, Samarco has commitments of US$0.7 billion (30 June 2021: US$0.7 billion). Following the dam failure Samarco invoked force majeure clauses in a number of long-term contracts with suppliers and service providers to suspend contractual obligations. Samarco non-dam failure related contingent liabilities The following non-dam failure related contingent liabilities pre-date and are unrelated to the Samarco dam failure. Samarco is currently contesting both of these matters in the Brazilian courts. Given the status of these tax matters, the timing of resolution and potential economic outflow for Samarco is uncertain. Brazilian Social Contribution Levy Samarco has received tax assessments for the alleged non-payment of Brazilian Social Contribution Levy for the calendar years 2007-2014 totalling approximately R$6.2 billion (approximately US$1.2 billion). Brazilian corporate income tax rate Samarco has received tax assessments for alleged incorrect calculation of Corporate Income Tax (IRPJ) in respect of the 2000-2003 and 2007-2014 income years totalling approximately R$4.8 billion (approximately US$0.9 billion). |
Provision for dividends and other liabilities [member] | |
Statement [Line Items] | |
Provisions | 19 Provisions for dividends and other liabilities The disclosure below excludes closure and rehabilitation provisions (refer to note 15 ‘Closure and rehabilitation provisions’), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 26 ‘Employee benefits, restructuring and post-retirement employee benefits provisions’) and provisions related to the Samarco dam failure (refer to note 4 ‘Significant events – Samarco dam failure’). 2022 2021 US$M US$M Movement in provision for dividends and other liabilities At the beginning of the financial year 581 1,240 Dividends determined 17,720 7,894 Charge/(credit) for the year: Underlying 493 260 Discounting 1 2 Exchange variations 122 20 Released during the year (48 ) (43 ) Utilisation (96 ) (267 ) Dividends paid (17,851 ) (7,901 ) Divestment and demerger of subsidiaries and operations (146 ) – Transfers and other movements (102 ) (624 ) At the end of the financial year 674 581 Comprising: Current 356 293 Non-current 318 288 |
Expenses and other income
Expenses and other income | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Expenses and other income | 5 Expenses and other income 2022 2021 2020 US$M US$M Restated US$M Restated Employee benefits expense: Wages, salaries and redundancies 4,197 4,018 3,318 Employee share awards 109 88 90 Social security costs 4 3 2 Pension and other post-retirement obligations 338 274 246 Less employee benefits expense classified as exploration and evaluation expenditure (30 ) (26 ) (15 ) Changes in inventories of finished goods and work in progress (774 ) (321 ) (348 ) Raw materials and consumables used 5,991 4,899 5,472 Freight and transportation 2,319 1,900 1,838 External services 4,525 4,640 3,899 Third-party commodity purchases 2,959 2,220 1,098 Net foreign exchange (gains)/losses (326 ) 293 (617 ) Fair value change on derivatives 1 (29 ) 87 393 Government royalties paid and payable 4,014 3,080 2,171 Exploration and evaluation expenditure incurred and expensed in the current period 199 134 123 Depreciation and amortisation expense 5,683 5,084 4,667 Net impairments: Property, plant and equipment 515 2,474 482 Goodwill and other intangible assets – 33 – All other operating expenses 2,677 1,991 2,634 Total expenses 32,371 30,871 25,453 Insurance recoveries 2 (4 ) (46 ) (489 ) (Gain)/loss on disposal of subsidiaries and operations 3 (840 ) 2 – Dividend income 4 (241 ) (2 ) (2 ) Other income 5 (313 ) (334 ) (229 ) Total other income (1,398 ) (380 ) (720 ) 1 Fair value change on derivatives is principally related to commodity price contracts, foreign exchange contracts and embedded derivatives used in the ordinary course of business as well as derivatives used as part of the funding of dividends. 2 Insurance recoveries is principally related to claims received from Samarco dam failure. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. 3 Mainly relates to the divestment of BMC in FY2022. Refer to note 3 ‘Exceptional items’ for further information. 4 During FY2022, the Group received dividends of US$238 million from Cerrejón, which reduced completion proceeds net of transaction costs to US$50 million. Refer to note 29 ‘Investments accounted for using the equity method’ for details. 5 Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include certain management fees from non-controlling interests and joint arrangements, royalties and commission income. Recognition and measurement Other income is recognised when it is probable that the economic benefits associated with a transaction will flow to the Group and can be reliably measured. Dividend income is recognised upon declaration. |
Income tax expense
Income tax expense | 12 Months Ended |
Jun. 30, 2022 | |
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Income tax expense | 6 Income tax expense 2022 2021 2020 US$M US$M US$M Restated Restated Total taxation expense comprises: Current tax expense 10,673 9,018 4,285 Deferred tax expense/(benefit) 64 1,598 (88 ) 10,737 10,616 4,197 2022 2021 2020 US$M US$M US$M Restated Restated Factors affecting income tax expense for the year Income tax expense differs to the standard rate of corporation tax as follows: Profit before taxation 33,137 24,292 12,825 Tax on profit at Australian prima facie tax rate of 30 per cent 9,941 7,288 3,847 Non-tax effected operating losses and capital gains 1 1,087 2,640 409 Tax on remitted and unremitted foreign earnings 441 485 225 Investment and development allowance – – (99 ) Tax rate changes – (1 ) (8 ) Recognition of previously unrecognised tax assets (3 ) (28 ) (7 ) Tax effect of loss from equity accounted investments, related impairments and expenses 2 (19 ) 315 153 Amounts (over)/under provided in prior years (80 ) (57 ) 13 Foreign exchange adjustments (233 ) (33 ) 41 Impact of tax rates applicable outside of Australia (801 ) (669 ) (272 ) Other 97 436 (86 ) Income tax expense 10,430 10,376 4,216 Royalty-related taxation (net of income tax benefit) 307 240 (19 ) Total taxation expense 10,737 10,616 4,197 1 Includes the tax impacts related to the exceptional impairments of US deferred tax assets in the year ended 30 June 2022 , 2 The loss from equity accounted investments, related impairments and expenses is net of income tax, with the exception of the Samarco forward exchange derivatives described in note 4 ‘Significant events – Samarco dam failure’. This item removes the prima facie tax effect on such loss, related impairments and expenses, excluding the impact of the Samarco forward exchange derivatives which are taxable. Income tax recognised in other comprehensive income is as follows: 2022 2021 2020 US$M US$M US$M Income tax effect of: Items that may be reclassified subsequently to the income statement Hedges: Gains/(losses) taken to equity 274 (259 ) 94 (Gains)/losses transferred to the income statement (264 ) 252 (89 ) Others – (1 ) – Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement 10 (8 ) 5 Items that will not be reclassified to the income statement: Remeasurement gains/(losses) on pension and medical schemes (9 ) (21 ) 25 Others – 1 1 Income tax (charge)/credit relating to items that will not be reclassified (9 ) (20 ) 26 Total income tax credit/(charge) relating to components of other comprehensive income 1 1 (28 ) 31 1 Included within total income tax relating to components of other comprehensive income is US$1 million relating to deferred taxes and US$ nil relating to current taxes (2021: US$(28) million and US$ nil; 2020: US$31 million and US$ nil Recognition and measurement Taxation on the profit/(loss) for the year comprises current and deferred tax. Taxation is recognised in the income statement except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case the tax effect is also recognised in equity or other comprehensive income. Current tax Deferred tax Royalty-related taxation Current tax is the expected tax on the taxable income for the year, using tax rates and laws enacted or substantively enacted at the reporting date, and any adjustments to tax payable in respect of previous years. Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for in accordance with IAS 12. Deferred tax is generally provided on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax is not recognised for temporary differences relating to: • initial recognition of goodwill • initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit • investment in subsidiaries, associates and jointly controlled entities where the Group is able to control the timing of the reversal of the temporary difference and it is probable that they will not reverse in the foreseeable future Deferred tax is measured at the tax rates that are expected to be applied when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted at the reporting date. Current and deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset and when the tax balances are related to taxes levied by the same tax authority and the Group intends to settle on a net basis, or realise the asset and settle the liability simultaneously. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Royalties are treated as taxation arrangements (impacting income tax expense/(benefit)) when they are imposed under government authority and the amount payable is calculated by reference to revenue derived (net of any allowable deductions) after adjustment for temporary differences. Obligations arising from royalty arrangements that do not satisfy these criteria are recognised as current liabilities and included in expenses. Uncertain tax and royalty matters The Group operates across many tax jurisdictions. Application of tax law can be complex and requires judgement to assess risk and estimate outcomes, particularly in relation to the Group’s cross-border operations and transactions. These judgements are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact the amount of tax assets and tax liabilities, including deferred tax, recognised on the balance sheet and the amount of other tax losses and temporary differences not yet recognised. The evaluation of tax risks considers both amended assessments received and potential sources of challenge from tax authorities. The status of proceedings for these matters will impact the ability to determine the potential exposure and in some cases, it may not be possible to determine a range of possible outcomes or a reliable estimate of the potential exposure. The Group has unresolved tax and royalty matters for which the timing of resolution and potential economic outflow are uncertain. Tax and royalty matters with uncertain outcomes arise in the normal course of business and occur due to changes in tax law, changes in interpretation of tax law, periodic challenges and disagreements with tax authorities and legal proceedings. Tax and royalty obligations assessed as having probable future economic outflows capable of reliable measurement are provided for as at 30 June 2022. Matters with a possible economic outflow and/or presently incapable of being measured reliably are contingent liabilities and disclosed in note 32 ‘Contingent liabilities’. Details of uncertain tax and royalty matters relating to Samarco are disclosed in note 4 ‘Significant events – Samarco dam failure’. Key judgements and estimates Income tax classification Judgements Deferred tax Judgements: Estimates: |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 30, 2022 | |
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Earnings per share | 7 Earnings per share 2022 2021 2020 Restated Restated Earnings attributable to BHP shareholders (US$M) - Continuing operations 20,245 11,529 7,848 - Total 30,900 11,304 7,956 Weighted average number of shares (Million) - Basic 5,061 5,057 5,057 - Diluted 5,071 5,068 5,069 Basic earnings per ordinary share (US cents) - Continuing operations 400.0 228.0 155.2 - Total 610.6 223.5 157.3 Diluted earnings per ordinary share (US cents) - Continuing operations 399.2 227.5 154.8 - Total 609.3 223.0 157.0 Headline earnings per ordinary share (US cents) - Basic 439.0 284.8 171.1 - Diluted 438.1 284.2 170.7 Refer to note 27 ‘Discontinued operations’ for basic earnings per share and diluted earnings per share for Discontinued operations. Earnings on American Depositary Shares represent twice the earnings Headline earnings is a Johannesburg Stock Exchange defined performance measure and is reconciled from earnings attributable to ordinary shareholders as follows: 2022 2021 2020 US$M US$M US$M Earnings attributable to BHP shareholders 30,900 11,304 7,956 Adjusted for: (Gain)/loss on sales of PP&E, Investments and Operations 1 (95 ) (50 ) 4 Impairments of property, plant and equipment, financial assets and intangibles 515 2,633 494 Samarco impairment expense – 111 95 Cerrejón impairment expense – 466 – Gain on disposal of BHP Mitsui Coal (840 ) – – Gain on merger of Petroleum (8,167 ) – – Other 2 – – 48 Tax effect of above adjustments (97 ) (60 ) 54 Subtotal of adjustments (8,684 ) 3,100 695 Headline earnings 22,216 14,404 8,651 Diluted headline earnings 22,216 14,404 8,651 1 Included in other income. 2 Mainly represent BHP share of impairment embedded in the statutory income statement of the Group’s equity accounted investments. Recognition and measurement Diluted earnings attributable to BHP shareholders are equal to the earnings attributable to BHP shareholders. Prior to Group’s corporate structure unification, the calculation of the number of ordinary shares used in the computation of basic earnings per share was the aggregate of the weighted average number of ordinary shares of BHP Group Limited and BHP Group Plc outstanding during the period after deduction of the number of shares held by the Billiton Employee Share Ownership Trust and the BHP Billiton Limited Employee Equity Trust. Effective from 31 January 2022, the aggregate of the weighted average number of ordinary shares of only BHP Group Limited is considered in the computation of basic earnings per share. Refer to note 16 ‘Share capital’ for details on unification. For the purposes of calculating diluted earnings per share, the effect of 10 At 30 June 2022, there are no instruments which are considered antidilutive (2021: nil; 2020: nil). |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Jun. 30, 2022 | |
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Trade and other receivables | 8 Trade and other receivables 2022 2021 US$M US$M Trade receivables 4,411 4,450 Other receivables 1 1,168 1,946 Total 5,579 6,396 Comprising: Current 5,426 6,059 Non-current 153 337 1 Other receivables mainly relate to indirect tax refunds and receivables from joint venture partners. Recognition and measurement Trade receivables are recognised initially at their transaction price or, for those receivables containing a significant financing component, at fair value. Trade receivables are subsequently measured at amortised cost using the effective interest method, less an allowance for impairment, except for provisionally priced receivables which are subsequently measured at fair value through profit or loss under IFRS 9. The collectability of trade and other receivables is assessed continuously. At the reporting date, specific allowances are made for any expected credit losses based on a review of all outstanding amounts at reporting period-end. Individual receivables are written off when management deems them unrecoverable. The net carrying amount of trade and other receivables approximates their fair values. Credit risk Trade receivables generally have terms of less than 30 days. The Group has no material concentration of credit risk with any single counterparty and is not dominantly exposed to any individual industry. Credit risk can arise from the non-performance by counterparties of their contractual financial obligations towards the Group. To manage credit risk, the Group maintains Group-wide procedures covering the application for credit approvals, granting and renewal of counterparty limits, proactive monitoring of exposures against these limits and requirements triggering secured payment terms. As part of these processes, the credit exposures with all counterparties are regularly monitored and assessed on a timely basis. The credit quality of the Group’s customers is reviewed and the solvency of each debtor and their ability to pay the receivable is considered in assessing receivables for impairment. The 10 largest customers represented 34 per cent (2021: 31 per cent) of total credit risk exposures managed by the Group. Receivables are deemed to be past due or impaired in accordance with the Group’s terms and conditions. These terms and conditions are determined on a case-by-case basis with reference to the customer’s credit quality, payment performance and prevailing market conditions. As at 30 June 2022, trade receivables of US$103 million (2021: US$68 million) were past due but not impaired. The majority of these receivables were less than 30 days overdue. At 30 June 2022, trade receivables are stated net of provisions for expected credit losses of US$3 million (2021: US$3 million) . |
Trade and other payables
Trade and other payables | 12 Months Ended |
Jun. 30, 2022 | |
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Trade and other payables | 9 Trade and other payables 2022 2021 US$M US$M Trade payables 5,360 5,079 Other payables 1,327 1,948 Total 6,687 7,027 Comprising: Current 6,687 7,027 Non-current – – |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2022 | |
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Inventories | 10 Inventories 2022 2021 Definitions US$M US$M Raw materials and consumables 1,713 1,904 Spares, consumables and other supplies yet to be utilised in the production process or in the rendering of services. Work in progress 3,827 3,046 Commodities currently in the production process that require further processing by the Group to a saleable form. Finished goods 710 834 Commodities ready-for-sale and not requiring further processing by the Group. Total 1 6,250 5,784 Comprising: Inve n classified as non-current are not expected to b e utilised Current 4,935 4,426 or sold within 12 months after the reporting date or within the Non-current 1,315 1,358 operating cyc le o f the business. 1 Inventory write-downs of US$163 million were recognised during the year (2021: US$58 million; 2020: US$37 million). Inventory write-downs of US$23 million made in previous periods wer e Recognition and measurement Regardless of the type of inventory and its stage in the production process, inventories are valued at the lower of cost and net realisable value. Cost is determined primarily on the basis of average costs and involves estimates of expected metal recoveries and work in progress volumes, calculated using available industry, engineering and scientific data. These estimates are periodically reassessed by the Group taking into account technical analysis and historical performance. For processed inventories, cost is derived on an absorption costing basis. Cost comprises costs of purchasing raw materials and costs of production, including attributable mining and manufacturing overheads taking into consideration normal operating capacity. Inventory quantities are assessed primarily through surveys and assays. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Jun. 30, 2022 | |
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Property, plant and equipment | 11 Property, plant and equipment Land and Plant and Other Assets under Exploration Total US$M US$M US$M US$M US$M US$M Net book value – 30 June 2022 At the beginning of the financial year 8,072 44,682 8,941 10,432 1,686 73,813 Additions 1 41 1,935 792 5,872 137 8,777 Remeasurements of index-linked freight contracts 2 – (369 ) – – – (369 ) Depreciation for the year (663 ) (5,564 ) (276 ) – – (6,503 ) Impairments for the year 3 (14 ) (499 ) (2 ) – – (515 ) Disposals (3 ) (22 ) – – – (25 ) Divestment and demerger of subsidiaries and operations 4 (448 ) (8,007 ) (545 ) (3,549 ) (842 ) (13,391 ) Transfers and other movements 1,094 3,344 (416 ) (3,724 ) (790 ) (492 ) At the end of the financial year 5 8,079 35,500 8,494 9,031 191 61,295 – Cost 14,823 81,218 14,353 9,755 981 121,130 – Accumulated depreciation and impairments (6,744 ) (45,718 ) (5,859 ) (724 ) (790 ) (59,835 ) Net book value – 30 June 2021 At the beginning of the financial year 8,387 39,429 8,652 13,774 2,120 72,362 Additions 1 25 3,841 797 5,961 93 10,717 Acquisition of subsidiaries & operations 6 – 151 491 – – 642 Remeasurements of index-linked freight contracts 2 – (59 ) – – – (59 ) Depreciation for the year (694 ) (5,748 ) (310 ) – – (6,752 ) Impairments for the year 3 (208 ) (877 ) (687 ) (745 ) (66 ) (2,583 ) Disposals (18 ) (9 ) – – – (27 ) Divestment and demerger of subsidiaries and operations – (14 ) – (2 ) – (16 ) Transfers and other movements 580 7,968 (2 ) (8,556 ) (461 ) (471 ) At the end of the financial year 5 8,072 44,682 8,941 10,432 1,686 73,813 – Cost 14,545 108,049 15,059 11,177 2,531 151,361 – Accumulated depreciation and impairments (6,473 ) (63,367 ) (6,118 ) (745 ) (845 ) (77,548 ) 1 Includes change in estimates and net foreign exchange gains/(losses) related to the closure and rehabilitation provisions for operating sites. Refer to note 15 ‘Closure and rehabilitation provisions’. 2 Relates to remeasurements of index-linked freight contracts including continuous voyage charters (CVCs). Refer to note 21 ‘Leases’. 3 Refer to note 13 ‘Impairment of non-current assets’ for information on impairments. 4 BMC and Petroleum were disposed in May 2022 and June 2022 respectively. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. 5 Includes the carrying value of the Group’s right-of-use assets relating to land and buildings and plant and equipment of US$2,361 million (2021: US$3,350 million). Refer to note 21 ‘Leases’ for the movement of the right-of-use assets. 6 Relates to the acquisition of an additional 28 per cent working interest in Shenzi. Recognition and measurement Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation and impairment charges. Cost is the fair value of consideration given to acquire the asset at the time of its acquisition or construction and includes the direct costs of bringing the asset to the location and the condition necessary for operation and the estimated future costs of closure and rehabilitation of the facility. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. Refer to note 21 ‘Leases’ for further details. Right-of-use assets are presented within the category of property, plant and equipment according to the nature of the underlying asset leased. Exploration and evaluation Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess the technical feasibility and commercial viability of resources found. Exploration and evaluation expenditure is charged to the income statement as incurred, except in the following circumstances in which case the expenditure may be capitalised: • the exploration and evaluation activity is within an area of interest that was previously acquired as an asset acquisition or in a business combination and measured at fair value on acquisition or • the existence of a commercially viable mineral deposit has been established A regular review of each area of interest is undertaken to determine the appropriateness of continuing to carry forward costs in relation to that area. Capitalised costs are only carried forward to the extent that they are expected to be recovered through the successful exploitation of the area of interest or alternatively by its sale. To the extent that capitalised expenditure is no longer expected to be recovered, it is charged to the income statement. Development expenditure When proven mineral reserves are determined and development is sanctioned, capitalised exploration and evaluation expenditure is reclassified as assets under construction within property, plant and equipment. All subsequent development expenditure is capitalised and classified as assets under construction, provided commercial viability conditions continue to be satisfied. The Group may use funds sourced from external parties to finance the acquisition and development of assets and operations. Finance costs are expensed as incurred, except where they relate to the financing of construction or development of qualifying assets. Borrowing costs directly attributable to acquiring or constructing a qualifying asset are capitalised during the development phase. Development expenditure is net of proceeds from the saleable material extracted during the development phase. On completion of development, all assets included in assets under construction are reclassified as either plant and equipment or other mineral assets and depreciation commences. Other mineral assets Other mineral assets comprise: • capitalised exploration, evaluation and development expenditure for assets in production • mineral rights acquired • capitalised development and production stripping costs Overburden removal costs The process of removing overburden and other waste materials to access mineral deposits is referred to as stripping. Stripping is necessary to obtain access to mineral deposits and occurs throughout the life of an open-pit mine. Development and production stripping costs are classified as other mineral assets in property, plant and equipment. Stripping costs are accounted for separately for individual components of an ore body. The determination of components is dependent on the mine plan and other factors, including the size, shape and geotechnical aspects of an ore body. The Group accounts for stripping activities as follows: Development stripping costs These are initial overburden removal costs incurred to obtain access to mineral deposits that will be commercially produced. These costs are capitalised when it is probable that future economic benefits (access to mineral ores) will flow to the Group and costs can be measured reliably. Once the production phase begins, capitalised development stripping costs are depreciated using the units of production method based on the proven and probable reserves of the relevant identified component of the ore body which the initial stripping activity benefits. Production stripping costs These are post initial overburden removal costs incurred during the normal course of production activity, which commences after the first saleable minerals have been extracted from the component. Production stripping costs can give rise to two benefits, the accounting for which is outlined below: Production stripping activity Benefits of stripping activity Extraction of ore (inventory) in current period. Improved access to future ore extraction. Period benefited Current period Future period(s) Recognition and measurement criteria When the benefits of stripping activities are realised in the form of inventory produced; the associated costs are recorded in accordance with the Group’s inventory accounting policy. When the benefits of stripping activities are improved access to future ore; production costs are capitalised when all the following criteria are met: • the production stripping activity improves access to a specific component of the ore body and it is probable that economic benefits arising from the improved access to future ore production will be realised • the component of the ore body for which access has been improved can be identified • costs associated with that component can be measured reliably Allocation of costs Production stripping costs are allocated between the inventory produced and the production stripping asset using a life-of-component waste-to-ore (or mineral contained) strip ratio. When the current strip ratio is greater than the estimated life-of-component ratio a portion of the stripping costs is capitalised to the production stripping asset. Asset recognised from stripping activity Inventory Other mineral assets within property, plant and equipment. Depreciation basis Not applicable On a component-by-component basis using the units of production method based on proven and probable reserves. Key judgements and estimates Judgements: Estimates: Depreciation Depreciation of assets, other than land, assets under construction and capitalised exploration and evaluation that are not depreciated, is calculated using either the straight-line (SL) method or units of production (UoP) method, net of residual values, over the estimated useful lives of specific assets. The depreciation method and rates applied to specific assets reflect the pattern in which the asset’s benefits are expected to be used by the Group. The Group’s proved reserves for petroleum assets and proved and probable reserves for minerals assets are used to determine UoP depreciation unless doing so results in depreciation charges that do not reflect the asset’s useful life. Where this occurs, alternative approaches to determining reserves are applied, such as using management’s expectations of future oil and gas prices rather than yearly average prices, to provide a phasing of periodic depreciation charges that better reflects the asset’s expected useful life. Where assets are dedicated to a mine or petroleum lease, the useful lives below are subject to the lesser of the asset category’s useful life and the life of the mine or petroleum lease, unless those assets are readily transferable to another productive mine or lease. Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell and therefore not depreciated. BMC and Petroleum were classified as held for sale since November 2021 and December 2021 respectively. Key estimates The determination of useful lives, residual values and depreciation methods involves estimates and assumptions and is reviewed annually. Any changes to useful lives or any other estimates or assumptions, including the expected impact of climate change and the transition to a lower carbon economy, may affect prospective depreciation rates and asset carrying values. The table below summarises the principal depreciation methods and rates applied to major asset categories by the Group. Category Buildings Plant and Mineral rights and Capitalised exploration, Typical depreciation methodology SL SL UoP UoP Depreciation rate 25-50 3-30 Based on the rate of depletion of reserves Based on the rate of depletion of reserves Commitments The Group’s commitments for capital expenditure were US$2,820 note 21 ‘Leases’. |
Intangible assets
Intangible assets | 12 Months Ended |
Jun. 30, 2022 | |
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Intangible assets | 12 Intangible assets 2022 2021 Goodwill Other Total Goodwill Other Total US$M US$M US$M US$M US$M US$M Net book value At the beginning of the financial year 1,197 240 1,437 1,197 377 1,574 Additions – 36 36 – 23 23 Amortisation for the year – (60 ) (60 ) – (93 ) (93 ) Impairments for the year 1 – – – – (52 ) (52 ) Disposals – (16 ) (16 ) – – – Divestment and demerger of subsidiaries and operations 2 – (66 ) (66 ) – – – Transfers and other movements – 38 38 – (15 ) (15 ) At the end of the financial year 1,197 172 1,369 1,197 240 1,437 – Cost 1,197 1,363 2,560 1,197 1,506 2,703 – Accumulated amortisation and impairments – (1,191 ) (1,191 ) – (1,266 ) (1,266 ) 1 Refer to note 13 ‘Impairment of non-current assets’ for information on impairments. 2 Relates to the merger of Petroleum with Woodside. Refer to note 27 ‘Discontinued operations’ for more information. Recognition and measurement Goodwill Where th e Other intangibles The Group capitalises amounts paid for the acquisition of identifiable intangible assets, such as software, licences and initial payments for the acquisition of mineral lease assets, where it is considered that they will contribute to future periods through revenue generation or reductions in cost. These assets, classified as finite life intangible assets, are carried in the balance sheet at the fair value of consideration paid (cost) less accumulated amortisation and impairment charges. Intangible assets with finite useful lives are amortised on a straight-line basis over their useful lives. The estimated useful lives are generally no greater than eight years. Initial payments for the acquisition of intangible mineral lease assets are capitalised and amortised over the term of the permit. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area. Capitalised costs are only carried forward to the extent that they are expected to be recovered through the successful exploitation of the area of interest or alternatively by its sale. To the extent that capitalised expenditure is no longer expected to be recovered, it is charged to the income statement. Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell and therefore not amortised. |
Impairment of Non-current Asset
Impairment of Non-current Assets | 12 Months Ended |
Jun. 30, 2022 | |
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Impairment of non-current assets | 13 Impairment of non-current assets 2022 Cash generating unit Segment Property, Goodwill and Equity- Total US$M US$M US$M US$M Cerro Colorado Copper 455 – – 455 Other Various 60 – – 60 Total impairment of non-current assets 515 – – 515 Reversal of impairment – – – – Net impairment of non-current assets – Continuing operations 515 – – 515 Net impairment of non-current assets – Discontinued operations – – – – Net impairment of non-current assets 515 – – 515 2021 Cash generating unit Segment Property, Goodwill and Equity- Total US$M US$M US$M US$M New South Wales Energy Coal Coal 1,025 32 – 1,057 Cerrejón Coal – – 466 466 Potash G&U 1,314 – – 1,314 Other Various 135 1 – 136 Total impairment of non-current assets 2,474 33 466 2,973 Reversal of impairment – – – – Net impairment of non-current assets – Continuing operations 2,474 33 466 2,973 Net impairment of non-current assets – Discontinued operations 109 19 – 128 Net impairment of non-current assets 2,583 52 466 3,101 Recognition and measurement Impairment tests for all non-financial assets (excluding goodwill) are performed when there is an indication of impairment. Goodwill is tested for impairment at least annually. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash generating unit (CGU) to which the asset belongs, being the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. If the carrying amount of the asset or CGU exceeds its recoverable amount, the asset or CGU is impaired and an impairment loss is charged to the income statement so as to reduce the carrying amount in the balance sheet to its recoverable amount. Previously impaired assets (excluding goodwill as impairment losses are not reversed in subsequent periods) are reviewed for possible reversal of previous impairment at each reporting date. Impairment reversal cannot exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset or CGU. Such reversal is recognised in the income statement. There were no reversals of impairment in the current or prior year. How recoverable amount is calculated The recoverable amount is the higher of an asset’s or CGU’s fair value less cost of disposal (FVLCD) and its value in use (VIU). Fair value less cost of disposal FVLCD is an estimate of the amount that a market participant would pay for an asset or CGU, less the cost of disposal. FVLCD for mineral assets is generally determined using independent market assumptions to calculate the present value of the estimated future post-tax cash flows expected to arise from the continued use of the asset, including the anticipated cash flow effects of any capital expenditure to enhance production or reduce cost, and its eventual disposal where a market participant may take a consistent view. Cash flows are discounted using an appropriate post-tax market discount rate to arrive at a net present value of the asset, which is compared against the asset’s carrying value. FVLCD may also take into consideration other market-based indicators of fair value. FVLCD are based primarily on Level 3 inputs as defined in note 23 ‘Financial risk management’ unless otherwise noted. Value in use VIU is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and its eventual disposal or closure. VIU is determined by applying assumptions specific to the Group’s continued use and cannot take into account future development. These assumptions are different to those used in calculating FVLCD and consequently the VIU calculation is likely to give a different result (usually lower) to a FVLCD calculation. Impairment of non-current assets (excluding goodwill) Impairment of non-current assets relating to the year ended 30 June 2022 are detailed below. Impairment of Cerro Colorado The Group recognised a pre-tax impairment charge of US$455 million. The impairment charge primarily relates to an increase in closure and rehabilitation provision at Cerro Colorado due to additional work required to re-profile waste dumps for closure and an increase in scope for the closure activities. Impairments of non-current assets relating to the year ended 30 June 2021 are detailed below. Impairment of New South Wales Energy Coal The Group recognised pre-tax impairment charges of US$1,057 million. The recoverable amount of negative US$300 million as at 30 June 2021 was determined using VIU methodology, applying discounted cash flow (DCF) techniques. The valuation for NSWEC was most sensitive to changes in energy coal prices, estimated future production volumes and discount rates. The valuation applied a post-tax real discount rate of 6.5 per cent. Impairment of Cerrejón The Group recognised a pre-tax impairment charge of US$466 million. The recoverable amount of US$284 million as at 30 June 2021 represented a FVLCD based on the expected net sale proceeds. Impairment of Potash assets The Group recognised a pre-tax impairment charge of US$1,314 million. The recoverable amount of US$3.3 billion as at 30 June 2021 was determined using FVLCD methodology, applying DCF techniques. The valuation was most sensitive to changes in the long-term potash price outlook and the risking applied to the future development phases of the potash resource. The valuation applied a post-tax real discount rate of 6.5 per cent. Impairment test for goodwill The carrying amount of goodwill has been allocated to the CGUs, or groups of CGUs, as follows: Cash generating unit 2022 2021 US$M US$M Olympic Dam 1,010 1,010 Other 187 187 Total goodwill 1,197 1,197 For the purpose of impairment testing, goodwill has been allocated to CGUs or groups of CGUs, that are expected to benefit from the synergies of previous business combinations, which represent the level at which management will monitor and manage goodwill. Olympic Dam goodwill Impairment test conclusion The Group performed an impairment test of the Olympic Dam CGU, including goodwill, as at 31 December 2021 and an impairment charge was not required. A goodwill impairment test was not required at 30 June 2022 as there were no indicators of impairment. How did the goodwill arise? Goodwill arose on the acquisition of WMC Resources Ltd in June 2005. Segment Olympic Dam is part of the Copper reportable segment. How were the valuations calculated? FVLCD methodology using DCF techniques has been applied in determining the recoverable amount of Olympic Dam. Significant assumptions and sensitivities The current valuation of Olympic Dam exceeds its carrying amount by approximately US$2.4 billion (2021: US$1.8 billion) and is most sensitive to changes in copper and gold commodity prices, production volumes, operating costs and discount rates. The valuation applied a post-tax real discount rate of 6.5 per cent (2021: 6 per cent). Management consider that there are no reasonably possible changes in copper and gold price forecasts, operating cost estimates or the discount rate that would, in isolation, result in the estimated recoverable amount being equal to the carrying amount. A production volume decrease of 6 per cent (2021: 4.8 per cent) across all commodities (copper, gold, silver and uranium) would, in isolation, result in the estimated recoverable amount being equal to the carrying amount. Typically, changes in any one of the aforementioned assumptions (including operating performance) would be accompanied by a change in another assumption which may have an offsetting impact. Action is usually taken to respond to adverse changes in assumptions to mitigate the impact of any such change. Key judgements and estimates that have been applied in the FVLCD valuation are disclosed further below. Other goodwill Goodwill held by other CGUs is US$187 million (2021: US$187 million). This represents less than one per cent of net assets at 30 June 2022 (2021: less than one per cent). There was no impairment of other goodwill in the year to 30 June 2022 (2021: US$ nil). Key judgements and estimates Judgements: Indicators of impairment may include changes in the Group’s operating and economic assumptions, including those arising from changes in reserves or mine planning, updates to the Group’s commodity supply, demand and price forecasts, or the possible additional impacts from emerging risks including those related to climate change and the transition to a low carbon economy. Climate change Impacts related to climate change and the transition to a low carbon economy may include: • demand for the Group’s commodities decreasing, due to policy, regulatory (including carbon pricing mechanisms), legal, technological, market or societal responses to climate change, resulting in a proportion of a CGU’s reserves becoming incapable of extraction in an economically viable fashion • physical impacts related to acute risks resulting from increased frequency or severity of extreme weather events, and those related to chronic risks resulting from longer-term changes in climate patterns The Group’s assessment of the potential impacts of climate change and the transition to a low carbon economy continues to mature. As outlined in the Basis of Preparation, where sufficiently developed, the potential financial impacts on the Group of climate change and the transition to a low carbon economy have been considered in the assessment of indicators of impairment, including: • the Group’s current assumptions relating to demand for commodities and carbon pricing, including their impact on the Group’s long-term price forecasts • the Group’s operational emissions reduction strategy Estimates: When the recoverable amount is measured by reference to FVLCD, in the absence of quoted market prices or binding sale agreement, estimates are made regarding the present value of future post-tax cash flows. These estimates are made from the perspective of a market participant and include prices, future production volumes, operating costs, capital expenditure, closure and rehabilitation costs, taxes, risking factors applied to cash flows and discount rates. The cash flow forecasts may include net cash flows expected from the extraction, processing and sale of material that does not currently qualify for inclusion in reserves. Reserves and resources are included in the assessment of FVLCD to the extent that it is considered probable that a market participant would attribute value to them. When recoverable amount is measured using VIU, estimates are made regarding the present value of future cash flows based on internal budgets and forecasts and life of asset plans. Key estimates are similar to those identified for FVLCD, although some assumptions and values may differ as they reflect the perspective of management rather than a market participant. All estimates require management judgements and assumptions and are subject to risk and uncertainty that may be beyond the control of the Group; hence, there is a possibility that changes in circumstances will materially alter projections, which may impact the recoverable amount of assets/CGUs at each reporting date. While no indicators of impairment, or impairment reversal, were identified across the Group’s CGUs at 30 June 2022, with the exception of the Cerro Colorado CGU, the carrying value of the Spence CGU is the most susceptible to changes in the significant estimates outlined below in the next reporting period. The significant estimates impacting the Group’s recoverable amount determinations are: Commodity prices Commodity prices were based on latest internal forecasts which assume short-term market prices will revert to the Group’s assessment of long-term price. These price forecasts reflect management’s long-term views of global supply and demand, built upon past experience of the commodity markets and are benchmarked with external sources of information such as analyst forecasts. Prices are adjusted based upon premiums or discounts applied to global price markers to reflect the location, nature and quality of the Group’s production, or to take into account contracted prices. Future production volumes Estimated production volumes were based on detailed data and took into account development plans established by management as part of the Group’s long-term planning process. When estimating FVLCD, assumptions reflect all reserves and resources that a market participant would consider when valuing the respective CGU, which in some cases are broader in scope than the reserves that would be used in a VIU test. In determining FVLCD, risk factors may be applied to reserves and resources which do not meet the criteria to be treated as proved. Cash outflows (including operating costs, capital expenditure, closure and rehabilitation costs and taxes) Cash outflows are based on internal budgets and forecasts and life of asset plans. Cost assumptions reflect management experience and expectations. Tax assumptions reflect existing tax and royalty regimes and rates applicable in the jurisdiction of the CGU. In the case of FVLCD, cash flow projections include the anticipated cash flow effects of any capital expenditure to enhance production or reduce cost where a market participant may take a consistent view. VIU does not take into account future development. Discount rates The Group uses real post-tax post-tax |
Deferred tax balances
Deferred tax balances | 12 Months Ended |
Jun. 30, 2022 | |
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Deferred tax balances | 14 Deferred tax balances The movement for the year in the Group’s net deferred tax position is as follows: 2022 2021 2020 US$M US$M US$M Net deferred tax (liability)/asset At the beginning of the financial year (1,402 ) (91 ) (491 ) Income tax (charge)/credit recorded in the income statement 1 (125 ) (1,325 ) 335 Income tax (charge)/credit recorded directly in equity (42 ) 42 34 Divestment and demerger of subsidiaries and operations 2 (1,439 ) – – Other movements 1 (28 ) 31 At the end of the financial year (3,007 ) (1,402 ) (91 ) 1 Includes Discontinued operations income tax (charge)/credit to the income statement of US$(61) million (2021: US$273 million; 2020: US$247 million). 2 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. For recognition and measurement refer to note 6 ‘Income tax expense’. The composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense charged/(credited) to the income statement is as follows: Deferred tax Deferred tax Charged/(credited) to 2022 2021 2022 2021 2022 2021 2020 US$M US$M US$M US$M US$M US$M US$M Type of temporary difference Depreciation 1 (526 ) (1,349 ) 4,844 4,716 554 488 1,394 Exploration expenditure 9 51 – – 13 347 51 Employee benefits 21 94 (322 ) (333 ) 20 (68 ) (38 ) Closure and rehabilitation 104 638 (1,448 ) (2,086 ) 24 (515 ) (334 ) Resource rent tax – 122 – 368 (129 ) (309 ) (119 ) Other provisions 70 108 (192 ) (227 ) 49 77 (268 ) Deferred income 51 11 (1 ) (16 ) (31 ) (31 ) 33 Deferred charges (57 ) (36 ) 584 602 7 68 (132 ) Investments, including foreign tax credits 139 147 365 671 (298 ) 414 (77 ) Foreign exchange gains and losses (13 ) (3 ) 154 133 33 63 (18 ) Tax losses 225 1,999 (307 ) (82 ) 28 678 (148 ) Lease liability 1 17 68 (594 ) (658 ) (10 ) 67 (793 ) Other 16 62 (20 ) 226 (135 ) 46 114 Total 56 1,912 3,063 3,314 125 1,325 (335 ) 1 Includes deferred tax associated with the recognition of right-of-use The amount of deferred tax assets dependent on future taxable profits not arising from the reversal of existing deferred tax liabilities, and which relate to tax jurisdictions where the taxable entity has suffered a loss in the current or preceding year, was US$18 million at 30 June 2022 (2021: US$1,675 million). The decrease from FY2021 is primarily attributable to the disposal of assets giving rise to these deferred tax assets as part of the merger of Petroleum with Woodside. For operating assets, the group assesses the recoverability of these deferred tax assets using estimates and assumptions relating to projected earnings and cash flows as applied in the Group impairment process for associated operations. Further information on the key judgements and estimates relating to the recognition of deferred tax assets is provided in note 6 ‘Income tax expense’. The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows: 2022 2021 US$M US$M Unrecognised deferred tax assets Tax losses and tax credits 1 8,462 5,944 Investments in subsidiaries 2 1,597 1,712 Deductible temporary differences relating to PRRT 3 – 2,402 Mineral rights 4 2,781 3,359 Other deductible temporary differences 5 1,777 1,630 Total unrecognised deferred tax assets 14,617 15,047 Unrecognised deferred tax liabilities Investments in subsidiaries 2 2,099 2,203 Future taxable temporary differences relating to unrecognised deferred tax asset for PRRT 3 – 720 Total unrecognised deferred tax liabilities 2,099 2,923 1 At 30 June 2022, the Group had income and capital tax losses with a tax benefit of US$5,777 million (2021: US$3,569 million) and tax credits of US$2,685 million (2021: US$2,375 million), which are not recognised as deferred tax assets, because it is not probable that future taxable profits or capital gains will be available against which the Group can utilise the benefits. The gross amount of tax losses carried forward that have not been recognised is as follows: Year of expiry 2022 2021 US$M US$M Income tax losses Not later than one year – 13 Later than one year and not later than two years – 5 Later than two years and not later than five years 43 105 Later than five years and not later than 10 years 248 1,449 Later than 10 years and not later than 20 years 1,290 3,347 Unlimited 4,157 4,799 5,738 9,718 Capital tax losses Not later than one year – – Later than two years and not later than five years – – Unlimited 14,173 4,238 Gross amount of tax losses not recognised 19,911 13,956 Tax effect of total losses not recognised 5,777 3,569 Of the US$2,685 million of tax credits, US$2,129 2 The Group had deferred tax assets and deferred tax liabilities associated with undistributed earnings of subsidiaries that have not been recognised because the Group is able to control the timing of the reversal of the temporary differences and it is not probable that these differences will reverse in the foreseeable future. Where the Group has undistributed earnings held by associates and joint interests, the deferred tax liability will be recognised as there is no ability to control the timing of the potential distributions. 3 The Group had unrecognised deferred tax assets relating to Australian Petroleum Resource Rent Tax (PRRT ) in FY2021. The assets giving rise to these deferred tax assets were disposed as part of the merger of Petroleum with Woodside. Refer to note 27 ‘Discontinued operations’ for more information. 4 The Group had deductible temporary differences relating to mineral rights for which deferred tax assets had not been recognised because it is not probable that future capital gains will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation. 5 The Group had other deductible temporary differences for which deferred tax assets had not been recognised because it is not probable that future taxable profits will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation. |
Closure and rehabilitation prov
Closure and rehabilitation provisions | 12 Months Ended |
Jun. 30, 2022 | |
