BHP (NYSE: BHP) leans on copper, Jansen after profit jump
Rhea-AI Filing Summary
BHP Group Limited filed its annual report for the year ended 30 June 2026, showing higher scale and profitability across its diversified mining portfolio. Revenue was US$58.8 billion, up from US$51.3 billion, with profit after tax of US$13.0 billion versus US$11.1 billion. Profit attributable to shareholders was US$9.8 billion, and underlying attributable profit reached US$13.2 billion. Net operating cash flow rose to US$21.8 billion, while net debt declined to US$8.7 billion, supporting a strong balance sheet.
The Board applied its capital allocation framework, determining dividends of 172 US cents per share for FY2026, distributing US$8.7 billion, and reporting underlying EBITDA of US$32.9 billion with a 26.1% underlying return on capital employed. Copper was emphasized as the key growth engine, contributing more than half of earnings with a 70% EBITDA margin and around 2 million tonnes of production, including 1,261 kt from Escondida and record output at Olympic Dam.
The company advanced major growth projects: Jansen potash (84% complete, first production targeted mid‑CY2027) and multiple copper expansions in Chile, South Australia and joint ventures such as Vicuña and Resolution. BHP also recorded a US$2.3 billion non‑cash impairment tied to higher capital intensity at Jansen and reported a contractor fatality at the Peak Downs mine, underscoring its ongoing safety focus. Sustainability initiatives included 80% renewable electricity for operated assets and progress toward FY2030 emissions targets.
Positive
- Revenue grew to US$58.8 billion from US$51.3 billion, with profit after tax rising to US$13.0 billion, indicating stronger overall financial performance.
- Underlying profitability improved, with underlying EBITDA of US$32.9 billion and underlying attributable profit of US$13.2 billion, driving a 26.1% underlying return on capital employed.
- Shareholder returns increased, with total dividends of 172 US cents per share for FY2026, up from 110 US cents, equating to US$8.7 billion distributed.
- Balance sheet strength improved as net debt fell to US$8.7 billion from US$12.9 billion while funding significant growth projects.
- Copper solidified its role as the main earnings driver, with about 2 Mt copper production, a 70% EBITDA margin, and clear plans for ~5% annual copper-equivalent growth to FY2035.
- The Jansen potash project advanced to 84% completion, positioning BHP for entry into a new, long-life, low-cost commodity segment from mid‑CY2027.
- Economic contribution was substantial, with US$50.8 billion in direct economic contribution globally, including US$6.6 billion to Australian governments and US$5.5 billion to Chile.
Negative
- BHP recognised a US$2.3 billion non‑cash impairment on the Jansen potash project due to higher capital intensity and cost escalation across current and future stages.
- Total Jansen investment estimates increased, with JS1 now at US$8.4 billion and JS2 at ~US$6.9 billion, reflecting inflation, scope changes and lower productivity.
- Western Australia Nickel remains in temporary suspension with potential divestment under review, highlighting ongoing challenges from oversupply in the global nickel market.
- A contractor fatality at the Peak Downs mine in July 2026 underscored ongoing safety risks despite multi‑year improvements in high potential injury frequency.
Filing Explained
Jansen’s capital estimates increased to US$8.4 billion for Stage 1 and US$6.9 billion for Stage 2, with Stage 2 only 16 percent complete.
BHP Group Limited reports that Jansen Stage 1 was
These are project investment estimates, not a statement that the full amounts have already been spent. Stage 2 was only
The filing says Stage 1 first production remains on track for mid-CY2027. Future Jansen disclosures should be read against those dates and the updated investment estimates, particularly for completion of Stage 1 and progress toward Stage 2.
Key Figures
Key Terms
Underlying EBITDA financial
Capital Allocation Framework financial
non-IFRS financial information financial
high potential injury frequency other
copper equivalent (CuEq) financial
non-operated joint venture financial
FAQ
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AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
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REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Date of event requiring this shell company report _________
Commission File No.:
(ABN 49 004 028 077)
(Exact name of Registrant as specified in its charter)
N/A
(Translation of Registrant’s name into English)
VICTORIA,
(Jurisdiction of incorporation or organization)
(Address of principal executive offices)
BHP GROUP LIMITED
TELEPHONE AUSTRALIA 1300 55 47 57
TELEPHONE INTERNATIONAL +
FACSIMILE +
(Name, telephone, e-mail and/or facsimile number and address of company contact person)
Securities registered or to be registered pursuant to Section 12(b) of the Act.
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* Evidenced by American Depositary Receipts. Each American Depositary Receipt represents two ordinary shares of BHP Group Limited.
** Not for trading, but only in connection with the listing of the American Depositary Shares.
Securities registered or to be registered pursuant to Section 12(g) of the Act.
None
(Title of Class)
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.
None
(Title of Class)
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report.
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BHP Group Limited |
Ordinary Shares: |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒
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If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. ☐ Yes ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Emerging growth company |
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐
† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
U.S. GAAP ☐ |
Other ☐ |
If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.☐ Item 17 ☐ Item 18
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No
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Company details
BHP Group Limited’s registered office and global headquarters are at 171 Collins Street, Melbourne, Victoria 3000, Australia.
‘BHP’, the ‘Company’, the ‘Group’, ‘BHP Group’, ‘our business’, ‘organisation’, ‘we’, ‘us’, ‘our’ and ‘ourselves’ refer to BHP Group Limited, and except where the context otherwise requires, our subsidiaries. Refer to Financial Statements note 28 ‘Subsidiaries’ for a list of our significant subsidiaries and to Exhibit 8.1 – List of Subsidiaries for a list of our subsidiaries. Those terms do not include non-operated assets.
This Annual Report covers functions and assets (including those under exploration, projects in development or execution phases, sites and operations that are closed or in the closure phase) that have been wholly owned and operated by BHP or that have been owned as a joint venture1 operated by BHP (referred to in this Report as ‘operated assets’ or ‘operations’) from 1 July 2025 to 30 June 2026 unless otherwise stated. Certain sections of this Report present data for comparative periods, which in relation to the Daunia and Blackwater mines (divested during FY2024) is shown up to completion on 2 April 2024, unless stated otherwise.
BHP also holds interests in assets that are owned as a joint venture but not operated by BHP (referred to in this Report as ‘non-operated joint ventures’ or ‘non-operated assets’). Notwithstanding that this Report may include production, financial and other information from non-operated assets, non-operated assets are not included in the BHP Group and, as a result, statements regarding our operations, assets and values apply only to our operated assets unless stated otherwise.
BHP Group Limited has a primary listing on the Australian Securities Exchange. BHP holds an international secondary listing on the London Stock Exchange, a secondary listing on the Johannesburg Stock Exchange and an ADR program listed on the New York Stock Exchange.
Introduction
This document is our annual report on Form 20-F for the year ended 30 June 2026 (this “Annual Report”). Reference is made to our Australian Annual Report for the year ended 30 June 2026, which has been furnished to the U.S. Securities and Exchange Commission (the “SEC”) on a Report on Form 6-K on 18 August 2026, which includes information that has been omitted from this Form 20-F. Only information that is included in, or expressly incorporated by reference into, this Form 20-F shall be deemed to form a part of this Annual Report.
The SEC maintains an Internet website that contains reports and other information regarding issuers that file electronically with the SEC. Our filings with the SEC are available to the public through the SEC’s website at https://www.sec.gov.
Materiality, as used in the context of climate and sustainability-related disclosures may differ from the materiality standards applied by other reporting regimes, including as defined for SEC reporting purposes. Any issues identified as material for purposes of sustainability in this document are therefore not necessarily material for SEC reporting purposes.
All references to websites in this Annual Report are intended to be inactive textual references for information only and any information contained in or accessible through any such website does not form a part of this Annual Report.
Forward-looking statements
This Annual Report contains forward-looking statements, which involve risks and uncertainties. Forward-looking statements include all statements, other than statements of historical or present facts, including: statements regarding trends in commodity prices and currency exchange rates; demand for commodities; global market conditions; reserves and resources estimates; recoveries, mine plans, processing performance and other technical assumptions; development and production forecasts; guidance; expectations, plans, strategies and objectives of management; climate scenarios; sustainability, decarbonisation, social value and other targets, goals, pathways and related assumptions; approval of projects and consummation of transactions; closure, divestment, acquisition or integration of certain assets, ventures, operations or facilities (including associated costs or benefits); commodity streaming, offtake, funding or similar arrangements (including associated costs or benefits); anticipated production or construction commencement dates; capital costs and scheduling, ramp-up and project execution; operating costs and availability of materials and skilled employees; anticipated productive lives of projects, mines and facilities; the availability, implementation and adoption of new technologies, including artificial intelligence; provisions and contingent liabilities; and tax, legal and other regulatory developments.
Forward-looking statements may be identified by the use of terminology, including, but not limited to, ‘aim’, ‘ambition’, ‘anticipate’, ‘aspiration’, ‘believe’, ‘commit’, ‘continue’, ‘could’, ‘desire’, ‘ensure’, ‘estimate’, ‘expect’, ‘forecast’, ‘goal’, ‘guidance’, ‘intend’, ‘likely’, ‘may’, ‘milestone’, ‘must’, ‘need’, ‘objective’, ‘outlook’, ‘pathways’, ‘plan’, ‘project’, ‘schedule’, ‘seek’, ‘should’, ‘strategy’, ‘target’, ‘trend’, ‘will’, ‘would’, or similar words. These statements discuss future expectations or performance, or provide other forward-looking information.
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Examples of forward-looking statements contained in this Report include, without limitation, statements describing (i) our strategy, Our Values and how we define our success; (ii) our expectations regarding future demand for certain commodities, in particular copper, iron ore, steelmaking coal, potash and nickel and our intentions, commitments or expectations with respect to our supply of certain commodities, including copper, iron ore, steelmaking coal, potash, nickel, uranium, silver and gold; (iii) our future exploration and partnership plans and perceived benefits and opportunities, including our focus to grow our copper and potash assets; (iv) our business outlook, including our outlook for long-term economic growth and other macroeconomic and industry trends; (v) our projected and expected production and performance levels and development projects; (vi) our expectations regarding our investments and strategic transactions, including in potential growth options and technology and innovation, and perceived benefits and opportunities; (vii) our reserves and resources estimates; (viii) our plans for our major projects and related budget and capital allocations; (ix) our expectations, commitments and objectives with respect to sustainability, decarbonisation, natural resource management, climate change and portfolio resilience and timelines and plans to seek to achieve or implement such objectives, including our approach to equitable change and transitions, our Climate Transition Action Plan, climate change adaptation strategy and goals, targets, pathways and strategies to seek to reduce or support the reduction of greenhouse gas emissions (GHG), and related perceived costs, benefits and opportunities for BHP; (x) the assumptions, beliefs and conclusions in our climate change-related statements and strategies, for example, in respect of future temperatures, energy consumption and greenhouse gas emissions, and climate-related impacts; (xi) our commitment to social value and our 2030 goals; (xii) our commitments to improve or maintain safe tailings storage management; and (xiii) our social value, sustainability reporting, inclusion and diversity, Indigenous peoples and communities, water, health and safety commitments, goals, targets, aspirations and outcomes.
Forward-looking statements are based on management’s expectations and reflect judgements, assumptions, estimates and other information available, as at the date of this Report. These statements do not represent guarantees or predictions of future financial or operational performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and which may cause actual results to differ materially from those expressed in the statements contained in this Report. Investors are strongly cautioned that forward-looking statements are subject to significant uncertainties and may not prove to be correct.
For example, our future revenues from our assets, projects or mines described in this Report will be based, in part, on the market price of the commodities produced, which may vary significantly from current levels or those reflected in our reserves and resources estimates. These variations, if materially adverse, may affect the timing or the feasibility of the development of a particular project, the expansion of certain facilities or mines, or the continuation of existing assets.
Other factors that may affect our future operations and performance, including the actual construction or production commencement dates, revenues, costs or production output and anticipated lives of assets, mines or facilities include: (i) our ability to profitably produce and deliver the products extracted to applicable markets; (ii) the development and use of new technologies and related risks; (iii) the impact of economic and geopolitical factors, including foreign currency exchange rates on the market prices of the commodities we produce and competition in the markets in which we operate; (iv) activities of government authorities in or impacting the countries where we sell our products and in the countries where we are exploring or developing projects, facilities or mines, including increases in taxes and royalties or implementation or expansion of trade or export restrictions, sanctions, tariffs or export controls; (v) changes in environmental and other regulations; (vi) political or geopolitical uncertainty and conflicts; (vii) labour unrest; (viii) weather, climate variability or other manifestations of climate change; (ix) logistics, transport and supply chain constraints or disruptions; (x) legal and regulatory proceedings and stakeholder engagement; and (xi) other factors identified in the risk factors set out in OFR 6.
This Report also discusses scenario analysis. There are limitations with respect to scenario analysis, including any climate-related scenario analysis, and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate, and may not reflect BHP’s own expectations. Scenarios may be impacted by additional factors to the assumptions disclosed.
Except as required by applicable regulations or by law, BHP does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future events.
Past performance cannot be relied on as a guide to future performance.
Emissions and energy consumption data
Due to the inherent uncertainty and limitations in measuring GHG emissions and operational energy consumption under the calculation methodologies used in the preparation of such data, all GHG emissions and operational energy consumption data or references to GHG emissions and operational energy consumption volumes (including ratios or percentages) in this Report are estimates. There may also be differences in the manner that third parties calculate or report GHG emissions or operational energy consumption data compared to BHP, which means third-party data may not be comparable to our data. Our methodologies for measuring or quantifying GHG emissions and operational energy consumption may also evolve as market practices continue to develop and data quality and quantity continue to improve.
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Information prepared by third parties
This Report contains market, industry and statistical information and estimates that are based on reports and other publications from industry analysts, market research firms and other independent sources, as well as management’s own good faith estimates and analyses. We believe the sources of this information to be reputable, but have not independently verified the data sources, methodologies or assumptions. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances reflected in this information.
Footnote
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Form 20-F Cross Reference Table
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Report section reference |
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Identity of Directors, Senior Management and Advisors |
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Offer Statistics and Expected Timetable |
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Key Information |
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[Reserved] |
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Capitalization and indebtedness |
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Reasons for the offer and use of proceeds |
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Risk factors |
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Operating and Financial Review 6.1 |
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Information on the Company |
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History and development of the company |
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Cover page, Company details, Chair’s review, Chief Executive Officer’s review, Operating and Financial Review 2 to 5, 7, Additional information 1, 4 to 9.4 |
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Business overview |
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Operating and Financial Review 2 to 5, 7, Additional information 1, 4 to 8, 9.9 and Note 1 to the Financial Statements |
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Organizational structure |
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Additional information 9.3 and Note 28 to the Financial Statements, Exhibit 8.1 |
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Property, plants and equipment |
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Operating and Financial Review 4, 5, 7, 9, Additional information 1, 4, 5 and Notes 11, 15 and 22 to the Financial Statements |
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Unresolved Staff Comments |
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None |
5. |
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Operating and Financial Review and Prospects |
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Operating results |
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Operating and Financial Review 4, 5, 7 and 8, Additional information 2 and 4 and Note 1 to the Financial Statements |
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Liquidity and capital resources |
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Operating and Financial Review 5, Financial Statements 1.4, Notes 11, 21 to 24 to the Financial Statements |
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Research and development, patents and licenses, etc. |
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Operating and Financial Review 3 to 4, Additional information 5, Notes 11 and 15 to the Financial Statements and Directors' Report 10 |
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Trend information |
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Chair’s review, Chief Executive Officer’s review, Operating and Financial Review 2 to 5, 7, Additional information 2 to 7 |
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Critical Accounting Estimates |
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IFRS is applied in the Financial Statements as issued by the IASB |
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Directors, Senior Management and Employees |
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Directors and senior management |
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Corporate Governance Statement 4.1, 6.1, Directors’ Report 2 |
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Compensation |
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Remuneration Report |
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Board practices |
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Corporate Governance Statement 4.1, 4.7, 5.2, 5.4, Remuneration Report |
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Employees |
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Operating and Financial Review 9.4, Additional information 7 |
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Share ownership |
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Remuneration Report, Directors’ Report 3, 4 and Notes 17, 18 and 26 to the Financial Statements |
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Erroneously Awarded Compensation |
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Major Shareholders and Related Party Transactions |
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Major shareholders |
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Additional information 9.5 |
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Remuneration Report and Note 31 to the Financial Statements |
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Interests of experts and counsel |
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Financial Information |
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Consolidated Statements and Other Financial Information |
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Additional information 8, 9.6, Financial Statements beginning on page F-1 in this Annual Report and Financial Statements 1A |
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Note 33 to the Financial Statements |
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The Offer and Listing |
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Markets |
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Share capital |
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Additional information 8 (regarding the Settlement Agreement) |
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Exchange controls |
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Taxation |
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Subsidiary information |
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Note 28 to the Financial Statements and Exhibit 8.1 |
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Annual Report to Security Holders |
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See Form 6-K, furnished on 18 August 2026 |
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Quantitative and Qualitative Disclosures About Market Risk |
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Note 24 to the Financial Statements |
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Description of Securities Other than Equity Securities |
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Debt Securities |
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Defaults, Dividend Arrearages and Delinquencies |
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Material Modifications to the Rights of Security Holders and Use of Proceeds |
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Controls and Procedures |
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Corporate Governance Statement 9.2 and Financial Statements 1A |
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Audit committee financial expert |
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Corporate Governance Statement 5.2 |
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Code of Ethics |
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Corporate Governance Statement 8 |
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Principal Accountant Fees and Services |
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Corporate Governance Statement 9.2 and Note 34 to the Financial Statements |
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Exemptions from the Listing Standards for Audit Committees |
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Purchases of Equity Securities by the Issuer and Affiliated Purchasers |
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Directors’ Report 4 |
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Change in Registrant’s Certifying Accountant |
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Corporate Governance |
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Corporate Governance Statement |
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Mine Safety Disclosure |
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Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
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Not applicable |
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Insider Trading Policies |
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Corporate Governance Statement 10, Exhibit 11.1 |
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Cybersecurity |
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Operating and Financial Review 6, Additional information 9.8 |
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Financial Statements |
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Financial Statements begin on page F-1 in this Annual Report |
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Why BHP |
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Strong growth outlook |
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Our assets |
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Copper, |
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Iron Ore. |
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Coal. |
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Nickel |
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Potash. |
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Financial review |
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Group overview |
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Key performance indicators |
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5.3 |
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Financial results |
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Debt and sources of liquidity |
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6. |
|
Risk Factors |
33 |
||
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6.1 |
|
Risk Factors |
33 |
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6.2 |
|
Management of risks |
40 |
|
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|
7. |
|
Performance by commodity |
44 |
||
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7.1 |
|
Copper. |
44 |
|
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7.2 |
|
Iron Ore |
46 |
|
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7.3 |
|
Coal |
47 |
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7.4 |
|
Other assets |
49 |
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7.5 |
|
Impact of changes to commodity prices |
50 |
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8. |
|
Non-IFRS financial information |
51 |
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8.1 |
|
Definition and calculation of non-IFRS financial information |
60 |
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8.2 |
|
Definition and calculation of principal factors |
63 |
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9. |
|
Sustainability |
64 |
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9.1 |
|
Our sustainability approach |
64 |
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9.2 |
|
Material sustainability topics |
64 |
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9.3 |
|
2030 goals and social value scorecard |
66 |
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9.4 |
|
People |
69 |
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9.5 |
|
Health |
71 |
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9.6 |
|
Ethics and business conduct |
73 |
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9.7 |
|
Community |
75 |
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9.8 |
|
Indigenous peoples |
76 |
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vi
Table of Contents
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9.9 |
|
Nature and environmental performance |
77 |
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9.10 |
|
Climate change. |
81 |
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Sustainability Report |
83 |
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1. |
|
Introduction |
85 |
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3. |
|
Strategy for managing climate-related risks and opportunities |
86 |
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3.1 |
|
How we resource our response to climate-related risks and opportunities |
86 |
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3.2 |
|
Climate-related risks and opportunities |
86 |
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4. |
|
Risk management |
96 |
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4.1 |
|
Approach to risk management |
96 |
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5. |
|
Metrics and targets |
97 |
||
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5.2 |
|
Climate-related targets |
97 |
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6. |
|
Governance |
98 |
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6.1 |
|
Board oversight |
98 |
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6.2 |
|
Board committees |
99 |
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6.3 |
|
Management. |
99 |
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|
7 |
|
Basis of preparation, interpretation and GHG emissions calculation methodology |
100 |
||
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7.3 |
|
Forward-looking statements |
100 |
|
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7.4 |
|
Use and interpretation of terms, defined terms and abbreviations |
100 |
|
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7.5 |
|
Application of reliefs |
101 |
|
|
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|
|
|
Independent auditor’s report to the members of BHP Group Limited |
102 |
||||
|
|
||||
Corporate Governance Statement |
103 |
||||
|
|
||||
1. |
|
Corporate governance at BHP |
104 |
||
|
|
|
|
||
2. |
|
FY2026 corporate governance highlights |
104 |
||
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|
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|
||
3. |
|
BHP’s governance structure |
105 |
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|
||
4. |
|
Board composition and succession |
108 |
||
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|
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4.1 |
|
Board of Directors and Company Secretary |
108 |
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4.2 |
|
Director independence |
113 |
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4.3 |
|
Board appointments and succession planning |
113 |
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4.4 |
|
Director induction, training and development |
114 |
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4.5 |
|
Director skills, experience and attributes |
114 |
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4.6 |
|
Diversity |
117 |
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4.7 |
|
Board evaluation |
118 |
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5. |
|
Board Committees |
119 |
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|
|
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|
|
5.1 |
|
Nomination and Governance Committee |
119 |
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|
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|
5.2 |
|
Risk and Audit Committee |
120 |
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5.3 |
|
Sustainability Committee |
120 |
|
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|
5.4 |
|
People and Remuneration Committee |
120 |
|
|
|
|
|
|
6. |
|
Management |
121 |
||
|
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|
|
6.1 |
|
Executive Leadership Team |
121 |
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|
|
|
|
|
vii
Table of Contents
|
|
6.2 |
|
Senior management succession |
122 |
|
|
|
|
|
|
|
|
6.3 |
|
Performance evaluation of executives |
122 |
|
|
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|
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|
7. |
|
Shareholders and reporting |
123 |
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|
|
|
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||
|
|
7.1 |
|
Shareholder and stakeholder engagement |
123 |
|
|
|
|
|
|
|
|
7.2 |
|
Market disclosure |
125 |
|
|
|
|
|
|
8. |
|
Culture and conduct |
125 |
||
|
|
|
|
||
9. |
|
Risk management and assurance |
126 |
||
|
|
|
|
||
|
|
9.1 |
|
Risk management governance structure |
126 |
|
|
|
|
|
|
|
|
9.2 |
|
External audit and financial reporting |
127 |
|
|
|
|
|
|
10. |
|
US requirements |
129 |
||
|
|
|
|
||
Directors' Report |
130 |
||||
|
|
||||
1. |
|
Review of operations, principal activities and state of affairs |
131 |
||
|
|
|
|
||
2. |
|
Directors |
131 |
||
|
|
|
|
||
3. |
|
Share interests |
132 |
||
|
|
|
|
||
4. |
|
Share capital and buy-back programs |
133 |
||
|
|
|
|
||
5. |
|
Group Company Secretary |
133 |
||
|
|
|
|
||
6. |
|
Indemnities and insurance |
133 |
||
|
|
|
|
||
7. |
|
Dividends, |
133 |
||
|
|
|
|
||
8. |
|
Auditors |
134 |
||
|
|
|
|
||
9. |
|
Non-audit services |
134 |
||
|
|
|
|
||
10. |
|
Exploration, research and development |
134 |
||
|
|
|
|
||
11. |
|
ASIC Instrument 2016/191 |
134 |
||
|
|
|
|
||
12. |
|
Proceedings on behalf of BHP Group Limited |
134 |
||
|
|
|
|
||
13. |
|
Performance in relation to environmental regulation |
134 |
||
|
|
|
|
||
14. |
|
Additional information. |
134 |
||
|
|
|
|
||
Remuneration Report |
137 |
||||
|
|
||||
Financial Statements |
163 |
||||
|
|
||||
Additional information |
164 |
||||
|
|
||||
1. |
|
Information on mining operations |
165 |
||
|
|
|
|
||
2. |
|
Financial information summary |
184 |
||
|
|
|
|
||
3. |
|
Financial information by commodity |
186 |
||
|
|
|
|
||
4. |
|
Production |
190 |
||
|
|
|
|
||
5. |
|
Major projects |
193 |
||
|
|
|
|
||
6. |
|
Mineral resources and mineral reserves |
194 |
||
|
|
|
|
||
|
|
6.1 |
|
Copper |
198 |
|
|
|
|
|
|
|
|
6.2 |
|
Escondida individual property disclosure |
200 |
|
|
|
|
|
|
|
|
6.3 |
|
Iron ore |
204 |
|
|
|
|
|
|
|
|
6.4 |
|
WAIO individual property disclosure |
206 |
|
|
|
|
|
|
|
|
6.5 |
|
Steelmaking coal |
211 |
|
|
|
|
|
|
viii
Table of Contents
|
|
6.6 |
|
Energy coal |
212 |
|
|
|
|
|
|
|
|
6.7 |
|
Potash |
213 |
|
|
|
|
|
|
|
|
6.8 |
|
Jansen individual property disclosure |
215 |
|
|
|
|
|
|
7. |
|
People – performance data |
219 |
||
|
|
|
|
|
|
8. |
|
Legal proceedings |
221 |
||
|
|
|
|
|
|
9. |
|
Shareholder information |
227 |
||
|
|
|
|
|
|
|
|
9.1 |
|
History and development |
227 |
|
|
|
|
|
|
|
|
9.2 |
|
Markets |
227 |
|
|
|
|
|
|
|
|
9.3 |
|
Organisational structure |
227 |
|
|
|
|
|
|
|
|
9.4 |
|
Constitution |
227 |
|
|
|
|
|
|
|
|
9.5 |
|
Share ownership |
231 |
|
|
|
|
|
|
|
|
9.6 |
|
Dividends. |
232 |
|
|
|
|
|
|
|
|
9.7 |
|
American Depositary Receipts fees and charges |
233 |
|
|
|
|
|
|
|
|
9.8 |
|
Supplemental cybersecurity disclosures for US reporting |
234 |
|
|
|
|
|
|
|
|
9.9 |
|
Government regulations |
235 |
|
|
|
|
|
|
|
|
9.10 |
|
Taxation |
237 |
|
|
|
|
|
|
10. |
|
Glossary |
242 |
||
|
|
|
|
||
|
|
10.1 |
|
Mining-related terms |
242 |
|
|
|
|
|
|
|
|
10.2 |
|
Terms used in reserves and resources |
247 |
|
|
|
|
|
|
|
|
10.3 |
|
Units of measure |
248 |
|
|
|
|
|
|
|
|
10.4 |
|
Other terms |
249 |
|
|
|
|
|
|
Exhibits |
263 |
||||
ix
Table of Contents
Footnote
x
Table of Contents
Chair's review
Dear Shareholders,
I am pleased to provide the BHP Annual Report 2026. We delivered strong operational and financial results in FY2026 and continued to position your business to create value for you into the future.
Our achievements were overshadowed by the recent loss of our contractor colleague at BHP Mitsubishi Alliance’s (BMA’s) Peak Downs mine in Queensland on 24 July 2026. Our thoughts remain with their family and loved ones. We are determined to eliminate fatalities and serious injuries at BHP.
A Tier 1 portfolio for today and the future
BHP has large, long‑life and low-cost world‑class assets in attractive commodities. As our performance in FY2026 has shown, we operate them exceptionally well. This is a great position to be in – and a great position to grow from.
We know you have made an active choice to invest in our company. We steward that investment carefully. Just as you rightly consider what the best use of your money is, and where it will generate the most value for you, so does your Board.
BHP has a compelling pipeline of growth options ahead of us in potash, copper and iron ore and a rigorous Capital Allocation Framework (CAF) to guide our investment decisions. Under that Framework, each growth option competes with every dollar we invest. That drives disciplined investment decisions, and ensures every project is focused on generating returns.
The CAF also helps manage our balance sheet and provides for a minimum dividend payout ratio of 50 per cent of underlying attributable profit at every reporting period. Your Board determined dividends totalling 172 US cents a share for FY2026, an increase of 62 US cents on FY2025. This represents a total distribution to shareholders of US$8.7 billion.
CEO transition
The year saw the retirement of CEO Mike Henry and the appointment of Brandon Craig as your new CEO, from 1 July 2026.
Mike’s six‑and‑a‑half‑year tenure leading BHP will be remembered as among our brightest. Thanks to his leadership, our operational performance has been second to none among our peers. Mike led with discipline, dedication and integrity, repositioning our portfolio towards future‑facing commodities and embedding operational excellence and the BHP Operating System (BOS) into the way we work. We wish Mike every success in the future and thank him for making BHP a better company.
Brandon was appointed CEO by your Board after a thorough selection process. He brings deep experience to the role having worked across different countries and all our commodities during his 27 years at BHP, including as President Americas and Asset President of Western Australia Iron Ore (WAIO). Brandon has a clear vision on how we can accelerate performance and drive programmatic growth and I am excited for the next era under his leadership.
Board renewal
Our structured approach to Board renewal continues. On 1 June 2026, we welcomed Mark Vassella as a Non‑executive Director. Mark has extensive experience in the global steel industry and brings a strong focus on global resource development, values‑based leadership and relationships with people and community.
Our economic contribution
We are proud to make a substantial contribution to the economies in the countries, regions and communities where we operate. This direct economic contribution totalled US$50.8 billion globally in FY2026 – an increase of around US$4 billion from the prior financial year.
BHP remains one of the largest corporate taxpayers in Australia and Chile. In Australia, taxes, royalties and other payments to governments totalled US$6.6 billion (approximately A$9.7 billion). This is roughly equivalent to the Australian Government's 2026-27 transport infrastructure package, which will help fund major road, rail and freight infrastructure projects across Australia.1
In Chile, our increased copper output and higher global prices lifted our tax, royalty and other payments to US$5.5 billion – an increase of around 71 per cent from the prior financial year. This equates to about one dollar in every 17 in Chile’s most recent national budget.2
1
Table of Contents
Social value and sustainability
A key part of our competitive advantage is our focus on working with others to create a lasting contribution to society.
We increased our spend with Indigenous suppliers, reaching US$1 billion for the year, a three‑fold increase in three years. Our approach is to develop multi‑year partnerships that help these businesses build capability and grow.
Your Board and management are determined to continue the pursuit of our climate ambitions, and we are on track to meet our FY2030 operational greenhouse gas emissions reduction target. Renewable sources provided 80 per cent of electricity at our operated assets globally in FY2026,3 with more to come in the years ahead.
Beyond renewables, we are working to establish a credible pathway to safely and productively displace diesel at scale at the sites where we operate. We are running proof‑of‑concept trials for battery‑electric haul trucks in the Pilbara right now, with a battery‑electric locomotives trial also commenced. This is important work that will not only support technology development, but also build the knowledge and capability required to operate battery‑electric equipment in the future.
We expect our electricity demand to increase significantly as diesel‑fuelled mining and rail equipment is electrified. In support of this, we have begun the critical work to develop the future power solutions we will need when the equipment is ready to roll out.
Importantly, we continue to work closely with steelmaking customers on initiatives to support greenhouse gas emissions reductions in their operations as well.
Entering FY2027 with confidence
As we enter FY2027, the broader economic picture remains resilient despite recent commodity market volatility. We continue to see strength in the US and China, even as the global economy adjusts to evolving trade dynamics.
We remain confident in the demand for our core commodities and the strength of our growth program, supported by the long‑term trends shaping the world, including industrialisation, urbanisation, digitalisation, the energy transition, population growth and food security.
BHP is in great shape and well placed to seize the opportunities ahead. I am confident we can continue to create value for you for many years to come.
Thank you for your continued support.
/s/ Ross McEwan
Ross McEwan
Chair
Footnotes
2
Table of Contents
Chief Executive Officer’s review
Dear Shareholders,
I am pleased to write to you for the first time as your Chief Executive Officer. I take on this role with deep respect for BHP’s history, confidence in our people and portfolio, and a clear ambition to make our company safer, simpler, and higher performing, while growing value with discipline.
Safety is my first priority. The recent loss of one of our colleagues is deeply felt across BHP and the broader industry. We will act with urgency, learn from what happened and apply the lessons across the company. No result is more important than everyone going home safely at the end of each day.
FY2026 demonstrated the strength of our assets and our operating momentum. My focus is to build on that foundation by accelerating performance, delivering disciplined growth, and strengthening the capabilities and relationships that sustain long-term value creation.
Operational excellence driving strong performance
Our FY2026 performance was underpinned by the growing maturity of the BHP Operating System, disciplined cost control and reliable execution across our diversified Tier 1 portfolio. We delivered the high-quality materials our customers need and achieved several production records.
Copper contributed more than half of our earnings for the first time, at a strong 70 per cent EBITDA margin, and we remained the world’s largest copper producer. Copper South Australia’s Olympic Dam achieved a 20-year copper production record, while record material moved and record concentrator throughput at Escondida helped offset the impact of an anticipated decline in ore grade.
At WAIO, strong operational performance across the supply chain resulted in record annual iron ore production. WAIO maintained its position as the world’s lowest cost major iron ore producer, now for the seventh year, with a greater than US$10 per tonne cost advantage over its nearest Pilbara competitor.
In coal, BMA’s open-cut steelmaking coal operations increased production and achieved their highest stripping volumes in five years. New South Wales Energy Coal (NSWEC) also performed well – exceeding its production guidance and lifting earnings.
Cost control was a hallmark across all our operated assets, with every major asset achieving unit cost guidance. This was despite external cost pressures from inflation, higher diesel prices and global supply disruptions.
Future-facing commodity growth
We made important progress on our pipeline of copper and potash growth projects.
Earlier this year we updated shareholders on Jansen’s cost and schedule, with first potash projected in mid-CY2027. This will further diversify our portfolio and provide greater resilience across our mix of commodities. We believe Jansen is a WAIO-like asset that can eventually produce around 10 per cent of global potash supply at an expected earnings margin greater than 60 per cent. Our immediate priority is disciplined project execution, with tighter controls and safe delivery of first production.
We also advanced our sector-leading copper growth pipeline. Our plans for a new concentrator at Escondida have been submitted to environmental authorities in Chile, while Copper South Australia’s expansion plans have progressed to detailed engineering ahead of a final investment decision. In June, two sustaining growth projects were sanctioned at Spence, with first production expected from FY2028. We also achieved important regulatory milestones at our non-operated joint ventures, Vicuña and Resolution, and developed further exposure to future copper opportunities through our investment in Faraday Copper.
Taken together, we aim to deliver compound annual production growth on a copper-equivalent basis from our current organic growth plans of around 3-4 per cent a year from FY2027 through to FY2035. That includes growth in our copper business of around 5 per cent per year to FY2035.
Winning the next decade
We have the people and the portfolio to deliver more of the commodities the world needs – safely, productively and responsibly, with three strategic pillars to guide this.
3
Table of Contents
First, accelerating our performance. Making BHP safer and simpler by pairing the BOS with faster adoption of technology. As those two systems reinforce each other, we can accelerate the rate of safety and productivity improvement across every part of BHP.
Second, delivering disciplined, programmatic growth. Our growth options are deliberately sequenced, which allows us to execute on our capital priorities and invest through the cycle. We are focused on lifting our major projects capability, progressing our copper and potash growth options, and replenishing our resource base for the future. That means increasing exploration, executing smaller bolt-on acquisitions where the value case is clear, and pursuing partnerships, including those that unlock value in adjacent operations.
Finally, we must strengthen our foundations that underpin our long-term value. That means delivering on our social value and sustainability commitments and deepening our core relationships with governments, communities and industry partners. This is key to building resilience in our existing operations and creating new opportunities for growth. We will also keep investing in the next generation of leadership, capability and talent.
Creating lasting value
After more than 25 years at BHP, I know what our people can achieve when we are aligned behind clear priorities and execute with discipline.
As much as we have achieved in our long history, I believe our best chapters are still to be written. I am excited about the value we can create for you and the world around us.
Thank you for your support.
/s/ Brandon Craig
Brandon Craig
Chief Executive Officer
4
Table of Contents
Eliminating fatalities from BHP is our highest priority.
We are deeply saddened by the loss of our colleague, who was working for a contracting partner at BMA's Peak Downs mine in July 2026. An investigation into the incident is underway and the outcomes will be used to strengthen our continued efforts to eliminate fatalities and serious injuries across our operations. This tragedy follows a period of sustained safety improvements and reinforces that there is always more work to do.
Our health and safety performance
In FY2026, we worked to reinforce our safety foundations through a safety-first culture, greater use of technology to help identify and control risks, and further integration of the BHP Operating System (BOS) across our operations.
The tragic loss of our colleague in July reinforces why the safety of our people will always remain our highest priority as we strive to eliminate fatalities across BHP. In FY2027, our commitment to safety culture and technology deployment to assist in reducing risk exposure remains as we also continue to strengthen front line management of safety risk by maturing and deepening our BOS capability. We intend to reduce our exposure further by taking a risk-based approach to the continued deployment of autonomous haulage and by expanding the use of technology-enabled controls to support and strengthen risk management.
A particular focus in FY2027 will be on strengthening our contractor management framework to support improvement in contractor safety performance.
In FY2026:
>For more information, including detail on occupational illnesses and coal mine dust lung disease cases, refer to the BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026
>For more information on the presentation of sustainability-related data refer to OFR 9.1
During FY2026 we took targeted actions, to strengthen leadership presence in the field and continued to build momentum through our Global Field Leadership program.
We also held our first Global Safety Week. The initiative reinforced our focus on safety leadership, site-based risk management and integration with BOS, while providing an opportunity for our workforce to reflect on critical risks and share learnings.
Technology continued to play an increasingly important role in supporting risk identification and control management. We are focused on the use of technology to help us solve for ongoing risk exposures that rely on human-dependent controls as the last line of defence, and in FY2026 we continued to adopt and scale technology-enabled safety controls.
