v3.25.2
Investments accounted for using the equity method
 12 Months Ended
Jun. 30, 2025
Text block 1 [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 significant equity accounted investments results are listed in the table below. For a list of the Group’s associates and joint ventures, refer to Exhibit 8.1 – List of Subsidiaries.
Significant associates and joint ventures
  
Country of
incorporation/
principal
place of
business
  
Associate or
joint
venture
  
Principal activity
  
Reporting
date
  
Ownership
interest
  
 
2025

%
     2024
%		  
Compañía Minera Antamina S.A. (Antamina)
   Peru   Associate   Copper and zinc mining   31 December  
 
33.75
 
     33.75  
Samarco Mineração S.A. (Samarco)
  
Brazi
l		   Joint venture   Iron ore mining   31 December  
 
50.00
 
     50.00  
Vicuña Corp (Vicuña)
   Canada / Argentina /Chile   Joint venture   Copper development   31 December  
 
50.00
 
     –  
Voting in relation to relevant activities in Antamina, determined to be the approval of the operating and capital budgets, does not require unanimous consent of all participants to the arrangement, therefore joint control does not exist. Instead, because the Group has the power to participate in the financial and operating policies of the investee, this investment is accounted for as an associate.
Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). BHP Brasil and Vale do not have offtake arrangements with Samarco. Instead, Samarco sells all of its product directly to market. Accordingly, 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.
On the 15 January 2025, BHP Investments Canada Inc. (BHP Canada) and Lundin Mining Corporation (Lundin Mining) completed the acquisition of Filo Corp., a Toronto Stock Exchange listed company. Filo Corp. owns 100% of the Filo del Sol (FDS) copper deposit. Prior to completion, Lundin Mining owned 100% of the Josemaria copper deposit located in the Vicuña district of Argentina and Chile. At completion, BHP Canada acquired a 50% interest in the Josemaria copper deposit from Lundin Mining. BHP Canada and Lundin Mining have formed the Canadian based company, Vicuña Corp. and contributed their respective 50% interests in Filo Corp. and the Josemaria copper deposit. BHP Canada and Lundin Mining each own 50% of Vicuña Corp and share joint control.
I
n management’s judgement, and considering the offtake terms, BHP Canada and Lundin Mining do not have the rights to, or the obligation for, substantially all the output of the arrangement. Accordingly, as the Vicuña entity has the rights to the assets and obligations for the liabilities of this arrangement and not its owners, this investment is accounted for as a joint venture.
 
Key judgements and estimates
Judgements
:
Determining whether joint arrangements structured through a separate vehicle are classified as joint ventures or joint operations can involve significant judgement. The classification depends on an assessment of the venturers’ rights to the assets and obligations for the liabilities of the arrangement in the normal course of business. When making the assessment, management has regard to the legal form of the separate vehicle, the terms of the arrangement and other relevant facts and circumstances. Where venturers have the rights to, and obligations for, substantially all of the output of the arrangement, this is indicative of a joint operation as the venturers have rights to substantially all of the economic benefits of the assets and provide cash flows that are used to settle the liabilities of the arrangement.
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 movement for the year in the Group’s investments accounted for using the equity method is as follows:
 
Year ended 30 June 2025
US$M
   
Investment in
associates
     
Investment in
joint ventures
     
Total equity
accounted
investments
  
At the beginning of the financial year
   
 
1,662
 
   
 
–
 
   
 
1,662
 
Profit/(loss) from equity accounted investments, related impairments and expenses
1
   
 
397
 
   
 
(244
)
   
 
153
 
Investment in equity accounted investments
2
   
 
67
 
   
 
2,355
 
   
 
2,422
 
Dividends received from equity accounted investments
   
 
(375
)
   
 
–
 
   
 
(375
)
Other
1
   
 
–
 
   
 
245
 
   
 
245
 
  
 
 
     
 
 
     
 
 
  
At the end of the financial year
   
 
1,751
 
   
 
2,356
 
   
 
4,107
 
  
 
 
     
 
 
     
 
 
  
 
1
 
Represents financial impacts of Samarco dam failure in the Group’s profit/(loss) from equity accounted investments, related impairments and expenses. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
2
 
Includes total cash payment of US$2.1 billion for the acquisition of Filo Corp and 50% interest in Josemaria copper
deposit
.
The following table summarises the financial information relating to each of the Group’s significant equity accounted investments.
 