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Closure and rehabilitation provisions | 15 Closure and rehabilitation provisions 2022 2021 US$M US$M At the beginning of the financial year 11,910 8,810 Capitalised amounts for operating sites: Change in estimate 1,579 1,974 Exchange translation (694 ) 483 Adjustments charged/(credited) to the income statement: Increases to existing and new provisions 174 564 Exchange translation (58 ) 76 Released during the year (42 ) (157 ) Other adjustments to the provision: Amortisation of discounting impacting net finance costs 554 380 Acquisition of subsidiaries and operations – 179 Divestment and demerger of subsidiaries and operations (4,477 ) (81 ) Expenditure on closure and rehabilitations activities (316 ) (321 ) Exchange variations impacting foreign currency translation reserve (3 ) 3 Other movements 62 – At the end of the financial year 8,689 11,910 Comprising: Current 475 591 Non-current 8,214 11,319 Operating sites 6,198 9,279 Closed sites 2,491 2,631 The Group is required to close and rehabilitate sites and associated facilities at the end of or, in some cases, during the course of production to a condition acceptable to the relevant authorities, as specified in licence requirements and the Group’s closure performance requirements as set out within Our Charter. The key components of closure and rehabilitation activities are: • the removal of all unwanted infrastructure associated with an operation • the return of disturbed areas to a safe, stable and self-sustaining condition, consistent with the agreed post-closure land use Recognition and measurement Provisions for closure and rehabilitation are recognised by the Group when: • it has a present legal or constructive obligation as a result of past events • it is more likely than not that an outflow of resources will be required to settle the obligation • the amount can be reliably estimated Initial recognition and measurement Subsequent measurement Closure and rehabilitation provisions are initially recognised when an environmental disturbance first occurs. The individual site provisions are an estimate of the expected value of future cash flows required to close the relevant site using current standards and techniques and taking into account risks and uncertainties. Individual site provisions are discounted to their present value using currency specific discount rates aligned to the estimated timing of cash outflows. When provisions for closure and rehabilitation are initially recognised, the corresponding cost is capitalised as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The closure and rehabilitation asset, recognised within property, plant and equipment, is depreciated over the life of the operations. The value of the provision is progressively increased over time as the effect of discounting unwinds, resulting in an expense recognised in net finance costs. The closure and rehabilitation provision is reviewed at each reporting date to assess if the estimate continues to reflect the best estimate of the obligation. If necessary, the provision is remeasured to account for factors such as: • additional disturbance during the period • revisions to estimated reserves, resources and lives of operations including any changes to expected operating lives arising from the Group’s latest assessment of the potential impacts of climate change and the transition to a low carbon economy • developments in technology • changes to regulatory requirements and environmental management strategies • changes in the estimated extent and costs of anticipated activities, including the effects of inflation and movements in foreign exchange rates • movements in interest rates affecting the discount rate applied Changes to the closure and rehabilitation estimate for operating sites are added to, or deducted from, the related asset and amortised on a prospective basis over the remaining life of the operation, generally applying the units of production method. Costs arising from unforeseen circumstances, such as the contamination caused by unplanned discharges, are recognised as an expense and liability when the event gives rise to an obligation that is probable and capable of reliable estimation. Closed sites Where future economic benefits are no longer expected to be derived through operation, changes to the associated closure and remediation costs are charged to the income statement in the period identified. This amounted to US$74 Key estimates Closure cost estimates are generally based on conceptual level studies early in the operating life of an asset with more detailed studies and planning performed as closure risks (including those related to climate change) are identified and/or as an asset, or parts thereof, near closure. As such, the recognition and measurement of closure and rehabilitation provisions requires the use of significant estimates and assumptions, including, but not limited to: • the extent (due to legal or constructive obligations) of potential activities required for the removal of infrastructure, decharacterisation of tailings storage facilities and rehabilitation activities • costs associated with future closure activities • the extent and period of post-closure monitoring and maintenance, including water management • applicable discount rates • the timing of cash flows and ultimate closure of operations The extent, cost and timing of future closure activities may also be impacted by the potential physical impacts of climate change. In estimating the potential cost of closure activities, the Group considers factors such as long-term weather outlooks, for example forecast changes in rainfall patterns. Closure cost estimates also consider the impact of the Group’s energy transition strategy on the costs and timing of performing closure activities and the impact of new technology when appropriately developed and tested. For example, closure cost estimates largely continue to reflect the use of existing fuel sources for the Group’s equipment while the Group continues to invest in the development of alternative fuel sources and fleet electrification. Estimates for post-closure monitoring and maintenance reflect the Group’s strategies for individual sites, which may include possible relinquishment. The period of monitoring and maintenance included in the provision requires judgement and considers regulatory and licencing requirements, the outcomes of studies and management’s current assessment of stakeholder expectations. As post-closure monitoring and maintenance may be required for significant periods beyond the completion of other closure activities, it is exposed to the potential long-term impacts of climate change, particularly changes in rainfall patterns. While reflecting management’s current best estimate, the cost of post-closure monitoring and maintenance may change in future reporting periods as the understanding of, and potential long-term impacts from, climate change continue to evolve. While progressive closure is performed across a number of operations, significant activities are generally undertaken at the end of the production life at the individual sites, the estimated timing of which is informed by the Group’s current assumptions relating to demand for commodities and carbon pricing, and their impact on the Group’s long-term price forecasts. Remaining production lives range from 2-104 years : 3-91 years). Given the generally shorter remaining operational lives of the Group’s previously held Petroleum assets, the average remaining production life for all operating sites, weighted by current closure provision, has increased to approximately : ). The discount rates applied to the Group’s closure and rehabilitation provisions are determined by reference to the currency of the closure cash flows, the period over which the cash flows will be incurred and prevailing market interest rates (where available). The Group continues to monitor current market conditions with no change made to the Group’s discount rates in the current year. The increase in closure and rehabilitation provisions relating to continuing operating sites reflects updates to the expected cost and timing of closure activities across the Group’s portfolio, with the most significant increases in the year ended 30 June 2022 being at BHP Mitsubishi Alliance (BMA) and Cerro Colorado. For BMA, the increase largely reflects a preliminary assessment of the potential impacts on BMA mine lives resulting from: • the significant increase in coal royalties applicable in Queensland from 1 July 2022 • consideration of the Group’s long term outlook for metallurgical coal commodity prices, which reflects a range of drivers of commodity demand and supply, for example, the latest climate-related announcements from key market countries These factors have resulted in the Group recognising that the end of operations at BMA sites may be earlier than previously anticipated. The best estimate of the impact on the estimated closure cash flows and their timing, and therefore the discounting of the provision, contributed to an increase in the provision, and associated rehabilitation asset, of approximately US$750 million. Given the timing of the announcement of the change to the Queensland coal royalty regime and the preliminary nature of the assessment, further changes to the provision may arise in future reporting periods. At Cerro Colorado, additional work required to re-profile waste dumps for closure and an increase in scope for other closure activities have contributed to an increase in the closure provision of approximately US$ 400 While the closure and rehabilitation provisions reflect management’s best estimates based on current knowledge and information, further studies, trials and detailed analysis of relevant knowledge and resultant closure activities for individual assets continue to be performed throughout the life of asset. Such studies and analysis can impact the estimated costs of closure activities. Estimates can also be impacted by the emergence of new closure and rehabilitation techniques, changes in regulatory requirements and stakeholder expectations for closure (including costs associated with equitable transition), development of new technologies, risks relating to climate change and the transition to a low carbon economy, and experience at other operations. These uncertainties may result in future actual expenditure differing from the amounts currently provided for in the balance sheet. Sensitivity A 0.5 per cent increase a decrease a decrease credit a decrease increment Given the long-lived nature of the majority of the Group’s assets, the majority of final closure activities are generally not expected to occur for a significant period of time. However , a one-year acceleration in forecast cash flows of the Group’s closure and rehabilitation provisions, in isolation, would result in an increase to the provision of approximately US$ million, an increase in property, plant and equipment of US$ million in relation to operating sites and an income statement charge of US$ million in respect of closed sites. |
Share capital
Share capital | 12 Months Ended |
Jun. 30, 2022 | |
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Share capital | 16 Share capital BHP Group Limited BHP Group Plc 2022 shares 2021 2020 2022 shares 2021 2020 Share capital issued Opening number of shares 2,945,851,394 2,945,851,394 2,945,851,394 2,112,071,796 2,112,071,796 2,112,071,796 Issue of shares 4,400,000 – – – – – Corporate structure unification 2,112,071,796 – – (2,112,071,796 ) – – Purchase of shares by ESOP Trusts (8,704,669 ) (7,587,353 ) (5,975,189 ) (63,567 ) (185,054 ) (185,297 ) Employee share awards exercised following vesting 8,522,684 6,948,683 6,893,113 77,748 173,644 222,245 Movement in treasury shares under Employee Share Plans 181,985 638,670 (917,924 ) (14,181 ) 11,410 (36,948 ) Closing number of shares 5,062,323,190 2,945,851,394 2,945,851,394 – 2,112,071,796 2,112,071,796 Comprising: Shares held by the public 5,061,272,144 2,944,982,333 2,945,621,003 – 2,112,057,615 2,112,069,025 Treasury shares 1,051,046 869,061 230,391 – 14,181 2,771 Other share classes 5.5% Preference shares of £1 each – – – – 50,000 50,000 Special Voting share of no par value – 1 1 – – – Special Voting share of US$0.50 par – – – – 1 1 DLC Dividend share – 1 1 – – – During August 2021, BHP Group Limited issued 4,400,000 fully paid ordinary shares to the BHP Billiton Limited Employee Equity Trust at A$52.99 per share, to satisfy the vesting of employee share awards and related dividend equivalent entitlements under those employee share plans. On 3 September 2021, BHP Group Plc acquired by way of gift from J.P. Morgan Limited the 50,000 issued 5.5 per cent cumulative preference shares of £ 1.00 On 31 January 2022, BHP Group Plc had one Special Voting share on issue and BHP Group Limited had one Special Voting share These Share capital of BHP Group Limited at 30 June 2022 is composed of the following classes of shares: Ordinary shares fully paid Treasury shares Each fully paid ordinary share of BHP Group Limited carries the right to one vote at a meeting of the Company. Treasury shares are shares of BHP Group Limited that are held by the ESOP Trusts for the purpose of issuing shares to employees under the Group’s Employee Share Plans. Treasury shares are recognised at cost and deducted from equity, net of any income tax effects. When the treasury shares are subsequently sold or reissued, any consideration received, net of any directly attributable costs and income tax effects, is recognised as an increase in equity. Any difference between the carrying amount and the consideration, if reissued, is recognised in retained earnings. The following classes of shares existed prior to the Group’s unification on 31 January 2022: Special Voting shares Preference shares DLC Dividend share Each of BHP Group Limited and BHP Group Plc issued one Preference shares have the right to repayment of the amount paid up on the nominal value and any unpaid dividends in priority to the holders of any other class of shares in BHP Group Plc on a return of capital or winding up. The holders of preference shares have limited voting rights if payment of the preference dividends are six months or more in arrears or a resolution is passed changing the rights of the preference shareholders. The DLC Dividend share supported the Dual Listed Company (DLC) equalisation principles in place since the merger in 2001, including the requirement that ordinary shareholders of BHP Group Plc and BHP Group Limited are paid equal cash dividends per share. This share enabled efficient and flexible capital management across the DLC and was issued on 23 February 2016 at par value of US$10. |
Other equity
Other equity | 12 Months Ended |
Jun. 30, 2022 | |
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Other equity | 17 Other equity 2022 2021 2020 Recognition and measurement US$M US$M US$M Share premium account – 518 518 The share premium account represented the premium paid on the issue of BHP Group Plc shares recognised in accordance with the UK Companies Act 2006. Group’s Capital redemption reserve – 177 177 The capital redemption reserve represented the par value of BHP Group Plc Group’s Common control reserves (1,603 ) – – The common control reserve arose on unification of the Group’s corporate structure and represents the residual on consolidation between BHP Group Employee share awards reserve 174 268 246 The employee share awards reserve represents the accrued employee Once exercised, the difference between the accumulated fair value of the on-market Cash flow hedge reserve 41 100 50 The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss non-financial Cost of hedging reserve (19 ) (54 ) (23 ) The cost of hedging reserve represents the recognition of certain costs of Foreign currency translation reserve (14 ) 43 39 The foreign currency translation reserve represents exchange differences non-US Equity investments reserve (8 ) 15 16 The equity investment reserve represents the revaluation of investments in Non-controlling 1,441 1,283 1,283 The non-controlling non-controlling Total reserves 12 2,350 2,306 Summarised financial information relating to each of the Group’s subsidiaries with non-controlling 2022 2021 US$M Minera Other -group Total Minera Other Total Group share (per cent) 57.5 57.5 Current assets 2,929 2,996 Non-current 11,636 11,867 Current liabilities (2,192 ) (1,912 ) Non-current (4,762 ) (4,733 ) Net assets 7,611 8,218 Net assets attributable to NCI 3,235 574 3,809 3,493 848 4,341 Revenue 9,500 9,470 Profit after taxation 3,522 3,605 Other comprehensive income 11 27 Total comprehensive income 3,533 3,632 Profit after taxation attributable to NCI 1,497 658 2,155 1,532 615 2,147 Other comprehensive income attributable to NCI 5 – 5 11 – 11 Net operating cash flow 4,519 5,007 Net investing cash flow (860 ) (655 ) Net financing cash flow (4,029 ) (4,001 ) Dividends paid to NCI 1,760 780 2,540 1,590 537 2,127 While the Group controls Minera Escondida Limitada, the non-controlling non-controlling |
Dividends
Dividends | 12 Months Ended |
Jun. 30, 2022 | |
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Dividends | 18 Dividends Year ended 30 June 2022 Year ended Year ended Per share Total Per share Total Per share Total US cents US$M US cents US$M US cents US$M Dividends paid during the period 1 Prior year final dividend 200 10,119 5 2,779 7 3,946 Interim dividend 15 7,601 10 5,115 6 3,288 35 17,720 15 7,894 14 7,234 1 5.5 per cent dividend on 50,000 preference shares of £1 each determined and paid for financial Dividends paid during the period differs from the amount of dividends paid in the Consolidated Cash Flow Statement as a result of foreign exchange gains and losses relating to the timing of equity distributions between the record date and the payment date. Additional derivative proceeds of were received as part of the funding of the interim dividend and is disclosed in Proceeds/(settlements) of cash management related instruments in the Consolidated Cash Flow Statement. Prior to the corporate structure unification, the Dual Listed Company merger terms required that ordinary shareholders of BHP Group Limited and BHP Group Plc were paid equal cash dividends on a per share basis. Each American Depositary Share (ADS) represents two ordinary shares of BHP Group Limited. Dividends determined on each ADS represent twice the dividend determined on BHP Group Limited ordinary share. Dividends are determined after period-end year-end, 175 22 200 55 BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent. 2022 2021 2020 US$M US$M US$M Franking credits as at 30 June 7,007 14,302 10,980 Franking credits arising from the payment of current tax 2,043 1,799 471 Total franking credits available 1 9,050 16,101 11,451 1 The payment of the final 2022 dividend determined after 30 June 2022 will reduce the franking account balance by US$3,796 million. In addition to dividends paid, the Group made an in specie dividend to eligible BHP shareholders during the period by distributing the 914,768,948 Woodside shares it received as consideration for the sale of BHP Petroleum. The closing price of Woodside shares on ASX on 31 May 2022 was A$29.76. The implied value of the in specie dividend was therefore A$27.2 billion (US$19.6 billion). At this valuation, the in specie dividend was approximately A$5.38 (US$3.86), with A$2.30 (US$1.66) of franking credits being distributed, per BHP share. Further detail are detailed in note 27 ‘Discontinued operations’. |
Net debt
Net debt | 12 Months Ended |
Jun. 30, 2022 | |
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Net debt | 20 Net debt The Group seeks to maintain a strong balance sheet and deploys its capital with reference to the Capital Allocation Framework. The Group monitors capital using the net debt balance and the gearing ratio, being the ratio of net debt to net debt plus net assets. The net debt definition includes the fair value of derivative financial instruments used to hedge cash and borrowings which reflects the Group’s risk management strategy of reducing the volatility of net debt caused by fluctuations in foreign exchange and interest rates. Under IFRS 16/AASB16 ‘Leases’, vessel lease contracts are required to be remeasured at each reporting date to the prevailing freight index. While these liabilities are included in the Group interest bearing liabilities, they are excluded from the net debt calculation as they do not align with how the Group assesses net debt for decision making in relation to the Capital Allocation Framework. In addition, the freight index has historically been volatile which creates significant short-term fluctuation in these liabilities. 2022 2021 US$M Current Non-current Current Non-current Interest bearing liabilities Bank loans 397 2,075 437 1,823 Notes and debentures 1,690 9,673 1,244 13,525 Lease liabilities 519 2,057 889 3,007 Bank overdraft and short-term borrowings – – – – Other 16 1 58 – Total interest bearing liabilities 2,622 13,806 2,628 18,355 Less: Lease liability associated with index-linked freight contracts 113 161 346 679 Less: Cash and cash equivalents Cash 5,728 – 4,408 – Short-term deposits 11,508 – 10,838 – Less: Total cash and cash equivalents 17,236 – 15,246 – Less: Derivatives included in net debt Net debt management related instruments 1 (358 ) (1,330 ) 20 537 Net cash management related instruments 2 273 – 34 – Less: Total derivatives included in net debt (85 ) (1,330 ) 54 537 Net debt 333 4,121 Net assets 48,766 55,605 Gearing 0.7 % 6.9 % 1 Represents the net cross currency and interest rate swaps designated as effective hedging instruments included within current and non-current 2 Represents the net forward exchange contracts included within current and non-current Cash and short-term deposits are disclosed in the cash flow statement net of bank overdrafts and interest bearing liabilities at call. 2022 2021 2020 US$M US$M US$M Total cash and cash equivalents 17,236 15,246 13,426 Bank overdrafts and short-term borrowings – – – Total cash and cash equivalents, net of overdrafts 17,236 15,246 13,426 Cash and cash equivalents includes US$127 million (2021: US$159 million) restricted by legal or contractual arrangements. Recognition and measurement Cash and short-term deposits in the balance sheet comprise cash at bank and on hand and highly liquid cash deposits with short-term maturities that are readily convertible to known amounts of cash with insignificant risk of change in value. The Group considers that the carrying value of cash and cash equivalents approximate fair value due to their short-term to maturity. Refer to note 21 ‘Leases’ and note 23 ‘Financial risk management’ for the recognition and measurement principles for lease liabilities and other financial liabilities. Interest bearing liabilities and cash and cash equivalents include balances denominated in the following currencies: Interest bearing liabilities Cash and cash equivalents 2022 2021 2022 2021 US$M US$M US$M US$M USD 8,813 11,146 7,654 12,003 EUR 3,463 4,505 2,656 4 GBP 2,621 3,415 30 32 AUD 783 1,053 3,360 573 CAD 584 635 3,437 2,455 Other 164 229 99 179 Total 16,428 20,983 17,236 15,246 The Group enters into derivative transactions to convert the majority of its exposures above into US dollars. Further information on the Group’s risk management activities relating to these balances is provided in note 23 ‘Financial risk management’. Liquidity risk The Group’s liquidity risk arises from the possibility that it may not be able to settle or meet its obligations as they fall due and is managed as part of the portfolio risk management strategy. Operational, capital and regulatory requirements are considered in the management of liquidity risk, in conjunction with short-term and long-term forecast information. Recognising the cyclical volatility of operating cash flows, the Group has defined minimum target cash and liquidity buffers to be maintained to mitigate liquidity risk and support operations through the cycle. The Group’s strong credit profile, diversified funding sources, its minimum cash buffer and its committed credit facilities ensure that sufficient liquid funds are maintained to meet its daily cash requirements. The Group’s Moody’s credit rating has remained at A2/P-1 A/A-1 A/A-1 There were no defaults on the Group’s liabilities during the period. Counterparty risk The Group is exposed to credit risk from its financing activities, including short-term cash investments such as deposits with banks and derivative contracts. This risk is managed by Group Treasury in line with the counterparty risk framework, which aims to minimise the exposure to a counterparty and mitigate the risk of financial loss through counterparty failure. Exposure to counterparties is monitored at a Group level across all products and includes exposure with derivatives and cash investments. Investments and derivatives are only transacted with approved counterparties who have been assigned specific limits based on a quantitative credit risk model. These limits are updated at least bi-annually. Derivative fair values are inclusive of valuation adjustments that take into account both the counterparty and the Group’s risk of default. Standby arrangements and unused credit facilities The Group’s committed revolving credit facility operates as a back-stop to the Group’s uncommitted commercial paper program. The combined amount drawn under the facility or as commercial paper will not exceed US$5.5 billion. As at 30 June 2022, US$ nil commercial paper was drawn (2021: US$ nil). The facility was amended in November 2021 for IBOR transition and 2026 A commitment fee is payable on the undrawn balance and interest is payable on any drawn balance comprising a reference rate plus a margin. The agreed margins are typical for a credit facility extended to a company with the Group’s credit rating. Maturity profile of financial liabilities The maturity profile of the Group’s financial liabilities based on the undiscounted contractual amounts, taking into account the derivatives related to debt, is as follows: 2022 US$M Bank loans, debentures and other loans Expected future interest payments Derivatives related to debentures Other derivatives Obligations under lease Trade other payables 1 Total Due for payment: In one year or less or on demand 2,109 492 525 221 579 6,608 10,534 In more than one year but not more than two years 1,634 427 300 112 443 – 2,916 In more than two years but not more than five years 2,609 1,032 492 246 936 – 5,315 In more than five years 7,550 3,705 1,467 245 1,470 – 14,437 Total 13,902 5,656 2,784 824 3,428 6,608 33,202 Carrying amount 13,852 – 1,824 752 2,576 6,608 25,612 2021 US$M Bank loans, Expected Derivatives Other Obligations Trade and 1 Total Due for payment: In one year or less or on demand 1,722 729 61 149 980 6,851 10,492 In more than one year but not more than two years 2,278 661 267 80 680 – 3,966 In more than two years but not more than five years 4,062 1,492 256 240 1,397 – 7,447 In more than five years 7,801 4,136 585 317 1,842 – 14,681 Total 15,863 7,018 1,169 786 4,899 6,851 36,586 Carrying amount 17,087 – 586 690 3,896 6,851 29,110 1 Excludes input taxes of US$79 million (2021: US$176 million) included in other payables. Refer to note 9 ‘Trade and other payables’. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2022 | |
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Leases | 21 Leases Movements in the Group’s lease liabilities during the year are as follows: 2022 2021 US$M US$M At the beginning of the financial year 3,896 3,443 Additions 866 1,223 Remeasurements of index-linked freight contracts (369 ) (59 ) Lease payments 1 (1,288 ) (879 ) Foreign exchange movement (126 ) 115 Amortisation of discounting 125 109 Divestment and demerger of subsidiaries and operations 2 (492 ) – Transfers and other movements (36 ) (56 ) At the end of the financial year 2,576 3,896 Comprising: Current liabilities 519 889 Non-current 2,057 3,007 1 Includes US$39 million (2021: US$45 million) related to Discontinued operations. 2 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. A significant proportion by value of the Group’s lease contracts relate to plant facilities, office buildings and vessels. Lease terms for plant facilities and office buildings typically run for over 10 years and vessels for four The Group’s lease obligations are included in the Group’s Interest bearing liabilities and, with the exception of vessel lease contracts that are priced with reference to a freight index, form part of the Group’s net debt. The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows: Lease liability 2022 2021 US$M US$M Due for payment: In one year or less or on demand 579 980 In more than one year but not more than two years 443 680 In more than two years but not more than five years 936 1,397 In more than five years 1 1,470 1,842 Total 3,428 4,899 Carrying amount 2,576 3,896 1 Includes At 30 June 2022, commitments for leases not yet commenced based on undiscounted contractual amounts were US$928 million (2021: US$457 million). Movements in the Group’s right-of-use 2022 2021 Land and buildings Plant and equipment Total Land and Plant and Total US$M US$M US$M US$M US$M US$M Net book value At the beginning of the financial year 638 2,712 3,350 689 2,358 3,047 Additions 41 825 866 25 1,227 1,252 Remeasurements of index-linked freight contracts – (369 ) (369 ) – (59 ) (59 ) Depreciation expensed during the period (103 ) (872 ) (975 ) (111 ) (670 ) (781 ) Depreciation classified as exploration – (3 ) (3 ) – (19 ) (19 ) Impairments for the year (7 ) – (7 ) (30 ) (2 ) (32 ) Divestment and demerger of subsidiaries and operations 1 (116 ) (313 ) (429 ) – – – Transfers and other movements (1 ) (71 ) (72 ) 65 (123 ) (58 ) At the end of the financial year 452 1,909 2,361 638 2,712 3,350 – Cost 745 4,307 5,052 897 4,393 5,290 – Accumulated depreciation and impairments (293 ) (2,398 ) (2,691 ) (259 ) (1,681 ) (1,940 ) 1 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. Right-of-use Amounts recorded in the income statement and the cash flow statement for the year were: 2022 2021 2020 US$M US$M Restated US$M Restated Included within Income statement Depreciation of right-of-use 964 753 623 Profit from operations Short-term, low-value 1 847 834 637 Profit from operations Interest on lease liabilities 119 102 82 Financial expenses Cash flow statement Principal lease payments 1,130 732 632 Cash flows from financing activities Lease interest payments 119 102 82 Cash flows from operating activities 1 Relates to US$585 million of variable lease costs (2021: US$510 million; 2020: US$415 million), US$222 million of short-term lease costs (2021: US$294 million; 2020: US$201 million) and US$40 million of low-value Recognition and measurement All leases with the exception of short-term (under 12 months) and low-value right-of-use In addition to containing a lease, the Group’s contractual arrangements may include non-lease non-lease Non-lease Low-value Right-of-use The lease asset and liability associated with all index-linked freight contracts, including continuous voyage charters (CVCs), are measured at each reporting date based on the prevailing freight index (generally the Baltic C5 index). Lease costs are recognised in the income statement over the lease term in the form of depreciation on the right-of-use Where the Group is the operator of an unincorporated joint operation and all investors are parties to a lease, the Group recognises its proportionate share of the lease liability and associated right-of-use right-of-use sub-leased sub-lease) right-of-use sub-leases right-of-use right-of-use Key judgements and estimates Judgements: Where a contract includes the provision of non-lease non-lease Estimates: right-of-use The Group estimates stand-alone prices, where such prices are not readily observable, in order to allocate the contractual payments between lease and non-lease |
Net finance costs
Net finance costs | 12 Months Ended |
Jun. 30, 2022 | |
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Net finance costs | 22 Net finance costs 2022 2021 2020 US$M US$M Restated US$M Restated Financial expenses Interest expense using the effective interest rate method: Interest on bank loans, overdrafts and all other borrowings 491 607 1,093 Interest capitalised at 2.90% (2021: 2.83%; 2020: 4.14%) 1 (113 ) (204 ) (265 ) Interest on lease liabilities 119 102 82 Discounting on provisions and other liabilities 645 353 343 Other gains and losses: Fair value change on hedged loans (1,286 ) (779 ) 721 Fair value change on hedging derivatives 1,277 704 (788 ) Loss on bond repurchase 2 – 395 – Exchange variations on net debt (99 ) 99 (18 ) Other 16 13 24 Total financial expenses 1,050 1,290 1,192 Financial income Interest income (81 ) (67 ) (334 ) Net finance costs 969 1,223 858 1 Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or, where financed through general borrowings, at a capitalisation rate representing the average interest rate on such borrowings. Tax relief for capitalised interest is approximately US$34 million (2021: US$61 million; 2020: US$80 million). 2 Relates to the additional cost on settlement of two multi-currency hybrid debt repurchase programs and the unwind of the associated hedges, included in a total cash payment of US$3,402 million disclosed in repayment of interest bearing liabilities in the Consolidated Cash Flow Statement. Recognition and measurement Interest income is accrued using the effective interest rate method. Finance costs are expensed as incurred, except where they relate to the financing of construction or development of qualifying assets. |
Financial risk management
Financial risk management | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Financial risk management | 23 Financial risk management 23.1 Financial risks Financial and capital risk management strategy The financial risks arising from the Group’s operations comprise market, liquidity and credit risk. These risks arise in the normal course of business and the Group manages its exposure to them in accordance with the Group’s portfolio risk management strategy. The objective of the strategy is to support the delivery of the Group’s financial targets, while protecting its future financial security and flexibility by taking advantage of the natural diversification provided by the scale, diversity and flexibility of the Group’s operations and activities. As part of the risk management strategy, the Group monitors target gearing levels and credit rating metrics under a range of different stress test scenarios incorporating operational and macroeconomic factors. Market risk management The Group’s activities expose it to market risks associated with movements in interest rates, foreign currencies and commodity prices. Under the strategy outlined above, the Group seeks to achieve financing costs, currency impacts, input costs and commodity prices on a floating or index basis. In executing the strategy, financial instruments are potentially employed in three distinct but related activities. The following table summarises these activities and the key risk management processes: Activity Key risk management processes 1 Risk mitigation On an exception basis, hedging for the purposes of mitigating risk related to specific and significant expenditure on investments or capital projects will be executed if necessary to support the Group’s strategic objectives. Execution of transactions within approved mandates. 2 Economic hedging of commodity sales, operating costs, short-term cash deposits, other monetary items and debt instruments Where Group commodity production is sold to customers on pricing terms that deviate from the relevant index target and where a relevant derivatives market exists, financial instruments may be executed as an economic hedge to align the revenue price exposure with the index target and US dollars. Measuring and reporting the exposure in customer commodity contracts and issued debt instruments. Where debt is issued in a currency other than the US dollar and/or at a fixed interest rate, fair value and cash flow hedges may be executed to align the debt exposure with the Group’s functional currency of US dollars and/or to swap to a floating interest rate. Executing hedging derivatives to align the total group exposure to the index target. Where short-term cash deposits and other monetary items are denominated in a currency other than US dollars, derivative financial instruments may be executed to align the foreign exchange exposure to the Group’s functional currency of US dollars. Execution of transactions within approved mandates. 3 Strategic financial transactions Opportunistic transactions may be executed with financial instruments to capture value from perceived market over/under valuations. Execution of transactions within approved mandates. Primary responsibility for the identification and control of financial risks, including authorising and monitoring the use of financial instruments for the above activities and stipulating policy thereon, rests with the Financial Risk Management Committee under authority delegated by the Chief Executive Officer. Interest rate risk The Group is exposed to interest rate risk on its outstanding borrowings and short-term cash deposits from the possibility that changes in interest rates will affect future cash flows or the fair value of fixed interest rate financial instruments. Interest rate risk is managed as part of the portfolio risk management strategy. The majority of the Group’s debt is issued at fixed interest rates. The Group has entered into interest rate swaps and cross currency interest rate swaps to convert most of its fixed interest rate exposure to floating US dollar interest rate exposure. As at 30 June 2022, 80 The fair value of interest rate swaps and cross currency interest rate swaps in hedge relationships used to hedge both interest rate and foreign currency risks are shown in the valuation hierarchy in section 23.4 ‘Derivatives and hedge accounting’. Based on the net debt position as at 30 June 2022, taking into account interest rate swaps and cross currency interest rate swaps, it is estimated that a one percentage point increase in the US LIBOR interest rate will increase the Group’s equity and profit after taxation by US$29 million (2021: increase of US$7 million). This assumes the change in interest rates is effective from the beginning of the financial year and the fixed/floating mix and balances are constant over the year. Interest Rate Benchmark Reform The London Interbank Offered Rate (LIBOR) and other benchmark interest rates are being replaced by alternative risk-free rates (ARR) as part of inter-bank offer rate (IBOR) reform. Sterling LIBOR ceased to be published on 1 January 2022 and USD LIBOR will no longer be published after 30 June 2023. The Group has assessed the implication of IBOR reform and has updated various policies, systems and processes including the adoption of the International Swaps and Derivatives Association (ISDA) IBOR Fallbacks Protocol. In November 2021, the Group amended its US$5.5 billion revolving credit facility to reference ARRs. Furthermore, in March 2022 Escondida executed the Group’s first Secured Overnight Financing Rate (SOFR) linked loans. The amendments to IFRS 9/AASB 9 ‘Financial Instruments’, IFRS 7/AASB 7 ‘Financial Instruments (IFRS 7): Disclosures’ and IFRS 16/AASB 16 ‘Leases’ in relation to IBOR reform early adopted by the Group in previous periods impact the Group’s cross currency and interest rate swaps, which reference US LIBOR, and the associated hedge accounting. Refer to section 23.4 ‘Derivatives and hedge accounting’ for further information. Currency risk The US dollar is the predominant functional currency within the Group and as a result, currency exposures arise from transactions and balances in currencies other than the US dollar. The Group’s potential currency exposures comprise: • translational exposure in respect of non-functional • transactional exposure in respect of non-functional The Group’s foreign currency risk is managed as part of the portfolio risk management strategy. Translational exposure in respect of non-functional Monetary items, including financial assets and liabilities, denominated in currencies other than the functional currency of an operation are restated at the end of each reporting period to US dollar equivalents and the associated gain or loss is taken to the income statement. The exception is foreign exchange gains or losses on foreign currency denominated provisions for closure and rehabilitation at operating sites, which are capitalised in property, plant and equipment. The Group has entered into cross currency interest rate swaps and foreign exchange forwards to convert its significant foreign currency exposures in respect of monetary items into US dollars. Fluctuations in foreign exchange rates are therefore not expected to have a significant impact on equity and profit after tax. 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 2022 2021 US$M US$M AUD (3,649 ) (4,421 ) CLP (602 ) (649 ) GBP 388 535 EUR 280 366 Other 187 128 Total (3,396 ) (4,041 ) The principal non-functional one cent one penny one cent Transactional exposure in respect of non-functional Certain operating and capital expenditure is incurred in currencies other than an operation’s functional currency. To a lesser extent, certain sales revenue is earned in currencies other than the functional currency of operations and certain exchange control restrictions may require that funds be maintained in currencies other than the functional currency of the operation. These currency risks are managed as part of the portfolio risk management strategy. The Group may enter into forward exchange contracts when required under this strategy. Commodity price risk The risk associated with commodity prices is managed as part of the portfolio risk management strategy. Substantially all of the Group’s commodity production is sold on market-based index pricing terms, with derivatives used from time to time to achieve a specific outcome. Financial instruments with commodity price risk comprise forward commodity and other derivative contracts with net liabilities net assets of Provisionally priced commodity sales and purchases contracts Provisionally priced sales or purchases volumes are those for which price finalisation, referenced to the relevant index, is outstanding at the reporting date. Provisional pricing mechanisms within these sales and purchases arrangements have the character of a commodity derivative. Trade receivables or payables under these contracts are carried at fair value through profit or loss using Level 2 valuation inputs based on forecast selling prices in the quotation period. The Group’s exposure at 30 June 2022 to the impact of movements in commodity prices upon provisionally invoiced sales and purchases volumes was predominately around copper. The Group had 289 thousand tonnes of copper exposure as at 30 June 2022 (2021: 254 thousand tonnes) that was provisionally priced. The final price of these sales and purchases volumes will be determined during the first half of FY2023. A 10 per cent change in the price of copper realised on the provisionally priced sales, with all other factors held constant, would increase or decrease profit after taxation by US$162 The relationship between commodity prices and foreign currencies is complex and movements in foreign exchange rates can impact commodity prices. Liquidity risk Refer to note 20 ‘Net debt’ for details on the Group’s liquidity risk. Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily from customer receivables) and from its financing activities, including deposits with banks and financial institutions, other short-term investments, interest rate and currency derivative contracts and other financial instruments. Refer to note 8 ‘Trade and other receivables’ and note 20 ‘Net debt’ for details on the Group credit risk. 23.2 Recognition and measurement All financial assets and liabilities, other than derivatives and trade receivables, are initially recognised at the fair value of consideration paid or received, net of transaction costs as appropriate. Financial assets are initially recognised on their trade date. Financial assets are subsequently carried at fair value or amortised cost based on: • the Group’s purpose, or business model, for holding the financial asset • whether the financial asset’s contractual terms give rise to cash flows that are solely payments of principal and interest The resulting Financial Statements classifications of financial assets can be summarised as follows: Contractual cash flows Business model Category Solely principal and interest Hold in order to collect contractual cash flows Amortised cost Solely principal and interest Hold in order to collect contractual cash flows and sell Fair value through other comprehensive income Solely principal and interest Hold in order to sell Fair value through profit or loss Other Any of those mentioned above Fair value through profit or loss Solely principal and interest refers to the Group receiving returns only for the time value of money and the credit risk of the counterparty for financial assets held. The main exceptions for the Group are provisionally priced receivables and derivatives which are measured at fair value through profit or loss under IFRS 9. The Group has the intention of collecting payment directly from its customers in most cases, however the Group also participates in receivables financing programs in respect of selected customers. Receivables in these portfolios which are classified as ‘hold in order to sell’, are provisionally priced receivables and are therefore held at fair value through profit or loss prior to sale to the financial institution. With the exception of derivative contracts and provisionally priced trade payables which are carried at fair value through profit or loss, the Group’s financial liabilities are classified as subsequently measured at amortised cost. The Group may in addition elect to designate certain financial assets or liabilities at fair value through profit or loss or to apply hedge accounting where they are not mandatorily held at fair value through profit or loss. Fair value measurement The carrying amount of financial assets and liabilities measured at fair value is principally calculated based on inputs other than quoted prices that are observable for these financial assets or liabilities, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices). Where no price information is available from a quoted market source, alternative market mechanisms or recent comparable transactions, fair value is estimated based on the Group’s views on relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks implicit in such estimates. The inputs used in fair value calculations are determined by the relevant segment or function. The functions support the assets and operate under a defined set of accountabilities authorised by the Executive Leadership Team. Movements in the fair value of financial assets and liabilities may be recognised through the income statement or in other comprehensive income according to the designation of the underlying instrument. For financial assets and liabilities carried at fair value, the Group uses the following to categorise the inputs to the valuation method used based on the lowest level input that is significant to the fair value measurement as a whole: IFRS 13 Fair value hierarchy Level 1 Level 2 Level 3 Valuation inputs Based on quoted prices (unadjusted) in active markets for identical financial assets and liabilities. Based on inputs other than quoted prices included within Level 1 that are observable for the financial asset or liability, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices). Based on inputs not observable in the market using appropriate valuation models, including discounted cash flow modelling. 23.3 Financial assets and liabilities The financial assets and liabilities are presented by class in the table below at their carrying amounts. IFRS 13 1 IFRS 9 Classification 2022 US$M 2021 Current cross currency and interest rate swaps 2 2 Fair value through profit or loss – 20 Current other derivative contracts 3 2,3 Fair value through profit or loss 326 207 Current other financial assets Amortised cost 100 – Current other investments 5 1,2 Fair value through profit or loss 203 3 Non-current 2 2 Fair value through profit or loss 136 1,123 Non-current 3 2,3 Fair value through profit or loss 16 152 Non-current 4 3 Fair value through profit or loss 273 – Non-current 1,3 Fair value through other comprehensive income 138 31 Non-current 5 1,2 Fair value through profit or loss 239 304 Total other financial assets 1,431 1,840 Cash and cash equivalents Amortised cost 17,236 15,246 Trade and other receivables 6 Amortised cost 1,674 2,363 Provisionally priced trade receivables 2 Fair value through profit or loss 3,478 3,547 Total financial assets 23,819 22,996 Non-financial 71,347 85,931 Total assets 95,166 108,927 Current cross currency and interest rate swaps 2 2 Fair value through profit or loss 358 – Current other derivative contracts 3 2,3 Fair value through profit or loss 118 52 Current other financial liabilities 7 Amortised cost 103 78 Non-current 2 2 Fair value through profit or loss 1,466 586 Non-current 3 2,3 Fair value through profit or loss 31 – Non-current 7 Amortised cost 500 560 Total other financial liabilities 2,576 1,276 Trade and other payables 8 Amortised cost 5,223 6,277 Provisionally priced trade payables 2 Fair value through profit or loss 1,385 574 Bank loans 9 Amortised cost 2,472 2,260 Notes and debentures 9 Amortised cost 11,363 14,769 Lease liabilities 2,576 3,896 Other 9 Amortised cost 17 58 Total financial liabilities 25,612 29,110 Non-financial 20,788 24,212 Total liabilities 46,400 53,322 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 (which include the base LIBOR rate and swap rates) 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 other derivative contracts of US$ 4 Includes receivables contingent on outcome of future events relating to mining , 5 Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$252 mainly 6 Excludes input taxes of US$427 7 Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group’s Escondida operations. 8 Excludes input taxes of US$79 9 All interest bearing liabilities, excluding lease liabilities, are unsecured. The carrying amounts in the table above generally approximate to fair value. In the case of US$ 3,018 For financial instruments that are carried at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation at the end of each reporting period. There were no transfers between categories during the period. Offsetting financial assets and liabilities The Group enters into money market deposits and derivative transactions under International Swaps and Derivatives Association master netting agreements that do not meet the criteria in IAS 32 ‘Financial Instruments: Presentation’ for offsetting, but allow for the related amounts to be set-off 23.4 Derivatives and hedge accounting The Group uses derivatives to hedge its exposure to certain market risks and may elect to apply hedge accounting. Hedge accounting Derivatives are included within financial assets or liabilities at fair value through profit or loss unless they are designated as effective hedging instruments. Financial instruments in this category are classified as current if they are due or expected to be settled within 12 months otherwise they are classified as non-current. Where hedge accounting is applied, at the start of the transaction, the Group documents the type of hedge, the relationship between the hedging instrument and hedged items and its risk management objective and strategy for undertaking various hedge transactions. The documentation also demonstrates that the hedge is expected to be effective. The Group applies the following types of hedge accounting to its derivatives hedging the interest rate and currency risks of its notes and debentures: • Fair value hedges – the fair value gain or loss on interest rate and cross currency swaps relating to interest rate risk, together with the change in the fair value of the hedged fixed rate borrowings attributable to interest rate risk are recognised immediately in the income statement. If the hedge no longer meets the criteria for hedge accounting, the fair value adjustment on the note or debenture is amortised to the income statement over the period to maturity using a recalculated effective interest rate. • Cash flow hedges – changes in the fair value of cross currency interest rate swaps which hedge foreign currency cash flows on the notes and debentures are recognised directly in other comprehensive income and accumulated in the cash flow hedging reserve. To the extent a hedge is ineffective, changes in fair value are recognised immediately in the income statement. When a hedging instrument expires, or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is amortised to the income statement over the period to the hedged item’s maturity. When hedged, the Group hedges the full notional value of notes or debentures. However, certain components of the fair value of derivatives are not permitted under IFRS 9 to be included in the hedge accounting above. Certain costs of hedging are permitted to be recognised in other comprehensive income. Any change in the fair value of a derivative that does not qualify for hedge accounting, or is ineffective in hedging the designated risk due to contractual differences between the hedged item and hedging instrument, is recognised immediately in the income statement. 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 • The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at period-end • 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 2022 US$M Carrying Foreign Interest Recognised Recognised Recognised 1 Accrued Total Hedged 2 A B C D E F G B to G A + B + C USD 4,740 – (16 ) – – (7 ) 86 63 4,724 GBP 2,599 796 (115 ) (35 ) 13 26 42 727 3,280 EUR 3,449 585 112 (16 ) 8 (4 ) 45 730 4,146 CAD 575 167 5 (8 ) 6 (3 ) 1 168 747 Total 11,363 1,548 (14 ) (59 ) 27 12 174 1,688 12,897 Fair value of derivatives 2021 US$M Carrying Foreign Interest Recognised Recognised Recognised 1 Accrued Total Hedged 2 A B C D E F G B to G A + B + C USD 6,270 – (318 ) – – 11 77 (230 ) 5,952 GBP 3,387 435 (544 ) (81 ) 25 (34 ) 53 (146 ) 3,278 EUR 4,486 73 (418 ) (33 ) 27 7 49 (295 ) 4,141 CAD 626 142 (21 ) (28 ) 25 (2 ) (2 ) 114 747 Total 14,769 650 (1,301 ) (142 ) 77 (18 ) 177 (557 ) 14,118 1 Predominantly related to ineffectiveness. 2 Includes US$3,018 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship. The weighted average interest rate payable is USD LIBOR + 1.74 per cent (2021: USD LIBOR + 2.18 per cent). Refer to note 22 ‘Net finance costs’ for details of net finance costs for the year. Interest Rate Benchmark Reform IBOR reform impacts the Group’s cross currency and interest rate swaps, which reference 3-month 3-month US$ 15.6 billion (2021: US$ billion). The SOFR benchmark rate is being widely adopted by market participants as the replacement for US LIBOR in new contracts. However, a number of US LIBOR settings, including 3-month The following table shows the notional value of the Group’s hedging instruments that are expected to expire before 30 June 2023. Hedging instrument Notional Notional value US$M Notional value to mature before US$M Interest rate swaps USD 10,719 748 Cross-currency interest rate swaps EUR 3,187 404 GBP 1,673 923 Total 15,579 2,075 In addition, the Group has other arrangements which reference 3-month 2.3 billion). Refer to note 20 ‘Net debt’. The Group has previously adopted amendments to IFRS 9 and IFRS 7 in relation to IBOR Reform. These amendments provide reliefs from applying specific hedge accounting requirements to hedging arrangements directly impacted by these reforms. In particular, where changes to the Group’s instruments arise solely as a result of IBOR reform and do not change the economic substance of the Group’s arrangements, the Group is able to maintain its existing hedge relationships and accounting. The Group has continued to apply these reliefs, resulting in no impact on the Group’s hedge accounting. Upon transition to alternative risk-free rates, the Group will seek to apply further reliefs in IFRS 9 and continue to apply hedge accounting to its hedging arrangements. Movements in reserves relating to hedge accounting 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 17 2022 US$M Cash flow hedging Cost of hedging Total Gross Tax Net Gross Tax Net At the beginning of the financial year 142 (42 ) 100 (77 ) 23 (54 ) 46 Add: Change in fair value of hedging instrument recognised in OCI (914 ) 274 (640 ) – – – (640 ) Less: Reclassified from reserves to interest expense – recognised through OCI 831 (250 ) 581 50 (15 ) 35 616 At the end of the financial year 59 (18 ) 41 (27 ) 8 (19 ) 22 2021 US$M Cash flow hedging Cost of hedging Total Gross Tax Net Gross Tax Net At the beginning of the financial year 71 (21 ) 50 (32 ) 9 (23 ) 27 Add: Change in fair value of hedging instrument recognised in OCI 863 (259 ) 604 – – – 604 Less: Reclassified from reserves to interest expense – recognised through OCI (792 ) 238 (554 ) (45 ) 14 (31 ) (585 ) At the end of the financial year 142 (42 ) 100 (77 ) 23 (54 ) 46 Changes in interest bearing liabilities and related derivatives resulting from financing activities The movement in the year in the Group’s interest bearing liabilities and related derivatives are as follows: Interest bearing liabilities Derivatives liabilities 2022 US$M Bank Notes and Lease Bank short-term Other Cross n Total At the beginning of the financial year 2,260 14,769 3,896 – 58 (557 ) Proceeds from interest bearing liabilities 1,150 – – – 14 – 1,164 Settlements of debt related instruments – – – – – – – Repayment of interest bearing liabilities 1 (941 ) (1,232 ) (1,163 ) – (55 ) – (3,391 ) Change from Net financing cash flows 209 (1,232 ) (1,163 ) – (41 ) – (2,227 ) Other movements: Divestment and demerger of subsidiaries and operations – – (492 ) – – – Interest rate impacts – (1,286 ) – – – 1,277 Foreign exchange impacts 3 (894 ) (126 ) – (2 ) 898 Lease additions – – 866 – – – Remeasurement of index-linked freight contracts – – (369 ) – – – Other interest bearing liabilities/derivative related changes – 6 (36 ) – 2 70 At the end of the financial year 2,472 11,363 2,576 – 17 1,688 Interest bearing liabilities Derivatives 2021 US$M Bank Notes and Lease Bank short-term Other Cross Total At the beginning of the financial year 2,492 21,045 3,443 – 68 (433 ) Proceeds from interest bearing liabilities 504 – – – 64 – 568 Settlements of debt related instruments – – – – – 167 167 Repayment of interest bearing liabilities 1 (737 ) (6,888 ) (770 ) – – – (8,395 ) Change from Net financing cash flows (233 ) (6,888 ) (770 ) – 64 167 (7,660 ) Other movements: Loss on bond repurchase – 579 – – – (184 ) Interest rate impacts – (764 ) – – – 704 Foreign exchange impacts (1 ) 798 115 – (14 ) (796 ) Lease additions – – 1,223 – – – Remeasurement of index-linked freight contracts – – (59 ) – – – Other interest bearing liabilities/derivative related changes 2 (1 ) (56 ) – (60 ) (15 ) At the end of the financial year 2,260 14,769 3,896 – 58 (557 ) 1 Includes US$33 million (2021: US$38 million) of Discontinued operations cash flows. |