Key initiatives included:
5
Table of Contents
Footnotes
6
Table of Contents
A stronger, more resilient BHP
7
Table of Contents
BHP’s value proposition is clear and we are well positioned to lift our performance and growth to the next level.
We produce commodities essential to global development and modern life, which we expect will be in strong demand for decades to come.
Our assets are large, long-life and low cost with options to grow. They are part of a portfolio that is deliberately diversified to give us resilience through cycles and exposure to long-term growth.
We have significant opportunity to further lift performance in our assets and a clear pathway for growth while maintaining our long-standing commitment to operational excellence and financial discipline. We will do this by further embedding the BHP Operating System (BOS) and using technology as a productivity accelerator.
Our scale, diversified portfolio of world-class Tier 1 assets in attractive and durable commodities and exciting copper and potash growth pipeline are compelling.
Combined with the quality of our people and culture, our commitment to responsible stewardship and a differentiated focus on social value, they form a formidable platform to continue to create value for our shareholders, now and in the years ahead.
Clear strategy, the right commodities
BHP has a simple and clear strategy that has proven successful.1
We are the world’s largest copper producer.2 We produced around 2 million tonnes (Mt) of copper in FY2026 for the second year running as global copper prices hit record levels and supply remained constrained. Our copper assets contributed more than half of our Group Underlying EBITDA for the year for the first time in FY2026. As the world continues to electrify, urbanise and digitalise, we expect the strong fundamentals for copper to remain. Copper demand is expected to grow from ~34 Mtpa today to >50 Mtpa by CY2050, driven by traditional economic growth (home building, electrical equipment and household appliances), energy transition (renewables and electric vehicles) and digital (artificial intelligence and data centres). Current expectations are that copper demand associated with investment in data centres could grow around sixfold between CY2024 and CY2050, up to around 3 Mtpa.3
We anticipated and planned for this increase in demand and are working to increase our copper exposure further. We have exciting growth options in copper4 that could help lift our attributable copper equivalent production from our copper business by around 5 per cent a year from FY2027 to FY2035.5 This is growth that we believe will be clear, executable and value accretive.
We remained the world’s lowest-cost major iron ore producer6 over the last seven years and are focused on extending our industry-leading cost position at WAIO. We plan to increase production to >305 Mtpa (100 per cent basis) by Q4 FY2028 and sustain this level over the medium term. In periods of high inflation, our leading cost position is a significant competitive advantage as the cost gap between efficient and less efficient producers grows. BMA remains one of the largest suppliers of higher‑quality steelmaking coal in the global seaborne market.7 And we are building a significant potash business in Canada,4 with first production expected in mid-CY2027. Potash is an exciting new growth market for us that will further diversify our portfolio, helping make BHP stronger and more resilient.
Operational excellence, disciplined capital allocation
Our global workforce achieves great results, time and again. We continue to focus on talent development. BOS guides how we work, making improvement central to everyone’s role, enabling our workforce to make BHP better every day.
BOS gives us a competitive edge by making continuous improvement part of how we work every day. Through its tools and practices, it strengthens our culture and supports ambitious targets. It helps create better planned, more stable work. Ultimately, BOS shapes how we work together and how we deliver.
Our Capital Allocation Framework (CAF) underpins disciplined capital management by ensuring potential uses of capital compete to maximise value and returns. We continuously seek to unlock additional value from our capital base and assets, announcing agreements in FY2026 to unlock a total of US$6.3 billion of capital through a WAIO power infrastructure agreement and a silver streaming agreement for our share of silver production at the Antamina mine in Peru.8
This combination delivers stable, predictable performance, supporting industry-leading margins, high returns and effective use of our balance sheet and supports more stable and consistent returns for our shareholders.
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Leveraging BOS and technology to drive productivity
We believe we can accelerate our performance by pairing BOS with the faster adoption of technologies such as artificial intelligence (AI) to lift our rate of improvement, unlocking greater safety and productivity.
Technology is also integral to how our teams explore, plan, operate and maintain our assets.
Together, they can create a compounding effect to enable stronger safety outcomes and accelerating rates of productivity improvement.
Continuous improvement of our technology foundations and digital capabilities is key to our strategy. This includes strengthening the reliability, resilience and security of our systems, alongside expanding the use of technologies such as AI, automation and advanced analytics where they can help our teams address practical challenges and opportunities and work more safely. We are supporting our workforce to understand and use these tools effectively in their work, helping us make better decisions, improve reliability and deliver more consistent outcomes while unlocking value across our operations.
Differentiated focus on social value
A key part of our competitive advantage is our focus on working with others to create a lasting contribution to society. This builds trust and connects us to the resources, partners, investors, talent and markets that drive performance, resilience and growth. Our approach to social value differentiates BHP and creates long-term value for stakeholders, including our shareholders.
> For more information on social value refer to OFR 9.3
Our business model
Exploration and acquisition
We seek to add high-quality resources through our exploration activities and early-stage entry and acquisition options.
Development and mining
We strive to achieve industry-leading performance in safety, operational excellence, project management and allocation of capital.
Process and logistics
We process and refine ore and seek to safely manage waste. Our objective is to efficiently and sustainably transport our products to customers.
Sales, marketing and procurement
We maximise value through our centralised marketing and procurement organisations, commercial expertise, understanding of markets, and customer and supplier relationships.
Closure and rehabilitation
We consider closure and rehabilitation throughout the asset lifecycle to help minimise our impact and optimise post-closure value for all stakeholders and partners.
Footnotes
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on BHP internal analysis of WAIO C1 reported unit costs compared to publicly available unit costs reported by major competitors (including Fortescue, Rio Tinto and Vale), adjusted for alignment based on publicly available financial information. There may be differences in the manner that third parties calculate or report unit costs data compared to BHP, which means third‑party data may not be comparable with our data.
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BHP is well placed to capitalise on changes shaping our world.
Growing our leading position in copper
We are the world’s largest copper producer.1 We are advancing significant copper growth options. We estimate these growth options could increase our attributable copper production to ~2 Mtpa (~2.5 Mtpa in copper equivalent (CuEq) production) by FY2035, an increase of around 40 per cent on current attributable copper production levels. 2 This represents copper equivalent growth from our copper business of an average 5 per cent a year between FY2027 and FY2035.2
This is an exciting position to be in. We see solid fundamentals underpinning the copper price in the decades ahead. We see solid fundamentals underpinning the copper price in the decades ahead. We continue to expect global copper demand to grow to over 50 million tonnes by CY2050 through traditional economic growth, the energy transition, and AI‑driven data centre demand.3 We also see a looming global copper supply challenge, as existing copper mines age and with the pipeline of potential projects less healthy than in previous cycles.
Escondida: We are advancing the Escondida New Concentrator, the centrepiece of the growth program at Escondida, the world’s biggest copper mine. In March 2026, we submitted the Environmental Impact Declaration and a final investment decision for the new concentrator is expected in CY2027 or CY2028. This new concentrator, which will replace the existing Los Colorados concentrator, is expected to deliver copper production at Escondida of 230–270 kilotonnes per annum (ktpa) between CY2031 and CY2032 from increased ore throughput and improved recoveries from the use of new technology and reagents, and will have a higher production capacity than the existing Los Colorados concentrator.
Copper South Australia: In South Australia, we are progressing a number of projects that have the potential to increase copper production to ~500 ktpa (~770 ktpa CuEq) in the first phase and contribute to our strategy to deliver up to 650 ktpa copper production (~1 Mtpa CuEq) from our 100 per cent-owned Copper SA in the second phase.4
Vicuña: This non-operated joint venture with Canada’s Lundin Mining along the Argentina-Chile border is being developed using a staged approach. Vicuña remains on track for a potential Stage 1 final investment decision as early as end of CY2026, with the potential to produce ~200 ktpa copper (~300 ktpa CuEq) on a 100 per cent basis.5
Resolution Copper: In the United States, Resolution Copper, a non-operated joint venture between Rio Tinto (55 per cent and operator) and BHP (45 per cent), completed a land exchange in Arizona. BHP declared a Mineral Resource for Resolution for the first time in FY2026, representing one of the largest untapped, high-grade copper resources in the world, with the potential to become a significant copper producer in North America.6
Other: To maintain exposure to future copper opportunities, we have invested in Faraday Copper Corp to support the development by Faraday of a new copper hub in Arizona. Spence also signed a Memorandum of Understanding (MoU) with Sierra Gorda SCM to explore commercial collaboration opportunities aimed at improving the efficiency and long-term competitiveness of these two adjacent operations.
First potash production on track for mid-CY2027
Once ramped up our Jansen potash project in Canada is expected to be a world-class, low-cost potash producer. Stage 1 of our Jansen potash project in Canada is 84 per cent complete and on track for first production in mid-CY2027.
Jansen has the potential to operate for more than 60 years and will establish BHP in a new commodity that is essential to food security. Potash demand drivers and key customer markets are different from our other commodities. This means prices are less correlated, increasing diversification and driving even more stability in earnings and cash flow generation for the BHP asset portfolio.
WAIO: growing production, lowering costs
WAIO is already the world’s lowest-cost major iron ore producer, a position it has maintained for the past seven years. We plan to increase production to >305 Mtpa (100 per cent basis) by Q4 FY2028 and sustain this level over the medium term through a range of low‑capital, high‑returning projects. These include the sixth car dumper (CD6) sanctioned in August 2025, uplifting rail capacity through reduced cycle times, increasing autonomous haulage and driving further productivity improvements across the supply chain through the BHP Operating System. Our cost leadership at WAIO delivers around US$10 per tonne more free cash flow than our next closest major Pilbara competitor.
Embracing the technology of the future
BHP Ventures
BHP Ventures is our dedicated venture capital unit. It invests in companies developing game-changing technologies with the potential to make BHP’s global operations safer, more productive and more sustainable.
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Investments in FY2026 included technologies advancing robotics and AI, and mineral processing technologies. Through our investments, we aim to accelerate the development of technology – such as early-stage processing technologies – to benefit not only our business and value chain, but that of our broader industry.
BHP Invent
BHP Invent discovers, tests and accelerates emerging technologies to deployment readiness, helping us deliver the commodities the world needs through new approaches to ore body knowledge, mining, processing, leaching and tailings.
During the year, we accelerated a range of technologies that aim to increase copper recovery through processing, aim to accelerate assessment of complex ore bodies through advanced sensors and data analytics, and aim to improve mine safety through advanced underground systems and ventilation innovations. Key technologies have received endorsement for future implementation by the asset and have progressed to asset designs, flowsheets and life of asset plans for future deployment on site.
Growth through exploration, focused on copper
Greenfield exploration
Our greenfield exploration is focused on the discovery of material new copper resources. In FY2026, we continued to strengthen our exploration portfolio through advancing existing projects and selectively expanding into new regions that meet clear value thresholds. Our efforts spanned early-stage greenfield exploration, strategic alliances, expansion of our Xplor accelerator program and value uplift of existing assets.
We advanced greenfield exploration activities in Australia, Botswana, Canada, Norway, Peru, Serbia and the United States and have supported value uplift of existing assets in Chile and the United States.
BHP Xplor
Through Xplor, our equity-free partnership program, we are working with explorers and technology providers to accelerate novel ideas in mineral exploration. Xplor extends BHP’s reach into emerging concepts and in turn shares the benefits of BHP’s expert network with our partners. To date, Xplor has supported 31 companies, with several companies advancing to longer-term commercial arrangements – demonstrating a clear pathway from concept to partnership. The FY2026 cohort consisted of 10 participants across exploration, data and technology, and represented our most diverse cohort to date.
Exploration expenditure
Our total metals exploration and resource assessment expenditure was US$408 million in FY2026, a 3 per cent increase on FY2025, and includes greenfield expenditure of US$132 million, a 10 per cent decrease from FY2025. Commentary in this section refers to greenfield exploration only.
Footnotes
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4.1 Copper
Escondida
Ownership
BHP 57.5%, Rio Tinto 30%, JECO Corporation 10%, JECO 2 Ltd 2.5%
Overview
Located in the Atacama Desert in northern Chile, Escondida is a leading producer of copper concentrate and cathodes, with by-products including gold and silver. Escondida’s two open-cut pits feed three concentrator plants and two leaching operations.
Key developments in FY2026
During FY2026, Escondida celebrated 35 years since the beginning of its operations in 1991.
Copper production decreased 3 per cent to 1,261 kilotonnes (kt) (FY2025: 1,305 kt) due to planned lower concentrator feed grade of 0.90 per cent (FY2025: 1.02 per cent). This was partially offset by continued strong operational performance and productivity improvements, with record material mined and record concentrator throughput, as well as improved recoveries driven by operational enhancements, including the introduction of new reagents. Cathode production increased, supported by higher Full SaL recoveries and improved operational performance, enabling additional sulphide leach pad irrigation.
During FY2026, Escondida continued to make positive progress on the optimised Escondida Growth Program. In September 2025, the Antofagasta Environmental Evaluation Committee approved the Environmental Impact Declaration (DIA) for the Laguna Seca Expansion, enabling early infrastructure development. In March 2026, the DIA permit for the Escondida New Concentrator, the centrepiece of the growth program, was submitted. The new concentrator is expected to require an investment of between US$5.4 and US$6.3 billion to deliver between 230 and 270 ktpa of copper production capacity, more than offsetting the existing production capacity of the current Los Colorados plant which it will replace. Subject to approval of the DIA permit, the project will progress towards an expected final investment decision (FID) in CY2027–2028, with potential first production between CY2031–2032.
We continue to study various leaching technologies, with each at different stages of evaluation.
Production guidance for FY2027 remains unchanged between 1,000 and 1,100 kt. Concentrator feed grade for FY2027 is expected to be ~0.70 per cent.
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Pampa Norte
Ownership
BHP 100%
Overview
Pampa Norte comprises two open-cut mines in the Atacama Desert in northern Chile – Spence and Cerro Colorado. Spence produces copper cathodes and copper concentrate, with by-products including gold, silver and molybdenum. Cerro Colorado produced copper cathodes until it entered temporary care and maintenance in December 2023.
Key developments in FY2026
Spence copper production decreased 21 per cent to 213 kt due to ongoing challenges with ore complexity at the concentrator, and the planned decline in stacked feed grade at the cathode plant, as we progress deeper into the hypogene mineralisation of the ore body. The Spence Concentrator Upgrade Recovery project, which upgrades the flotation circuit to increase residence time and improve recoveries, was sanctioned in June 2026, with first production expected during FY2028. Once commissioned, we expect the project will allow us to more effectively manage Spence’s ore complexity and variability. The Spence Chalcopyrite Leaching project was also sanctioned in June 2026, which includes the implementation of BHP’s sulphide leaching technology, Simple Approach to Leaching 2, to enable processing of hypogene ores and utilise latent capacity in the cathode infrastructure, with first production expected in CY2028.
Production at Spence for FY2027 is expected to be between 210 and 230 kt, as Spence continues to manage ore variability via blending at the concentrator before the concentrator upgrade comes online in FY2028.
Cerro Colorado which remains in care and maintenance, submitted an Environmental Impact Assessment (EIA) in June 2026, setting out a plan to restart operations and extend the mine life for an additional 20 years through upgrading existing infrastructure and developing a sustainable water solution. The project aims to leverage existing resources and proven BHP chloride leaching technology to produce copper cathodes.
Copper South Australia
Ownership
BHP 100%
Overview
Located in South Australia’s Gawler Craton region, Copper South Australia comprises the Olympic Dam, Carrapateena and Prominent Hill underground mining and surface operations, and the Oak Dam exploration project.
Olympic Dam has integrated crushing, grinding, concentrating, smelting and refining operations, and produces copper cathode, gold and silver bullion, and uranium oxide concentrate.
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Carrapateena and Prominent Hill use underground mining and surface grinding and concentrating methods to produce copper concentrate, with gold and silver by-products. Oak Dam is a greenfield copper deposit with a copper and gold mineral resource, with potential silver and uranium, located between Carrapateena and Olympic Dam.
Key developments in FY2026
Copper South Australia achieved production of 321 kt of payable copper (FY2025: 316 kt), gold production of 393 thousand troy ounces (ktoz) (FY2025: 361 ktoz) and 3.6 kt of uranium (FY2025: 3.2 kt).
Production increased due to strong operational performance, including record material mined and ore milled, as well as the weather-related power outage in the prior period which impacted FY2025 production. Olympic Dam achieved a 20-year copper production record, while Prominent Hill benefited from higher feed grades. Carrapateena achieved record material mined and milled, which partially offset the impact of planned lower grades.
By-product production volumes were also strong with record gold production, including record refined gold at Olympic Dam, capitalising on strong gold prices, while uranium production also increased 16 per cent. At Prominent Hill, commissioning commenced on the Operations Expansion project (PHOX), which remains on track for first production in the second half of FY2027 and is expected to extend mine life into the mid-2040s. At Carrapateena, the decline to the base of the block cave was completed, a key milestone in our plan to expand Carrapateena operations up to 12 million tonnes per annum (Mtpa). Block cave ramp-up is scheduled to commence in FY2030. At Olympic Dam, progress continued on the Southern Mining Area Decline with lateral development commencing during the year. The project is expected to unlock up to 2.5 Mtpa of additional vertical capacity and remains on track for completion in the second half of FY2028.
Progress also continued across the broader growth program, with a design and supply contract awarded to China Nerin Engineering for key processing facilities associated with the Smelter and Refinery Expansion. At Oak Dam, exploration activities advanced in parallel with government approvals for the twin underground access declines.
Production for FY2027 is expected to be 290–320 kt, reflecting planned anode inventory build ahead of smelter maintenance scheduled for the first half of FY2028 and the impact of an unplanned conveyor belt failure at Carrapateena in July 2026.
Non-operated joint ventures
Antamina
Ownership
BHP 33.75%, Glencore 33.75%, Teck 22.5%, Mitsubishi 10%
Overview
Antamina, located in north central Peru, is a large, low-cost, open-cut copper and zinc mine with by-products including molybdenum and silver. It is independently operated by Compañía Minera Antamina S.A.
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Key developments in FY2026
Copper production increased 27 per cent to a financial year record of 152 kt, as a result of higher feed grades and improved operational performance. Zinc production decreased 11 per cent to 96 kt, primarily due to lower feed grades.
During FY2026, BHP completed a long-term silver streaming agreement with Wheaton Precious Metals International Ltd. relating to BHP’s share of silver production from Antamina. Under the agreement, BHP received upfront consideration of US$4.3 billion. In exchange, BHP will deliver silver to Wheaton calculated by reference to BHP’s share of silver produced at Antamina, with settlement via metal credits and no physical delivery of silver. Antamina is not a party to the agreement. The agreement does not affect BHP’s shareholder rights, obligations under the joint venture arrangements, existing customer agreements, or exposure to copper, zinc and lead production from its share of Antamina.
Production for FY2027 is expected to be between 120 and 140 kt for copper and between 35 and 55 kt for zinc due to planned lower feed grades.
Resolution Copper
Ownership
Rio Tinto 55%, BHP 45%
Overview
Resolution Copper, in Arizona, US, represents one of the largest untapped, high-grade copper resources in the world, with the potential to become a significant copper producer in North America. Resolution Copper is operated by Rio Tinto.1
Key developments in FY2026
Resolution Copper progressed engineering and permitting activities during FY2026.
During the period, a key milestone was achieved, with the completion of a land exchange (LEX) with the US Government. Mandated by federal law, the LEX secured land critical for the project in exchange for environmentally sensitive and culturally important land owned by Resolution Copper, which was transferred to the US Government. This milestone enables the next phase of technical work and development planning. The LEX remains subject to ongoing litigation which is not currently impacting ongoing technical work. The Resolution Copper Project is also required to obtain state and local permits.
As technical studies and permitting activities advance, Resolution Copper remains committed to engaging with Native American Tribes and other stakeholders to create shared value and long-term benefits.
Footnote
Regulation S‑K (S‑K 1300), refer to Additional Information 6 ‘Mineral Resources and Mineral Reserves'
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Vicuña
Ownership
BHP 50%, Lundin Mining 50%
Overview
Vicuña is advancing the opportunity for a staged development of the Josemaria and Filo del Sol deposits as an integrated project located along the border of San Juan province, Argentina and the Atacama region of Chile. It is independently operated by Vicuña Corp, a Canadian-incorporated joint venture company.
Key developments in FY2026
In February 2026, Vicuña released a Technical Assessment Report (including an updated mineral resource estimate) on the integrated Vicuña project, comprising Josemaria and Filo del Sol. The report reinforced the scale of the resource and the opportunity to develop a top global copper, gold and silver producing asset.
Vicuña continues to advance work to enable the development of the project in stages, designed to optimise capital, manage risk, generate early cash flow and maximise long-term district value. Development of Stage 1, with initial production from the Josemaria deposit, would set up the district for later development of the Filo del Sol deposit in Stages 2 and 3.
An update to the Josemaria Environmental Impact Declaration (DIA) was approved by the San Juan authorities in March 2026. In June 2026, Vicuña received approval for the inclusion of the Josemaria and Filo del Sol deposits to Argentina’s Incentive Regime for Large Investments (RIGI) under the Long-Term Strategic Export Projects designation (PEELP). Vicuña is the first mining project to be granted the RIGI PEELP status providing the project with significant economic benefits and fiscal certainty for up to 40 years.
Vicuña remains on track for a potential Stage 1 final investment decision as early as end of CY2026.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
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4.2 Iron Ore
Western Australia Iron Ore
Ownership
Western Australia Iron Ore (WAIO) BHP ownership: 85% for the four main joint ventures (JVs): Mt Newman JV, Yandi JV, Mt Goldsworthy JV and Jimblebar JV (the JVs are unincorporated, except Jimblebar JV); and 65% for POSMAC, which sells its ore to Mt Goldsworthy JV.
Overview
WAIO is an integrated system of four processing hubs and five open-cut operational mines in the Pilbara region of northern Western Australia. It owns and operates more than 1,000 kilometres of rail infrastructure and two port facilities.
WAIO’s mineral reserves are developed through integrated mining hubs connected to the mines and satellite orebodies by conveyors or spur lines. This approach seeks to maximise the value of installed infrastructure by using the same processing plant and rail infrastructure for several orebodies.
Ore is crushed, beneficiated (where necessary) and blended at the processing hubs – Mt Newman (which has our beneficiation plant), Yandi (which will process Ministers North in the future), Mining Area C (our largest operating iron ore hub, processing ore from Area C and South Flank) and Jimblebar – to create lump and fines products. These products are then transported along the Port Hedland–Mt Newman rail line to the Finucane Island and Nelson Point port facilities at Port Hedland.
Key developments in FY2026
WAIO delivered record production as a result of strong operational performance across the supply chain. WAIO achieved record material mined (up 6 per cent), with South Flank exceeding annual nameplate capacity. A drawdown of inventory at the Central Pilbara Hub (South Flank and Mining Area C) supported record volumes and provided value chain resilience. At port, Car Dumper (CD) performance improved following the completion of the Car Dumper 3 (CD3) rebuild in Q1 FY2026 (4.3 Mt impact, 100 per cent basis), which alongside the planned reduction in tie-in activity on the multi-year Rail Technology Program (RTP1) and combined with operational improvements across the rail network, generated increased efficiency, record inflow and record shipments (100 per cent basis).
In June 2026, the execution of the Ministers North project was approved for an investment of ~US$0.9 billion (100 per cent basis). Ministers North is a high-grade Brockman ore deposit and is expected to deliver ~20 Mtpa once ramped up, supporting sustained production of >305 Mtpa (100 per cent basis). The project is expected to generate attractive returns of >30 per cent as a result of utilising existing Yandi infrastructure. First ore is expected in FY2029.
Production for FY2027 is expected to be between 253 and 264 Mt (286 and 298 Mt on a 100 per cent basis) and includes the renewal of Car Dumper 4 in the first half of FY2027.
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Non-operated joint venture
Samarco
Ownership
BHP 50%, Vale 50%
Overview
Samarco comprises an open-cut mine and three concentrators in Minas Gerais, Brazil and four pellet plants and a port in Anchieta, Espírito Santo, Brazil. Three 400-kilometre pipelines connect the mine to the pelletising facilities. Samarco is independently operated by Samarco Mineração S.A.
Operations were suspended in November 2015 following the Fundão dam failure. Since resuming in December 2020, Samarco has implemented enhanced tailings management practices, enabling operation without a conventional tailings dam. Samarco has pursued a safe and sustainable phased restart. The third phase, approved by the Samarco Board in November 2025, is expected to increase production capacity to 100 per cent, targeting an annual production of approximately 26 Mtpa (100 per cent basis) by CY2029.
> For more information on the Fundão dam failure and response refer to Additional information 8
Key developments in FY2026
Production (iron ore pellets and ore fines) increased 25 per cent to 7.8 Mt (BHP share) due to better than planned concentrator performance.
Production for FY2027 is expected to be between 7.5 and 8.0 Mt (BHP share).
Samarco continued the decommissioning of its upstream tailings dam structures in accordance with Brazilian legislation. Decommissioning of the Germano Main dam progressed as planned and remains on track for completion in FY2027. These structures continue to be certified as stable by independent third parties and are compliant with local stability and monitoring requirements. Samarco also maintained compliance with the Global Industry Standard on Tailings Management (GISTM).
Samarco is continuing broader studies to review solutions to operate without tailings dams beyond FY2030.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
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4.3 Coal
Steelmaking coal
BHP Mitsubishi Alliance
Ownership
BHP 50%, Mitsubishi 50%
Overview
BHP Mitsubishi Alliance (BMA) operates five steelmaking coal mines in the Bowen Basin, Queensland – Goonyella Riverside, Broadmeadow, Peak Downs, Saraji and Caval Ridge. The mines are open cut, except for the Broadmeadow underground longwall operation. BMA has access to infrastructure including a multi-user rail network and owns and operates its own coal-loading terminal at Hay Point, near Mackay.
Based on customer requirements, coal from different coal seams is blended to meet required quality specifications then washed at processing plants on site at Goonyella Riverside (which also processes Broadmeadow coal), Saraji, Peak Downs and Caval Ridge.
Key developments in FY2026
Production increased with strong operational performance at the open-cut operations, delivering the highest stripping volumes in five years. Improved wet weather operating performance enabled BMA to partially mitigate the impacts of higher-than-average rainfall including Tropical Cyclone Koji, weather-related mine sequencing impacts on yield, and ongoing geotechnical challenges at the Broadmeadow underground mine. BMA also increased raw coal inventory levels by around 30 per cent, reflecting the focus on strengthening supply chain stability and resilience. In December 2025, Saraji South mine was placed into a period of care and maintenance.
Production for FY2027 is expected to be between 18.5 and 20.5 Mt (37 and 41 Mt on a 100 per cent basis), weighted to the second half.
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Energy coal
New South Wales Energy Coal
Ownership
BHP 100%
Overview
New South Wales Energy Coal (NSWEC) comprises the Mt Arthur Coal open-cut energy coal mine in the Hunter Valley. It has access to infrastructure in the Hunter Region, including a multi-user rail network and coal loading terminal access at the Port of Newcastle through Newcastle Coal Infrastructure Group (BHP ownership: 28 per cent) and Port Waratah Coal Services.
We have approval to continue mining at NSWEC until the end of FY2030. This will allow time to work with our people and the local community on an equitable change and transition approach, balancing business, community and regulatory needs and expectations.
Key developments in FY2026
NSWEC FY2026 production of 16.36 Mt exceeded the top end of the external guidance range of 14–16 Mt, assisted by increased bypass coal due to mine sequencing. This was further supported by mining lower strip ratio areas as we continue to progress our plan to cease mining at the Mt Arthur Coal mine in June 2030.
Progressive rehabilitation of the site continues, in parallel with land use studies to consider options for future use of parts of the site and infrastructure after mining by BHP ceases. In November 2025, the Federal Net Zero Economy Authority announced funding for a mine land and infrastructure re-use pilot project at the Mt Arthur Coal mine, delivered in partnership with the NSW State Government, and the local Muswellbrook Shire Council, to progress approval pathways required to repurpose land and realise future employment opportunities. Technical and related studies are ongoing with third parties to explore a potential pumped hydro energy storage opportunity that could be progressed by others.
Production for FY2027 is expected to be between 14 and 16 Mt.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025
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4.4 Nickel
Western Australia Nickel
Ownership
BHP 100%
Overview
Western Australia Nickel comprises Nickel West and the West Musgrave project. It transitioned into temporary suspension at the end of the first half of FY2025 following oversupply in the global nickel market.
Western Australia Nickel holds the majority of tenements hosting nickel sulphide mineral resources in the Agnew-Wiluna belt, Western Australia. The Nickel West asset consists of open-cut and underground mines, concentrators, and a smelter and refinery for downstream processing. The West Musgrave project is a greenfield nickel and copper project located in the West Musgrave Ranges of Western Australia. Project construction has been temporarily suspended at ~30 per cent completion.
Key developments in FY2026
We intend to review the decision to temporarily suspend Western Australia Nickel by February 2027. As part of this review, BHP is assessing the potential divestment of the Western Australia Nickel assets. Any decision to divest will be subject to an assessment against other options, including continuing temporary suspension, restart or closure.
During the review process, BHP continues to support the workforce with a people first approach; ensure the ongoing safety and integrity of the mines and related infrastructure; work closely with Traditional Owners, governments and suppliers, and invest in local communities via the A$20 million Community Fund established in 2024; and invest in exploration to extend the resource life of Western Australia Nickel and preserve optionality.
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4.5 Potash
Jansen potash project
Ownership
BHP 100%
Overview
The Jansen potash project is located about 140 kilometres east of Saskatoon, Saskatchewan, Canada. Jansen’s large resource is being developed in stages, with Jansen Stage 1 (JS1) expected to produce 4.15 Mt of potash per annum once fully ramped up, while Jansen Stage 2 (JS2) is expected to produce an additional 4.36 Mtpa. Combined output from the Jansen potash project is expected to be 8.5 Mtpa once JS1 and JS2 are fully ramped up. There are further potential brownfield expansions of up to 8 Mtpa.
Jansen is a world-class asset and is expected to have operating costs at the low end of the cost curve when fully ramped up. BHP holds mineral leases covering around 8,600 square kilometres in the Saskatchewan potash basin.
Key developments in FY2026
JS1 was 84 per cent complete as at 30 June 2026. During FY2026, we progressed underground and surface construction activities, including structural, mechanical and electrical works across key facilities.
In January 2026, BHP completed a detailed review of JS1’s cost and schedule estimates and confirmed that the total investment estimate for JS1 has increased to US$8.4 billion (including contingencies) from the preliminary updated estimated range of US$7.0 billion to US$7.4 billion (including contingencies) announced in July 2025, reflecting inflationary and real cost escalation pressures, design development, scope changes and lower productivity outcomes. BHP has implemented a response plan to address cost and schedule risks for JS1 which has improved productivity, strengthened project management and enhanced oversight of execution contracts. This plan is supporting sustained efficiency gains in the delivery of JS1 to completion with first production on track for mid-CY2027.
JS2 was 16 per cent complete as at 30 June 2026, with progress driven by engineering, procurement activities and civil works.
During FY2026, BHP completed a detailed review of cost and schedule estimates for JS2. Total investment for JS2 is estimated to be approximately US$6.9 billion (including contingencies), reflecting a US$2.0 billion increase from our previous investment cost estimate of US$4.9 billion when JS2 was approved in October 2023. As a result of higher-than-expected capital intensity for the Jansen potash project, including Stages 1 and 2 and potential future expansions, a non-cash impairment charge of US$2.3 billion (before and after tax) has been recognised in FY2026. Refer to Financial Statements note 3 and 13 for further information.
First production from JS2 is expected in late FY2031, following the previously announced extension of execution timing.
24
Table of Contents
5.1 Group overview
We prepare our Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. We publish our Consolidated Financial Statements in US dollars. All Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement information below has been derived from audited Consolidated Financial Statements.
> For more information refer to Financial Statements
We use various non-IFRS financial information to reflect our underlying performance. Non-IFRS financial information is not defined or specified under the requirements of IFRS, however is derived from the Group’s Consolidated Financial Statements prepared in accordance with IFRS. Non-IFRS financial information is consistent with how management reviews financial performance of the Group with the Board and the investment community. OFR 8 ‘Non-IFRS financial information’ includes our non-IFRS financial information and OFR 8.1 ‘Definition and calculation of non-IFRS financial information’ outlines why we believe non-IFRS financial information is useful and the relevant calculation methodology. We believe non-IFRS financial information provides useful information, however it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performance (such as profit or net operating cash flow) or any other measure of financial performance or position presented in accordance with IFRS, or as a measure of a company’s profitability, liquidity or financial position.
Summary of financial measures
Year ended 30 June |
|
2026 |
|
|
2025 |
|
||
Consolidated Income Statement (Financial Statements 1.1) |
|
|
|
|
|
|
||
Revenue |
|
|
58,760 |
|
|
|
51,262 |
|
Profit/(loss) after taxation |
|
|
13,026 |
|
|
|
11,143 |
|
Profit/(loss) after taxation attributable to BHP shareholders |
|
|
9,833 |
|
|
|
9,019 |
|
Dividends per ordinary share – paid during the period (US cents) |
|
|
133.0 |
|
|
|
124.0 |
|
Dividends per ordinary share – determined in respect of the period (US cents) |
|
172.0 |
|
|
110.0 |
|
||
Basic earnings/(loss) per ordinary share (US cents) |
|
|
193.6 |
|
|
|
177.8 |
|
Consolidated Balance Sheet (Financial Statements 1.3) |
|
|
|
|
|
|
||
Total assets |
|
|
121,387 |
|
|
|
108,790 |
|
Net assets |
|
|
56,321 |
|
|
|
52,218 |
|
Consolidated Cash Flow Statement (Financial Statements 1.4) |
|
|
|
|
|
|
||
Net operating cash flows |
|
|
21,778 |
|
|
|
18,692 |
|
Capital and exploration and evaluation expenditure |
|
|
10,257 |
|
|
|
9,794 |
|
Other financial information (OFR 8) |
|
|
|
|
|
|
||
Net debt |
|
|
8,694 |
|
|
|
12,924 |
|
Underlying attributable profit |
|
|
13,204 |
|
|
|
10,157 |
|
Underlying EBITDA |
|
|
32,947 |
|
|
|
25,978 |
|
Underlying basic earnings per share (US cents) |
|
|
260.0 |
|
|
|
200.2 |
|
Underlying return on capital employed (per cent) |
|
|
26.1 |
|
|
|
20.6 |
|
5.2 Key performance indicators
Our key performance indicators (KPIs) enable us to measure our development and financial performance. These KPIs are used to assess performance of our people throughout the Group.
> For information on our approach to performance and reward refer to Remuneration Report
25
Table of Contents
> For information on our overall approach to executive remuneration, including remuneration policies and remuneration outcomes refer to Remuneration Report
26
Table of Contents
Reconciling our financial results to our key performance indicators
|
|
Profit |
|
|
Earnings |
|
|
Cash |
|
|
Returns |
|||||||
|
|
|
|
US$M |
|
|
|
|
US$M |
|
|
|
US$M |
|
|
|
|
US$M |
Measure |
|
Profit after taxation |
|
13,026 |
|
|
Profit after taxation |
|
13,026 |
|
|
Net operating cash flows |
21,778 |
|
|
Profit after taxation |
|
13,026 |
Made up of |
|
Profit after taxation |
|
|
Profit after taxation |
|
|
Cash generated by the Group’s consolidated operations, after dividends received, interest, proceeds and settlements of cash management related instruments, taxation and royalty-related taxation. It excludes cash flows relating to investing and financing activities. |
|
|
Profit after taxation |
|||||||
Adjusted for |
|
Exceptional items before taxation |
3,371 |
|
|
|
Exceptional items before taxation |
|
3,371 |
|
|
|
|
|
|
Exceptional items after taxation |
|
3,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of exceptional items |
– |
|
|
|
Tax effect of exceptional items |
|
– |
|
|
|
|
|
|
Net finance costs excluding exceptional items |
|
855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exceptional items after tax attributable to non-controlling interests |
– |
|
|
|
Depreciation and amortisation excluding exceptional items |
|
6,201 |
|
|
|
|
|
|
Income tax expense on net finance costs |
|
(259) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exceptional items attributable to BHP shareholders |
|
3,371 |
|
|
Impairments of property, plant and equipment, financial assets and intangibles excluding exceptional items |
|
106 |
|
|
|
|
|
|
Profit after taxation excluding net finance costs and exceptional items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,993 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation attributable to non-controlling interests |
|
(3,193) |
|
|
Net finance costs excluding exceptional items |
|
855 |
|
|
|
|
|
|
Net assets at the beginning of the period |
52,218 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation expense excluding exceptional items |
|
9,388 |
|
|
|
|
|
|
Net debt at the beginning of the period |
12,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital employed at the beginning of the period |
|
65,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at the end of the period |
56,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt at the end of the period |
8,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital employed at the end of the period |
|
65,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average capital employed |
|
65,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To reach our KPIs |
|
Underlying attributable profit |
13,204 |
|
|
Underlying EBITDA |
32,947 |
|
|
Net operating cash flows |
21,778 |
|
|
Underlying return on capital employed |
|
26.1% |
||
Why do we use it? |
|
Underlying attributable profit allows the comparability of underlying financial performance by excluding the impacts of exceptional items.
|
|
|
|
|
Underlying EBITDA is used to help assess current operational profitability excluding the impacts of sunk costs (i.e. depreciation from initial investment). It is a measure that management uses internally to assess the performance of the Group’s segments and make decisions on the allocation of resources. |
|
|
|
|
Net operating cash flows provide insights into how we are managing costs and increasing productivity across BHP. |
|
|
|
Underlying return on capital employed is an indicator of the Group’s capital efficiency. It is provided on an underlying basis to allow comparability of underlying financial performance by excluding the impacts of exceptional items. |
|
|
27
Table of Contents
5.3 Financial results
The following table provides more information on the revenue and expenses of the Group in FY2026.