   
Associates
    
Joint ventures
         
2025
US$M
  
Antamina
    
Individually
immaterial
(1)
    
Samarco
(2)
    
Vicuña
    
Individually
immaterial
     
Total
  
Current assets
 
 
1,773
 
 
 
 
877
(3)
 
 
 
54
(3)
 
 
  
Non-current
assets
 
 
6,944
 
 
 
 
6,485
 
 
 
4,570
 
 
  
Current liabilities
 
 
(970
) 
 
 
 
(6,180
)
(4)
 
 
 
(61
)
(4)
 
 
  
Non-current
liabilities
 
 
(2,599
) 
 
 
 
(20,404
)
(5)
 
 
 
(3
)
(5)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Net assets/(liabilities) – 100%
 
 
5,148
 
 
 
 
(19,222
) 
 
 
4,560
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Net assets/(liabilities) – Group share
 
 
1,737
 
 
 
 
(9,611
) 
 
 
2,280
 
 
  
Adjustments to net assets related to accounting policy adjustments
 
 
(76
) 
 
 
 
–
 
 
 
76
 
 
  
Investment in Samarco
 
 
–
 
 
 
 
516
(6)
 
 
 
–
 
 
  
Impairment of the carrying value of the investment in Samarco
 
 
–
 
 
 
 
(1,041
)
(7)
 
 
 
–
 
 
  
Recognised additional share of losses, net of capital contributions
 
 
–
 
 
 
 
7,254
 
 
 
–
 
 
  
Unrecognised losses
 
 
–
 
 
 
 
2,882
(8)
 
 
 
–
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Carrying amount of investments accounted for using the equity method
 
 
1,661
 
 
 
90
 
 
 
–
 
 
 
2,356
 
 
 
–
 
  
 
4,107
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Revenue – 100%
 
 
4,627
 
 
 
 
1,598
 
 
 
–
 
 
  
Profit/(loss) – 100%
 
 
1,609
 
 
 
 
(4,032
)
(9)
 
 
 
2
(10)
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Share of profit/(loss) of equity accounted investments
 
 
543
 
 
 
 
(2,016
) 
 
 
1
 
 
  
Adjustments to share of profit/(loss) related to accounting policy adjustments
 
 
(5
) 
 
 
 
–
 
 
 
–
 
 
  
Impairment of the carrying value of the investment in Samarco
 
 
–
 
 
 
 
–
 
 
 
–
 
 
  
Additional share of Samarco losses
 
 
–
 
 
 
 
458
 
 
 
–
 
 
  
Fair value change on forward exchange derivatives
 
 
–
 
 
 
 
414
 
 
 
–
 
 
  
Movement in unrecognised losses
 
 
–
 
 
 
 
899
(8)
 
 
 
–
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Profit/(loss) from equity accounted investments, related impairments and expenses
 
 
538
 
 
 
(141
) 
 
 
(245
) 
 
 
1
 
 
 
–
 
  
 
153
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Comprehensive income – 100%
 
 
1,609
 
 
 
 
(4,032
) 
 
 
2
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Share of comprehensive income/(loss) – Group share in equity accounted investments
 
 
538
 
 
 
(141
) 
 
 
(245
) 
 
 
1
 
 
 
–
 
  
 
153
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
Dividends received from equity accounted investments
 
 
375
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
  
 
375
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
     Associates     Joint ventures         
2024
US$M
    Antamina     Individually
immaterial
(1)
     Samarco
(2)
     Individually
immaterial		      Total  
Current assets
      1,699         564
(3)
 		     
Non-current
assets
      6,325         7,214       
Current liabilities
      (987 )        (3,266 )
(4)
 		     
Non-current
liabilities
      (2,389 )        (23,211 )
(5)
 		     
  
 
 
      
 
 
       
Net assets/(liabilities) – 100%
      4,648         (18,699 )      
  
 
 
      
 
 
       
Net assets/(liabilities) – Group share
      1,569         (9,349 )      
Adjustments to net assets related to accounting policy adjustments
      (71 )        –       
Investment in Samarco
      –         516
(6)
 		     
Impairment of the carrying value of the investment in Samarco
      –         (1,041 )
(7)
 		     
Recognised additional share of losses, net of capital contributions
      –         7,891       
Unrecognised losses
      –         1,983
(8)
 		     