Key management personnel
Key management personnel | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Key management personnel | 24 Key management personnel Key management personnel compensation comprises: 2022 2021 2020 US$ US$ US$ Short-term employee benefits 13,979,139 14,081,625 12,564,637 Post-employment benefits 634,363 744,951 1,172,727 Share-based payments 11,165,439 11,601,866 13,514,588 Total 25,778,941 26,428,442 27,251,952 Key Management Personnel (KMP) includes the roles which have the authority and responsibility for planning, directing and controlling the activities of BHP. These are Non-executive Transactions and outstanding loans/amounts with key management personnel There were no purchases by key management personnel from the Group during FY2022 (2021: US$ nil; 2020: US$ nil). There were no amounts payable by key management personnel at 30 June 2022 (2021: US$ nil; 2020: US$ nil). There were no loans receivable from or payable to key management personnel at 30 June 2022 (2021: US$ nil; 2020: US$ nil). Transactions with personally related entities A number of Directors of the Group hold or have held positions in other companies (personally related entities) where it is considered they control or significantly influence the financial or operating policies of those entities. There were no reportable transactions with those entities and no amounts were owed by the Group to personally related entities at 30 June 2022 (2021: US$ nil; 2020: US$ nil). For more information on remuneration and transactions with key management personnel, refer to the Remuneration Report under Governance. |
Employee share ownership plans
Employee share ownership plans | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Employee share ownership plans | 25 Employee share ownership plans Awards, in the form of the right to receive ordinary shares in BHP Group Limited have been granted under the following employee share ownership plans: Cash and Deferred Plan (CDP), Short-Term Incentive Plan (STIP), Long-Term Incentive Plan (LTIP), Management Award Plan (MAP), Transitional and Commencement KMP awards and the all-employee Some awards are eligible to receive a cash payment, or the equivalent value in shares, equal to the dividend amount that would have been earned on the underlying shares awarded to those participants (the Dividend Equivalent Payment, or DEP). The DEP is provided to the participants once the underlying shares are allocated or transferred to them. Awards under the plans do not confer any rights to participate in a share issue; however, there is discretion under each of the plans to adjust the awards in response to a variation in the share capital of BHP Group Limited. On completion of the merger between BHP Petroleum and Woodside on 1 June 2022, adjustments were made to unvested awards held under the above mentioned employee share ownership plans to ensure participants continue to be appropriately treated. The number of ‘Uplift’ awards granted of 1,574,034 shares was calculated based on the number of unvested awards held prior to the merger multiplied by 1.1205 being the USD value of the in specie dividend divided by the closing BHP Group Limited share price on 31 May 2022 (converted into USD on the same date) plus one. The table below provides a description of each of the plans. Plan CDP and STIP LTIP and MAP Transitional and Shareplus Type Short-term incentive Long-term incentive Long-term incentive All-employee share purchase plan Overview The CDP was implemented in FY2020 as a replacement for the STIP, both of which are generally plans for Executive KMP and members of the Executive Leadership Team who are not Executive KMP. Under the CDP, two thirds of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the vesting period (and the remaining one third is delivered in cash). Two awards of deferred shares are granted, each of the equivalent value to the cash award, vesting in two and five years respectively. Under STIP, half of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the two-year The LTIP is a plan for Executive KMP and members of the Executive Leadership Team who are not Executive KMP, and awards are granted annually. The MAP is a plan for BHP senior management who are not KMP. The number of share rights awarded is determined by a participant’s role and grade. Awards may be granted to new Executive KMP recruited into or within the Group to bridge the time-based gap between the vesting of awards either granted in their non-KMP Employees may contribute up to US$5,000 to acquire shares in any plan year. On the third anniversary of the start of a plan year, the Group will match the number of acquired shares. Vesting conditions CDP: Service conditions only for the two-year STIP: Service conditions only. LTIP: Service and performance conditions. BHP’s Total Shareholder Return 1 (TSR) performance relative to the Peer Group TSR over a five-year performance period determines the vesting of 67 per cent of the awards, while performance relative to the Index TSR (being the index value where the comparator group is a market index) determines the vesting of 33 per cent of the awards. For awards granted from December 2017 onwards, 25 per cent of the award will vest where BHP’s TSR is equal to the median TSR of the relevant comparator group(s), as measured over the performance period. Where TSR is below the median, awards will not vest. Vesting occurs on a sliding scale when BHP’s TSR measured over the performance period is between the median TSR of the relevant comparator group(s) up to a nominated level of TSR outperformance over the relevant comparator group(s), as determined by the Committee, above which 100 per cent of the award will vest. MAP: Service conditions only. Service and performance conditions. The Remuneration Committee has absolute discretion to determine if the performance condition has been met and whether any, all or part of the award will vest (or otherwise lapse), having regard to personal performance and the underlying financial performance of the Group during the performance period. To the extent the performance condition is not achieved, awards will lapse. There is no retesting of the performance condition. Vested awards may be subject to a holding lock. Service conditions only. Plan CDP and STIP LTIP and MAP Transitional and Shareplus Vesting period CDP – 2 and 5 years STIP – 2 years LTIP – 5 years MAP – 1 to 5 years 2 years 3 years Dividend Equivalent Payment CDP – Yes STIP – Yes LTIP – Yes MAP – Varies Yes No Exercise period None None None None 1 For LTIP awards granted prior to unification and where the five-year performance period ends after unification, the TSR at the start of the performance period is based on the weighted average of the TSRs of BHP Group Limited and BHP Group Plc and the TSR at the end of the performance period is based on the TSR of BHP Group Limited. Employee share awards 2022 Number of at the Number of Number of Number of Number of 1 Number of at the end Weighted Weighted BHP Group Limited CDP awards 216,340 491,654 – – – 707,994 2.2 n/a STIP awards 200,785 9,014 125,989 – – 83,810 0.2 A$47.70 LTIP awards 3,543,220 714,781 1,114,524 – – 3,143,477 1.8 A$47.70 MAP awards 2 9,953,517 3,915,785 4,615,318 2,321,453 161,642 7,094,173 1.2 A$46.62 Transitional and Commencement KMP 77,000 9,279 – – – 86,279 0.2 n/a Shareplus 4,539,194 3,091,639 2,465,378 531,479 280,494 4,914,470 1.3 A$50.54 BHP Group Plc MAP awards 176,049 72,412 70,657 16,162 161,642 – n/a £22.18 Shareplus 232,767 63,209 2,174 13,308 280,494 – n/a £22.11 1 On unification of the Group’s corporate structure on 31 January 2022 (refer note 16 ‘Share capital’ for details) 161,642 of unvested awards over BHP Group Plc shares lapsed and were replaced by equivalent awards over BHP Group Limited on the terms of the MAP awards. Under the rules of the Shareplus, on unification, holders of acquired BHP Group Plc shares, exchanged them for BHP Group Limited shares on the same terms of other BHP Group Plc shareholders. As participants were not eligible for matching shares in BHP Group Plc, BHP Group Limited made an equivalent offer of rights to match 280,494 unvested awards, which will vest based on their original timeline and will be satisfied with the delivery of BHP Group Limited shares. Given the unification had no impact on the vesting timelines or the terms and conditions of the MAP awards and Shareplus, the changes did not represent a modification that changed the fair value of the awards. 2 There were 2,761 number of awards vested and exercisable at the end of the financial year. Fair value and assumptions in the calculation of fair value for awards issued 2022 Weighted Risk-free Estimated Share price at Estimated Dividend yield BHP Group Limited CDP awards 27.46 n/a 2 and 5 A$38.05 n/a n/a LTIP awards 13.66 1.36% 5 years A$38.05 30.0% n/a MAP awards 1 22.10 n/a 1-5 years A$51.33/A$36.39/ / A$42.52 n/a 5.0% up to 30 June Shareplus 22.80 0.12% 3 years A$45.66 n/a 5.51 % BHP Group Plc MAP awards 20.85 n/a 3 years £18.62 n/a 5.0% up to 30 June Shareplus 14.53 0.15% 3 years £20.68 n/a 6.60 % 1 Includes MAP awards granted on 17 August 2021, 29 September 2021, 1 March 2022, 30 March 2022 and 17 June 2022. Recognition and measurement The fair value at grant date of equity-settled share awards is charged to the income statement over the period for which the benefits of employee services are expected to be derived. The fair values of awards granted were estimated using a Monte Carlo simulation methodology and Black-Scholes option pricing technique and consider the following factors: • exercise price • expected life of the award • current market price of the underlying shares • expected volatility using an analysis of historic volatility over different rolling periods. For the LTIP, it is calculated for all sector comparators and the published MSCI World index • expected dividends • risk-free interest rate, which is an applicable government bond rate • market-based performance hurdles • non-vesting Where awards are forfeited because non-market-based The tax effect of awards granted is recognised in income tax expense, except to the extent that the total tax deductions are expected to exceed the cumulative remuneration expense. In this situation, the excess of the associated current or deferred tax is recognised in equity and forms part of the employee share awards reserve. The fair value of awards as presented in the tables above represents the fair value at grant date. In respect of employee share awards, the Group utilises the BHP Billiton Limited Employee Equity Trust. The trustee of this trust is an independent company, resident in Jersey. The trust uses funds provided by the Group to acquire ordinary shares to enable awards to be made or satisfied. The ordinary shares may be acquired by purchase in the market or by subscription at not less than nominal value. |
Employee benefits, restructurin
Employee benefits, restructuring and post-retirement employee benefits provisions | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Employee benefits, restructuring and post-retirement employee benefits provisions | 26 Employee benefits, restructuring and post-retirement employee benefits provisions 2022 2021 US$M US$M Employee benefits 1 1,351 1,624 Restructuring 2 27 54 Post-retirement employee benefits 3 281 534 Total provisions 1,659 2,212 Comprising: Current 1,319 1,606 Non-current 340 606 2022 Employee Restructuring Post- 3 Total US$M US$M US$M US$M At the beginning of the financial year 1,624 54 534 2,212 Charge/(credit) for the year: Underlying 1,424 24 78 1,526 Discounting – – 30 30 Net interest expense – – (9 ) (9 ) Exchange variations (131 ) (1 ) (51 ) (183 ) Released during the year (58 ) (2 ) (2 ) (62 ) Remeasurement gains taken to retained earnings – – (24 ) (24 ) Utilisation (1,381 ) (43 ) (58 ) (1,482 ) Divestment and demerger of subsidiaries and operations (128 ) (6 ) (217 ) (351 ) Transfers and other movements 1 1 – 2 At the end of the financial year 1,351 27 281 1,659 1 The expenditure associated with total employee benefits will occur in a pattern consistent with when employees choose to exercise their entitlement to benefits. 2 Total restructuring provisions include provisions for terminations and office closures. 3 The net liability recognised in the Consolidated Balance Sheet includes US$165 million present value of funded defined benefits pension obligation (2021: US$377 million) offset by fair value of defined benefit scheme assets US$(169) million (2021: US$(398) million), US$85 million present value of unfunded defined pension and post-retirement medical benefits obligation (2021: US$321 million) and US$200 million unfunded post-employment benefits obligation in Chile (2021: US$234 million). Recognition and measurement Provisions are recognised by the Group when: • there is a present legal or constructive obligation as a result of past events • it is more likely than not that a permanent outflow of resources will be required to settle the obligation • the amount can be reliably estimated and measured at the present value of management’s best estimate of the cash outflow required to settle the obligation at the reporting date Provision Description Employee benefits Liabilities for benefits accruing to employees up until the reporting date in respect of wages and salaries, annual leave and any accumulating sick leave are recognised in the period the related service is rendered. Liabilities recognised in respect of short-term employee benefits expected to be settled within 12 months are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for other long-term employee benefits, including long service leave are measured as the present value of estimated future payments for the services provided by employees up to the reporting date. Liabilities that are not expected to be settled within 12 months are discounted at the reporting date using market yields of high-quality corporate bonds or government bonds for countries where there is no deep market for corporate bonds. The rates used reflect the terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. In relation to industry-based long service leave funds, the Group’s liability, including obligations for funding shortfalls, is determined after deducting the fair value of dedicated assets of such funds. Liabilities for short and long-term employee benefits (other than unpaid wages and salaries) are disclosed within employee benefits. Liabilities for unpaid wages and salaries are recognised in other creditors. Provision Description Restructuring Restructuring provisions are recognised when: • the Group has developed a detailed formal plan identifying the business or part of the business concerned, the location and approximate number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline • the restructuring has either commenced or been publicly announced and can no longer be withdrawn Payments that are not expected to be settled within 12 months of the reporting date are measured at the present value of the estimated future cash payments expected to be made by the Group. Post-retirement employee benefits Defined contribution pension schemes and multi-employer pension schemes For defined contribution schemes or schemes operated on an industry-wide basis where it is not possible to identify assets attributable to the participation by the Group’s employees, the pension charge is calculated on the basis of contributions payable. The Group contributed US$324 Defined benefit pension and post-retirement medical schemes The Group operates or participates in a number of defined benefit pension schemes throughout the world, all of which are closed to new entrants. The funding of the schemes complies with local regulations. The assets of the schemes are generally held separately from those of the Group and are administered by trustees or management boards. The Group also operates a number of unfunded post-retirement medical schemes in the United States, Canada and Europe. For defined benefit schemes, an asset or liability is recognised in the balance sheet based at the present value of defined benefit obligations less, where funded, the fair value of plan assets, except that any such asset cannot exceed the present value of expected refunds from and reductions in future contributions to the plan. Full actuarial valuations are prepared by local actuaries for all schemes, using discount rates based on market yields at the reporting date on high-quality corporate bonds or by reference to national government bonds if high-quality corporate bonds are not available. Where funded, scheme assets are invested in a diversified range of asset classes, predominantly comprising bonds and equities. |
Discontinued operations
Discontinued operations | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Discontinued operations | 27 Discontinued operations On 22 November 2021, the Group and Woodside signed a binding SSA for the merger of the Group’s oil and gas portfolio with Woodside. Woodside has subsequently acquired the entire share capital of BHP Petroleum International Pty Ltd (‘BHP Petroleum’) in exchange for new Woodside ordinary shares. While the merger had an economic effective date of 1 July 2021, the Group continued to control the Petroleum assets and carry on business in the normal course for 11 months until 1 June 2022 (Completion Date). As such, the Group recognises its share of revenue, expenses, net finance costs and associated income tax expense related to the Discontinued operation until the Completion Date. As consideration for the sale of BHP Petroleum, the Group received issued Woodside ordinary shares at Completion Date. On the Completion Date, the Group paid a fully franked in specie dividend in the form of Woodside shares to eligible BHP shareholders. Eligible BHP shareholders received one Woodside share for every shares they held on the Group’s register at the record date of 26 May 2022. As part of completion and in order to reflect the economic effective date, the Group made a net cash payment of US$0.7 billion to Woodside in addition to US$0.4 billion in cash that was left in the BHP Petroleum bank accounts to fund ongoing operations. The total cash transfer of US$1.1 billion reflects the net cash flows generated by BHP Petroleum between 1 July 2021 and Completion Date adjusted for dividends Woodside would have paid on the newly issued Woodside ordinary shares, had the m BHP Mitsui Coal Pty Ltd (BMC), while being divested on 3 May 2022, is not considered to meet the criteria for classification as a Discontinued operation given its relative size to the Group and the Coal segment. For further information, refer to note 3 ‘Exceptional items’. The contribution of Discontinued operations to the Group’s profit and cash flows is detailed below: Income statement – Discontinued operations 2022 2021 2020 US$M US$M US$M Revenue 6,404 3,896 4,007 Other income 170 130 57 Expenses excluding net finance costs (2,207 ) (3,629 ) (3,322 ) Loss from equity accounted investments, related impairments and expenses (4 ) (6 ) (4 ) Profit from operations 4,363 391 738 Financial expenses (165 ) (88 ) (70 ) Financial income 6 6 17 Net finance costs (159 ) (82 ) (53 ) Profit before taxation 4,204 309 685 Income tax expense (1,471 ) (545 ) (492 ) Royalty-related taxation (net of income tax benefit) (237 ) 11 (85 ) Total taxation expense (1,708 ) (534 ) (577 ) Profit/(loss) after taxation from operating activities 2,496 (225 ) 108 Net gain on Petroleum merger with Woodside (after tax) 8,159 – – Profit/(loss) after taxation 10,655 (225 ) 108 Attributable to non-controlling – – – Attributable to BHP shareholders 10,655 (225 ) 108 Basic earnings/(loss) per ordinary share (cents) 210. (4. ) 2. Diluted earnings/(loss) per ordinary share (cents) 210. (4. ) 2.1 The total comprehensive income attributable to BHP shareholders from Discontinued The conversion of options and share rights would decrease the loss per share for the year ended 30 June 2021, therefore its impact has been excluded from the diluted earnings per share calculation. Cash flows from Discontinued operations 2022 2021 2020 US$M US$M US$M Net operating cash flows 2,889 1,351 1,021 Net investing cash flows 1 (904 ) (1,520 ) (1,033 ) Net financing cash flows 2 (33 ) (38 ) (39 ) Net increase/(decrease) in cash and cash equivalents from Discontinued operations 1,952 (207 ) (51 ) Net cash completion on merger of Petroleum with (683 ) – – Cash and cash equivalents disposed (399 ) – – Total cash impact 870 (207 ) (51 ) 1 Includes purchases of property, plant and equipment and capitalised exploration of US$1,144 proceeds from sale of million investment of outflow of outflow of 2 Represents net repayment of interest bearing liabilities of US$33 Exceptional items – Discontinued operations Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact is considered material to the Financial Statements. Items related to Discontinued operations included within the Group’s profits for the year ended 30 June 2022 are detailed below. Year ended 30 June 2022 Gross Tax Net US$M US$M US$M Exceptional items by category Net gain on Petroleum merger with Woodside 1 8,167 (8 ) 8,159 Total 8,167 (8 ) 8,159 Attributable to non-controlling – – – Attributable to BHP shareholders 8,167 (8 ) 8,159 1 The tax expense associated with the exceptional item reflects the tax impact of transaction costs and other restructuring related activities undertaken pre-merger. There are no further tax impacts arising on the net gain on merger of our Petroleum business with Woodside as generated tax losses were either offset with capital gains in other entities in the Group, or not recognised on the basis that it is not probable that future capital gains will be available against which the Group can utilise the tax losses. Net gain on disposal of Discontinued operations Details of the net gain on Petroleum merger with Woodside is presented below: 2022 US$M Assets Cash and cash equivalents 399 Trade and other receivables 1,560 Other financial assets 91 Inventories 295 Property, plant and equipment 12,055 Intangible assets 66 Investments accounted for using the equity method 240 Deferred tax assets 1,470 Other 18 Total assets 16,194 Liabilities Trade and other payables 913 Interest bearing liabilities 243 Tax payables 300 Provisions 4,518 Deferred income 48 Total liabilities 6,022 Net assets 10,172 Fair value of Woodside shares 1 19,566 Net cash completion payment on merger of Petroleum with Woodside 2 (683 ) Foreign currency translation reserve transferred to the income statement 54 Other provisions and related indemnities recognised at completion (353 ) Transaction and other directly attributable costs (245 ) Income tax expense (8 ) Net gain on Petroleum merger with Woodside 8,159 1 Represents the consideration received being the fair value of 914,768,948 Woodside ordinary shares received using the closing ASX share price of A$29.76 on 31 May 2022 (US$21.39 equivalent based on an exchange rate of AUD/USD 0.7187). 2 Reflects the net cash flows generated by BHP Petroleum between 1 July 2021 and Completion Date adjusted for dividends Woodside would have paid on the newly issued Woodside ordinary shares, had the m The Exceptional items related to Discontinued operations included within the Group’s profit for the years ended 30 June 2021 and 30 June 2020 are outlined below: Year ended 30 June 2021 Gross Tax Net US$M US$M US$M Exceptional items by category Impairment of Potash assets 1 – (278 ) (278 ) COVID-19 (47 ) 8 (39 ) Total (47 ) (270 ) (317 ) Attributable to non-controlling – – – Attributable to BHP shareholders (47 ) (270 ) (317 ) 1 The exceptional item reflects the impairment of tax losses originally expected to be recoverable against taxable profits from the Group’s Potash assets. The impairment is included in Discontinued operations as the entity with the losses transferred to Woodside and therefore the losses are no longer available to the Group. Year ended 30 June 2020 Gross Tax Net US$M US$M US$M Exceptional items by category COVID-19 (6 ) 2 (4 ) Total (6 ) 2 (4 ) Attributable to non-controlling – – – Attributable to BHP shareholders (6 ) 2 (4 ) |
Subsidiaries
Subsidiaries | 12 Months Ended |
Jun. 30, 2022 | |
Investments accounted for using equity method [abstract] | |
Subsidiaries | 28 Subsidiaries Significant subsidiaries of the Group are those with the most significant contribution to the Group’s net profit or net assets. The Group’s interest in the subsidiaries’ results are listed in the table below. For a list of the Group’s subsidiaries, refer to Exhibit 8.1 - List of Subsidiaries. Country of Principal activity Group’s interest Significant subsidiaries 2022 % 2021 Coal BHP Mitsui Coal Pty Ltd 1 Australia Coal mining – 80 Hunter Valley Energy Coal Pty Ltd Australia Coal mining 100 100 Copper BHP Olympic Dam Corporation Pty Ltd Australia Copper and uranium mining 100 100 Compañia Minera Cerro Colorado Limitada Chile Copper mining 100 100 Minera Escondida Ltda 2 Chile Copper mining 57.5 57.5 Minera Spence SA Chile Copper mining 100 100 Iron Ore BHP Iron Ore (Jimblebar) Pty Ltd 3 Australia Iron ore mining 85 85 BHP Iron Ore Pty Ltd Australia Service company 100 100 BHP (Towage Service) Pty Ltd Australia Towing services 100 100 Marketing BHP Billiton Freight Singapore Pte Limited Singapore Freight services 100 100 BHP Billiton Marketing AG Switzerland Marketing and trading 100 100 BHP Billiton Marketing Asia Pte Ltd Singapore Marketing support and other services 100 100 Group and Unallocated BHP Billiton Finance B.V. The Netherlands Finance 100 100 BHP Billiton Finance Limited Australia Finance 100 100 BHP Billiton Finance (USA) Limited Australia Finance 100 100 BHP Canada Inc. Canada Potash development 100 100 BHP Group Operations Pty Ltd Australia Administrative services 100 100 BHP Nickel West Pty Ltd Australia Nickel mining, smelting, refining and administrative services 100 100 WMC Finance (USA) Limited Australia Finance 100 100 1 The divestment of BHP’s 80 per cent interest in BHP Mitsui Coal Pty Ltd (BMC) to Stanmore Resources Limited was completed on 3 May 2022. Refer to note 3 ‘Exceptional items’ for further information. 2 As the Group has the ability to direct the relevant activities at Minera Escondida Ltda, it has control over the entity. The assessment of the most relevant activity in this contractual arrangement is subject to judgement. The Group establishes the mine plan and the operating budget and has the ability to appoint the key management personnel, demonstrating that the Group has the existing rights to direct the relevant activities of Minera Escondida Ltda. 3 The Group has an effective interest of 92.5 per cent in BHP Iron Ore (Jimblebar) Pty Ltd; however, by virtue of the shareholder agreement with ITOCHU Iron Ore Australia Pty Ltd and Mitsui & Co. Iron Ore Exploration & Mining Pty Ltd, the Group’s interest in the Jimblebar mining operation is 85 per cent, which is consistent with the other respective contractual arrangements at Western Australia Iron Ore. |
Investments accounted for using
Investments accounted for using the equity method | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Investments accounted for using the equity method | 29 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 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 Associate or joint venture Principal activity Reporting Ownership interest 2022 % 2021 Cerrejón 1 Anguilla/Colombia/Ireland Associate Coal mining in 31 – 33.33 Compañía Minera Antamina S.A. (Antamina) Peru Associate Copper and zinc 31 33.75 33.75 Samarco Mineração S.A. (Samarco) Brazil Joint venture Iron ore mining 31 50.00 50.00 1 At 30 June 2021, the Group’s investment in Cerrejón was classified as ‘Assets held for sale’ and payables owed to Cerrejón was classified as ‘Liabilities directly associated with the assets held for sale’. During FY2022 the Group received dividends of US$238 million from Cerrejón and on 11 January 2022, BHP completed the sale of its 33.33 per cent interest in Cerrejón to Glencore. In accordance with the sale agreement, the final sale proceeds was adjusted for the dividends received to a final number of US$50 million. Voting in relation to relevant activities in Antamina, determined to be the approval of the operating and capital budgets, does not require unanimous consent of all participants to the arrangement, therefore joint control does not exist. Instead, because the Group has the power to participate in the financial and operating policies of the investee, this investment is accounted for as an associate. Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). As the Samarco entity has the rights to the assets and obligations to the liabilities relating to the joint arrangement and not its owners, this investment is accounted for as a joint venture. The Group is restricted in its ability to make dividend payments from its investments in associates and joint ventures as any such payments require the approval of all investors in the associates and joint ventures. The ownership interest at the Group’s and the associates’ or joint ventures’ reporting dates are the same. When the annual financial reporting date is different to the Group’s, financial information is obtained as at 30 June in order to report on an annual basis consistent with the Group’s reporting date. The movement for the year in the Group’s investments accounted for using the equity method is as follows: Year ended 30 June 2022 US$M Investment in Investment in Total equity At the beginning of the financial year 1,742 – 1,742 Loss from equity accounted investments, related impairments and expenses 1,2 653 (676 ) (23 ) Investment in equity accounted investments 52 – 52 Dividends received from equity accounted investments 3 (787 ) – (787 ) Divestment and demerger of equity accounted investments (240 ) – (240 ) Other – 676 676 At the end of the financial year 1,420 – 1,420 1 US$(676) million represents US$(663) million movement in the Samarco dam failure provision including US$(747) million change in estimate and US$84 million exchange translation, US$68 million movement in provisions related to the Samarco Germano dam decommissioning provision including US$56 million change in estimate and US$12 million exchange translation and US$(81) 2 Includes share of operating losses of equity accounted investments from Discontinued operations of US$4 million (2021: US$6 million; 2020: US$4 million). Refer to note 27 ‘Discontinued operations’. 3 Includes dividends received from equity accounted investments from Discontinued operations of US$10 million (2021: US$10 million; 2020: US$12 million). T he following table summarises the financial information relating to each of the Group’s significant equity accounted investments. BHP Brasil’s 50 per cent portion of Samarco’s commitments, for which BHP Brasil has no funding obligation, is US$350 million (2021: US$350 million). Associates Joint ventures 2022 US$M Antamina Individually 1 Samarco 2 Individually Total Current assets 1,275 499 3 Non-current 5,293 5,717 Current liabilities (847 ) (10,830 ) 4 Non-current (1,851 ) (7,873 ) Net assets/(liabilities) – 100% 3,870 (12,487 ) Net assets/(liabilities) – Group share 1,306 (6,244 ) Adjustments to net assets related to accounting policy adjustments – 268 5 Investment in Samarco – 516 6 Impairment of the carrying value of the investment in Samarco – (1,041 ) 7 Additional share of Samarco losses – 5,326 8 Unrecognised losses – 1,175 9 Carrying amount of investments accounted for using the equity 1,306 114 – – 1,420 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 ) 11 Impairment of the carrying value of the investment in Samarco – – Additional share of Samarco losses – 290 Fair value change on forward exchange derivatives – (81 ) Unrecognised losses – (609 ) 9 Profit/(loss) from equity accounted investments, related 720 (63 ) (676 ) – (19 ) Comprehensive income – 100% 2,133 (528 ) Share of comprehensive income/(loss) – Group share in equity 720 (63 ) (676 ) – (19 ) Dividends received from equity accounted investments 776 11 – – 787 Associates Joint ventures 2021 US$M Restated Antamina Cerrejón Individually 1 Samarco 2 Individually Total Current assets 1,499 – 509 3 Non-current 4,885 – 4,380 Current liabilities (1,285 ) – (9,222 ) 4 Non-current (1,062 ) – (7,627 ) Net assets/(liabilities) – 100% 4,037 – (11,960 ) Net assets/(liabilities) – Group share 1,362 – (5,980 ) Adjustments to net assets related to accounting policy adjustments – – 280 5 Investment in Samarco – – 516 6 Impairment of the carrying value of the investment in Samarco – – (1,041 ) 7 Additional share of Samarco losses – – 4,442 8 Unrecognised losses – – 1,783 9 Carrying amount of investments accounted for using the equity 1,362 – 380 – – 1,742 Revenue – 100% 4,822 844 814 Profit/(loss) from Continuing operations – 100% 1,847 (43 ) (2,202 ) 10 Share of profit/(loss) of equity accounted investments 623 (14 ) (1,076 ) 11 Impairment of the carrying value of the investment in Cerrejón – (466 ) – Impairment of the carrying value of the investment in Samarco – – (111 ) 7 Additional share of Samarco losses – – 85 Fair value change on forward exchange derivatives – – 136 Unrecognised losses – – (24 ) 9 Profit/(loss) from equity accounted investments, related impairments 623 (480 ) (68 ) (990 ) – (915 ) Comprehensive income/(loss) – 100% 1,847 (43 ) (2,202 ) Share of comprehensive income/(loss) – Group share in equity accounted investments 623 (480 ) (68 ) (990 ) – (915 ) Dividends received from equity accounted investments 714 13 10 – – 737 Associates Joint ventures 2020 US$M Restated Antamina Cerrejón Individually Samarco 2 Individually Total Revenue – 100% 2,464 1,091 26 Profit/(loss) from Continuing operations – 100% 629 (182 ) (3,617 ) 10 Share of profit/(loss) of equity accounted investments 212 (68 ) (1,918 ) 11 Impairment of the carrying value of the investment in Samarco – – (95 ) 7 Additional share of Samarco losses – – 93 Unrecognised losses – – 1,412 9 Profit/(loss) from equity accounted investments, related impairments and expenses 212 (68 ) (144 ) (508 ) – (508 ) Comprehensive income/(loss) – 100% 629 (182 ) (3,617 ) Share of comprehensive income/(loss) – Group share in equity accounted investments 212 (68 ) (144 ) (508 ) – (508 ) Dividends received from equity accounted investments 105 9 12 – – 126 1 The unrecognised share of gain for the period was US$ million), which decreased the cumulative losses to US$ 2 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information regarding the financial impact of the Samarco dam failure in November 2015 on BHP Brasil’s share of Samarco’s losses. 3 Includes cash and cash equivalents of US$106 million (2021: US$134 million). 4 Includes current financial liabilities (excluding trade and other payables and provisions) of US$6,837 million (2021: US$6,567 million). 5 Relates mainly to dividends declared by Samarco that remain unpaid at balance date and which, in accordance with the Group’s accounting policy, are recognised when received not receivable. 6 Working capital funding provided to Samarco during the period is capitalised as part of the Group’s investments in joint ventures and disclosed as an impairment included within the Samarco impairment expense line item. 7 In the year ended 30 June 2016 BHP Brasil adjusted its investment in Samarco to US$ 8 BHP Brasil has recognised accumulated additional share of Samarco losses of US$(5,326) million resulting from US$(4,539) million provisions relating to the Samarco dam failure, including US$(787) 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$205 million (2021: US$154 million; 2020: US$84 million), interest income of US$19 million (2021: US$1 million; 2020: US$16 million), interest expense of US$628 million (2021: US$492 million; 2020 US$ 11 Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable. |
Interests in joint operations
Interests in joint operations | 12 Months Ended |
Jun. 30, 2022 | |
Investments accounted for using equity method [abstract] | |
Interests in joint operations | 30 Interests in joint operations Significant joint operations of the Group are those with the most significant contributions to the Group’s net profit or net assets. The Group’s interest in the joint operations results are listed in the table below. For a list of the Group’s investments in joint operations, refer to Exhibit 8.1 - List of Subsidiaries. Group’s interest Significant joint operations Country of operation Principal activity 2022 % 2021 Mt Goldsworthy 1 Australia Iron ore mining 85 85 Mt Newman 1 Australia Iron ore mining 85 85 Yandi 1 Australia Iron ore mining 85 85 Central Queensland Coal Associates Australia Coal mining 50 50 Atlantis 2 US Hydrocarbons production – 44 Bass Strait 2 Australia Hydrocarbons production – 50 Macedon 2 Australia Hydrocarbons production – 71.43 Mad Dog 2 US Hydrocarbons production – 23.9 North West Shelf 2 Australia Hydrocarbons production – 12.5–16.67 Pyrenees 2 Australia Hydrocarbons production – 40–71.43 ROD Integrated Development 2 Algeria Hydrocarbons production – 28.85 Shenzi 2 US Hydrocarbons production – 72 Trinidad/Tobago 2 Trinidad and Tobago Hydrocarbons production – 45–68.46 1 These contractual arrangements are controlled by the Group and do not meet the definition of joint operations. However, as they are formed by contractual arrangement and are not entities, the Group recognises its share of assets, liabilities, revenue and expenses arising from these arrangements. 2 These joint operations formed part of the Group’s oil and gas portfolio that merged with Woodside on 1 June 2022. Refer to note 27 ‘Discontinued operations’ for details. Assets held in joint operations subject to significant restrictions are as follows: Group’s share 2022 2021 US$M US$M Current assets 1,928 2,260 Non-current 26,256 38,725 Total assets 1 28,184 40,985 1 While the Group is unrestricted in its ability to sell a share of its interest in these joint operations, it does not have the right to sell individual assets that are used in these joint operations without the unanimous consent of the other participants. The assets in these joint operations are also restricted to the extent that they are only available to be used by the joint operation itself and not by other operations of the Group. |
Related party transactions
Related party transactions | 12 Months Ended |
Jun. 30, 2022 | |
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Related party transactions | 31 Related party transactions The Group’s related parties are predominantly subsidiaries, associates and joint ventures, and key management personnel of the Group. Disclosures relating to key management personnel are set out in note 24 ‘Key management personnel’. Transactions between each parent company and its subsidiaries are eliminated on consolidation and are not disclosed in this note. • All transactions to/from related parties are made at arm’s length, i.e. at normal market prices and rates and on normal commercial terms. • Outstanding balances at year-end co-funding • No guarantees are provided or received for any related party receivables or payables. • No provision for expected credit losses has been recognised in relation to any outstanding balances and no expense has been recognised in respect of expected credit losses due from related parties. • There were no other related party transactions in the year ended 30 June 2022 (2021: US$ nil), other than those with post-employment benefit plans for the benefit of Group employees. These are shown in note 26 ‘Employee benefits, restructuring and post-retirement employee benefits provisions’. • Related party transactions with Samarco are described in note 4 ‘Significant events – Samarco dam failure’. Further disclosures related to related party transactions are as follows: Transactions with related parties Joint ventures Associates 2022 2021 2022 2021 US$M US$M US$M US$M Sales of goods/services – – – – Purchases of goods/services – – 1,852.132 1,564.073 Interest income – – 0.398 2.241 Interest expense – – 0.005 – Dividends received – – 787.208 737.250 Net loans made to/(repayments from) related parties – – (23.554 ) (12.108 ) Outstanding balances with related parties Joint ventures Associates 2022 2021 2022 2021 US$M US$M US$M US$M Trade amounts owing to related parties – – 351.607 316.269 Loan amounts owing to related parties – – – 17.097 Trade amounts owing from related parties – – 6.855 0.004 Loan amounts owing from related parties – – – 40.651 |
Contingent liabilities
Contingent liabilities | 12 Months Ended |
Jun. 30, 2022 | |
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Contingent liabilities | 32 Contingent liabilities 2022 2021 US$M US$M Associates and joint ventures 1 1,541 1,532 Subsidiaries and joint operations 1 925 1,615 Total 2,466 3,147 1 There are a number of matters, for which it is not possible at this time to provide a range of possible outcomes or a reliable estimate of potential future exposures, and for which no amounts have been included in the table above. A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non-occurrence When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation, a provision is recognised. The Group has entered into various counter-indemnities of bank and performance guarantees related to its own future performance, which are in the normal course of business. The likelihood of these guarantees being called upon is considered remote. The Group presently has tax matters, litigation and other claims, for which the timing of resolution and potential economic outflow are uncertain. Obligations assessed as having probable future economic outflows capable of reliable measurement are provided at reporting date and matters assessed as having possible future economic outflows capable of reliable measurement are included in the total amount of contingent liabilities above. Individually significant matters, including narrative on potential future exposures incapable of reliable measurement, are disclosed below, to the extent that disclosure does not prejudice the Group. Uncertain tax and royalty matters The Group is subject to a range of taxes and royalties across many jurisdictions, the application of which is uncertain in some regards. Changes in tax law, changes in interpretation of tax law, periodic challenges and disagreements with tax authorities, and legal proceedings result in uncertainty of the outcome of the application of taxes and royalties to the Group’s business. Areas of uncertainty at reporting date include the application of taxes and royalties to the Group’s cross-border operations and transactions. To the extent uncertain tax and royalty matters give rise to a contingent liability, an estimate of the potential liability is included within the table above, where it is capable of reliable measurement. Samarco contingent liabilities The table above includes contingent liabilities related to the Group’s equity accounted investment in Samarco to the extent they are capable of reliable measurement. Details of contingent liabilities related to Samarco are disclosed in note 4 ‘Significant events – Samarco dam failure’. Divestments and demergers Where the Group divests or demerges entities, it is generally agreed to provide certain indemnities to the acquiring or demerged entity. Such indemnities include those provided as part of the demerger of South 32 Ltd in May 2015, divestment of Group’s Onshore US assets in September 2018 and October 2018, divestment of BMC in May 2022 and the merger of the Group’s Petroleum business with Woodside in June 2022. No material claims have been made pursuant to these indemnities as at 30 June 2022. |
Subsequent events
Subsequent events | 12 Months Ended |
Jun. 30, 2022 | |
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Subsequent events | 33 Subsequent events Other than the matters outlined elsewhere in the Financial Statements, no matters or circumstances have arisen since the end of the financial year that have significantly affected, or may significantly affect, the operations, results of operations or state of affairs of the Group in subsequent accounting periods. |
Auditor's remuneration
Auditor's remuneration | 12 Months Ended |
Jun. 30, 2022 | |
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Auditor's remuneration | 34 Auditor’s remuneration 2022 2021 2020 US$M US$M US$M Fees payable to the Group’s auditors for assurance services Audit of the Group’s Annual Report 9.816 10.642 11.196 Audit of the accounts of subsidiaries, joint ventures and associates 0.605 1.234 1.262 Audit-related assurance services required by legislation to be provided by the auditor 1.933 1.770 1.815 Other assurance and agreed-upon procedures under legislation or contractual arrangements 7.938 1.867 2.003 Total assurance services 20.292 15.513 16.276 Fees payable to the Group’s auditors for non-assurance Other services – – 0.400 Total other services – – 0.400 Total fees 20.292 15.513 16.676 All amounts were paid to EY or EY affiliated firms with fees determined, and predominantly billed, in US dollars. Fees payable to the Group’s auditors for assurance services Audit of the Group’s Annual Report comprises fees for auditing the statutory financial report of the Group and includes audit work in relation to compliance with section 404 of the US Sarbanes-Oxley Act. Audit-related assurance services required by legislation to be provided by the auditors mainly comprises review of half-year reports. Other assurance services comprise assurance in respect of the Group’s sustainability reporting and economic contribution report, in addition to the audits of the financial reports prepared in connection with the merger of BHP’s oil and gas portfolio with Woodside and the unification of BHP’s dual listed corporate structure. Fees payable to the Group’s auditors for other services No amounts were payable for other services in FY2022 or FY2021. Amounts for other services in FY2020 comprised tax compliance services million) and tax advisory services (US$ million). |
Not required for US reporting
Not required for US reporting | 12 Months Ended |
Jun. 30, 2022 | |
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Not required for US reporting | 35 Not required for US reporting 36 Not required for US reporting |
New and amended accounting stan
New and amended accounting standards and interpretations and changes to accounting policies | 12 Months Ended |
Jun. 30, 2022 | |