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Revenue1 |
|
|
58,760 |
|
|
|
51,262 |
|
|
|
55,658 |
|
Other income |
|
|
514 |
|
|
|
368 |
|
|
|
1,285 |
|
Expenses excluding net finance costs |
|
|
(35,979 |
) |
|
|
(32,319 |
) |
|
|
(36,750 |
) |
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
574 |
|
|
|
153 |
|
|
|
(2,656 |
) |
Profit from operations |
|
|
23,869 |
|
|
|
19,464 |
|
|
|
17,537 |
|
Net finance costs |
|
|
(1,455 |
) |
|
|
(1,111 |
) |
|
|
(1,489 |
) |
Total taxation expense |
|
|
(9,388 |
) |
|
|
(7,210 |
) |
|
|
(6,447 |
) |
Profit after taxation |
|
|
13,026 |
|
|
|
11,143 |
|
|
|
9,601 |
|
Attributable to non-controlling interests |
|
|
3,193 |
|
|
|
2,124 |
|
|
|
1,704 |
|
Attributable to BHP shareholders |
|
|
9,833 |
|
|
|
9,019 |
|
|
|
7,897 |
|
Profit after taxation attributable to BHP shareholders of US$9.8 billion includes an exceptional loss of US$3.4 billion and compares to US$9.0 billion, including an exceptional loss of US$1.1 billion in the prior period. The FY2026 exceptional loss comprises a US$2.3 billion impairment charge related to the Jansen project and US$1.1 billion relating to Samarco dam failure impacts.
The FY2025 exceptional loss comprised US$0.9 billion relating to Samarco dam failure impacts and US$0.2 billion associated with the transition of Western Australia Nickel (WAN) into temporary suspension.
> For more information on Exceptional items refer to Financial Statements note 3 ‘Exceptional items’
Revenue of US$58.8 billion increased by US$7.5 billion, or 15 per cent from FY2025. Revenue increased primarily due to higher average realised prices for copper, iron ore and steelmaking coal, partially offset by lower sales volumes at Escondida, driven by planned lower concentrator feed grade, and at Spence, due to ongoing challenges processing complex ore at the concentrator and the planned decline in stacked feed grade at the cathode plant.
> For information on our average realised prices and production of our commodities refer to OFR 7
Total expenses (excluding net finance costs) increased US$3.7 billion (11 per cent) to US$36.0 billion in FY2026, including a US$2.3 billion Jansen project impairment. Higher third-party commodity purchases (US$1.2 billion) driven by increased copper prices and higher purchase volumes at Antamina, depreciation from newly capitalised assets (US$0.7 billion), and inflationary impacts on wages, salaries and raw materials (US$0.6 billion combined) were the primary drivers. These increases were partially offset by favourable net inventory movements of US$1.5 billion.
Profit from equity accounted investments, related impairments and expenses increased US$0.4 billion to US$0.6 billion, driven by higher copper prices and production at Antamina.
> For more information on impairment charges refer to Financial Statements note 3 ‘Exceptional items’ and Financial Statements note 13 ‘Impairment of non-current assets’ respectively
Net finance costs of US$1.5 billion increased by US$0.3 billion or 31 per cent from FY2025 primarily due to the impact of inflation on the unwind of discounting expense associated with provisions.
> For more information on net finance costs refer to Financial Statements note 23 ‘Net finance costs’
Total taxation expense of US$9.4 billion increased by US$2.2 billion, or 30 per cent from FY2025 primarily reflecting tax on increased profits driven by higher commodity prices.
> For more information on income tax expense refer to Financial Statements note 6 ‘Income tax expense’
28
Table of Contents
Principal factors that affect Underlying EBITDA
The following table and commentary describe the impact of the principal factors1 that affected Underlying EBITDA for FY2026 compared with FY2025.
|
|
US$M |
|
|
Year ended 30 June 2025 |
25,978 |
|
|
|
Net price impact: |
|
|
|
|
|
Change in sales prices |
7,710 |
|
Higher average realised prices for copper, iron ore and steelmaking coal. |
|
Price-linked costs |
(399) |
|
Higher copper, iron ore and coal royalties in line with higher prices. |
|
|
7,311 |
|
|
Change in volumes |
(1,167) |
|
Escondida record material mined and concentrator throughput, along with improved recoveries driven by operational enhancements more than offset by lower volumes at Escondida, Spence and Copper SA, primarily due to planned grade decline and ongoing challenges with processing complex ore at Spence. Partially offset by higher volumes at NSWEC as a result of increased bypass coal due to mine sequencing and BMA strong operational performance at open-cut operations delivering the highest stripping volumes in five years and improved wet weather operating performance. WAIO delivered record production as a result of strong operational performance across the supply chain. |
|
Change in controllable cash costs |
|
|
|
|
|
Operating cash costs |
1,118 |
|
Escondida, Spence and Copper SA lower costs driven by inventory movements due to timing of shipments. Lower Escondida costs also reflect non-recurrence of one-off labour-related costs in FY2025. WAIO costs were lower due to net favourable inventory movements primarily driven by strong operational performance at the mines, partially offset by a drawdown of inventory at the Central Pilbara Hub. BMA and NSWEC costs were lower due to favourable net inventory movements reflecting continued focus on strengthening supply chain stability at BMA and prior period impacts of reduced truck availability and unfavourable weather conditions at NSWEC. |
|
Exploration and business development |
73 |
|
|
|
1,191 |
|
|
|
Change in other costs: |
|
|
|
|
|
Exchange rates |
(798) |
|
Impact of movements in the Australian dollar and Chilean peso against the US dollar. |
|
Inflation on costs |
(675) |
|
Impact of inflation on the Group’s cost base. |
|
Fuel, energy, and consumable price movements |
(209) |
|
Predominantly higher diesel prices. |
|
Non-cash |
96 |
|
Higher stripping capitalisation at Escondida reflecting phase of mine plan. |
|
|
(1,586) |
|
|
Change in other: |
|
|
|
|
Asset sales |
100 |
|
|
|
Ceased and sold operations |
476 |
|
Primarily driven by transition of WAN into temporary suspension in December 2024. |
|
Other |
644 |
|
Includes higher profits from Antamina driven by increased copper prices. |
|
|
Year ended 30 June 2026 |
32,947 |
|
|
29
Table of Contents
Cash flow
The following table provides a summary of the Consolidated Cash Flow Statement contained in Financial Statements 1.4, excluding the impact of foreign currency exchange rate changes on cash and cash equivalents.
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Net operating cash flows |
|
|
21,778 |
|
|
|
18,692 |
|
|
|
20,665 |
|
Net investing cash flows |
|
|
(12,011 |
) |
|
|
(13,350 |
) |
|
|
(8,762 |
) |
Net financing cash flows |
|
|
(3,280 |
) |
|
|
(5,971 |
) |
|
|
(11,669 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
|
6,487 |
|
|
|
(629 |
) |
|
|
234 |
|
Net operating cash inflows of US$21.8 billion increased by US$3.1 billion. This is primarily due to higher average realised copper, iron ore and steelmaking coal prices generating higher profits, partially offset by unfavourable foreign exchange movements, inflationary impacts on the Group’s cost base and working capital movements across the Group.
Net investing cash outflows of US$12.0 billion decreased by US$1.3 billion. This decrease is primarily due to the non-recurrence of the US$2.1 billion FY2025 acquisition of a 50 per cent share in the Vicuña joint venture, partially offset by higher capital expenditure of US$0.5 billion and proceeds on the divestment of Carajás of US$0.2 billion.
> For more information on the acquisition of Vicuña refer to Financial Statements note 29 ‘Investments accounted for using the equity method’
Net financing cash outflows of US$3.3 billion decreased by US$2.7 billion reflecting proceeds of US$4.3 billion from the Antamina silver streaming agreement with Wheaton Precious Metals International Ltd, partially offset by higher dividends paid of US$0.8 billion, and higher repayments of interest bearing liabilities of US$0.7 billion.
> For more information refer to Financial Statements note 21 ‘Net debt’
Underlying return on capital employed (ROCE) of 26.1 per cent increased by 5.5 percentage points (FY2025: 6.6 percentage point decrease) primarily due to the increase in profit after taxation excluding net finance costs and exceptional items of US$4.3 billion, which was mostly driven by higher realised commodity prices during FY2026. This was partially offset by higher average capital employed.
> For more information on ROCE refer to OFR 8
The comparisons for the year ended 30 June 2025 to 30 June 2024 in connection with Financial results, Principal factors that affect Underlying EBITDA and Cash flow have been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
5.4 Debt and sources of liquidity
Our policies on debt and liquidity management have the following objectives:
Interest bearing liabilities, net debt and gearing
At the end of FY2026, Interest bearing liabilities were US$27.1 billion (FY2025: US$24.5 billion) and Cash and cash equivalents were US$18.5 billion (FY2025: US$11.9 billion), with Net debt of US$8.7 billion (FY2025: US$12.9 billion). The decrease in Net debt of US$4.2 billion is primarily due to US$21.8 billion operating cash flows combined with US$4.3 billion proceeds from streaming arrangements, partially offset by US$10.3 billion capital and exploration expenditure, US$9.1 billion of dividend payments and US$2.0 billion of Samarco settlement obligation payments. Gearing, which is the ratio of Net debt to Net debt plus Net assets, was 13.4 per cent at 30 June 2026, compared with 19.8 per cent at 30 June 2025.
> For more information on Net debt and gearing refer to Financial Statements note 21 ‘Net debt’ and OFR 8
Gross debt increased by US$2.6 billion to US$27.1 billion as at 30 June 2026. The increase reflects the issuance of €1.4 billion Euro bonds in August 2025 and US$1.5 billion US bonds in September 2025 as well as entering a US$850 million five-year bank loan in January 2026, offset by the repayment of US$1.0 billion of 4.875 per cent USD senior notes that matured in February 2026 and US$323 million of 6.42 per cent USD senior notes that matured in March 2026.
30
Table of Contents
At the subsidiary level, Escondida repaid US$40 million of debt.
The following table expands on the net debt, to provide more information on the cash and non-cash movements in FY2026.
|
|
2026 |
|
|
2025 |
|
||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
||
Net debt at the beginning of the period |
|
|
(12,924 |
) |
|
|
(9,120 |
) |
Net operating cash flows |
|
|
21,778 |
|
|
|
18,692 |
|
Net investing cash flows |
|
|
(12,011 |
) |
|
|
(13,350 |
) |
Net financing cash flows |
|
|
(3,280 |
) |
|
|
(5,971 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
|
6,487 |
|
|
|
(629 |
) |
Carrying value of interest bearing liability net proceeds |
|
|
(1,594 |
) |
|
|
(2,454 |
) |
Carrying value of debt related instruments settlements |
|
|
22 |
|
|
|
147 |
|
Carrying value of cash management related instruments proceeds |
|
|
(96 |
) |
|
|
(195 |
) |
Fair value change on hedged loans1 |
|
|
367 |
|
|
|
(263 |
) |
Fair value change on hedged derivatives1 |
|
|
(292 |
) |
|
|
290 |
|
Foreign currency exchange rate changes on cash and cash equivalents |
|
|
152 |
|
|
|
24 |
|
Lease additions (excluding leases associated with index-linked freight contracts) |
|
|
(638 |
) |
|
|
(547 |
) |
Other |
|
|
(178 |
) |
|
|
(177 |
) |
Non-cash movements |
|
|
(589 |
) |
|
|
(673 |
) |
Net debt at the end of the period |
|
|
(8,694 |
) |
|
|
(12,924 |
) |
Funding sources
In August 2025, the Group issued two tranches of EUR bonds comprising €800 million 3.18 per cent bonds due CY2031 and €600 million 3.643 per cent bonds due CY2035. The EUR bonds were issued by BHP Billiton Finance Limited, a wholly-owned finance subsidiary of BHP Group Limited, and are fully and unconditionally guaranteed by BHP Group Limited.
In September 2025, the Group issued two tranches of USD bonds comprising US$500 million 5.00 per cent bonds due CY2036 and US$1.0 billion 5.750 per cent bonds due CY2055. The USD bonds were issued by BHP Billiton Finance (USA) Limited, a wholly-owned finance subsidiary of BHP Group Limited, and are fully and unconditionally guaranteed by BHP Group Limited.
In January 2026, the Group entered into a US$850 million five-year term loan. The borrower is BHP Billiton Finance Limited, a wholly-owned subsidiary of BHP Group Limited, and is fully and unconditionally guaranteed by BHP Group Limited.
Our Group-level borrowing facilities are not subject to financial covenants. Certain specific financing facilities in relation to specific assets are the subject of financial covenants that vary from facility to facility, but this would be considered normal for such facilities.
In addition to the Group’s uncommitted debt issuance programs, we hold the following committed standby facility:
|
|
Facility |
|
|
Drawn |
|
|
Undrawn |
|
|
Facility |
|
|
Drawn |
|
|
Undrawn |
|
||||||
|
|
2026 |
|
|
2026 |
|
|
2026 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
||||||
|
|
US$M |
|
|
US$M |
|
|
US$M |
|
|
US$M |
|
|
US$M |
|
|
US$M |
|
||||||
Revolving credit facility1 |
|
|
5,500 |
|
|
|
– |
|
|
|
5,500 |
|
|
|
5,500 |
|
|
|
– |
|
|
|
5,500 |
|
Total financing facility |
|
|
5,500 |
|
|
|
– |
|
|
|
5,500 |
|
|
|
5,500 |
|
|
|
– |
|
|
|
5,500 |
|
31
Table of Contents
> For more information on the maturity profile of our debt obligations and details of our standby and support agreements refer to Financial Statements note 24 'Financial risk management'
Information in relation to our material off-balance sheet arrangements, principally contingent liabilities, commitments for capital expenditure and commitments under leases at 30 June 2026 is provided in Financial Statements note 11 ‘Property, plant and equipment’, Financial Statements note 22 ‘Leases’ and Financial Statements note 32 ‘Contingent liabilities’, respectively
In our opinion, working capital is sufficient for our present requirements. The Group’s Moody’s credit rating has remained at A1/P-1 outlook stable (long-term/short-term). The Group’s Fitch credit rating has remained at A/F1 outlook stable (long-term/short-term). Credit ratings are forward-looking opinions on credit risk. Moody’s and Fitch’s credit ratings express the opinion of each agency on the ability and willingness of BHP to meet its financial obligations in full and on time. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by an assigning rating agency. Any credit rating should be evaluated independently of any other information.
Dividends
Our dividend policy provides for a minimum 50 per cent payout of Underlying attributable profit (Continuing operations) at every reporting period. The minimum dividend payment for the second half of FY2026 was US$0.69 per share. The Board determined to pay an additional amount of US$0.30 per share, taking the final dividend to US$0.99 per share (US$5.0 billion). In total, cash dividends of US$8.7 billion (US$1.72 per share) have been determined for FY2026.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
32
Table of Contents
6.1 Risk Factors
Our risk factors are described below and may occur as a result of our activities globally. The activities of our non-operated joint ventures, third parties engaged by BHP and stakeholders through our value chain may also give rise to financial, legal and reputational risks to BHP. These risks, individually or collectively, could threaten our strategy, business model, future performance, solvency or liquidity and reputation. They could also materially and adversely affect the health and safety of our people or members of the public, the environment, communities, or the interests of our partners and stakeholders, which could in each case lead to litigation, regulatory investigations or enforcement actions (including class actions or actions arising from contractual, legacy or other liabilities associated with divested assets), or a loss of partner, stakeholder and/or investor confidence. References to ‘financial performance’ include our share price, financial condition and liquidity, which may be adversely affected by factors such as decreased profitability or increased operating costs, capital allocation, remediation costs or contingent liabilities, or insufficient insurance coverage.
We group our risk factors under three risk themes: operational risks, strategic risks and sustainability-related risks. Some risk factors disclosed in our FY2025 Annual Report have been reframed to align with these themes, while our previous risk factors on low-carbon transition and business resilience are now discussed throughout other risk factors to better reflect their interconnectivity with BHP's broader risk profile. The potential risks, impacts to BHP and management's approach for each risk factor below are described at a high level only. The potential opportunities for our risk themes are also not exhaustive. BHP may also be exposed to risks that we currently believe to be immaterial, or which are newly developing or changing such that there is not enough information to assess their materiality or applicability to our business, in each case which may materially affect our business if they occur.
BHP does not manage non-operated joint ventures or third parties, but remains exposed to risks from the activities of those parties. BHP seeks to oversee and manage the financial, legal and reputational risks to BHP related to its investments in non-operated joint ventures and relationships with third parties.
Operational risks
Operational risks encompass risks associated with events that may impede operational continuity, undermine our business resilience or result in significant adverse safety or other impacts to our people, communities, the environment or our ability to generate returns. Managing operational risks is essential to sustaining safe, reliable and resilient operations across our global portfolio and delivering on our strategy.
Risk factor: Operational events
Our activities inherently involve a broad range of operational event risks that may harm our people and assets, communities, other stakeholders and/or the environment. Effective management of operational event risks is critical to maintaining operational continuity and performance, and our licence to operate.
Potential risks
33
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Potential impacts to BHP
Risk factor: Key infrastructure failure
We rely on various equipment, infrastructure and transportation routes to support the safe and reliable operation of our assets and the delivery of our products to customers. This includes tailings storage facilities, water and power supply, processing plants, rail networks, ports and other logistics infrastructure, much of which is large scale, long life and, in some cases, shared with third parties. Failure, damage or prolonged unavailability of key infrastructure or transportation routes, including due to ageing assets, operational events, third-party disruption or climate-related physical risk impacts, could result in harm to people and the environment, production and sales disruptions, and increased costs. Additionally, insurance may not be available on commercially reasonable terms or may not fully cover losses from risks to our business, including those posed by our other risk factors.
Potential risks
34
Table of Contents
Potential impacts to BHP
Risk factor: Cybersecurity
Our business and operational processes are increasingly dependent on the technology we use to support delivery of our current and future operational, financial and social objectives. This growing dependence correspondingly elevates BHP's exposure to cybersecurity risks, which continue to evolve in frequency, scale and sophistication. A cybersecurity incident could lead to loss or disclosure of commercial or personal data, as well as physical safety, infrastructure or environmental impacts, or production or commercial disruptions (for example, due to a cybersecurity incident resulting in malfunction or shutdown of equipment). We have experienced cybersecurity threats in the past and may do so in the future. As our information and operational systems expand, and cybersecurity incidents experienced by businesses globally increase, our exposure to these risks may continue to grow. Some of our partners and suppliers have also experienced cybersecurity incidents, as evidenced by public disclosures, and may continue to experience similar threats in the future, underlining the need for effective cybersecurity resilience across our value chain.
Potential risks
Potential impacts to BHP
35
Table of Contents
Strategic risks
Strategic risks encompass risks associated with changes in global trade, longer-term economic trends, geopolitical shifts and evolving stakeholder expectations, and influence our ability to position and shape our portfolio. Strategic risks may impact our ability to deliver on our strategy, optimise our portfolio and access key markets.
Risk factor: Portfolio strategy
In pursuit of our strategy, we target a portfolio of quality assets in attractive commodities and relevant growth options. We review and adjust our strategy and make changes to our portfolio. Examples of recent portfolio actions include our acquisition of OZ Minerals in FY2023 and the formation of our non-operated joint venture, Vicuña Corp, in FY2025. Our ability to identify shifts in commodity attractiveness, execute timely acquisitions and divestments, and mature organic growth options is critical to pursuing our portfolio strategy, and failure to do so could result in a reduced ability to achieve expected commercial objectives from our assets or investments. Delivery of major projects and growth options is important to our strategy and long-term financial performance. Large projects are complex, capital intensive and often depend on government approvals, partner alignment, long-lead infrastructure and the timely availability of labour, equipment, energy and water. Optimising our portfolio also increasingly relies on our ability to adopt and scale advanced technologies, including AI, automation and lower greenhouse gas (GHG) emissions technologies, to enable accurate insights, efficient use of capital and improved decision-making.
Potential risks
36
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Potential impacts to BHP
Risk factor: Access to markets
Our ability to deliver the commodities we produce to customers worldwide is critical to our business model. As a major supplier of iron ore, copper, coal and other commodities, we are increasingly exposed to a more volatile and fragmented geopolitical environment, reinforcing the need to strengthen supply chain resilience across both inbound and outbound routes. We face heightened risks from duties, tariffs, import and export controls and other trade barriers impacting our products and those of our customers. Shifts in policy or legislation, trade agreements, contractual obligations or geopolitical conditions could disrupt physical and logistical pathways for selling our products into our key customer markets, which in turn could affect our sales volumes or require us to accept lower realised prices. Concentrated customer bases, shifts in geopolitical conditions and the challenges of entering new or more complex regulatory markets can amplify commercial exposure and ultimately impact the financial outcomes of our commodity sales.
Potential risks
37
Table of Contents
Potential impacts to BHP
Sustainability-related risks
Risks associated with our activities that fail to meet stakeholder expectations, resulting in significant adverse impacts on our people, communities, the environment or our business. Sustainability-related risks may also influence or exacerbate our strategic and operational risks, particularly over the medium to long term.
Risk factor: Community and Indigenous peoples
The long-term viability of our business is closely connected to the wellbeing and satisfaction of the communities and Indigenous peoples where we have a presence. At any stage of the asset lifecycle, our activities and operations may have or be perceived to have significant adverse impacts on communities, Indigenous peoples, the environment and other stakeholders. In these circumstances, we may fail to meet the evolving expectations of our partners and stakeholders (including investors, governments, employees, suppliers, customers, Indigenous peoples and other community members) whose support is needed to realise our strategy and purpose. Loss of partner or stakeholder support could lead to delays to growth projects, impacts to operational continuity, reputational damage and financial loss.
Potential risks
Potential impacts to BHP
38
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Risk factor: Environment
At all stages of the asset lifecycle, we depend on and interact with the natural environment. This includes reliance on ecosystem services such as water availability and quality, land condition and broader ecosystem functioning. Our activities may have significant adverse impacts on the environment, including land, water, air, biodiversity and ecosystems. We may also fail to meet increasing, complex and changing regulatory and stakeholder expectations in relation to the management and stewardship of the natural environment. This could lead to loss of partner or stakeholder support or regulatory approvals, adjustments to our business plans or strategy, increased costs (including unanticipated environmental liabilities) and enforcement action or litigation. Environmental impacts may also have consequences for local communities and Indigenous peoples, including impacts on access to, or the condition of, land, water and other environmental values that support livelihoods, cultural practices and community wellbeing. Additionally, climate-related and nature-related risks are interconnected and may amplify one another – for example, where climate impacts intensify pressures on ecosystems, water resources or biodiversity, or where ecosystem degradation reduces resilience to climate variability and extreme events.
Potential risks
> For more information on BHP's climate-related physical risks refer to Sustainability Report
Potential impacts to BHP
39
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Risk factor: Ethics and compliance
BHP, our people and our third-party partners and providers (including suppliers) may engage or be alleged to engage in conduct that deviates from the standard required or expected of us. A failure to act ethically or legally may result in a breach of our legal obligations or the expectations of our stakeholders, leading to negative publicity, regulatory enforcement action, litigation or other civil or criminal proceedings. Impacts may be amplified if our senior leaders fail to uphold BHP’s values or address actual or alleged misconduct in a way that is consistent with our commitments or stakeholder expectations. Risks and impacts are also heightened by increasing geopolitical tensions, the complex and continuously evolving legal and regulatory frameworks that apply to the jurisdictions where we operate, and conflicting obligations under different national laws.
Potential risks
Potential impacts to BHP
6.2 Management of risks
How we manage risk
Risk management helps us to protect and create value. It’s central to the achievement of our purpose and strategic objectives.
We believe that effective risk management requires a consolidated view of BHP’s full exposure. We therefore apply a single framework (known as the Risk Framework) to all risks and opportunities1. This supports the prioritisation of activity across our business. For more information about BHP’s risk management governance structure, refer to the Corporate Governance Statement.
Our Risk Framework2
40
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Footnotes
Management’s approach to certain risks
Operational risks
Potential opportunities
The management of operational risks also presents opportunities to strengthen our business' resilience, stakeholder trust, talent attraction and access to capital. Further investments in automation, predictive analytics and advanced cybersecurity solutions may help to reduce our people's exposure to higher-risk activities and enhance productivity. Our focus on innovation and collaboration across industry standards supports safer operations and improved reliability.
FY2026 insights
During FY2026, our overall exposure to operational risks remained broadly stable, excluding risks stemming from elevated geopolitical risk factors. External conditions have elevated certain risk settings, including the evolving cybersecurity threat landscape which continues to increase, and risks associated with the conflicts in the Middle East, including the potential for disruptions to supply chains. These and other operational risks continue to influence operational risk complexity and inform our management approach.
41
Table of Contents
Operational events
Management’s approach
We continue to focus on improving our management of operational event risks, including through the planning, design, construction and maintenance of our mines, supported by mandatory minimum performance requirements for safety and risk management. Our approach includes implementing monitoring systems and other technical controls and emergency response protocols, as well as using technology to reduce exposure of our people to high-risk activities. We also collaborate across industry and with technology partners to strengthen resilience and continuously improve operational reliability.
Key infrastructure failure
Management’s approach
We focus on preventing and mitigating failures through the planning, design, construction, operation, maintenance and monitoring of key infrastructure, as well as working with third parties to ensure continued access to shared infrastructure and transportation routes. Our approach includes our mandatory minimum performance requirements for asset integrity and water and tailings storage facilities, supported by inspections, technical reviews, audits and other assurance activities, emergency preparedness and response plans, and a framework for business continuity plans. We also incorporate consideration of future climate projections into risks associated with key infrastructure failure through ongoing assessment of climate-related physical risks.
> For more information on how climate-related physical risks are assessed and our approach to integration into asset design and management refer to Sustainability Report 3 Strategy for managing climate-related risks and opportunities
Cybersecurity
Management’s approach
We continue to employ measures designed to protect against, detect and respond to cybersecurity incidents. We keep abreast of potential cybersecurity risks and new methodologies to combat them. We regularly assess and update critical cybersecurity controls and their effectiveness in line with the evolving threat landscape. Collaboration with partners, vendors, government agencies and industry groups also supports us to respond to the fast-changing cybersecurity threat landscape.
> For more information on our operational risks refer to OFR 1, OFR 9.5, OFR 9.10, Sustainability Report and Additional Information 9.8
Strategic risks
Potential opportunities
The global landscape also presents opportunities and our current portfolio of quality assets in attractive commodities positions us well to capitalise on these. By monitoring macroeconomic, societal, geopolitical, climate and policy developments and trends, we may be able to identify opportunities to execute our strategy in ways that enhance value and provide a competitive advantage. This could include opportunities to strengthen our portfolio, accelerate our growth through organic and inorganic options, exit non-core or declining assets or commodities, reallocate capital, enhance existing or develop new products, enter into new markets or expand our presence in existing markets, or develop strategic partnerships.
FY2026 insights
During FY2026, our exposure to strategic risks increased slightly as our operating environment continued to be shaped by global dynamics. Geopolitical volatility, including US–China trade tensions and escalating conflicts and instability in parts of the Middle East, increased uncertainty across global markets. These dynamics heighten the risk of unilateral sovereign actions, trade and investment restrictions, and policy intervention, reinforcing value-chain vulnerabilities and contributing to commodity price volatility. Tariffs, trade restrictions and weather-related disruptions contributed to market volatility, while evolution of steel and iron ore markets may continue to do so. These factors, as well as energy transition policies, resource security considerations and evolving ESG expectations, continued to influence our portfolio decisions.
Portfolio strategy
Management’s approach
We continue to develop strategies, processes and frameworks to protect and shape our portfolio and to assist in delivering ongoing returns to shareholders, including through planning and monitoring of internal and external settings, and establishing capital allocation and liquidity frameworks that are designed to enable us to pursue and consider opportunities in new markets.
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Table of Contents
Access to markets
Management’s approach
We actively monitor and assess key markets and geopolitical and macroeconomic trends and developments, with the aim of optimising our portfolio and mitigating disruptions to our ability to access key markets.
> For more information on our strategic risks refer to OFR 2, OFR 3, OFR 9.4, OFR 9.10 and Sustainability Report
Sustainability-related risks
Potential opportunities
Strong environmental and social performance, stakeholder engagement and ethical conduct may differentiate BHP from competitors, support access to capital and talent, and enhance our ability to operate, grow and partner in the jurisdictions in which we operate. Responsible stewardship of the environment may also strengthen environmental and industry resilience, supporting long-term value creation for our stakeholders.
FY2026 insights
During FY2026, our overall exposure to sustainability-related risks increased. Evolving sustainability related policy, regulatory and legal landscapes across our operating jurisdictions, together with changing stakeholder expectations, continued to shape our risk management approach as we progressed relevant initiatives. These include our 2030 Healthy environment goal and support for the community at New South Wales Energy Coal as we continue to progress our plan to cease mining at Mt Arthur Coal mine by the end of FY2030. As a global resources company, we also continued to monitor the increased number of sanctions globally to support compliance with applicable laws.
Community and Indigenous peoples
Management’s approach
We have adopted community, social value and human rights policies, standards and procedures that guide stakeholder engagement, respect the rights of Indigenous peoples and host communities, and integrate social value into decision-making, with the aim of strengthening social performance, trust and community resilience.
Environment
Management’s approach
We have adopted environmental policies, standards and mandatory minimum performance requirements that set out our approach to managing environmental risks across the asset lifecycle, including nature, climate, closure and legacy management, with the aim of strengthening environmental performance and operational resilience over time.
Ethics and compliance
Management’s approach
Our Charter describes our purpose and values and sets the ‘tone from the top’. We seek to design and implement internal policies, standards, systems and processes (including internal investigations) for governance and compliance to support an appropriate culture and prioritise respectful behaviours at BHP.
> For more information on our sustainability-related risks refer to OFR 9 and Sustainability Report
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Table of Contents
Management believes the following information presented by commodity provides a meaningful indication of the underlying financial and operating performance of the assets, including equity accounted investments, of each reportable segment. Information relating to assets that are accounted for as equity accounted investments is shown to reflect BHP’s share, unless otherwise noted, to provide insight into the drivers of these assets.
> For more information as to the statutory determination of our reportable segments, refer to Financial Statements note 1 ‘Segment reporting’
Unit costs is one of our non-IFRS financial measures used to monitor the performance of our individual assets and is included in the analysis of each reportable segment.
> For the definition and method of calculation of our non-IFRS financial measures, including Underlying EBITDA and Unit costs, refer to OFR 8
7.1 Copper
Detailed below is financial and operating information for our Copper assets comparing FY2026 to FY2025.
Year ended 30 June |
|
2026 |
|
|
2025 |
|
||
Revenue |
|
|
29,031 |
|
|
|
22,530 |
|
Underlying EBITDA |
|
|
18,187 |
|
|
|
12,326 |
|
Net operating assets |
|
|
43,469 |
|
|
|
40,884 |
|
Capital expenditure |
|
|
4,556 |
|
|
|
4,392 |
|
Underlying ROCE |
|
|
26 |
% |
|
|
17 |
% |
Total copper production (kt) |
|
|
1,953 |
|
|
|
2,017 |
|
Average realised prices |
|
|
|
|
|
|
||
Copper (US$/lb) |
|
|
5.74 |
|
|
|
4.25 |
|
Unit costs |
|
|
|
|
|
|
||
Escondida (US$/lb) |
|
|
1.07 |
|
|
|
1.19 |
|
Spence (US$/lb) |
|
|
2.15 |
|
|
|
2.07 |
|
Copper South Australia (US$/lb) |
|
|
0.32 |
|
|
|
1.18 |
|
Key drivers of Copper’s financial results
Price overview
Spot copper prices on average were 26 per cent higher in FY2026, with the second half of FY2026 experiencing increases of nearly 40 per cent as copper moved to >US$13,000/t (US$5.90/lb). The copper price continues to be supported by strong fundamentals on the demand and supply side, driven by a compelling narrative for copper-intensive sectors, particularly electrification and data centres and the risk of future supply deficits.
Global demand is expected to grow at around 2.8 per cent in CY2026, a little slower than previously expected due to the impact of the Middle East conflict, but at a greater pace than the 2.1 per cent growth experienced in CY2025. Multiple countries have seen copper consumption negatively impacted due to the Middle East conflict, this includes indirect impacts due to the integrated nature of global supply-chains – for example, a lack of gas to heat copper for fabrication, or a lack of plastics for wire insulation. In the United States however, copper demand growth is accelerating as unprecedented investment into data centres boosts requirements for power networks, cabling, and electrical equipment.
Recovery in production from previously disrupted mining operations and new supply additions are expected to lead to solid production growth. However, given the robust demand outlook, the market is likely to remain tight and require additional copper units to remain in balance. These units could be supplied through increased scrap recovery and novel sources, such as pyrites and gold concentrates, while substitution and thrifting act to reduce the quantity of copper required. However, supply risks remain, with further disruptions, the slow development pipeline, grade declines, trade barriers, fragmented scrap supply-chains, and rising scrap collection costs all substantial headwinds.
Copper fundamentals remain attractive. Demand is expected to grow from ~34 Mtpa today to >50 Mtpa by CY2050, driven by traditional economic growth (home building, electrical equipment and household appliances), energy transition (renewables and
44
Table of Contents
electric vehicles) and digital (artificial intelligence and data centres). Current expectations are that copper demand associated with investment in data centres could grow around sixfold between 2024 and 2050, up to around 3 Mtpa.
Operational and project development challenges will place upward pressure on industry costs, potentially resulting in a higher and steeper copper cost curve.
Production
Total Copper production for FY2026 decreased by 3 per cent to 1,953 kt.
Escondida production decreased by 3 per cent to 1,261 kt due to planned lower concentrator feed grade of 0.90 per cent (FY2025: 1.02 per cent). This was partially offset by continued strong operational performance and productivity improvements, with record material mined, record concentrator throughput and improved recoveries, driven by operational enhancements, including the introduction of new reagents. Cathode production increased, supported by higher Full SaL recoveries and improved operational performance enabling additional sulphide leach pad irrigation.
Pampa Norte, consisting of Spence and Cerro Colorado, copper production decreased by 21 per cent to 213 kt. Spence production decreased due to ongoing challenges with processing complex ore at the concentrator and the planned decline in stacked feed grade at the cathode plant, as we progress deeper into the hypogene mineralisation of the ore body. The Spence Concentrator Upgrade Recovery project, which upgrades the flotation circuit to increase residence time and improve recoveries, was sanctioned in June 2026, with first production expected during FY2028. Once commissioned, we expect the project will allow us to more effectively manage Spence’s ore complexity and variability. The Spence Chalcopyrite Leaching project was also sanctioned in June 2026, which includes the implementation of BHP’s sulphide leaching technology, Simple Approach to Leaching 2, to enable processing of hypogene ores and to utilise latent capacity in the cathode infrastructure, with first production expected in CY2028.
Copper South Australia copper production increased by 2 per cent to 321 kt due to strong operational performance, including record material mined and ore milled, as well as the weather-related power outage in the prior period which impacted FY2025 production. Olympic Dam achieved a 20-year copper production record, while Prominent Hill benefited from higher feed grades. Carrapateena achieved record material mined and milled, which partially offset the impact of planned lower grades. By-product volumes were also strong with record gold production, including record refined gold, capitalising on strong prices, while uranium production also increased 16 per cent.
Antamina copper production increased by 27 per cent to a financial year record of 152 kt as a result of higher feed grades and improved operational performance. Zinc production decreased to 96 kt due to lower feed grades.
Financial results
Copper revenue increased by US$6.5 billion to US$29.0 billion in FY2026 mainly due to higher average realised copper prices.
Underlying EBITDA for Copper increased by US$5.9 billion to US$18.2 billion, with higher prices the primary driver. Price impacts, net of price-linked costs, increased Underlying EBITDA by US$6.7 billion, partly offset by a US$1.4 billion decrease from lower volumes.
Controllable cash costs improved by US$0.7 billion, primarily due to favourable inventory movements from the timing of shipments and the non-recurrence of one-off labour-related costs in FY2025.
Inflation and unfavourable foreign exchange reduced Underlying EBITDA by US$0.6 billion.
Other movements increased Underlying EBITDA by US$0.3 billion, primarily reflecting improved Antamina profitability driven by higher copper prices and increased production.
Outlook
Copper production for FY2027 is expected to be between 1,650 and 1,800 kt predominately as a result of the forecast grade decline at Escondida.
Escondida production for FY2027 is expected to be between 1,000 and 1,100 kt. Concentrator feed grade for FY2027 is expected to be ~0.70 per cent.
Spence production for FY2027 is expected to be between 210 and 230 kt as we continue to manage ore variability via blending at the concentrator before the concentrator upgrades come online in FY2028.
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Copper South Australia production of between 290 and 320 kt is expected in FY2027, as we plan to increase anode inventory in FY2027 to supply the refinery during the (six-yearly) smelter campaign maintenance scheduled for the first half of FY2028.
Antamina production for FY2027 is expected to be between 120 and 140 kt for copper and between 35 and 55 kt for zinc due to planned lower feed grades.
Escondida unit costs in FY2027 are expected to be between US$1.20 and US$1.50 per pound (at an exchange rate of USD/CLP 890).
Spence unit costs in FY2027 are expected to be between US$2.40 and US$2.70 per pound (at an exchange rate of USD/CLP 890).
Copper South Australia unit costs in FY2027 are expected to be between US$0.30 and US$0.80 per pound (at an exchange rate of AUD/USD 0.70 and prices for by-products of gold US$4,300/oz and uranium US$80/lb.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
7.2 Iron Ore
Detailed below is financial and operating information for our Iron Ore assets comparing FY2026 to FY2025.
Year ended 30 June |
|
2026 |
|
|
2025 |
|
||
Revenue |
|
|
23,883 |
|
|
|
22,919 |
|
Underlying EBITDA |
|
|
14,529 |
|
|
|
14,396 |
|
Net operating assets |
|
|
17,119 |
|
|
|
15,252 |
|
Capital expenditure |
|
|
3,048 |
|
|
|
2,617 |
|
Underlying ROCE |
|
|
55 |
% |
|
|
64 |
% |
Total iron ore production (Mt) |
|
|
265 |
|
|
|
263 |
|
Average realised prices |
|
|
|
|
|
|
||
Iron ore (US$/wmt, FOB) |
|
|
84.56 |
|
|
|
82.13 |
|
Unit costs |
|
|
|
|
|
|
||
WAIO (US$/t) |
|
|
19.66 |
|
|
|
18.56 |
|
Key drivers of Iron Ore’s financial results
Price overview
Iron ore prices (Argus 62% Fe iron ore fines CFR China) averaged US$105/dmt in FY2026, up 4 per cent, supported by resilient Chinese demand and elevated cost support from higher energy and freight costs due to the Middle East conflict. In response to the changing quality of mainstream mid-grade iron ore fines, Price Reporting Agencies (PRAs) introduced new 61% Fe indices. The Argus 61% Fe index averaged US$104/dmt in the second half of FY2026, up 3 per cent from the first half of FY2026.
Chinese iron ore demand remains resilient, with seaborne iron ore net imports increasing 6 per cent (an annualised rate of ~1.2 Btpa in the second half of FY2026) in response to weaker domestic iron ore supply and scrap. Domestic iron ore production has been constrained by environmental and safety restrictions, while scrap availability is limited amid subdued construction activity. Elsewhere, iron ore demand was more mixed, with consumption continuing to expand in India and emerging Asian economies, following the commissioning of new Blast Furnace capacity. Developed Asian economies and Europe also showed signs of recovery, the latter driven by the Carbon Border Adjustment Mechanism (CBAM) incentivised domestic steel production. In contrast, imports into the Middle East fell sharply, although a gradual recovery is likely if conflict-related tensions ease.
Looking ahead, we maintain our view that China’s real steel production will plateau around the 1 Bt level for the rest of the decade. In the medium-term, scrap will play an increasingly important role in steelmaking and result in a declining profile for Chinese pig iron production. In the long run, the seaborne iron ore trade is likely to undergo steady diversification as demand grows in emerging economies.
India, historically a major iron ore exporter, saw imports grow to 12 Mt in CY2025 and this has continued into CY2026 with imports rising further. This trend reinforces the view that India is undergoing a structural shift towards net imports, as domestic iron ore supply lagging behind steel capacity growth – with some market expectations of imports above 80 Mt by 2030.
46
Table of Contents
Seaborne supply is expected to rise as production from existing supply basins normalises and new capacity comes online, including Simandou in Guinea. However, declining grades and resource depletion will require significant investment from incumbent producers simply to maintain current output and could support future fundamentals.
Production
Total Iron Ore production increased by 1 per cent to a record 265 Mt.
WAIO delivered record production increasing by 0.3 Mt to 257 Mt as a result of strong operational performance across the supply chain. WAIO achieved record material mined (up 6 per cent), with South Flank exceeding annual nameplate capacity. A drawdown of inventory at the Central Pilbara Hub (South Flank and Mining Area C) supported record volumes and provided value chain resilience. At port, Car Dumper (CD) performance improved following the completion of the CD3 rebuild in Q1 FY2026 (4.3 Mt impact, 100 per cent basis), which alongside the planned reduction in tie-in activity on the multi-year Rail Technology Program (RTP1) and combined with operational improvements across the rail network, generated increased efficiency, record inflow and record shipments (100 per cent basis).
Samarco production increased by 25 per cent to 7.8 Mt (BHP share), due to better than planned concentrator performance.
Financial results
Total Iron Ore revenue increased by US$1.0 billion to US$23.9 billion in FY2026, primarily due to higher average realised prices.
Underlying EBITDA for Iron Ore increased by US$0.1 billion to US$14.5 billion. Price impacts, net of price-linked costs, increased Underlying EBITDA by US$0.4 billion and controllable cash costs improved by US$0.2 billion, reflecting net favourable inventory movements primarily driven by strong mine performance, partially offset by an inventory drawdown at the Central Pilbara Hub. These benefits were largely offset by a US$0.5 billion impact from inflation and unfavourable foreign exchange.
Outlook
WAIO production for FY2027 is expected to be between 253 and 264 Mt (286 and 298 Mt on a 100 per cent basis) and includes the renewal of CD4 in the first half of FY2027.
WAIO unit costs in FY2027 are expected to be between US$20.25 and US$21.75 per tonne (based on an exchange rate of AUD/USD 0.70), subject to movements in the Singapore 10ppm Gasoil benchmark. Every US$10/bbl change in the benchmark price is estimated to have an ~US$0.15 per tonne impact on unit costs.
Samarco production for FY2027 is expected to be between 7.5 and 8.0 Mt.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
7.3 Coal
Detailed below is financial and operating information for our Coal assets comparing FY2026 to FY2025.
Year ended 30 June |
|
2026 |
|
|
2025 |
|
||
Revenue |
|
|
5,590 |
|
|
|
5,046 |
|
Underlying EBITDA |
|
|
832 |
|
|
|
573 |
|
Net operating assets |
|
|
6,104 |
|
|
|
6,357 |
|
Capital expenditure |
|
|
415 |
|
|
|
525 |
|
Underlying ROCE |
|
|
0 |
% |
|
|
(1 |
)% |
Total steelmaking coal production (Mt) |
|
|
18.6 |
|
|
|
18.0 |
|
Total energy coal production (Mt) |
|
|
16.4 |
|
|
|
15.0 |
|
Average realised prices |
|
|
|
|
|
|
||
Steelmaking coal (US$/t) |
|
|
210.21 |
|
|
|
193.82 |
|
Energy coal (US$/t) |
|
|
104.28 |
|
|
|
107.80 |
|
Unit costs |
|
|
|
|
|
|
||
BMA (US$/t) |
|
|
134.05 |
|
|
|
127.50 |
|
47
Table of Contents
Key drivers of Coal’s financial results
Price overview – Steelmaking coal
Steelmaking coal prices (PLV FOB Aus) rebounded by 28 per cent in second half of FY2026, supported by a recovery in seaborne demand and supply shocks.
Indian pig iron production growth remained robust, sustaining the country’s position as the largest seaborne coal importer.
The Middle East conflict temporarily impacted steelmaking coal markets through higher energy prices and gas shortages, encouraging the diversion of semi-soft coking coals into power generation and reducing supply available to steelmakers.
In May, a tragic mine accident in China triggered widespread coal mine suspensions, causing a domestic shortage of Premium Hard Coking Coal (PHCC) and creating a regional price differential whereby seaborne PHCC imports were cheaper than domestic coal. Given China’s scale in coal production and demand, policy developments in China remain a key determinant for seaborne coal dynamics.
Outside of China, supply increased through restarts and new mine ramp-ups in Australia, United States and Russia. Barring any adverse impact from conflicts and abnormal weather, and in a supportive price environment, this trend is likely to continue in the near term.
Over the longer term, we expect that higher quality steelmaking coals, such as those produced by our BMA assets, will attract a premium due to their greater ability to reduce greenhouse gas emission intensity of blast furnaces. In addition, robust hard coking coal imports from emerging Asian countries such as India, will lead to growing and resilient demand for decades to come. The scarcity value of higher quality steelmaking coals may increase over time, particularly given the restrictive royalty regime in the major seaborne supply region of Queensland is not supportive of long-term capital investment in steelmaking coal assets in Queensland.
Production
Steelmaking coal
BMA production increased by 3 per cent to 18.6 Mt with strong operational performance at the open-cut operations, delivering the highest stripping volumes in five years. Improved wet weather operating performance enabled BMA to partially mitigate the impacts of higher-than-average rainfall including Tropical Cyclone Koji, weather-related mine sequencing impacts on yield, and ongoing geotechnical challenges at Broadmeadow. BMA also increased raw coal inventory levels by ~30 per cent, reflecting BMA’s continuing focus on strengthening supply chain stability and resilience.
Energy coal
NSWEC production increased by 9 per cent to 16.4 Mt, primarily as a result of increased bypass coal due to mine sequencing. This was further supported by mining lower strip ratio areas as we continue to progress our plan to cease mining at the Mt Arthur Coal mine in June 2030.
Financial results
Coal revenue increased by US$0.5 billion to US$5.6 billion in FY2026 due to higher average realised prices and higher volumes.
Underlying EBITDA for Coal increased by US$0.3 billion to US$0.8 billion, supported by price impacts, net of price-linked costs, and higher volumes, which each contributed US$0.2 billion.
Controllable cash costs improved by US$0.2 billion, primarily reflecting the non-recurrence of prior-period NSWEC impacts from reduced truck availability and unfavourable weather, and favourable raw coal inventory movements at BMA. These benefits were partially offset by a US$0.4 billion impact from inflation and unfavourable foreign exchange.
Outlook
BMA production for FY2027 is expected to be between 18.5 and 20.5 Mt (37 and 41 Mt on a 100 per cent basis), weighted to the second half.
BMA unit costs in FY2027 are expected to be between US$126 and US$137 per tonne (based on an exchange rate of AUD/USD 0.70), subject to movements in the Singapore 10ppm Gasoil benchmark. Every US$10/bbl change in the benchmark price is estimated to have an ~US$1.10 per tonne impact on unit costs.
48
Table of Contents
NSWEC production for FY2027 is expected to be between 14 and 16 Mt.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
7.4 Other assets
Detailed below is an analysis of Other assets’ financial and operating performance comparing FY2026 to FY2025.
Western Australia Nickel
Western Australia Nickel (WAN) recorded an Underlying EBITDA loss of US$255 million in FY2026, compared to a loss of US$589 million in FY2025 as operations transitioned into temporary suspension in December 2024.
As previously announced, BHP intends to review the decision to temporarily suspend WAN by February 2027. As part of this review, BHP is assessing the potential divestment of the WAN assets. Any decision to divest will be subject to an assessment against other options, including continuing temporary suspension, restart or closure.
Potash
Potash recorded an Underlying EBITDA loss of US$326 million in FY2026, compared to a loss of US$284 million in FY2025.
Jansen Stage 1 is 84 per cent complete with an estimated date of first production of mid CY2027. Jansen Stage 2 is 16 per cent complete with an estimated date of first production of late FY2031.
Price overview
In FY2026, potash spot prices have moved 23 per cent higher to US$342/t Vancouver FOB. This increase was supported by strong demand, driven by biofuel mandates in Southeast Asia, a re-stocking cycle in China and improving demand in Brazil. This has been underpinned by early settlement of the CY2026 Chinese annual contract and India settling their CY2026 contract at a multi-year high.
Fertiliser markets were heavily affected by the Middle East conflict, particularly nitrogen and phosphate, owing to their exposure to natural gas, urea and sulphuric-acid feedstocks. Muriate of Potash (MOP) is not directly impacted by these feedstocks and therefore the impact has mostly been limited to increasing freight costs, resulting in delivered prices moving higher in response. The relative price movements across the fertiliser complex have further consolidated potash’s affordability, reinforcing its value proposition for growers and supporting demand resilience. However, farmers continue to face elevated overall input costs despite potash’s relative affordability.
The recent price rally is expected to be tempered in CY2027 amidst moderating demand in price-sensitive regions and sufficient supply.
Longer term, we continue to believe that potash will benefit from durable trends: rising population, improving diets, reduced availability of arable land, and the need to correct the persistent global potassium deficit in agricultural soils. These attractive demand fundamentals will cement the role of potash as a commodity pillar within BHP’s portfolio over the long term.
The comparison for the year ended 30 June 2025 to 30 June 2024 has been omitted from this annual report on Form 20-F and can be found in our annual report on Form 20-F for the fiscal year ended 30 June 2025, filed on 22 August 2025.
49
Table of Contents
7.5 Impact of changes to commodity prices
The prices we obtain for our products are a key driver of value for BHP. Fluctuations in these commodity prices affect our results, including cash flows and asset values. The estimated impact of changes in commodity prices in FY2026 on our key financial measures is set out below.
|
|
Impact on profit |
|
|
Impact on |
|
||
US¢1/lb on copper price |
|
|
27 |
|
|
|
39 |
|
US$1/t on iron ore price |
|
|
161 |
|
|
|
230 |
|
US$1/t on steelmaking coal price |
|
|
8 |
|
|
|
12 |
|
US$1/t on energy coal price |
|
|
10 |
|
|
|
15 |
|
50
Table of Contents
We use various non-IFRS financial information to reflect our underlying financial performance.
Non-IFRS financial information is not defined or specified under the requirements of IFRS, but is derived from the Group’s Consolidated Financial Statements prepared in accordance with IFRS. The non-IFRS financial information and the below reconciliations included in this document are unaudited. The non-IFRS financial information presented is consistent with how management review financial performance of the Group with the Board and the investment community.
Sections 8.1 and 8.2 outline why we believe non-IFRS financial information is useful and the calculation methodology. We believe non-IFRS financial information provides useful information, however it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performance (such as profit or net operating cash flow) or any other measure of financial performance or position presented in accordance with IFRS, or as a measure of a company’s profitability, liquidity or financial position.
The following tables provide reconciliations between non-IFRS financial information and their nearest respective IFRS measure.
Exceptional items
To improve the comparability of underlying financial performance between reporting periods, some of our non-IFRS financial information adjusts the relevant IFRS measures for exceptional items.
> For more information on exceptional items refer to Financial Statements note 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 Group’s Consolidated Financial Statements. The exceptional items included within the Group’s profit for the financial years are detailed below.
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Revenue |
|
|
– |
|
|
|
– |
|
|
|
– |
|
Other income |
|
|
64 |
|
|
|
– |
|
|
|
877 |
|
Expenses excluding net finance costs, depreciation, amortisation and impairments |
|
|
(215 |
) |
|
|
(621 |
) |
|
|
(139 |
) |
Depreciation and amortisation |
|
|
– |
|
|
|
– |
|
|
|
– |
|
Impairments of property, plant and equipment and intangibles net of reversals |
|
|
(2,300 |
) |
|
|
90 |
|
|
|
(3,800 |
) |
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
(320 |
) |
|
|
(245 |
) |
|
|
(3,032 |
) |
Profit/(loss) from operations |
|
|
(2,771 |
) |
|
|
(776 |
) |
|
|
(6,094 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Financial expenses |
|
|
(600 |
) |
|
|
(458 |
) |
|
|
(506 |
) |
Financial income |
|
|
– |
|
|
|
– |
|
|
|
– |
|
Net finance costs |
|
|
(600 |
) |
|
|
(458 |
) |
|
|
(506 |
) |
Profit/(loss) before taxation |
|
|
(3,371 |
) |
|
|
(1,234 |
) |
|
|
(6,600 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Income tax (expense)/benefit |
|
|
– |
|
|
|
96 |
|
|
|
837 |
|
Royalty-related taxation (net of income tax benefit) |
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total taxation (expense)/benefit |
|
|
– |
|
|
|
96 |
|
|
|
837 |
|
Profit/(loss) after taxation |
|
|
(3,371 |
) |
|
|
(1,138 |
) |
|
|
(5,763 |
) |
Total exceptional items attributable to non-controlling interests |
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total exceptional items attributable to BHP shareholders |
|
|
(3,371 |
) |
|
|
(1,138 |
) |
|
|
(5,763 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Exceptional items attributable to BHP shareholders per share (US cents) |
|
|
(66.4 |
) |
|
|
(22.4 |
) |
|
|
(113.7 |
) |
Weighted basic average number of shares (million) |
|
|
5,078 |
|
|
|
5,073 |
|
|
|
5,068 |
|
51
Table of Contents
Non-IFRS financial information derived from Consolidated Income Statement
Underlying attributable profit
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Profit after taxation attributable to BHP shareholders |
|
|
9,833 |
|
|
|
9,019 |
|
|
|
7,897 |
|
Total exceptional items attributable to BHP shareholders1 |
|
|
3,371 |
|
|
|
1,138 |
|
|
|
5,763 |
|
Underlying attributable profit |
|
|
13,204 |
|
|
|
10,157 |
|
|
|
13,660 |
|
Underlying basic earnings per share
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US cents |
|
|
US cents |
|
|
US cents |
|
|||
Basic earnings per ordinary share |
|
|
193.6 |
|
|
|
177.8 |
|
|
|
155.8 |
|
Exceptional items attributable to BHP shareholders per share1 |
|
|
66.4 |
|
|
|
22.4 |
|
|
|
113.7 |
|
Underlying basic earnings per ordinary share |
|
|
260.0 |
|
|
|
200.2 |
|
|
|
269.5 |
|
Underlying EBITDA
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Profit from operations |
|
|
23,869 |
|
|
|
19,464 |
|
|
|
17,537 |
|
Exceptional items included in profit from operations1 |
|
|
2,771 |
|
|
|
776 |
|
|
|
6,094 |
|
Underlying EBIT |
|
|
26,640 |
|
|
|
20,240 |
|
|
|
23,631 |
|
Depreciation and amortisation expense |
|
|
6,201 |
|
|
|
5,540 |
|
|
|
5,295 |
|
Impairments of property, plant and equipment and intangibles net of reversals |
|
|
2,406 |
|
|
|
108 |
|
|
|
3,890 |
|
Exceptional items included in depreciation, amortisation and impairments1 |
|
|
(2,300 |
) |
|
|
90 |
|
|
|
(3,800 |
) |
Underlying EBITDA |
|
|
32,947 |
|
|
|
25,978 |
|
|
|
29,016 |
|
52
Table of Contents
Underlying EBITDA – Segment
Year ended 30 June 2026 |
|
Copper |
|
|
Iron |
|
|
Coal |
|
|
Group and |
|
|
Total |
|
|||||
Profit from operations |
|
|
15,661 |
|
|
|
11,949 |
|
|
|
58 |
|
|
|
(3,799 |
) |
|
|
23,869 |
|
Exceptional items included in profit from operations1 |
|
|
– |
|
|
|
365 |
|
|
|
– |
|
|
|
2,406 |
|
|
|
2,771 |
|
Depreciation and amortisation expense |
|
|
2,500 |
|
|
|
2,186 |
|
|
|
754 |
|
|
|
761 |
|
|
|
6,201 |
|
Impairments of property, plant and equipment and intangibles net of reversals |
|
|
26 |
|
|
|
29 |
|
|
|
20 |
|
|
|
2,331 |
|
|
|
2,406 |
|
Exceptional items included in depreciation, amortisation and impairments1 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(2,300 |
) |
|
|
(2,300 |
) |
Underlying EBITDA |
|
|
18,187 |
|
|
|
14,529 |
|
|
|
832 |
|
|
|
(601 |
) |
|
|
32,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2025 |
|
Copper |
|
|
Iron Ore |
|
|
Coal |
|
|
Group and |
|
|
Total Group |
|
|||||
Profit from operations |
|
|
9,956 |
|
|
|
11,826 |
|
|
|
(33 |
) |
|
|
(2,285 |
) |
|
|
19,464 |
|
Exceptional items included in profit from operations1 |
|
|
– |
|
|
|
321 |
|
|
|
– |
|
|
|
455 |
|
|
|
776 |
|
Depreciation and amortisation expense |
|
|
2,351 |
|
|
|
2,098 |
|
|
|
602 |
|
|
|
489 |
|
|
|
5,540 |
|
Impairments of property, plant and equipment and intangibles net of reversals |
|
|
19 |
|
|
|
151 |
|
|
|
4 |
|
|
|
(66 |
) |
|
|
108 |
|
Exceptional items included in depreciation, amortisation and impairments1 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
90 |
|
|
|
90 |
|
Underlying EBITDA |
|
|
12,326 |
|
|
|
14,396 |
|
|
|
573 |
|
|
|
(1,317 |
) |
|
|
25,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2024 |
|
Copper |
|
|
Iron Ore |
|
|
Coal |
|
|
Group and |
|
|
Total Group |
|
|||||
Profit from operations |
|
|
6,524 |
|
|
|
13,759 |
|
|
|
2,557 |
|
|
|
(5,303 |
) |
|
|
17,537 |
|
Exceptional items included in profit from operations1 |
|
|
– |
|
|
|
3,066 |
|
|
|
(880 |
) |
|
|
3,908 |
|
|
|
6,094 |
|
Depreciation and amortisation expense |
|
|
2,023 |
|
|
|
2,027 |
|
|
|
611 |
|
|
|
634 |
|
|
|
5,295 |
|
Impairments of property, plant and equipment and intangibles net of reversals |
|
|
17 |
|
|
|
61 |
|
|
|
2 |
|
|
|
3,810 |
|
|
|
3,890 |
|
Exceptional items included in depreciation, amortisation and impairments1 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(3,800 |
) |
|
|
(3,800 |
) |
Underlying EBITDA |
|
|
8,564 |
|
|
|
18,913 |
|
|
|
2,290 |
|
|
|
(751 |
) |
|
|
29,016 |
|
Year ended 30 June 2026 |
|
Profit |
|
|
Exceptional |
|
|
Depreciation |
|
|
Impairments |
|
|
Exceptional |
|
|
Underlying |
|
||||||
Potash |
|
|
(2,628 |
) |
|
|
2,300 |
|
|
|
2 |
|
|
|
2,300 |
|
|
|
(2,300 |
) |
|
|
(326 |
) |
Western Australia Nickel |
|
|
(283 |
) |
|
– |
|
|
– |
|
|
|
28 |
|
|
– |
|
|
|
(255 |
) |
|||
Other2 |
|
|
(888 |
) |
|
|
106 |
|
|
|
759 |
|
|
|
3 |
|
|
– |
|
|
|
(20 |
) |
|
Total |
|
|
(3,799 |
) |
|
|
2,406 |
|
|
|
761 |
|
|
|
2,331 |
|
|
|
(2,300 |
) |
|
|
(601 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Year ended 30 June 2025 |
|
Profit |
|
|
Exceptional |
|
|
Depreciation |
|
|
Impairments |
|
|
Exceptional |
|
|
Underlying |
|
||||||
Potash |
|
|
(286 |
) |
|
– |
|
|
|
2 |
|
|
– |
|
|
– |
|
|
|
(284 |
) |
|||
Western Australia Nickel |
|
|
(909 |
) |
|
|
320 |
|
|
– |
|
|
|
(90 |
) |
|
|
90 |
|
|
|
(589 |
) |
|
Other2 |
|
|
(1,090 |
) |
|
|
135 |
|
|
|
487 |
|
|
|
24 |
|
|
– |
|
|
|
(444 |
) |
|
Total |
|
|
(2,285 |
) |
|
|
455 |
|
|
|
489 |
|
|
|
(66 |
) |
|
|
90 |
|
|
|
(1,317 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Year ended 30 June 2024 |
|
Profit |
|
|
Exceptional |
|
|
Depreciation |
|
|
Impairments |
|
|
Exceptional |
|
|
Underlying |
|
||||||
Potash |
|
|
(257 |
) |
|
– |
|
|
|
2 |
|
|
– |
|
|
– |
|
|
|
(255 |
) |
|||
Western Australia Nickel |
|
|
(4,174 |
) |
|
|
3,800 |
|
|
|
72 |
|
|
|
3,800 |
|
|
|
(3,800 |
) |
|
|
(302 |
) |
Other2 |
|
|
(872 |
) |
|
|
108 |
|
|
|
560 |
|
|
|
10 |
|
|
– |
|
|
|
(194 |
) |
|
Total |
|
|
(5,303 |
) |
|
|
3,908 |
|
|
|
634 |
|
|
|
3,810 |
|
|
|
(3,800 |
) |
|
|
(751 |
) |
53
Table of Contents
Underlying EBITDA margin
Year ended 30 June 2026 |
|
Copper |
|
|
Iron |
|
|
Coal |
|
|
Group and |
|
|
Total |
|
|||||
Revenue – Group production |
|
|
26,035 |
|
|
|
23,864 |
|
|
|
5,590 |
|
|
|
6 |
|
|
|
55,495 |
|
Revenue – Third-party products |
|
|
2,996 |
|
|
|
19 |
|
|
|
– |
|
|
|
250 |
|
|
|
3,265 |
|
Revenue |
|
|
29,031 |
|
|
|
23,883 |
|
|
|
5,590 |
|
|
|
256 |
|
|
|
58,760 |
|
Underlying EBITDA – Group production |
|
|
18,119 |
|
|
|
14,528 |
|
|
|
832 |
|
|
|
(626 |
) |
|
|
32,853 |
|
Underlying EBITDA – Third-party products |
|
|
68 |
|
|
|
1 |
|
|
|
– |
|
|
|
25 |
|
|
|
94 |
|
Underlying EBITDA2 |
|
|
18,187 |
|
|
|
14,529 |
|
|
|
832 |
|
|
|
(601 |
) |
|
|
32,947 |
|
Segment contribution to the Group's Underlying EBITDA3 |
|
|
54 |
% |
|
|
43 |
% |
|
|
3 |
% |
|
|
|
|
|
100 |
% |
|
Underlying EBITDA margin4 |
|
|
70 |
% |
|
|
61 |
% |
|
|
15 |
% |
|
|
|
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2025 |
|
Copper |
|
|
Iron |
|
|
Coal |
|
|
Group and |
|
|
Total |
|
|||||
Revenue – Group production |
|
|
20,685 |
|
|
|
22,891 |
|
|
|
5,046 |
|
|
|
530 |
|
|
|
49,152 |
|
Revenue – Third-party products |
|
|
1,845 |
|
|
|
28 |
|
|
|
– |
|
|
|
237 |
|
|
|
2,110 |
|
Revenue |
|
|
22,530 |
|
|
|
22,919 |
|
|
|
5,046 |
|
|
|
767 |
|
|
|
51,262 |
|
Underlying EBITDA – Group production |
|
|
12,235 |
|
|
|
14,392 |
|
|
|
573 |
|
|
|
(1,341 |
) |
|
|
25,859 |
|
Underlying EBITDA – Third-party products |
|
|
91 |
|
|
|
4 |
|
|
|
– |
|
|
|
24 |
|
|
|
119 |
|
Underlying EBITDA2 |
|
|
12,326 |
|
|
|
14,396 |
|
|
|
573 |
|
|
|
(1,317 |
) |
|
|
25,978 |
|
Segment contribution to the Group's Underlying EBITDA3 |
|
|
45 |
% |
|
|
53 |
% |
|
|
2 |
% |
|
|
|
|
|
100 |
% |
|
Underlying EBITDA margin4 |
|
|
59 |
% |
|
|
63 |
% |
|
|
11 |
% |
|
|
|
|
|
53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2024 |
|
Copper |
|
|
Iron |
|
|
Coal |
|
|
Group and |
|
|
Total |
|
|||||
Revenue – Group production |
|
|
16,545 |
|
|
|
27,927 |
|
|
|
7,666 |
|
|
|
1,470 |
|
|
|
53,608 |
|
Revenue – Third-party products |
|
|
2,021 |
|
|
|
25 |
|
|
|
– |
|
|
|
4 |
|
|
|
2,050 |
|
Revenue |
|
|
18,566 |
|
|
|
27,952 |
|
|
|
7,666 |
|
|
|
1,474 |
|
|
|
55,658 |
|
Underlying EBITDA – Group production |
|
|
8,490 |
|
|
|
18,916 |
|
|
|
2,290 |
|
|
|
(753 |
) |
|
|
28,943 |
|
Underlying EBITDA – Third-party products |
|
|
74 |
|
|
|
(3 |
) |
|
|
– |
|
|
|
2 |
|
|
|
73 |
|
Underlying EBITDA2 |
|
|
8,564 |
|
|
|
18,913 |
|
|
|
2,290 |
|
|
|
(751 |
) |
|
|
29,016 |
|
Segment contribution to the Group's Underlying EBITDA3 |
|
|
29 |
% |
|
|
64 |
% |
|
|
7 |
% |
|
|
|
|
|
100 |
% |
|
Underlying EBITDA margin4 |
|
|
51 |
% |
|
|
68 |
% |
|
|
30 |
% |
|
|
|
|
|
54 |
% |
|
Effective tax rate
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||||||||||||||||||||||||||
Year ended 30 June |
|
Profit |
|
|
Income |
|
|
% |
|
|
Profit |
|
|
Income |
|
|
% |
|
|
Profit |
|
|
Income |
|
|
% |
|
|||||||||
Statutory effective tax rate |
|
|
22,414 |
|
|
|
(9,388 |
) |
|
|
41.9 |
|
|
|
18,353 |
|
|
|
(7,210 |
) |
|
|
39.3 |
|
|
|
16,048 |
|
|
|
(6,447 |
) |
|
|
40.2 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Exchange rate movements |
|
|
– |
|
|
|
(24 |
) |
|
|
|
|
|
– |
|
|
|
21 |
|
|
|
|
|
|
– |
|
|
|
(79 |
) |
|
|
|
|||
Exceptional items1 |
|
|
3,371 |
|
|
|
– |
|
|
|
|
|
|
1,234 |
|
|
|
(96 |
) |
|
|
|
|
|
6,600 |
|
|
|
(837 |
) |
|
|
|
|||
Adjusted effective tax rate |
|
|
25,785 |
|
|
|
(9,412 |
) |
|
|
36.5 |
|
|
|
19,587 |
|
|
|
(7,285 |
) |
|
|
37.2 |
|
|
|
22,648 |
|
|
|
(7,363 |
) |
|
|
32.5 |
|
54
Table of Contents
Non-IFRS financial information derived from Consolidated Cash Flow Statement
Capital and exploration expenditure
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Capital expenditure (purchases of property, plant and equipment) |
|
|
9,849 |
|
|
|
9,398 |
|
|
|
8,816 |
|
Add: Exploration and evaluation expenditure |
|
|
408 |
|
|
|
396 |
|
|
|
457 |
|
Capital and exploration expenditure (cash basis) |
|
|
10,257 |
|
|
|
9,794 |
|
|
|
9,273 |
|
Free cash flow
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Net operating cash flows |
|
|
21,778 |
|
|
|
18,692 |
|
|
|
20,665 |
|
Net investing cash flows |
|
|
(12,011 |
) |
|
|
(13,350 |
) |
|
|
(8,762 |
) |
Free cash flow |
|
|
9,767 |
|
|
|
5,342 |
|
|
|
11,903 |
|
Non-IFRS financial information derived from Consolidated Balance Sheet
Net debt and gearing ratio
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Interest bearing liabilities – Current |
|
|
2,684 |
|
|
|
2,018 |
|
|
|
2,084 |
|
Interest bearing liabilities – Non-current |
|
|
24,437 |
|
|
|
22,478 |
|
|
|
18,634 |
|
Total interest bearing liabilities |
|
|
27,121 |
|
|
|
24,496 |
|
|
|
20,718 |
|
Comprising: |
|
|
|
|
|
|
|
|
|
|||
Borrowing |
|
|
23,625 |
|
|
|
21,543 |
|
|
|
17,602 |
|
Lease liabilities |
|
|
3,496 |
|
|
|
2,953 |
|
|
|
3,116 |
|
Less: Lease liability associated with index-linked freight contracts |
|
|
735 |
|
|
|
333 |
|
|
|
511 |
|
Less: Cash and cash equivalents |
|
|
18,532 |
|
|
|
11,894 |
|
|
|
12,501 |
|
Less: Net debt management related instruments1 |
|
|
(1,067 |
) |
|
|
(595 |
) |
|
|
(1,395 |
) |
Less: Net cash management related instruments2 |
|
|
227 |
|
|
|
(60 |
) |
|
|
(19 |
) |
Less: Total derivatives included in net debt |
|
|
(840 |
) |
|
|
(655 |
) |
|
|
(1,414 |
) |
Net debt |
|
|
8,694 |
|
|
|
12,924 |
|
|
|
9,120 |
|
Net assets |
|
|
56,321 |
|
|
|
52,218 |
|
|
|
49,120 |
|
Gearing |
|
|
13.4 |
% |
|
|
19.8 |
% |
|
|
15.7 |
% |
55
Table of Contents
Net debt waterfall
|
|
2026 |
|
|
2025 |
|
||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
||
Net debt at the beginning of the period |
|
|
(12,924 |
) |
|
|
(9,120 |
) |
Net operating cash flows |
|
|
21,778 |
|
|
|
18,692 |
|
Net investing cash flows |
|
|
(12,011 |
) |
|
|
(13,350 |
) |
Net financing cash flows |
|
|
(3,280 |
) |
|
|
(5,971 |
) |
Net increase/(decrease) in cash and cash equivalents |
|
|
6,487 |
|
|
|
(629 |
) |
Carrying value of interest bearing liability net proceeds |
|
|
(1,594 |
) |
|
|
(2,454 |
) |
Carrying value of debt related instruments settlements |
|
|
22 |
|
|
|
147 |
|
Carrying value of cash management related instruments proceeds |
|
|
(96 |
) |
|
|
(195 |
) |
Fair value change on hedged loans |
|
|
367 |
|
|
|
(263 |
) |
Fair value change on hedging derivatives |
|
|
(292 |
) |
|
|
290 |
|
Foreign currency exchange rate changes on cash and cash equivalents |
|
|
152 |
|
|
|
24 |
|
Lease additions (excluding leases associated with index-linked freight contracts) |
|
|
(638 |
) |
|
|
(547 |
) |
Other |
|
|
(178 |
) |
|
|
(177 |
) |
Non-cash movements |
|
|
(589 |
) |
|
|
(673 |
) |
Net debt at the end of the period |
|
|
(8,694 |
) |
|
|
(12,924 |
) |
Net operating assets
The following table reconciles Net operating assets for the Group to Net assets on the Consolidated Balance Sheet.
|
|
2026 |
|
|
2025 |
|
||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
||
Net assets |
|
|
56,321 |
|
|
|
52,218 |
|
Less: Non-operating assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
(18,532 |
) |
|
|
(11,894 |
) |
Trade and other receivables1 |
|
|
(87 |
) |
|
|
(17 |
) |
Other financial assets2 |
|
|
(1,062 |
) |
|
|
(1,251 |
) |
Current tax assets |
|
|
(33 |
) |
|
|
(545 |
) |
Non-current tax assets |
|
|
(37 |
) |
|
|
– |
|
Deferred tax assets |
|
|
(114 |
) |
|
|
(78 |
) |
Add: Non-operating liabilities |
|
|
|
|
|
|
||
Trade and other payables3 |
|
|
383 |
|
|
|
332 |
|
Interest bearing liabilities |
|
|
27,121 |
|
|
|
24,496 |
|
Other financial liabilities4 |
|
|
5,583 |
|
|
|
1,117 |
|
Current tax payable |
|
|
1,049 |
|
|
|
900 |
|
Non-current tax payable |
|
|
37 |
|
|
|
3 |
|
Deferred tax liabilities |
|
|
3,101 |
|
|
|
3,506 |
|
Net operating assets |
|
|
73,730 |
|
|
|
68,787 |
|
Net operating assets |
|
|
|
|
|
|
||
Copper |
|
|
43,469 |
|
|
|
40,884 |
|
Iron Ore |
|
|
17,119 |
|
|
|
15,252 |
|
Coal |
|
|
6,104 |
|
|
|
6,357 |
|
Group and unallocated items5 |
|
|
7,038 |
|
|
|
6,294 |
|
Total |
|
|
73,730 |
|
|
|
68,787 |
|
56
Table of Contents
Other non-IFRS financial information
Principal factors that affect Revenue, Profit from operations and Underlying EBITDA
The following table describes the impact of the principal factors that affected Revenue, Profit from operations and Underlying EBITDA for FY2026 and relates them back to our Consolidated Income Statement.
> For information on the method of calculation of the principal factors that affect Revenue, Profit from operations and Underlying EBITDA refer to OFR 8.2
|
|
Revenue |
|
|
Total expenses, |
|
|
Profit from |
|
|
Depreciation, |
|
|
Underlying |
|
|||||
Year ended 30 June 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue |
|
|
51,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income |
|
|
|
|
|
368 |
|
|
|
|
|
|
|
|
|
|
||||
Expenses excluding net finance costs |
|
|
|
|
|
(32,319 |
) |
|
|
|
|
|
|
|
|
|
||||
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
|
|
|
153 |
|
|
|
|
|
|
|
|
|
|
||||
Total other income, expenses excluding net finance costs and profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
|
|
|
(31,798 |
) |
|
|
|
|
|
|
|
|
|
||||
Profit from operations |
|
|
|
|
|
|
|
|
19,464 |
|
|
|
|
|
|
|
||||
Depreciation, amortisation and impairments1 |
|
|
|
|
|
|
|
|
|
|
|
5,648 |
|
|
|
|
||||
Exceptional item included in Depreciation, amortisation and impairments |
|
|
|
|
|
|
|
|
|
|
|
90 |
|
|
|
|
||||
Exceptional items |
|
|
|
|
|
|
|
|
|
|
|
776 |
|
|
|
|
||||
Underlying EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,978 |
|
||||
Change in sales prices |
|
|
7,710 |
|
|
|
– |
|
|
|
7,710 |
|
|
|
– |
|
|
|
7,710 |
|
Price-linked costs |
|
|
– |
|
|
|
(399 |
) |
|
|
(399 |
) |
|
|
– |
|
|
|
(399 |
) |
Net price impact |
|
|
7,710 |
|
|
|
(399 |
) |
|
|
7,311 |
|
|
|
– |
|
|
|
7,311 |
|
Change in volumes |
|
|
(1,242 |
) |
|
|
75 |
|
|
|
(1,167 |
) |
|
|
– |
|
|
|
(1,167 |
) |
Operating cash costs |
|
|
– |
|
|
|
1,118 |
|
|
|
1,118 |
|
|
|
– |
|
|
|
1,118 |
|
Exploration and business development |
|
|
– |
|
|
|
73 |
|
|
|
73 |
|
|
|
– |
|
|
|
73 |
|
Change in controllable cash costs2 |
|
|
– |
|
|
|
1,191 |
|
|
|
1,191 |
|
|
|
– |
|
|
|
1,191 |
|
Exchange rates |
|
|
– |
|
|
|
(798 |
) |
|
|
(798 |
) |
|
|
– |
|
|
|
(798 |
) |
Inflation on costs |
|
|
– |
|
|
|
(675 |
) |
|
|
(675 |
) |
|
|
– |
|
|
|
(675 |
) |
Fuel, energy and consumable price movements |
|
|
– |
|
|
|
(209 |
) |
|
|
(209 |
) |
|
|
– |
|
|
|
(209 |
) |
Non-cash |
|
|
– |
|
|
|
96 |
|
|
|
96 |
|
|
|
– |
|
|
|
96 |
|
Change in other costs |
|
|
– |
|
|
|
(1,586 |
) |
|
|
(1,586 |
) |
|
|
– |
|
|
|
(1,586 |
) |
Asset sales |
|
|
– |
|
|
|
100 |
|
|
|
100 |
|
|
|
– |
|
|
|
100 |
|
Ceased and sold operations |
|
|
(534 |
) |
|
|
1,010 |
|
|
|
476 |
|
|
|
– |
|
|
|
476 |
|
Other |
|
|
1,564 |
|
|
|
(920 |
) |
|
|
644 |
|
|
|
– |
|
|
|
644 |
|
Depreciation, amortisation and impairments |
|
|
– |
|
|
|
(569 |
) |
|
|
(569 |
) |
|
|
569 |
|
|
|
– |
|
Exceptional items |
|
|
– |
|
|
|
(1,995 |
) |
|
|
(1,995 |
) |
|
|
1,995 |
|
|
|
– |
|
Year ended 30 June 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue |
|
|
58,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income |
|
|
|
|
|
514 |
|
|
|
|
|
|
|
|
|
|
||||
Expenses excluding net finance costs |
|
|
|
|
|
(35,979 |
) |
|
|
|
|
|
|
|
|
|
||||
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
|
|
|
574 |
|
|
|
|
|
|
|
|
|
|
||||
Total other income, expenses excluding net finance costs and profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
|
|
|
(34,891 |
) |
|
|
|
|
|
|
|
|
|
||||
Profit from operations |
|
|
|
|
|
|
|
|
23,869 |
|
|
|
|
|
|
|
||||
Depreciation, amortisation and impairments1 |
|
|
|
|
|
|
|
|
|
|
|
8,607 |
|
|
|
|
||||
Exceptional item included in Depreciation, amortisation and impairments |
|
|
|
|
|
|
|
|
|
|
|
(2,300 |
) |
|
|
|
||||
Exceptional items |
|
|
|
|
|
|
|
|
|
|
|
2,771 |
|
|
|
|
||||
Underlying EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32,947 |
|
||||
57
Table of Contents
Underlying return on capital employed (ROCE)
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|||
Year ended 30 June |
|
US$M |
|
|
US$M |
|
|
US$M |
|
|||
Profit after taxation |
|
|
13,026 |
|
|
|
11,143 |
|
|
|
9,601 |
|
Exceptional items1 |
|
|
3,371 |
|
|
|
1,138 |
|
|
|
5,763 |
|
Subtotal |
|
|
16,397 |
|
|
|
12,281 |
|
|
|
15,364 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|||
Net finance costs |
|
|
1,455 |
|
|
|
1,111 |
|
|
|
1,489 |
|
Exceptional items included within net finance costs1 |
|
|
(600 |
) |
|
|
(458 |
) |
|
|
(506 |
) |
Income tax expense on net finance costs |
|
|
(259 |
) |
|
|
(224 |
) |
|
|
(303 |
) |
Profit after taxation excluding net finance costs and exceptional items |
|
|
16,993 |
|
|
|
12,710 |
|
|
|
16,044 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net assets at the beginning of the period |
|
|
52,218 |
|
|
|
49,120 |
|
|
|
48,530 |
|
Net debt at the beginning of the period |
|
|
12,924 |
|
|
|
9,120 |
|
|
|
11,166 |
|
Capital employed at the beginning of the period |
|
|
65,142 |
|
|
|
58,240 |
|
|
|
59,696 |
|
Net assets at the end of the period |
|
|
56,321 |
|
|
|
52,218 |
|
|
|
49,120 |
|
Net debt at the end of the period |
|
|
8,694 |
|
|
|
12,924 |
|
|
|
9,120 |
|
Capital employed at the end of the period |
|
|
65,015 |
|
|
|
65,142 |
|
|
|
58,240 |
|
Average capital employed |
|
|
65,079 |
|
|
|
61,691 |
|
|
|
58,968 |
|
Underlying return on capital employed |
|
|
26.1 |
% |
|
|
20.6 |
% |
|
|
27.2 |
% |
Underlying return on capital employed (ROCE) by segment
Year ended 30 June 2026 |
|
Copper |
|
|
Iron Ore |
|
|
Coal |
|
|
Group and unallocated items/ eliminations1 |
|
|
Total Group |
|
|||||
Profit after taxation excluding net finance costs and exceptional items |
|
|
9,643 |
|
|
|
8,393 |
|
|
|
(15 |
) |
|
|
(1,028 |
) |
|
|
16,993 |
|
Average capital employed |
|
|
37,165 |
|
|
|
15,211 |
|
|
|
6,205 |
|
|
|
6,498 |
|
|
|
65,079 |
|
Underlying return on capital employed |
|
|
26 |
% |
|
|
55 |
% |
|
|
(0 |
%) |
|
|
– |
|
|
|
26.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2025 |
|
Copper |
|
|
Iron Ore |
|
|
Coal |
|
|
Group and unallocated items/ eliminations1 |
|
|
Total Group |
|
|||||
Profit after taxation excluding net finance costs and exceptional items |
|
|
5,750 |
|
|
|
8,541 |
|
|
|
(42 |
) |
|
|
(1,539 |
) |
|
|
12,710 |
|
Average capital employed |
|
|
33,906 |
|
|
|
13,408 |
|
|
|
6,590 |
|
|
|
7,787 |
|
|
|
61,691 |
|
Underlying return on capital employed |
|
|
17 |
% |
|
|
64 |
% |
|
|
(1 |
%) |
|
|
– |
|
|
|
20.6 |
% |
58
Table of Contents
Underlying return on capital employed (ROCE) by asset
Year ended 30 June 2026 |
|
Antamina |
|
Escondida |
|
Western |
|
Pampa |
|
Copper |
|
BHP |
|
Western |
|
Potash2 |
|
New |
|
Other |
|
Total |
Profit after taxation excluding net finance costs and exceptional items |
|
971 |
|
6,390 |
|
8,545 |
|
751 |
|
1,714 |
|
127 |
|
(283) |
|
(337) |
|
(6) |
|
(879) |
|
16,993 |
Average capital employed |
|
1,651 |
|
12,125 |
|
20,901 |
|
4,680 |
|
16,069 |
|
6,360 |
|
(219) |
|
8,623 |
|
(162) |
|
(4,949) |
|
65,079 |
Underlying return on capital employed |
|
59% |
|
53% |
|
41% |
|
16% |
|
11% |
|
2% |
|
– |
|
− |
|
− |
|
− |
|
26.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended 30 June 2025 |
|
Antamina |
|
Escondida |
|
Western |
|
Pampa |
|
Copper |
|
BHP |
|
Western |
|
Potash2 |
|
New |
|
Other |
|
Total |
Profit after taxation excluding net finance costs and exceptional items |
|
505 |
|
4,144 |
|
8,579 |
|
469 |
|
846 |
|
67 |
|
(684) |
|
(331) |
|
76 |
|
(961) |
|
12,710 |
Average capital employed |
|
1,513 |
|
11,213 |
|
19,890 |
|
4,353 |
|
15,282 |
|
6,564 |
|
(11) |
|
7,324 |
|
(50) |
|
(4,387) |
|
61,691 |
Underlying return on capital employed |
|
33% |
|
37% |
|
43% |
|
11% |
|
6% |
|
1% |
|
− |
|
− |
|
− |
|
− |
|
20.6% |
Unit costs
Unit costs do not include the re-allocation to assets in FY2025 and FY2026 of the costs associated with the employee entitlements and allowances review conducted in FY2023, which were reported in Group and Unallocated in that period.
The calculation of Escondida, Spence and Copper South Australia unit costs are set out in the table below.
|
Escondida unit costs |
|
|
Spence unit costs |
|
|
Copper South |
|
||||||||||||||||
US$M |
|
FY2026 |
|
|
FY2025 |
|
|
FY2026 |
|
|
FY2025 |
|
|
FY2026 |
|
|
FY2025 |
|
||||||
Revenue |
|
|
17,054 |
|
|
|
13,177 |
|
|
|
2,857 |
|
|
|
2,726 |
|
|
|
6,011 |
|
|
|
4,655 |
|
Underlying EBITDA |
|
|
12,440 |
|
|
|
8,593 |
|
|
|
1,619 |
|
|
|
1,296 |
|
|
|
3,203 |
|
|
|
1,936 |
|
Gross costs |
|
|
4,614 |
|
|
|
4,584 |
|
|
|
1,238 |
|
|
|
1,430 |
|
|
|
2,808 |
|
|
|
2,719 |
|
Less: by-product credits |
|
|
1,328 |
|
|
|
754 |
|
|
|
191 |
|
|
|
134 |
|
|
|
2,316 |
|
|
|
1,682 |
|
Less: freight |
|
|
226 |
|
|
|
224 |
|
|
|
50 |
|
|
|
51 |
|
|
|
30 |
|
|
|
28 |
|
Less: government royalties |
|
|
158 |
|
|
|
124 |
|
|
|
– |
|
|
|
– |
|
|
|
242 |
|
|
|
166 |
|
Less: re-allocation of costs associated with the employee entitlements and allowances review |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
3 |
|
|
|
2 |
|
Net costs |
|
|
2,902 |
|
|
|
3,482 |
|
|
|
997 |
|
|
|
1,245 |
|
|
|
217 |
|
|
|
841 |
|
Sales (kt) |
|
|
1,232 |
|
|
|
1,324 |
|
|
|
210 |
|
|
|
273 |
|
|
|
303 |
|
|
|
324 |
|
Sales (Mlb) |
|
|
2,715 |
|
|
|
2,918 |
|
|
|
464 |
|
|
|
602 |
|
|
|
669 |
|
|
|
713 |
|
Cost per pound (US$)1 |
|
|
1.07 |
|
|
|
1.19 |
|
|
|
2.15 |
|
|
|
2.07 |
|
|
|
0.32 |
|
|
|
1.18 |
|
59
Table of Contents
The calculation of WAIO and BMA unit costs are set out in the table below.
|
|
WAIO unit costs |
|
|
BMA unit costs |
|
||||||||||
US$M |
|
FY2026 |
|
|
FY2025 |
|
|
FY2026 |
|
|
FY2025 |
|
||||
Revenue |
|
|
23,726 |
|
|
|
22,767 |
|
|
|
3,876 |
|
|
|
3,422 |
|
Underlying EBITDA |
|
|
14,667 |
|
|
|
14,394 |
|
|
|
702 |
|
|
|
591 |
|
Gross costs |
|
|
9,059 |
|
|
|
8,373 |
|
|
|
3,174 |
|
|
|
2,831 |
|
Less: freight |
|
|
2,357 |
|
|
|
2,004 |
|
|
|
63 |
|
|
|
28 |
|
Less: government royalties |
|
|
1,696 |
|
|
|
1,612 |
|
|
|
609 |
|
|
|
530 |
|
Less: re-allocation of costs associated with the employee entitlements and allowances review |
|
|
6 |
|
|
|
28 |
|
|
|
3 |
|
|
|
1 |
|
Net costs |
|
|
5,000 |
|
|
|
4,729 |
|
|
|
2,499 |
|
|
|
2,272 |
|
Sales (kt, equity share) |
|
|
254,377 |
|
|
|
254,813 |
|
|
|
18,642 |
|
|
|
17,820 |
|
Cost per tonne (US$)1 |
|
|
19.66 |
|
|
|
18.56 |
|
|
|
134.05 |
|
|
|
127.50 |
|
8.1 Definition and calculation of non-IFRS financial information
Non-IFRS financial information |
Reasons why we believe the non-IFRS financial information is useful |
Calculation methodology |
Underlying attributable profit |
Allows the comparability of underlying financial performance by excluding the impacts of exceptional items and is also the basis on which our dividend payout ratio policy is applied. |
Profit after taxation attributable to BHP shareholders excluding any exceptional items attributable to BHP shareholders. |
Underlying basic earnings per share |
On a per share basis, allows the comparability of underlying financial performance by excluding the impacts of exceptional items. |
Underlying attributable profit divided by the weighted basic average number of shares. |
Underlying EBITDA |
Used to help assess current operational profitability excluding the impacts of sunk costs (i.e. depreciation from initial investment). Each is a measure that management uses internally to assess the performance of the Group’s segments and make decisions on the allocation of resources.
|
Earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and 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). |
Underlying EBITDA margin |
Underlying EBITDA excluding third-party product EBITDA, divided by revenue excluding third-party product revenue. |
|
Underlying EBIT |
Used to help assess current operational profitability excluding net finance costs and taxation expense (each of which are managed at the Group level) as well as Discontinued operations and any exceptional items. |
Earnings before net finance costs, taxation expense, Discontinued operations and any exceptional items. Underlying EBIT includes BHP’s share of profit/(loss) from investments accounted for using the equity method, including net finance costs and taxation expense/(benefit). |
Profit from operations |
Earnings before net finance costs, taxation expense and Discontinued operations. Profit from operations includes Revenue, Other income, Expenses excluding net finance costs and BHP’s share of profit/(loss) from investments accounted for using the equity method, including net finance costs and taxation expense/(benefit). |
60
Table of Contents
Non-IFRS financial information |
Reasons why we believe the non-IFRS financial information is useful |
Calculation methodology |
Capital and exploration expenditure |
Used as part of our Capital Allocation Framework to assess efficient deployment of capital. Represents the total outflows of our operational investing expenditure. |
Purchases of property, plant and equipment and exploration and evaluation expenditure. |
Free cash flow
|
It is a key measure used as part of our Capital Allocation Framework. Reflects our operational cash performance inclusive of investment expenditure, which helps to highlight how much cash was generated in the period to be available for the servicing of debt and distribution to shareholders. |
Net operating cash flows less net investing cash flows. |
Net debt |
Net debt shows the position of gross debt less index-linked freight contracts offset by cash immediately available to pay debt if required and any associated derivative financial instruments. Liability associated with index-linked freight contracts, which are required to be remeasured to the prevailing freight index at each reporting date, are excluded from the net debt calculation due to the short-term volatility of the index they relate to not aligning with how the Group uses net debt for decision-making in relation to the Capital Allocation Framework. Net debt includes the fair value of derivative financial instruments used to hedge cash and borrowings to reflect the Group’s risk management strategy of reducing the volatility of net debt caused by fluctuations in foreign exchange and interest rates. Net debt, along with the gearing ratio, is used to monitor the Group’s capital management by relating net debt relative to equity from shareholders. |
Interest bearing liabilities less liability associated with index-linked freight contracts less cash and cash equivalents less net cross currency and interest rate swaps less net cash management related instruments for the Group at the reporting date. |
Gearing ratio |
Ratio of Net debt to Net debt plus Net assets. |
|
Net operating assets |
Enables a clearer view of the assets deployed to generate earnings by highlighting the net operating assets of the business separate from the financing and tax balances. This measure helps provide an indicator of the underlying performance of our assets and enhances comparability between them. |
Operating assets net of operating liabilities, including the carrying value of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities, derivatives hedging our net debt, streaming arrangement liability, assets held for sale, liabilities directly associated with assets held for sale and tax balances. |
Underlying return on capital employed (ROCE) |
Indicator of the Group’s capital efficiency and is provided on an underlying basis to allow comparability of underlying financial performance by excluding the impacts of exceptional items. |
Profit after taxation excluding exceptional items and net finance costs (after taxation) divided by average capital employed. Profit after taxation excluding exceptional items and net finance costs (after taxation) is profit after taxation excluding exceptional items, net finance costs and the estimated taxation impact of net finance costs. These are annualised for a half year end reporting period. The estimated tax impact is calculated using a prima facie taxation rate on net finance costs (excluding any foreign exchange impact). |
61
Table of Contents
Non-IFRS financial information |
Reasons why we believe the non-IFRS financial information is useful |
Calculation methodology |
|
|
Average capital employed is calculated as the average of net assets less net debt for the last two reporting periods. |
Adjusted effective tax rate |
Provides an underlying tax basis to allow comparability of underlying financial performance by excluding the impacts of exceptional items. |
Total taxation expense/(benefit) excluding exceptional items and exchange rate movements included in taxation expense/(benefit) divided by Profit before taxation excluding exceptional items. |
Unit costs |
Used to assess the controllable financial performance of the Group’s assets for each unit of production. Unit costs are adjusted for site specific non-controllable factors to enhance comparability between the Group’s assets.
|
Ratio of net costs of the assets to the equity share of sales tonnage. Net costs is defined as revenue less Underlying EBITDA and excludes freight, re-allocation of the costs associated with the employee entitlements and allowance review in FY2023, and other costs, depending on the nature of each asset. Freight is excluded as the Group believes it provides a similar basis of comparison to our peer group. The re-allocation to assets in FY2025 and FY2026 of the costs associated with the employee entitlements and allowances review in FY2023 are excluded in asset unit costs as these costs were already recognised in Group and Unallocated in FY2023. Escondida, Spence and Copper South Australia unit costs are adjusted to: • include by-product credits being the favourable impact of by-products (such as gold or silver) to determine the directly attributable costs of copper production • exclude government royalties, as these are costs that are not deemed to be under the Group's control and the Group believes exclusion provides a similar basis of comparison to our peer group WAIO and BMA unit costs exclude: • government royalties, as these are costs that are not deemed to be under the Group's control and the Group believes exclusion provides a similar basis of comparison to our peer group |
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8.2 Definition and calculation of principal factors
The method of calculation of the principal factors that affect the period on period movements of Revenue, Profit from operations and Underlying EBITDA are as follows:
Principal factor |
Method of calculation |
Change in sales prices |
Change in average realised price for each operation from the prior period to the current period, multiplied by current period sales volumes. |
Price-linked costs |
Change in price-linked costs per sales volume (mainly royalties) for each operation from the prior period to the current period, multiplied by current period sales volumes. |
Change in volumes |
Change in sales volumes for each operation multiplied by the prior year average realised price less variable unit cost. |
Controllable cash costs |
Total of operating cash costs and exploration and business development costs. |
Operating cash costs |
Change in total costs, other than price-linked costs, exchange rates, inflation on costs, fuel, energy and consumable price movements, non-cash costs and one-off items as defined below for each operation from the prior period to the current period. |
Exploration and evaluation and business development |
Exploration and evaluation and business development expense in the current period minus exploration and evaluation and business development expense in the prior period. |
Exchange rates |
Change in exchange rate multiplied by current period local currency revenue and expenses. |
Inflation on costs |
Current year inflation rate applied to prior year expenses, other than depreciation and amortisation, price-linked costs, exploration and business development expenses, expenses in ceased and sold operations and expenses in new and acquired operations. |
Fuel, energy and consumable price movements |
Fuel and energy expense and price differences above inflation on consumables in the current period minus fuel and energy expense in the prior period. |
Non-cash |
Change in net impact of capitalisation and depletion of deferred stripping from the prior period to the current period. |
One-off items |
Change in costs exceeding a pre-determined threshold associated with an unexpected event that had not occurred in the last two years and is not reasonably likely to occur within the next two years. |
Asset sales |
Profit/(loss) on the sale of assets or operations in the current period minus profit/(loss) on sale of assets or operations in the prior period. |
Ceased and sold operations |
Underlying EBITDA for operations that ceased (including temporary suspension) or were sold in the current period minus Underlying EBITDA for operations that ceased (including temporary suspension) or were sold in the prior period. |
New and acquired operations |
Underlying EBITDA for operations that were acquired in the current period minus Underlying EBITDA for operations that were acquired in the prior period. |
Share of profit/(loss) from equity accounted investments |
Share of profit/(loss) from equity accounted investments for the current period minus share of profit/(loss) from equity accounted investments in the prior period. |
Other |
Variances not explained by the above factors. |
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9.1 Our sustainability approach
Our sustainability approach is defined by our purpose and our values and governed by our relevant Global Standards. These standards outline minimum mandatory requirements and underpin sustainability performance across our operated assets and functions.
>External versions of these Global Standards and BHP’s sustainability website pages are available at bhp.com
Sustainability-related standards and disclosures
We have implemented the Australian Accounting Standards Board’s Australian Sustainability Reporting Standard AASB S2: Climate-related Disclosures (AASB S2) in FY2026 reporting (in our Sustainability Report included in this Annual Report). This builds on our existing sustainability disclosures, including the Taskforce on Climate-related Financial Disclosures (TCFD) required under UK Listing Rules. Our sustainability-related disclosures in this Annual Report, in the BHP ESG Standards and Databook 2026 and on our website also support our commitments as members of the International Council on Mining and Metals (ICMM), including reporting with reference to the Global Reporting Initiative (GRI).
BHP continues to be assured against comprehensive sustainability performance standards. In FY2026, all applicable in-scope assets in Australia completed external validation against the relevant standards set out by the ICMM, Towards Sustainable Mining (Australia) and the Copper Mark. We also released our fourth set of key disclosures against the Global Industry Standard for Tailings Management (GISTM). BHP remains actively engaged in the Consolidated Mining Standard Initiative (CMSI) to consolidate and improve existing industry performance standards.
>For more information on the standards we have reported against, our approach to sustainability standards and our tailings disclosures, see our Value chain sustainability and Tailings storage facility pages at bhp.com/sustainability and the BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026
Presentation of sustainability-related data and information for acquisitions and divestments
For comparative period sustainability-related data and information included in the OFR, unless expressly stated otherwise in the relevant section (i) FY2024 data and information includes the former OZ Minerals operations that form part of our Copper South Australia asset and the West Musgrave Project (acquired as part of BHP’s acquisition of OZ Minerals on 2 May 2023); (ii) data and information for pre-FY2024 comparative periods has not been adjusted and restated in relation to the former OZ Minerals’ operations and functions; and (iii) data and information for pre-FY2025 comparative periods has been adjusted and restated to exclude the Daunia and Blackwater mines, which were divested by BMA on 2 April 2024. Where comparative sustainability-related data and information in the OFR section of this Annual Report is provided for FY2022, unless expressly stated otherwise, it has been adjusted and restated to exclude our interest in BHP Mitsui Coal (divested on 3 May 2022) and our Petroleum business (merger with Woodside completed on 1 June 2022).
While some of the land and tenements related to the Daunia and Blackwater mines were held by BMA pending transfer following completion, and certain land areas overlapping Blackwater remain held by BMA subject to transfer, given the Daunia and Blackwater mines were not under BMA’s control or operated for BMA’s benefit (except for periods prior to completion or where expressly stated in the relevant section), FY2025 and FY2026 data related to the land and tenements has been excluded from the OFR (as well as from pre-FY2025 comparative periods, as described above).
Sustainability-related data and information relating to the OZ Minerals Brazil assets has been excluded from the OFR unless expressly stated otherwise in the relevant section. Where data from OZ Minerals Brazil assets is included as required to meet legal and regulatory requirements or as necessary to meet applicable voluntary standards and benchmarks, that data has been prepared in accordance with former OZ Minerals standards (i) for the Centro Gold assets until completion of their divestment on 20 December 2024 and such data is included up until that date only; and (ii) for the Carajás assets until completion of their divestment on 2 April 2026 and such data is included up until that date only.
9.2 Material sustainability topics
As a member of the ICMM, BHP undertakes an impact materiality assessment (aligned with the GRI) to determine which sustainability topics are most material to our business, partners and stakeholders for inclusion in our sustainability-related reporting. Separately, BHP is required to report climate-related financial information in accordance with the Australian Corporations Act 2001 and AASB S2.
The FY2026 material sustainability topics identified for disclosure are largely consistent with FY2025, except that tailings storage facilities and value chain sustainability are not included FY2026.
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We recognise the importance of these topics to our business and stakeholders, and we disclose information about these topics on the BHP website. This includes a standalone report on our conformance with GISTM and our performance against the responsible sourcing and production standards we assess against such as Towards Sustainable Mining and the Copper Mark. This also includes the independent assurance reports detailing our performance against select criteria. Additionally, economic contribution was identified as a new material sustainability topic for FY2026.
> For more information on tailings storage facilities, value chain sustainability and economic contribution see our Value Chain Sustainability and Tailings Storage Facility pages at bhp.com/sustainability, the BHP Responsible Minerals Program Report 2026 at bhp.com/RMPR2026, the BHP Group Modern Slavery Statement 2026 at bhp.com/MSS2026 and the BHP Economic Contribution Report 2026 at bhp.com/ECR2026
>For more information on BHP’s reporting on climate-related financial information under the Australian Corporations Act 2001 and AASB S2 refer to Sustainability Report
>For more information on the process by which we identify and manage risk at BHP and our risk factors refer to OFR 6
Respecting human rights
We recognise that respect for human rights is interconnected across the material sustainability topics identified in our impact materiality assessment. We have the potential to cause, contribute to or be directly linked to human rights impacts through our activities and business relationships, and we are committed to conducting human rights due diligence across our own operations and in our supply chain.
Following our FY2025 assessment against the ICMM Human Rights Due Diligence Guidance Maturity Matrix, we established a three-year strategic improvement plan to strengthen our human rights approach. As a foundational element, in FY2026 we commenced an enterprise-wide Human Rights Saliency Assessment to identify and prioritise the most severe risks to people
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across our growth, operated assets and commercial portfolios. This was supported by a more targeted workforce diagnostic and community and Indigenous peoples human rights risk assessments at our operated assets (referenced in FY2025 as community and human rights impact and opportunity assessments). Once complete, these initiatives are intended to provide a structured basis for human rights risk prioritisation and inform our forward program to manage these risks.
>For more information on our approach to human rights and managing modern slavery risks in our operations and supply chain refer to the BHP Group Modern Slavery Statement 2026 available at bhp.com/MSS2026
>For more information on due diligence under our Responsible Minerals Program refer to the BHP Responsible Minerals Program Report 2026 at bhp.com/RMPR2026
Our social value scorecard
Our FY2026 scorecard performance, updates to metrics, and short-term milestones for FY2027 for all the pillars are provided on pages 44 and 45.
>For more information on our progress and pathway to our 2030 goals for each pillar refer to the relevant sections of OFR 9
>For more information on how the key metrics and milestones support progress towards our 2030 goals and the methods we use to measure progress refer to the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
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9.4 People
Our global workforce is central to our performance and long-term success.
Building capability and an enabled culture
We invest in our people to build capability and drive stronger performance. We provide early career and training pathways, including maintenance and production traineeships and apprenticeships, and continue to invest in professional talent through our intern and graduate programs. We also deliver leadership development programs and forums to strengthen leadership capability across our business.
We seek regular feedback from our employees and contractors through twice-yearly engagement and perception surveys. In March 2026, we had an 87 per cent employee response rate, with 83 per cent of surveyed employees responding favourably to engagement questions (FY2025: 83 percent). For wellbeing questions, 88 per cent of surveyed employees responded favourably (FY2025: 88 per cent). Over 11,000 contractors also provided feedback, with 84 per cent of surveyed contractors responding that they feel safe working at BHP (FY2025: 86 per cent).
Safe, inclusive and respectful workplaces
We believe inclusion is the foundation of a safe, respectful and high-performing workplace, and we value diversity for the breadth of perspectives and experience it brings. Our Inclusion Position Statement reflects this commitment and guides our approach.
>For more information on BHP’s Inclusion Position Statement refer to our Inclusion and diversity page at bhp.com/careers/inclusion-diversity
Gender representation1,2,3
At 30 June 2026, women represented 41.5 per cent of our employee workforce, an increase of 0.2 percentage points compared to the end of FY2025. In FY2026, 47.4 per cent of new hires were women.
We are also committed to improving the gender representation at all levels of BHP taking into account applicable local law. In FY2026, we set a measurable objective for achieving a year-on-year increase of women in leadership roles in Minerals Australia operations. At 30 June 2026, women represented 32.5 per cent of leadership roles in Minerals Australia, an increase of 3.5 percentage points compared to the end of FY2025. Across BHP, 39.3 per cent of people leaders were women, while senior executives included 42.1 per cent women.
Equitable pay is critical to achieving gender equality. We continue efforts to reduce the risk of systemic bias and deliver equitable pay for like-for-like roles. Employee remuneration data, including gender breakdowns, is disclosed in the BHP ESG Standards and Databook 2026, available at bhp.com/ESGSD2026.
Footnotes
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Indigenous employment
Indigenous employee participation is a key commitment we have made in every significant operating region. In FY2026, Minerals Americas operations in Chile increased their Indigenous employee participation to 11.7 per cent, having achieved their target of 10 per cent in FY2024, and in our Canada potash operations, Indigenous employee participation reached 20.2 per cent, achieving the FY2026 target of 20 per cent. In Minerals Australia operations, we achieved the measurable objective set for FY2026 of 9.3 per cent and we are progressing towards our FY2027 target of 9.7 percent (see the below infographic).
Footnotes
Disability
Globally, we continued to progress our Disability Action Plan 2025–2027. In Chile, people with a disability represented 2.8 per cent of our workforce (as at 30 June 2026). Chilean legislation requires at least 1 per cent representation.
>For more information on BHP’s Disability Action Plan refer to our case study at bhp.com/news/case-studies/2025/08/empowering-abilities
Employee relations
In Australia, recent industrial relations legislative reforms, including changes to enterprise bargaining and regulated labour hire arrangement orders, continued to impact BHP during FY2026.
Enterprise bargaining and union activity increased during FY2026, particularly in the Pilbara. Negotiations commenced for an enterprise agreement covering BHP’s operations at Port Hedland in Western Australia. Unions also lodged five Majority Support Determination applications, and union officials exercised rights of entry to workplaces at high levels. No production or operational time was lost as a result of protected industrial action during FY2026.
Subsequent to 30 June 2026, a small number of employees at Port Hedland exercised their right to participate in protected industrial action, organised by the Australian Manufacturing Workers’ Union, the Electrical Trades Union and the Australian Workers’ Union. Bargaining remains underway into FY2027 and progress continues to be made.
During the year, the Fair Work Commission issued Regulated Labour Hire Arrangement Orders requiring Operations Services to pay no less than BMA Enterprise Agreement 2022 rates of pay at BMA’s Goonyella Riverside, Peak Downs and Saraji mines. BHP sought judicial review of the decision and in April 2026 the High Court of Australia refused special leave to appeal, concluding the appeal process in respect of the matter. Payments to affected employees are being made in accordance with the Fair Work Commission Orders.
BHP was also served with a representative proceeding in the Federal Court of Australia regarding work arrangements for public holidays. The claim was filed on behalf of Operations Services employees who performed shiftwork between 23 December 2019 and 31 March 2023 across Minerals Australia. The proceeding remains at an early stage.
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Minerals Australia participated in seven collective bargaining processes in total and concluded one enterprise agreement. As at 30 June 2026, 25 enterprise agreements were in operation, with four subject to bargaining, including the BMA Enterprise Agreement 2022 which covers employees at BMA’s Goonyella Riverside, Peak Downs and Saraji mines. Bargaining also commenced for three new agreements.
>For more information on bargaining refer to the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
Companies in Minerals Americas participated in one collective bargaining process in FY2026. We also continued to monitor and implement applicable labour reforms, including pension reform and the gradual transition to the 40-hour work week. Further major labour reforms are expected to stall in Congress following the change of government resulting from the December 2025 election.
In October 2025, the BHP union federation (FESIN-BHP) was formed bringing together Union No.1 of Minera Escondida and Spence Workers, and Union No. 2 of Supervisors and Staff of Minera Escondida and Minera Spence. In April 2026, BHP CAS Union (representing specialists at the Santiago remote operations centre) also joined the BHP union federation. In addition, Union No 1 is seeking a declaration from the Chilean Labour Court that certain of our employing entities be treated as a single employer for labour law purposes. We continue to defend that proceeding, which remains at an early stage.
Payroll review
Remediation of identified pay issues
In FY2023, we identified and disclosed two issues with certain allowances and entitlements affecting some current and former employees in Australia. We are sorry that this happened and we remain committed to making this right.
The first issue involved certain employees having leave incorrectly deducted on public holidays. Remediation of affected employees is more than 95 per cent complete and we expect to close out remediation of this issue in FY2027.
The second issue involved certain employees at WAIO in Port Hedland who are entitled to additional allowances. We have completed remediation for this issue.
In 2023, we self-reported these issues to Australia’s Fair Work Ombudsman (FWO). In April 2026, BHP received a Notification of Outcome confirming the FWO has completed its investigation into these two issues and does not intend to take any further action at this time. BHP has been issued with a caution and the FWO has advised the matter regarding the two issues is now finalised.
>For more information refer to bhp.com/payroll-review
During the year, we continued to improve our global pay governance and control environment, aligned with the Pay Compliance Standard we launched in May 2025. We delivered enhancements across end-to-end pay processes, systems and data.
We are also continuing our historical pay assurance work across our Australian operations and are conducting further remediation where necessary.
Based on currently available information, remediation costs remain as reflected in the Group’s FY2023 financial results.
Our engagement with the FWO and other relevant government agencies will continue as this program progresses.
9.5 Health
We set minimum standards to identify, assess and manage health risks and their potential impacts on our workforce.
Occupational exposures
BHP seeks to eliminate or reduce occupational exposures so far as reasonably practicable through a structured health risk management approach. Health hazards are identified and risks assessed having regard to exposure limits protective of workers health. This is supported by a comprehensive program of personal monitoring and the ongoing implementation and verification of controls as we continue to optimise exposure reduction.
Control implementation is guided by the hierarchy of controls, with priority given to source-based exposure reduction before reliance on administrative controls and personal protective equipment (PPE).
We continue to actively seek opportunities to verify and strengthen the effectiveness of controls through innovation and optimisation. Recent initiatives include trials of microbial binding agents at Spence to agglomerate dust and reduce potential
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respirable crystalline silica (RCS) exposure, the increased use of real-time air monitoring to verify RCS control effectiveness at Spence and the optimisation of welding fume capture through on-torch extraction and local exhaust ventilation at BMA. While current control arrangements, including mandatory powered air purifying respirators use, are designed to reduce welding fume exposure, the focus remains on the optimisation of higher‑order engineering controls that capture or reduce welding fume at the source.
In FY2026, the number of employees and contractors potentially exposed to diesel particulate matter (DPM) and respirable crystalline silica (RCS) decreased by 26 per cent compared with FY2025 (see below infographic). This was primarily due to monitoring-led refinement of exposure groups at Copper South Australia operations, reducing the number of workers potentially exposed above the occupational exposure limit (OEL) for RCS by 44 per cent and DPM by 9 per cent. At Escondida, RCS potential exposure was reduced by approximately 21 per cent through a series of engineering and operational controls, including water and air line standardisation, dust suppression upgrades, and increased use of remote operations. At Spence, RCS potential exposure decreased by approximately 31 per cent following engineering improvements to the dust collection system and administrative changes to work allocation.
No employees or contractors were potentially exposed to coal mine dust above the OEL in FY2026 as has been the case since FY2021. Exposure numbers reflect potential exposure and do not account for protection provided by appropriate respiratory protective equipment (RPE).
Footnotes
>For more information on BHP's occupational illness health metrics, including TROIF, refer to OFR 1 Safety
>For supporting data, including on coal mine dust lung disease cases and potential occupational exposures, refer to the BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026
Psychosocial harm
BHP has embedded psychosocial risk management within its broader approach to risk management. Our ongoing focus is on prevention, early intervention, and sustaining cultural performance.
Psychosocial risks are managed locally by our assets and functions, supported by overarching enterprise governance and assurance. We take a prevention-focused approach with an emphasis on eliminating psychosocial risks so far as reasonably practicable. We focus on the early identification and management of psychosocial risks arising from hazards related to work design or management (such as workload, fatigue, leadership and organisational change), workplace interactions and behaviours (including bullying, racial and sexual harassment and assault), work environment, and plant and equipment.
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In FY2026, we:
Reports of sexual and racial harassment
Reports of sexual harassment and racial harassment are investigated by our Ethics and Investigations team, a business unit independent of our operations.
There was an 11 per cent decrease of reports of sexual harassment from 429 in FY2025 to 380 in FY2026, and a 17 per cent decrease of reports of racial harassment from 103 in FY2025 to 86 in FY2026.1 In FY2026, 56 per cent of sexual harassment reports and 57 per cent of racial harassment reports received through BHP’s misconduct reporting channels were logged by managers or leaders on behalf of the workforce.
During FY2026, 113 reports of sexual harassment,2 compared to 102 in FY2025 were established following investigation across BHP’s global operations, including conduct on-site, off-site and in offices.3 In addition, 27 reports of racial harassment, compared to 24 in FY2025 were established. 109 individuals responsible for sexual harassment and 22 responsible for racial harassment had their employment terminated (or were removed from site if a contractor) or resigned.
Of the 113 established sexual harassment cases:
People who may have been impacted by sexual harassment or racial harassment are offered specialised support by the Ethics Support Service. The response is guided by the impacted person’s preferences and the nature and severity of the alleged misconduct and may include investigation, training, mediation, facilitated conversations and line leader intervention. In FY2026, 71 sexual harassment and 25 racial harassment reports were resolved through non-investigative resolution pathways. A further 104 sexual harassment and 21 racial harassment reports were not investigated due to insufficient information or the wishes of the impacted person, including anonymous reports or where the impacted person chose not to participate.
Senior leadership and the Risk and Audit Committee of the Board receive reports with de-identified data on the number of complaints, nature of complaints, investigations and other resolution pathways, outcomes and timelines.
Footnotes
9.6 Ethics and business conduct
Our conduct
Our Code of Conduct (Our Code) applies to everyone who works for us, with us or on our behalf, including suppliers. Regular mandatory training on Our Code is undertaken by employees and contractors. Breaching Our Code is considered misconduct and grounds for disciplinary action, up to and including termination of employment.
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BHP treats reports of business conduct concerns with appropriate confidentiality and prohibits any kind of retaliation against people who make or may make a report (including reports to regulators), or who cooperate with an investigation. All forms of retaliation are considered misconduct. We have policy and process documents to support a ‘safe to speak up’ culture, including our BHP Whistleblower Policy.