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Carrying amount of investments accounted for using the equity method
      1,498       164       –       –        1,662  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Revenue – 100%
      4,381         1,553       
Profit/(loss) – 100%
      1,353         (6,726 )
(9)
 		     
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of profit/(loss) of equity accounted investments
      457         (3,363 )      
Adjustments to share of profit/(loss) related to accounting policy adjustments
      8         (6 )
(11)
 		     
Impairment of the carrying value of the investment in Samarco
      –         –       
Additional share of Samarco losses
      –         506       
Fair value change on forward exchange derivatives
      –         (199 )      
Movement in unrecognised losses
      –         30
(8)
 		     
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
      465       (89 )      (3,032 )      –        (2,656 ) 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Comprehensive income – 100%
      1,353         (6,726 )      
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of comprehensive (loss)/income – Group share in equity accounted investments
      465       (89 )      (3,032 )      –        (2,656 ) 
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Dividends received from equity accounted investments
      397       –       –       –        397  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
     Associates     Joint ventures         
2023
US$M
    Antamina     Individually
immaterial		     Samarco
(2
)
     Individually
immaterial		      Total  
Revenue – 100%
      4,350         1,554       
Profit/(loss) – 100%
      1,571         (3,018 )
(9
)
 		     
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of profit/(loss) of equity accounted investments
      530         (1,509 )      
Adjustments to share of profit/(loss) related to accounting policy adjustments
      (79 )        23
(11
)
 		     
Impairment of the carrying value of the investment in Samarco
      –         –       
Additional share of Samarco losses
      –         452       
Fair value change on forward exchange derivatives
      –         471         
Movement in unrecognised losses
      –         778
(8
)
 		       
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Profit/(loss) from equity accounted investments, related impairments and expenses
      451       (72 )      215       –        594  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Comprehensive income – 100%
      1,571         (3,018 )   
  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Share of comprehensive income/(loss) – Group share in equity accounted investments
      451       (72 )      215       –        594  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
Dividends received from equity accounted investments
      327       1       –       –        328  
  
 
 
    
 
 
    
 
 
    
 
 
     
 
 
  
 
1
 
The unrecognised share of gain for the period was US$72 million (2024: US$41 million), which decreased the cumulative losses to US$28 million (2024: US$100 million).
 
2
 
Refer to note 4 ‘Significant events – Samarco dam failure’ for further information regarding the financial impact of the Samarco dam failure which occurred in November 2015 on BHP Brasil’s share of Samarco’s losses. The financial information disclosed represents the underlying financial information of Samarco updated to reflect the Group’s best estimate of the costs to resolve all aspects of the Federal Public Prosecution Office claim and Framework Agreement.
 
3
 
Includes cash and cash equivalents of US$419 
million (2024: US
$251
 
million) in Samarco and US$53 million in Vicuña.
 
4
 
Includes current financial liabilities (excluding trade and other payables and provisions) of US$ nil (2024: US$ nil) in Samarco and US$1 million in Vicuña.
 
5
 
Includes non-current financial liabilities (excluding trade and other payables and provisions) of US$4,625 million (2024: US$4,261 million) in Samarco and US$3 million in Vicuña
.
 
6
 
Any working capital funding provided to Samarco is capitalised as part of the Group’s investments in joint ventures and disclosed as an impairment included within the Samarco impairment expense line item.
 
7
 
In the year ended 30 June 2016, BHP Brasil recognised an impairment of US$525 million to impair its investment in Samarco to US$ nil. Subsequently, additional cumulative impairment losses relating to working capital funding of US$516 million have been recognised. Following the Judicial Reorganisation in September 2023, no further working capital funding has been provided.
 
8
 
Share of Samarco’s losses for which BHP Brasil does not have an obligation to fund.
 
9
Includes depreciation and amortisation of US$165 million (2024: US$165 million; 2023: US$144 million), interest income of US$54 million (2024: US$43 million; 2023: US$42 million), interest expense of US$1,686 million (2024: US$807 million; 2023: US$1,384 million)
,
other finance income in relation to the Judicial Reorganisation of US$
 
nil (2024: US$1,756 million; 2023: US$ nil) and income tax (expense)/benefit of US$(623) million (2024: US$999 million; 2023: US$(213) million).
 
1
0
 
Includes depreciation and amortisation of US$1 million, interest income of US$ nil, interest expense of US$ nil and income tax benefit/(expense) of US$ nil.
 
1
1
 
Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable.