v3.25.2
Financial risk management (Tables)
 12 Months Ended
Jun. 30, 2025
Text block 1 [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
   
2025
      2024  
    
US$M
      US$M  
AUD
   
 
(4,181
)
      (3,850 ) 
CLP
   
 
(924
) 
     (150 ) 
CAD
   
 
(361
)
      (543 ) 
EUR
   
 
(89
)
      239  
GBP
   
 
(28
)
      323  
BRL
   
 
337
 
      (29 )
Other
   
 
123
 
      72  
    
 
 
     
 
 
  
Total
   
 
(5,123
)
      (3,938 ) 
  
 
 
    
 
 
  
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
Fair value
hierarchy
Level
1
   
IFRS 9 Classification
   
2025

US$M
      2024
US$M		  
Current cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
13
 
      5  
Current other derivative contracts
3
    2,3    Fair value through profit or loss   
 
275
 
      118  
Current other financial assets
4
       Amortised cost   
 
236
 
      234  
Current other investments
5
    1,2    Fair value through profit or loss   
 
37
 
      24  
Non-current
cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
448
 
      113  
Non-current
other derivative contracts
3
    2,3    Fair value through profit or loss   
 
158
 
      103  
Non-current
other financial assets
6
    3    Fair value through profit or loss   
 
122
 
      195  
Non-current
other financial assets
4,7
       Amortised cost   
 
191
 
      398  
Non-current
investment in shares
    1,3    Fair value through other comprehensive income   
 
64
 
      201  
Non-current
other investments
5
    1,2    Fair value through profit or loss   
 
139
 
      219  
        
 
 
     
 
 
  
Total other financial assets
         
 
1,683
 
      1,610  
Cash and cash equivalents
       Amortised cost   
 
11,894
 
      12,501  
Trade and other receivables
8
       Amortised cost   
 
1,195
 
      1,597  
Provisionally priced trade receivables
    2    Fair value through profit or loss   
 
2,581
 
      3,250  
        
 
 
     
 
 
  
Total financial assets
         
 
17,353
 
      18,958  
        
 
 
     
 
 
  
Non-financial
assets
         
 
91,437
 
      83,404  
        
 
 
     
 
 
  
Total assets
         
 
108,790
 
      102,362  
        
 
 
     
 
 
  
           
Current cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
–
 
      176  
Current other derivative contracts
    2    Fair value through profit or loss   
 
130
 
      241  
Current other financial liabilities
9
       Amortised cost   
 
84
 
      95  
Non-current
cross currency and interest rate swaps
2
    2    Fair value through profit or loss   
 
1,056
 
      1,337  
Non-current
other derivative contracts
    2    Fair value through profit or loss   
 
–
 
      54  
Non-current
other financial liabilities
9
       Amortised cost   
 
308
 
      368  
        
 
 
     
 
 
  
Total other financial liabilities
         
 
1,578
 
      2,271  
Trade and other payables
10
       Amortised cost   
 
6,087
 
      6,049  
Provisionally priced trade payables
    2    Fair value through profit or loss   
 
493
 
      614  
Bank overdrafts and short-term borrowings
11
       Amortised cost   
 
1
 
      3  
Bank loans
11
       Amortised cost   
 
3,731
 
      2,610  
Notes and debentures
11
       Amortised cost   
 
17,653
 
      14,932  
Lease liabilities
12
         
 
2,953
 
      3,116  
Other
11
       Amortised cost   
 
158
 
      57  
        
 
 
     
 
 
  
Total financial liabilities
         
 
32,654
 
      29,652  
        
 
 
     
 
 
  
Non-financial
liabilities
         
 
23,918
 
      23,590  
        
 
 
     
 
 
  
Total liabilities
         
 
56,572
 
      53,242  
        
 
 
     
 
 
  
 
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 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 net other derivative assets of US$37 million related to power purchase contract agreements that are categorised as Level 3 (2024: US$92 million).
 
4
Includes deferred consideration of US$280 million in relation to the divestment of the Blackwater and Daunia mines completed on 2 April 2024 (2024: US$495 million).
 
5
Includes investments held by BHP Foundation which are restricted and not available for general use by the Group of US$176 million (2024: US$243 million) of which other investments (mainly US Treasury Notes) of US$105 million is categorised as Level 1 (2024: US$134 million).
 