Our Code is available in five languages and available at bhp.com/about/operating-ethically/our-code
Our BHP Whistleblower Policy sets out additional information, including protections available to people who make eligible disclosures under Australian law, and is available at bhp.com/-media/documents/ourapproach/operatingwithintegrity/taxandtransparency/240523_ bhpwhistleblowerpolicy
Employees and contractors can raise their concerns through a number of channels (including anonymously) or through leaders. Anyone, including external partners, stakeholders and the public, can lodge a concern in the form of a report, either online in our channels to raise misconduct concerns or via a 24-hour, multilingual call service.
In FY2026, 2,563 reports were received into BHP’s channels for raising misconduct concerns.1,4 Of these:
– 40 per cent were raised by leaders on behalf of someone else.
– Of the cases raised directly, 4 per cent were made anonymously.5
Of the reports closed during FY2026, 36 per cent contained one or more established allegations.3
Footnotes
> For more information on BHPs Minimum requirements for suppliers refer to bhp.com/suppliers
Anti-corruption
We are committed to contributing to the global fight against corruption in the resources industry. Group Compliance operates independently of our assets and regions. Our Vice President of Group Compliance reports quarterly to the Board Risk and Audit Committee on compliance issues and meets at least annually with the Risk and Audit Committee Chair.
We manage corruption risk through our anti-corruption framework and allocate resources based on risk. Our Group Compliance team conducts third-party due diligence and training, performs transaction monitoring utilising data analytics and AI, provides subject matter-specific input and support for non-operated joint ventures through relevant joint governance processes consistent
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with BHP’s role as a shareholder, and conducts risk assessments for our operated assets and functions. Identifying, assessing and managing corruption risk associated with growth opportunities remains a significant focus area.
>For more information on our ethics and business conduct refer to bhp.com/ethics
>For more information on how BHP manages anti-corruption risk refer to the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
9.7 Community
We strive to make a positive contribution to the communities where we operate and to understand, minimise and manage any adverse impacts from our activities.
In FY2026, we continued to build our understanding of co-creation across our business, a milestone in our social value scorecard. Co-creation brings partners together to integrate resources, knowledge and networks to address shared challenges and achieve improved outcomes for all. More than 100 BHP employees across our operated assets and functions participated in a co-creation training program to understand how they can incorporate more inclusive engagement and strengthen community participation in their work.
As our co-creation capability matures, measurement under the Thriving, empowered communities pillar of our social value scorecard is shifting from co-creation processes to outcomes focused on the education and skills required to enable communities to remain resilient beyond our direct involvement. Over time, this is expected to support stronger workforce and vocational pathways, enhanced community leadership, self-governance and co-creation capability.
To strengthen our management of impacts on communities and Indigenous peoples, in FY2026 we implemented a globally consistent methodology to assess risks across our operated assets. Referred to in FY2025 as community and human rights impact and opportunity assessments, and completed across all operated assets in FY2026, these assessments provide a comparable view of risk exposure and support earlier identification and prioritisation of adverse impacts. As the results are progressively integrated into asset- and Group-level risk frameworks, they are expected to support more informed and consistent decision-making, strengthen control effectiveness and improve impact prevention.
Community concerns, complaints and grievances
In FY2026, our operated assets globally received 95 concerns, complaints and grievances from communities. This represents a 14 per cent decrease compared with FY2025. This decrease was due to reductions at BMA and Metals Exploration due to reduced activity and the focus at our Jansen potash project on responding to blasting and road and rail complaints. The most frequent themes in FY2026 continued to be blasting, road and rail, and employee and contractor conduct and behaviour.
We seek to resolve and, where appropriate, remedy adverse impacts on community members that we have caused or contributed to through our operations. In FY2026, we continued to improve the accessibility of grievance mechanisms, and the consistency of reporting and investigation, through clearer guidance, targeted training and system enhancements. These improvements are designed to enable community members to raise concerns more easily, support more timely and consistent resolution and improve visibility of root causes to help prevent recurrence.
Additionally, in FY2026, BHP received an enquiry from the United Nations Office of the High Commissioner for Human Rights (OHCHR) Special Procedures relating to our investment in Antamina, a non-operated joint venture, to which we have responded. The enquiry raised certain human rights and community matters associated with Antamina’s operations.
>For more information on our social value scorecard refer to OFR 9.3
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>For more information on the results of community risk assessments, engagement with communities and our management of impacts on communities where we operate refer to the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
9.8 Indigenous peoples
Operating on or near Indigenous peoples’ traditional lands brings responsibility and opportunity. We respect Indigenous peoples’ right to consultation and recognise ‘free, prior and informed consent’ (FPIC) as an important process to safeguard their collective rights.
Indigenous partnerships
In FY2026, we continued to pursue our Indigenous Peoples Policy Statement commitments, including seeking FPIC for proposed new operations and capital projects that may potentially impact Indigenous peoples.
As reported in FY2025, we ‘partially met’ our FY2025 short-term milestone that ‘Indigenous voices and perspectives are incorporated into co-designed priorities in each region’, with two of the three countries in which we operate (Australia and Canada) publishing a co-designed regional Indigenous Peoples Plan (IPP) that incorporates the voices and perspectives of Indigenous peoples. In FY2026, we achieved this milestone through the development and implementation of the Chile IPP for FY2026–FY2030.
To support this development, we established an Indigenous Advisory Panel in Chile of seven external members to provide strategic and technical input into plan development and implementation. The Chile IPP is structured around the strategic pillars of community governance, transparency and participation, employability and economic empowerment and strengthening cultural heritage. We also introduced co-created social performance indicators and targeted engagement with communities, employees and industry to enable systematic monitoring of the effectiveness of the Chile IPP and ongoing feedback.
In Minerals Australia, we continued to implement our sixth Reconciliation Action Plan (RAP) during FY2026, with progress achieved across Indigenous employment pathways, leadership development, procurement and cultural capability. All targets under each RAP pillar are on track for delivery by FY2027.
In Canada, we continued to implement our Canada IPP during FY2026, with progress through structured, agreement-based engagement with six First Nations communities. Formal Opportunity Agreements and ongoing partnership mechanisms with participating First Nations communities support structured engagement, economic participation and long-term community development, with outcomes including housing, education and culture initiatives and strengthened relationships as Jansen transitions towards operations.
Regional FPIC Implementation Plans were developed during FY2026 as the primary mechanism to operationalise the processes through which we seek FPIC. These plans are specific to proposed new operations and capital projects and complement the broader partnership objectives of the IPPs. We are strengthening governance for these plans through clearer integration into our business processes related to capital projects. We also continue to strengthen internal standards, tools and governance to support effective identification, assessment, response and assurance with respect to Indigenous peoples’ risks and impacts across capital projects and operations. This includes the Indigenous Peoples Risk Assessment process referenced in FY2025, which continues to be piloted and refined.
Agreement-making remains a central component of our approach to respecting Indigenous peoples’ interests and rights, while recognising that its effectiveness depends fundamentally on the strength, continuity and quality of our underlying relationships with Indigenous peoples. In FY2026, we continued to improve our approach by embedding FPIC principles more consistently in agreements, including greater use of co-design consultation protocols, clearer governance pathways, and mechanisms to support ongoing consent over time. We are also progressing a more consistent approach to how agreements are implemented and integrated into broader business processes. This work is ongoing, and we continue to advance negotiations with Indigenous peoples.
In our plans, partnerships and agreements, we continue to respond to the feedback received from the FY2024 inaugural assessment of the health of our relationships with a range of Indigenous partners. Since this assessment we have focused on deepening and strengthening our engagement and incorporating Indigenous partner feedback into our plans. While progress has been made, challenges remain, including navigating complex and diverse Indigenous rights and governance contexts, addressing historical issues and trust deficits, and working through evolving expectations and tensions that can arise during agreement negotiations and implementation. The next assessment is scheduled for FY2027.
In FY2026, we maintained partnerships with Indigenous businesses across all operating regions. Compared with FY2025, our direct global spend with Indigenous businesses increased by 18 per cent and totalled US$1,007 million across 285 vendors, comprising Australia US$583 million, Canada US$381 million and Chile US$41 million.
>For more information on Indigenous engagement and agreements for our operated assets and our management of impacts on Indigenous peoples where we operate refer to the BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026
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>For more information on Indigenous employee participation refer to OFR 9.4
>For more information on our regional Indigenous Peoples Plans refer to bhp.com/sustainability/Indigenous-peoples
9.9 Nature and environmental performance
Managing nature-related risks and opportunities, including biodiversity and environmental performance, is an important strategic issue for BHP, and supports our nature-related and social value goals, and ability to create long-term value.
> For more information on oversight of nature and environmental performance by management and the Board refer to the Nature and environmental performance page at bhp.com
> For more information on environmental risk refer to OFR 6
Nature-related goal and targets
Our 2030 Healthy environment goal is to contribute to global nature-positive action by having at least 2 million hectares of land and water we steward1, 2 under conservation, restoration or regenerative practices by FY2030. This is an area approximately equivalent to 30 per cent of the land and water we stewarded2 as at FY2023. In doing so we will take into account areas of highest ecosystem value both within and outside our own operational footprint, in partnership with Indigenous peoples and local communities.
To support delivery of the Healthy environment goal, projects will typically progress through three phases: opportunity identification, project development (where projects are considered ‘in plan’) and formal management, where areas are managed under a formal management plan that includes conservation, restoration or regenerative practices. Project development includes engagement and partnership planning with Indigenous peoples and/or local communities, recognising that establishing shared objectives and stewardship approaches is an important foundation for supporting durable outcomes over time.
Voluntary action on nature is a dynamic and fast-evolving area, and we continue to monitor developments. Since we set our Healthy environment goal in 2022, the concept of ‘nature positive’ has continued to develop, including through updates to external definitions, such as the Nature Positive Initiative definition adopted by the Taskforce on Nature-related Financial Disclosures (TNFD) and through the publication of relevant industry frameworks, such as the ICMM Nature Position Statement. We have updated the wording of our Healthy environment goal and one of its metrics to reflect this evolution, including recognition that ‘nature positive’ is a global, collective effort to which BHP can contribute.
We have also made our Healthy environment goal more transparent by setting a fixed area of at least 2 million hectares under conservation, restoration or regenerative practices as the goal, replacing the less tangible wording of ‘at least 30 per cent’. We selected this figure as the equivalent to approximately 30 per cent of the land and water we stewarded in FY2023, being the first performance year of our 2030 goals. The FY2023 stewardship footprint, used as the basis for this equivalency, includes former OZ Minerals Australian assets (acquired in May 2023) and BMA’s Daunia and Blackwater operations (divested in April 2024). We have updated the wording of one of the key metrics for the Healthy environment goal in our social value scorecard to reflect this change. Our overarching objective remains to contribute to global nature-positive action, with the level of ambition reflected by our goal unchanged.
While BHP currently stewards all lands and waters that contribute towards our Healthy Environment goal, we recognise that the optimal outcomes for nature in some circumstances may be achieved where an area is transferred to its most appropriate stewards of the conservation, restoration or regenerative practices, such as Indigenous groups, government bodies or specialist conservation organisations. Accordingly, in pursuing the Healthy environment goal, we may relinquish land or water stewarded by BHP between FY2023 and FY2030 where this would support stronger and more durable long-term conservation, restoration and regenerative practices. We have also adjusted the focus in the original wording of the goal on areas of ‘highest ecosystem values’ to taking into account those values to enhance opportunities for Indigenous and community participation.
Our context-based water targets (CBWTs) are informed by independent Water Resource Situational Analyses (WRSAs), which identify shared water challenges and priority water-related risks at a catchment level, together with our own risk assessments. CBWTs are developed at an asset level and include milestones to track their achievement by FY2030. We released the WRSA for one of our legacy assets, Elliot Lake, in FY2026.
The Western Australia Nickel (WAN) CBWT and milestones have been removed due to changes in regional catchment governance since the CBWT was set in FY2023. The Tjiwarl Aboriginal Corporation has entered into an Indigenous Land Use Agreement with the Western Australian Government, which includes the establishment of the Tjiwarl Water Study and a framework to develop a Tjiwarl Water Plan. As a result, the opportunity for WAN is to support governance initiatives led by the Tjiwarl Aboriginal Corporation rather than lead those initiatives as envisaged by the CBWT. Given WAN’s operations remain temporarily suspended, BHP has not established an alternative public CBWT for WAN at this time. WAN intends to continue to contribute to regional water stewardship through participation in the Northern Goldfields water working group, and by providing relevant data and technical input to support Tjiwarl-led water planning processes.
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Delivery of the Copper South Australia FY2030 CBWT milestone to cease abstraction from Wellfield A is dependent on the timing of the Northern Water Project, which is now expected to become operational from 2032. BHP continues to engage constructively with the South Australian Government to support delivery of Northern Water, which is expected to provide a long-term water supply solution for the region and support future Copper South Australia growth options.
> Our CBWTs and WRSAs can be found on the Shared water challenges page at bhp.com
Footnotes
Key actions taken in FY2026
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> For information on the Jackboot nature project refer to the Copper South Australia, Healthy environment goal partnership case study at bhp.com/news/case-studies and the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
Footnotes
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A small amount of terrestrial water (~5 ML during FY2026 or approximately 12 kL per day) has been supplied to the Cerro Colorado site for drinking water, sanitation and hygiene purposes by a local water utility since Cerro Colorado entered temporary care and maintenance in December 2023.
Environmental settlement agreements
In Chile, specific environmental settlement agreements relate to historical groundwater extraction activities at the Monturaqui, Lagunillas and Salar de Punta Negra systems. The implementation of these environmental settlements is ongoing, in accordance with court-approved frameworks and applicable regulatory processes. Delivery is overseen by the established governance bodies, and progress is periodically reported to the environmental court and relevant stakeholders. Specific actions delivered in FY2026 regarding the Monturaqui-Negrilar-Tilopozo settlement agreement include the establishment of the governance body overseeing the implementation of the agreement and conversion of Escondida’s water rights in the Monturaqui aquifer to a non-extractive (conservation) use.
Under the Salar de Puntas Negras (SPN) settlement agreement progress was made during FY2026 on the implementation of Phase 1 activities, including the continued implementation of the governance board and progress in the environmental, hydrological, ecological, and socio-cultural studies required to support the long-term management of the SPN Salt Flat. Phase 2 has been initiated within the governance board and is focused on the development of the SPN management plan, which will guide the implementation, monitoring and continuous improvement of the agreement’s conservation and restoration measures.
FY2026 key actions under the Lagunillas settlement agreement included completion of field studies to support understanding of wetland evolution under climate change scenarios, progress on the carbon compensation program, advancement of the high-Andean wetland conservation initiative through the selection and assessment of potential sites, and implementation of a public environmental data platform to support transparency and stakeholder access to information.
> For information on the Samarco non‑operated joint venture and financial impacts related to the tailings dam failure refer to Financial Statements note 4 ‘Significant events – Samarco dam failure’
Key FY2026 nature and environmental performance insights
>For more information on BHP’s environmental performance data, including progress on areas under conservation, restoration or regenerative practices, air emissions and fines, refer to the BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026
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9.10 Climate change
Global warming presents both physical and transition risks to our operations, value chain and the communities where we operate. Scientific evidence indicates that warming of the climate is unequivocal and human influence is clear, with impacts expected to intensify over time. We recognise our important role in supporting the transition to a lower carbon economy.
This OFR 9.10 Climate Change reflects selected extracts from the corresponding disclosure in the Australian Annual Report. Other disclosures have been omitted from this Form 20-F. Only information that is included in, or expressly incorporated by reference into, this Form 20-F shall be deemed to form a part of this Annual Report.
Our disclosures and approach to reporting
In August 2024, we published our second Climate Transition Action Plan (CTAP 2024) that included our GHG emissions targets and goals and strategy to pursue them, while recognising that our progress would not be linear. Certain aspects of our assumptions and plans have been updated, as outlined in our Annual Report 2025 and our Sustainability Report included in this Annual Report.
Extracts of the Sustainability Report, on pages 55 to 92, contains disclosures in accordance with the Australian Corporations Act 2001 and AASB S2. In accordance with the UK Listing Rules as set by the UK Financial Conduct Authority, we believe our disclosures are consistent with the four recommendations and 11 recommended disclosures of the Task Force on Climate-related Financial Disclosures (TCFD). The Navigating our TCFD disclosures table on page 53 sets out the TCFD’s recommended disclosures, grouped under the four recommendations, and where our aligned disclosures can be found within this Annual Report and the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026 (refer to the Our response column). The TCFD recommended disclosures for FY2026 that have been published in our ESG Standards and Databook is one metric used to meet two instances related to TCFD All Sector Guidance on Metrics and Targets paragraphs (a) and (b). This content has not been provided in this Annual Report as we use our ESG Standards and Databook to provide more granular data related to our annual GHG emissions inventories.
Table 1 Navigating our TCFD disclosures
|
|
Our response |
||||||
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|
This Annual Report: |
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TCFD recommended disclosures
|
|
Operating and Financial Review |
|
Corporate Governance Statement and Remuneration Report |
|
Sustainability Report |
|
ESG Standards and Databook 2026 |
Governance: Disclose the organisation’s governance around climate-related risks and opportunities. |
||||||||
a) Describe the board’s oversight of climate-related risks and opportunities |
|
- |
|
Page 101 |
|
Pages 85 to 86 |
|
-
|
b) Describe management’s role in assessing and managing climate-related risks and opportunities |
|
- |
|
|
|
Page 86 |
|
-
|
Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning where such information is material |
||||||||
a) Describe the climate-related risks and opportunities the organisation has identified over the short, medium, and long term |
|
Page 54 |
|
- |
|
Pages 64 to 71 |
|
-
|
b) Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning |
|
Page 54 |
|
- |
|
Pages 64 to 71 |
|
-
|
c) Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario |
|
- |
|
|
|
Pages 72 to 75 |
|
-
|
Risk Management: Disclose how the organisation identifies, assesses, and manages climate-related risks. |
||||||||
a) Describe the organisation’s processes for identifying and assessing climate-related risks |
|
Page 22 |
|
- |
|
Pages 64 to 65 |
|
-
|
b) Describe the organisation’s processes for managing climate-related risks |
|
Page 22 |
|
- |
|
Pages 66 to 75 |
|
-
|
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management |
|
Page 22 |
|
- |
|
Page 76 |
|
-
|
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Value chain GHG emissions (Scope 3 emissions)
We have a long-term goal of net zero Scope 3 GHG emissions by CY2050. Achievement of this goal is uncertain, particularly given the challenges of a net zero pathway for our customers in steelmaking and we cannot ensure the outcome alone. Accordingly, we seek to influence progress through collaboration, technology development and customer engagement.
Climate-related risks and opportunity
BHP has applied judgement in identifying the climate-related transition and physical risks and opportunity outlined in Table 2 below. This disclosure includes the risks and opportunity that BHP has determined could reasonably be expected to affect its cash flows, its access to finance or cost of capital over the short, medium or long term and our related strategy and management actions.
Table 2 – Identified climate-related risks and opportunity
Transition risk 1 |
Policy, legal and reputational |
BHP is exposed to increasing scrutiny and evolving climate-related policy, regulatory and legal risks associated with GHG emissions. Key risks include stricter government decarbonisation policies, increased potential for climate-related litigation and other legal risks, and changing and divergent climate change-related policy settings across relevant jurisdictions. This risk could give rise to higher costs associated with carbon pricing, regulatory compliance, mitigation activities and legal matters, which may reduce future profitability and cash flows and potentially increase the risk of impairment. It may also impact BHP’s licence to operate, access to capital and ability to maintain stakeholder trust. |
|
Transition risk 2 |
Availability and commercial viability of operational decarbonisation technology |
BHP’s ability to achieve its operational GHG emissions (Scopes 1 and 2 emissions from its operated assets) Group-level climate-related targets, goals and strategies is dependent on the timely availability, selection, and effective and safe implementation of enabling technologies and low‑carbon inputs and their commercial viability. Delays, failed trials, supply constraints or suboptimal technology options could slow operational decarbonisation, impact our ability to achieve our operational GHG emission medium-term target and long-term net zero goal and increase our operational decarbonisation and/or operating costs. This risk is focused on our operational GHG emissions reduction and excludes technologies relating to value chain decarbonisation. |
|
Transition risk 3 |
Accelerated decrease in steelmaking coal demand |
This risk reflects a potential acceleration of timeline for long-term decline in steelmaking coal demand arising from earlier-than-assumed uptake of lower GHG emissions technology in the steelmaking sector. BHP continues to expect demand for steelmaking coal to remain robust for decades but the potential exists for blast furnace iron making, which depends on coke made from steelmaking coal, to be displaced at scale by emergent technologies faster than we expect, which presents a strategic risk that could further impact the demand outlook for steelmaking coal and prospects of our steelmaking coal business and the Group’s portfolio. |
|
Transition opportunity 1 |
Copper demand |
The more the global economy progresses in a transition toward net zero, the more important the composition of BHP’s commodity portfolio will become, reflecting its suitability to support the expected increase in demand for certain commodities arising from global decarbonisation and the energy transition. Specifically, copper is a key contributor in electrification and decarbonisation trends across the global economy. |
|
Physical risk 1 |
Physical climate-related risks |
A changing climate could exacerbate and trigger physical climate-related risks for BHP’s operations and assets and non-operated joint venture investments, workforce, communities, supply chains, customers and other third-party partners. These risks arise from both the increasing severity and/or frequency of acute events (extreme climatic events, such as floods, cyclones and heatwaves) and chronic changes (such as prolonged drought, rising temperatures, and incremental increases in extreme heat days). The potential effects of these events on our business model and value chain may be both direct and indirect. |
|
>For more information on climate-related risks and opportunities including current and anticipated financial effects, and our strategy and management actions refer to Sustainability Report 3 Strategy for managing climate-related risks and opportunities
>For more information on the process by which we identify and manage risk at BHP and our risk factors refer to OFR 6
This Report is made in accordance with a resolution of the Board. /s/ Ross McEwan Ross McEwan Chair Dated: 18 August 2026 |
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Sustainability Report
This Sustainability Report reflects selected extracts from the corresponding disclosure in the Australian Annual Report. Other disclosures have been omitted from this Form 20-F. Only information that is included in, or expressly incorporated by reference into, this Form 20-F shall be deemed to form a part of this Annual Report. Certain page number references have not been modified from the extracts in the Australian Annual Report.
These Sustainability Report extracts are intended to provide information from a perspective that may be different to that which is applicable to other disclosures, including our filings with the US Securities and Exchange Commission (US SEC).
For instance, materiality, as used in the context of climate-related and/or sustainability-related disclosures may differ from the materiality standards applied by particular reporting regimes, including as defined for US SEC reporting purposes. Any issues identified as material for purposes of climate-related and/or sustainability-related matters in this Sustainability Report are therefore not necessarily material for US SEC reporting purposes or for filings under other reporting regimes.
Progressing decarbonisation through technology and investment
BHP's Australian Annual Report includes its first Sustainability Report containing our climate‑related disclosures in accordance with the Australian Corporations Act 2001 (Cth) (Corporations Act) and the Australian Accounting Standards Board’s Australian Sustainability Reporting Standard AASB S2: Climate‑related Disclosures (AASB S2). This Form 20‑F reproduces only selected extracts from that Sustainability Report and does not constitute the complete AASB S2 Sustainability Report.
BHP is a leading producer of commodities vital in supporting global decarbonisation. We are the world’s largest producer of copper,1 essential for electrification and for the energy transition. We are a major producer of iron ore and steelmaking coal for steel required for decarbonisation infrastructure. In addition, we expect to begin producing potash from the middle of CY2027, which can assist with more sustainable farming and food production as the world’s population grows.
We believe demand for these materials will continue to grow.
BHP is steadfast in our commitment to pursue the decarbonisation of our operations. We do so from a strong position. Our operated assets are already among the lower greenhouse gas (GHG) emission intensity mines in the world.2
Footnotes
1. BHP reported copper production on a consolidated basis for the year ended 30 June 2026 (FY2026) relative to competitor reported copper production data for CY2025 on a consolidated basis compiled from WoodMackenzie and publicly available information (company reports). Competitors include: Anglo American, Antofagasta, Codelco, Freeport, Glencore, Rio Tinto, Southern Copper, Teck.
2. For CY2025, the GHG emissions intensity of our production of our commodities is estimated to rank in the first quartile for our iron ore and copper and sitting across first and second quartiles for steelmaking coal mines of global mining operations analysed by CRU. This analysis is based on CY2025 data from CRU (as CRU data is prepared on a calendar year basis) and includes CRU’s assumptions and estimates of BHP’s operations. For more information on the calculation refer to the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
Moving away from diesel at our operations
Following significant progress in reducing emissions from electricity, diesel displacement is the largest lever to reduce operational GHG emissions across BHP in the future. Electrification remains our preferred long‑term pathway to displace diesel.
Like other miners around the world, BHP’s operations have relied on diesel for material movements for over 50 years. Battery-electric mining systems required for large-scale operations are still being developed and validated. While significant progress has been made, successful deployment of electrified solutions requires the integration of:
into an operating system capable of delivering safe, reliable and productive outcomes at scale to meet BHP requirements.
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We currently do not expect deployment across our operations until after FY2030. To address these challenges, we are working with OEMs and technology partners through a structured program of proof-of-concept trials and pilot projects.
These activities are designed to test technology performance in real mining environments. They strengthen our understanding, support ongoing technology development and build the knowledge and capability required for future deployment decisions.
In Western Australia, we commenced proof-of-concept trials of battery-electric equipment in collaboration with OEMs. At Jimblebar, we are testing two Caterpillar Early Learner battery‑electric haul trucks, one of the first trials of Caterpillar’s battery‑electric haul truck technology in a mining environment.
A key industry challenge is maintaining battery-electric truck productivity while managing charging requirements. In FY2027, we expect to commission high-power static charging infrastructure and Caterpillar’s Dynamic Energy Transfer (DET) technology at the Jimblebar test facility. Caterpillar’s DET and other forms of innovative dynamic charging could enable haul trucks to receive power while operating on haul roads. We are evaluating both static and dynamic charging because a combination of these technologies could help address some of the current limitations of battery chemistries and charging downtime to improve the viability of large battery-electric truck fleets.
While the Early Learner truck and energy transfer solutions remain under development and are not yet commercially available, these trials will test key components associated with electrifying a mine in the Pilbara, one of the harshest and most demanding operating environments in the world. As with any new technology, we don’t expect progress to be in a straight line, and we will learn as we go.
Escondida continues to evaluate the integration of 360-tonne battery-electric haul trucks and supporting charging infrastructure as part of assessing potential pathways to displace diesel. However, battery-electric models for this class of truck, which are larger than those deployed in the Pilbara, are not yet available for trials.
We also commenced a trial involving two Wabtec FLXdrive battery-electric locomotives in Port Hedland and took delivery in Perth of two Progress Rail battery-electric locomotives for commissioning and testing in FY2027. BHP expects to be one of the first miners globally to be trialling two suppliers’ technologies for these locomotives side by side.
Our future electricity demand
We expect electricity demand to increase significantly as diesel‑fuelled mining and rail equipment is electrified across our operations. Our approach is to develop future power solutions in alignment with timing for the deployment of electrification technologies and to work collaboratively with industry and government to progress the development of the broader energy ecosystem.
For example, WAIO’s inland mines are our only non-grid connected operations, with electricity supplied by a highly efficient combined gas cycle turbine plant. To meet expected future electricity demand, we are progressing long-lead-time work, establishing partnerships to explore large-scale energy solutions for future mining, rail and port electrification and participating in the Pilbara Electricity Transition Plan to explore potential common user transmission solutions. Work like this aims to build confidence in the power infrastructure, systems and partnerships required to support operational decarbonisation at scale in the Pilbara.
Managing methane
In FY2026, methane accounted for 12 per cent of our Scope 1 and Scope 2 emissions. At BMA’s sole underground steelmaking coal mine, drainage methane is already captured and abated when safe and practicable. However, abating fugitive methane from open-cut mines presents a greater challenge, with no currently proven technologies available at scale. To address this gap, we commenced a proof-of-concept trial of novel methane gas drainage at an operating open-cut mine, which will continue into FY2027. In FY2026, gas exploration drilling was completed at Saraji, with the remainder of the program on track for completion in FY2027. The aim of this drilling program is to enhance our understanding of methane concentrations and gas reservoir characteristics. Together, the purpose of this work is to deepen our understanding of methane emissions and to build confidence in potential future abatement solutions.
Learning through collaboration
We continue to monitor industry developments closely, collaborate with OEMs, suppliers and industry peers, and assess the potential role of complementary and bridging technologies as part of developing our longer-term pathway to net zero operational GHG emissions.
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In addition to our existing technology development activities, we are establishing relationships with a broader range of equipment manufacturers and technology providers to explore alternative or additional potential pathways to reduce operational GHG emissions. So far, we have signed a Global Framework Agreement with XCMG and Memorandums of Understanding (MoUs) with Siemens Mobility, BYD and CATL.
We also collaborate through the International Council on Mining and Metals' (ICMM) Innovation for Cleaner, Safer Vehicles (ICSV) initiative and CharIN to help accelerate the development and deployment of lower GHG emissions mining equipment. Through these collaborations, we contribute to industry efforts to address common technical and operational challenges associated with the transition to electrified mining fleets. Through these forums, BHP is also helping advance consistent industry approaches to testing, safety, engineering controls and risk management for high-energy battery-electric systems, to support the safe and efficient deployment of electrified mining equipment.
Investing in the next phase of operational decarbonisation
Our spend on operational decarbonisation remains aligned to our program of work. Our Climate Transition Action Plan (CTAP) 2024 contemplated significant advances in electrification before FY2030. However, as technologies have progressed and operational experience has increased, our understanding of the deployment requirements has consequently improved. As stated in our Q3 FY2025 Operational Review and Annual Report 2025, development of relevant technologies has been slower than previously expected. As technology readiness progresses, BHP anticipates our continued decarbonisation efforts will result in spend of at least US$4 billion (incremental, nominal) in the 2030s. Further expenditure is subject to greater uncertainty, reflecting lower technology readiness for electrification of some diesel displacement equipment and the additional abatement technologies required to address residual GHG emissions. For more information refer to Transition risks 1 and 2 in Table 1 on page 66.
We continue to assess decarbonisation projects and associated spend through our Capital Allocation Framework and our commitment to safe and productive operations.
Reduction of value chain GHG emissions
While we work to decarbonise our operations, we continue to support our customers, suppliers and shippers to do the same.
To support our steelmaking customers, we are:
We are focused on our top 500 direct suppliers by spend, and our strategy encompasses three areas of focus: selective purchasing, supportive engagements, and measurement and monitoring of GHG emissions from our direct suppliers.
This Sustainability Report is prepared on a consolidated basis in respect of BHP Group Limited (BHP or the Company) together with our controlled entities (Group) for the year ended 30 June 2026. Both current and anticipated financial effects represent BHP share, aligned to Financial Statement presentation, unless otherwise noted. Defined terms are used in this Sustainability Report (without capital letters), including terms defined by AASB S2. Significant judgements have been made in producing the disclosures within this Sustainability Report. We identify the information that is subject to uncertainty and/or limitations and where BHP has elected to apply reliefs and/or exemptions in producing this Sustainability Report. Further details associated with defined terms and these judgements, uncertainties and interpretations are outlined in 7.2 Basis of preparation on page 87.
In August 2024, we published our second Climate Transition Action Plan (CTAP 2024), available at bhp.com/CTAP2024, that provided an overview of our climate change strategy, commitments, targets, goals and forward-looking plans. Our climate-related targets and goals were approved by the Board and are reviewed by the Board and its Committees through at least annual performance updates, the Cash and Deferred Plan (CDP) scorecard and the social value scorecard.
The climate-related targets and goals published in the BHP Annual Report 2025, our CTAP 2024 and in this Sustainability Report are unchanged (see section 5 Metrics and targets on page 76). Certain aspects of our assumptions and plans relating to decarbonisation since our CTAP 2024 have been updated.
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This section provides information about BHP’s strategy for managing climate-related risks and opportunities.
3.1 How we resource our response to climate-related risks and opportunities
BHP resources our plans and response to climate-related risks and opportunities where capital allocation is required through the Capital Allocation Framework (CAF). The CAF provides flexibility to adjust capital spending and project phasing to accommodate evolving risks, market dynamics and cash flow generation.
Operational GHG emission reduction projects are included in the ‘maintenance capital category’ within the CAF, along with other forms of risk reduction, asset integrity, compliance and major, minor and sustaining projects intended to preserve the ability to generate value at our operated assets. The CAF prioritises critical operational GHG emission reduction projects prior to organic development and other options for excess cash flow, including those that contribute to our medium-term target.
Individual projects must also justify the investment based on abatement efficiency, technology readiness, maturity, operational impact and relative economics.
BHP assesses whether capital allocation is needed to strengthen resilience to climate‑related physical risks by embedding climate considerations in our asset planning and operational investment decisions. This includes investment in infrastructure resilience, such as flood protection and water security, and the consideration of climate-related physical risks within both sustaining capital and major project approvals.
In addition to capital expenditure, the Group resources our response to manage and respond to climate-related risks and opportunities through operating costs (e.g. renewable energy consumption) and human resourcing, which is managed through annual budgeting and planning processes.
Information on financial effects, including capital and operating expenditure, is outlined in Table 1, disaggregated for the climate-related risks and opportunity BHP has identified.
3.1.1 Internal carbon prices
We embed carbon prices within operational asset planning, asset valuations and operational decision-making, including through the CAF and in the prioritisation of operational GHG emission reduction projects. Investment decisions and asset valuations used for the purposes of impairment testing consider carbon price assumptions in relevant regions by applying a carbon price to estimated unmitigated Scopes 1 and 2 GHG emissions over the life of the respective operation.
Our internal carbon prices are derived from internal analysis, which is reviewed regularly and incorporates the latest regional policy, regulatory and market developments. In determining BHP’s strategy and carbon price forecast, factors including a country’s current and announced climate policies and targets, and societal factors, such as public acceptance and demographics, are considered. As national-level climate ambition differs by country or region and will likely evolve over time, we use regional carbon price trajectories from today to FY2050. Carbon prices are expected to rise over time, with BHP’s internal carbon prices ranging from US$0 to US$100 per tCO2e in FY2026, US$0 to US$146 per tCO2e in FY2030 and US$0 to US$250 per tCO2e by FY20501. All prices stated are in real terms (July 2026) and the range considers the different regions where BHP and our key customers operate. (see Transition risks 1 and 2 in Table 1 on page 66 for additional information).
Future carbon prices are a significant area of judgement and subject to inherent uncertainty driven by a range of external factors, including the pace of policy implementation, the development of compliance carbon markets and the deployment of lower GHG emissions technologies.
Footnote
BHP has applied judgement in identifying the climate-related risks and opportunities outlined in Table 1 below. For the purposes of this Sustainability Report, BHP refers to these as identified climate-related risks and opportunity. This disclosure does not represent an exhaustive list of all climate-related risks and opportunities facing BHP. Rather, Table 1 includes those risks and opportunities that BHP has determined could reasonably be expected to affect our cash flows, access to finance or cost of capital over the short, medium or long term.
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For non-operated joint venture investments (Antamina, Vicuña, Resolution Copper and Samarco) (NOJVs), we periodically undertake a process with respect to our investment in each NOJV to define, review and update key focus areas potentially material to our investment. We have not identified any climate-related risks and opportunities relevant only to an NOJV investment that could reasonably be expected to affect BHP’s cash flows, access to finance or cost of capital over the short, medium or long term. We have otherwise considered potentially material information for our NOJV investments with respect to our identified climate-related risks and opportunity based on information we have available (e.g. via NOJV governance structures) for our key focus areas review and assessed based on BHP’s economic exposure as an investor in the NOJVs. This is reflected in our identified climate-related opportunity, as described in Table 1.
The climate-related risks and opportunity listed in Table 1 were identified from a combination of internal and external inputs. An initial set of climate-related risks and opportunities were identified primarily drawing from BHP’s Risk Framework (see How we manage risk in OFR 6 on page 21) and associated material1 risk profile (for risks) and strategic planning processes (for opportunities). At BHP, we take an enterprise approach to risk management and operate under one Risk Framework for all risks and opportunities (see How we manage risk in OFR 6 on page 21), including climate-related transition and physical risks and opportunities that may impact delivery of our strategy, our operations or our value chain. This ‘long list’ was then aggregated thematically to create the identified risks and opportunities representing broad areas of climate-related risk or opportunity. Elements from the ‘long list’ of risks and opportunities were used to identify additional information regarding the nature of each risk and opportunity, and sources of exposure to provide context and detail for users of this Sustainability Report. Our identified climate-related risks and opportunity were reviewed against external benchmarking and BHP’s historical reporting, alongside engagement with our Investor Relations team and other relevant subject matter experts to consider external perspectives, including expectations of primary users of our general-purpose financial reports. The outcomes of our climate-related scenario analysis were also considered as a subsequent cross-check to test the suitability of our identified climate-related risks and opportunity. Aspects of our identified climate-related risks and opportunity are also incorporated into our risk factors described in OFR 6 on page 22. Further detail regarding how identification, assessment and monitoring of climate-related risks and opportunities is incorporated into our Risk Framework is described in section 4 Risk management on page 76.
Demand-related risks and opportunities for the Group’s commodities were considered in determining the identified climate-related risks and opportunity. While steelmaking coal (risk) and copper (opportunity) were included, other commodities did not meet the criteria for inclusion. Energy coal demand risk was considered in the ‘long list’ of potential climate-related risks, however given BHP’s plan to cease mining at Mt Arthur Coal in FY2030 and the relatively small contribution of NSWEC to the Group’s EBITDA, we determined it was not reasonably expected to affect our prospects and so have not included it as an identified climate-related risk for the purposes of this Sustainability Report (see 3.4 Equitable Change and Transition ‒ New South Wales Energy Coal on page 75 for information regarding equitable change and transition at NSWEC). Similarly, potential opportunity associated with increased uranium demand was considered but not included, as uranium is a by-product of the Group’s copper operations and not a core commodity. Increased demand for potash was also considered, however we consider potash demand to be primarily driven by population growth and land competition, and while there are climate-related factors, these are considered less material drivers relative to the identified copper opportunity. Finally, increased demand for nickel was considered but not identified as a climate-related opportunity at this point in time, reflecting the current temporary suspension of Western Australia Nickel operations.