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New and amended accounting standards and interpretations and changes to accounting policies | 37 New and amended accounting standards and interpretations and changes to accounting policies New and amended accounting pronouncements adopted in the current year The adoption of new and amended accounting pronouncements applicable from 1 July 2021 did not result in a significant impact on the Group’s Financial Statements. This includes the Interest Rate Benchmark (IBOR) Reform – Phase 2 (Amendments to IFRS 9/AASB 9 ‘Financial Instruments’, IAS 39/AASB139 ‘Financial Instruments: Recognition and Measurement’; IFRS 7/AASB 7 ‘Financial Instruments: Disclosures’; IFRS 4/AASB 4 ‘Insurance Contracts’ and IFRS 16/AASB 16 ‘Leases’) early adopted in the prior year. New and amended accounting pronouncements on issue but not yet effective From 1 July 2022, the Group will adopt an amendment to IAS 16/AASB 116 ‘Property, Plant and Equipment’ that The amendment is applied retrospectively, but only to items of property, plant and equipment that became ready for its intended use on or after 1 July 2020. The impact of the amendment on the Group is not expected to be significant and the Group has not identified any material amounts deducted from the cost of assets since 1 July 2020. A number of other accounting standards and interpretations have been issued and will be applicable in future periods. While these remain subject to ongoing assessment, no significant impacts have been identified to date. These pronouncements have not been applied in the preparation of these Financial Statements. |
Provisions (Policies)
Provisions (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Statement [Line Items] | |
Significant events | Key judgements and estimates Judgements The outcomes of litigation are inherently difficult to predict and significant judgement has been applied in assessing the likely outcome of legal claims and determining which legal claims require recognition of a provision or disclosure of a contingent liability. The facts and circumstances relating to these cases are regularly evaluated in determining whether a provision for any specific claim is required. Management has determined that a provision can only be recognised for obligations under the Framework Agreement and Samarco Germano dam decommissioning as at 30 June 2022. It is not yet possible to provide a range of possible outcomes or a reliable estimate of potential future exposures to BHP in connection to the contingent liabilities noted below, given their status. Estimates The provision for the Samarco dam failure currently only reflects the Group’s estimate of the remaining costs to complete Programs under the Framework Agreement and requires the use of significant judgements, estimates and assumptions. Based on current estimates, it is expected that approximately 95 per cent of remaining costs for Programs under the Framework Agreement will be incurred by December 2024. While the provision has been measured based on the latest information available, changes in facts and circumstances are likely in future reporting periods and may lead to material revisions to these estimates. However, it is currently not possible to determine what facts and circumstances may change, therefore revisions in future reporting periods due to the key estimates and factors outlined below cannot be reliably measured. The key estimates that may have a material impact on the provision in the next and future reporting periods include the: • number of people eligible for financial assistance and compensation and the corresponding amount of expected compensation • costs to complete key infrastructure programs The provision may also be affected by factors including but not limited to: • potential changes in scope of work and funding amounts required under the Framework Agreement including the impact of the decisions of the Interfederative Committee along with further technical analysis, community participation required under the Governance Agreement and rulings made by the 12 th • the outcome of ongoing negotiations with State and Federal Prosecutors, including review of Fundação Renova’s Programs as provided in the Governance Agreement • actual costs incurred • resolution of uncertainty in respect of the nature and extent of Samarco’s long-term cash generation • updates to discount and foreign exchange rates • the outcomes of Samarco’s judicial reorganisation In addition, the provision may be impacted by decisions in, or resolution of, existing and potential legal claims in Brazil and other jurisdictions, including the outcome of the United Kingdom group action complaint and the negotiations seeking a definitive and substantive settlement of the obligations under the Framework Agreement and the R$155 billion (approximately US$30 billion) Federal Public Prosecution Office claim. Outcomes of the negotiations are highly uncertain and it is therefore not possible to provide a reliable estimate of potential outcomes. Given these factors, future actual cash outflows may differ from the amounts currently provided and changes to any of the key assumptions and estimates outlined above could result in a material impact to the provision in the next and future reporting periods. |
Income tax expense | Key judgements and estimates Income tax classification Judgements Deferred tax Judgements: Estimates: |
Property, plant and equipment | Key judgements and estimates Judgements: Estimates: Key estimates The determination of useful lives, residual values and depreciation methods involves estimates and assumptions and is reviewed annually. Any changes to useful lives or any other estimates or assumptions, including the expected impact of climate change and the transition to a lower carbon economy, may affect prospective depreciation rates and asset carrying values. The table below summarises the principal depreciation methods and rates applied to major asset categories by the Group. Category Buildings Plant and Mineral rights and Capitalised exploration, Typical depreciation methodology SL SL UoP UoP Depreciation rate 25-50 3-30 Based on the rate of depletion of reserves Based on the rate of depletion of reserves |
Impairment of non-current assets | Key judgements and estimates Judgements: Indicators of impairment may include changes in the Group’s operating and economic assumptions, including those arising from changes in reserves or mine planning, updates to the Group’s commodity supply, demand and price forecasts, or the possible additional impacts from emerging risks including those related to climate change and the transition to a low carbon economy. Climate change Impacts related to climate change and the transition to a low carbon economy may include: • demand for the Group’s commodities decreasing, due to policy, regulatory (including carbon pricing mechanisms), legal, technological, market or societal responses to climate change, resulting in a proportion of a CGU’s reserves becoming incapable of extraction in an economically viable fashion • physical impacts related to acute risks resulting from increased frequency or severity of extreme weather events, and those related to chronic risks resulting from longer-term changes in climate patterns The Group’s assessment of the potential impacts of climate change and the transition to a low carbon economy continues to mature. As outlined in the Basis of Preparation, where sufficiently developed, the potential financial impacts on the Group of climate change and the transition to a low carbon economy have been considered in the assessment of indicators of impairment, including: • the Group’s current assumptions relating to demand for commodities and carbon pricing, including their impact on the Group’s long-term price forecasts • the Group’s operational emissions reduction strategy Estimates: When the recoverable amount is measured by reference to FVLCD, in the absence of quoted market prices or binding sale agreement, estimates are made regarding the present value of future post-tax cash flows. These estimates are made from the perspective of a market participant and include prices, future production volumes, operating costs, capital expenditure, closure and rehabilitation costs, taxes, risking factors applied to cash flows and discount rates. The cash flow forecasts may include net cash flows expected from the extraction, processing and sale of material that does not currently qualify for inclusion in reserves. Reserves and resources are included in the assessment of FVLCD to the extent that it is considered probable that a market participant would attribute value to them. When recoverable amount is measured using VIU, estimates are made regarding the present value of future cash flows based on internal budgets and forecasts and life of asset plans. Key estimates are similar to those identified for FVLCD, although some assumptions and values may differ as they reflect the perspective of management rather than a market participant. All estimates require management judgements and assumptions and are subject to risk and uncertainty that may be beyond the control of the Group; hence, there is a possibility that changes in circumstances will materially alter projections, which may impact the recoverable amount of assets/CGUs at each reporting date. While no indicators of impairment, or impairment reversal, were identified across the Group’s CGUs at 30 June 2022, with the exception of the Cerro Colorado CGU, the carrying value of the Spence CGU is the most susceptible to changes in the significant estimates outlined below in the next reporting period. The significant estimates impacting the Group’s recoverable amount determinations are: Commodity prices Commodity prices were based on latest internal forecasts which assume short-term market prices will revert to the Group’s assessment of long-term price. These price forecasts reflect management’s long-term views of global supply and demand, built upon past experience of the commodity markets and are benchmarked with external sources of information such as analyst forecasts. Prices are adjusted based upon premiums or discounts applied to global price markers to reflect the location, nature and quality of the Group’s production, or to take into account contracted prices. Future production volumes Estimated production volumes were based on detailed data and took into account development plans established by management as part of the Group’s long-term planning process. When estimating FVLCD, assumptions reflect all reserves and resources that a market participant would consider when valuing the respective CGU, which in some cases are broader in scope than the reserves that would be used in a VIU test. In determining FVLCD, risk factors may be applied to reserves and resources which do not meet the criteria to be treated as proved. Cash outflows (including operating costs, capital expenditure, closure and rehabilitation costs and taxes) Cash outflows are based on internal budgets and forecasts and life of asset plans. Cost assumptions reflect management experience and expectations. Tax assumptions reflect existing tax and royalty regimes and rates applicable in the jurisdiction of the CGU. In the case of FVLCD, cash flow projections include the anticipated cash flow effects of any capital expenditure to enhance production or reduce cost where a market participant may take a consistent view. VIU does not take into account future development. Discount rates The Group uses real post-tax post-tax |
Closure and rehabilitation provisions | Key estimates Closure cost estimates are generally based on conceptual level studies early in the operating life of an asset with more detailed studies and planning performed as closure risks (including those related to climate change) are identified and/or as an asset, or parts thereof, near closure. As such, the recognition and measurement of closure and rehabilitation provisions requires the use of significant estimates and assumptions, including, but not limited to: • the extent (due to legal or constructive obligations) of potential activities required for the removal of infrastructure, decharacterisation of tailings storage facilities and rehabilitation activities • costs associated with future closure activities • the extent and period of post-closure monitoring and maintenance, including water management • applicable discount rates • the timing of cash flows and ultimate closure of operations The extent, cost and timing of future closure activities may also be impacted by the potential physical impacts of climate change. In estimating the potential cost of closure activities, the Group considers factors such as long-term weather outlooks, for example forecast changes in rainfall patterns. Closure cost estimates also consider the impact of the Group’s energy transition strategy on the costs and timing of performing closure activities and the impact of new technology when appropriately developed and tested. For example, closure cost estimates largely continue to reflect the use of existing fuel sources for the Group’s equipment while the Group continues to invest in the development of alternative fuel sources and fleet electrification. Estimates for post-closure monitoring and maintenance reflect the Group’s strategies for individual sites, which may include possible relinquishment. The period of monitoring and maintenance included in the provision requires judgement and considers regulatory and licencing requirements, the outcomes of studies and management’s current assessment of stakeholder expectations. As post-closure monitoring and maintenance may be required for significant periods beyond the completion of other closure activities, it is exposed to the potential long-term impacts of climate change, particularly changes in rainfall patterns. While reflecting management’s current best estimate, the cost of post-closure monitoring and maintenance may change in future reporting periods as the understanding of, and potential long-term impacts from, climate change continue to evolve. While progressive closure is performed across a number of operations, significant activities are generally undertaken at the end of the production life at the individual sites, the estimated timing of which is informed by the Group’s current assumptions relating to demand for commodities and carbon pricing, and their impact on the Group’s long-term price forecasts. Remaining production lives range from 2-104 years : 3-91 years). Given the generally shorter remaining operational lives of the Group’s previously held Petroleum assets, the average remaining production life for all operating sites, weighted by current closure provision, has increased to approximately : ). The discount rates applied to the Group’s closure and rehabilitation provisions are determined by reference to the currency of the closure cash flows, the period over which the cash flows will be incurred and prevailing market interest rates (where available). The Group continues to monitor current market conditions with no change made to the Group’s discount rates in the current year. The increase in closure and rehabilitation provisions relating to continuing operating sites reflects updates to the expected cost and timing of closure activities across the Group’s portfolio, with the most significant increases in the year ended 30 June 2022 being at BHP Mitsubishi Alliance (BMA) and Cerro Colorado. For BMA, the increase largely reflects a preliminary assessment of the potential impacts on BMA mine lives resulting from: • the significant increase in coal royalties applicable in Queensland from 1 July 2022 • consideration of the Group’s long term outlook for metallurgical coal commodity prices, which reflects a range of drivers of commodity demand and supply, for example, the latest climate-related announcements from key market countries These factors have resulted in the Group recognising that the end of operations at BMA sites may be earlier than previously anticipated. The best estimate of the impact on the estimated closure cash flows and their timing, and therefore the discounting of the provision, contributed to an increase in the provision, and associated rehabilitation asset, of approximately US$750 million. Given the timing of the announcement of the change to the Queensland coal royalty regime and the preliminary nature of the assessment, further changes to the provision may arise in future reporting periods. At Cerro Colorado, additional work required to re-profile waste dumps for closure and an increase in scope for other closure activities have contributed to an increase in the closure provision of approximately US$ 400 While the closure and rehabilitation provisions reflect management’s best estimates based on current knowledge and information, further studies, trials and detailed analysis of relevant knowledge and resultant closure activities for individual assets continue to be performed throughout the life of asset. Such studies and analysis can impact the estimated costs of closure activities. Estimates can also be impacted by the emergence of new closure and rehabilitation techniques, changes in regulatory requirements and stakeholder expectations for closure (including costs associated with equitable transition), development of new technologies, risks relating to climate change and the transition to a low carbon economy, and experience at other operations. These uncertainties may result in future actual expenditure differing from the amounts currently provided for in the balance sheet. Sensitivity A 0.5 per cent increase a decrease a decrease credit a decrease increment Given the long-lived nature of the majority of the Group’s assets, the majority of final closure activities are generally not expected to occur for a significant period of time. However , a one-year acceleration in forecast cash flows of the Group’s closure and rehabilitation provisions, in isolation, would result in an increase to the provision of approximately US$ million, an increase in property, plant and equipment of US$ million in relation to operating sites and an income statement charge of US$ million in respect of closed sites. |
Leases | Key judgements and estimates Judgements: Where a contract includes the provision of non-lease non-lease Estimates: right-of-use The Group estimates stand-alone prices, where such prices are not readily observable, in order to allocate the contractual payments between lease and non-lease |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Reportable Segments | Year ended 30 June 2022 US$M Copper Iron Ore Coal Group and Group Revenue 16,849 30,767 15,549 1,933 65,098 Inter-segment revenue – – – – – Total revenue 16,849 30,767 15,549 1,933 65,098 Underlying EBITDA 8,565 21,707 9,504 858 40,634 Depreciation and amortisation (1,765 ) (2,203 ) (762 ) (953 ) (5,683 ) Impairment losses 1 (470 ) (33 ) (9 ) (3 ) (515 ) Underlying EBIT 6,330 19,471 8,733 (98 ) 34,436 Exceptional items 2 (81 ) (648 ) 849 (450 ) (330 ) Net finance costs (969 ) Profit before taxation 33,137 Capital expenditure (cash basis) 2,528 1,848 621 858 5,855 Profit/(loss) from equity accounted investments, related impairments and 577 (595 ) – (1 ) (19 ) Investments accounted for using the equity method 1,415 – – 5 1,420 Total assets 3 32,762 24,613 11,524 26,267 95,166 Total liabilities 3 5,342 7,790 3,874 29,394 46,400 Year ended 30 June 2021 US$M Restated Copper Iron Ore Coal Group and Group Revenue 15,726 34,475 5,154 1,566 56,921 Inter-segment revenue – – – – – Total revenue 15,726 34,475 5,154 1,566 56,921 Underlying EBITDA 8,489 26,278 288 18 35,073 Depreciation and amortisation (1,608 ) (1,971 ) (845 ) (660 ) (5,084 ) Impairment losses 1 (72 ) (13 ) (20 ) (31 ) (136 ) Underlying EBIT 6,809 24,294 (577 ) (673 ) 29,853 Exceptional items 2 (144 ) (1,319 ) (1,567 ) (1,308 ) (4,338 ) Net finance costs (1,223 ) Profit before taxation 24,292 Capital expenditure (cash basis) 2,180 2,188 579 665 5,612 Profit/(loss) from equity accounted investments, related impairments and expenses 692 (1,126 ) (480 ) (1 ) (915 ) Investments accounted for using the equity method 1,482 – – 260 1,742 Total assets 3 31,517 26,171 11,030 40,209 108,927 Total liabilities 3 4,589 7,508 3,518 37,707 53,322 Year ended 30 June 2020 US$M Restated Copper Iron Ore Coal Group and Group Revenue 10,666 20,797 6,241 1,220 38,924 Inter-segment revenue – – 1 (1 ) – Total revenue 10,666 20,797 6,242 1,219 38,924 Underlying EBITDA 4,347 14,554 1,632 (663 ) 19,870 Depreciation and amortisation (1,740 ) (1,608 ) (807 ) (512 ) (4,667 ) Impairment losses 1 (17 ) (22 ) (14 ) (20 ) (73 ) Underlying EBIT 2,590 12,924 811 (1,195 ) 15,130 Exceptional items 2 (1,228 ) (614 ) (18 ) 413 (1,447 ) Net finance costs (858 ) Profit before taxation 12,825 Capital expenditure (cash basis) 2,434 2,328 603 626 5,991 Profit/(loss) from equity accounted investments, related impairments and expenses 67 (508 ) (68 ) 1 (508 ) Investments accounted for using the equity method 1,558 – 776 251 2,585 Total assets 3 28,892 23,841 12,110 40,890 105,733 Total liabilities 3 3,535 5,441 2,601 41,981 53,558 1 Impairment losses exclude exceptional items of US$ nil (2021: US$2,371 million; 2020: US$409 million). 2 Exceptional items reported in Group and unallocated include Samarco dam failure costs of US$(13) million (2021: US$(14) million; 2020: US$(32) million) and Samarco related other income of US$ 3 Group and unallocated comparative periods total assets and total liabilities include Petroleum assets and liabilities that were previously disclosed as part of the Petroleum segment. |
Summary of Geographical Information | Geographical information Revenue by location of customer 2022 2021 2020 US$M US$M US$M Restated Restated Australia 1,649 1,871 1,212 Europe 2,129 886 963 China 36,618 39,653 26,503 Japan 8,401 4,387 3,314 India 5,215 2,189 1,475 South Korea 4,786 3,420 2,666 Rest of Asia 4,303 2,934 1,730 North America 1,282 1,147 719 South America 715 426 315 Rest of world – 8 27 65,098 56,921 38,924 Non-current assets by location of assets 2022 2021 2020 US$M US$M US$M Australia 43,250 48,612 48,236 North America 3,964 9,701 9,682 South America 18,280 18,548 18,179 Rest of world 150 1,851 1,955 Unallocated assets 1 858 3,522 6,210 66,502 82,234 84,262 1 Unallocated assets comprise deferred tax assets and other financial assets. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Revenue by Segment and Asset | Revenue by segment and asset 2022 2021 2020 US$M US$M US$M Restated Restated Escondida 9,500 9,470 6,719 Pampa Norte 2,670 1,801 1,395 Olympic Dam 1,776 2,211 1,463 Third - 2,903 2,244 1,089 Total Copper 1 16,849 15,726 10,666 Western Australia Iron Ore 30,632 34,337 20,663 Third-party products 19 18 15 Other 116 120 119 Total Iron Ore 30,767 34,475 20,797 BHP Mitsubishi Alliance 10,254 3,537 4,422 New South Wales Energy Coal 3,035 839 885 Other 2 2,260 778 935 Total Coal 3 15,549 5,154 6,242 Group and unallocated items 4 1,933 1,566 1,220 Inter-segment adjustment – – (1 ) Total revenue 65,098 56,921 38,924 1 Total Copper revenue includes: copper US$15,992 million (2021: US$14,812 million; 2020: US$10,044 million) and other US$857 million (2021: US$914 million; 2020: US$622 million). Other consists of silver, zinc, molybdenum, uranium and gold. 2 Includes revenue related to BHP Mitsui Coal (BMC) divested in May 2022. 3 Total Coal revenue includes: metallurgical coal US$11,990 million (2021: US$4,260 million; 2020: US$5,311 million) and energy coal US$3,559 million (2021: US$894 million; 2020: US$931 million). 4 Group and unallocated items revenue includes: Nickel West US$1,926 million (2021: US$1,545 million; 2020: US$1,189 million) and other revenue US$7 million (2021: US$21 million; 2020: US$31 million). |
Exceptional items (Tables)
Exceptional items (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Statement [Line Items] | |
Summary of Exceptional Items | Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact is considered material to the Financial Statements. Such items included within the Group’s profit from Continuing operations for the year are detailed below. Exceptional items attributable to D Year ended 30 June 2022 Gross Tax Net US$M US$M US$M Exceptional items by category Samarco dam failure (1,032 ) (31 ) (1,063 ) Impairment of US deferred tax assets – (423 ) (423 ) Corporate structure unification costs (428 ) – (428 ) BHP Mitsui Coal (BMC) gain on disposal 840 – 840 Total (620 ) (454 ) (1,074 ) Attributable to non-controlling interests – – – Attributable to BHP shareholders (620 ) (454 ) (1,074 ) Year ended 30 June 2021 Restated Gross Tax Net US$M US$M US$M Exceptional items by category Samarco dam failure (1,087 ) (71 ) (1,158 ) COVID-19 related costs (499 ) 138 (361 ) Impairment of Energy coal assets (1,523 ) (651 ) (2,174 ) Impairment of Potash assets (1,314 ) (473 ) (1,787 ) Total (4,423 ) (1,057 ) (5,480 ) Attributable to non-controlling interests (34 ) 10 (24 ) Attributable to BHP shareholders (4,389 ) (1,067 ) (5,456 ) Year ended 30 June 2020 Gross Tax Net US$M US$M US$M Exceptional items by category Samarco dam failure (176 ) – (176 ) Cancellation of power contracts (778 ) 271 (507 ) COVID-19 related costs (177 ) 51 (126 ) Cerro Colorado impairment (409 ) (83 ) (492 ) Total (1,540 ) 239 (1,301 ) Attributable to non-controlling interests (291 ) 90 (201 ) Attributable to BHP shareholders (1,249 ) 149 (1,100 ) |
Summary of Gain on Disposal | Details of the gain on disposal is as follows: US$M Assets Cash and cash equivalents 63 Trade and other receivables 360 Other financial assets 26 Inventories 92 Property, plant and equipment 1,214 Total assets 1,755 Liabilities Trade and other payables 253 Interest bearing liabilities 249 Tax payable s 9 Provisions 425 Deferred tax liabilities 31 Total liabilities 967 Net assets disposed 788 Less non-controlling interest share of net assets disposed 157 BHP share of net assets disposed 631 Gross consideration 1,318 Transaction and other directly applicable costs (69 ) Income tax expense – Deferred consideration 222 Gain on disposal 840 |
Samarco dam failure [member] | |
Statement [Line Items] | |
Summary of Exceptional Items | The FY2022 exceptional loss of US$1,063 million (after tax) related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2022 US$M Other income – Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (66 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense – Samarco Germano dam decommissioning 68 Samarco dam failure provision (663 ) Fair value change on forward exchange derivatives (81 ) Net finance costs (290 ) Income tax expense (31 ) Total 1 (1,063 ) 1 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. The FY2021 exceptional loss of US$1,158 million related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2021 US$M Other income 34 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (46 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (111 ) Samarco Germano dam decommissioning (15 ) Samarco dam failure provision (1,000 ) Fair value change on forward exchange derivatives 136 Net finance costs (85 ) Income tax expense (71 ) Total 1 (1,158 ) 1 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. The FY2020 exceptional loss of US$176 million related to the Samarco dam failure in November 2015 comprises the following: Year ended 30 June 2020 US$M Other income 489 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure (64 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense (95 ) Samarco Germano dam decommissioning 46 Samarco dam failure provision (459 ) Net finance costs (93 ) Total 1 (176 ) 1 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Provision for dividends and other liabilities [member] | |
Statement [Line Items] | |
Summary of Provisions | The disclosure below excludes closure and rehabilitation provisions (refer to note 15 ‘Closure and rehabilitation provisions’), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 26 ‘Employee benefits, restructuring and post-retirement employee benefits provisions’) and provisions related to the Samarco dam failure (refer to note 4 ‘Significant events – Samarco dam failure’). 2022 2021 US$M US$M Movement in provision for dividends and other liabilities At the beginning of the financial year 581 1,240 Dividends determined 17,720 7,894 Charge/(credit) for the year: Underlying 493 260 Discounting 1 2 Exchange variations 122 20 Released during the year (48 ) (43 ) Utilisation (96 ) (267 ) Dividends paid (17,851 ) (7,901 ) Divestment and demerger of subsidiaries and operations (146 ) – Transfers and other movements (102 ) (624 ) At the end of the financial year 674 581 Comprising: Current 356 293 Non-current 318 288 |
Samarco dam failure [member] | |
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 year ended 30 June 2022 are shown in the tables below and have been treated as an exceptional item. Financial impacts of Samarco dam failure 2022 2021 2020 US$M US$M US$M Income statement Other income 1 – 34 489 Expenses excluding net finance costs: Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure 2 (66 ) (46 ) (64 ) Loss from equity accounted investments, related impairments and expenses: Samarco impairment expense 3 – (111 ) (95 ) Samarco Germano dam decommissioning 4 68 (15 ) 46 Samarco dam failure provision 5 (663 ) (1,000 ) (459 ) Fair value change on forward exchange derivatives 6 (81 ) 136 – Loss from operations (742 ) (1,002 ) (83 ) Net finance costs 7 (290 ) (85 ) (93 ) Loss before taxation (1,032 ) (1,087 ) (176 ) Income tax expense 8 (31 ) (71 ) – Loss after taxation (1,063 ) (1,158 ) (176 ) Balance sheet movement Trade and other payables (1 ) (5 ) (5 ) Derivatives (160 ) 136 – Tax liabilities (31 ) (71 ) – Provisions (629 ) (741 ) (137 ) Net liabilities (821 ) (681 ) (142 ) 2022 2021 2020 US$M US$M US$M Cash flow statement Loss before taxation (1,032 ) (1,087 ) (176 ) Adjustments for: Samarco impairment expense 3 – 111 95 Samarco Germano dam decommissioning 4 (68 ) 15 (46 ) Samarco dam failure provision 5 663 1,000 459 Fair value change on forward exchange derivatives 6 81 (136 ) – Proceeds of cash management related instruments 79 – – Net finance costs 7 290 85 93 Changes in assets and liabilities: Trade and other payables 1 5 5 Net operating cash flows 14 (7 ) 430 Net investment and funding of equity accounted investments 9 (256 ) (470 ) (464 ) Net investing cash flows (256 ) (470 ) (464 ) Net decrease in cash and cash equivalents (242 ) (477 ) (34 ) 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$(56) million (2021: US$(6) million; 2020: US$37 million) change in estimate and US$(12) million (2021: US$21 million; 2020: US$(83) million) exchange translation. 5 US$747 million (2021: US$842 million; 2020: US$916 million) change in estimate and US$(84) million (2021: US$158 million; 2020: US$(457) million) exchange translation. 6 During the period the Group entered 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 Loss from equity accounted investments, related impairments and expenses in the Income Statement. 7 Amortisation of discounting of provision. 8 Includes tax on forward exchange derivatives and other taxes incurred during the period. 9 Includes US $ $ o |
Summary of Provisions | Provisions related to the Samarco dam failure 2022 2021 US$M US$M At the beginning of the financial year 2,792 2,051 Movement in provisions 629 741 Comprising: Utilised (256 ) (359 ) Adjustments charged to the income statement: Change in estimate - Samarco dam failure provision 747 842 Change in estimate - Samarco Germano dam decommissioning (56 ) (6 ) Amortisation of discounting impacting net finance costs 290 85 Exchange translation (96 ) 179 At the end of the financial year 3,421 2,792 Comprising: Current 1,815 1,206 Non-current 1,606 1,586 At the end of the financial year 3,421 2,792 Comprising: Samarco dam failure provision 3,237 2,560 Samarco Germano dam decommissioning provision 184 232 |
Expenses and other income (Tabl
Expenses and other income (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Expenses and Other Income | 2022 2021 2020 US$M US$M Restated US$M Restated Employee benefits expense: Wages, salaries and redundancies 4,197 4,018 3,318 Employee share awards 109 88 90 Social security costs 4 3 2 Pension and other post-retirement obligations 338 274 246 Less employee benefits expense classified as exploration and evaluation expenditure (30 ) (26 ) (15 ) Changes in inventories of finished goods and work in progress (774 ) (321 ) (348 ) Raw materials and consumables used 5,991 4,899 5,472 Freight and transportation 2,319 1,900 1,838 External services 4,525 4,640 3,899 Third-party commodity purchases 2,959 2,220 1,098 Net foreign exchange (gains)/losses (326 ) 293 (617 ) Fair value change on derivatives 1 (29 ) 87 393 Government royalties paid and payable 4,014 3,080 2,171 Exploration and evaluation expenditure incurred and expensed in the current period 199 134 123 Depreciation and amortisation expense 5,683 5,084 4,667 Net impairments: Property, plant and equipment 515 2,474 482 Goodwill and other intangible assets – 33 – All other operating expenses 2,677 1,991 2,634 Total expenses 32,371 30,871 25,453 Insurance recoveries 2 (4 ) (46 ) (489 ) (Gain)/loss on disposal of subsidiaries and operations 3 (840 ) 2 – Dividend income 4 (241 ) (2 ) (2 ) Other income 5 (313 ) (334 ) (229 ) Total other income (1,398 ) (380 ) (720 ) 1 Fair value change on derivatives is principally related to commodity price contracts, foreign exchange contracts and embedded derivatives used in the ordinary course of business as well as derivatives used as part of the funding of dividends. 2 Insurance recoveries is principally related to claims received from Samarco dam failure. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information. 3 Mainly relates to the divestment of BMC in FY2022. Refer to note 3 ‘Exceptional items’ for further information. 4 During FY2022, the Group received dividends of US$238 million from Cerrejón, which reduced completion proceeds net of transaction costs to US$50 million. Refer to note 29 ‘Investments accounted for using the equity method’ for details. 5 Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include certain management fees from non-controlling interests and joint arrangements, royalties and commission income. |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Income Tax Expense | 2022 2021 2020 US$M US$M US$M Restated Restated Total taxation expense comprises: Current tax expense 10,673 9,018 4,285 Deferred tax expense/(benefit) 64 1,598 (88 ) 10,737 10,616 4,197 |
Summary of Factors Affecting Income Tax Expense | 2022 2021 2020 US$M US$M US$M Restated Restated Factors affecting income tax expense for the year Income tax expense differs to the standard rate of corporation tax as follows: Profit before taxation 33,137 24,292 12,825 Tax on profit at Australian prima facie tax rate of 30 per cent 9,941 7,288 3,847 Non-tax effected operating losses and capital gains 1 1,087 2,640 409 Tax on remitted and unremitted foreign earnings 441 485 225 Investment and development allowance – – (99 ) Tax rate changes – (1 ) (8 ) Recognition of previously unrecognised tax assets (3 ) (28 ) (7 ) Tax effect of loss from equity accounted investments, related impairments and expenses 2 (19 ) 315 153 Amounts (over)/under provided in prior years (80 ) (57 ) 13 Foreign exchange adjustments (233 ) (33 ) 41 Impact of tax rates applicable outside of Australia (801 ) (669 ) (272 ) Other 97 436 (86 ) Income tax expense 10,430 10,376 4,216 Royalty-related taxation (net of income tax benefit) 307 240 (19 ) Total taxation expense 10,737 10,616 4,197 1 Includes the tax impacts related to the exceptional impairments of US deferred tax assets in the year ended 30 June 2022 , 2 The loss from equity accounted investments, related impairments and expenses is net of income tax, with the exception of the Samarco forward exchange derivatives described in note 4 ‘Significant events – Samarco dam failure’. This item removes the prima facie tax effect on such loss, related impairments and expenses, excluding the impact of the Samarco forward exchange derivatives which are taxable. Income tax recognised in other comprehensive income is as follows: |
Summary of Income Tax Recognised in Other Comprehensive Income | 2022 2021 2020 US$M US$M US$M Income tax effect of: Items that may be reclassified subsequently to the income statement Hedges: Gains/(losses) taken to equity 274 (259 ) 94 (Gains)/losses transferred to the income statement (264 ) 252 (89 ) Others – (1 ) – Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement 10 (8 ) 5 Items that will not be reclassified to the income statement: Remeasurement gains/(losses) on pension and medical schemes (9 ) (21 ) 25 Others – 1 1 Income tax (charge)/credit relating to items that will not be reclassified (9 ) (20 ) 26 Total income tax credit/(charge) relating to components of other comprehensive income 1 1 (28 ) 31 1 Included within total income tax relating to components of other comprehensive income is US$1 million relating to deferred taxes and US$ nil relating to current taxes (2021: US$(28) million and US$ nil; 2020: US$31 million and US$ nil |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Earnings Per Share | 2022 2021 2020 Restated Restated Earnings attributable to BHP shareholders (US$M) - Continuing operations 20,245 11,529 7,848 - Total 30,900 11,304 7,956 Weighted average number of shares (Million) - Basic 5,061 5,057 5,057 - Diluted 5,071 5,068 5,069 Basic earnings per ordinary share (US cents) - Continuing operations 400.0 228.0 155.2 - Total 610.6 223.5 157.3 Diluted earnings per ordinary share (US cents) - Continuing operations 399.2 227.5 154.8 - Total 609.3 223.0 157.0 Headline earnings per ordinary share (US cents) - Basic 439.0 284.8 171.1 - Diluted 438.1 284.2 170.7 |
Summary of Reconciliation of Earnings Attributable to Ordinary Shareholders | Headline earnings is a Johannesburg Stock Exchange defined performance measure and is reconciled from earnings attributable to ordinary shareholders as follows: 2022 2021 2020 US$M US$M US$M Earnings attributable to BHP shareholders 30,900 11,304 7,956 Adjusted for: (Gain)/loss on sales of PP&E, Investments and Operations 1 (95 ) (50 ) 4 Impairments of property, plant and equipment, financial assets and intangibles 515 2,633 494 Samarco impairment expense – 111 95 Cerrejón impairment expense – 466 – Gain on disposal of BHP Mitsui Coal (840 ) – – Gain on merger of Petroleum (8,167 ) – – Other 2 – – 48 Tax effect of above adjustments (97 ) (60 ) 54 Subtotal of adjustments (8,684 ) 3,100 695 Headline earnings 22,216 14,404 8,651 Diluted headline earnings 22,216 14,404 8,651 1 Included in other income. 2 Mainly represent BHP share of impairment embedded in the statutory income statement of the Group’s equity accounted investments. |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Trade and Other Receivables | 2022 2021 US$M US$M Trade receivables 4,411 4,450 Other receivables 1 1,168 1,946 Total 5,579 6,396 Comprising: Current 5,426 6,059 Non-current 153 337 1 Other receivables mainly relate to indirect tax refunds and receivables from joint venture partners. |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Trade and Other Payables | 2022 2021 US$M US$M Trade payables 5,360 5,079 Other payables 1,327 1,948 Total 6,687 7,027 Comprising: Current 6,687 7,027 Non-current – – |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Inventories | 2022 2021 Definitions US$M US$M Raw materials and consumables 1,713 1,904 Spares, consumables and other supplies yet to be utilised in the production process or in the rendering of services. Work in progress 3,827 3,046 Commodities currently in the production process that require further processing by the Group to a saleable form. Finished goods 710 834 Commodities ready-for-sale and not requiring further processing by the Group. Total 1 6,250 5,784 Comprising: Inve n classified as non-current are not expected to b e utilised Current 4,935 4,426 or sold within 12 months after the reporting date or within the Non-current 1,315 1,358 operating cyc le o f the business. 1 Inventory write-downs of US$163 million were recognised during the year (2021: US$58 million; 2020: US$37 million). Inventory write-downs of US$23 million made in previous periods wer e |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment | Land and Plant and Other Assets under Exploration Total US$M US$M US$M US$M US$M US$M Net book value – 30 June 2022 At the beginning of the financial year 8,072 44,682 8,941 10,432 1,686 73,813 Additions 1 41 1,935 792 5,872 137 8,777 Remeasurements of index-linked freight contracts 2 – (369 ) – – – (369 ) Depreciation for the year (663 ) (5,564 ) (276 ) – – (6,503 ) Impairments for the year 3 (14 ) (499 ) (2 ) – – (515 ) Disposals (3 ) (22 ) – – – (25 ) Divestment and demerger of subsidiaries and operations 4 (448 ) (8,007 ) (545 ) (3,549 ) (842 ) (13,391 ) Transfers and other movements 1,094 3,344 (416 ) (3,724 ) (790 ) (492 ) At the end of the financial year 5 8,079 35,500 8,494 9,031 191 61,295 – Cost 14,823 81,218 14,353 9,755 981 121,130 – Accumulated depreciation and impairments (6,744 ) (45,718 ) (5,859 ) (724 ) (790 ) (59,835 ) Net book value – 30 June 2021 At the beginning of the financial year 8,387 39,429 8,652 13,774 2,120 72,362 Additions 1 25 3,841 797 5,961 93 10,717 Acquisition of subsidiaries & operations 6 – 151 491 – – 642 Remeasurements of index-linked freight contracts 2 – (59 ) – – – (59 ) Depreciation for the year (694 ) (5,748 ) (310 ) – – (6,752 ) Impairments for the year 3 (208 ) (877 ) (687 ) (745 ) (66 ) (2,583 ) Disposals (18 ) (9 ) – – – (27 ) Divestment and demerger of subsidiaries and operations – (14 ) – (2 ) – (16 ) Transfers and other movements 580 7,968 (2 ) (8,556 ) (461 ) (471 ) At the end of the financial year 5 8,072 44,682 8,941 10,432 1,686 73,813 – Cost 14,545 108,049 15,059 11,177 2,531 151,361 – Accumulated depreciation and impairments (6,473 ) (63,367 ) (6,118 ) (745 ) (845 ) (77,548 ) 1 Includes change in estimates and net foreign exchange gains/(losses) related to the closure and rehabilitation provisions for operating sites. Refer to note 15 ‘Closure and rehabilitation provisions’. 2 Relates to remeasurements of index-linked freight contracts including continuous voyage charters (CVCs). Refer to note 21 ‘Leases’. 3 Refer to note 13 ‘Impairment of non-current assets’ for information on impairments. 4 BMC and Petroleum were disposed in May 2022 and June 2022 respectively. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. 5 Includes the carrying value of the Group’s right-of-use assets relating to land and buildings and plant and equipment of US$2,361 million (2021: US$3,350 million). Refer to note 21 ‘Leases’ for the movement of the right-of-use assets. 6 Relates to the acquisition of an additional 28 per cent working interest in Shenzi. |
Summary of Principal Depreciation Methods and Rates Applied to Major Asset Categories | The table below summarises the principal depreciation methods and rates applied to major asset categories by the Group. Category Buildings Plant and Mineral rights and Capitalised exploration, Typical depreciation methodology SL SL UoP UoP Depreciation rate 25-50 3-30 Based on the rate of depletion of reserves Based on the rate of depletion of reserves |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Intangible Assets | 2022 2021 Goodwill Other Total Goodwill Other Total US$M US$M US$M US$M US$M US$M Net book value At the beginning of the financial year 1,197 240 1,437 1,197 377 1,574 Additions – 36 36 – 23 23 Amortisation for the year – (60 ) (60 ) – (93 ) (93 ) Impairments for the year 1 – – – – (52 ) (52 ) Disposals – (16 ) (16 ) – – – Divestment and demerger of subsidiaries and operations 2 – (66 ) (66 ) – – – Transfers and other movements – 38 38 – (15 ) (15 ) At the end of the financial year 1,197 172 1,369 1,197 240 1,437 – Cost 1,197 1,363 2,560 1,197 1,506 2,703 – Accumulated amortisation and impairments – (1,191 ) (1,191 ) – (1,266 ) (1,266 ) 1 Refer to note 13 ‘Impairment of non-current assets’ for information on impairments. 2 Relates to the merger of Petroleum with Woodside. Refer to note 27 ‘Discontinued operations’ for more information. |
Impairment of non-current ass_2
Impairment of non-current assets (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Schedule of Impairment of Non-current Assets for Cash Generating Unit by Class of Assets and by Reportable Segment | 2022 Cash generating unit Segment Property, Goodwill and Equity- Total US$M US$M US$M US$M Cerro Colorado Copper 455 – – 455 Other Various 60 – – 60 Total impairment of non-current assets 515 – – 515 Reversal of impairment – – – – Net impairment of non-current assets – Continuing operations 515 – – 515 Net impairment of non-current assets – Discontinued operations – – – – Net impairment of non-current assets 515 – – 515 2021 Cash generating unit Segment Property, Goodwill and Equity- Total US$M US$M US$M US$M New South Wales Energy Coal Coal 1,025 32 – 1,057 Cerrejón Coal – – 466 466 Potash G&U 1,314 – – 1,314 Other Various 135 1 – 136 Total impairment of non-current assets 2,474 33 466 2,973 Reversal of impairment – – – – Net impairment of non-current assets – Continuing operations 2,474 33 466 2,973 Net impairment of non-current assets – Discontinued operations 109 19 – 128 Net impairment of non-current assets 2,583 52 466 3,101 |
Summary of Goodwill Allocated to Cash Generating Units | The carrying amount of goodwill has been allocated to the CGUs, or groups of CGUs, as follows: Cash generating unit 2022 2021 US$M US$M Olympic Dam 1,010 1,010 Other 187 187 Total goodwill 1,197 1,197 |
Deferred tax balances (Tables)
Deferred tax balances (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Movement in Net Deferred Tax Position | 2022 2021 2020 US$M US$M US$M Net deferred tax (liability)/asset At the beginning of the financial year (1,402 ) (91 ) (491 ) Income tax (charge)/credit recorded in the income statement 1 (125 ) (1,325 ) 335 Income tax (charge)/credit recorded directly in equity (42 ) 42 34 Divestment and demerger of subsidiaries and operations 2 (1,439 ) – – Other movements 1 (28 ) 31 At the end of the financial year (3,007 ) (1,402 ) (91 ) 1 Includes Discontinued operations income tax (charge)/credit to the income statement of US$(61) million (2021: US$273 million; 2020: US$247 million). 2 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. |
Summary of Composition of Net Deferred Tax Assets and Liabilities and Deferred Tax Expense Charged/(Credited) to Income Statement | The composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense charged/(credited) to the income statement is as follows: Deferred tax Deferred tax Charged/(credited) to 2022 2021 2022 2021 2022 2021 2020 US$M US$M US$M US$M US$M US$M US$M Type of temporary difference Depreciation 1 (526 ) (1,349 ) 4,844 4,716 554 488 1,394 Exploration expenditure 9 51 – – 13 347 51 Employee benefits 21 94 (322 ) (333 ) 20 (68 ) (38 ) Closure and rehabilitation 104 638 (1,448 ) (2,086 ) 24 (515 ) (334 ) Resource rent tax – 122 – 368 (129 ) (309 ) (119 ) Other provisions 70 108 (192 ) (227 ) 49 77 (268 ) Deferred income 51 11 (1 ) (16 ) (31 ) (31 ) 33 Deferred charges (57 ) (36 ) 584 602 7 68 (132 ) Investments, including foreign tax credits 139 147 365 671 (298 ) 414 (77 ) Foreign exchange gains and losses (13 ) (3 ) 154 133 33 63 (18 ) Tax losses 225 1,999 (307 ) (82 ) 28 678 (148 ) Lease liability 1 17 68 (594 ) (658 ) (10 ) 67 (793 ) Other 16 62 (20 ) 226 (135 ) 46 114 Total 56 1,912 3,063 3,314 125 1,325 (335 ) 1 Includes deferred tax associated with the recognition of right-of-use |
Summary of Composition of Unrecognised Deferred Tax Assets and Liabilities | The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows: 2022 2021 US$M US$M Unrecognised deferred tax assets Tax losses and tax credits 1 8,462 5,944 Investments in subsidiaries 2 1,597 1,712 Deductible temporary differences relating to PRRT 3 – 2,402 Mineral rights 4 2,781 3,359 Other deductible temporary differences 5 1,777 1,630 Total unrecognised deferred tax assets 14,617 15,047 Unrecognised deferred tax liabilities Investments in subsidiaries 2 2,099 2,203 Future taxable temporary differences relating to unrecognised deferred tax asset for PRRT 3 – 720 Total unrecognised deferred tax liabilities 2,099 2,923 1 At 30 June 2022, the Group had income and capital tax losses with a tax benefit of US$5,777 million (2021: US$3,569 million) and tax credits of US$2,685 million (2021: US$2,375 million), which are not recognised as deferred tax assets, because it is not probable that future taxable profits or capital gains will be available against which the Group can utilise the benefits. The gross amount of tax losses carried forward that have not been recognised is as follows: Year of expiry 2022 2021 US$M US$M Income tax losses Not later than one year – 13 Later than one year and not later than two years – 5 Later than two years and not later than five years 43 105 Later than five years and not later than 10 years 248 1,449 Later than 10 years and not later than 20 years 1,290 3,347 Unlimited 4,157 4,799 5,738 9,718 Capital tax losses Not later than one year – – Later than two years and not later than five years – – Unlimited 14,173 4,238 Gross amount of tax losses not recognised 19,911 13,956 Tax effect of total losses not recognised 5,777 3,569 Of the US$2,685 million of tax credits, US$2,129 2 The Group had deferred tax assets and deferred tax liabilities associated with undistributed earnings of subsidiaries that have not been recognised because the Group is able to control the timing of the reversal of the temporary differences and it is not probable that these differences will reverse in the foreseeable future. Where the Group has undistributed earnings held by associates and joint interests, the deferred tax liability will be recognised as there is no ability to control the timing of the potential distributions. 3 The Group had unrecognised deferred tax assets relating to Australian Petroleum Resource Rent Tax (PRRT ) in FY2021. The assets giving rise to these deferred tax assets were disposed as part of the merger of Petroleum with Woodside. Refer to note 27 ‘Discontinued operations’ for more information. 4 The Group had deductible temporary differences relating to mineral rights for which deferred tax assets had not been recognised because it is not probable that future capital gains will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation. 5 The Group had other deductible temporary differences for which deferred tax assets had not been recognised because it is not probable that future taxable profits will be available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation. |
Closure and rehabilitation pr_2
Closure and rehabilitation provisions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
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Summary of Closure and Rehabilitation Provisions | 2022 2021 US$M US$M At the beginning of the financial year 11,910 8,810 Capitalised amounts for operating sites: Change in estimate 1,579 1,974 Exchange translation (694 ) 483 Adjustments charged/(credited) to the income statement: Increases to existing and new provisions 174 564 Exchange translation (58 ) 76 Released during the year (42 ) (157 ) Other adjustments to the provision: Amortisation of discounting impacting net finance costs 554 380 Acquisition of subsidiaries and operations – 179 Divestment and demerger of subsidiaries and operations (4,477 ) (81 ) Expenditure on closure and rehabilitations activities (316 ) (321 ) Exchange variations impacting foreign currency translation reserve (3 ) 3 Other movements 62 – At the end of the financial year 8,689 11,910 Comprising: Current 475 591 Non-current 8,214 11,319 Operating sites 6,198 9,279 Closed sites 2,491 2,631 |
Share capital (Tables)
Share capital (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Share Capital | BHP Group Limited BHP Group Plc 2022 shares 2021 2020 2022 shares 2021 2020 Share capital issued Opening number of shares 2,945,851,394 2,945,851,394 2,945,851,394 2,112,071,796 2,112,071,796 2,112,071,796 Issue of shares 4,400,000 – – – – – Corporate structure unification 2,112,071,796 – – (2,112,071,796 ) – – Purchase of shares by ESOP Trusts (8,704,669 ) (7,587,353 ) (5,975,189 ) (63,567 ) (185,054 ) (185,297 ) Employee share awards exercised following vesting 8,522,684 6,948,683 6,893,113 77,748 173,644 222,245 Movement in treasury shares under Employee Share Plans 181,985 638,670 (917,924 ) (14,181 ) 11,410 (36,948 ) Closing number of shares 5,062,323,190 2,945,851,394 2,945,851,394 – 2,112,071,796 2,112,071,796 Comprising: Shares held by the public 5,061,272,144 2,944,982,333 2,945,621,003 – 2,112,057,615 2,112,069,025 Treasury shares 1,051,046 869,061 230,391 – 14,181 2,771 Other share classes 5.5% Preference shares of £1 each – – – – 50,000 50,000 Special Voting share of no par value – 1 1 – – – Special Voting share of US$0.50 par – – – – 1 1 DLC Dividend share – 1 1 – – – |
