v3.25.2
Provisions (Tables)
 12 Months Ended
Jun. 30, 2025
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 27 ‘Employee benefits, restructuring and post-retirement employee benefits provisions’) and provision related to the Samarco dam failure (refer to note 4 ‘Significant events – Samarco dam failure’).
 
    
2025
      2024  
    
US$M
      US$M  
At the beginning of the financial year
   
 
710
 
      769  
Dividends determined
   
 
6,286
 
      7,712  
Charge/(credit) for the year:
      
Underlying
   
 
185
 
      180  
Discounting
   
 
7
 
      2  
Exchange variations
   
 
103
 
      (42 ) 
Released during the year
   
 
(73
)
      (120 ) 
Utilisation
   
 
(90
)
      (92 ) 
Dividends paid
   
 
(6,403
)
      (7,675 ) 
Transfers and other movements
   
 
(19
)
      (24 ) 
  
 
 
     
 
 
  
At the end of the financial year
   
 
706
 
      710  
  
 
 
     
 
 
  
Comprising:
      
Current
   
 
310
 
      220  
Non-current
   
 
396
 
      490  
  
 
 
     
 
 
  
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 2025 are shown in the tables below and have been treated as an exceptional item.
 
Financial impacts of Samarco dam failure
   
2025
      2024     2023  
    
US$M
      US$M     US$M  
Income statement
        
Expenses excluding net finance costs:
        
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure
1
   
 
 (211
) 
     (139 )      (103 ) 
Profit/(loss) from equity accounted investments, related impairments and expenses
        
Samarco dam failure provision
2
   
 
(659
)
      (2,833 )      (256 ) 
Fair value change on forward exchange derivatives
3
   
 
414
 
      (199 )      471  
  
 
 
     
 
 
    
 
 
  
(Loss)/profit from operations
   
 
(456
)
 
      (3,171 )      112  
Net finance costs
4
   
 
(458
)
      (506 )      (452 ) 
  
 
 
     
 
 
    
 
 
  
Loss before taxation
   
 
(914
)
      (3,677 )      (340 ) 
Income tax (expense)/benefit
5
   
 
–
 
      (85 )      17  
  
 
 
     
 
 
    
 
 
  
Loss after taxation
   
 
(914
)
      (3,762 )      (323 ) 
  
 
 
     
 
 
    
 
 
  
Balance sheet movement
        
Other financial assets/(liabilities)
6
   
 
441
 
      (280 )      337  
Trade and other payables
   
 
29
 
      (4 )      (6 ) 
Tax liabilities
   
 
–
 
      (85 )      17  
Provisions
   
 
656
 
      (2,824 )      (260 ) 
  
 
 
     
 
 
    
 
 
  
Net decrease/(increase) in liabilities
   
 
1,126
 
      (3,193 )      88  
  
 
 
     
 
 
    
 
 
  
 
 
           
2025
             2024           2023  
           
US$M
             US$M           US$M  
Cash flow statement
                
Loss before taxation
             
 
(914
)
         (3,677 )        (340 ) 
Adjustments for:
                
Samarco dam failure provision
2
   
 
659
 
         2,833          256    
Fair value change on forward exchange derivatives
3
   
 
(414
)
         199          (471 )   
(Settlement of)/proceeds from cash management related instruments
   
 
(17
)
         218          134    
Net finance costs
4
   
 
458
 
         506          452    
Changes in assets and liabilities:
                
Trade and other payables
   
 
(29
)
         4          6    
     
 
 
        
 
 
      
 
 
  
Net operating cash flows
      
 
(257
)
         83         37  
     
 
 
        
 
 
      
 
 
  
Net investment and funding of equity accounted investments
7
      
 
(1,773
)
         (640 )        (448 ) 
     
 
 
        
 
 
      
 
 
  
Net investing cash flows
      
 
(1,773
)
         (640 )        (448 ) 
     
 
 
        
 
 
      
 
 
  
Net decrease in cash and cash equivalents
      
 
(2,030
)
         (557 )        (411 ) 
     
 
 
        
 
 
      
 
 
  
 
1
 
Includes legal and advisor costs incurred.
 
2
 
US$540 million (2024: US$3,700 million; 2023: US$(33) million) change in estimate and US$119 million (2024: US$(867) million; 2023: US$289 million) exchange translation.
 
3
 
The Group enters into forward exchange contracts to limit the Brazilian reais exposure on the dam failure provision. While not applying hedge accounting, the fair value changes in the forward exchange instruments are recorded within Profit/(loss) from equity accounted investments, related impairments and expenses in the Income Statement.
 
4
 
Amortisation of discounting of provision.
 
5
 
Includes tax on forward exchange derivatives and other taxes incurred during the period.
 
6
 
Includes forward exchange contracts described in 3 above, and Senior notes issued by Samarco as part of its Judicial Reorganisation in September 2023.
 
7
 
Current period reflects US$(1,773) million utilisation of the Samarco dam failure provision including payments under the Settlement Agreement ratified on 6 November 2024. Comparative periods comprise utilisation of the Samarco dam failure provision (2024: US$(515) million; 2023: US$(448) million) and in FY2024 US$(125) million provided to Samarco following approval of the Judicial Reorganisation.
Summary of Provisions
Provision related to the Samarco dam failure
 
           
2025
            2024  
           
US$M
            US$M  
At the beginning of the financial year
      
 
6,505
 
        3,681  
Movement in provision
      
 
(656
)
        2,824  
Comprising:
           
Utilised
   
 
(1,773
)
         (515 )   
Adjustments charged to the income statement:
           
Change in cost estimate
   
 
540
 
         3,700    
Amortisation of discounting impacting net finance costs
   
 
458
 
         506    
Exchange translation
   
 
119
 
         (867 )   
     
 
 
       
 
 
  
At the end of the financial year
      
 
5,849
 
        6,505  
     
 
 
       
 
 
  
Comprising:
           
Current
      
 
2,958
 
        1,500  
Non-current
      
 
2,891
 
        5,005  
     
 
 
       
 
 
  
At the end of the financial year
      
 
5,849
 
        6,505