Our identified climate-related risks and opportunity detailed in Table 1 are:
Table 1 provides information on the nature of each identified climate-related risk and opportunity, the related time horizons and actual or potential impacts, and the associated current and anticipated financial effects.
Refer to 7.4.3 Time horizons on page 88 for how we define our short-, medium- and long-term time horizons referenced in this Sustainability Report, which are aligned to our strategic planning and risk management. Refer to 7.4.4 Current and anticipated financial effects on page 88 for how we define the current and anticipated financial effects referenced in this Sustainability Report.
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Changes to BHP’s climate change strategy, global decarbonisation trends or developments in climate modelling (including in relation to climate-related physical risks) may impact BHP’s significant judgements or key estimates in addition to financial results, cash flows and the carrying values of certain assets and liabilities in future reporting periods. Based on current information, none of the identified climate-related risks or opportunity are expected to result in a material adjustment to the carrying amounts of assets and liabilities disclosed in the Group’s Financial Statements within the next annual reporting period. Refer to Financial Statements note 16 ‘Climate change’ on pages 157 to 159 for more information. BHP’s strategy to continue to manage climate-related risks and opportunities, including any investment and disposal plans and planned sources of funding, and their effects on our financial position may evolve over time. Material anticipated financial effects over the short, medium and long term, as currently assessed, including potential impacts on future investment and capital expenditure, are outlined in Table 1.
Table 1 – Our identified climate-related risks and opportunity
Transition risk 1: Policy, legal and reputational |
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Time horizon: medium-, long-term |
Related risk factor (see OFR 6): Portfolio strategy, Access to markets, Environment |
Context BHP is exposed to increasing scrutiny and evolving climate-related policy, regulatory and legal risks associated with GHG emissions. Key risks include: • stricter government decarbonisation policies (e.g. Australia’s Safeguard Mechanism (SGM)) • increased potential for climate-related litigation and other legal risks • changing and divergent climate change-related policy settings across relevant jurisdictions This risk could give rise to higher costs associated with carbon pricing, regulatory compliance, mitigation activities and legal matters, which may reduce future profitability and cash flows and potentially increase the risk of impairment. It may also impact BHP’s licence to operate, access to capital and ability to maintain stakeholder trust. Our mining operations in Australia, Chile and Canada, as well as other growth-focused jurisdictions, may be exposed under this risk. Assets or business activities most vulnerable to this risk and associated metric • The FY2026 carrying value of property, plant and equipment, intangible assets and goodwill within the groups of Cash Generating Units (CGUs) that include facilities covered by the Australian SGM (the most material GHG emission reduction policy relevant to BHP) and that were considered as part of BHP’s impairment assessment was US$51.4 billion, representing 63 per cent of the Group’s total carrying value of property, plant and equipment, intangible assets and goodwill. Strategy and management actions • Progress towards and delivery of our operational and value chain GHG emissions targets and goals. • Active engagement in policy advocacy to support the development of effective climate policies. BHP’s Climate Policy Principles are available at bhp.com/sustainability/climate-change/advocacy-on-climate-policy • Consideration of carbon pricing within investment decisions and asset valuations used for the purposes of impairment testing. Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159) • Climate-related transition risks and opportunities and asset carrying values • Acquisition and use of carbon credits • Expenditure on operational decarbonisation • Expenditure to support value chain decarbonisation Current financial effects (30 June 2026) • No impairments were recognised as a result of this risk in the current reporting period. • Current year SGM obligation, to be settled in the following reporting period: US$23 million (BHP share), US$33 million (100 per cent basis). |
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• Carbon credit assets comprising prepayments and intangible assets: US$71 million, which are expected to be used to satisfy SGM obligations. • Incremental operational GHG emissions reduction spend (capital expenditure, operating expenditure and lease payments): US$65 million. • Operational expenditure on renewable energy (which represents 80 per cent of BHP’s total electricity consumption) is embedded within raw materials and consumables in Financial Statements note 5 ‘Expenses and other income’ on page 144. • Balance sheet amounts related to renewable electricity power purchase agreements: o Lease liabilities: US$43 million o Financial derivatives: US$49 million • Incremental value chain decarbonisation spend (operational expenditure): US$36 million. • No material current financial effects were identified with respect to climate-related litigation. Anticipated financial effects • Carbon credits: o Credits will continue to be purchased and/or generated to satisfy regulatory liabilities, with the SGM liability expected to remain under US$75 million per annum (BHP share, nominal), under US$100 million per annum (100 per cent basis, nominal) in the short to medium term (between FY2027 and FY2030). o Post-FY2030 obligations will be contingent upon the Australian Government’s approach to the future of the SGM, which is due to be reviewed in FY2027. BHP has not quantified anticipated financial effects beyond FY2030 as the level of measurement uncertainty involved in estimating those effects is so high and any estimation (both qualitative and quantitative) would be speculative in nature (and therefore not decision useful) given the outcomes of the review of the SGM are not yet known. The nature of any potential financial effects, being an annual liability for acquisition and/or application of carbon credits to satisfy the obligation, is not expected to change. • Anticipated expenditure: o Incremental operational GHG emissions reduction capital expenditure and lease payments: approximately US$50 million in FY2027 and approximately US$0.5 billion over the medium term (between FY2028 and FY2031), weighted towards the end of the period. Expenditure in the latter years of the medium term is dependent on the availability and commercial viability of relevant decarbonisation technologies. o Annual incremental value chain decarbonisation spend is expected to be uneven in nature, driven by the timing of investment cash calls and the structure of underlying agreements. Based on historical trends and known commitments, spend in the short to medium term is expected to remain broadly consistent with current levels and recent periods. o In the long term (FY2032 onwards), the level of measurement uncertainty involved in estimating total potential expenditure, driven primarily by uncertainty in technology readiness, commercial availability and commercial viability for relevant decarbonisation technologies and associated measures, is so high that BHP has not provided quantification of the total potential spend for this period. Refer to 2.1.3 Strategy for our long-term goal on page 59 and Transition risk 2 for more information on the drivers of this uncertainty. • Our use of renewable and/or other low to zero GHG emissions energy is anticipated to increase in the future, however the nature and quantum of any financial effects will be dependent on future commercial arrangements. • We do not consider there to be a reasonable basis at this stage on which to estimate the anticipated financial effects of climate-related litigation or other potential legal actions in future reporting periods on the Group. • This risk may give rise to reputational impacts, for example if the Group does not achieve our operational and/or value chain GHG emissions targets and goals within expected timeframes. Such impacts are inherently indirect, interdependent and subject to an extended time horizon, and therefore cannot be reliably estimated.
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Transition risk 2: Availability and commercial viability of operational decarbonisation technology |
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Time horizon: medium-, long-term |
Related risk factor (see OFR 6): Portfolio strategy |
Context BHP’s ability to achieve our operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) Group-level climate-related targets, goals and strategies is dependent on the timely availability, selection, safe and effective implementation of enabling technologies and low-carbon inputs and their commercial viability. Delays, failed trials, supply constraints or suboptimal technology options could slow operational decarbonisation, impact our ability to achieve our operational GHG emission medium-term target and long-term net zero goal and increase our operational decarbonisation and/or operating costs. This risk is focused on our operational GHG emissions reduction and excludes technologies relating to value chain decarbonisation. Assets or business activities that are most vulnerable to this risk and associated metric • This risk is most concentrated in assets with hard-to-abate operational emissions, primarily diesel consumption (e.g. higher use of rail and haul trucks) and fugitive methane emissions that could require material operational decarbonisation capital expenditure, which in turn could influence strategies for our Group-level climate-related target and goal. • The business activity most vulnerable to this risk is the nature, timing and amount of future operational decarbonisation capital expenditure. In FY2026, operational decarbonisation capital expenditure was US$30 million, representing less than 1 per cent of the Group’s total capital expenditure for the year. Refer to Current and anticipated financial effects below in this table for more information on the potential future financial exposure and associated uncertainty. Strategy and management actions • Partnerships and technology trials to advance electric fleet solutions Electrification of mining equipment and locomotives remains BHP’s preferred solution to abate diesel emissions. Given these technologies are still emerging, BHP is implementing a structured program of PoC trials and pilots to test developing technologies in our operating environments, in collaboration with OEMs and peers. We are also working with OEMs and peers through groups such as the International Council on Mining and Metals to help accelerate the availability of mining equipment and vehicles that are safe and reliable. • OEM diversification We have expanded relationships with global OEMs, including XCMG, BYD, CATL and Siemens Mobility to support development and access to future lower and low to zero GHG emissions technologies that could potentially be deployed in the future, including next‑generation battery systems, charging infrastructure, electrified fleet options and complementary energy‑management solutions. • Assessing alternative pathways While electrification remains our preferred approach to diesel displacement, we continue to monitor and evaluate emerging technologies as alternative or complementary solutions that could potentially be implemented in the future. • Advancing fugitive emissions abatement Reducing fugitive methane emissions remains a challenge, particularly in open-cut coal mine operations. We seek to abate fugitive emissions to the greatest extent that is technically and commercially viable. We continue to engage with industry, research partners and technology providers to monitor emerging solutions for potential future implementation. Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159 • Acquisition and use of carbon credits • Useful economic lives of property, plant and equipment • Expenditure on operational decarbonisation • Timing, scope and expected cost of closure and rehabilitation activities Current financial effects (30 June 2026) • Refer to operational GHG emissions reduction expenditure in Transition Risk 1. |
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• No other material current financial effects identified. Anticipated financial effects • Refer to operational GHG emissions reduction expenditure and to potential reputational impacts in Transition Risk 1. • Potential use of carbon credits to meet our operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) target and goal: o Based on the information available to us today and using current methodologies for GHG emissions accounting, we are on track to meet our medium-term target (FY2030) through structural abatement and we do not intend to use voluntary carbon credits. We will not use regulatory carbon credits (i.e. those used for compliance under regulatory schemes, such as the Safeguard Mechanism in Australia) to meet our medium-term target. o The extent to which carbon credits may be required to meet our CY2050 net zero goal is subject to uncertainty arising from the non-linearity of potential abatement pathways due to factors including future growth and the availability and commercial viability of decarbonisation technology (refer to 2.1.3 Strategy for our long-term goal on page 59). Additional drivers of uncertainty include carbon prices (refer to 3.1.1 Internal carbon prices on page 64) and policy developments in the jurisdictions in which we operate. Given the level of measurement uncertainty is too high for an estimate to be decision useful, BHP has not provided quantification of the potential long-term anticipated financial effects relating to the use or purchase of carbon credits. o BHP does not expect the adoption of decarbonisation technologies to materially impact the estimated useful lives of our existing fleet assets. It is expected that haul trucks and other diesel-powered equipment will continue to be replaced at the end of their existing useful lives, in line with regular fleet renewal programs. Existing fleet assets may also be redeployed across operations to maximise utilisation and support continued use over their estimated useful lives as part of a phased transition. Once we know we can safely and reliably deploy battery-electric equipment in closure activities, their use will also be reflected in closure cost estimates as appropriate. |
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Transition risk 3: Accelerated decrease in steelmaking coal demand |
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Time horizon: long-term |
Related risk factor (see OFR 6): Portfolio strategy, Access to markets |
Context This risk reflects a potential acceleration of timeline for long-term decline in steelmaking coal demand arising from earlier-than-assumed uptake of lower GHG emissions technology in the steelmaking sector, such as hydrogen-based direct reduction, electric smelting furnaces and electrolysis. BHP continues to expect demand for steelmaking coal to remain robust for decades but the potential exists for blast furnace iron making, which depends on coke made from steelmaking coal, to be displaced at scale by emergent technologies faster than we expect, which presents a strategic risk that could further impact the demand outlook for steelmaking coal and prospects of our steelmaking coal business and the Group’s portfolio. Strategy and management actions We believe a feasible GHG emissions intensity reduction trajectory for steelmaking will involve a combination of conventional blast furnace assets (modified to reduce their GHG emission intensities), as well as the progressive introduction of near zero emission process routes. • Through divestment of our interest in BHP Mitsui Coal (BMC) in FY2022 and the divestment of the Blackwater and Daunia mines by BMA in FY2024, we have reshaped our portfolio to focus on producing higher-quality steelmaking coal to support conventional blast furnaces, which we expect will continue operating, with a preference for using higher-quality steelmaking coal to enable greater efficiency and lower GHG emissions intensity steelmaking, into the long term. • We are supporting the development and adoption of modifications to lower GHG emissions intensity of existing blast furnace technology in steelmaking. Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159) • Portfolio decisions • Climate-related transition risks and opportunities and asset carrying values |
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• Timing, scope and expected cost of closure and rehabilitation activities Current financial effects (30 June 2026) • Financial performance of BMA is influenced by a range of factors, including climate-related factors, which cannot be fully isolated from other operational and market drivers. The climate‑related factor considerations, including assumptions regarding commodity demand, pricing, costs, policy settings and closure timing are incorporated into the cash flow forecasts and key assumptions supporting valuations used for the purposes of BHP’s impairment assessments. No impairment has been recognised in relation to BMA in the current reporting period. • While sustaining capital continues to be deployed to maintain safe operations and reduce operational risk, no growth capital was spent at BMA in FY2026. Anticipated financial effects • BHP continues to expect demand for steelmaking coal to remain robust in the long term, reflecting ongoing reliance on the significant component of global steelmaking capacity provided by blast furnace steelmaking, the relatively young blast furnace fleet in China and the new blast furnace capacity expected to come online in India and Southeast Asia in the coming decade. • While climate‑related policy and transition dynamics represent a source of uncertainty, BHP’s steelmaking coal production and financial effects, including but not limited to EBITDA, carrying value of assets and closure costs, are anticipated to be influenced by factors such as mine life depletion, coal seam characteristics and operational considerations. These factors interact in ways that make the climate-related financial effects not separately identifiable from other underlying drivers. However, for illustrative purposes only of potential impacts, a US$1/t change in steelmaking coal price would result in an approximate impact of US$12 million on FY2026 Underlying EBITDA.1 • There is no growth capital expenditure currently planned at BMA over the short to medium term. Any future expenditure would be subject to BHP’s Capital Allocation Framework, which we use to assess the most efficient and effective way to deploy capital. |
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Footnote 1. EBITDA sensitivities: assumes total volume exposed to prices; determined on the basis of BHP’s existing portfolio. |
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Transition opportunity 1: Copper demand |
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Time horizon: short-, medium-, long-term |
Related risk factor (see OFR 6): Portfolio strategy |
Context The more the global economy progresses in a transition toward net zero, the more important the composition of BHP’s commodity portfolio will become, reflecting its suitability to support the expected increase in the demand for certain commodities arising from global decarbonisation and the energy transition. Specifically, copper is a key contributor in the following trends: • increased electrification across end-use sectors, driving higher copper usage due to its essential role in electrical infrastructure • electrified products, such as electric vehicles, require significantly more copper • expansion of distributed energy grids to meet growing electricity demand, particularly from renewable sources, increases copper requirements • renewable generation technologies, such as wind farms generally have a high copper intensity Additionally, copper is essential to building the backbone for the digital transformation and deployment of AI globally. This opportunity is relevant to commodity attractiveness for our copper-related NOJV investments in addition to our copper producing operated assets. |
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Strategy and management actions BHP continues to strengthen our position in copper through a diversified portfolio of existing operations and strategic investments in emerging options. Key copper growth and expansion opportunities (subject, as applicable, to final investment decisions and external approvals) include: • Copper South Australia • Escondida Growth Program • Cerro Colorado restart and mine life extension project • Vicuña (NOJV) • Resolution Copper (NOJV) Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159) • Portfolio decisions • Climate-related transition risks and opportunities and asset carrying values Current financial effects (30 June 2026) • Investment in this opportunity through capital expenditure in copper assets (operated assets): US$4.6 billion. • Refer to Financial Statements note 29 ‘Investments accounted for using the equity method’ on pages 177 to 179 for the financial performance of the Group’s investments in relevant copper-related NOJVs. Anticipated financial effects • Planned capital expenditure to support the growth of copper assets (operated assets): estimated to be approximately US$1.4 billion in FY2027, US$1.9 billion in FY2028 and US$3 billion on average per year (nominal) across FY2029 to FY2031, subject to the outcomes of BHP’s capital allocation processes.1 • Longer-term expenditure has not been quantified as the level of measurement uncertainty associated with estimating future cash outflows is currently too high for the information to be considered decision useful. Future expenditure will be subject to BHP’s Capital Allocation Framework, which provides flexibility to prioritise projects as required in the short and medium term. Longer-term investment and projects are also subject to commercial sensitivity. • Potential further investment in copper-related NOJVs is expected to form part of the Group’s broader copper growth strategy. However, the approval requirements, timing and quantum of any such investments are subject to commercial sensitivities and have therefore not been disclosed. • The financial performance of BHP’s copper business is influenced by a variety of external drivers, including economic growth, the energy transition and data centres. Future copper demand, pricing and cost structures are subject to significant uncertainty driven by macroeconomic conditions, policy developments, technology adoption, substitution and recycling rates, together with supply-side factors, including permitting outcomes, project execution and climate-related factors. These variables interact in ways that mean climate-related financial effects cannot be reliably identified separately from other drivers, such as urbanisation and population growth. As a result, it is not possible to attribute changes in financial performance to climate-related factors on a standalone basis. However, for illustrative purposes only of combined potential impacts, a US¢1/lb change in copper price would result in an approximate impact of US$39 million on FY2026 Underlying EBITDA. |
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Footnote 1. Capital and exploration expenditure guidance is subject to movements in exchange rates. |
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Physical risk 1: Physical climate-related risks |
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Time horizon: short-, medium-, long-term |
Related risk factor (see OFR 6): Operational events, Key infrastructure failure, Portfolio strategy, Access to markets, Environment |
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Context A changing climate could exacerbate and trigger climate-related physical risks for BHP’s operations, assets and NOJV investments, workforce, communities, supply chains, customers and other partners. These risks arise from both the increasing severity and/or frequency of acute events (extreme climatic events, such as floods, cyclones and heatwaves) and chronic changes (such as prolonged drought, rising temperatures and incremental increases in extreme heat days). The potential effects of these events on our business model and value chain may be both direct and indirect. Assets or business activities that are most vulnerable to this risk and associated metric Figure 4 below illustrates the potential impacts of climate hazards to our operations, workforce and value chain. The ticks reflect where the potential impact is reflected in a material risk scenario for the asset identified under our Risk Framework (including prior to any further exacerbation by a changing climate). The figures shown are each asset’s proportion of the Group’s FY2026 revenue and reflect the Group's assessment that the most material potential financial effects of climate-related physical risk would be likely to result from production disruptions under both current and projected climate conditions. These percentages are illustrative and do not indicate that the entirety of an asset's revenue is or would be at risk, given the localised nature of climate hazards and the diversity of the Group's operations, infrastructure and geographic footprint. BMA and WAIO are in regions where adverse weather impacts production more frequently compared to our other operated assets.
Strategy and management actions We have in place a range of existing controls (including direct and indirect adaptation measures) for climate-related physical risks, captured in Figure 4 above, with examples illustrated in the case studies on page 71. |
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To understand how a changing climate may alter the frequency and severity of the climate hazards and associated potential operational and productivity impacts under different climate-related scenarios and time horizons, we have undertaken scenario analysis studies to evaluate our operational climate-related physical risks. These studies have been informed by our climate hazard dataset (CHD), which covers the assets in the table above and some key value chain locations, enabling us to deepen our understanding of our operational climate-related physical risk exposure, alongside local observational data and other sources of climate projections. The CHD incorporates climate projections from CMIP6 climate models for the period CY2026 to CY2085 informed by three Shared Socio-economic Pathway (SSP) scenarios used by the Intergovernmental Panel on Climate Change (IPCC). The results of these studies have been incorporated into our risk management routines and we continue to strengthen our embedment of climate-related physical risk into other business processes, including business planning, capital allocation and closure. Our approach to evaluating our operational climate-related physical risks is shown in Figure 5 on page 71.
To prioritise safety and mitigate the operational interruption risk from climate hazards, we consider climate‑related physical risks as part of our capital projects decision‑making process, including, where relevant, the incorporation of weather conditions and climate projections in asset design. Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159) • Climate-related physical risk and asset carrying values • Timing, scope and expected cost of closure and rehabilitation activities Current financial effects (30 June 2026) • The consideration of climate-related physical risks, including BHP’s current estimate of potential future operational interruptions, is reflected in business planning and the valuations that underpin BHP’s impairment assessments. Further detail on the significant judgements and estimates that inform the FY2026 impairment assessments is included in Financial Statements note 13 ‘Impairment of non-current assets’ on pages 152 to 153. • As adaptation measures are generally embedded within the design and execution of broader capital projects, any related expenditure is typically not separately identifiable and is reflected within the ‘Additions’ to property, plant and equipment shown in the table in Financial Statements note 11 ‘Property, plant and equipment’ on pages 149 to 150. • In FY2026, there were no material updates to BHP’s closure and rehabilitation provisions arising from cost estimate updates relating to the potential impacts of climate-related physical risks. Further detail on the key judgements and estimates impacting BHP’s closure and rehabilitation provisions is provided in Financial Statements note 15 ‘Closure and rehabilitation provisions’ on pages 155 to 156 and Financial Statements note 16 ‘Climate change’ on pages 157 to 159. • While the Group continued to experience weather-related events during FY2026, operational resilience and mitigation measures helped to manage the associated impacts, and no material financial effects were identified. For example, at BMA, improved wet weather operating performance enabled us to partially mitigate the potential impacts of higher-than-average rainfall, including Tropical Cyclone Koji. Anticipated financial effects • Our planning assumptions include production disruption allowances that reflect weather-related impacts on operations, including those arising from climate-related physical risks. These allowances are informed by historical |
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weather disruption patterns and/or climate outlooks based on an operation’s geographic region and asset infrastructure. For operations located in regions where adverse weather is more likely to impact production on a regular basis (BMA and WAIO), this includes an annual ‘adverse weather allowance’ embedded within the short-, medium- and long-term planning and operational processes. This allowance has historically represented approximately 2 per cent or less of the Group’s copper equivalent production and is embedded within the baseline production planning assumptions. • Capital expenditure associated with climate-related physical risk adaptation measures would typically be incorporated within the broader capital project scope, so any future adaptation capital expenditure is not separately identifiable. BHP has not provided quantification of the combined financial effects (total potential additions to property, plant and equipment), as the resulting information would not be decision useful. • Quantifying the financial effects of climate-related physical risks as potentially exacerbated by a changing climate is inherently complex and subject to a high degree of measurement uncertainty, especially over long-term time horizons where the range of potential climate futures and associated impacts is inherently wide. The Group relies on external climate-related scenarios, which are periodically updated to reflect the latest scientific understanding of the actual or potential impacts of climate change on weather patterns. Future updates to these scenarios may influence risk assessments and could result in material changes to financial results and the carrying values of assets and liabilities in future reporting periods. The timing and nature of any such changes cannot be predicted, however none are expected in the next annual reporting period (FY2027). • Under higher global warming temperature pathways, the frequency, severity and duration of climate hazards, including extreme rainfall, heatwaves and drought, are expected to escalate, increasing the risk of operational interruptions and impacts to financial performance (i.e. impacts to revenue and costs). |
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Case study: Flood resilience at Olympic Dam At Olympic Dam in South Australia, climate‑informed flood mapping has strengthened operational resilience in the face of increasing extreme rainfall risk. The underground mine contains multiple shafts, declines and vent raises that could act as pathways for surface water ingress during major flood events. By integrating future climate projections with flood modelling and dewatering simulations, we assessed whether existing drainage and pumping systems could safely manage projected inflows and improved understanding of risks to key infrastructure. The work has enabled safer and more reliable operations by improving dewatering planning and illustrated a method for integrating climate modelling into system requirements for an underground operation. |
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Case study: Combatting algal blooms and jellyfish at Escondida’s desalination plant Escondida’s Coloso desalination plant enhances resilience to chronic water scarcity in northern Chile by providing a reliable water supply to the Escondida operation. This infrastructure is, however, exposed to rising sea surface temperatures that increase harmful algal blooms and jellyfish activity, which can damage intake systems, reduce plant efficiency and, in severe events, potentially interrupt freshwater supply to mining operations, with associated downtime and repair costs. To address this risk, Escondida has implemented controls including implementation of a physical ‘exoskeleton’ barrier and a bubble curtain barrier to prevent marine biomass from entering the seawater intake pipelines. Further adaptation measures include monitoring of oceanographic conditions, early warning systems, routine cleaning and maintenance of intake and pretreatment systems, and ongoing identification of projects aimed at ensuring operational continuity.
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4.1 Approach to risk management
This section provides information about processes used by BHP to identify, assess, prioritise, treat, monitor and review risks and opportunities, including those that are climate-related. This section should be read in conjunction with section 3 Strategy for managing climate-related risks and opportunities on page 64 which contains information regarding the process we undertook to identify and assess the climate-related risks and opportunity that we determined could reasonably be expected to affect BHP’s prospects (i.e. those we refer to in this Sustainability Report as our identified climate-related risks and opportunity) and BHP’s associated management responses. Refer also to Risk factors in OFR 6 on page 22, which outline BHP’s broader risk environment.
At BHP, we take an enterprise approach to risk management and operate under one Risk Framework for all risks and opportunities (see How we manage risk in OFR 6 on page 21), including climate-related transition and physical risks and opportunities that may impact delivery of our strategy, our operations or our value chain. As part of this approach, we consider existing and emerging regulatory requirements related to climate change. We have mandatory minimum performance requirements for risk management (including climate-related risks and opportunities) and our Climate Change Global Standard, which we apply across our operated assets and functions, and to decision-making processes for sales, marketing and procurement. BHP does not manage non-operated
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joint ventures or third parties, but remains exposed to risks and opportunities from the activities of those parties. BHP seeks to oversee and manage the financial, legal and reputational risks and opportunities to BHP related to our investments in non-operated joint ventures and relationships with third parties.
Our risk process enables us to assess the materiality of all risks and opportunities identified through our Risk Framework (including climate-related risks and opportunities) consistently by considering the likelihood (by reference to probability and timeframes) and level of potential quantitative and qualitative impacts (including to health and safety, legal, sustainability, reputation and financial). This helps us to understand the significance of the risk or opportunity in the context of BHP’s overall material risk profile and prioritise controls and decision-making for investment in risk treatment. Climate change and climate-related risks have the potential to influence or exacerbate strategic risks including those associated with portfolio strategy and operational risks, such as those associated with key infrastructure failure and operational events (see Risk factors in OFR 6 on page 22). They are required to be considered and, where applicable, integrated in accordance with our Risk Framework into our material risk profile.
Our Risk Framework requires us to implement controls to prevent and mitigate material risks and enable and enhance material opportunities. This consistent approach supports climate-related risks and opportunities to be considered across our business and integrated through our material risk profile, and focuses action on the risks and opportunities that are material. We conduct annual reviews of our climate-related risk profile to identify, assess and manage new or evolving climate-related risks and opportunities. Our Risk Framework requires individual risks and opportunities that have been assessed for risk management to be reviewed at least annually and when events or changes occur that may increase or decrease the risk exposure or opportunity while critical controls are reviewed at least annually to evaluate performance.
4.1.1 Use of scenario analysis in climate-related risk and opportunity identification
Scenario analysis including a lower- and a higher-warming scenario as described in section 3 Strategy for managing climate-related risks and opportunities on page 64, was used to review the identified climate-related risks and opportunity described in Table 1 on page 66, which reflect the BHP Base Case, to test for any new or changed areas of risk or opportunity. We did not identify any new or changed areas of risk or opportunity. We used the lower-warming scenario to review our identification and assessment of transition climate-related risks and opportunities, while our higher-warming scenario was used to review physical climate-related risk profiles across our operations and some areas of our value chain.
5.2.7 Carbon credits
BHP currently acquires carbon credits primarily for regulatory purposes. BHP may also sell carbon credits, depending on internal use requirements, or originate carbon credits through project development or direct investment. In the future, BHP may also acquire carbon credits for voluntary purposes, including if needed for the purpose of our medium-term operational GHG emissions target (not currently expected) or long-term operational GHG goal (expected). BHP acquired carbon credits may include reduction and/or removal credits, and may be sourced from both nature-based and technological project types.
We undertake risk-based screening and/or due diligence to test that carbon credits sourced by BHP meet our integrity standards. Carbon credits we intend to source go through a review process that includes technical, governance, legal and stakeholder aspects, carried out by internal and external subject matter experts.
Our integrity standards are designed to align to global best practice for high-integrity carbon credits (such as the International Carbon Reduction and Offsetting Alliance’s accreditation Code of Best Practice and its list of endorsed carbon crediting standards, and the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles). We will review and update alignment over time as practices on carbon credit integrity evolve. In some cases, the integrity standards of carbon credits may be set and monitored by government agencies (ACCUs). Where the principles underpinning their integrity standards are broadly aligned to our own, we do not apply our review process.
We apply the following integrity standards to voluntary carbon credits that we source:
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Where third parties offset their GHG emissions that appear in our reported Scope 3 emissions inventory and for purposes of our net value chain 2050 goal and targets, we plan to recognise and report the net GHG emissions after offsetting. Carbon credits sourced by third parties in our value chain and associated with GHG emissions that appear in our reported Scope 3 emissions inventory and against our targets and goals would need to be high-integrity (determined having regard to guidance from global best practice, relevant regulatory standards and the integrity standards we apply to our sourcing of voluntary carbon credits) before we recognised that offsetting in our reporting.
This section provides information about BHP’s governance of climate-related risks and opportunities, including Board oversight.
6.1 Board oversight
The BHP Board is responsible for the governance and oversight of climate change issues, including strategic approach, risk management, investment decisions, public disclosures and executive remuneration. The Board approves significant social, community and sustainability policies, including those related to climate change, and approves and oversees the setting of and performance against BHP’s climate-related strategy, goals and targets. The Board is supported by its four standing Board Committees. Climate-related risks and opportunities are considered within the Board’s broader oversight of portfolio strategy, sustainability and social value objectives and risk management.
The Board, and its Committees as relevant, considers, reviews and monitors climate‑related risks and opportunities, including associated trade‑offs, as part of its decision‑making processes and considerations for major transactions. For example, in considering portfolio decisions, the Board assesses climate‑related risks and opportunities alongside other relevant factors, such as economic and social value considerations, and makes decisions based on an overall evaluation of these factors and the trade‑offs between them.
The Board met 13 times during FY2026, with climate-related matters (including climate-related risks and opportunities) regularly included on the meeting agendas. Key activities included reviewing and approving public sustainability disclosures (including this Sustainability Report), reviewing progress against public climate-related targets and goals, including the social value scorecard 2030 goals, assessing corporate strategy, portfolio options, annual budget and business plans, approving material investment requests and risk and policy settings, and approving recommendations from the People and Remuneration Committee on the inclusion of climate-related metrics in executive remuneration.
The Board, and each of its Committees as relevant, was informed on climate-related risks and opportunities through Board and Committee papers, progress updates from management, material risk reports, briefings and presentations. In addition, the Board receives updates from the Chair of each Committee following Committee meetings. Climate-related topics are also incorporated into Director induction programs, ongoing training and site visits to assist Directors in their oversight.
6.1.1 Board composition, skills and knowledge
The Board maintains a skills matrix included in section 4.5 of our Corporate Governance Statement on page 101 that identifies the skills and experience the Board needs for the next period of BHP’s development, considering BHP’s circumstances and the changing external environment. Skills in the current matrix related to the Board’s capability to assess and monitor climate-related risks and opportunities and oversee strategies designed to respond to those risks and opportunities (including climate transition strategies), including Sustainability and decarbonisation transition, Strategy, Operating risk, Commodity value chain and customers, Social value, community and stakeholder engagement, Technology and Capital allocation and cost efficiency. The Board collectively possesses the skills and experience set out in the skills matrix. The Directors also participate in an ongoing training and development program and receive updates on climate-related issues and reporting requirements, including from external experts on evolving climate-related developments where required. The Board supplements its knowledge by seeking the input of senior management, external advisers and specialists to further inform its decisions.
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In FY2026, the Board, supported by the Nomination and Governance Committee undertook an internal evaluation of Board performance and reviewed the skills and experience represented by the Directors and determined that the composition and mix of those skills remains appropriate to achieve BHP’s purpose and strategy, including those relating to sustainability and the energy transition. An external service provider also assessed the skills and experience of the Directors on the Board for the purposes of the Board skills matrix.
To support the Board’s oversight of climate-related matters, in FY2026 the Board received an externally supported session on climate governance and considerations for the Board in preparing for their responsibilities with respect to this Sustainability Report.
6.2 Board committees
The Board has four standing Committees to assist in the discharge of its responsibilities, including on climate‑related matters. Each Committee’s key responsibilities for climate-related risks and opportunities are reflected in BHP’s Committee Charters available on the BHP website at bhp.com/about/operating-ethically/corporate-governance and summarised below.
The Sustainability Committee assists the Board with overseeing climate performance including monitoring implementation of BHP’s climate strategy, policies and processes, and performance against public targets and goals, and monitoring progress against those targets and goals. The Committee also makes recommendations to the People and Remuneration Committee on setting climate performance measures and evaluating performance against those measures for the CEO and other members of the ELT. The Sustainability Committee meets at least three times a year.
The Risk and Audit Committee oversees and assists the Board in reviewing the emerging and principal risks facing BHP. This includes business risk, financial reporting risk and climate risk, of which the climate-related risks which could reasonably be expected to affect BHP’s prospects, as identified earlier, are a subset. The Committee also reviews and recommends to the Board for approval public financial disclosures regarding sustainability matters, including climate-related risks and opportunities, and climate-related financial information contained in sustainability reports. The Risk and Audit Committee reviewed the climate-related financial disclosures appearing in this Sustainability Report and the Group’s FY2026 Financial Statements, both prior to the Board’s approval. The Risk and Audit Committee meets at least four times a year.
The People and Remuneration Committee assists the Board with reviewing performance measures and performance outcomes for the CEO and approves performance measures and assesses and determines performance outcomes against those performance measures for the ELT. In doing so, the Committee considers recommendations from the Sustainability Committee in relation to climate performance measures. For FY2026, 10 per cent of the Cash and Deferred Plan (CDP) metrics (representing 5.1 per cent of total target remuneration for the CEO and, on average, 5.4 per cent for other Executive KMP) were weighted towards decarbonisation, including the progress of our carbon abatement projects. Further details are provided on page 118 of the Remuneration Report. The People and Remuneration Committee meets at least three times a year.
The Nomination and Governance Committee assists the Board with reviewing BHP’s significant social, community and sustainability-related policies (including those related to climate change and climate transition planning), and reviews and makes recommendations to the Board on BHP’s public sustainability-related targets and goals. The Committee also assists with assessing the capability of the Board to deliver on BHP’s strategy by regularly assessing the Board skills matrix and the collective skills, experience and knowledge of the Board to be able to discharge its duties, including on the strategic direction of BHP. The Nomination and Governance Committee meets at least three times a year.
6.3 Management
Management plays a key role in assessing, monitoring, managing and overseeing climate-related risks and opportunities and BHP’s performance against relevant climate-related targets and goals.
The CEO is responsible for the management of BHP’s business activities (including in relation to climate-related matters), within the delegations of authority limits approved by the Board, and reports directly to the Board and Chair. The CEO is supported by the ELT. The ELT is informed about and monitors climate-related risks and opportunities.
The strategic nature of climate change means that many different groups and teams (including Sustainability, Finance, Legal, Governance, Risk, Compliance, Operational Decarbonisation, Technology and Assets) have a role to play in the delivery of climate-related performance. Some specific roles include:
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Activities and processes that support the monitoring, managing and oversight of climate-related risks and opportunities include:
7.3 Forward-looking statements
This Sustainability Report has been prepared to provide stakeholders with information about BHP’s climate-related risks and opportunities that could reasonably be expected to affect our cash flows, access to finance or cost of capital over the short, medium, or long term. It contains climate-related information, as well as forward-looking statements. Forward-looking statements are based on management’s expectations and reflect judgements, assumptions, estimates and other information available, as at the date of this Sustainability Report. These statements do not represent guarantees or predictions of future financial or operational performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this Sustainability Report.
This Sustainability Report also discusses scenario analysis. There are limitations with respect to scenario analysis, including any climate-related scenario analysis, and it is difficult to predict which, if any, of the scenarios might eventuate. Scenario analysis is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate, and may not reflect BHP’s own expectations. Scenarios may be impacted by additional factors to the assumptions disclosed.
This Sustainability Report forms part of this Annual Report and should be read together with the forward-looking statements disclaimer under Forward-looking statements at the beginning of this Annual Report, which applies to the climate-related information and forward-looking statements contained in this Sustainability Report. For more information, including examples of forward-looking statements and a discussion of external factors that may affect them, refer to Forward-looking statements at the beginning of this Annual Report.
7.4 Use and interpretation of terms, defined terms and abbreviations
7.4.1 Overview of terminology
This Sustainability Report uses defined terms (without capital letters), including terms defined or informed by AASB S2 (as described below) and additional terms which are not defined by AASB S2, and should be read in conjunction with all terms and abbreviations defined in Additional information: Glossary on pages 238 to 243 and Company details at the beginning of this Annual Report.
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7.4.2 Material information
AASB S2 requires disclosure of material information about climate-related risks and opportunities that could reasonably be expected to affect BHP’s prospects. Materiality judgements have been made by BHP in determining the disclosures made in accordance with AASB S2, including consideration of internal and external expectations. These judgements have considered whether information could reasonably be expected to influence decisions that primary users of general purpose financial reports make on the basis of those reports.