6
 
Includes receivables contingent on future realised coal price of US$122 million (2024: US$195 million).
 
7
 
Includes Senior notes of US$147 million (2024: US$137 million) relating to Samarco with a maturity date of 30 June 2031. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
 
8
 
Excludes input taxes of US$477 million (2024: US$492 million) included in other receivables.
 
9
 
Includes the discounted settlement liability in relation to the cancellation of power contracts at the Group’s Escondida operations.
 
10
Excludes input taxes of US$90 million (2024: US$101 million) included in other payables.
 
11
 
All interest bearing liabilities, excluding lease liabilities, are unsecured.
 
12
 
Lease liabilities are measured in accordance with IFRS 16/AASB 16 ‘Leases’.
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
rates and fair value adjustments when included in a fair value hedge.
 
•  
The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at
period-end
rates, fair value movements due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive income, ineffectiveness recognised in the income statement and accruals or prepayments.
 
•  
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
        
2025
US$M
   
Carrying
amount of
hedged
loans,
notes and
debentures
     
De-

designated
hedges
1
     
Foreign
exchange
notional
at spot
rates
     
Interest
rate risk
     
Recognised
in cash flow
hedging
reserve
    
Recognised
in cost of
hedging
reserve
    
Recognised
in the
income
statement
2
    
Accrued
and other
cash flows
    
Total
    
Hedged
value of
loans, notes
and
debentures
3
  
    
A
     
B
     
C
     
D
     
E
    
F
    
G
    
H
    
C to H
    
A + B + C + D
  
USD
   
 
15,120
 
   
 
49
 
      –     
 
249
 
      –       –    
 
(19
) 
  
 
(51
) 
  
 
179
 
  
 
15,418
 
GBP
   
 
1,062
 
   
 
40
 
   
 
251
 
   
 
258
 
   
 
(19
) 
  
 
5
 
  
 
(64
) 
  
 
37
 
  
 
468
 
  
 
1,611
 
EUR
   
 
2,481
 
   
 
97
 
   
 
122
 
   
 
50
 
   
 
41
 
  
 
(11
) 
  
 
(51
) 
  
 
(203
) 
  
 
(52
) 
  
 
2,750
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Total
   
 
18,663
 
   
 
186
 
   
 
373
 
   
 
557
 
   
 
22
 
  
 
(6
) 
  
 
(134
) 
  
 
(217
) 
  
 
595
 
  
 
19,779
 
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
                   Fair value of derivatives         
2024
US$M
    Carrying
amount of
notes and
debentures		      De-
designated
hedges
1
      Foreign
exchange
notional
at spot
rates		      Interest
rate risk		      Recognised
in cash flow
hedging
reserve		      Recognised 
in cost of
hedging
reserve		       Recognised 
in the
income
statement
2
     Accrued
and other
cash flows		      Total       Hedged
value of
notes and
 debentures
3
 		  
     A      B     
C
     
D
     
E
    
F
     
G
    
H
     C to H      A + B + C + D  
USD
      10,928        52        –        446        –       –        –       6       452        11,426  
GBP
      1,595        43        521        204        (13 )      3        (72 )      30       673        2,363  
EUR
      2,409        125        367        134        (27 )      7        2       (213 )      270        3,035  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
  
Total
      14,932        220        888        784        (40 )      10        (70 )      (177 )      1,395        16,824  
  
 
 
     
 
 
     
 
 
     
 
 
     
 
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
  
 
1
 
Includes accumulated fair value adjustments on de-designated hedges which are amortised to the income statement over the period to the hedged item’s maturity.
 
2
 
Predominantly related to ineffectiveness.
 
3
 
Includes US$525 million (2024: US$532 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship.
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 18 ‘Other equity’.
 