Other equity (Tables)
Other equity (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Reserves | 2022 2021 2020 Recognition and measurement US$M US$M US$M Share premium account – 518 518 The share premium account represented the premium paid on the issue of BHP Group Plc shares recognised in accordance with the UK Companies Act 2006. Group’s Capital redemption reserve – 177 177 The capital redemption reserve represented the par value of BHP Group Plc Group’s Common control reserves (1,603 ) – – The common control reserve arose on unification of the Group’s corporate structure and represents the residual on consolidation between BHP Group Employee share awards reserve 174 268 246 The employee share awards reserve represents the accrued employee Once exercised, the difference between the accumulated fair value of the on-market Cash flow hedge reserve 41 100 50 The cash flow hedge reserve represents hedging gains and losses recognised on the effective portion of cash flow hedges. The cumulative deferred gain or loss non-financial Cost of hedging reserve (19 ) (54 ) (23 ) The cost of hedging reserve represents the recognition of certain costs of Foreign currency translation reserve (14 ) 43 39 The foreign currency translation reserve represents exchange differences non-US Equity investments reserve (8 ) 15 16 The equity investment reserve represents the revaluation of investments in Non-controlling 1,441 1,283 1,283 The non-controlling non-controlling Total reserves 12 2,350 2,306 |
Summary of Financial Information Relating to Subsidiaries with Non-controlling Interests | Summarised financial information relating to each of the Group’s subsidiaries with non-controlling 2022 2021 US$M Minera Other -group Total Minera Other Total Group share (per cent) 57.5 57.5 Current assets 2,929 2,996 Non-current 11,636 11,867 Current liabilities (2,192 ) (1,912 ) Non-current (4,762 ) (4,733 ) Net assets 7,611 8,218 Net assets attributable to NCI 3,235 574 3,809 3,493 848 4,341 Revenue 9,500 9,470 Profit after taxation 3,522 3,605 Other comprehensive income 11 27 Total comprehensive income 3,533 3,632 Profit after taxation attributable to NCI 1,497 658 2,155 1,532 615 2,147 Other comprehensive income attributable to NCI 5 – 5 11 – 11 Net operating cash flow 4,519 5,007 Net investing cash flow (860 ) (655 ) Net financing cash flow (4,029 ) (4,001 ) Dividends paid to NCI 1,760 780 2,540 1,590 537 2,127 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Dividends Paid | Year ended 30 June 2022 Year ended Year ended Per share Total Per share Total Per share Total US cents US$M US cents US$M US cents US$M Dividends paid during the period 1 Prior year final dividend 200 10,119 5 2,779 7 3,946 Interim dividend 15 7,601 10 5,115 6 3,288 35 17,720 15 7,894 14 7,234 1 5.5 per cent dividend on 50,000 preference shares of £1 each determined and paid for financial |
Summary of Franking Credits | BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent. 2022 2021 2020 US$M US$M US$M Franking credits as at 30 June 7,007 14,302 10,980 Franking credits arising from the payment of current tax 2,043 1,799 471 Total franking credits available 1 9,050 16,101 11,451 1 The payment of the final 2022 dividend determined after 30 June 2022 will reduce the franking account balance by US$3,796 million. |
Net debt (Tables)
Net debt (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Statement [Line Items] | |
Summary of Net Debt Balance and Gearing Ratio | 2022 2021 US$M Current Non-current Current Non-current Interest bearing liabilities Bank loans 397 2,075 437 1,823 Notes and debentures 1,690 9,673 1,244 13,525 Lease liabilities 519 2,057 889 3,007 Bank overdraft and short-term borrowings – – – – Other 16 1 58 – Total interest bearing liabilities 2,622 13,806 2,628 18,355 Less: Lease liability associated with index-linked freight contracts 113 161 346 679 Less: Cash and cash equivalents Cash 5,728 – 4,408 – Short-term deposits 11,508 – 10,838 – Less: Total cash and cash equivalents 17,236 – 15,246 – Less: Derivatives included in net debt Net debt management related instruments 1 (358 ) (1,330 ) 20 537 Net cash management related instruments 2 273 – 34 – Less: Total derivatives included in net debt (85 ) (1,330 ) 54 537 Net debt 333 4,121 Net assets 48,766 55,605 Gearing 0.7 % 6.9 % 1 Represents the net cross currency and interest rate swaps designated as effective hedging instruments included within current and non-current 2 Represents the net forward exchange contracts included within current and non-current |
Summary of Cash and Cash Equivalents, Net of Overdrafts | Cash and short-term deposits are disclosed in the cash flow statement net of bank overdrafts and interest bearing liabilities at call. 2022 2021 2020 US$M US$M US$M Total cash and cash equivalents 17,236 15,246 13,426 Bank overdrafts and short-term borrowings – – – Total cash and cash equivalents, net of overdrafts 17,236 15,246 13,426 |
Summary of Maturity Profile of Financial Liabilities Based on the Contractual Amounts | The maturity profile of the Group’s financial liabilities based on the undiscounted contractual amounts, taking into account the derivatives related to debt, is as follows: 2022 US$M Bank loans, debentures and other loans Expected future interest payments Derivatives related to debentures Other derivatives Obligations under lease Trade other payables 1 Total Due for payment: In one year or less or on demand 2,109 492 525 221 579 6,608 10,534 In more than one year but not more than two years 1,634 427 300 112 443 – 2,916 In more than two years but not more than five years 2,609 1,032 492 246 936 – 5,315 In more than five years 7,550 3,705 1,467 245 1,470 – 14,437 Total 13,902 5,656 2,784 824 3,428 6,608 33,202 Carrying amount 13,852 – 1,824 752 2,576 6,608 25,612 2021 US$M Bank loans, Expected Derivatives Other Obligations Trade and 1 Total Due for payment: In one year or less or on demand 1,722 729 61 149 980 6,851 10,492 In more than one year but not more than two years 2,278 661 267 80 680 – 3,966 In more than two years but not more than five years 4,062 1,492 256 240 1,397 – 7,447 In more than five years 7,801 4,136 585 317 1,842 – 14,681 Total 15,863 7,018 1,169 786 4,899 6,851 36,586 Carrying amount 17,087 – 586 690 3,896 6,851 29,110 1 Excludes input taxes of US$79 million (2021: US$176 million) included in other payables. Refer to note 9 ‘Trade and other payables’. |
Currency risk [member] | |
Statement [Line Items] | |
Summary of Interest Bearing Liabilities and Cash and Cash Equivalents Denominated by Currency | Interest bearing liabilities and cash and cash equivalents include balances denominated in the following currencies: Interest bearing liabilities Cash and cash equivalents 2022 2021 2022 2021 US$M US$M US$M US$M USD 8,813 11,146 7,654 12,003 EUR 3,463 4,505 2,656 4 GBP 2,621 3,415 30 32 AUD 783 1,053 3,360 573 CAD 584 635 3,437 2,455 Other 164 229 99 179 Total 16,428 20,983 17,236 15,246 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Movements in Lease Liabilities | Movements in the Group’s lease liabilities during the year are as follows: 2022 2021 US$M US$M At the beginning of the financial year 3,896 3,443 Additions 866 1,223 Remeasurements of index-linked freight contracts (369 ) (59 ) Lease payments 1 (1,288 ) (879 ) Foreign exchange movement (126 ) 115 Amortisation of discounting 125 109 Divestment and demerger of subsidiaries and operations 2 (492 ) – Transfers and other movements (36 ) (56 ) At the end of the financial year 2,576 3,896 Comprising: Current liabilities 519 889 Non-current 2,057 3,007 1 Includes US$39 million (2021: US$45 million) related to Discontinued operations. 2 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. |
Summary of Maturity Profile of Lease Liabilities | The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows: Lease liability 2022 2021 US$M US$M Due for payment: In one year or less or on demand 579 980 In more than one year but not more than two years 443 680 In more than two years but not more than five years 936 1,397 In more than five years 1 1,470 1,842 Total 3,428 4,899 Carrying amount 2,576 3,896 1 Includes |
Summary of Movements in Right of Use Assets | Movements in the Group’s right-of-use 2022 2021 Land and buildings Plant and equipment Total Land and Plant and Total US$M US$M US$M US$M US$M US$M Net book value At the beginning of the financial year 638 2,712 3,350 689 2,358 3,047 Additions 41 825 866 25 1,227 1,252 Remeasurements of index-linked freight contracts – (369 ) (369 ) – (59 ) (59 ) Depreciation expensed during the period (103 ) (872 ) (975 ) (111 ) (670 ) (781 ) Depreciation classified as exploration – (3 ) (3 ) – (19 ) (19 ) Impairments for the year (7 ) – (7 ) (30 ) (2 ) (32 ) Divestment and demerger of subsidiaries and operations 1 (116 ) (313 ) (429 ) – – – Transfers and other movements (1 ) (71 ) (72 ) 65 (123 ) (58 ) At the end of the financial year 452 1,909 2,361 638 2,712 3,350 – Cost 745 4,307 5,052 897 4,393 5,290 – Accumulated depreciation and impairments (293 ) (2,398 ) (2,691 ) (259 ) (1,681 ) (1,940 ) 1 Relates to the divestment of BMC and merger of Petroleum with Woodside. Refer to notes 3 ‘Exceptional items’ and 27 ‘Discontinued operations’ for more information. |
Summary of Amounts Recorded in Income Statement and Cash Flow Statements | Amounts recorded in the income statement and the cash flow statement for the year were: 2022 2021 2020 US$M US$M Restated US$M Restated Included within Income statement Depreciation of right-of-use 964 753 623 Profit from operations Short-term, low-value 1 847 834 637 Profit from operations Interest on lease liabilities 119 102 82 Financial expenses Cash flow statement Principal lease payments 1,130 732 632 Cash flows from financing activities Lease interest payments 119 102 82 Cash flows from operating activities 1 Relates to US$585 million of variable lease costs (2021: US$510 million; 2020: US$415 million), US$222 million of short-term lease costs (2021: US$294 million; 2020: US$201 million) and US$40 million of low-value |
Net finance costs (Tables)
Net finance costs (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Net Finance Costs | 2022 2021 2020 US$M US$M Restated US$M Restated Financial expenses Interest expense using the effective interest rate method: Interest on bank loans, overdrafts and all other borrowings 491 607 1,093 Interest capitalised at 2.90% (2021: 2.83%; 2020: 4.14%) 1 (113 ) (204 ) (265 ) Interest on lease liabilities 119 102 82 Discounting on provisions and other liabilities 645 353 343 Other gains and losses: Fair value change on hedged loans (1,286 ) (779 ) 721 Fair value change on hedging derivatives 1,277 704 (788 ) Loss on bond repurchase 2 – 395 – Exchange variations on net debt (99 ) 99 (18 ) Other 16 13 24 Total financial expenses 1,050 1,290 1,192 Financial income Interest income (81 ) (67 ) (334 ) Net finance costs 969 1,223 858 1 Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or, where financed through general borrowings, at a capitalisation rate representing the average interest rate on such borrowings. Tax relief for capitalised interest is approximately US$34 million (2021: US$61 million; 2020: US$80 million). 2 Relates to the additional cost on settlement of two multi-currency hybrid debt repurchase programs and the unwind of the associated hedges, included in a total cash payment of US$3,402 million disclosed in repayment of interest bearing liabilities in the Consolidated Cash Flow Statement. |
Financial risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of foreign currency risk arising from financial assets and liabilities, which are denominated in currencies other than the US dollar | The following table shows the carrying values of financial assets and liabilities at the end of the reporting period denominated in currencies other than the US dollar that are exposed to foreign currency risk: Net financial (liabilities)/assets - by currency of denomination 2022 2021 US$M US$M AUD (3,649 ) (4,421 ) CLP (602 ) (649 ) GBP 388 535 EUR 280 366 Other 187 128 Total (3,396 ) (4,041 ) |
Summary of Financial Assets and Liabilities by Class | The financial assets and liabilities are presented by class in the table below at their carrying amounts. IFRS 13 1 IFRS 9 Classification 2022 US$M 2021 Current cross currency and interest rate swaps 2 2 Fair value through profit or loss – 20 Current other derivative contracts 3 2,3 Fair value through profit or loss 326 207 Current other financial assets Amortised cost 100 – Current other investments 5 1,2 Fair value through profit or loss 203 3 Non-current 2 2 Fair value through profit or loss 136 1,123 Non-current 3 2,3 Fair value through profit or loss 16 152 Non-current 4 3 Fair value through profit or loss 273 – Non-current 1,3 Fair value through other comprehensive income 138 31 Non-current 5 1,2 Fair value through profit or loss 239 304 Total other financial assets 1,431 1,840 Cash and cash equivalents Amortised cost 17,236 15,246 Trade and other receivables 6 Amortised cost 1,674 2,363 Provisionally priced trade receivables 2 Fair value through profit or loss 3,478 3,547 Total financial assets 23,819 22,996 Non-financial 71,347 85,931 Total assets 95,166 108,927 Current cross currency and interest rate swaps 2 2 Fair value through profit or loss 358 – Current other derivative contracts 3 2,3 Fair value through profit or loss 118 52 Current other financial liabilities 7 Amortised cost 103 78 Non-current 2 2 Fair value through profit or loss 1,466 586 Non-current 3 2,3 Fair value through profit or loss 31 – Non-current 7 Amortised cost 500 560 Total other financial liabilities 2,576 1,276 Trade and other payables 8 Amortised cost 5,223 6,277 Provisionally priced trade payables 2 Fair value through profit or loss 1,385 574 Bank loans 9 Amortised cost 2,472 2,260 Notes and debentures 9 Amortised cost 11,363 14,769 Lease liabilities 2,576 3,896 Other 9 Amortised cost 17 58 Total financial liabilities 25,612 29,110 Non-financial 20,788 24,212 Total liabilities 46,400 53,322 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 (which include the base LIBOR rate and swap rates) 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 other derivative contracts of US$ 4 Includes receivables contingent on outcome of future events relating to mining , 5 Includes investments held by BHP Billiton Foundation which are restricted and not available for general use by the Group of US$252 mainly 6 Excludes input taxes of US$427 7 Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group’s Escondida operations. 8 Excludes input taxes of US$79 9 All interest bearing liabilities, excluding lease liabilities, are unsecured. |
Summary of Carrying Amounts of Group's Notes and Debentures by Currency and Derivatives Which Hedge | The table below shows the carrying amounts of the Group’s notes and debentures by currency and the derivatives which hedge them: • The carrying amount of the notes and debentures includes foreign exchange remeasurement to period-end • The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at period-end • The hedged value of notes and debentures includes their carrying amounts adjusted for the offsetting derivative fair value movements due to foreign currency and interest rate risk remeasurement. Fair value of derivatives 2022 US$M Carrying Foreign Interest Recognised Recognised Recognised 1 Accrued Total Hedged 2 A B C D E F G B to G A + B + C USD 4,740 – (16 ) – – (7 ) 86 63 4,724 GBP 2,599 796 (115 ) (35 ) 13 26 42 727 3,280 EUR 3,449 585 112 (16 ) 8 (4 ) 45 730 4,146 CAD 575 167 5 (8 ) 6 (3 ) 1 168 747 Total 11,363 1,548 (14 ) (59 ) 27 12 174 1,688 12,897 Fair value of derivatives 2021 US$M Carrying Foreign Interest Recognised Recognised Recognised 1 Accrued Total Hedged 2 A B C D E F G B to G A + B + C USD 6,270 – (318 ) – – 11 77 (230 ) 5,952 GBP 3,387 435 (544 ) (81 ) 25 (34 ) 53 (146 ) 3,278 EUR 4,486 73 (418 ) (33 ) 27 7 49 (295 ) 4,141 CAD 626 142 (21 ) (28 ) 25 (2 ) (2 ) 114 747 Total 14,769 650 (1,301 ) (142 ) 77 (18 ) 177 (557 ) 14,118 1 Predominantly related to ineffectiveness. 2 Includes US$3,018 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship. |
Summary of Hedging instruments | The following table shows the notional value of the Group’s hedging instruments that are expected to expire before 30 June 2023. Hedging instrument Notional Notional value US$M Notional value to mature before US$M Interest rate swaps USD 10,719 748 Cross-currency interest rate swaps EUR 3,187 404 GBP 1,673 923 Total 15,579 2,075 |
Summary of Reconciliation of Components of Equity and Analysis of Movements in Reserves for all Hedges | The following table shows a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of these reserves, refer to note 17 2022 US$M Cash flow hedging Cost of hedging Total Gross Tax Net Gross Tax Net At the beginning of the financial year 142 (42 ) 100 (77 ) 23 (54 ) 46 Add: Change in fair value of hedging instrument recognised in OCI (914 ) 274 (640 ) – – – (640 ) Less: Reclassified from reserves to interest expense – recognised through OCI 831 (250 ) 581 50 (15 ) 35 616 At the end of the financial year 59 (18 ) 41 (27 ) 8 (19 ) 22 2021 US$M Cash flow hedging Cost of hedging Total Gross Tax Net Gross Tax Net At the beginning of the financial year 71 (21 ) 50 (32 ) 9 (23 ) 27 Add: Change in fair value of hedging instrument recognised in OCI 863 (259 ) 604 – – – 604 Less: Reclassified from reserves to interest expense – recognised through OCI (792 ) 238 (554 ) (45 ) 14 (31 ) (585 ) At the end of the financial year 142 (42 ) 100 (77 ) 23 (54 ) 46 |
Summary of Movement of Interest Bearing Liabilities and Related Derivatives | The movement in the year in the Group’s interest bearing liabilities and related derivatives are as follows: Interest bearing liabilities Derivatives liabilities 2022 US$M Bank Notes and Lease Bank short-term Other Cross n Total At the beginning of the financial year 2,260 14,769 3,896 – 58 (557 ) Proceeds from interest bearing liabilities 1,150 – – – 14 – 1,164 Settlements of debt related instruments – – – – – – – Repayment of interest bearing liabilities 1 (941 ) (1,232 ) (1,163 ) – (55 ) – (3,391 ) Change from Net financing cash flows 209 (1,232 ) (1,163 ) – (41 ) – (2,227 ) Other movements: Divestment and demerger of subsidiaries and operations – – (492 ) – – – Interest rate impacts – (1,286 ) – – – 1,277 Foreign exchange impacts 3 (894 ) (126 ) – (2 ) 898 Lease additions – – 866 – – – Remeasurement of index-linked freight contracts – – (369 ) – – – Other interest bearing liabilities/derivative related changes – 6 (36 ) – 2 70 At the end of the financial year 2,472 11,363 2,576 – 17 1,688 Interest bearing liabilities Derivatives 2021 US$M Bank Notes and Lease Bank short-term Other Cross Total At the beginning of the financial year 2,492 21,045 3,443 – 68 (433 ) Proceeds from interest bearing liabilities 504 – – – 64 – 568 Settlements of debt related instruments – – – – – 167 167 Repayment of interest bearing liabilities 1 (737 ) (6,888 ) (770 ) – – – (8,395 ) Change from Net financing cash flows (233 ) (6,888 ) (770 ) – 64 167 (7,660 ) Other movements: Loss on bond repurchase – 579 – – – (184 ) Interest rate impacts – (764 ) – – – 704 Foreign exchange impacts (1 ) 798 115 – (14 ) (796 ) Lease additions – – 1,223 – – – Remeasurement of index-linked freight contracts – – (59 ) – – – Other interest bearing liabilities/derivative related changes 2 (1 ) (56 ) – (60 ) (15 ) At the end of the financial year 2,260 14,769 3,896 – 58 (557 ) 1 Includes US$33 million (2021: US$38 million) of Discontinued operations cash flows. |
Key management personnel (Table
Key management personnel (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Summary of Key Management Personnel | Key management personnel compensation comprises: 2022 2021 2020 US$ US$ US$ Short-term employee benefits 13,979,139 14,081,625 12,564,637 Post-employment benefits 634,363 744,951 1,172,727 Share-based payments 11,165,439 11,601,866 13,514,588 Total 25,778,941 26,428,442 27,251,952 |
Employee share ownership plans
Employee share ownership plans (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Description of Plans | The table below provides a description of each of the plans. Plan CDP and STIP LTIP and MAP Transitional and Shareplus Type Short-term incentive Long-term incentive Long-term incentive All-employee share purchase plan Overview The CDP was implemented in FY2020 as a replacement for the STIP, both of which are generally plans for Executive KMP and members of the Executive Leadership Team who are not Executive KMP. Under the CDP, two thirds of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the vesting period (and the remaining one third is delivered in cash). Two awards of deferred shares are granted, each of the equivalent value to the cash award, vesting in two and five years respectively. Under STIP, half of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the two-year The LTIP is a plan for Executive KMP and members of the Executive Leadership Team who are not Executive KMP, and awards are granted annually. The MAP is a plan for BHP senior management who are not KMP. The number of share rights awarded is determined by a participant’s role and grade. Awards may be granted to new Executive KMP recruited into or within the Group to bridge the time-based gap between the vesting of awards either granted in their non-KMP Employees may contribute up to US$5,000 to acquire shares in any plan year. On the third anniversary of the start of a plan year, the Group will match the number of acquired shares. Vesting conditions CDP: Service conditions only for the two-year STIP: Service conditions only. LTIP: Service and performance conditions. BHP’s Total Shareholder Return 1 (TSR) performance relative to the Peer Group TSR over a five-year performance period determines the vesting of 67 per cent of the awards, while performance relative to the Index TSR (being the index value where the comparator group is a market index) determines the vesting of 33 per cent of the awards. For awards granted from December 2017 onwards, 25 per cent of the award will vest where BHP’s TSR is equal to the median TSR of the relevant comparator group(s), as measured over the performance period. Where TSR is below the median, awards will not vest. Vesting occurs on a sliding scale when BHP’s TSR measured over the performance period is between the median TSR of the relevant comparator group(s) up to a nominated level of TSR outperformance over the relevant comparator group(s), as determined by the Committee, above which 100 per cent of the award will vest. MAP: Service conditions only. Service and performance conditions. The Remuneration Committee has absolute discretion to determine if the performance condition has been met and whether any, all or part of the award will vest (or otherwise lapse), having regard to personal performance and the underlying financial performance of the Group during the performance period. To the extent the performance condition is not achieved, awards will lapse. There is no retesting of the performance condition. Vested awards may be subject to a holding lock. Service conditions only. Plan CDP and STIP LTIP and MAP Transitional and Shareplus Vesting period CDP – 2 and 5 years STIP – 2 years LTIP – 5 years MAP – 1 to 5 years 2 years 3 years Dividend Equivalent Payment CDP – Yes STIP – Yes LTIP – Yes MAP – Varies Yes No Exercise period None None None None 1 For LTIP awards granted prior to unification and where the five-year performance period ends after unification, the TSR at the start of the performance period is based on the weighted average of the TSRs of BHP Group Limited and BHP Group Plc and the TSR at the end of the performance period is based on the TSR of BHP Group Limited. |
Summary of Employee Share Awards | Employee share awards 2022 Number of at the Number of Number of Number of Number of 1 Number of at the end Weighted Weighted BHP Group Limited CDP awards 216,340 491,654 – – – 707,994 2.2 n/a STIP awards 200,785 9,014 125,989 – – 83,810 0.2 A$47.70 LTIP awards 3,543,220 714,781 1,114,524 – – 3,143,477 1.8 A$47.70 MAP awards 2 9,953,517 3,915,785 4,615,318 2,321,453 161,642 7,094,173 1.2 A$46.62 Transitional and Commencement KMP 77,000 9,279 – – – 86,279 0.2 n/a Shareplus 4,539,194 3,091,639 2,465,378 531,479 280,494 4,914,470 1.3 A$50.54 BHP Group Plc MAP awards 176,049 72,412 70,657 16,162 161,642 – n/a £22.18 Shareplus 232,767 63,209 2,174 13,308 280,494 – n/a £22.11 1 On unification of the Group’s corporate structure on 31 January 2022 (refer note 16 ‘Share capital’ for details) 161,642 of unvested awards over BHP Group Plc shares lapsed and were replaced by equivalent awards over BHP Group Limited on the terms of the MAP awards. Under the rules of the Shareplus, on unification, holders of acquired BHP Group Plc shares, exchanged them for BHP Group Limited shares on the same terms of other BHP Group Plc shareholders. As participants were not eligible for matching shares in BHP Group Plc, BHP Group Limited made an equivalent offer of rights to match 280,494 unvested awards, which will vest based on their original timeline and will be satisfied with the delivery of BHP Group Limited shares. Given the unification had no impact on the vesting timelines or the terms and conditions of the MAP awards and Shareplus, the changes did not represent a modification that changed the fair value of the awards. 2 There were 2,761 number of awards vested and exercisable at the end of the financial year. |
Summary of Fair Value and Assumptions in the Calculation of Fair Value for Awards Issued | Fair value and assumptions in the calculation of fair value for awards issued 2022 Weighted Risk-free Estimated Share price at Estimated Dividend yield BHP Group Limited CDP awards 27.46 n/a 2 and 5 A$38.05 n/a n/a LTIP awards 13.66 1.36% 5 years A$38.05 30.0% n/a MAP awards 1 22.10 n/a 1-5 years A$51.33/A$36.39/ / A$42.52 n/a 5.0% up to 30 June Shareplus 22.80 0.12% 3 years A$45.66 n/a 5.51 % BHP Group Plc MAP awards 20.85 n/a 3 years £18.62 n/a 5.0% up to 30 June Shareplus 14.53 0.15% 3 years £20.68 n/a 6.60 % 1 Includes MAP awards granted on 17 August 2021, 29 September 2021, 1 March 2022, 30 March 2022 and 17 June 2022. |
Employee benefits, restructur_2
Employee benefits, restructuring and post-retirement employee benefits provisions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Employee Benefits, Restructuring and Post-retirement Employee Benefits Provisions | 2022 2021 US$M US$M Employee benefits 1 1,351 1,624 Restructuring 2 27 54 Post-retirement employee benefits 3 281 534 Total provisions 1,659 2,212 Comprising: Current 1,319 1,606 Non-current 340 606 |
Summary of Reconciliation of Employee Benefits Restructuring and Postretirement Employee Benefits | 2022 Employee Restructuring Post- 3 Total US$M US$M US$M US$M At the beginning of the financial year 1,624 54 534 2,212 Charge/(credit) for the year: Underlying 1,424 24 78 1,526 Discounting – – 30 30 Net interest expense – – (9 ) (9 ) Exchange variations (131 ) (1 ) (51 ) (183 ) Released during the year (58 ) (2 ) (2 ) (62 ) Remeasurement gains taken to retained earnings – – (24 ) (24 ) Utilisation (1,381 ) (43 ) (58 ) (1,482 ) Divestment and demerger of subsidiaries and operations (128 ) (6 ) (217 ) (351 ) Transfers and other movements 1 1 – 2 At the end of the financial year 1,351 27 281 1,659 1 The expenditure associated with total employee benefits will occur in a pattern consistent with when employees choose to exercise their entitlement to benefits. 2 Total restructuring provisions include provisions for terminations and office closures. 3 The net liability recognised in the Consolidated Balance Sheet includes US$165 million present value of funded defined benefits pension obligation (2021: US$377 million) offset by fair value of defined benefit scheme assets US$(169) million (2021: US$(398) million), US$85 million present value of unfunded defined pension and post-retirement medical benefits obligation (2021: US$321 million) and US$200 million unfunded post-employment benefits obligation in Chile (2021: US$234 million). |
Discontinued operations (Tables
Discontinued operations (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Statement [Line Items] | |
Summary of Income Statement - Discontinued Operations | Income statement – Discontinued operations 2022 2021 2020 US$M US$M US$M Revenue 6,404 3,896 4,007 Other income 170 130 57 Expenses excluding net finance costs (2,207 ) (3,629 ) (3,322 ) Loss from equity accounted investments, related impairments and expenses (4 ) (6 ) (4 ) Profit from operations 4,363 391 738 Financial expenses (165 ) (88 ) (70 ) Financial income 6 6 17 Net finance costs (159 ) (82 ) (53 ) Profit before taxation 4,204 309 685 Income tax expense (1,471 ) (545 ) (492 ) Royalty-related taxation (net of income tax benefit) (237 ) 11 (85 ) Total taxation expense (1,708 ) (534 ) (577 ) Profit/(loss) after taxation from operating activities 2,496 (225 ) 108 Net gain on Petroleum merger with Woodside (after tax) 8,159 – – Profit/(loss) after taxation 10,655 (225 ) 108 Attributable to non-controlling – – – Attributable to BHP shareholders 10,655 (225 ) 108 Basic earnings/(loss) per ordinary share (cents) 210. (4. ) 2. Diluted earnings/(loss) per ordinary share (cents) 210. (4. ) 2.1 |
Summary of Cash Flows from Discontinued Operations | Cash flows from Discontinued operations 2022 2021 2020 US$M US$M US$M Net operating cash flows 2,889 1,351 1,021 Net investing cash flows 1 (904 ) (1,520 ) (1,033 ) Net financing cash flows 2 (33 ) (38 ) (39 ) Net increase/(decrease) in cash and cash equivalents from Discontinued operations 1,952 (207 ) (51 ) Net cash completion on merger of Petroleum with (683 ) – – Cash and cash equivalents disposed (399 ) – – Total cash impact 870 (207 ) (51 ) 1 Includes purchases of property, plant and equipment and capitalised exploration of US$1,144 proceeds from sale of million investment of outflow of outflow of 2 Represents net repayment of interest bearing liabilities of US$33 |
Summary of Tabular Form Of Exceptional Items Relating to Discontinued Operations | Items related to Discontinued operations included within the Group’s profits for the year ended 30 June 2022 are detailed below. Year ended 30 June 2022 Gross Tax Net US$M US$M US$M Exceptional items by category Net gain on Petroleum merger with Woodside 1 8,167 (8 ) 8,159 Total 8,167 (8 ) 8,159 Attributable to non-controlling – – – Attributable to BHP shareholders 8,167 (8 ) 8,159 1 The tax expense associated with the exceptional item reflects the tax impact of transaction costs and other restructuring related activities undertaken pre-merger. There are no further tax impacts arising on the net gain on merger of our Petroleum business with Woodside as generated tax losses were either offset with capital gains in other entities in the Group, or not recognised on the basis that it is not probable that future capital gains will be available against which the Group can utilise the tax losses. The Exceptional items related to Discontinued operations included within the Group’s profit for the years ended 30 June 2021 and 30 June 2020 are outlined below: Year ended 30 June 2021 Gross Tax Net US$M US$M US$M Exceptional items by category Impairment of Potash assets 1 – (278 ) (278 ) COVID-19 (47 ) 8 (39 ) Total (47 ) (270 ) (317 ) Attributable to non-controlling – – – Attributable to BHP shareholders (47 ) (270 ) (317 ) 1 The exceptional item reflects the impairment of tax losses originally expected to be recoverable against taxable profits from the Group’s Potash assets. The impairment is included in Discontinued operations as the entity with the losses transferred to Woodside and therefore the losses are no longer available to the Group. Year ended 30 June 2020 Gross Tax Net US$M US$M US$M Exceptional items by category COVID-19 (6 ) 2 (4 ) Total (6 ) 2 (4 ) Attributable to non-controlling – – – Attributable to BHP shareholders (6 ) 2 (4 ) |
Summary of Net Gain Loss on Merger | Details of the net gain on Petroleum merger with Woodside is presented below: 2022 US$M Assets Cash and cash equivalents 399 Trade and other receivables 1,560 Other financial assets 91 Inventories 295 Property, plant and equipment 12,055 Intangible assets 66 Investments accounted for using the equity method 240 Deferred tax assets 1,470 Other 18 Total assets 16,194 Liabilities Trade and other payables 913 Interest bearing liabilities 243 Tax payables 300 Provisions 4,518 Deferred income 48 Total liabilities 6,022 Net assets 10,172 Fair value of Woodside shares 1 19,566 Net cash completion payment on merger of Petroleum with Woodside 2 (683 ) Foreign currency translation reserve transferred to the income statement 54 Other provisions and related indemnities recognised at completion (353 ) Transaction and other directly attributable costs (245 ) Income tax expense (8 ) Net gain on Petroleum merger with Woodside 8,159 1 Represents the consideration received being the fair value of 914,768,948 Woodside ordinary shares received using the closing ASX share price of A$29.76 on 31 May 2022 (US$21.39 equivalent based on an exchange rate of AUD/USD 0.7187). 2 Reflects the net cash flows generated by BHP Petroleum between 1 July 2021 and Completion Date adjusted for dividends Woodside would have paid on the newly issued Woodside ordinary shares, had the m |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Investments accounted for using equity method [abstract] | |
Summary of Significant Subsidiaries | Significant subsidiaries of the Group are those with the most significant contribution to the Group’s net profit or net assets. The Group’s interest in the subsidiaries’ results are listed in the table below. For a list of the Group’s subsidiaries, refer to Exhibit 8.1 - List of Subsidiaries. Country of Principal activity Group’s interest Significant subsidiaries 2022 % 2021 Coal BHP Mitsui Coal Pty Ltd 1 Australia Coal mining – 80 Hunter Valley Energy Coal Pty Ltd Australia Coal mining 100 100 Copper BHP Olympic Dam Corporation Pty Ltd Australia Copper and uranium mining 100 100 Compañia Minera Cerro Colorado Limitada Chile Copper mining 100 100 Minera Escondida Ltda 2 Chile Copper mining 57.5 57.5 Minera Spence SA Chile Copper mining 100 100 Iron Ore BHP Iron Ore (Jimblebar) Pty Ltd 3 Australia Iron ore mining 85 85 BHP Iron Ore Pty Ltd Australia Service company 100 100 BHP (Towage Service) Pty Ltd Australia Towing services 100 100 Marketing BHP Billiton Freight Singapore Pte Limited Singapore Freight services 100 100 BHP Billiton Marketing AG Switzerland Marketing and trading 100 100 BHP Billiton Marketing Asia Pte Ltd Singapore Marketing support and other services 100 100 Group and Unallocated BHP Billiton Finance B.V. The Netherlands Finance 100 100 BHP Billiton Finance Limited Australia Finance 100 100 BHP Billiton Finance (USA) Limited Australia Finance 100 100 BHP Canada Inc. Canada Potash development 100 100 BHP Group Operations Pty Ltd Australia Administrative services 100 100 BHP Nickel West Pty Ltd Australia Nickel mining, smelting, refining and administrative services 100 100 WMC Finance (USA) Limited Australia Finance 100 100 1 The divestment of BHP’s 80 per cent interest in BHP Mitsui Coal Pty Ltd (BMC) to Stanmore Resources Limited was completed on 3 May 2022. Refer to note 3 ‘Exceptional items’ for further information. 2 As the Group has the ability to direct the relevant activities at Minera Escondida Ltda, it has control over the entity. The assessment of the most relevant activity in this contractual arrangement is subject to judgement. The Group establishes the mine plan and the operating budget and has the ability to appoint the key management personnel, demonstrating that the Group has the existing rights to direct the relevant activities of Minera Escondida Ltda. 3 The Group has an effective interest of 92.5 per cent in BHP Iron Ore (Jimblebar) Pty Ltd; however, by virtue of the shareholder agreement with ITOCHU Iron Ore Australia Pty Ltd and Mitsui & Co. Iron Ore Exploration & Mining Pty Ltd, the Group’s interest in the Jimblebar mining operation is 85 per cent, which is consistent with the other respective contractual arrangements at Western Australia Iron Ore. |
Investments accounted for usi_2
Investments accounted for using the equity method (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [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 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 Associate or joint venture Principal activity Reporting Ownership interest 2022 % 2021 Cerrejón 1 Anguilla/Colombia/Ireland Associate Coal mining in 31 – 33.33 Compañía Minera Antamina S.A. (Antamina) Peru Associate Copper and zinc 31 33.75 33.75 Samarco Mineração S.A. (Samarco) Brazil Joint venture Iron ore mining 31 50.00 50.00 1 At 30 June 2021, the Group’s investment in Cerrejón was classified as ‘Assets held for sale’ and payables owed to Cerrejón was classified as ‘Liabilities directly associated with the assets held for sale’. During FY2022 the Group received dividends of US$238 million from Cerrejón and on 11 January 2022, BHP completed the sale of its 33.33 per cent interest in Cerrejón to Glencore. In accordance with the sale agreement, the final sale proceeds was adjusted for the dividends received to a final number of US$50 million. |
Summary of Movements of Investments Accounted for using the Equity Method | The movement for the year in the Group’s investments accounted for using the equity method is as follows: Year ended 30 June 2022 US$M Investment in Investment in Total equity At the beginning of the financial year 1,742 – 1,742 Loss from equity accounted investments, related impairments and expenses 1,2 653 (676 ) (23 ) Investment in equity accounted investments 52 – 52 Dividends received from equity accounted investments 3 (787 ) – (787 ) Divestment and demerger of equity accounted investments (240 ) – (240 ) Other – 676 676 At the end of the financial year 1,420 – 1,420 1 US$(676) million represents US$(663) million movement in the Samarco dam failure provision including US$(747) million change in estimate and US$84 million exchange translation, US$68 million movement in provisions related to the Samarco Germano dam decommissioning provision including US$56 million change in estimate and US$12 million exchange translation and US$(81) 2 Includes share of operating losses of equity accounted investments from Discontinued operations of US$4 million (2021: US$6 million; 2020: US$4 million). Refer to note 27 ‘Discontinued operations’. 3 Includes dividends received from equity accounted investments from Discontinued operations of US$10 million (2021: US$10 million; 2020: US$12 million). |
Summary of Financial Information of Significant Equity Accounted Investments | T he following table summarises the financial information relating to each of the Group’s significant equity accounted investments. BHP Brasil’s 50 per cent portion of Samarco’s commitments, for which BHP Brasil has no funding obligation, is US$350 million (2021: US$350 million). Associates Joint ventures 2022 US$M Antamina Individually 1 Samarco 2 Individually Total Current assets 1,275 499 3 Non-current 5,293 5,717 Current liabilities (847 ) (10,830 ) 4 Non-current (1,851 ) (7,873 ) Net assets/(liabilities) – 100% 3,870 (12,487 ) Net assets/(liabilities) – Group share 1,306 (6,244 ) Adjustments to net assets related to accounting policy adjustments – 268 5 Investment in Samarco – 516 6 Impairment of the carrying value of the investment in Samarco – (1,041 ) 7 Additional share of Samarco losses – 5,326 8 Unrecognised losses – 1,175 9 Carrying amount of investments accounted for using the equity 1,306 114 – – 1,420 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 ) 11 Impairment of the carrying value of the investment in Samarco – – Additional share of Samarco losses – 290 Fair value change on forward exchange derivatives – (81 ) Unrecognised losses – (609 ) 9 Profit/(loss) from equity accounted investments, related 720 (63 ) (676 ) – (19 ) Comprehensive income – 100% 2,133 (528 ) Share of comprehensive income/(loss) – Group share in equity 720 (63 ) (676 ) – (19 ) Dividends received from equity accounted investments 776 11 – – 787 Associates Joint ventures 2021 US$M Restated Antamina Cerrejón Individually 1 Samarco 2 Individually Total Current assets 1,499 – 509 3 Non-current 4,885 – 4,380 Current liabilities (1,285 ) – (9,222 ) 4 Non-current (1,062 ) – (7,627 ) Net assets/(liabilities) – 100% 4,037 – (11,960 ) Net assets/(liabilities) – Group share 1,362 – (5,980 ) Adjustments to net assets related to accounting policy adjustments – – 280 5 Investment in Samarco – – 516 6 Impairment of the carrying value of the investment in Samarco – – (1,041 ) 7 Additional share of Samarco losses – – 4,442 8 Unrecognised losses – – 1,783 9 Carrying amount of investments accounted for using the equity 1,362 – 380 – – 1,742 Revenue – 100% 4,822 844 814 Profit/(loss) from Continuing operations – 100% 1,847 (43 ) (2,202 ) 10 Share of profit/(loss) of equity accounted investments 623 (14 ) (1,076 ) 11 Impairment of the carrying value of the investment in Cerrejón – (466 ) – Impairment of the carrying value of the investment in Samarco – – (111 ) 7 Additional share of Samarco losses – – 85 Fair value change on forward exchange derivatives – – 136 Unrecognised losses – – (24 ) 9 Profit/(loss) from equity accounted investments, related impairments 623 (480 ) (68 ) (990 ) – (915 ) Comprehensive income/(loss) – 100% 1,847 (43 ) (2,202 ) Share of comprehensive income/(loss) – Group share in equity accounted investments 623 (480 ) (68 ) (990 ) – (915 ) Dividends received from equity accounted investments 714 13 10 – – 737 Associates Joint ventures 2020 US$M Restated Antamina Cerrejón Individually Samarco 2 Individually Total Revenue – 100% 2,464 1,091 26 Profit/(loss) from Continuing operations – 100% 629 (182 ) (3,617 ) 10 Share of profit/(loss) of equity accounted investments 212 (68 ) (1,918 ) 11 Impairment of the carrying value of the investment in Samarco – – (95 ) 7 Additional share of Samarco losses – – 93 Unrecognised losses – – 1,412 9 Profit/(loss) from equity accounted investments, related impairments and expenses 212 (68 ) (144 ) (508 ) – (508 ) Comprehensive income/(loss) – 100% 629 (182 ) (3,617 ) Share of comprehensive income/(loss) – Group share in equity accounted investments 212 (68 ) (144 ) (508 ) – (508 ) Dividends received from equity accounted investments 105 9 12 – – 126 1 The unrecognised share of gain for the period was US$ million), which decreased the cumulative losses to US$ 2 Refer to note 4 ‘Significant events – Samarco dam failure’ for further information regarding the financial impact of the Samarco dam failure in November 2015 on BHP Brasil’s share of Samarco’s losses. 3 Includes cash and cash equivalents of US$106 million (2021: US$134 million). 4 Includes current financial liabilities (excluding trade and other payables and provisions) of US$6,837 million (2021: US$6,567 million). 5 Relates mainly to dividends declared by Samarco that remain unpaid at balance date and which, in accordance with the Group’s accounting policy, are recognised when received not receivable. 6 Working capital funding provided to Samarco during the period is capitalised as part of the Group’s investments in joint ventures and disclosed as an impairment included within the Samarco impairment expense line item. 7 In the year ended 30 June 2016 BHP Brasil adjusted its investment in Samarco to US$ 8 BHP Brasil has recognised accumulated additional share of Samarco losses of US$(5,326) million resulting from US$(4,539) million provisions relating to the Samarco dam failure, including US$(787) 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$205 million (2021: US$154 million; 2020: US$84 million), interest income of US$19 million (2021: US$1 million; 2020: US$16 million), interest expense of US$628 million (2021: US$492 million; 2020 US$ 11 Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable. |
Interests in joint operations (
Interests in joint operations (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Investments accounted for using equity method [abstract] | |
Summary of Significant Interests in Joint Operations | Significant joint operations of the Group are those with the most significant contributions to the Group’s net profit or net assets. The Group’s interest in the joint operations results are listed in the table below. For a list of the Group’s investments in joint operations, refer to Exhibit 8.1 - List of Subsidiaries. Group’s interest Significant joint operations Country of operation Principal activity 2022 % 2021 Mt Goldsworthy 1 Australia Iron ore mining 85 85 Mt Newman 1 Australia Iron ore mining 85 85 Yandi 1 Australia Iron ore mining 85 85 Central Queensland Coal Associates Australia Coal mining 50 50 Atlantis 2 US Hydrocarbons production – 44 Bass Strait 2 Australia Hydrocarbons production – 50 Macedon 2 Australia Hydrocarbons production – 71.43 Mad Dog 2 US Hydrocarbons production – 23.9 North West Shelf 2 Australia Hydrocarbons production – 12.5–16.67 Pyrenees 2 Australia Hydrocarbons production – 40–71.43 ROD Integrated Development 2 Algeria Hydrocarbons production – 28.85 Shenzi 2 US Hydrocarbons production – 72 Trinidad/Tobago 2 Trinidad and Tobago Hydrocarbons production – 45–68.46 1 These contractual arrangements are controlled by the Group and do not meet the definition of joint operations. However, as they are formed by contractual arrangement and are not entities, the Group recognises its share of assets, liabilities, revenue and expenses arising from these arrangements. 2 These joint operations formed part of the Group’s oil and gas portfolio that merged with Woodside on 1 June 2022. Refer to note 27 ‘Discontinued operations’ for details. |
Summary of Assets Held in Joint Operations | Assets held in joint operations subject to significant restrictions are as follows: Group’s share 2022 2021 US$M US$M Current assets 1,928 2,260 Non-current 26,256 38,725 Total assets 1 28,184 40,985 1 While the Group is unrestricted in its ability to sell a share of its interest in these joint operations, it does not have the right to sell individual assets that are used in these joint operations without the unanimous consent of the other participants. The assets in these joint operations are also restricted to the extent that they are only available to be used by the joint operation itself and not by other operations of the Group. |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Transactions with Related Parties | Further disclosures related to related party transactions are as follows: Transactions with related parties Joint ventures Associates 2022 2021 2022 2021 US$M US$M US$M US$M Sales of goods/services – – – – Purchases of goods/services – – 1,852.132 1,564.073 Interest income – – 0.398 2.241 Interest expense – – 0.005 – Dividends received – – 787.208 737.250 Net loans made to/(repayments from) related parties – – (23.554 ) (12.108 ) |
Summary of Outstanding Balances with Related Parties | Outstanding balances with related parties Joint ventures Associates 2022 2021 2022 2021 US$M US$M US$M US$M Trade amounts owing to related parties – – 351.607 316.269 Loan amounts owing to related parties – – – 17.097 Trade amounts owing from related parties – – 6.855 0.004 Loan amounts owing from related parties – – – 40.651 |
Contingent liabilities (Tables)
Contingent liabilities (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Contingent Liabilities | 2022 2021 US$M US$M Associates and joint ventures 1 1,541 1,532 Subsidiaries and joint operations 1 925 1,615 Total 2,466 3,147 1 There are a number of matters, for which it is not possible at this time to provide a range of possible outcomes or a reliable estimate of potential future exposures, and for which no amounts have been included in the table above. |
Auditor's remuneration (Tables)
Auditor's remuneration (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Text block [abstract] | |
Summary of Auditors' Remuneration | 2022 2021 2020 US$M US$M US$M Fees payable to the Group’s auditors for assurance services Audit of the Group’s Annual Report 9.816 10.642 11.196 Audit of the accounts of subsidiaries, joint ventures and associates 0.605 1.234 1.262 Audit-related assurance services required by legislation to be provided by the auditor 1.933 1.770 1.815 Other assurance and agreed-upon procedures under legislation or contractual arrangements 7.938 1.867 2.003 Total assurance services 20.292 15.513 16.276 Fees payable to the Group’s auditors for non-assurance Other services – – 0.400 Total other services – – 0.400 Total fees 20.292 15.513 16.676 |
Transition risks - Additional i
Transition risks - Additional information (Detail) $ in Millions | Jul. 31, 2019 USD ($) |
Transition Risks [Abstract] | |
Climate investment program minimum investment amount | $ 400 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2022 Segment | |
Disclosure of operating segments [line items] | |
Number of reportable segment | 3 |
Segment Reporting - Summary of
Segment Reporting - Summary of Reportable Segments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reportable segments [line items] | |||
Revenue | $ 65,098 | $ 56,921 | $ 38,924 |
Underlying EBITDA | 40,634 | 35,073 | 19,870 |
Depreciation and amortisation | (5,683) | (5,084) | (4,667) |
Impairment losses | (515) | (136) | (73) |
Underlying EBIT | 34,436 | 29,853 | 15,130 |
Exceptional items | (330) | (4,338) | (1,447) |
Net finance costs | (969) | (1,223) | (858) |
Profit before taxation | 33,137 | 24,292 | 12,825 |
Capital expenditure (cash basis) | 5,855 | 5,612 | 5,991 |
(Loss)/profit from equity accounted investments, related impairments and expenses | (19) | (915) | (508) |
Investments accounted for using the equity method | 1,420 | 1,742 | 2,585 |
Total assets | 95,166 | 108,927 | 105,733 |
Total liabilities | 46,400 | 53,322 | 53,558 |
Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 65,098 | 56,921 | 38,924 |
Operating segments [member] | Copper [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 16,849 | 15,726 | 10,666 |
Underlying EBITDA | 8,565 | 8,489 | 4,347 |
Depreciation and amortisation | (1,765) | (1,608) | (1,740) |
Impairment losses | (470) | (72) | (17) |
Underlying EBIT | 6,330 | 6,809 | 2,590 |
Exceptional items | (81) | (144) | (1,228) |
Capital expenditure (cash basis) | 2,528 | 2,180 | 2,434 |
(Loss)/profit from equity accounted investments, related impairments and expenses | 577 | 692 | 67 |
Investments accounted for using the equity method | 1,415 | 1,482 | 1,558 |
Total assets | 32,762 | 31,517 | 28,892 |
Total liabilities | 5,342 | 4,589 | 3,535 |
Operating segments [member] | Copper [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 16,849 | 15,726 | 10,666 |
Operating segments [member] | Iron Ore [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 30,767 | 34,475 | 20,797 |
Underlying EBITDA | 21,707 | 26,278 | 14,554 |
Depreciation and amortisation | (2,203) | (1,971) | (1,608) |
Impairment losses | (33) | (13) | (22) |
Underlying EBIT | 19,471 | 24,294 | 12,924 |
Exceptional items | (648) | (1,319) | (614) |
Capital expenditure (cash basis) | 1,848 | 2,188 | 2,328 |
(Loss)/profit from equity accounted investments, related impairments and expenses | (595) | (1,126) | (508) |
Total assets | 24,613 | 26,171 | 23,841 |
Total liabilities | 7,790 | 7,508 | 5,441 |
Operating segments [member] | Iron Ore [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 30,767 | 34,475 | 20,797 |
Operating segments [member] | Coal [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 15,549 | 5,154 | 6,242 |
Underlying EBITDA | 9,504 | 288 | 1,632 |
Depreciation and amortisation | (762) | (845) | (807) |
Impairment losses | (9) | (20) | (14) |
Underlying EBIT | 8,733 | (577) | 811 |
Exceptional items | 849 | (1,567) | (18) |
Capital expenditure (cash basis) | 621 | 579 | 603 |
(Loss)/profit from equity accounted investments, related impairments and expenses | (480) | (68) | |
Investments accounted for using the equity method | 776 | ||
Total assets | 11,524 | 11,030 | 12,110 |
Total liabilities | 3,874 | 3,518 | 2,601 |
Operating segments [member] | Coal [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 15,549 | 5,154 | 6,241 |
Operating segments [member] | Coal [member] | Inter-segment revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1 | ||
Group and unallocated items/eliminations [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1,933 | 1,566 | 1,219 |