2025
US$M
   
Cash flow hedging
reserve
    
Cost of hedging
reserve
    
Total
  
    
Gross
    
Tax
    
Net
    
Gross
    
Tax
     
Net
        
At the beginning of the financial year
   
 
40
 
  
 
(13
)
  
 
27
 
  
 
(10
)
  
 
3
 
   
 
(7
)
  
 
20
 
Add: Change in fair value of hedging instrument recognised in OCI
   
 
330
 
  
 
(99
)
  
 
231
 
  
 
16
 
  
 
(5
)
   
 
11
 
  
 
242
 
Less: Reclassified from reserves to financial expenses – recognised through OCI
   
 
(392
)
  
 
118
 
  
 
(274
)
  
 
–
 
  
 
–
 
   
 
–
 
  
 
(274
)
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
At the end of the financial year
   
 
(22
)
  
 
6
 
  
 
(16
)
  
 
6
 
  
 
(2
)
   
 
4
 
  
 
(12
)
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
2024
US$M
    Cash flow hedging
reserve		     Cost of hedging
reserve		     Total  
     Gross     Tax     Net     Gross     Tax      Net        
At the beginning of the financial year
      15       (5 )      10       (1 )      –        (1 )      9  
Add: Change in fair value of hedging instrument recognised in OCI
      (24 )      7       (17 )      (9 )      3        (6 )      (23 ) 
Less: Reclassified from reserves to financial expenses – recognised through OCI
      49       (15 )      34       –       –        –       34  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
At the end of the financial year
      40       (13 )      27       (10 )      3        (7 )      20  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
     
 
 
    
 
 
  
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
(assets)/

liabilities
        
2025
US$M
   
Bank
loans
    
Notes and
debentures
    
Lease
liabilities
    
Bank
overdraft
and
short-term

borrowings
    
Other
    
Cross
currency
and

interest
rate swaps
    
Total
  
At the beginning of the financial year
   
 
2,610
 
  
 
14,932
 
  
 
3,116
 
  
 
3
 
  
 
57
 
  
 
1,395
 
  
Proceeds from interest bearing liabilities
   
 
1,150
 
  
 
2,979
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
4,129
 
Settlements of debt related instruments
   
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(147
) 
  
 
(147
) 
Repayment of interest bearing liabilities
   
 
(40
) 
  
 
(894
) 
  
 
(712
) 
  
 
–
 
  
 
(29
) 
  
 
–
 
  
 
(1,675
) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
   
 
1,110
 
  
 
2,085
 
  
 
(712
) 
  
 
–
 
  
 
(29
) 
  
 
(147
) 
  
 
2,307
  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other movements:
               
Interest rate impacts
   
 
11
 
  
 
252
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(265
) 
  
Foreign exchange impacts
   
 
7
 
  
 
369
 
  
 
(13
) 
  
 
–
 
  
 
–
 
  
 
(369
) 
  
Lease additions
   
 
–
 
  
 
–
 
  
 
870
 
  
 
–
 
  
 
–
 
  
 
–
 
  
Remeasurement of index-linked freight contracts
   
 
–
 
  
 
–
 
  
 
(297
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
Other interest bearing liabilities/derivative related changes
   
 
(7
) 
  
 
15
 
  
 
(11
) 
  
 
(2
) 
  
 
130
 
  
 
(19
) 
  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
At the end of the financial year
   
 
 3,731
  
  
 
17,653
  
  
 
2,953
  
  
 
 1
  
  
 
 158
  
  
 
595
  
  
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
     Interest bearing liabilities      Derivatives 
(assets)/
liabilities		        
2024
US$M
    Bank
loans		     Notes and
debentures		     Lease
liabilities		     Bank
overdraft
and
short-term

borrowings		     Other     Cross
currency
and
interest rate
swaps		     Total  
At the beginning of the financial year
      7,502       11,819       3,019       5       –       1,572    
Proceeds from interest bearing liabilities
      400       4,691       –       –       –       –       5,091  
Settlements of debt related instruments
      –       –       –       –       –       (321 )      (321 ) 
Repayment of interest bearing liabilities
      (5,319 )      (1,338 )      (656 )      –       (14 )      –       (7,327 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Change from Net financing cash flows
      (4,919 )      3,353       (656 )      –       (14 )      (321 )      (2,557 ) 
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
Other movements:
               
Divestment of subsidiaries and operations
      –       –       (60 )      –       –       –    
Interest rate impacts
      –       (214 )      –       –       –       188    
Foreign exchange impacts
      24       (35 )      (16 )      –       –       35    
Lease additions
      –       –       593       –       –       –    
Remeasurement of index-linked freight contracts
      –       –       230       –       –       –    
Other interest bearing liabilities/derivative related changes
      3       9       6       (2 )      71       (79 )   
  
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
At the end of the financial year
      2,610       14,932       3,116       3       57       1,395