Underlying EBITDA | 858 | 18 | (663) |
Depreciation and amortisation | (953) | (660) | (512) |
Impairment losses | (3) | (31) | (20) |
Underlying EBIT | (98) | (673) | (1,195) |
Exceptional items | (450) | (1,308) | 413 |
Capital expenditure (cash basis) | 858 | 665 | 626 |
(Loss)/profit from equity accounted investments, related impairments and expenses | (1) | (1) | 1 |
Investments accounted for using the equity method | 5 | 260 | 251 |
Total assets | 26,267 | 40,209 | 40,890 |
Total liabilities | 29,394 | 37,707 | 41,981 |
Group and unallocated items/eliminations [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | $ 1,933 | $ 1,566 | 1,220 |
Group and unallocated items/eliminations [member] | Inter-segment revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | $ (1) |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reportable segments [line items] | |||
Exceptional impairment losses | $ 2,371 | $ 409 | |
Exceptional items | (32,371) | (30,871) | (25,453) |
Other income | 1,398 | 380 | 720 |
Group and unallocated items/eliminations [member] | Samarco dam failure [member] | |||
Disclosure of reportable segments [line items] | |||
Exceptional items | (13) | (14) | (32) |
Other income | $ 0 | $ 34 | $ 489 |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Geographical Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of geographical areas [line items] | |||
Revenue | $ 65,098 | $ 56,921 | $ 38,924 |
Non-current assets | 66,502 | 82,234 | 84,262 |
Unallocated assets [member] | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 858 | 3,522 | 6,210 |
Australia [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 1,649 | 1,871 | 1,212 |
Non-current assets | 43,250 | 48,612 | 48,236 |
Europe [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 2,129 | 886 | 963 |
China [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 36,618 | 39,653 | 26,503 |
Japan [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 8,401 | 4,387 | 3,314 |
India [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 5,215 | 2,189 | 1,475 |
South Korea [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 4,786 | 3,420 | 2,666 |
Rest of Asia [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 4,303 | 2,934 | 1,730 |
North America [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 1,282 | 1,147 | 719 |
Non-current assets | 3,964 | 9,701 | 9,682 |
South America [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 715 | 426 | 315 |
Non-current assets | 18,280 | 18,548 | 18,179 |
Rest of world [member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 8 | 27 | |
Non-current assets | $ 150 | $ 1,851 | $ 1,955 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by Segment and Asset (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reportable segments [line items] | |||
Revenue | $ 65,098 | $ 56,921 | $ 38,924 |
Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 65,098 | 56,921 | 38,924 |
Operating segments [member] | Copper [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 16,849 | 15,726 | 10,666 |
Operating segments [member] | Copper [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 16,849 | 15,726 | 10,666 |
Operating segments [member] | Copper [member] | Escondida [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 9,500 | 9,470 | 6,719 |
Operating segments [member] | Copper [member] | Pampa Norte [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 2,670 | 1,801 | 1,395 |
Operating segments [member] | Copper [member] | Olympic Dam [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1,776 | 2,211 | 1,463 |
Operating segments [member] | Copper [member] | Third party products [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 2,903 | 2,244 | 1,089 |
Operating segments [member] | Iron Ore [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 30,767 | 34,475 | 20,797 |
Operating segments [member] | Iron Ore [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 30,767 | 34,475 | 20,797 |
Operating segments [member] | Iron Ore [member] | Third party products [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 19 | 18 | 15 |
Operating segments [member] | Iron Ore [member] | Western Australia Iron Ore [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 30,632 | 34,337 | 20,663 |
Operating segments [member] | Iron Ore [member] | Other [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 116 | 120 | 119 |
Operating segments [member] | Coal [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 15,549 | 5,154 | 6,242 |
Operating segments [member] | Coal [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 15,549 | 5,154 | 6,241 |
Operating segments [member] | Coal [member] | Inter-segment revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1 | ||
Operating segments [member] | Coal [member] | BHP Mitsubishi Alliance [Member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 10,254 | 3,537 | 4,422 |
Operating segments [member] | Coal [member] | New South Wales Energy Coal [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 3,035 | 839 | 885 |
Operating segments [member] | Coal [member] | Other [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 2,260 | 778 | 935 |
Group and unallocated items/eliminations [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1,933 | 1,566 | 1,219 |
Group and unallocated items/eliminations [member] | Revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | $ 1,933 | $ 1,566 | 1,220 |
Group and unallocated items/eliminations [member] | Inter-segment revenue [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | $ (1) |
Revenue - Summary of Revenue _2
Revenue - Summary of Revenue by Segment and Asset (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reportable segments [line items] | |||
Revenue | $ 65,098 | $ 56,921 | $ 38,924 |
Group and unallocated items/eliminations [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1,933 | 1,566 | 1,219 |
Only copper [member] | Copper [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 15,992 | 14,812 | 10,044 |
Other metals [member] | Copper [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 857 | 914 | 622 |
Metallurgical coal [member] | Coal [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 11,990 | 4,260 | 5,311 |
Thermal coal [member] | Coal [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 3,559 | 894 | 931 |
Nickel West [member] | Group and unallocated items/eliminations [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | 1,926 | 1,545 | 1,189 |
Other revenue [member] | Group and unallocated items/eliminations [member] | |||
Disclosure of reportable segments [line items] | |||
Revenue | $ 7 | $ 21 | $ 31 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reportable segments [line items] | |||
Revenue from contracts with customers | $ 65,504 | $ 55,562 | $ 38,917 |
Other revenue adjustments | $ (406) | $ 1,359 | $ 7 |
Bottom of range [member] | |||
Disclosure of reportable segments [line items] | |||
Provisional pricing period | 60 days | ||
Top of range [member] | |||
Disclosure of reportable segments [line items] | |||
Provisional pricing period | 120 days |
Exceptional Items - Summary of
Exceptional Items - Summary of Exceptional Items by Category (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of exceptional items [line items] | |||
Exceptional items gross | $ (620) | $ (4,423) | $ (1,540) |
Exceptional items tax | (454) | (1,057) | 239 |
Exceptional items net | (1,074) | (5,480) | (1,301) |
Samarco dam failure [member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (1,032) | (1,087) | (176) |
Exceptional items tax | (31) | (71) | |
Exceptional items net | (1,063) | (1,158) | (176) |
Impairment of US deferred tax assets [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items tax | (423) | ||
Exceptional items net | (423) | ||
Corporate structure unification costs [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (428) | ||
Exceptional items net | (428) | ||
BHP Mitsui Coal (BMC) gain on disposal [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | 840 | 0 | 0 |
Exceptional items net | 840 | ||
Cancellation Of Power Contracts [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (778) | ||
Exceptional items tax | 271 | ||
Exceptional items net | (507) | ||
COVID-19 related costs [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (499) | (177) | |
Exceptional items tax | 138 | 51 | |
Exceptional items net | (361) | (126) | |
Impairment of Energy coal assets [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (1,523) | ||
Exceptional items tax | (651) | ||
Exceptional items net | (2,174) | ||
Impairment of Potash assets [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (1,314) | ||
Exceptional items tax | (473) | ||
Exceptional items net | (1,787) | ||
Cerro Colorado impairment [Member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (409) | ||
Exceptional items tax | (83) | ||
Exceptional items net | (492) | ||
Attributable to non-controlling interests [member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (34) | (291) | |
Exceptional items tax | 10 | 90 | |
Exceptional items net | (24) | (201) | |
Attributable to BHP shareholders [member] | |||
Disclosure of exceptional items [line items] | |||
Exceptional items gross | (620) | (4,389) | (1,249) |
Exceptional items tax | (454) | (1,067) | 149 |
Exceptional items net | $ (1,074) | $ (5,456) | $ (1,100) |
Exceptional Items - Additional
Exceptional Items - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
May 03, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of exceptional items [line items] | ||||
Exceptional items net | $ 1,074 | $ 5,480 | $ 1,301 | |
BHP Mitsui Coal Pty Ltd [member] | ||||
Disclosure of exceptional items [line items] | ||||
Group's interest | 80% | |||
Samarco dam failure [member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | 1,063 | $ 1,158 | 176 | |
Cerro Colorado impairment [Member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | $ 492 | |||
Current environmental licence, Expiry date | CY2023 | |||
New South Wales Energy Coal [member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | 1,704 | |||
Cerrejón [Member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | 470 | |||
Impairment of Potash assets [Member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | $ 1,787 | |||
Impairment of US Deferred Tax Assets [Member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | 423 | |||
BHP Mitsui Coal or BMC Gain on Disposal [Member] | ||||
Disclosure of exceptional items [line items] | ||||
Exceptional items net | $ (840) | |||
BHP Mitsui Coal or BMC Gain on Disposal [Member] | BHP Mitsui Coal Pty Ltd [member] | ||||
Disclosure of exceptional items [line items] | ||||
Cash flows from losing control of subsidiaries or other businesses | $ 1,100 | |||
Proceeds from divestiture of interest in a subsidiary towards preliminary completion adjustment | 218 | |||
Deferred Consideration receivable on divestiture of interest in a subsidiary | 100 | |||
Deferred Price linked earnout consideration receivable on divestiture of interest in a subsidiary | $ 150 | |||
Group's interest | 80% | |||
Cash due period | 6 months | |||
Price linked earn out payable year | 2024 calendar year | |||
Deferred Price Linked Earnout Discounted on Divestiture of Interest in a Subsidiary | $ 122 |
Exceptional Items - Summary o_2
Exceptional Items - Summary of Exceptional Items Related to the Samarco Dam Failure (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of exceptional items [line items] | |||
Other income | $ 1,398 | $ 380 | $ 720 |
Expenses excluding net finance costs: | |||
Expenses excluding net finance costs | (32,371) | (30,871) | (25,453) |
Loss from equity accounted investments, related impairments and expenses: | |||
Samarco impairment expense | (515) | (2,507) | (482) |
Fair value change on forward exchange derivatives | 29 | (87) | (393) |
Net finance costs | (969) | (1,223) | (858) |
Income tax expense | (10,737) | (10,616) | (4,197) |
Total | (1,074) | (5,480) | (1,301) |
Samarco dam failure [member] | |||
Disclosure of exceptional items [line items] | |||
Other income | 34 | 489 | |
Expenses excluding net finance costs: | |||
Expenses excluding net finance costs | (66) | (46) | (64) |
Loss from equity accounted investments, related impairments and expenses: | |||
Samarco impairment expense | (111) | (95) | |
Samarco Germano dam decommissioning | 68 | (15) | 46 |
Samarco dam failure provision | (663) | (1,000) | (459) |
Fair value change on forward exchange derivatives | (81) | 136 | |
Net finance costs | (290) | (85) | (93) |
Income tax expense | (31) | (71) | |
Total | $ (1,063) | $ (1,158) | $ (176) |
Exceptional Items - Summary o_3
Exceptional Items - Summary of Gain on Disposal (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Assets | |||
Cash and cash equivalents | $ 17,236 | $ 15,246 | $ 13,426 |
Trade and other receivables | 5,579 | 6,396 | |
Other financial assets | 1,431 | 1,840 | |
Inventories | 6,250 | 5,784 | |
Property, plant and equipment | 61,295 | 73,813 | 72,362 |
Total assets | 95,166 | 108,927 | 105,733 |
Liabilities | |||
Trade and other payables | 6,687 | 7,027 | |
Deferred tax liabilities | 3,063 | 3,314 | |
Total liabilities | 46,400 | 53,322 | $ 53,558 |
Net assets disposed | 48,766 | 55,605 | |
Gross consideration | 683 | ||
Gain on disposal | 840 | $ (2) | |
BHP Mitsui Coal Pty Ltd [member] | BHP Mitsui Coal or BMC Gain on Disposal [Member] | |||
Assets | |||
Cash and cash equivalents | 63 | ||
Trade and other receivables | 360 | ||
Other financial assets | 26 | ||
Inventories | 92 | ||
Property, plant and equipment | 1,214 | ||
Total assets | 1,755 | ||
Liabilities | |||
Trade and other payables | 253 | ||
Interest bearing liabilities | 249 | ||
Tax payables | 9 | ||
Provisions | 425 | ||
Deferred tax liabilities | 31 | ||
Total liabilities | 967 | ||
Net assets disposed | 788 | ||
Less non-controlling interest share of net assets disposed | 157 | ||
BHP share of net assets disposed | 631 | ||
Gross consideration | 1,318 | ||
Transaction and other directly applicable costs | (69) | ||
Deferred consideration | 222 | ||
Gain on disposal | $ 840 |
Significant Events - Additional
Significant Events - Additional Information (Detail) R$ in Millions, $ in Millions | 12 Months Ended | |||||
Aug. 08, 2018 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 BRL (R$) | Jun. 30, 2020 USD ($) | Aug. 08, 2018 BRL (R$) | |
Disclosure of significant events [line items] | ||||||
Estimated financial effect of contingent liabilities | $ 2,466 | $ 3,147 | ||||
Income recognised from insurance settlements | $ 573 | |||||
Termination of criminal charges against affected individuals by the federal court | 8 | |||||
Appeal against termination of criminal charges still pending in federal court | 7 | |||||
Framework agreement [member] | Definitive And Substantive Settlement Obligation Member [Member] | ||||||
Disclosure of significant events [line items] | ||||||
Estimated financial effect of contingent liabilities | $ 30,000 | R$ 155000 | ||||
Samarco dam failure [member] | ||||||
Disclosure of significant events [line items] | ||||||
Percentage of charges recognised in Group's results | 100% | |||||
Provision in addition to obligations under the Framework Agreement | $ 3,421 | 2,792 | $ 2,051 | |||
Samarco dam failure [member] | Framework agreement [member] | ||||||
Disclosure of significant events [line items] | ||||||
Term of agreement | 15 years | |||||
Term of agreement renewable | 1 year | |||||
Samarco dam failure [member] | Governance Agreement [member] | Federal public prosecution office claim [member] | ||||||
Disclosure of significant events [line items] | ||||||
Term of agreement | 2 years | |||||
Estimated financial effect of contingent liabilities | $ 30,000 | 155,000 | ||||
Preliminary agreement suspended amount | $ 1,500 | R$ 7700 | ||||
Samarco dam failure [member] | Governance Agreement [member] | Federal public prosecution office claim [member] | Definitive And Substantive Settlement Obligation Member [Member] | ||||||
Disclosure of significant events [line items] | ||||||
Estimated financial effect of contingent liabilities | $ 30,000 | 155,000 | ||||
Samarco Mineracao S.A. [member] | ||||||
Disclosure of significant events [line items] | ||||||
Percentage of interest in joint venture investment | 50% | |||||
Samarco Mineracao S.A. [member] | Samarco dam failure [member] | ||||||
Disclosure of significant events [line items] | ||||||
Commitments | $ 700 | 700 | ||||
Samarco Mineracao S.A. [member] | Samarco dam failure [member] | Brazilian Social Contribution Levy [Member] | ||||||
Disclosure of significant events [line items] | ||||||
Estimated financial effect of contingent liabilities | 1,200 | 6,200 | ||||
Samarco Mineracao S.A. [member] | Samarco dam failure [member] | Brazilian Corporate Income Tax Rate [Member] | ||||||
Disclosure of significant events [line items] | ||||||
Estimated financial effect of contingent liabilities | 900 | 4,800 | ||||
Samarco Mineracao S.A. [member] | Samarco dam failure [member] | Framework agreement [member] | ||||||
Disclosure of significant events [line items] | ||||||
Provision in addition to obligations under the Framework Agreement | 300 | 200 | ||||
BHP Brasil Ltda [member] | Samarco Germano dam decommissioning [member] | ||||||
Disclosure of significant events [line items] | ||||||
Provision | $ 184 | 232 | ||||
Percentage of decommissioning cost | 50% | |||||
BHP Brasil Ltda [member] | Framework agreement [member] | Insurance bonds [member] | ||||||
Disclosure of significant events [line items] | ||||||
Interim security amount preliminary agreement | $ 250 | 1,300 | ||||
BHP Brasil Ltda [member] | Samarco dam failure [member] | Framework agreement [member] | ||||||
Disclosure of significant events [line items] | ||||||
Provision in addition to obligations under the Framework Agreement | $ 3,200 | 2,600 | ||||
Percentage of remaining costs expected to be incurred by December 2024 | 95% | |||||
BHP Brasil Ltda [member] | Samarco dam failure [member] | Framework agreement [member] | Insurance bonds [member] | ||||||
Disclosure of significant events [line items] | ||||||
Interim security amount preliminary agreement | $ 420 | 2,200 | ||||
BHP Brasil Ltda [member] | Samarco dam failure [member] | Framework agreement [member] | Charge over assets [member] | ||||||
Disclosure of significant events [line items] | ||||||
Interim security amount preliminary agreement | 150 | 800 | ||||
BHP Brasil Ltda [member] | Samarco dam failure [member] | Framework agreement [member] | Liquid assets [member] | ||||||
Disclosure of significant events [line items] | ||||||
Interim security amount preliminary agreement | 20 | R$ 100 | ||||
BHP Brasil Ltda [member] | Samarco Mineracao S.A. [member] | ||||||
Disclosure of significant events [line items] | ||||||
Investment in Samarco | 0 | |||||
Dividends received | 0 | |||||
Profits available for distribution | $ 0 | |||||
Percentage of interest in joint venture investment | 50% | |||||
Commitments | $ 350 | $ 350 | ||||
BHP Brasil Ltda [member] | Samarco Mineracao S.A. [member] | Samarco dam failure [member] | ||||||
Disclosure of significant events [line items] | ||||||
Commitments amount | $ 1,350 |
Significant Events - Summary of
Significant Events - Summary of Financial Impacts of Samarco Dam Failure (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income statement | |||
Other income | $ 1,398 | $ 380 | $ 720 |
Expenses excluding net finance costs: | |||
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure | (32,371) | (30,871) | (25,453) |
Loss from equity accounted investments, related impairments and expenses: | |||
Samarco impairment expense | (515) | (2,507) | (482) |
Fair value change on forward exchange derivatives | 29 | (87) | (393) |
Loss from operations | (330) | (4,338) | (1,447) |
Net finance costs | (969) | (1,223) | (858) |
Loss before taxation | (620) | (4,423) | (1,540) |
Income tax expense | (10,737) | (10,616) | (4,197) |
Loss after taxation | (1,074) | (5,480) | (1,301) |
Balance sheet movement | |||
Trade and other payables | (727) | (1,149) | 589 |
Cash flow statement | |||
Loss before taxation | (620) | (4,423) | (1,540) |
Adjustments for: | |||
Samarco impairment expense | 515 | 2,507 | 482 |
Fair value change on forward exchange derivatives | (29) | 87 | 393 |
Proceeds of cash management related instruments | 378 | (401) | 85 |
Net finance costs | 969 | 1,223 | 858 |
Changes in assets and liabilities: | |||
Trade and other payables | 727 | 1,149 | (589) |
Net operating cash flows | 32,174 | 27,234 | 15,706 |
Net investing cash flows | (6,959) | (7,845) | (7,616) |
Samarco dam failure [member] | |||
Income statement | |||
Other income | 34 | 489 | |
Expenses excluding net finance costs: | |||
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure | (66) | (46) | (64) |
Loss from equity accounted investments, related impairments and expenses: | |||
Samarco impairment expense | (111) | (95) | |
Samarco Germano dam decommissioning | 68 | (15) | 46 |
Samarco dam failure provision | (663) | (1,000) | (459) |
Fair value change on forward exchange derivatives | (81) | 136 | |
Loss from operations | (742) | (1,002) | (83) |
Net finance costs | (290) | (85) | (93) |
Loss before taxation | (1,032) | (1,087) | (176) |
Income tax expense | (31) | (71) | |
Loss after taxation | (1,063) | (1,158) | (176) |
Balance sheet movement | |||
Trade and other payables | (1) | (5) | (5) |
Derivatives | (160) | 136 | |
Tax liabilities | (31) | (71) | |
Provisions | (629) | (741) | (137) |
Net liabilities | (821) | (681) | (142) |
Cash flow statement | |||
Loss before taxation | (1,032) | (1,087) | (176) |
Adjustments for: | |||
Samarco impairment expense | 111 | 95 | |
Samarco Germano dam decommissioning | (68) | 15 | (46) |
Samarco dam failure provision | 663 | 1,000 | 459 |
Fair value change on forward exchange derivatives | 81 | (136) | |
Proceeds of cash management related instruments | 79 | ||
Net finance costs | 290 | 85 | 93 |
Changes in assets and liabilities: | |||
Trade and other payables | 1 | 5 | 5 |
Net operating cash flows | 14 | (7) | 430 |
Net investment and funding of equity accounted investments | (256) | (470) | (464) |
Net investing cash flows | (256) | (470) | (464) |
Net decrease in cash and cash equivalents | $ (242) | $ (477) | $ (34) |
Significant Events - Summary _2
Significant Events - Summary of Financial Impacts of Samarco Dam Failure (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of exceptional items [line items] | |||
Funding provided during the period | $ (52) | ||
Samarco Germano Dam Decommissioning one [Member] | |||
Disclosure of exceptional items [line items] | |||
Change in estimate | (56) | $ (6) | $ 37 |
Exchange translation | (12) | 21 | (83) |
Utilisation | 0 | (8) | (4) |
Samarco dam failure one [Member] | |||
Disclosure of exceptional items [line items] | |||
Change in estimate | 747 | 842 | 916 |
Exchange translation | (84) | 158 | (457) |
Funding provided during the period | 0 | (111) | (95) |
Utilisation | $ (256) | $ (351) | $ (365) |
Significant Events - Summary _3
Significant Events - Summary of Provision for Samarco Dam Failure (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of other provisions [line items] | ||
Current | $ 3,965 | $ 3,696 |
Non-current | 10,478 | 13,799 |
Samarco dam failure [member] | ||
Disclosure of other provisions [line items] | ||
At the beginning of the financial year | 2,792 | 2,051 |
Movement in provisions | 629 | 741 |
Utilised | (256) | (359) |
Change in estimate - Samarco dam failure provision | 747 | 842 |
Change in estimate - Samarco Germano dam decommissioning | (56) | (6) |
Amortisation of discounting impacting net finance costs | 290 | 85 |
Exchange translation | (96) | 179 |
Current | 1,815 | 1,206 |
Non-current | 1,606 | 1,586 |
At the end of the financial year | 3,421 | 2,792 |
Samarco dam failure provision | 3,237 | 2,560 |
Samarco Germano dam decommissioning provision | $ 184 | $ 232 |
Expenses and Other Income - Sum
Expenses and Other Income - Summary of Expenses and Other Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Employee benefits expense: | |||
Wages, salaries and redundancies | $ 4,197 | $ 4,018 | $ 3,318 |
Employee share awards | 109 | 88 | 90 |
Social security costs | 4 | 3 | 2 |
Pension and other post-retirement obligations | 338 | 274 | 246 |
Less employee benefits expense classified as exploration and evaluation expenditure | (30) | (26) | (15) |
Changes in inventories of finished goods and work in progress | (774) | (321) | (348) |
Raw materials and consumables used | 5,991 | 4,899 | 5,472 |
Freight and transportation | 2,319 | 1,900 | 1,838 |
External services | 4,525 | 4,640 | 3,899 |
Third party commodity purchases | 2,959 | 2,220 | 1,098 |
Net foreign exchange (gains)/losses | (326) | 293 | (617) |
Fair value change on derivatives | (29) | 87 | 393 |
Government royalties paid and payable | 4,014 | 3,080 | 2,171 |
Exploration and evaluation expenditure incurred and expensed in the current period | 199 | 134 | 123 |
Depreciation and amortisation expense | 5,683 | 5,084 | 4,667 |
Net impairments: | |||
Property, plant and equipment | 515 | 2,583 | |
Goodwill and other intangible assets | 52 | ||
All other operating expenses | 2,677 | 1,991 | 2,634 |
Total expenses | 32,371 | 30,871 | 25,453 |
Insurance recoveries | (4) | (46) | (489) |
(Gain)/loss on disposal of subsidiaries and operations | (840) | 2 | |
Dividend income | (241) | (2) | (2) |
Other income | (313) | (334) | (229) |
Total other income | (1,398) | (380) | (720) |
Property, plant and equipment [member] | Continuing operation [member] | |||
Net impairments: | |||
Property, plant and equipment | $ 515 | 2,474 | $ 482 |
Goodwill And Other Intangible Assets [Member] | |||
Net impairments: | |||
Goodwill and other intangible assets | 33 | ||
Goodwill And Other Intangible Assets [Member] | Continuing operation [member] | |||
Net impairments: | |||
Goodwill and other intangible assets | $ 33 |
Expenses and Other Income - S_2
Expenses and Other Income - Summary of Expenses and Other Income (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Disclosure of Detailed Information About Expenses and Other Income [Line Items] | |
Dividends received from investments accounted for using equity method, classified as investing activities | $ 787 |
Carbonesdel Cerrejon Limited Liability Corporation [Member] | |
Disclosure of Detailed Information About Expenses and Other Income [Line Items] | |
Dividends received from investments accounted for using equity method, classified as investing activities | 238 |
Completion proceeds | $ 50 |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Major components of tax expense (income) [abstract] | |||
Current tax expense | $ 10,673 | $ 9,018 | $ 4,285 |
Deferred tax expense/(benefit) | 64 | 1,598 | (88) |
Total taxation expense | $ 10,737 | $ 10,616 | $ 4,197 |
Income Tax Expense - Summary _2
Income Tax Expense - Summary of Factors Affecting Income Tax Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income tax expense differs to the standard rate of corporation tax as follows: | |||
Profit before taxation | $ 33,137 | $ 24,292 | $ 12,825 |
Tax on profit at Australian prima facie tax rate of 30 per cent | 9,941 | 7,288 | 3,847 |
Non-tax effected operating losses and capital gains | 1,087 | 2,640 | 409 |
Tax on remitted and unremitted foreign earnings | 441 | 485 | 225 |
Investment and development allowance | (99) | ||
Tax rate changes | (1) | (8) | |
Recognition of previously unrecognised tax assets | (3) | (28) | (7) |
Tax effect of loss from equity accounted investments, related impairments and expenses | (19) | 315 | 153 |
Amounts (over)/under provided in prior years | (80) | (57) | 13 |
Foreign exchange adjustments | (233) | (33) | 41 |
Impact of tax rates applicable outside of Australia | (801) | (669) | (272) |
Other | 97 | 436 | (86) |
Income tax expense | 10,430 | 10,376 | 4,216 |
Royalty-related taxation (net of income tax benefit) | 307 | 240 | (19) |
Total taxation expense | $ 10,737 | $ 10,616 | $ 4,197 |
Income Tax Expense - Summary _3
Income Tax Expense - Summary of Factors Affecting Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income tax expense benefits [line items] | |||
Australian prima facie tax rate | 30% | 30% | 30% |
Income Tax Expense - Summary _4
Income Tax Expense - Summary of Income Tax Recognised in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flow hedges: | |||
Gains/(losses) taken to equity | $ 274 | $ (259) | $ 94 |
(Gains)/losses transferred to the income statement | (264) | 252 | (89) |
Others | (1) | ||
Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement | 10 | (8) | 5 |
Items that will not be reclassified to the income statement: | |||
Remeasurement gains/(losses) on pension and medical schemes | (9) | (21) | 25 |
Others | 1 | 1 | |
Income tax (charge)/credit relating to items that will not be reclassified to the income statement | (9) | (20) | 26 |
Total income tax credit/(charge) relating to components of other comprehensive income | $ 1 | $ (28) | $ 31 |
Income Tax Expense - Summary _5
Income Tax Expense - Summary of Income Tax Recognised in Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Major components of tax expense (income) [abstract] | |||
Income tax relating to components of other comprehensive income, deferred taxes | $ 1 | $ (28) | $ 31 |
Income tax relating to components of other comprehensive income, current taxes | $ 0 | $ 0 | $ 0 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings attributable to BHP shareholders | |||
Continuing operations | $ 20,245 | $ 11,529 | $ 7,848 |
Total | $ 30,900 | $ 11,304 | $ 7,956 |
Weighted average number of shares | |||
Basic | 5,061 | 5,057 | 5,057 |
Diluted | 5,071 | 5,068 | 5,069 |
Basic earnings per ordinary share | |||
Continuing operations | $ 4 | $ 2.280 | $ 1.552 |
Total | 6.106 | 2.235 | 1.573 |
Diluted earnings per ordinary share | |||
Continuing operations | 3.992 | 2.275 | 1.548 |
Total | 6.093 | 2.230 | 1.570 |
Headline earnings per ordinary share (US cents) | |||
Basic | 4.390 | 2.848 | 1.711 |
Diluted | $ 4.381 | $ 2.842 | $ 1.707 |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Reconciliation of Earnings Attributable to Ordinary Shareholders (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per share [line items] | |||
Earnings attributable to BHP shareholders | $ 30,900 | $ 11,304 | $ 7,956 |
(Gain)/loss on sales of PP&E, Investments and Operations | (95) | (50) | 4 |
Impairments of property, plant and equipment, financial assets and intangibles | 515 | 2,633 | 494 |
Impairment expense | 515 | 2,507 | 482 |
Exceptional items gross | 620 | 4,423 | 1,540 |
Other | 48 | ||
Tax effect of above adjustments | (97) | (60) | 54 |
Subtotal of adjustments | (8,684) | 3,100 | 695 |
Headline earnings | 22,216 | 14,404 | 8,651 |
Diluted headline earnings | 22,216 | 14,404 | 8,651 |
Discontinued operations [member] | |||
Earnings per share [line items] | |||
Exceptional items gross | (8,167) | 47 | 6 |
Samarco dam failure [member] | |||
Earnings per share [line items] | |||
Impairment expense | 111 | 95 | |
Exceptional items gross | 1,032 | 1,087 | 176 |
Cerrejón [Member] | |||
Earnings per share [line items] | |||
Impairment expense | 466 | ||
BHP Mitsui Coal (BMC) gain on disposal [Member] | |||
Earnings per share [line items] | |||
Exceptional items gross | (840) | $ 0 | $ 0 |
Gain On Petroleum Disposal [Member] | Discontinued operations [member] | |||
Earnings per share [line items] | |||
Exceptional items gross | $ (8,167) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings per share [abstract] | |||
Effect of dilutive shares | 10,000,000 | 11,000,000 | 12,000,000 |
Antidilutive shares | 0 | 0 | 0 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Trade and other receivables [abstract] | ||
Trade receivables | $ 4,411 | $ 4,450 |
Other receivables | 1,168 | 1,946 |
Total | 5,579 | 6,396 |
Current | 5,426 | 6,059 |
Non-current | $ 153 | $ 337 |
Trade and Other Receivables - A
Trade and Other Receivables - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 USD ($) Customer | Jun. 30, 2021 USD ($) | |
Disclosure of financial assets [line items] | ||
Term receivables terms | 30 days | |
Trade receivables | $ 4,411 | $ 4,450 |
Trade receivables [member] | ||
Disclosure of financial assets [line items] | ||
Provisions for doubtful debts | 3 | 3 |
Past due but not impaired [member] | ||
Disclosure of financial assets [line items] | ||
Trade receivables | $ 103 | $ 68 |
Credit risk [member] | ||
Disclosure of financial assets [line items] | ||
Percentage of trade receivables owed from the customers | 34% | 31% |
Number of customers sample risk exposure | Customer | 10 |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Trade and other payables [abstract] | ||
Trade payables | $ 5,360 | $ 5,079 |
Other payables | 1,327 | 1,948 |
Total | 6,687 | 7,027 |
Current | 6,687 | 7,027 |
Non-current | $ 0 | $ 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Classes of current inventories [abstract] | ||
Raw materials and consumables | $ 1,713 | $ 1,904 |
Work in progress | 3,827 | 3,046 |
Finished goods | 710 | 834 |
Total | 6,250 | 5,784 |
Current | 4,935 | 4,426 |
Non-current | $ 1,315 | $ 1,358 |
Inventories - Summary of Inve_2
Inventories - Summary of Inventories (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Classes of current inventories [abstract] | |||
Inventory write-downs | $ 163 | $ 58 | $ 37 |
Inventory write-downs, made in previous periods that were reversed | $ 23 | $ 26 | $ 8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | $ 73,813 | $ 72,362 |
Additions | 8,777 | 10,717 |
Acquisition of subsidiaries & operations | 642 | |
Remeasurements of index-linked freight contracts | (369) | (59) |
Depreciation for the year | (6,503) | (6,752) |
Impairments for the year | (515) | (2,583) |
Disposals | (25) | (27) |
Divestment and demerger of subsidiaries and operations | (13,391) | (16) |
Transfers and other movements | (492) | (471) |
At the end of the financial year | 61,295 | 73,813 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 151,361 | |
At the end of the financial year | 121,130 | 151,361 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | (77,548) | |
At the end of the financial year | (59,835) | (77,548) |
Land and buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 8,072 | 8,387 |
Additions | 41 | 25 |
Depreciation for the year | (663) | (694) |
Impairments for the year | (14) | (208) |
Disposals | (3) | (18) |
Divestment and demerger of subsidiaries and operations | (448) | |
Transfers and other movements | 1,094 | 580 |
At the end of the financial year | 8,079 | 8,072 |
Land and buildings [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 14,545 | |
At the end of the financial year | 14,823 | 14,545 |
Land and buildings [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | (6,473) | |
At the end of the financial year | (6,744) | (6,473) |
Plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 44,682 | 39,429 |
Additions | 1,935 | 3,841 |
Acquisition of subsidiaries & operations | 151 | |
Remeasurements of index-linked freight contracts | (369) | (59) |
Depreciation for the year | (5,564) | (5,748) |
Impairments for the year | (499) | (877) |
Disposals | (22) | (9) |
Divestment and demerger of subsidiaries and operations | (8,007) | (14) |
Transfers and other movements | 3,344 | 7,968 |
At the end of the financial year | 35,500 | 44,682 |
Plant and equipment [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 108,049 | |
At the end of the financial year | 81,218 | 108,049 |
Plant and equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | (63,367) | |
At the end of the financial year | (45,718) | (63,367) |
Other mineral assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 8,941 | 8,652 |
Additions | 792 | 797 |
Acquisition of subsidiaries & operations | 491 | |
Depreciation for the year | (276) | (310) |
Impairments for the year | (2) | (687) |
Divestment and demerger of subsidiaries and operations | (545) | |
Transfers and other movements | (416) | (2) |
At the end of the financial year | 8,494 | 8,941 |
Other mineral assets [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 15,059 | |
At the end of the financial year | 14,353 | 15,059 |
Other mineral assets [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | (6,118) | |
At the end of the financial year | (5,859) | (6,118) |
Assets under construction [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 10,432 | 13,774 |
Additions | 5,872 | 5,961 |
Impairments for the year | (745) | |
Divestment and demerger of subsidiaries and operations | (3,549) | (2) |
Transfers and other movements | (3,724) | (8,556) |
At the end of the financial year | 9,031 | 10,432 |
Assets under construction [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 11,177 | |
At the end of the financial year | 9,755 | 11,177 |
Assets under construction [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | (745) | |
At the end of the financial year | (724) | (745) |
Exploration and evaluation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 1,686 | 2,120 |
Additions | 137 | 93 |
Impairments for the year | (66) | |
Divestment and demerger of subsidiaries and operations | (842) | |
Transfers and other movements | (790) | (461) |
At the end of the financial year | 191 | 1,686 |
Exploration and evaluation [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | 2,531 | |
At the end of the financial year | 981 | 2,531 |
Exploration and evaluation [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
At the beginning of the financial year | (845) | |
At the end of the financial year | $ (790) | $ (845) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Right-of-use assets | $ 2,361 | $ 3,350 | $ 3,047 |
Shenzi [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Acquisition Of additional proportion Of ownership interest In joint operation | 28% |
Property, Plant and Equipment_3
Property, Plant and Equipment - Summary of Principal Depreciation Methods and Rates Applied to Major Asset Categories (Detail) | 12 Months Ended |
Jun. 30, 2022 | |
Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Typical depreciation methodology | SL |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 25 years |
Buildings [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 50 years |
Plant and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Typical depreciation methodology | SL |
Plant and equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 3 years |
Plant and equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Depreciation rate | 30 years |
Mineral rights and petroleum interests [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Typical depreciation methodology | UoP |
Depreciation rate | Based on the rate of depletion of reserves |
Capitalised exploration, evaluation and development expenditure [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Typical depreciation methodology | UoP |
Depreciation rate | Based on the rate of depletion of reserves |
Property, Plant and Equipment_4
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Commitments for capital expenditure | $ 2,820 | $ 2,469 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | $ 1,437 | $ 1,574 |
Additions | 36 | 23 |
Amortisation for the year | (60) | (93) |
Impairments for the year | (52) | |
Disposals | (16) | |
Divestment and demerger of subsidiaries and operations | (66) | |
Transfers and other movements | 38 | (15) |
At the end of the financial year | 1,369 | 1,437 |
Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | 2,703 | |
At the end of the financial year | 2,560 | 2,703 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | (1,266) | |
At the end of the financial year | (1,191) | (1,266) |
Goodwill [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | 1,197 | 1,197 |
At the end of the financial year | 1,197 | 1,197 |
Goodwill [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | 1,197 | |
At the end of the financial year | 1,197 | 1,197 |
Other intangibles [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | 240 | 377 |
Additions | 36 | 23 |
Amortisation for the year | (60) | (93) |
Impairments for the year | (52) | |
Disposals | (16) | |
Divestment and demerger of subsidiaries and operations | (66) | |
Transfers and other movements | 38 | (15) |
At the end of the financial year | 172 | 240 |
Other intangibles [member] | Cost [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | 1,506 | |
At the end of the financial year | 1,363 | 1,506 |
Other intangibles [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
At the beginning of the financial year | (1,266) | |
At the end of the financial year | $ (1,191) | $ (1,266) |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2022 | |
Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful lives | 8 years |
Impairment of Non-current Ass_3
Impairment of Non-current Assets - Schedule of Impairment of Non-current Assets for Cash Generating Unit by Class of Assets and by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets | $ 515 | $ 2,973 | |
Total impairment of non-current assets, Property, plant and equipment | 515 | 2,583 | |
Total impairment of non-current assets, Goodwill and other intangibles | 52 | ||
Net impairment of non-current assets | 515 | 3,101 | |
Property, plant and equipment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Net impairment of non-current assets | 515 | 2,583 | |
Goodwill and other intangible assets [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets, Goodwill and other intangibles | 33 | ||
Net impairment of non-current assets | 52 | ||
Equity- accounted investment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets, Equity-accounted investment | 466 | ||
Net impairment of non-current assets | 466 | ||
Continuing operation [member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Net impairment of non-current assets | 515 | 2,973 | |
Continuing operation [member] | Property, plant and equipment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets, Property, plant and equipment | 515 | 2,474 | $ 482 |
Net impairment of non-current assets | 515 | 2,474 | |
Continuing operation [member] | Goodwill and other intangible assets [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets, Goodwill and other intangibles | 33 | ||
Net impairment of non-current assets | 33 | ||
Continuing operation [member] | Equity- accounted investment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Net impairment of non-current assets | 466 | ||
Discontinued operations [member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Net impairment of non-current assets | 128 | ||
Discontinued operations [member] | Property, plant and equipment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Net impairment of non-current assets | 109 | ||
Discontinued operations [member] | Goodwill and other intangible assets [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Net impairment of non-current assets | 19 | ||
New South Wales Energy Coal [Member] | Coal [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets | 1,057 | ||
Total impairment of non-current assets, Property, plant and equipment | 1,025 | ||
Total impairment of non-current assets, Goodwill and other intangibles | 32 | ||
Cerrejon [Member] | Coal [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets | 466 | ||
Total impairment of non-current assets, Equity-accounted investment | 466 | ||
Potash [Member] | G&U [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets | 1,314 | ||
Total impairment of non-current assets, Property, plant and equipment | 1,314 | ||
Cerro Colorado [Member] | Copper [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets | 455 | ||
Cerro Colorado [Member] | Copper [Member] | Property, plant and equipment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets, Property, plant and equipment | 455 | ||
Other [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets | 60 | 136 | |
Total impairment of non-current assets, Property, plant and equipment | 135 | ||
Total impairment of non-current assets, Goodwill and other intangibles | $ 1 | ||
Other [Member] | Property, plant and equipment [Member] | |||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | |||
Total impairment of non-current assets, Property, plant and equipment | $ 60 |
Impairment of Non-current Ass_4
Impairment of Non-current Assets - Summary of Impairment of Non-current Assets Excluding Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of detailed information about impairment of non-current assets excluding goodwill [line items] | |||
Total impairment of non-current assets | $ 515 | $ 2,507 | $ 482 |
New South Wales Energy Coal [Member] | |||
Disclosure of detailed information about impairment of non-current assets excluding goodwill [line items] | |||
Negative recoverable amount of asset or cash generating unit | 300 | ||
Total impairment of non-current assets | $ 1,057 | ||
Discount rate applied | 6.50% | ||
Cerrejon [Member] | |||
Disclosure of detailed information about impairment of non-current assets excluding goodwill [line items] | |||
Recoverable amount of asset or cash-generating unit | $ 284 | ||
Total impairment of non-current assets | 466 | ||
Potash [Member] | |||
Disclosure of detailed information about impairment of non-current assets excluding goodwill [line items] | |||
Recoverable amount of asset or cash-generating unit | 3,300 | ||
Total impairment of non-current assets | $ 1,314 | ||
Cerro Colorado [Member] | |||
Disclosure of detailed information about impairment of non-current assets excluding goodwill [line items] | |||
Total impairment of non-current assets | $ 455 |
Impairment of Non-current Ass_5
Impairment of Non-current Assets - Summary of Goodwill Allocated to Cash Generating Units (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about goodwill allocated to cash generating unit explanatory [line items] | ||
Goodwill | $ 1,197 | $ 1,197 |
Olympic Dam [member] | ||
Disclosure of detailed information about goodwill allocated to cash generating unit explanatory [line items] | ||
Goodwill | 1,010 | 1,010 |
Other | ||
Disclosure of detailed information about goodwill allocated to cash generating unit explanatory [line items] | ||
Goodwill | $ 187 | $ 187 |
Impairment of Non-current Ass_6
Impairment of Non-current Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about impairment of noncurrent assets [Line items] | ||
Goodwill | $ 1,197 | $ 1,197 |
Olympic Dam [member] | ||
Disclosure of detailed information about impairment of noncurrent assets [Line items] | ||
Discount rate applied | 6.50% | 6% |
Amount by which unit's recoverable amount exceeds its carrying amount | $ 2,400 | $ 1,800 |
Goodwill | $ 1,010 | $ 1,010 |
Production volume decrease | 6% | 4.80% |
Other Cash Generating Units [Member] | ||
Disclosure of detailed information about impairment of noncurrent assets [Line items] | ||
Goodwill | $ 187 | $ 187 |
Goodwill impairment loss | $ 0 | $ 0 |
Other Cash Generating Units [Member] | Top of range [member] | ||
Disclosure of detailed information about impairment of noncurrent assets [Line items] | ||
Percentage of goodwill included in net assets | 1% | 1% |
Deferred Tax Balances - Summary
Deferred Tax Balances - Summary of Movement in Net Deferred Tax Position (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net deferred tax asset | |||
At the beginning of the period | $ (1,402) | $ (91) | $ (491) |
Income tax (charge)/credit recorded in the income statement | (125) | (1,325) | 335 |
Income tax (charge)/credit recorded directly in equity | (42) | 42 | 34 |
Divestment and demerger of subsidiaries and operations | (1,439) | ||
Other movements | 1 | (28) | 31 |
At the end of the period | $ (3,007) | $ (1,402) | $ (91) |
Deferred Tax Balances - Summa_2
Deferred Tax Balances - Summary of Movement in Net Deferred Tax Position (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Income tax (charge)/credit recorded in the income statement | $ (125) | $ (1,325) | $ 335 |
Discontinued operations [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Income tax (charge)/credit recorded in the income statement | $ (61) | $ 273 | $ 247 |
Deferred Tax Balances - Summa_3
Deferred Tax Balances - Summary of Composition of Net Deferred Tax Assets and Liabilities and Deferred Tax Expense Charged/(Credited) to Income Statement (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 56 | $ 1,912 | |
Deferred tax liabilities | 3,063 | 3,314 | |
Charged/(credited) to the income statement | 125 | 1,325 | $ (335) |
Depreciation [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (526) | (1,349) | |
Deferred tax liabilities | 4,844 | 4,716 | |
Charged/(credited) to the income statement | 554 | 488 | 1,394 |
Exploration expenditure [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 9 | 51 | |
Charged/(credited) to the income statement | 13 | 347 | 51 |
Employee benefits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 21 | 94 | |
Deferred tax liabilities | (322) | (333) | |
Charged/(credited) to the income statement | 20 | (68) | (38) |
Closure and rehabilitations [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 104 | 638 | |
Deferred tax liabilities | (1,448) | (2,086) | |
Charged/(credited) to the income statement | 24 | (515) | (334) |
Resource rent tax [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 122 | ||
Deferred tax liabilities | 368 | ||
Charged/(credited) to the income statement | (129) | (309) | (119) |
Other provisions [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 70 | 108 | |
Deferred tax liabilities | (192) | (227) | |
Charged/(credited) to the income statement | 49 | 77 | (268) |
Deferred income [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 51 | 11 | |
Deferred tax liabilities | (1) | (16) | |
Charged/(credited) to the income statement | (31) | (31) | 33 |
Deferred charges [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (57) | (36) | |
Deferred tax liabilities | 584 | 602 | |
Charged/(credited) to the income statement | 7 | 68 | (132) |
Investments, including foreign tax credits [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 139 | 147 | |
Deferred tax liabilities | 365 | 671 | |
Charged/(credited) to the income statement | (298) | 414 | (77) |
Foreign exchange gains and losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | (13) | (3) | |
Deferred tax liabilities | 154 | 133 | |
Charged/(credited) to the income statement | 33 | 63 | (18) |
Tax losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 225 | 1,999 | |
Deferred tax liabilities | (307) | (82) | |
Charged/(credited) to the income statement | 28 | 678 | (148) |
Lease liability [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 17 | 68 | |
Deferred tax liabilities | (594) | (658) | |
Charged/(credited) to the income statement | (10) | 67 | (793) |
Other [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | 16 | 62 | |
Deferred tax liabilities | (20) | 226 | |
Charged/(credited) to the income statement | $ (135) | $ 46 | $ 114 |
Deferred Tax Balances - Additio
Deferred Tax Balances - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Unrecognized deferred tax assets and liabilities [line items] | ||
Deferred tax assets not arising from the reversal of existing deferred tax liabilities | $ 56 | $ 1,912 |
Tax losses [member] | ||
Unrecognized deferred tax assets and liabilities [line items] | ||
Deferred tax assets not arising from the reversal of existing deferred tax liabilities | $ 18 | $ 1,675 |
Deferred Tax Balances - Summa_4
Deferred Tax Balances - Summary of Composition of Unrecognised Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Unrecognised deferred tax assets | ||
Tax losses and tax credits | $ 8,462 | $ 5,944 |
Total unrecognised deferred tax assets | 14,617 | 15,047 |
Unrecognised deferred tax liabilities | ||
Investments in subsidiaries | 2,099 | 2,203 |
Future taxable temporary differences relating to unrecognised deferred tax asset for PRRT | 720 | |
Total unrecognised deferred tax liabilities | 2,099 | 2,923 |
Investments in subsidiaries [member] | ||
Unrecognised deferred tax assets | ||
Temporary differences | 1,597 | 1,712 |
Deductible temporary differences relating to PRRT [member] | ||
Unrecognised deferred tax assets | ||
Temporary differences | 2,402 | |
Mineral rights [member] | ||
Unrecognised deferred tax assets | ||
Temporary differences | 2,781 | 3,359 |
Other deductible temporary differences [member] | ||
Unrecognised deferred tax assets | ||
Temporary differences | $ 1,777 | $ 1,630 |
Deferred Tax Balances - Summa_5
Deferred Tax Balances - Summary of Composition of Unrecognised Deferred Tax Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Income and capital tax losses with a tax benefit, which are not recognised as deferred tax assets | $ 5,777 | $ 3,569 |
Tax credits, which are not recognised as deferred tax assets | 2,685 | 2,375 |
Gross amount of income tax losses not recognised | 5,738 | 9,718 |
Gross amount of tax losses not recognized | 19,911 | 13,956 |
Tax effect of total losses not recognised | 5,777 | 3,569 |
Due not later than one year [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount of income tax losses not recognised | 13 | |
Gross amount of capital tax losses not recognised | 0 | 0 |
Later than one year and not later than two years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount of income tax losses not recognised | 5 | |
Later than two years and not later than five years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount of income tax losses not recognised | 43 | 105 |
Gross amount of capital tax losses not recognised | 0 | 0 |
Later than five years and not later than 10 years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount of income tax losses not recognised | 248 | 1,449 |
Later than 10 years and not later than 20 years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax credits, which are not recognised as deferred tax assets | 556 | |
Gross amount of income tax losses not recognised | 1,290 | 3,347 |
Unlimited [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Gross amount of income tax losses not recognised | 4,157 | 4,799 |
Gross amount of capital tax losses not recognised | 14,173 | $ 4,238 |
Not Later than 10 year[member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax credits, which are not recognised as deferred tax assets | $ 2,129 |
Closure and Rehabilitation Pr_3
Closure and Rehabilitation Provisions - Summary of Closure and Rehabilitation Provisions (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of other provisions [line items] | ||
Current | $ 3,965 | $ 3,696 |
Non-current | 10,478 | 13,799 |
Closure and rehabilitation provisions [member] | ||
Disclosure of other provisions [line items] | ||
At the beginning of the financial year | 11,910 | 8,810 |
Increases to existing and new provisions | 174 | 564 |
Exchange translation | (58) | 76 |
Released during the year | (42) | (157) |
Amortisation of discounting impacting net finance costs | 554 | 380 |
Acquisition of subsidiaries and operations | 179 | |
Divestment and demerger of subsidiaries and operations | (4,477) | (81) |
Utilisation | (316) | (321) |
Exchange variations impacting foreign currency translation reserve | (3) | 3 |
Other movements | 62 | |
At the end of the financial year | 8,689 | 11,910 |
Current | 475 | 591 |
Non-current | 8,214 | 11,319 |
Closure and rehabilitation provisions [member] | Operating sites [member] | ||
Disclosure of other provisions [line items] | ||
At the beginning of the financial year | 9,279 | |
Change in estimate | 1,579 | 1,974 |
Exchange translation | (694) | 483 |
At the end of the financial year | 6,198 | 9,279 |
Closure and rehabilitation provisions [member] | Closed sites [member] | ||
Disclosure of other provisions [line items] | ||
At the beginning of the financial year | 2,631 | |
At the end of the financial year | $ 2,491 | $ 2,631 |
Closure and Rehabilitation Pr_4
Closure and Rehabilitation Provisions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Bhp Mitsubishi Alliance [Member] | |||
Disclosure of other provisions [line items] | |||
Increase decrease In closure provision | $ 750 | ||
Closure and rehabilitation provisions [member] | |||
Disclosure of other provisions [line items] | |||
Reasonably possible acceleration in forecast cash flows | 1 year | ||
Percentage of reasonably possible increase in real discount rates | 0.50% | ||
Decrease in closure and rehabilitation provision due to reasonably possible decrease in real discount rates | $ 675 | ||
Decrease in depreciation expense due to reasonably possible decrease in real discount rates | 70 | ||
Increase in net finance costs due to reasonably possible decrease in real discount rates | 25 | ||
Increase in Provision due to reasonably possible acceleration in forecast cash flows | $ 185 | ||
Closure and rehabilitation provisions [member] | Bottom of range [member] | |||
Disclosure of other provisions [line items] | |||
Remaining production life | 2 years | 3 years | |
Closure and rehabilitation provisions [member] | Top of range [member] | |||
Disclosure of other provisions [line items] | |||
Remaining production life | 104 years | 91 years | |
Closure and rehabilitation provisions [member] | Weighted average [member] | |||
Disclosure of other provisions [line items] | |||
Remaining production life | 29 years | 27 years | |
Closure and rehabilitation provisions [member] | Closed sites [member] | |||
Disclosure of other provisions [line items] | |||
Increases to existing and new provisions associated closure and remediation costs charged to the income statement | $ 74 | $ 483 | $ 669 |
Decrease in income statement charge due to reasonably possible decrease in real discount rates | 185 | ||
Increase decrease in income statement charge due to reasonable possible acceleration in forecast of cash flows | 60 | ||
Closure and rehabilitation provisions [member] | Operating sites [member] | |||
Disclosure of other provisions [line items] | |||
Decrease in property, plant and equipment due to reasonably possible decrease in real discount rates | 490 | ||
Increase in property, plant and equipment due to reasonably possible acceleration in forecast cash flows | 125 | ||
Cerro Colorado [Member] | |||
Disclosure of other provisions [line items] | |||
Increase decrease In closure provision | $ 400 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital (Detail) - shares | 12 Months Ended | ||||
Jan. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Aug. 31, 2021 | |
5.5% Preference shares [member] | |||||
Share capital issued | |||||
Opening number of shares | 50,000 | 50,000 | |||
Closing number of shares | 0 | 50,000 | 50,000 | ||
BHP Group Limited [member] | |||||
Share capital issued | |||||
Opening number of shares | 2,945,851,394 | 2,945,851,394 | 2,945,851,394 | ||
Issue of shares | 4,400,000 | 4,400,000 | |||
Corporate structure unification | 2,112,071,796 | 2,112,071,796 | |||
Purchase of shares by ESOP Trusts | (8,704,669) | (7,587,353) | (5,975,189) | ||
Employee share awards exercised following vesting | 8,522,684 | 6,948,683 | 6,893,113 | ||
Movement in treasury shares under Employee Share Plans | 181,985 | 638,670 | (917,924) | ||
Closing number of shares | 5,062,323,190 | 2,945,851,394 | 2,945,851,394 | ||
BHP Group Limited [member] | Shares held by the public [member] | |||||
Share capital issued | |||||
Opening number of shares | 2,944,982,333 | 2,945,621,003 | |||
Closing number of shares | 5,061,272,144 | 2,944,982,333 | 2,945,621,003 | ||
BHP Group Limited [member] | Treasury shares [member] | |||||
Share capital issued | |||||
Opening number of shares | 869,061 | 230,391 | |||
Closing number of shares | 1,051,046 | 869,061 | 230,391 | ||
BHP Group Limited [member] | Special Voting share of no par value [member] | |||||
Share capital issued | |||||
Opening number of shares | 1 | 1 | |||
Closing number of shares | 1 | 1 | 1 | ||
BHP Group Limited [member] | Special Voting share of US$0.50 par value [member] | |||||
Share capital issued | |||||
Issue of shares | 1 | ||||
BHP Group Limited [member] | DLC Dividend share [member] | |||||
Share capital issued | |||||
Opening number of shares | 1 | 1 | |||
Closing number of shares | 1 | 1 | 1 | ||
BHP Group Plc [member] | |||||
Share capital issued | |||||
Opening number of shares | 2,112,071,796 | 2,112,071,796 | 2,112,071,796 | ||
Corporate structure unification | (2,112,071,796) | ||||
Purchase of shares by ESOP Trusts | (63,567) | (185,054) | (185,297) | ||
Employee share awards exercised following vesting | 77,748 | 173,644 | 222,245 | ||
Movement in treasury shares under Employee Share Plans | (14,181) | 11,410 | (36,948) | ||
Closing number of shares | 2,112,071,796 | 2,112,071,796 | |||
BHP Group Plc [member] | Shares held by the public [member] | |||||
Share capital issued | |||||
Opening number of shares | 2,112,057,615 | 2,112,069,025 | |||
Closing number of shares | 2,112,057,615 | 2,112,069,025 | |||
BHP Group Plc [member] | Treasury shares [member] | |||||
Share capital issued | |||||
Opening number of shares | 14,181 | 2,771 | |||
Closing number of shares | 14,181 | 2,771 | |||
BHP Group Plc [member] | 5.5% Preference shares [member] | |||||
Share capital issued | |||||
Opening number of shares | 50,000 | 50,000 | |||
Closing number of shares | 50,000 | 50,000 | |||
BHP Group Plc [member] | Special Voting share of no par value [member] | |||||
Share capital issued | |||||
Issue of shares | 1 | ||||
BHP Group Plc [member] | Special Voting share of US$0.50 par value [member] | |||||
Share capital issued | |||||
Opening number of shares | 1 | 1 | |||
Closing number of shares | 1 | 1 | 1 |
Share Capital - Summary of Sh_2
Share Capital - Summary of Share Capital (Parenthetical) (Detail) | 12 Months Ended | |||
Jun. 30, 2021 £ / shares | Jun. 30, 2020 £ / shares | Jun. 30, 2021 $ / shares | Jun. 30, 2020 $ / shares | |
Special Voting share of US$0.50 par value [member] | BHP Group Plc [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Par value | $ / shares | $ 0.5 | $ 0.5 | ||
5.5% Preference shares [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Par value | £ 1 | £ 1 | ||
Dividend rate percentage | 5.50% | 5.50% | ||
5.5% Preference shares [member] | BHP Group Plc [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Par value | £ 1 | £ 1 | ||
Dividend rate percentage | 5.50% | 5.50% |
Share Capital - Additional Info
Share Capital - Additional Information (Detail) | 12 Months Ended | ||||||||
Jan. 31, 2022 £ / shares shares | Jun. 30, 2022 shares | Jun. 30, 2021 £ / shares shares | Jun. 30, 2020 £ / shares shares | Aug. 31, 2021 $ / shares shares | Jun. 30, 2021 $ / shares shares | Jun. 30, 2020 $ / shares shares | Jun. 30, 2019 shares | Feb. 23, 2016 $ / shares | |
BHP Group Limited [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Number of shares issued | 4,400,000 | 4,400,000 | |||||||
Shares issued price per share | $ / shares | $ 52.99 | ||||||||
Number of shares transferred corporate structure unification | 2,112,071,796 | 2,112,071,796 | |||||||
Number of shares issued and fully paid | 5,062,323,190 | 2,945,851,394 | 2,945,851,394 | 2,945,851,394 | 2,945,851,394 | 2,945,851,394 | |||
BHP Group Plc [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Number of shares transferred corporate structure unification | (2,112,071,796) | ||||||||
Number of shares issued and fully paid | 2,112,071,796 | 2,112,071,796 | 2,112,071,796 | 2,112,071,796 | 2,112,071,796 | ||||
Special Voting share of no par value [member] | BHP Group Limited [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Number of shares issued and fully paid | 1 | 1 | 1 | 1 | 1 | ||||
Special Voting share of no par value [member] | BHP Group Plc [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Number of shares issued | 1 | ||||||||
Special Voting share of US$0.50 par value [member] | BHP Group Limited [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Number of shares issued | 1 | ||||||||
Special Voting share of US$0.50 par value [member] | BHP Group Plc [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Shares, par value | $ / shares | $ 0.5 | $ 0.5 | |||||||
Number of shares issued and fully paid | 1 | 1 | 1 | 1 | 1 | ||||
5.5% Preference shares [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Shares, par value | £ / shares | £ 1 | £ 1 | |||||||
Preference Shares Annual Dividend Percentage | 5.50% | 5.50% | |||||||
Number of shares issued and fully paid | 0 | 50,000 | 50,000 | 50,000 | 50,000 | ||||
5.5% Preference shares [member] | BHP Group Plc [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Shares, par value | £ / shares | £ 1 | £ 1 | |||||||
Preference Shares Annual Dividend Percentage | 5.50% | 5.50% | |||||||
Number of shares issued and fully paid | 50,000 | 50,000 | 50,000 | 50,000 | |||||
5.5% Preference shares [member] | BHP Group Plc [member] | JP Morgan Limited [Member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Shares, par value | £ / shares | £ 1 | ||||||||
Share Buy Back and Cancelled | 50,000 | ||||||||
Preference Shares Annual Dividend Percentage | 5.50% | ||||||||
DLC Dividend share [member] | BHP Group Limited [member] | |||||||||
Disclosure of classes of share capital [line items] | |||||||||
Shares, par value | $ / shares | $ 10 | ||||||||
Number of shares issued and fully paid | 1 | 1 | 1 | 1 | 1 |
Other Equity - Summary of Reser
Other Equity - Summary of Reserves (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of analysis of other comprehensive income by item [abstract] | |||
Share premium account | $ 0 | $ 518 | $ 518 |
Capital redemption reserve | 0 | 177 | 177 |
Common control reserves | (1,603) | ||
Employee share awards reserve | 174 | 268 | 246 |
Cash flow hedge reserve | 41 | 100 | 50 |
Cost of hedging reserve | (19) | (54) | (23) |
Foreign currency translation reserve | (14) | 43 | 39 |
Equity investments reserve | (8) | 15 | 16 |
Non-controlling interest contribution reserve | 1,441 | 1,283 | 1,283 |
Total reserves | $ 12 | $ 2,350 | $ 2,306 |
Other Equity - Summary of Finan
Other Equity - Summary of Financial Information Relating to Subsidiaries with Non-controlling Interests (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of significant subsidiaries [line items] | |||
Current assets | $ 28,664 | $ 26,693 | |
Non-current assets | 66,502 | 82,234 | $ 84,262 |
Current liabilities | (16,919) | (16,403) | |
Non-current liabilities | (29,481) | (36,919) | |
Net assets | 48,766 | 55,605 | |
Net assets attributable to NCI | 3,809 | 4,341 | |
Revenue | 65,098 | 56,921 | 38,924 |
Profit after taxation | 33,055 | 13,451 | 8,736 |
Other comprehensive income | (75) | 59 | (69) |
Total comprehensive income | 32,980 | 13,510 | 8,667 |
Profit after taxation attributable to NCI | 2,155 | 2,147 | 780 |
Net operating cash flow | 32,174 | 27,234 | 15,706 |
Net investing cash flow | (6,959) | (7,845) | (7,616) |
Net financing cash flow | $ (22,767) | $ (17,922) | $ (9,752) |
Minera Escondida Limitada [member] | |||
Disclosure of significant subsidiaries [line items] | |||
Group share (per cent) | 57.50% | 57.50% | |
Current assets | $ 2,929 | $ 2,996 | |
Non-current assets | 11,636 | 11,867 | |
Current liabilities | (2,192) | (1,912) | |
Non-current liabilities | (4,762) | (4,733) | |
Net assets | 7,611 | 8,218 | |
Net assets attributable to NCI | 3,235 | 3,493 | |
Revenue | 9,500 | 9,470 | |
Profit after taxation | 3,522 | 3,605 | |
Other comprehensive income | 11 | 27 | |
Total comprehensive income | 3,533 | 3,632 | |
Profit after taxation attributable to NCI | 1,497 | 1,532 | |
Other comprehensive income attributable to NCI | 5 | 11 | |
Net operating cash flow | 4,519 | 5,007 | |
Net investing cash flow | (860) | (655) | |
Net financing cash flow | (4,029) | (4,001) | |
Dividends paid to NCI | 1,760 | 1,590 | |
Other individually immaterial subsidiaries [member] | |||
Disclosure of significant subsidiaries [line items] | |||
Net assets attributable to NCI | 574 | 848 | |
Profit after taxation attributable to NCI | 658 | 615 | |
Dividends paid to NCI | 780 | 537 | |
Subsidiaries with material non-controlling interests [member] | |||
Disclosure of significant subsidiaries [line items] | |||
Net assets attributable to NCI | 3,809 | 4,341 | |
Profit after taxation attributable to NCI | 2,155 | 2,147 | |
Other comprehensive income attributable to NCI | 5 | 11 | |
Dividends paid to NCI | $ 2,540 | $ 2,127 |
Dividends - Summary of Dividend
Dividends - Summary of Dividends Paid (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of Dividends [abstract] | |||
Prior year final dividend, Per share | $ 2 | $ 0.55 | $ 0.78 |
Interim dividend, Per share | 1.5 | 1.01 | 0.65 |
Dividends paid during the period, Per share | $ 3.5 | $ 1.56 | $ 1.43 |
Prior year final dividend, Total | $ 10,119 | $ 2,779 | $ 3,946 |
Interim dividend, Total | 7,601 | 5,115 | 3,288 |
Dividends paid during the period, Total | $ 17,720 | $ 7,894 | $ 7,234 |
Dividends - Summary of Divide_2
Dividends - Summary of Dividends Paid (Parenthetical) (Detail) - 5.5% Preference shares [member] - £ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2022 | |
Disclosure of dividends [line items] | |||
Per cent dividend | 5.50% | 5.50% | |
Preference shares | 50,000 | 50,000 | 0 |
Par value | £ 1 | £ 1 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) $ / shares in Units, $ / shares in Units, $ in Millions, $ in Billions | 1 Months Ended | 12 Months Ended | |||||
Aug. 16, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 AUD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2020 USD ($) $ / shares | May 31, 2022 $ / shares | |
Disclosure of dividends [line items] | |||||||
Tax rate | 30% | 30% | 30% | ||||
Proceeds/(settlements) of cash management related instruments | $ 378 | $ (401) | $ 85 | ||||
In specie dividend | 19,559 | ||||||
Major ordinary share transactions [member] | |||||||
Disclosure of dividends [line items] | |||||||
Dividend per share, after period-end | $ / shares | $ 1.75 | $ 2 | $ 0.55 | ||||
Dividend amount, after period-end | $ 8,857 | $ 10,114 | $ 2,782 | ||||
Proceeds/(settlements) of cash management related instruments | $ 127 | ||||||
BHP Group Limited [member] | |||||||
Disclosure of dividends [line items] | |||||||
Number of ordinary shares represented by each American Depositary Share | shares | 2 | 2 | 2 | ||||
Tax rate | 30% | 30% | 30% | ||||
BHP Group Limited [member] | Woodside [Member] | |||||||
Disclosure of dividends [line items] | |||||||
Dividend in shares distributed | shares | 914,768,948 | 914,768,948 | |||||
Closing share price | $ / shares | $ 29.76 | ||||||
In specie dividend | $ 19,600 | $ 27.2 | |||||
In specie dividend per share | (per share) | $ 3.86 | $ 5.38 | |||||
Frankling credits distribution per share | (per share) | $ 1.66 | $ 2.3 | |||||
BHP Group Plc [member] | |||||||
Disclosure of dividends [line items] | |||||||
Number of ordinary shares represented by each American Depositary Share | shares | 2 | 2 | 2 |
Dividends - Summary of Franking
Dividends - Summary of Franking Credits (Detail) - BHP Group Limited [member] - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of dividends [line items] | |||
Franking credits | $ 7,007 | $ 14,302 | $ 10,980 |
Franking credits arising from the payment of current tax | 2,043 | 1,799 | 471 |
Total franking credits available | $ 9,050 | $ 16,101 | $ 11,451 |
Dividends - Summary of Franki_2
Dividends - Summary of Franking Credits (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
BHP Group Limited [member] | |
Disclosure of dividends [line items] | |
Decrease in franking account balance due to payment of final dividend | $ 3,796 |
Provisions for Dividends and Ot
Provisions for Dividends and Other Liabilities - Summary of Provisions for Dividends and Other Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Charge/(credit) for the year: | |||
Dividends paid | $ (17,851) | $ (7,901) | $ (6,876) |
Current | 3,965 | 3,696 | |
Non-current | 10,478 | 13,799 | |
Provision for dividends and other liabilities [member] | |||
Disclosure of other provisions [line items] | |||
At the beginning of the financial year | 581 | 1,240 | |
Dividends determined | 17,720 | 7,894 | |
Charge/(credit) for the year: | |||
Underlying | 493 | 260 | |
Discounting | 1 | 2 | |
Exchange variations | 122 | 20 | |
Released during the year | (48) | (43) | |
Utilisation | (96) | (267) | |
Dividends paid | (17,851) | (7,901) | |
Divestment and demerger of subsidiaries and operations | (146) | ||
Transfers and other movements | (102) | (624) | |
At the end of the financial year | 674 | 581 | $ 1,240 |
Current | 356 | 293 | |
Non-current | $ 318 | $ 288 |
Net Debt - Summary of Net Debt
Net Debt - Summary of Net Debt Balance and Gearing Ratio (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Interest bearing liabilities, Current | |||
Bank loans | $ 397 | $ 437 | |
Notes and debentures | 1,690 | 1,244 | |
Lease liabilities | 519 | 889 | |
Other | 16 | 58 | |
Total interest bearing liabilities | 2,622 | 2,628 | |
Less: Lease liability associated with index-linked freight contracts current | 113 | 346 | |
Less: Cash and cash equivalents | |||
Cash | 5,728 | 4,408 | |
Short-term deposits | 11,508 | 10,838 | |
Less: Total cash and cash equivalents | 17,236 | 15,246 | $ 13,426 |
Net debt management related instruments | (358) | 20 | |
Net cash management related instruments | 273 | 34 | |
Less: Total derivatives included in net debt | (85) | 54 | |
Interest bearing liabilities, Non-current | |||
Bank loans | 2,075 | 1,823 | |
Notes and debentures | 9,673 | 13,525 | |
Lease liabilities | 2,057 | 3,007 | |
Other | 1 | ||
Total interest bearing liabilities | 13,806 | 18,355 | |
Less: Lease liability associated with index-linked freight contracts non current | 161 | 679 | |
Less: Net debt management related instruments | (1,330) | 537 | |
Less: Total derivatives included in net debt | (1,330) | 537 | |
Net debt | 333 | 4,121 | |
Net assets | $ 48,766 | $ 55,605 | |
Gearing | 0.70% | 6.90% |
Net Debt - Summary of Cash and
Net Debt - Summary of Cash and Cash Equivalents, Net of Overdrafts (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Cash and cash equivalents if different from statement of financial position [abstract] | ||||
Total cash and cash equivalents | $ 17,236 | $ 15,246 | $ 13,426 | |
Bank overdrafts and short-term borrowings | 0 | |||
Total cash and cash equivalents, net of overdrafts | $ 17,236 | $ 15,246 | $ 13,426 | $ 15,593 |
Net Debt - Additional Informati
Net Debt - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Nov. 30, 2021 | Jun. 30, 2021 | |
Disclosure of net debt [line items] | |||
Cash and cash equivalents restricted by legal or contractual arrangements | $ 127 | $ 159 | |
Defaults on loans payable | 0 | ||
Revolving credit facility [member] | |||
Disclosure of net debt [line items] | |||
Revolving credit facility, maximum amount | 5,500 | $ 5,500 | |
Commercial paper, amount drawn | $ 0 | $ 0 | |
Revolving credit facility, maturity period | 5 year |
Net Debt - Summary of Interest
Net Debt - Summary of Interest Bearing Liabilities and Cash and Cash Equivalents Denominated by Currency (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | $ 16,428 | $ 20,983 | |
Cash and cash equivalents | 17,236 | 15,246 | $ 13,426 |
USD [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | 8,813 | 11,146 | |
Cash and cash equivalents | 7,654 | 12,003 | |
EUR [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | 3,463 | 4,505 | |
Cash and cash equivalents | 2,656 | 4 | |
GBP [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | 2,621 | 3,415 | |
Cash and cash equivalents | 30 | 32 | |
AUD [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | 783 | 1,053 | |
Cash and cash equivalents | 3,360 | 573 | |
CAD [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | 584 | 635 | |
Cash and cash equivalents | 3,437 | 2,455 | |
Other [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Interest bearing liabilities | 164 | 229 | |
Cash and cash equivalents | $ 99 | $ 179 |
Net Debt - Summary of Maturity
Net Debt - Summary of Maturity Profile of Financial Liabilities Based on the Contractual Amounts (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of financial liabilities [line items] | ||
Bank loans, debentures and other loans, contractual amount | $ 13,902 | $ 15,863 |
Expected future interest payments, contractual amount | 5,656 | 7,018 |
Derivatives related to debentures, contractual amount | 2,784 | 1,169 |
Other derivatives, contractual amount | 824 | 786 |
Obligations under lease liabilities, contractual amount | 3,428 | 4,899 |
Trade and other payables, contractual amount | 6,608 | 6,851 |
Total, contractual amount | 33,202 | 36,586 |
Bank loans, debentures and other loans, carrying amount | 13,852 | 17,087 |
Derivatives related to debentures, carrying amount | 1,824 | 586 |
Other derivatives, carrying amount | 752 | 690 |
Obligations under lease liabilities, carrying amount | 2,576 | 3,896 |
Trade and other payables, carrying amount | 6,608 | 6,851 |
Total financial liabilities | 25,612 | 29,110 |
Due not later than one year [member] | ||
Disclosure of financial liabilities [line items] | ||
Bank loans, debentures and other loans, contractual amount | 2,109 | 1,722 |
Expected future interest payments, contractual amount | 492 | 729 |
Derivatives related to debentures, contractual amount | 525 | 61 |
Other derivatives, contractual amount | 221 | 149 |
Obligations under lease liabilities, contractual amount | 579 | 980 |
Trade and other payables, contractual amount | 6,608 | 6,851 |
Total, contractual amount | 10,534 | 10,492 |
Later than one year and not later than two years [member] | ||
Disclosure of financial liabilities [line items] | ||
Bank loans, debentures and other loans, contractual amount | 1,634 | 2,278 |
Expected future interest payments, contractual amount | 427 | 661 |
Derivatives related to debentures, contractual amount | 300 | 267 |
Other derivatives, contractual amount | 112 | 80 |
Obligations under lease liabilities, contractual amount | 443 | 680 |
Total, contractual amount | 2,916 | 3,966 |
Later than two years and not later than five years [member] | ||
Disclosure of financial liabilities [line items] | ||
Bank loans, debentures and other loans, contractual amount | 2,609 | 4,062 |
Expected future interest payments, contractual amount | 1,032 | 1,492 |
Derivatives related to debentures, contractual amount | 492 | 256 |
Other derivatives, contractual amount | 246 | 240 |
Obligations under lease liabilities, contractual amount | 936 | 1,397 |
Total, contractual amount | 5,315 | 7,447 |
Due later than five years [member] | ||
Disclosure of financial liabilities [line items] | ||
Bank loans, debentures and other loans, contractual amount | 7,550 | 7,801 |
Expected future interest payments, contractual amount | 3,705 | 4,136 |
Derivatives related to debentures, contractual amount | 1,467 | 585 |
Other derivatives, contractual amount | 245 | 317 |
Obligations under lease liabilities, contractual amount | 1,470 | 1,842 |
Total, contractual amount | $ 14,437 | $ 14,681 |
Net Debt - Summary of Maturit_2
Net Debt - Summary of Maturity Profile of Financial Liabilities Based on the Contractual Amounts (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of financial liabilities [abstract] | ||
Input taxes | $ 79 | $ 176 |
Leases - Summary of Movements i
Leases - Summary of Movements in Lease Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
At the beginning of the financial year | $ 3,896 | |
At the end of the financial year | 2,576 | $ 3,896 |
Comprising: | ||
Current liabilities | 519 | 889 |
Non-current liabilities | 2,057 | 3,007 |
Lease liabilities [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
At the beginning of the financial year | 3,896 | 3,443 |
Additions | 866 | 1,223 |
Remeasurements of index-linked freight contracts | (369) | (59) |
Lease payments | (1,288) | (879) |
Foreign exchange movement | (126) | 115 |
Amortisation of discounting | 125 | 109 |
Divestment and demerger of subsidiaries and operations | (492) | |
Transfers and other movements | (36) | (56) |
At the end of the financial year | 2,576 | 3,896 |
Comprising: | ||
Current liabilities | 519 | 889 |
Non-current liabilities | $ 2,057 | $ 3,007 |
Leases - Summary of Movements_2
Leases - Summary of Movements in Lease Liabilities (Parentheticals) (Detail) - Lease liabilities [member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Lease payments | $ (1,288) | $ (879) |
Discontinued operations [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Lease payments | $ 39 | $ 45 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of leases [Line Items] | ||
Commitments for leases not yet commenced | $ 928 | $ 457 |
Bottom of range [member] | Machinery [member] | ||
Disclosure of leases [Line Items] | ||
Lease term | 10 years | |
Bottom of range [member] | Buildings [member] | ||
Disclosure of leases [Line Items] | ||
Lease term | 10 years | |
Bottom of range [member] | Ships [member] | ||
Disclosure of leases [Line Items] | ||
Lease term | 4 years | |
Top of range [member] | Ships [member] | ||
Disclosure of leases [Line Items] | ||
Lease term | 10 years |
Leases - Summary of Maturity Pr
Leases - Summary of Maturity Profile of Lease Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of Maturity Analysis of Lease Liabilities [Line Items] | ||
Obligations under lease liabilities, contractual amount | $ 3,428 | $ 4,899 |
Total carrying amount | 2,576 | 3,896 |
In one year or less or on demand | ||
Disclosure of Maturity Analysis of Lease Liabilities [Line Items] | ||
Obligations under lease liabilities, contractual amount | 579 | 980 |
In more than one year but not more than two years | ||
Disclosure of Maturity Analysis of Lease Liabilities [Line Items] | ||
Obligations under lease liabilities, contractual amount | 443 | 680 |
In more than two years but not more than five years | ||
Disclosure of Maturity Analysis of Lease Liabilities [Line Items] | ||
Obligations under lease liabilities, contractual amount | 936 | 1,397 |
In more than five years | ||
Disclosure of Maturity Analysis of Lease Liabilities [Line Items] | ||
Obligations under lease liabilities, contractual amount | 1,470 | 1,842 |
Later than ten years [member] | ||
Disclosure of Maturity Analysis of Lease Liabilities [Line Items] | ||
Obligations under lease liabilities, contractual amount | $ 707 | $ 878 |
Leases - Summary of Movements_3
Leases - Summary of Movements in Right of Use Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | $ 3,350 | $ 3,047 |
Additions | 866 | 1,252 |
Remeasurements of index-linked freight contracts | (369) | (59) |
Depreciation expensed during the period | (975) | (781) |
Depreciation classified as exploration | (3) | (19) |
Impairments for the year | (7) | (32) |
Divestment and demerger of subsidiaries and operations | (429) | |
Transfers and other movements | (72) | (58) |
At the end of the financial year | 2,361 | 3,350 |
Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | 5,290 | |
At the end of the financial year | 5,052 | 5,290 |
Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | (1,940) | |
At the end of the financial year | (2,691) | (1,940) |
Land and buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | 638 | 689 |
Additions | 41 | 25 |
Depreciation expensed during the period | (103) | (111) |
Impairments for the year | (7) | (30) |
Divestment and demerger of subsidiaries and operations | (116) | |
Transfers and other movements | (1) | 65 |
At the end of the financial year | 452 | 638 |
Land and buildings [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | 897 | |
At the end of the financial year | 745 | 897 |
Land and buildings [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | (259) | |
At the end of the financial year | (293) | (259) |
Plant and equipment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | 2,712 | 2,358 |
Additions | 825 | 1,227 |
Remeasurements of index-linked freight contracts | (369) | (59) |
Depreciation expensed during the period | (872) | (670) |
Depreciation classified as exploration | (3) | (19) |
Impairments for the year | (2) | |
Divestment and demerger of subsidiaries and operations | (313) | |
Transfers and other movements | (71) | (123) |
At the end of the financial year | 1,909 | 2,712 |
Plant and equipment [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | 4,393 | |
At the end of the financial year | 4,307 | 4,393 |
Plant and equipment [member] | Accumulated depreciation, amortisation and impairment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
At the beginning of the financial year | (1,681) | |
At the end of the financial year | $ (2,398) | $ (1,681) |
Leases - Summary of Amounts Rec
Leases - Summary of Amounts Recorded in Income Statement and Cash Flow Statements (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Of Leases Recorded In Income Statement And Cash Flow Statements [Line Items] | |||
Depreciation of right of use assets | $ 975 | $ 781 | |
Short term, low-value and variable lease costs | 847 | 834 | $ 637 |
Interest on lease liabilities | 119 | 102 | 82 |
Principal lease payments | 1,130 | 732 | 632 |
Lease interest payments | 119 | 102 | 82 |
Continuing operation [member] | |||
Disclosure Of Leases Recorded In Income Statement And Cash Flow Statements [Line Items] | |||
Depreciation of right of use assets | $ 964 | $ 753 | $ 623 |
Leases - Summary of Amounts R_2
Leases - Summary of Amounts Recorded in Income Statement and Cash Flow Statements (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of quantitative information about leases for lessee [abstract] | |||
Variable lease costs | $ 585 | $ 510 | $ 415 |
Short-term lease costs | 222 | 294 | 201 |
Low-value lease costs | $ 40 | $ 30 | $ 21 |
Net Finance Costs - Summary of
Net Finance Costs - Summary of Net Finance Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest expense using the effective interest rate method: | |||
Interest on bank loans, overdrafts and all other borrowings | $ 491 | $ 607 | $ 1,093 |
Interest capitalised at 2.90% (2021: 2.83%; 2020: 4.14%) | (113) | (204) | (265) |
Interest on lease liabilities | 119 | 102 | 82 |
Discounting on provisions and other liabilities | 645 | 353 | 343 |
Other gains and losses: | |||
Fair value change on hedged loans | (1,286) | (779) | 721 |
Fair value change on hedging derivatives | 1,277 | 704 | (788) |
Loss on bond repurchase | 395 | ||
Exchange variations on net debt | (99) | 99 | (18) |
Other | 16 | 13 | 24 |
Total financial expenses | 1,050 | 1,290 | 1,192 |
Financial income | |||
Interest income | (81) | (67) | (334) |
Net finance costs | $ 969 | $ 1,223 | $ 858 |
Net Finance Costs - Summary o_2
Net Finance Costs - Summary of Net Finance Costs (Parenthetical) (Detail) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) Programs | Jun. 30, 2020 USD ($) | |
Net Finance Costs [Line Items] | |||
Interest capitalised | 2.90% | 2.83% | 4.14% |
Tax relief for capitalised interest | $ 34 | $ 61 | $ 80 |
Repayments of hybrid debt instruments | $ 3,358 | $ 8,357 | $ 2,008 |
Number of repurchase programs | Programs | 2 | ||
Hybrid Debt Repurchase Program [Member] | |||
Net Finance Costs [Line Items] | |||
Repayments of hybrid debt instruments | $ 3,402 |
Financial Risk Management - Add
Financial Risk Management - Additional Information (Detail) t in Thousands, $ in Millions | 12 Months Ended | |||||||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) t | Jun. 30, 2022 AUD ($) t | Jun. 30, 2022 GBP (£) t | Jun. 30, 2022 EUR (€) t | Jun. 30, 2022 USD ($) t | Jun. 30, 2022 CLP ($) t | Nov. 30, 2021 USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | $ 17,087 | $ 13,852 | ||||||
Transfer between fair value hierarchy categories | $ 0 | |||||||
Percentage of borrowings exposed to floating interest rate | 80% | 82% | ||||||
Weighted average interest rate payable | USD LIBOR + 1.74 per cent | USD LIBOR + 2.18 per cent | ||||||
Debt instrument variable interest rate spread | 2.18% | 1.74% | 1.74% | 1.74% | 1.74% | 1.74% | ||
Loans received from bank | $ 2,300 | $ 1,600 | ||||||
Interest rate risk [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Reasonable possible change in risk, percentage | 1% | 1% | 1% | 1% | 1% | |||
Effect on equity and profit after taxation, due to reasonable possible change in risk | 7 | $ 29 | ||||||
Notional value | 16,800 | 15,579 | ||||||
Currency risk [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Reasonable possible change in risk, amount | $ 0.01 | £ 0.01 | € 0.01 | $ 10 | ||||
Effect on equity and profit after taxation, due to reasonable possible change in risk | $ 21 | 16 | ||||||
Commodity price risk [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Reasonable possible change in risk, percentage | 10% | |||||||
Commodity price risk [member] | Forward commodity and other derivative contracts [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Net fair value of financial assets and (liabilities) | $ 138 | $ 56 | ||||||
Commodity price risk [member] | Provisionally priced contract [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Reasonable possible change in risk, percentage | 10% | 10% | 10% | 10% | 10% | |||
Tonnes of copper exposure | t | 254 | 289 | 289 | 289 | 289 | 289 | ||
Effect on equity and profit after taxation, due to reasonable possible change in risk | $ 166 | $ 162 | ||||||
Fixed interest rate not swapped to floating rate [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | 3,018 | 3,018 | ||||||
Fixed interest rate not swapped to floating rate [member] | At fair value [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Borrowings | $ 4,052 | 3,126 | ||||||
Revolving credit facility [member] | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Revolving credit facility, maximum amount | $ 5,500 | $ 5,500 |
Financial Risk Management - Sum
Financial Risk Management - Summary of Foreign Currency Risk Arising From Financial Assets and Liabilities, Which Are Denominated In Currencies Other Than The US Dollar (Detail) - Currency risk [member] - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of Detailed Information about Foreign Currency Risk Arising from Financial Assets and Liabilities which are Denominated in Currencies other than the US Dollar Explanatory [Line Items] | ||
Net Financial Assets Liabilities | $ (3,396) | $ (4,041) |
AUD | ||
Disclosure of Detailed Information about Foreign Currency Risk Arising from Financial Assets and Liabilities which are Denominated in Currencies other than the US Dollar Explanatory [Line Items] | ||
Net Financial Assets Liabilities | (3,649) | (4,421) |
CLP | ||
Disclosure of Detailed Information about Foreign Currency Risk Arising from Financial Assets and Liabilities which are Denominated in Currencies other than the US Dollar Explanatory [Line Items] | ||
Net Financial Assets Liabilities | (602) | (649) |
GBP | ||
Disclosure of Detailed Information about Foreign Currency Risk Arising from Financial Assets and Liabilities which are Denominated in Currencies other than the US Dollar Explanatory [Line Items] | ||
Net Financial Assets Liabilities | 388 | 535 |
EUR | ||
Disclosure of Detailed Information about Foreign Currency Risk Arising from Financial Assets and Liabilities which are Denominated in Currencies other than the US Dollar Explanatory [Line Items] | ||
Net Financial Assets Liabilities | 280 | 366 |
Other | ||
Disclosure of Detailed Information about Foreign Currency Risk Arising from Financial Assets and Liabilities which are Denominated in Currencies other than the US Dollar Explanatory [Line Items] | ||
Net Financial Assets Liabilities | $ 187 | $ 128 |
Financial Risk Management - S_2
Financial Risk Management - Summary of Financial Assets and Liabilities by Class (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | $ 1,431 | $ 1,840 | |
Current other financial assets | 629 | 230 | |
Non-current other financial assets | 802 | 1,610 | |
Cash and cash equivalents | 17,236 | 15,246 | $ 13,426 |
Trade and other receivables | 5,579 | 6,396 | |
Total financial assets | 23,819 | 22,996 | |
Non-financial assets | 71,347 | 85,931 | |
Total assets | 95,166 | 108,927 | 105,733 |
Other financial liabilities | 2,576 | 1,276 | |
Current other financial liabilities | 579 | 130 | |
Trade and other payables | 6,687 | 7,027 | |
Bank loans | 1,600 | 2,300 | |
Notes and debentures | 11,363 | 14,769 | |
Lease liabilities | 2,576 | 3,896 | |
Total financial liabilities | 25,612 | 29,110 | |
Non-financial liabilities | 20,788 | 24,212 | |
Total liabilities | 46,400 | 53,322 | $ 53,558 |
Financial assets held at fair value through profit or loss [member] | Level 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Non-current other financial assets | 273 | ||
Financial assets held at amortised cost [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current other financial assets | 100 | ||
Cash and cash equivalents | 17,236 | 15,246 | |
Financial liabilities held at amortised cost [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Bank loans | 2,472 | 2,260 | |
Notes and debentures | 11,363 | 14,769 | |
Other | 17 | 58 | |
Current other derivative contracts [member] | Financial liabilities held at fair value through profit or loss [member] | Levels 2 and 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 118 | 52 | |
Non-current cross currency and interest rate swaps [member] | Financial liabilities held at fair value through profit or loss [member] | Level 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 1,466 | 586 | |
Trades and other payables [member] | Financial liabilities held at amortised cost [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other payables | 5,223 | 6,277 | |
Provisionally priced trade payables [member] | Financial liabilities held at fair value through profit or loss [member] | Level 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other payables | 1,385 | 574 | |
Current other financial liabilities [Member] | Financial liabilities held at amortised cost [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Current other financial liabilities | 103 | 78 | |
Non current other financial liabilities [Member] | Financial liabilities held at amortised cost [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 500 | 560 | |
Current cross currency and interest rate swaps [member] | Financial assets held at fair value through profit or loss [member] | Level 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 20 | ||
Current cross currency and interest rate swaps [member] | Financial liabilities held at fair value through profit or loss [member] | Level 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 358 | ||
Current other derivative contracts [member] | Financial assets held at fair value through profit or loss [member] | Levels 2 and 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 326 | 207 | |
Current other investments [member] | Financial assets held at fair value through profit or loss [member] | Level 1 and 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 203 | 3 | |
Non-current cross currency and interest rate swaps [member] | Financial assets held at fair value through profit or loss [member] | Level 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 136 | 1,123 | |
Non-current other derivative contracts [member] | Financial assets held at fair value through profit or loss [member] | Levels 2 and 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 16 | 152 | |
Non-current other derivative contracts [member] | Financial liabilities held at fair value through profit or loss [member] | Levels 2 and 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial liabilities | 31 | ||
Non-current investment in shares [member] | Financial assets held at fair value through other comprehensive income [member] | Level 1 and 3 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 138 | 31 | |
Non-current other investments [member] | Financial assets held at fair value through profit or loss [member] | Level 1 and 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other financial assets | 239 | 304 | |
Trade and other receivable [member] | Financial assets held at amortised cost [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | 1,674 | 2,363 | |
Provisionally priced trade receivables [member] | Financial assets held at fair value through profit or loss [member] | Level 2 [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade and other receivables | $ 3,478 | $ 3,547 |
Financial Risk Management - S_3
Financial Risk Management - Summary of Financial Assets and Liabilities by Class (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Other financial assets | $ 1,431 | $ 1,840 |
Input taxes receivable | 427 | 486 |
Input taxes payable | 79 | 176 |
Other receivables | 233 | 0 |
BHP Foundation [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Investments held which are restricted and not available for general use by the Group | 252 | 260 |
Financial assets and liabilities held at fair value through profit or loss [member] | Other derivative contracts [member] | Level 3 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other financial assets and liabilities | 0 | 121 |
Financial assets held at fair value through profit or loss [member] | US Treasury Notes [member] | Level 1 [member] | BHP Foundation [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Other financial assets | $ 119 | $ 72 |
Financial Risk Management - S_4
Financial Risk Management - Summary of Carrying Amounts of Group's Notes and Debentures by Currency and Derivatives Which Hedge (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of notes and debentures | $ 11,363 | $ 14,769 |
Recognised in cash flow hedging reserve | (59) | (142) |
Recognised in cost of hedging reserve | 27 | 77 |
Recognised in the income statement | 12 | (18) |
Accrued cash flows | 174 | 177 |
Total derivatives fair value | 1,688 | (557) |
Hedged value of notes and debentures | 12,897 | 14,118 |
Currency risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | 1,548 | 650 |
Interest rate risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | (14) | (1,301) |
USD [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of notes and debentures | 4,740 | 6,270 |
Recognised in the income statement | (7) | 11 |
Accrued cash flows | 86 | 77 |
Total derivatives fair value | 63 | (230) |
Hedged value of notes and debentures | 4,724 | 5,952 |
USD [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | (16) | (318) |
GBP [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of notes and debentures | 2,599 | 3,387 |
Recognised in cash flow hedging reserve | (35) | (81) |
Recognised in cost of hedging reserve | 13 | 25 |
Recognised in the income statement | 26 | (34) |
Accrued cash flows | 42 | 53 |
Total derivatives fair value | 727 | (146) |
Hedged value of notes and debentures | 3,280 | 3,278 |
GBP [member] | Currency risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | 796 | 435 |
GBP [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | (115) | (544) |
EUR [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of notes and debentures | 3,449 | 4,486 |
Recognised in cash flow hedging reserve | (16) | (33) |
Recognised in cost of hedging reserve | 8 | 27 |
Recognised in the income statement | (4) | 7 |
Accrued cash flows | 45 | 49 |
Total derivatives fair value | 730 | (295) |
Hedged value of notes and debentures | 4,146 | 4,141 |
EUR [member] | Currency risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | 585 | 73 |
EUR [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | 112 | (418) |
CAD [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Carrying amount of notes and debentures | 575 | 626 |
Recognised in cash flow hedging reserve | (8) | (28) |
Recognised in cost of hedging reserve | 6 | 25 |
Recognised in the income statement | (3) | (2) |
Accrued cash flows | 1 | (2) |
Total derivatives fair value | 168 | 114 |
Hedged value of notes and debentures | 747 | 747 |
CAD [member] | Currency risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | 167 | 142 |
CAD [member] | Interest rate risk [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Risk | $ 5 | $ (21) |
Financial Risk Management - S_5
Financial Risk Management - Summary of Carrying Amounts of Group's Notes and Debentures by Currency and Derivatives Which Hedge (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about hedged items [line items] | ||
Borrowings | $ 13,852 | $ 17,087 |
Fixed interest rate not swapped to floating rate [member] | ||
Disclosure of detailed information about hedged items [line items] | ||
Borrowings | $ 3,018 | $ 3,018 |
Financial Risk Management - S_6
Financial Risk Management - Summary of Hedging instruments (Detail) - Interest rate risk [member] - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | $ 15,579 | $ 16,800 |
Interest rate swap contract [member] | USD [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | 10,719 | |
cross currency interest rate swaps [member] | EUR [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | 3,187 | |
cross currency interest rate swaps [member] | GBP [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | 1,673 | |
Not later than two years [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | 2,075 | |
Not later than two years [member] | Interest rate swap contract [member] | USD [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | 748 | |
Not later than two years [member] | cross currency interest rate swaps [member] | EUR [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | 404 | |
Not later than two years [member] | cross currency interest rate swaps [member] | GBP [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional value | $ 923 |
Financial Risk Management - S_7
Financial Risk Management - Summary of Reconciliation of Components of Equity and Analysis of Movements in Reserves for all Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | $ 46 | $ 27 |
Add: Change in fair value of hedging instrument recognised in OCI | (640) | 604 |
Less: Reclassified from reserves to interest expense – recognised through OCI | 616 | (585) |
At the end of the financial year | 22 | 46 |
Cash flow hedging reserve, gross [member] | ||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | 142 | 71 |
Add: Change in fair value of hedging instrument recognised in OCI | (914) | 863 |
Less: Reclassified from reserves to interest expense – recognised through OCI | 831 | (792) |
At the end of the financial year | 59 | 142 |
Cash flow hedging reserve, tax [member] | ||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | (42) | (21) |
Add: Change in fair value of hedging instrument recognised in OCI | 274 | (259) |
Less: Reclassified from reserves to interest expense – recognised through OCI | (250) | 238 |
At the end of the financial year | (18) | (42) |
Cash flow hedging reserve, net [member] | ||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | 100 | 50 |
Add: Change in fair value of hedging instrument recognised in OCI | (640) | 604 |
Less: Reclassified from reserves to interest expense – recognised through OCI | 581 | (554) |
At the end of the financial year | 41 | 100 |
Cost of hedging reserve, gross [member] | ||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | (77) | (32) |
Less: Reclassified from reserves to interest expense – recognised through OCI | 50 | (45) |
At the end of the financial year | (27) | (77) |
Cost of hedging reserve, tax [member] | ||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | 23 | 9 |
Less: Reclassified from reserves to interest expense – recognised through OCI | (15) | 14 |
At the end of the financial year | 8 | 23 |
Cost of hedging reserve, net [member] | ||
Disclosure of information about amounts that affected statement of comprehensive income as result of hedge accounting [line items] | ||
At the beginning of the financial year | (54) | (23) |
Less: Reclassified from reserves to interest expense – recognised through OCI | 35 | (31) |
At the end of the financial year | $ (19) | $ (54) |
Financial Risk Management - S_8
Financial Risk Management - Summary of Movement of Interest Bearing Liabilities and Related Derivatives (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Proceeds from interest bearing liabilities | $ 1,164 | $ 568 | $ 514 |
Settlements of debt related instruments | 167 | (157) | |
Repayment of interest bearing liabilities | (3,391) | (8,395) | |
Change from Net financing cash flows | (2,227) | (7,660) | |
Other movements: | |||
Loss on bond repurchase | 395 | ||
Bank loans [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
At the beginning of the financial year | 2,260 | 2,492 | |
Proceeds from interest bearing liabilities | 1,150 | 504 | |
Repayment of interest bearing liabilities | (941) | (737) | |
Change from Net financing cash flows | 209 | (233) | |
Other movements: | |||
Foreign exchange impacts | 3 | (1) | |
Other interest bearing liabilities/derivative related changes | 2 | ||
At the end of the financial year | 2,472 | 2,260 | 2,492 |
Notes and debentures [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
At the beginning of the financial year | 14,769 | 21,045 | |
Repayment of interest bearing liabilities | (1,232) | (6,888) | |
Change from Net financing cash flows | (1,232) | (6,888) | |
Other movements: | |||
Loss on bond repurchase | 579 | ||
Interest rate impacts | (1,286) | (764) | |
Foreign exchange impacts | (894) | 798 | |
Other interest bearing liabilities/derivative related changes | 6 | (1) | |
At the end of the financial year | 11,363 | 14,769 | 21,045 |
Lease Liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
At the beginning of the financial year | 3,896 | 3,443 | |
Repayment of interest bearing liabilities | (1,163) | (770) | |
Change from Net financing cash flows | (1,163) | (770) | |
Other movements: | |||
Divestment And Demerger Of Subsidiaries And Operations | (492) | ||
Foreign exchange impacts | (126) | 115 | |
Lease additions | 866 | 1,223 | |
Re-measurements of index-linked freight contracts | (369) | (59) | |
Other interest bearing liabilities/derivative related changes | (36) | (56) | |
At the end of the financial year | 2,576 | 3,896 | 3,443 |
Other interest bearing liabilities [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
At the beginning of the financial year | 58 | 68 | |
Proceeds from interest bearing liabilities | 14 | 64 | |
Repayment of interest bearing liabilities | (55) | ||
Change from Net financing cash flows | (41) | 64 | |
Other movements: | |||
Foreign exchange impacts | (2) | (14) | |
Other interest bearing liabilities/derivative related changes | 2 | (60) | |
At the end of the financial year | 17 | 58 | 68 |
Cross currency and interest rate swaps [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
At the beginning of the financial year | (557) | (433) | |
Settlements of debt related instruments | 167 | ||
Change from Net financing cash flows | 167 | ||
Other movements: | |||
Loss on bond repurchase | (184) | ||
Interest rate impacts | 1,277 | 704 | |
Foreign exchange impacts | 898 | (796) | |
Other interest bearing liabilities/derivative related changes | 70 | (15) | |
At the end of the financial year | $ 1,688 | $ (557) | $ (433) |
Financial Risk Management - S_9
Financial Risk Management - Summary of Movement of Interest Bearing Liabilities and Related Derivatives - Parenthetical (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Repayments of borrowings classified as financing activities including discontinued operations | $ 3,391 | $ 8,395 |
Discontinued operations [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Repayments of borrowings classified as financing activities including discontinued operations | $ 33 | $ 38 |
Key Management Personnel - Summ
Key Management Personnel - Summary of Key Management Personnel (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits | $ 13,979,139 | $ 14,081,625 | $ 12,564,637 |
Post-employment benefits | 634,363 | 744,951 | 1,172,727 |
Share-based payments | 11,165,439 | 11,601,866 | 13,514,588 |
Total | $ 25,778,941 | $ 26,428,442 | $ 27,251,952 |
Key Management Personnel - Addi
Key Management Personnel - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Key management personnel [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases | $ 0 | $ 0 | $ 0 |
Amounts payable | 0 | 0 | 0 |
Key management personnel [member] | Loans [member] | |||
Disclosure of transactions between related parties [line items] | |||
Amounts payable | 0 | 0 | 0 |
Amounts receivable | 0 | 0 | 0 |
Director related entities [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases | 0 | 0 | 0 |
Amounts payable | $ 0 | $ 0 | $ 0 |
Employee Share Ownership Plan_2
Employee Share Ownership Plans - Summary of Description of Plans (Detail) | 12 Months Ended |
Jun. 30, 2022 | |
CDP and STIP [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Type | Short-term incentive |
Overview | The CDP was implemented in FY2020 as a replacement for the STIP, both of which are generally plans for Executive KMP and members of the Executive Leadership Team who are not Executive KMP. Under the CDP, two thirds of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the vesting period (and the remaining one third is delivered in cash). Two awards of deferred shares are granted, each of the equivalent value to the cash award, vesting in two and five years respectively. Under STIP, half of the value of a participant’s short-term incentive amount is awarded as rights to receive BHP Group Limited shares at the end of the two-year vesting period. |
Vesting conditions | CDP: Service conditions only for the two-year award. Vesting of the five-year award is subject to service conditions and also to holistic review of performance at the end of the five-year vesting period, including a five-year view on HSEC performance, profitability, cash flow, balance sheet health, returns to shareholders, corporate governance and conduct. STIP: Service conditions only. |
Vesting period | CDP – 2 and 5 years STIP – 2 years |
Dividend Equivalent Payment | CDP – Yes STIP – Yes |
Exercise period | None |
LTIP and MAP [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Type | Long-term incentive |
Overview | The LTIP is a plan for Executive KMP and members of the Executive Leadership Team who are not Executive KMP, and awards are granted annually. The MAP is a plan for BHP senior management who are not KMP. The number of share rights awarded is determined by a participant’s role and grade. |
Vesting conditions | LTIP: Service and performance conditions. BHP’s Total Shareholder Return1 (TSR) performance relative to the Peer Group TSR over a five-year performance period determines the vesting of 67 per cent of the awards, while performance relative to the Index TSR (being the index value where the comparator group is a market index) determines the vesting of 33 per cent of the awards. For awards granted from December 2017 onwards, 25 per cent of the award will vest where BHP’s TSR is equal to the median TSR of the relevant comparator group(s), as measured over the performance period. Where TSR is below the median, awards will not vest. Vesting occurs on a sliding scale when BHP’s TSR measured over the performance period is between the median TSR of the relevant comparator group(s) up to a nominated level of TSR outperformance over the relevant comparator group(s), as determined by the Committee, above which 100 per cent of the award will vest. MAP: Service conditions only. |
Vesting period | LTIP – 5 years MAP – 1 to 5 years |
Dividend Equivalent Payment | LTIP – Yes MAP – Varies |
Exercise period | None |
Transitional and Commencement KMP Awards | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Type | Long-term incentive |
Overview | Awards may be granted to new Executive KMP recruited into or within the Group to bridge the time-based gap between the vesting of awards either granted in their non-KMP roles or to replace awards foregone from a previous company. |
Vesting conditions | Service and performance conditions. The Remuneration Committee has absolute discretion to determine if the performance condition has been met and whether any, all or part of the award will vest (or otherwise lapse), having regard to personal performance and the underlying financial performance of the Group during the performance period. To the extent the performance condition is not achieved, awards will lapse. There is no retesting of the performance condition. Vested awards may be subject to a holding lock. |
Vesting period | 2 years |
Dividend Equivalent Payment | Yes |
Exercise period | None |
Shareplus [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Type | All-employee share purchase plan |
Overview | Employees may contribute up to US$5,000 to acquire shares in any plan year. On the third anniversary of the start of a plan year, the Group will match the number of acquired shares. |
Vesting conditions | Service conditions only |
Vesting period | 3 years |
Dividend Equivalent Payment | No |
Exercise period | None |
Employee Share Ownership Plan_3
Employee Share Ownership Plans - Summary of Description of Plans (Parenthetical) (Detail) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Shareplus [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Maximum employee contributions to acquire shares | $ 5,000 |
Share Based Payments Vesting Period | 3 years |
Long-Term Incentive Plan [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 5 years |
Vesting percentage | 100% |
Long-Term Incentive Plan [member] | Peer Group Total Shareholder Return [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting percentage | 67% |
Long-Term Incentive Plan [member] | Index Total Shareholder Return [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting percentage | 33% |
Long-Term Incentive Plan [member] | Median Total Shareholder Return [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting percentage | 25% |
Short term incentive plan [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 2 years |
Cash and deferred payment plan [member] | First tranche [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 2 years |
Cash and deferred payment plan [member] | Second tranche [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 5 years |
Bottom of range [member] | MAP awards [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 1 year |
Top of range [member] | MAP awards [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Vesting period | 5 years |
Employee Share Ownership Plan_4
Employee Share Ownership Plans - Summary of Employee Share Awards (Detail) - 12 months ended Jun. 30, 2022 | shares Years $ / shares | shares Years £ / shares |
BHP Group Limited [Member] | CDP awards [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 216,340 | 216,340 |
Number of awards issued during the year | 491,654 | 491,654 |
Number of awards at the end of the financial year | 707,994 | 707,994 |
Weighted average remaining contractual life (years) | Years | 2.2 | 2.2 |
BHP Group Limited [Member] | STIP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 200,785 | 200,785 |
Number of awards issued during the year | 9,014 | 9,014 |
Number of awards vested and exercised | 125,989 | 125,989 |
Number of awards at the end of the financial year | 83,810 | 83,810 |
Weighted average remaining contractual life (years) | Years | 0.2 | 0.2 |
Weighted average share price at exercise date | $ / shares | $ 47.7 | |
BHP Group Limited [Member] | LTIP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 3,543,220 | 3,543,220 |
Number of awards issued during the year | 714,781 | 714,781 |
Number of awards vested and exercised | 1,114,524 | 1,114,524 |
Number of awards at the end of the financial year | 3,143,477 | 3,143,477 |
Weighted average remaining contractual life (years) | Years | 1.8 | 1.8 |
Weighted average share price at exercise date | $ / shares | $ 47.7 | |
BHP Group Limited [Member] | MAP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 9,953,517 | 9,953,517 |
Number of awards issued during the year | 3,915,785 | 3,915,785 |
Number of awards vested and exercised | 4,615,318 | 4,615,318 |
Number of awards lapsed | 2,321,453 | 2,321,453 |
Number of BHP Group Plc awards transferred to BHP Group Limited | 161,642 | 161,642 |
Number of awards at the end of the financial year | 7,094,173 | 7,094,173 |
Weighted average remaining contractual life (years) | Years | 1.2 | 1.2 |
Weighted average share price at exercise date | $ / shares | $ 46.62 | |
BHP Group Limited [Member] | Transitional and Commencement KMP awards [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 77,000 | 77,000 |
Number of awards issued during the year | 9,279 | 9,279 |
Number of awards at the end of the financial year | 86,279 | 86,279 |
Weighted average remaining contractual life (years) | Years | 0.2 | 0.2 |
BHP Group Limited [Member] | Shareplus [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 4,539,194 | 4,539,194 |
Number of awards issued during the year | 3,091,639 | 3,091,639 |
Number of awards vested and exercised | 2,465,378 | 2,465,378 |
Number of awards lapsed | 531,479 | 531,479 |
Number of BHP Group Plc awards transferred to BHP Group Limited | 280,494 | 280,494 |
Number of awards at the end of the financial year | 4,914,470 | 4,914,470 |
Weighted average remaining contractual life (years) | Years | 1.3 | 1.3 |
Weighted average share price at exercise date | $ / shares | $ 50.54 | |
BHP Group Plc [member] | MAP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 176,049 | 176,049 |
Number of awards issued during the year | 72,412 | 72,412 |
Number of awards vested and exercised | 70,657 | 70,657 |
Number of awards lapsed | 16,162 | 16,162 |
Number of BHP Group Plc awards transferred to BHP Group Limited | 161,642 | 161,642 |
Weighted average share price at exercise date | £ / shares | £ 22.18 | |
BHP Group Plc [member] | Shareplus [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of awards at the beginning of the financial year | 232,767 | 232,767 |
Number of awards issued during the year | 63,209 | 63,209 |
Number of awards vested and exercised | 2,174 | 2,174 |
Number of awards lapsed | 13,308 | 13,308 |
Number of BHP Group Plc awards transferred to BHP Group Limited | 280,494 | 280,494 |
Weighted average share price at exercise date | £ / shares | £ 22.11 |
Employee Share Ownership Plan_5
Employee Share Ownership Plans - Summary of Employee Share Awards (Parenthetical) (Detail) - BHP Group Limited [member] | Jan. 31, 2022 shares | Jun. 30, 2022 Awards |
Management Award Plan [member] | ||
Statement [Line Items] | ||
Number of share options exercisable in share-based payment arrangement | Awards | 2,761 | |
Number Of Outstanding Share Options Transferred On Unification | 161,642 | |
Share Plus [member] | ||
Statement [Line Items] | ||
Number Of Outstanding Share Options Transferred On Unification | 280,494 |
Employee Share Ownership Plan_6
Employee Share Ownership Plans - Additional Information (Detail) - BHP Group Limited [member] | 12 Months Ended | |
Jun. 01, 2022 shares | Jun. 30, 2022 shares | |
Uplift Awards [Member] | ||
Statement [Line Items] | ||
Share based compensation by share based award equity instruments other than options granted | 1,574,034 | |
Uplift awards multiplier | 1.1205 | |
Unification [Member] | ||
Statement [Line Items] | ||
Number of shares received for every share in the old company | 1 |
Employee Share Ownership Plan_7
Employee Share Ownership Plans - Summary of Fair Value and Assumptions in the Calculation of Fair Value for Awards Issued (Detail) - 12 months ended Jun. 30, 2022 | USD ($) yr $ / shares | USD ($) yr £ / shares |
BHP Group Limited [member] | CDP awards [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average fair value of awards granted during the year | $ | $ 27.46 | $ 27.46 |
Share price at grant date | $ / shares | $ 38.05 | |
BHP Group Limited [member] | CDP awards [Member] | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Estimated life of awards | yr | 2 | 2 |
BHP Group Limited [member] | CDP awards [Member] | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Estimated life of awards | yr | 5 | 5 |
BHP Group Limited [member] | LTIP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average fair value of awards granted during the year | $ | $ 13.66 | $ 13.66 |
Risk-free interest rate | 1.36% | 1.36% |
Estimated life of awards | yr | 5 | 5 |
Share price at grant date | $ / shares | $ 38.05 | |
Estimated volatility of share price | 30% | 30% |
BHP Group Limited [member] | MAP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average fair value of awards granted during the year | $ | $ 22.1 | $ 22.1 |
BHP Group Limited [member] | MAP awards [member] | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Estimated life of awards | yr | 1 | 1 |
Dividend yield | 5% | 5% |
BHP Group Limited [member] | MAP awards [member] | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Estimated life of awards | yr | 5 | 5 |
Dividend yield | 7.50% | 7.50% |
BHP Group Limited [member] | MAP awards [member] | Range One [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share price at grant date | $ / shares | $ 51.33 | |
BHP Group Limited [member] | MAP awards [member] | Range Two [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share price at grant date | $ / shares | 36.39 | |
BHP Group Limited [member] | MAP awards [member] | Range Three [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share price at grant date | $ / shares | 46.55 | |
BHP Group Limited [member] | MAP awards [member] | Range Four [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share price at grant date | $ / shares | 50.58 | |
BHP Group Limited [member] | MAP awards [member] | Range Five [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share price at grant date | $ / shares | $ 42.52 | |
BHP Group Limited [member] | Shareplus [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average fair value of awards granted during the year | $ | $ 22.8 | $ 22.8 |
Risk-free interest rate | 0.12% | 0.12% |
Estimated life of awards | yr | 3 | 3 |
Share price at grant date | $ / shares | $ 45.66 | |
Dividend yield | 5.51% | 5.51% |
BHP Group Plc [member] | MAP awards [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average fair value of awards granted during the year | $ | $ 20.85 | $ 20.85 |
Estimated life of awards | yr | 3 | 3 |
Share price at grant date | £ / shares | $ 18.62 | |
BHP Group Plc [member] | MAP awards [member] | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Dividend yield | 5% | 5% |
BHP Group Plc [member] | MAP awards [member] | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Dividend yield | 7.50% | 7.50% |
BHP Group Plc [member] | Shareplus [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Weighted average fair value of awards granted during the year | $ | $ 14.53 | $ 14.53 |
Risk-free interest rate | 0.15% | 0.15% |
Estimated life of awards | yr | 3 | 3 |
Share price at grant date | £ / shares | $ 20.68 | |
Dividend yield | 6.60% | 6.60% |
Employee Benefits, Restructur_3
Employee Benefits, Restructuring and Post-retirement Employee Benefits Provisions - Summary of Employee Benefits, Restructuring and Post-retirement Employee Benefits Provisions (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Provisions [abstract] | ||
Employee benefits | $ 1,351 | $ 1,624 |
Restructuring | 27 | 54 |
Post-retirement employee benefits | 281 | 534 |
Total provisions | 1,659 | 2,212 |
Current | 1,319 | 1,606 |
Non-current | $ 340 | $ 606 |
Employee Benefits, Restructur_4
Employee Benefits, Restructuring and Post-retirement Employee Benefits Provisions - Summary of Reconciliation of Employee Benefits, Restructuring and Post-retirement Employee Benefits (Detail) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Disclosure of employee benefits restructuring and post retirement employee benefits provisions [line items] | |
At the beginning of the financial year | $ 2,212 |
Charge/(credit) for the year: | |
Underlying | 1,526 |
Discounting | 30 |
Net interest expense | (9) |
Exchange variations | (183) |
Released during the year | (62) |
Remeasurement gains taken to retained earnings | (24) |
Utilisation | (1,482) |
Divestment and demerger of subsidiaries and operations | (351) |
Transfers and other movements | 2 |
At the end of the financial year | 1,659 |
Employee benefits [member] | |
Disclosure of employee benefits restructuring and post retirement employee benefits provisions [line items] | |
At the beginning of the financial year | 1,624 |
Charge/(credit) for the year: | |
Underlying | 1,424 |
Exchange variations | (131) |
Released during the year | (58) |
Utilisation | (1,381) |
Divestment and demerger of subsidiaries and operations | (128) |
Transfers and other movements | 1 |
At the end of the financial year | 1,351 |
Restructuring [member] | |
Disclosure of employee benefits restructuring and post retirement employee benefits provisions [line items] | |
At the beginning of the financial year | 54 |
Charge/(credit) for the year: | |
Underlying | 24 |
Exchange variations | (1) |
Released during the year | (2) |
Utilisation | (43) |
Divestment and demerger of subsidiaries and operations | (6) |
Transfers and other movements | 1 |
At the end of the financial year | 27 |
Post-retirement employee benefits [member] | |
Disclosure of employee benefits restructuring and post retirement employee benefits provisions [line items] | |
At the beginning of the financial year | 534 |
Charge/(credit) for the year: | |
Underlying | 78 |
Discounting | 30 |
Net interest expense | (9) |
Exchange variations | (51) |
Released during the year | (2) |
Remeasurement gains taken to retained earnings | (24) |
Utilisation | (58) |
Divestment and demerger of subsidiaries and operations | (217) |
At the end of the financial year | $ 281 |
Employee Benefits, Restructur_5
Employee Benefits, Restructuring and Post-retirement Employee Benefits Provisions - Summary of Reconciliation of Employee Benefits, Restructuring and Post-retirement Employee Benefits (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure Of Employee Benefits Restructuring And Post Retirement Employee Benefits Provisions [line items] | ||
Defined Benefit Obligation at Present Value | $ 165 | $ 377 |
Recognised Assets Defined Benefit Plan | (169) | (398) |
Unfunded Defined Pension And Post Retirement Medical Benefits | 85 | 321 |
UnFunded Postemployment Benefit Obligations | $ 200 | $ 234 |
Employee Benefits, Restructur_6
Employee Benefits, Restructuring and Post-retirement Employee Benefits Provisions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of defined benefit plans [line items] | |||
Contributions paid | $ 324 | $ 301 | $ 243 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) $ in Millions | 12 Months Ended | ||||
Jun. 01, 2022 shares | May 26, 2022 shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Total comprehensive income (loss) attributable to BHP shareholders | $ (30,820) | $ (11,352) | $ (7,898) | ||
Consideration paid consisting of cash and cash equivalents | 683 | ||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | (399) | ||||
Discontinued operations [member] | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Total comprehensive income (loss) attributable to BHP shareholders | 10,596 | 231 | 118 | ||
Consideration paid consisting of cash and cash equivalents | 683 | ||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | (399) | 0 | 0 | ||
Discontinued operations [member] | Woodside [Member] | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Shares received as consideration for disposal of business | shares | 914,768,948 | ||||
Consideration paid consisting of cash and cash equivalents | 700 | ||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | 400 | ||||
Cash and cash equivalents transferred including cash disposed off | 1,100 | ||||
Discontinued operations [member] | Petroleum [member] | Operating segments [member] | |||||
Disclosure of analysis of single amount of discontinued operations [line items] | |||||
Shares received as consideration for disposal of business | shares | 914,768,948 | ||||
Share distribution per share held after disposal of business | shares | 5.534 | ||||
Consideration paid consisting of cash and cash equivalents | $ 683 | $ 0 | $ 0 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Income Statement - Discontinued Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue | $ 65,098 | $ 56,921 | $ 38,924 |
Other income | 1,398 | 380 | 720 |
Expenses excluding net finance costs | (32,371) | (30,871) | (25,453) |
Loss from equity accounted investments, related impairments and expenses | (19) | (915) | (508) |
Profit from operations | 34,106 | 25,515 | 13,683 |
Financial expenses | (1,050) | (1,290) | (1,192) |
Financial income | 81 | 67 | 334 |
Net finance costs | (969) | (1,223) | (858) |
Profit before taxation | 33,137 | 24,292 | 12,825 |
Royalty-related taxation (net of income tax benefit) | (307) | (240) | 19 |
Profit/(loss) after taxation | 10,655 | (225) | 108 |
Discontinued operations [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Revenue | 6,404 | 3,896 | 4,007 |
Other income | 170 | 130 | 57 |
Expenses excluding net finance costs | (2,207) | (3,629) | (3,322) |
Loss from equity accounted investments, related impairments and expenses | (4) | (6) | (4) |
Profit from operations | 4,363 | 391 | 738 |
Financial expenses | (165) | (88) | (70) |
Financial income | 6 | 6 | 17 |
Net finance costs | (159) | (82) | (53) |
Profit before taxation | 4,204 | 309 | 685 |
Income tax expense | (1,471) | (545) | (492) |
Royalty-related taxation (net of income tax benefit) | (237) | 11 | (85) |
Total taxation expense | (1,708) | (534) | (577) |
Profit after taxation from operating activities | 2,496 | (225) | 108 |
Net gain on Petroleum merger with Woodside (after tax) | 8,159 | 0 | 0 |
Profit/(loss) after taxation | 10,655 | (225) | 108 |
Attributable to non-controlling interests | 0 | 0 | 0 |
Attributable to BHP shareholders | $ 10,655 | $ (225) | $ 108 |
Basic earnings/(loss) per ordinary share (cents) | $ 2.105 | $ (0.045) | $ 0.021 |
Diluted earnings/(loss) per ordinary share (cents) | $ 2.101 | $ (0.045) | $ 0.021 |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Cash Flows from Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net operating cash flows | $ 2,889 | $ 1,351 | $ 1,021 |
Net investing cash flows | (904) | (1,520) | (1,033) |
Net financing cash flows | (33) | (38) | (39) |
Net increase/(decrease) in cash and cash equivalents from Discontinued operations | 1,952 | (207) | (51) |
Net cash completion payment on merger of Petroleum with Woodside | (683) | ||
Cash and cash equivalents disposed | (399) | ||
Discontinued operations [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net operating cash flows | 2,889 | 1,351 | 1,021 |
Net investing cash flows | (904) | (1,520) | (1,033) |
Net financing cash flows | (33) | (38) | (39) |
Net increase/(decrease) in cash and cash equivalents from Discontinued operations | 1,952 | (207) | (51) |
Net cash completion payment on merger of Petroleum with Woodside | (683) | ||
Cash and cash equivalents disposed | (399) | 0 | 0 |
Total cash impact | 870 | (207) | (51) |
Discontinued operations [member] | Operating segments [member] | Petroleum [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net cash completion payment on merger of Petroleum with Woodside | $ (683) | $ 0 | $ 0 |
Discontinued Operations - Sum_3
Discontinued Operations - Summary of Cash Flows from Discontinued Operations (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Proceeds from sale of assets | $ 221 | $ 158 | $ 187 |
Net repayment of interest bearing liabilities | 3,358 | 8,357 | 2,008 |
Other outflows from investing activities | (271) | (257) | (130) |
Discontinued operations [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Proceeds from sale of assets | 151 | 39 | 78 |
Net repayment of interest bearing liabilities | 33 | 38 | 39 |
Purchases of property, plant and equipment and capitalised exploration | 1,144 | 1,020 | 1,079 |
Proceeds from sale of investment in subsidiaries associates joint operations and joint venture net of cash acquired | 91 | 480 | 0 |
Other outflows from investing activities | $ 2 | $ 59 | $ 32 |
Discontinued Operations - Sum_4
Discontinued Operations - Summary of Tabular Form Of Exceptional Items Relating to Discontinued Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | $ (620) | $ (4,423) | $ (1,540) |
Exceptional items tax | (454) | (1,057) | 239 |
Exceptional items net | (1,074) | (5,480) | (1,301) |
Attributable to BHP shareholders [member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | (620) | (4,389) | (1,249) |
Exceptional items tax | (454) | (1,067) | 149 |
Exceptional items net | (1,074) | (5,456) | (1,100) |
Impairment of Potash assets [Member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | (1,314) | ||
Exceptional items tax | (473) | ||
Exceptional items net | (1,787) | ||
COVID-19 related costs [Member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | (499) | (177) | |
Exceptional items tax | 138 | 51 | |
Exceptional items net | (361) | (126) | |
Discontinued operations [member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | 8,167 | (47) | (6) |
Exceptional items tax | (8) | (270) | 2 |
Exceptional items net | 8,159 | (317) | (4) |
Discontinued operations [member] | Gain on Petroleum disposal [member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | 8,167 | ||
Exceptional items tax | (8) | ||
Exceptional items net | 8,159 | ||
Discontinued operations [member] | Attributable to BHP shareholders [member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | 8,167 | (47) | (6) |
Exceptional items tax | (8) | (270) | 2 |
Exceptional items net | $ 8,159 | (317) | (4) |
Discontinued operations [member] | Impairment of Potash assets [Member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items tax | (278) | ||
Exceptional items net | (278) | ||
Discontinued operations [member] | COVID-19 related costs [Member] | |||
Disclosure In Tabular Form Of Exceptional Items Relating To Discontinued Operations [Line Items] | |||
Exceptional items gross | (47) | (6) | |
Exceptional items tax | 8 | 2 | |
Exceptional items net | $ (39) | $ (4) |
Discontinued Operations - Sum_5
Discontinued Operations - Summary of Net Gain Loss on Merger (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure In Tabular Form Of Net Gain Loss On Merger [Line Items] | |||
Cash and cash equivalents | $ 17,236 | $ 15,246 | $ 13,426 |
Trade and other receivables | 5,579 | 6,396 | |
Other financial assets | 629 | 230 | |
Inventories | 4,935 | 4,426 | |
Property, plant and equipment | 61,295 | 73,813 | 72,362 |
Intangible assets | 1,369 | 1,437 | 1,574 |
Investments accounted for using the equity method | 1,420 | 1,742 | 2,585 |
Deferred tax assets | 56 | 1,912 | |
Other | 71,347 | 85,931 | |
Total assets | 95,166 | 108,927 | 105,733 |
Trade and other payables | 6,687 | 7,027 | |
Total liabilities | 46,400 | 53,322 | 53,558 |
Net assets | 48,766 | 55,605 | |
Net cash completion payment on merger of Petroleum with Woodside | (683) | ||
Discontinued operations [member] | |||
Disclosure In Tabular Form Of Net Gain Loss On Merger [Line Items] | |||
Cash and cash equivalents | 399 | ||
Trade and other receivables | 1,560 | ||
Other financial assets | 91 | ||
Inventories | 295 | ||
Property, plant and equipment | 12,055 | ||
Intangible assets | 66 | ||
Investments accounted for using the equity method | 240 | ||
Deferred tax assets | 1,470 | ||
Other | 18 | ||
Total assets | 16,194 | ||
Trade and other payables | 913 | ||
Interest bearing liabilities | 243 | ||
Tax payables | 300 | ||
Provisions | 4,518 | ||
Deferred income | 48 | ||
Total liabilities | 6,022 | ||
Net assets | 10,172 | ||
Fair value of Woodside shares | 19,566 | ||
Net cash completion payment on merger of Petroleum with Woodside | (683) | ||
Foreign currency translation reserve transferred to the income statement | 54 | ||
Other provisions and related indemnities recognised at completion | (353) | ||
Transaction and other directly attributable costs | (245) | ||
Income tax expense | (8) | ||
Net gain on Petroleum merger with Woodside | $ 8,159 | $ 0 | $ 0 |
Discontinued Operations - Sum_6
Discontinued Operations - Summary of Net Gain Loss on Merger (Parenthetical) (Detail) - Woodside [Member] - Discontinued operations [member] | Jun. 01, 2022 shares | May 31, 2022 $ / shares | May 31, 2022 $ / shares |
Disclosure In Tabular Form Of Net Gain Loss On Merger [Line Items] | |||
Shares received as consideration for disposal of business | 914,768,948 | ||
Closing share price | (per share) | $ 29.76 | $ 21.39 | |
AUD [member] | |||
Disclosure In Tabular Form Of Net Gain Loss On Merger [Line Items] | |||
Exchange rate | 0.7187 | 0.7187 |
Subsidiaries - Summary of Signi
Subsidiaries - Summary of Significant Subsidiaries (Detail) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
BHP Mitsui Coal Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Coal mining | |
Group's interest | 80% | |
Hunter Valley Energy Coal Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Coal mining | |
Group's interest | 100% | 100% |
BHP Olympic Dam Corporation Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Copper and uranium mining | |
Group's interest | 100% | 100% |
Compania Minera Cerro Colorado Limitada [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Chile | |
Principal activity | Copper mining | |
Group's interest | 100% | 100% |
Minera Escondida Ltda [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Chile | |
Principal activity | Copper mining | |
Group's interest | 57.50% | 57.50% |
Minera Spence SA [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Chile | |
Principal activity | Copper mining | |
Group's interest | 100% | 100% |
Bhp Iron Ore Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Service company | |
Group's interest | 100% | 100% |
BHP Iron Ore (Jimblebar) Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Iron ore mining | |
Group's interest | 85% | 85% |
BHP (Towage Service) Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Towing services | |
Group's interest | 100% | 100% |
BHP Billiton Freight Singapore Pte Limited [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Singapore | |
Principal activity | Freight services | |
Group's interest | 100% | 100% |
BHP Billiton Marketing AG [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Switzerland | |
Principal activity | Marketing and trading | |
Group's interest | 100% | 100% |
BHP Billiton Marketing Asia Pte Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Singapore | |
Principal activity | Marketing support and other services | |
Group's interest | 100% | 100% |
BHP Canada Inc. [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Canada | |
Principal activity | Potash development | |
Group's interest | 100% | 100% |
BHP Billiton Finance BV [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | The Netherlands | |
Principal activity | Finance | |
Group's interest | 100% | 100% |
BHP Billiton Finance Limited [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Finance | |
Group's interest | 100% | 100% |
BHP Billiton Finance (USA) Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Finance | |
Group's interest | 100% | 100% |
Bhp Nickel West Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Nickel mining, smelting, refining and administrative services | |
Group's interest | 100% | 100% |
BHP Group Operations Pty Ltd [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Administrative services | |
Group's interest | 100% | 100% |
WMC Finance (USA) Limited [member] | ||
Disclosure of significant subsidiaries [line items] | ||
Country of incorporation | Australia | |
Principal activity | Finance | |
Group's interest | 100% | 100% |
Subsidiaries - Summary of Sig_2
Subsidiaries - Summary of Significant Subsidiaries (Parenthetical) (Detail) | 12 Months Ended | ||
May 03, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of significant subsidiaries [line items] | |||
Percentage of investment sold | 80% | ||
BHP Iron Ore (Jimblebar) Pty Ltd [member] | |||
Disclosure of significant subsidiaries [line items] | |||
Effective Group interest | 92.50% | 92.50% | |
Group's interest | 85% | 85% |
Investments Accounted for Usi_3
Investments Accounted for Using the Equity Method - Additional Information (Detail) - BHP Brasil Ltda [member] - Samarco Mineracao S.A. [member] - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of significant investments in associates and joint ventures [line items] | ||
Commitment percentage | 50% | 50% |
Commitments in relation to joint ventures | $ 350 | $ 350 |
Investments Accounted for Usi_4
Investments Accounted for Using the Equity Method - Summary of Ownership Interest in Equity Accounted Investments (Detail) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of significant investments in associates and joint ventures [line items] | ||
Reporting date | --06-30 | |
Samarco Mineracao S.A. [member] | ||
Disclosure of significant investments in associates and joint ventures [line items] | ||
Country of incorporation | Brazil | |
Principal place of business | Brazil | |
Principal activity | Iron ore mining | |
Reporting date | --12-31 | |
Ownership interest | 50% | 50% |
Carbones del Cerrejon Limited Liability Corporation [member] | ||
Disclosure of significant investments in associates and joint ventures [line items] | ||
Country of incorporation | Anguilla | |
Principal place of business | Colombia/Ireland | |
Principal activity | Coal mining in Colombia | |
Reporting date | --12-31 | |
Ownership interest | 33.33% | |
Compania Minera Antamina S.A. [member] | ||
Disclosure of significant investments in associates and joint ventures [line items] | ||
Country of incorporation | Peru | |
Principal place of business | Peru | |
Principal activity | Copper and zinc mining | |
Reporting date | --12-31 | |
Ownership interest | 33.75% | 33.75% |
Investments Accounted for Usi_5
Investments Accounted for Using the Equity Method - Summary of Ownership Interest in Equity Accounted Investments (Parenthetical) (Detail) - Carbonesdel Cerrejon Limited Liability Corporation [member] - USD ($) $ in Millions | 12 Months Ended | |
Jan. 11, 2022 | Jun. 30, 2022 | |
Disclosure of Significant Investments in Associates and Joint Ventures [line items] | ||
Dividends received | $ 238 | |
Proceeds from divestiture of interest in an associate towards final completion adjustment | $ 50 | |
Percentage of investment sold | 33.33% |
Investments Accounted for Usi_6
Investments Accounted for Using the Equity Method - Summary of Movements of Investments Accounted for using the Equity Method (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of significant investments in associates and joint ventures [line items] | ||
At the beginning of the financial year | $ 1,742 | $ 2,585 |
Loss from equity accounted investments, related impairments and expenses | (23) | |
Investment in equity accounted investments | 52 | |
Dividends received from equity accounted investments | (787) | |
Divestment and demerger of equity accounted investments | (240) | |
Other | 676 | |
At the end of the financial year | 1,420 | 1,742 |
Joint ventures [member] | ||
Disclosure of significant investments in associates and joint ventures [line items] | ||
Loss from equity accounted investments, related impairments and expenses | (676) | |
Other | 676 | |
Associates [member] | ||
Disclosure of significant investments in associates and joint ventures [line items] | ||
At the beginning of the financial year | 1,742 | |
Loss from equity accounted investments, related impairments and expenses | 653 | |
Investment in equity accounted investments | 52 | |
Dividends received from equity accounted investments | (787) | |
Divestment and demerger of equity accounted investments | (240) | |
At the end of the financial year | $ 1,420 | $ 1,742 |
Investments Accounted for Usi_7
Investments Accounted for Using the Equity Method - Summary of Movements of Investments Accounted for using the Equity Method (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of significant investments in associates and joint ventures [line items] | |||
Loss from equity accounted investments, related impairments and expenses | $ (19) | $ (915) | $ (508) |
Fair value change on forward exchange derivatives | 29 | (87) | (393) |
Dividends received from investments accounted for using equity method, classified as investing activities | 787 | ||
Discontinued operations [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Loss from equity accounted investments, related impairments and expenses | (4) | (6) | (4) |
Dividends received from investments accounted for using equity method, classified as investing activities | 10 | $ 10 | $ 12 |
Samarco dam failure [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Fair value change on forward exchange derivatives | (81) | ||
Samarco germano dam decommissioning [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Change in estimate | 56 | ||
Exchange translation | 12 | ||
Samarco Germano dam decommissioning | 68 | ||
Joint ventures [member] | Samarco dam failure [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Loss from equity accounted investments, related impairments and expenses | (676) | ||
Samarco dam failure provision | (663) | ||
Change in estimate | (747) | ||
Exchange translation | $ 84 |
Investments Accounted for Usi_8
Investments Accounted for Using the Equity Method - Summary of Financial Information of Significant Equity Accounted Investments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of significant investments in associates and joint ventures [line items] | |||
Carrying amount of investments accounted for using the equity method | $ 1,420 | $ 1,742 | $ 2,585 |
Impairment of the carrying value of the investment | (515) | (2,507) | (482) |
Fair value change on forward exchange derivatives | 29 | (87) | (393) |
Profit/(loss) from equity accounted investments, related impairments and expenses | (19) | (915) | (508) |
Dividends received from equity accounted investments | 787 | ||
Compania Minera Antamina S.A. [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Current assets | 1,275 | 1,499 | |
Non-current assets | 5,293 | 4,885 | |
Current liabilities | (847) | (1,285) | |
Non-current liabilities | (1,851) | (1,062) | |
Net assets/(liabilities) - 100% | 3,870 | 4,037 | |
Net assets/(liabilities) - Group share | 1,306 | 1,362 | |
Carrying amount of investments accounted for using the equity method | 1,306 | 1,362 | |
Revenue - 100% | 5,264 | 4,822 | 2,464 |
Profit/(loss) from Continuing operations - 100% | 2,133 | 1,847 | 629 |
Share of profit/(loss) of equity accounted investments | 720 | 623 | 212 |
Profit/(loss) from equity accounted investments, related impairments and expenses | 720 | 623 | 212 |
Comprehensive income/(loss) - 100% | 2,133 | 1,847 | 629 |
Share of comprehensive income/(loss) - Group share in equity accounted investments | 720 | 623 | 212 |
Dividends received from equity accounted investments | 776 | 714 | 105 |
Carbonesdel Cerrejon Limited Liability Corporation [Member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Revenue - 100% | 844 | 1,091 | |
Profit/(loss) from Continuing operations - 100% | (43) | (182) | |
Share of profit/(loss) of equity accounted investments | (14) | (68) | |
Impairment of the carrying value of the investment | (466) | ||
Profit/(loss) from equity accounted investments, related impairments and expenses | (480) | (68) | |
Comprehensive income/(loss) - 100% | (43) | (182) | |
Share of comprehensive income/(loss) - Group share in equity accounted investments | (480) | (68) | |
Dividends received from equity accounted investments | 13 | 9 | |
Individually immaterial, associates [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Carrying amount of investments accounted for using the equity method | 114 | 380 | |
Profit/(loss) from equity accounted investments, related impairments and expenses | (63) | (68) | (144) |
Share of comprehensive income/(loss) - Group share in equity accounted investments | (63) | (68) | (144) |
Dividends received from equity accounted investments | 11 | 10 | 12 |
Samarco Mineracao S.A. [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Current assets | 499 | 509 | |
Non-current assets | 5,717 | 4,380 | |
Current liabilities | (10,830) | (9,222) | |
Non-current liabilities | (7,873) | (7,627) | |
Net assets/(liabilities) - 100% | (12,487) | (11,960) | |
Net assets/(liabilities) - Group share | (6,244) | (5,980) | |
Adjustments to net assets related to accounting policy adjustments | 268 | 280 | |
Investment in Samarco | 516 | 516 | |
Impairment of the carrying value of the investment in Samarco | (1,041) | (1,041) | |
Additional share of Samarco losses | 5,326 | 4,442 | |
Unrecognised losses | 1,175 | 1,783 | |
Revenue - 100% | 1,670 | 814 | 26 |
Profit/(loss) from Continuing operations - 100% | (528) | (2,202) | (3,617) |
Share of profit/(loss) of equity accounted investments | (276) | (1,076) | (1,918) |
Impairment of the carrying value of the investment | 0 | (111) | (95) |
Additional share of Samarco losses | 290 | 85 | 93 |
Fair value change on forward exchange derivatives | (81) | 136 | |
Unrecognised losses | (609) | (24) | 1,412 |
Profit/(loss) from equity accounted investments, related impairments and expenses | (676) | (990) | (508) |
Comprehensive income/(loss) - 100% | (528) | (2,202) | (3,617) |
Share of comprehensive income/(loss) - Group share in equity accounted investments | (676) | (990) | (508) |
Investments accounted for using equity method [member] | |||
Disclosure of significant investments in associates and joint ventures [line items] | |||
Carrying amount of investments accounted for using the equity method | 1,420 | 1,742 | |
Profit/(loss) from equity accounted investments, related impairments and expenses | (19) | (915) | (508) |
Share of comprehensive income/(loss) - Group share in equity accounted investments | (19) | (915) | (508) |
Dividends received from equity accounted investments | $ 787 | $ 737 | $ 126 |
Investments Accounted for Usi_9
Investments Accounted for Using the Equity Method - Summary of Financial Information of Significant Equity Accounted Investments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2016 | |
Disclosure of significant investments in associates and joint ventures [line items] | ||||
Cash and cash equivalents | $ 17,236 | $ 15,246 | $ 13,426 | |
Investment | 1,420 | 1,742 | 2,585 | |
Net finance costs | (969) | (1,223) | (858) | |
Depreciation and amortisation | 5,683 | 5,084 | 4,667 | |
Interest income | 81 | 67 | 334 | |
Interest expense | 1,050 | 1,290 | 1,192 | |
Income tax (expense)/benefit | (10,737) | (10,616) | (4,197) | |
Samarco Mineracao S.A. [member] | ||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||
Cash and cash equivalents | 106 | 134 | ||
Current financial liabilities (excluding trade and other payables and provisions) | 6,837 | 6,567 | ||
Investment | $ 0 | |||
Share of loss | (655) | |||
Impairment | (525) | |||
Additional share of loss | (5,326) | |||
Loss from funding provided to Samarco | (4,539) | |||
Net finance costs | (787) | |||
Depreciation and amortisation | 205 | 154 | 84 | |
Interest income | 19 | 1 | 16 | |
Interest expense | 628 | 492 | 588 | |
Income tax (expense)/benefit | (7) | 303 | $ 256 | |
Samarco Mineracao S.A. [member] | Working Capital Funding [Member] | ||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||
Additional cumulative impairment losses | $ (516) | |||
Individually immaterial, associates [member] | ||||
Disclosure of significant investments in associates and joint ventures [line items] | ||||
Unrecognised share of profits (losses) | 16 | 40 | ||
Cumulative losses | 217 | 233 | ||
Investment | $ 114 | $ 380 |
Interests in Joint Operations -
Interests in Joint Operations - Summary of Significant Interests in Joint Operations (Detail) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Mt Goldsworthy [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Iron ore mining | |
Group's interest | 85% | 85% |
Mt Newman [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Iron ore mining | |
Group's interest | 85% | 85% |
Yandi [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Iron ore mining | |
Group's interest | 85% | 85% |
Central Queensland Coal Associates [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Coal mining | |
Group's interest | 50% | 50% |
Atlantis [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | US | |
Principal activity | Hydrocarbons production | |
Group's interest | 44% | |
Bass Strait [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Hydrocarbons production | |
Group's interest | 50% | |
Macedon [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Hydrocarbons production | |
Group's interest | 71.43% | |
Mad Dog [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | US | |
Principal activity | Hydrocarbons production | |
Group's interest | 23.90% | |
North West Shelf [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Hydrocarbons production | |
North West Shelf [member] | Bottom of range [member] | ||
Disclosure of significant joint operations [line items] | ||
Group's interest | 12.50% | |
North West Shelf [member] | Top of range [member] | ||
Disclosure of significant joint operations [line items] | ||
Group's interest | 16.67% | |
Pyrenees [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Australia | |
Principal activity | Hydrocarbons production | |
Pyrenees [member] | Bottom of range [member] | ||
Disclosure of significant joint operations [line items] | ||
Group's interest | 40% | |
Pyrenees [member] | Top of range [member] | ||
Disclosure of significant joint operations [line items] | ||
Group's interest | 71.43% | |
ROD Integrated Development [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Algeria | |
Principal activity | Hydrocarbons production | |
Group's interest | 28.85% | |
Shenzi [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | US | |
Principal activity | Hydrocarbons production | |
Group's interest | 72% | |
Trinidad/Tobago [member] | ||
Disclosure of significant joint operations [line items] | ||
Country of operation | Trinidad and Tobago | |
Principal activity | Hydrocarbons production | |
Trinidad/Tobago [member] | Bottom of range [member] | ||
Disclosure of significant joint operations [line items] | ||
Group's interest | 45% | |
Trinidad/Tobago [member] | Top of range [member] | ||
Disclosure of significant joint operations [line items] | ||
Group's interest | 68.46% |
Interests in Joint Operations_2
Interests in Joint Operations - Summary of Assets Held in Joint Operations (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure of significant joint operations [line items] | |||
Current assets | $ 28,664 | $ 26,693 | |
Non-current assets | 66,502 | 82,234 | $ 84,262 |
Total assets | 95,166 | 108,927 | $ 105,733 |
Joint operations [member] | |||
Disclosure of significant joint operations [line items] | |||
Current assets | 1,928 | 2,260 | |
Non-current assets | 26,256 | 38,725 | |
Total assets | $ 28,184 | $ 40,985 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of transactions between related parties [abstract] | ||
Guarantees provided for related party receivables or payables | $ 0 | $ 0 |
Guarantees received for related party receivables or payables | 0 | 0 |
Provision for expected credit losses | 0 | 0 |
Expense for expected credit losses due from related parties | 0 | 0 |
Other related party transactions | $ 0 | $ 0 |
Related Party Transactions - Su
Related Party Transactions - Summary of Transactions with Related Parties (Detail) - Associates [member] - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Purchases of goods/services | $ 1,852,132 | $ 1,564,073 |
Interest income | 398 | 2,241 |
Interest expense | 5 | |
Dividends received | 787,208 | 737,250 |
Net loans (repayments from)/made to related parties | $ (23,554) | $ (12,108) |
Related Party Transactions - _2
Related Party Transactions - Summary of Outstanding Balances with Related Parties (Detail) - Associates [member] - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Trade payables [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amounts owing to related parties | $ 351,607 | $ 316,269 |
Loans [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amounts owing to related parties | 17,097 | |
Amounts owing from related parties | 40,651 | |
Trade receivables [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amounts owing from related parties | $ 6,855 | $ 4 |
Contingent Liabilities - Summar
Contingent Liabilities - Summary of Contingent Liabilities (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities | $ 2,466 | $ 3,147 |
Associates and joint ventures [member] | ||
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities | 1,541 | 1,532 |
Subsidiaries and joint operations [member] | ||
Disclosure of contingent liabilities [line items] | ||
Contingent liabilities | $ 925 | $ 1,615 |
Auditor's Remuneration - Summar
Auditor's Remuneration - Summary of Auditors' Remuneration (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Auditors remuneration [line items] | |||
Total assurance services | $ 20,292 | $ 15,513 | $ 16,276 |
Other services | 0 | 400 | |
Total other services | 0 | 400 | |
Total fees | 20,292 | 15,513 | 16,676 |
Parent [member] | |||
Auditors remuneration [line items] | |||
Total assurance services | 9,816 | 10,642 | 11,196 |
Subsidiaries, joint ventures and associates [member] | |||
Auditors remuneration [line items] | |||
Total assurance services | 605 | 1,234 | 1,262 |
Audit-related assurance services required by legislation to be provided by the auditor [Member] | |||
Auditors remuneration [line items] | |||
Total assurance services | 1,933 | 1,770 | 1,815 |
Other assurance and agreed-upon procedures under legislation or contractual arrangements [Member] | |||
Auditors remuneration [line items] | |||
Total assurance services | $ 7,938 | $ 1,867 | $ 2,003 |
Auditor's Remuneration - Additi
Auditor's Remuneration - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Auditors remuneration [line items] | |||
Tax compliance and advisory services | $ 0 | $ 400 | |
Tax compliance services [member] | |||
Auditors remuneration [line items] | |||
Tax compliance and advisory services | $ 0 | $ 0 | 269 |
Tax Advisory Services [Member] | |||
Auditors remuneration [line items] | |||
Tax compliance and advisory services | $ 131 |