7.4.3 Time horizons
BHP has disclosed material information about our identified climate-related risks and opportunity, both physical and transition, across the following three time horizons, which are aligned to our strategic planning and risk management:
The time horizons draw from BHP’s strategic planning, including annual budget (short-term), supportive actions and initiatives between short-term activities and BHP’s long-term strategic outlook, supported by our five-year planning processes (medium-term), and the capital-intensive nature of the mining industry, where significant upfront investments are made in assets with operational lives often exceeding five years, which are considered in our life of asset plans (long-term). The time horizons are also informed by the timeframes used in the assessment of likelihood under BHP’s Risk Framework (see section 4 Risk management on page 76 for an overview of the Risk Framework) and take into consideration the useful life of BHP's assets and the fact that some climate-related risks and opportunities may be more likely to manifest over the medium and longer terms. Different time horizons have been used for the purposes of certain aspects of our climate-related scenario analysis.
7.4.4 Current and anticipated financial effects
Financial effects refer to actual and potential impacts to BHP’s financial position, financial performance and cash flows as relevant for each identified climate-related risk or opportunity. Material financial effects, both qualitative and quantitative, alongside methodologies specific to our identified climate-related risks and opportunity are disclosed in section 3 Strategy for managing climate-related risks and opportunities on page 64, with reference to the Group’s FY2026 Financial Statements where relevant.
Both current and anticipated financial effects represent BHP share, aligned to Financial Statement presentation, unless otherwise noted.
7.5 Application of reliefs
BHP has elected to exercise the transition relief available with respect to the provision of comparative information. In some instances, BHP has voluntarily disclosed comparative information. Comparative information has not been restated for any difference from an amount previously disclosed, unless otherwise noted
BHP has elected to exercise the jurisdictional relief (by early adoption) with respect to application of Global Warming Potential (GWP) values for the calculation of our Scope 1 GHG emissions where direct measurement of GHG emissions is applied (see 7.6.1 Scope 1 emissions for information on our use of direct measurement, which is currently limited to BHP’s Australian operations). The Australian National Greenhouse and Energy Reporting (NGER) legislation uses the Fifth Assessment Report (AR5) Global Warming Potential (GWP) values for the purpose of calculation of emission factors where direct measurement is applied. In addition, BHP has applied the commercial sensitivity relief and has therefore not disclosed certain commercially sensitive information relating to the identified climate-related opportunity, copper demand, as referenced on page 69.
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Independent auditor’s report to the members of BHP Group Limited
Not required for US reporting.
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Corporate Governance Statement
Contents:
1. |
Corporate governance at BHP |
2. |
FY2026 corporate governance highlights |
3. |
BHP’s governance structure |
4. |
Board composition and succession |
5. |
Board Committees |
6. |
Management |
7. |
Shareholders and reporting |
8. |
Culture and conduct |
9. |
Risk management and assurance |
10. |
US requirements |
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Good corporate governance underpins the way we conduct business.
BHP’s corporate governance framework supports the delivery of our strategy and long-term value creation for shareholders.
This Corporate Governance Statement sets out the corporate governance framework currently in place for the Group, including the key policies and practices.
BHP was fully compliant with the Recommendations of the fourth edition of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (ASX Fourth Edition) throughout FY2026. The ASX Fourth Edition is available at asx.com.au
BHP is also subject to governance requirements from our London Stock Exchange (LSE) and New York Stock Exchange (NYSE) listings and our registration with the Securities and Exchange Commission (SEC) in the United States. As BHP has its primary listing on the ASX, which is an approved exchange in terms of the Johannesburg Stock Exchange (JSE) Listings Requirements, the JSE Listings Requirements provide that BHP does not need to comply with the corporate governance requirements of the JSE and is instead required to comply with the corporate governance provisions of its primary exchange. As stated above, BHP is in compliance with the corporate governance requirements of the ASX.
This Corporate Governance Statement is current as at 18 August 2026 and has been approved by the Board.
>More information on our corporate governance framework and practices is available at bhp.com/governance, which includes links to our Appendix 4G and each of the publicly available documents referenced in this Corporate Governance Statement
CEO succession
A key activity completed by the Board during FY2026 was the Chief Executive Officer (CEO) succession and transition process. The Board approved the appointment of Brandon Craig as CEO and a Director of BHP effective from 1 July 2026. Brandon succeeded Mike Henry, who stepped down after six and a half years in the role. The Board recognises the outstanding contribution of Mike Henry to BHP as CEO.
BHP Board update
The Board welcomed Mark Vassella as a new Non-executive Director on 1 June 2026. Mark has over 40 years’ experience, including deep operational experience in the resources industry and a strategic approach to commodity and skills development.
Mandatory climate reporting
BHP has released its inaugural Sustainability Report in accordance with the Australian Corporations Act 2001 sustainability reporting regime. This is the next phase in climate-related disclosures following on from our second Climate Transition Action Plan published in August 2024. The Sustainability Report provides disclosure of our identified climate-related risks and opportunity and an update on our progress in relation to our climate-related targets and goals and decarbonisation strategy.
Gender representation
We continue to maintain a gender balanced global workforce, Executive Leadership Team and Board. Women comprised 41.5 per cent of our global employee workforce as at the end of FY2026. We define gender balance as a minimum 40 per cent women and 40 per cent men, in line with the definitions used by entities such as the International Labour Organization.
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Board
The Board has ultimate responsibility for overseeing BHP’s governance. The role of the Board, as set out in the Board Governance Document, is to represent shareholders and promote and protect the interests of BHP in the short and long term.
The Board Governance Document outlines the Board’s responsibilities and processes, including the matters specifically reserved for the Board, the authority delegated to the CEO and the accountability of the CEO for that authority, and provides guidance on the management of the relationship between the Board and the CEO. The Board Governance Document is reviewed by the Board annually and was reviewed in FY2026.
The matters reserved for the Board as set out in the revised Board Governance Document include:
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>The Board Governance Document is available at bhp.com/governance
Committees
The Board has established Committees to assist it in exercising its authority, including monitoring the performance of BHP, to gain assurance that progress is being made towards our purpose within the limits delegated by the Board. There are four standing Committees: the Nomination and Governance Committee, Risk and Audit Committee, Sustainability Committee and People and Remuneration Committee.
>Each Committee is delegated authority by the Board under its Charter. These Charters are available at bhp.com/governance
>For more information on each of the Committees refer to section 5
Chair
The Chair of the Board is responsible for leading the Board and ensuring it operates to high governance standards. In particular, the Chair facilitates constructive Board relations and the effective contribution of all Non-executive Directors. The Chair must be an independent Non-executive Director.
Senior Independent Director
The Senior Independent Director is appointed by the Board and steps in as Chair if needed. The Senior Independent Director serves as a sounding board for the Chair and meets with key shareholders to develop an understanding of their issues and concerns. In FY2025, the Chair appointment was conducted through a formal Chair succession process led by the Senior Independent Director, Gary Goldberg.
Group Company Secretary
The Group Company Secretary is accountable to the Board and advises the Chair, the Board and individual Directors on all matters of governance process.
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Chief Executive Officer
The CEO is accountable to the Board for the authority that is delegated to the CEO and for the performance of the Group. The CEO, with support of their direct reports, is responsible for the day-to-day management of the Group. The CEO works in a constructive partnership with the Board and is required to report regularly to the Board on progress.
Access to management
The Board has access to members of senior management who frequently attend Board and Committee meetings. Management makes presentations and engages in discussions with Directors, answers questions and provides input and perspective on their areas of responsibility. The Board also engages with members of management at site visits.
The Board also holds discussions in the absence of management as required.
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4.1 Board of Directors and Company Secretary
The Board currently has 10 members. The Directors’ qualifications, experience and special responsibilities are listed below.
Appointment Independent Non-executive Director since April 2024 Chair since 31 March 2025 |
|
Skills and experience Ross McEwan has over 30 years’ global executive experience, including in the financial services industry, with deep expertise in capital allocation, risk management and value creation in complex regulatory environments. Ross was Chief Executive Officer of National Australia Bank (from 2019 to April 2024) and Group Chief Executive Officer of the Royal Bank of Scotland (from 2013 to 2019). Prior to that, he held executive roles at Commonwealth Bank of Australia, First NZ Capital Securities and National Mutual Life Association of Australasia/AXA New Zealand. Ross has also been Lead Independent Director of Reece Limited (from October 2024 to June 2025) and a Non-executive Director of QinetiQ Group Plc (from March 2024 to July 2025). Ross brings a strong focus on people and culture, technology and innovation and has extensive experience in value creation, capital allocation and delivering operational excellence. He has worked closely with a wide range of stakeholders, including customers, governments and regulators and brings a global perspective on critical strategic issues. He has a deep understanding of organisational transformation and technology as a driver of change. Current appointments Ross is currently a Non-executive Director of Ruminant Biotech Corp Limited (since June 2021). |
Appointment Executive Director and Chief Executive Officer since 1 July 2026 President Americas to 30 June 2026 |
|
Skills and experience Brandon Craig has over 25 years’ experience in the mining industry, spanning operational and corporate leadership roles at BHP across a diverse portfolio of commodities and geographies. Brandon joined BHP in 1999 and was appointed Chief Executive Officer from 1 July 2026. Brandon brings deep operational and commercial expertise, with a strategic focus on advancing BHP’s high quality growth options ‒ particularly in copper and potash ‒ in line with the Company’s long-term strategy and its role in supporting global economic growth, electrification and food security. Brandon is committed to fostering a safe, high-performance culture and an inclusive workplace where people are empowered at every level through the BHP Operating System. Most recently, Brandon was President Americas and was responsible for BHP’s growth strategy and performance in future-facing commodities across Canada, the United States and South America. Prior to this, as Asset President of BHP’s Western Australia Iron Ore business, Brandon strengthened operational performance across the integrated system of mines, rail and port operations and increased BHP’s lead as the lowest cost, highest margin major iron ore producer in the world. Brandon is committed to building constructive relationships through engagement with governments, Indigenous partners, community stakeholders and business partners in the jurisdictions where BHP operates to deliver mutual benefit and long-term value for shareholders. |
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Appointment Independent Non-executive Director since February 2020 Senior Independent Director since 21 December 2020 |
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Skills and experience Gary Goldberg has over 40 years’ global executive experience, including deep experience in mining, strategy, risk, commodity value chain, capital allocation discipline and public policy. Gary was the Chief Executive Officer of Newmont Corporation (from 2013 to 2019) and prior to that, President and Chief Executive Officer of Rio Tinto Minerals. Gary has also been a Non-executive Director of Port Waratah Coal Services Limited and Rio Tinto Zimbabwe, and served as Vice Chair of the World Gold Council, Treasurer of the International Council on Mining and Metals, Co-Chair of the World Economic Forum Mining and Metals Industry community, and Chair of the National Mining Association in the United States. Gary is recognised for his leadership in bringing the mining industry together to raise standards in safety and environmental performance in conjunction with community and government partnerships in America and around the world. He has management experience in implementing strategies focused on safety, decarbonisation and transformational investment for commodities with long-dated cycles, along with his contribution to policy development in environmental management globally. Current appointments Gary is a Director of Imperial Oil Limited (since May 2023). |
Appointment Independent Non-executive Director since March 2022 |
|
Skills and experience Michelle Hinchliffe has over 20 years’ experience as a partner in KPMG’s financial services division. Michelle was formerly a partner of KPMG and held a number of roles, including as the UK Chair of Audit, a member of the KPMG UK Executive Committee, and led KPMG’s financial services practice in Australia and was a member of the KPMG Australia Board. Michelle has expertise and experience in understanding the complexities of multi-national firms operating in multiple reporting and regulatory frameworks across Europe, the Americas, Asia and Africa. Her financial expertise and audit experience across a range of industries and businesses, including in Australia, bring insights to the Board on BHP’s assessment of risk, returns and its long-term capital plan to create financial strength and support BHP’s future growth. Current appointments Michelle is a Non-executive Director of Santander UK Group Holdings Plc and various subsidiaries (since June 2023) and Macquarie Group Limited and Macquarie Bank Limited (since March 2022). |
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Appointment Independent Non-executive Director since October 2020 |
|
Skills and experience Xiaoqun Clever-Steg has over 20 years’ experience in technology with a focus on software engineering, data and AI, cybersecurity and digitalisation. Xiaoqun was formerly Chief Technology Officer of Ringier AG and ProSiebenSat.1 Media SE, Chief Operating Officer of Technology and Innovation at SAP and President of SAP Labs China. Xiaoqun brings significant expertise in the development, selection and implementation of business transforming technology, innovation and assessment of opportunities and risks in digital disruption. She has knowledge and relationships across the technology and innovation start-up sector across Europe, Asia and North America and brings depth to the Board’s review of managing cybersecurity risks as well as assessment of opportunities to invest in proven and emerging technologies in the discovery of new mineral deposits, safer and more cost-effective processing, and technologies to reduce GHG emissions and support the energy transition. Current appointments Xiaoqun is a Non-executive Director of Amadeus IT Group SA (since June 2020), a Non-executive Director of Straumann Group (since April 2024) and on the Supervisory Board of Infineon Technologies AG (since February 2020). |
Bachelor of Science (Hons), MBA Appointment Independent Non-executive Director since May 2024 |
|
Skills and experience Don Lindsay has more than 40 years’ global experience, including in mining and resource development, financial markets, transformational leadership, growth and value creation. Don was the President and Chief Executive Officer of Teck Resources Limited (from 2005 to 2022) and prior to that, worked for almost 20 years with CIBC World Markets Inc., where he served as President, Head of Investment and Corporate Banking and Head of the Asia Pacific Region. Don also served as Chair of the Board of Governors for Mining and Metals for the World Economic Forum, Chair of the Business Council of Canada, Chair of the International Council on Mining and Metals and Chair of the Invictus Games Vancouver-Whistler 2025 (from November 2022 to July 2025). Don brings extensive experience in global resource development as well as sustainability, community health, safety and global education and business forums. His technical and management experience across a range of commodities and mining jurisdictions brings a unique understanding of prospective resources, cost of development and operations, and the assessment of opportunities to strengthen the portfolio of world‑class assets. Current appointments Don is Chair of the Board of Manulife Financial Corporation (since February 2023) and Trans Mountain Corporation Inc (since February 2026). |
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Appointment Independent Non-executive Director since October 2020 |
|
Skills and experience Christine O’Reilly has over 30 years’ experience in the financial and infrastructure sectors, with deep financial and public policy expertise and experience in large-scale capital projects and transformational strategy. Christine was the Chief Executive Officer of the GasNet Australia Group and Co-Head of Unlisted Infrastructure Investments at Colonial First State Global Asset Management, following an early career in investment banking and audit at Price Waterhouse. Christine has also served as a Non-executive Director of Stockland Limited (from August 2018 to October 2024), Medibank Private Limited (from March 2014 to November 2021), Transurban Group (from April 2012 to October 2020), CSL Limited (from February 2011 to October 2020) and Energy Australia Holdings Limited (from September 2012 to August 2018). Christine has a deep understanding of financial drivers of the businesses and experience in capital allocation discipline across sectors that have long‑dated paybacks for shareholders and stakeholders. Her insights into cost efficiency and cash flow as well as the impact of policy on innovation, investment and project development are key inputs for the Board. Current appointments Christine is currently Chair of Australia Pacific Airports Corporation (since October 2024), a Non-executive Director of Australia and New Zealand Banking Group (since November 2021) and a Non-executive Director (since November 2023) and Deputy Chair of Infrastructure Victoria (since March 2024). |
Appointment Independent Non-executive Director since April 2022 |
|
Skills and experience Catherine Tanna has more than 30 years’ experience in the resources, oil and gas, power generation and retailing sectors. Catherine was formerly Managing Director of Energy Australia between 2014 and 2021. Prior to this, she held senior executive roles with Shell and BG Group with responsibility for international operations across Africa, North Asia, Russia, North America, Latin America and Australia. Catherine was also a member of the Board of the Reserve Bank of Australia (from 2011 to 2021), the Advisory Board of Fujitsu Australia (from February 2022 to April 2025) and a Director of the Business Council of Australia (from 2016 to 2021). Catherine has a track record in leading cultural change and sponsoring gender equity, diversity and inclusion across business and more broadly. She brings an understanding of and contribution to complex regulatory and policy environments. Catherine’s experience in seeking to align customer and community expectations, particularly Indigenous communities, with those of the enterprise and regulators, provides unique insight and input to the Board. Current appointments Catherine is a Non-executive Director of Bechtel Corporation (since May 2023) and Tennis Australia (since December 2025), Chair of Bechtel Australia (since December 2023) and Senior Advisor at McKinsey & Company Inc (since April 2022). |
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Appointment Independent Non-executive Director since June 2026 |
|
Skills and experience Mark Vassella has over 40 years’ experience in the global steel industry and materials value chain. Mark was the Chief Executive Officer and Managing Director of BlueScope Steel Limited from January 2018 to January 2026 which included global operations across Australia, New Zealand, North America and Asia. Mark started in the steel industry as a cadet at BHP Newcastle in NSW in the early 1980s. He has held various general manager, leadership and global executive roles in Australia, the United Kingdom and the United States. He was also a member of the World Steel Association Board. Mark is recognised for expertise running large-scale industrial operations within the resources and materials value chain, and his leadership in building constructive relationships with governments, Indigenous partners, community stakeholders and business partners. He brings a strong focus on safety, decarbonisation and capital allocation discipline. Current appointments Nil. |
Appointment Independent Non-executive Director since June 2020 |
|
Skills and experience Dion Weisler has extensive global executive experience, including transformation and commercial experience in the global information technology sector, with a focus on capital discipline and stakeholder engagement. Dion was formerly a Director and the President and Chief Executive Officer of HP Inc. (from 2015 to 2019) and continued as a Director and Senior Executive Adviser (until May 2020). He previously held senior executive roles at Lenovo Group Limited, was General Manager Conferencing and Collaboration at Telstra Corporation and held various positions at Acer Inc., including as Managing Director, Acer UK. Dion brings experience in transforming megatrends into opportunities and growth and valuable insight on the power of innovation, technology and data. His experience also demonstrates insights into strategy development in the global energy transition, where safety, decarbonisation and stakeholder management are critical. Current appointments Dion is a Non-executive Director of Intel Corporation (since June 2020), Qantas Airways Limited (since March 2025) and Thermo Fisher Scientific Inc. (since March 2017). |
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Appointment Group Company Secretary since March 2021 |
|
Skills and experience Stefanie Wilkinson was appointed Group Company Secretary effective March 2021 and Group General Counsel effective 2 April 2024. Prior to joining BHP, Stefanie was a Partner at Herbert Smith Freehills (now Herbert Smith Freehills Kramer), a firm she was with for 15 years, specialising in corporate law and governance for listed companies. Earlier in her career, Stefanie was a solicitor at Allen & Overy in the Middle East. Stefanie is a fellow of the Governance Institute of Australia. |
4.2 Director independence
The Board is committed to ensuring that a majority of Directors are independent.
The Board has adopted a policy that it uses to determine the independence of its Directors.
>The Policy on the Independence of Directors is available at bhp.com/governance
Determination of Director independence
The Board has reviewed and considers all current Non-executive Directors, including the Chair, to be independent of management and free of any interest, position or relationship that might influence, or reasonably be perceived to influence, in a material respect their capacity to bring an independent judgement to bear on issues before the Board and to act in the best interests of BHP as a whole rather than in the interests of an individual security holder or other party.
A determination of independence is carried out upon a Director’s appointment and re-election, annually, and when any new interests, positions or relationships are disclosed by a Director. Where Directors hold, or have previously held, positions in companies that have commercial relationships with BHP, the Board assesses those relationships and their relevance to Director independence.
The Board has assessed each of the relationships separately and is satisfied that Dion and Catherine continue to bring an independent judgement to bear on issues before the Board and to act in the best interests of BHP as a whole rather than the interests of an individual security holder or other party.
Conflicts of interest
In accordance with Australian law, if a situation arises for consideration where a Director has a material personal interest, the affected Director takes no part in decision-making unless approval is provided by the non-interested Directors. Provisions for Directors’ interests are set out in the Constitution of BHP Group Limited.
4.3 Board appointments and succession planning
Board succession planning
The Board adopts a structured and rigorous approach to Board succession planning to facilitate the orderly replacement of current Directors and guard against the consequences of unforeseen departures and oversees the development of a diverse pipeline. This process is continuous, with the aim of allowing the Board to determine an appropriate balance on the Board between experience and fresh perspectives, and the Board continues to be fit for purpose.
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As part of this process, Mark Vassella was appointed to the Board as a Non-executive Director from 1 June 2026, following the retirement of Ken MacKenzie from the Board in March 2025.
Before the Board formally appoints a person or puts a person forward for election, the Board, with the assistance of external consultants, will conduct appropriate background and reference checks as to that person’s character, experience, education and criminal and bankruptcy history.
The Board has adopted a letter of appointment that contains the terms on which Non-executive Directors will be appointed, including the basis upon which they will be indemnified by the Group. The letter of appointment defines the role of Directors, including the expectations in terms of independence, participation, time commitment and continuous improvement. Written agreements are in place for all Non-executive Directors.
CEO transition
The Board announced on 18 March 2026 that Brandon Craig would be appointed as CEO and a Director of BHP Group Limited on 1 July 2026. Mike Henry ceased as CEO and a Director on 30 June 2026, after six and a half years in the role.
The appointment of Brandon as CEO followed a formal CEO succession process by the Board. The succession planning process for the CEO and the direct reports to the CEO is the responsibility of the Board. The role of the Nomination and Governance Committee is to support the Board in its decision-making by periodically reviewing the CEO succession process and undertaking tasks or activities to prepare for a succession event.
4.4 Director induction, training and development
Upon appointment, each new Non-executive Director undertakes an induction program tailored to their needs. Non-executive Directors also undertake an induction program when they join a new Committee, which is tailored to the areas specific to that Committee’s role and the Director’s previous experience. The Chair also undertakes an induction program when they are appointed as Chair of the Board.
Following the induction program, Non-executive Directors participate in continuous improvement activities through a training and development program, which is overseen by the Nomination and Governance Committee to help Directors, individually and collectively, develop and maintain the skills and knowledge to assist them in performing their role effectively. The training and development program is periodically reviewed to maximise effectiveness and to tailor the program to the Directors’ needs and the Board’s areas of focus.
Throughout the year, the Chair discusses development areas with each Director. Board Committees review and agree their needs for more briefings. The benefit of this approach is that induction and learning opportunities can be tailored to Directors’ Committee memberships, as well as the Board’s specific areas of focus. This approach is also intended to ensure a coordinated process for succession planning, Board renewal, training and development and Committee composition. In turn, these processes are relevant to the Nomination and Governance Committee’s role in identifying appropriate Non-executive Director candidates.
Examples of activities in the training and development program include:
4.5 Director skills, experience and attributes
Overarching statement of Board requirements
At BHP, we know inclusive and diverse teams are safer and more productive. This is because people in these teams are more willing to share ideas and collaborate with colleagues, and they make better decisions as a result. Our teams with a more balanced mix of women and men report more safety hazards, have lower unplanned absentee rates and achieve more planned work.
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The BHP Board is no different and believes its members should comprise Directors with a broad range of skills and perspectives for the Board to:
Attributes and commitment to role
All Directors are expected to comply with Our Code of Conduct, act with integrity, lead by example and promote the desired culture.
The Board believes each Non-executive Director has demonstrated the attributes of sufficient time to undertake the responsibilities of the role, honesty and integrity, and a preparedness to question, challenge and critique throughout the year through their participation in Board meetings, and the other activities they have undertaken in their roles.
Skills matrix
The Board, supported by the Nomination and Governance Committee, reviews the skills and diversity represented by the Directors on the Board and determines whether the composition and mix of those skills remains appropriate to achieve BHP’s purpose and strategy.
The Board maintains a skills matrix that identifies the skills and experience the Board needs for the next period of BHP’s development, considering BHP’s circumstances and the changing external environment.
The Board skills matrix identifies the future-facing skills the Board intends to build, acquire and retain over the medium term in anticipation of its needs as it pursues its strategy of securing growth options in future-facing commodities. The Board skills matrix not only indicates the skills and expertise the Board currently possesses but also provides an illustration of the new skills the Board intends to acquire. An external service provider is engaged to assess the skills and experience of the Directors on the Board for the purposes of the skills matrix. The provider objectively assesses the competency and experience of each Director. Where a Director is assessed as having a high level of experience or competency for a particular category, they are included in the skills matrix for that category.
> For more information on Board oversight of climate-related risks and opportunities, refer to Sustainability Report, section 6
For FY2026, the matrix has been updated to reflect changes to the Board’s composition. The current mix of skills represented by the Board as at 18 August 2026 is set out in the following matrix.
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The Board collectively possesses all the skills and experience set out in the skills matrix, and each Director satisfies the Board requirements and attributes discussed in this section.
Skills and attributes |
High level of experience/competency |
Mining Senior executive who has deep operating or technical mining experience with a large company operating in multiple countries; successfully optimised and led a suite of large, global, complex operating assets that have delivered consistent and sustaining levels of high performance (related to cost, returns and throughput); successfully led exploration projects with proven results and performance; delivered large capital projects that have been successful in terms of performance and returns; and a proven record in terms of health, safety and environmental performance and results. |
3 |
Global experience Global experience gained from working, managing business units and residing in multiple geographies over an extended period of time, including a deep understanding of and experience with global markets, and the geopolitical and economic environment. |
9 |
Strategy Senior executive who has had accountability for enterprise‑wide strategy development and implementation in industries with long cycles and developing and leading business transformation strategies. |
10 |
Commodity value chain and customers End‑to‑end value or commodity chain experience – understanding of consumers and customers, marketing demand drivers (including specific geographic markets) and other aspects of commodity chain development. |
8 |
Financial acumen Extensive financial experience and the capability to evaluate financial statements and understand key financial drivers of the business, bringing a deep understanding of corporate finance and internal financial controls. |
10 |
Operating risk Extensive experience with the development and oversight of complex frameworks focused on the identification, assessment and assurance of operational workplace health, safety, environment, climate and community risks. |
9 |
Technology Recent experience and expertise with the development, selection, and implementation of leading and business transforming technology and innovation and responding to digital disruption. |
8 |
Capital allocation and cost efficiency Extensive direct experience gained through a senior executive role in capital allocation discipline, cost efficiency and cash flow, with proven long‑term performance. |
8 |
Social value, community and stakeholder engagement Extensive track record of positive external stakeholder engagement including in relation to community issues and social responsibility. In-depth understanding of public policy, government relations and the intersection between value generation and corporate reputation. |
7 |
Sustainability and decarbonisation transition Understanding of and experience with the identification and management of risks and opportunities related to sustainability and decarbonisation transition. |
8 |
People and talent Extensive experience in talent and capability strategies, including for development, recruitment and retention, industrial relations, managing workforce transitions and upskilling a workforce during periods of rapid change. |
8 |
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4.6 Diversity
BHP has adopted an Inclusion and Diversity Position Statement, which sets out our diversity policy and our priorities to accelerate the delivery of a more inclusive work environment and to enhance overall workplace diversity.
> BHP’s Inclusion and Diversity Position Statement is available at bhp.com/careers/inclusion-diversity
During FY2026, we continued to maintain gender balance within our employee workforce globally. We define gender balance as a minimum 40 per cent women and 40 per cent men, in line with the definitions used by entities such as the International Labour Organization. As at the end of FY2026, BHP’s employee workforce is gender balanced with 41.5 per cent of women.
> For more information on our approach to equitable pay refer to OFR 9.4.
The Board is responsible for approving the measurable objectives for achieving diversity in the composition of the Board, senior executives and workforce generally and assessing the Group’s progress in achieving those measurable objectives, which are set out below. The Nomination and Governance Committee reviews and makes recommendations to the Board on the diversity and measurable objectives for achieving diversity in the composition of the Board and reviews the progress in achieving those measurable objectives.
Measurable objective for FY2026 |
Performance in FY2025 % |
Progress in FY2026 % |
Achieve year-on-year improvement of women in leadership roles in Minerals Australia operations, measured by 3 per cent uplift of women in people leadership roles |
29.0 |
32.5 |
Maintain gender balance on the Board and the ELT (with gender balance defined as a minimum 40 per cent women and 40 per cent men) |
52.6 |
47.4 |
Achieve 9.3 per cent Indigenous employee representation in Minerals Australia operations |
8.96 |
9.3 |
Maintain 10% Indigenous employee representation at Minerals Americas operations in Chile |
10.48 |
11.7 |
> For more information on our focus areas for diversity during FY2026 and the respective proportions of men and women on the Board, in senior executive positions and across the employee workforce refer to OFR 9.4
>More diversity data is available in the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026
The Board’s composition reflects gender balance and a diversity of experience, education and geographic background.
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As at 30 June 2026, 40 per cent of Directors are female and the BHP Board satisfies the target in the UK Listing Rules of having at least 40 per cent female Directors and the guidance of having at least 30 per cent of Directors of each gender in accordance with the ASX Fourth Edition. BHP also satisfies the UK Listing Rule target of having at least one Director from a minority ethnic background on the Board.
BHP does not currently satisfy the UK Listing Rule target that at least one of the senior positions on the Board (which for BHP is the Chair, Chief Executive Officer and Senior Independent Director) is held by a woman. The UK Listing Rule target also includes the Chief Financial Officer in the category of a senior position on the Board. Vandita Pant was appointed as Chief Financial Officer in March 2024, but, in common with Australian listed company practice, the Chief Financial Officer is not a Director on the Board of BHP. As part of its succession planning, the Board reviews the skills and experience (including gender, age, personal strengths and social and ethnic backgrounds) represented by Directors on the Board and determines whether the composition and mix of those skills and diversity remains appropriate to achieve BHP’s purpose and strategy.
The tables in Additional information 7 set out the information required under the UK Listing Rules on diversity as at 30 June 2026. The data presented in these tables was collected by requesting all members of the Board, ELT and Group Company Secretary self-report in questionnaires that include the tables prescribed by the UK Listing Rules.
4.7 Board evaluation
The Board is committed to transparency in assessing the performance of Directors. The Board conducts regular evaluations of its performance, the performance of its Committees, the Group Chair, Directors and the governance processes that support the Board’s work.
The evaluation considers the balance of skills, experience, independence and knowledge of the Group on the Board, its diversity and culture, and the operation of governance processes.
In FY2026, an internal evaluation was conducted with the assistance of external service provider, Lintstock. In FY2027, an external Board evaluation is expected to be conducted.
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Review of individual Director performance
The Board has adopted a policy for all Non-executive Directors to seek re-election annually. The Board uses the results of Director performance evaluations in considering whether to nominate a Director for election or re-election by shareholders. In FY2026, an assessment was conducted of each Director’s performance prior to their nomination for re-election with the assistance of external service provider, Lintstock. Lintstock does not have any other connection with the Group or individual Directors.
The assessment of Directors focused on the contribution of each Director to the work of the Board and its Committees, and the expectations of Directors as set out in BHP’s governance framework. In addition, the assessment focused on how each Director contributes to Board cohesion and effective relationships with fellow Directors, commits the time required to fulfil their role and effectively performs their responsibilities. Directors were asked to comment on areas where their fellow Directors contribute the greatest value and potential areas for development.
Lintstock provided feedback it received to the Chair, which was then discussed with Directors. Feedback relating to the Chair was discussed with the Chair by the Senior Independent Director. As a result of these outcomes, the review supported the Board’s decision to recommend each Director standing for re-election.
Committee assessments
Following an assessment of its work, each Committee concluded that it had met the requirements under its Charter in FY2026.
The Board has four standing Committees and has delegated a number of duties to each Committee to assist the Board in exercising its responsibilities and discharging its duties. Each Committee’s Charter sets out the Committee’s roles and responsibilities. The Committee Charters are reviewed annually and each Committee reviewed their Charter in FY2026.
> The Charters are available at bhp.com/governance
BHP’s Board and Committee governance structure facilitates a considered and integrated approach to key matters. Directors are kept informed through Board papers, management updates, risk reports, training and presentations.
> For more information on BHP’s governance with respect to climate refer to Sustainability Report 6 Governance
The Board appoints the members and Chair of each Committee. Only independent Non-executive Directors can be Committee Chairs.
The members and key roles and responsibilities of each Committee are set out below.
> For Committee attendance and members during FY2026 refer to Directors’ Report 2
5.1 Nomination and Governance Committee
Members
Ross McEwan (Chair), Gary Goldberg, Michelle Hinchliffe, Christine O’Reilly, Catherine Tanna
Key responsibilities/role and focus:
The role of the Nomination and Governance Committee is to support the Board in relation to governance and nomination matters.
The Committee oversees the Group’s corporate governance framework and practices, succession planning and processes, Board and Director performance evaluation, Director training and development, and advises and makes recommendations to the Board on the Group’s existing corporate governance policies, structures or practices.
The Committee also supports the Board with sustainability-related matters that encompass issues that affect the whole of the Group, including areas of strategy, risk and reporting, people and remuneration by reviewing and recommending to the Board for approval the Group’s:
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5.2 Risk and Audit Committee
Members
Michelle Hinchliffe (Chair), Xiaoqun Clever-Steg, Don Lindsay, Christine O’Reilly
Key responsibilities/role and focus:
The role of the Risk and Audit Committee is to support and advise the Board in relation to financial reporting, external and internal audit, capital management and risk management. The Committee also oversees and assists the Board in reviewing the emerging and principal risks facing the Group, including financial and non-financial risks that could threaten the Group’s business model, future performance, solvency, liquidity or reputation (including cyber risk and climate risk).
US committee membership requirements
The Board is satisfied that Michelle Hinchliffe, who serves as Chair on the Risk and Audit Committee, meets the financial expert requirements under the US SEC and is independent under applicable NYSE rules. The Board is also satisfied that the Committee meets the independence criteria under Rule 10A-3 of the Exchange Act.
5.3 Sustainability Committee
Members
Catherine Tanna (Chair), Gary Goldberg, Don Lindsay, Mark Vassella (from 1 June 2026), Dion Weisler
Key responsibilities/role and focus:
The role of the Sustainability Committee is to support and advise the Board on sustainability matters.
The Committee oversees the Group’s health, safety, environment, climate and community performance, including implementation of the Group’s strategy, policies and processes in relation to these matters.
The Committee also reviews and advises the Board on the adequacy of the Group’s governance of health, safety, environment, climate and community matters, including consideration of emerging areas of risk related to the Group’s operations and its engagement with customers, suppliers and communities, such as safety, water, biodiversity, security, cultural heritage and human rights.
5.4 People and Remuneration Committee
Members
Christine O’Reilly (Chair), Catherine Tanna, Mark Vassella (from 1 June 2026), Dion Weisler
Key responsibilities/role and focus:
The role of the People and Remuneration Committee is to support and advise the Board on people and remuneration matters.
The Committee oversees the Group’s key strategies and policies relating to people, including for attraction, recruitment, motivation and retention, employee engagement, leadership and talent development, industrial relations and employee conduct, and monitors the effectiveness of the Group’s people and culture strategy and its alignment with the Group’s purpose and values.
The Committee oversees and monitors the remuneration framework and practices, including the adoption of incentive plans, levels of reward for the CEO and other ELT members and any major changes in employee benefits structures in the Group.
> For information on BHP’s remuneration practices and policies, including on hedging BHP shares and equity instruments, refer to the Remuneration Report
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Below the level of the Board, key management decisions are made by the CEO, the ELT, management committees and members of management in accordance with their delegated authority.
6.1 Executive Leadership Team
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Edgar Basto, Chief Operating Officer (BSc, Metallurgy) Edgar Basto joined BHP in 1989 and was appointed Chief Operating Officer in October 2022. Edgar is responsible for Group Health, Safety and Security, the BHP Operating System (BOS) and global Performance and Improvement. Edgar’s accountability also includes Copper South Australia and its long-term growth pathway. Edgar has previously held senior roles at BHP, including President Minerals Australia, Asset President of Western Australia Iron Ore and Asset President Escondida (Chile). |
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Caroline Cox, Chief Legal, Governance and External Affairs Officer (BA (Hons), MA, LLB, BCL) Caroline Cox joined BHP in 2014 and was appointed Chief Legal, Governance and External Affairs Officer in November 2020. Caroline is responsible for Legal, Governance, Ethics, Compliance, Global Corporate Affairs and Communications and Sustainability. Caroline has previously held senior roles at BHP, including Vice President Legal, Group General Counsel, and Group General Counsel & Company Secretary. Prior to joining BHP, Caroline was a Partner at Herbert Smith Freehills in Australia and a lawyer at various law firms and courts in Canada. |
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Jessica Farrell, President North America and interim President South America (BCom, BSocSc) Jessica Farrell joined BHP in 2019 and was appointed President North America, effective 1 July 2026, with interim accountability as President South America. Jess is responsible for BHP’s copper operations in Chile, joint venture interests in the Americas including the Vicuña joint venture, potash project and operations in Canada, and BHP’s Innovation and Ventures portfolio. Jess has previously held senior roles at BHP including Vice President Innovation and Asset President Western Australia Nickel. Jess has more than 20 years’ experience in the global resources industry across a range of commodities and jurisdictions, including senior operational and commercial roles at Rio Tinto. |
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Vandita Pant, Chief Financial Officer (BCom (Hons), MBA) Vandita Pant joined BHP in 2016 and was appointed Chief Financial Officer effective 1 March 2024. Vandita is responsible for overseeing the Group’s Reporting, Tax, Treasury, Investor Relations, Financial Planning, Risk, Insurance and Internal Audit teams. Vandita has previously held senior roles at BHP, including as Chief Commercial Officer from July 2019 to 29 February 2024, Group Treasurer and Head of Europe. Prior to joining BHP, Vandita had more than 20 years’ experience in executive banking roles across India, Singapore, Japan and the United Kingdom. Vandita brings strong global financial market, commodity, strategy, capital allocation and business development experience to the role. |
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Catherine Raw, Chief Development Officer (MA (Cantab.), Natural Sciences, MSc, Mineral Project Appraisal, CFA) Catherine Raw joined BHP on 29 April 2024 as Chief Development Officer. Catherine is responsible for global Group strategy, decision evaluation and capital planning, corporate business development and mergers and acquisitions. Prior to joining BHP, Catherine held senior roles in resources and finance industries, including at SSE Thermal (a business unit of SSE plc) as Managing Director, Barrick Gold Corporation as Chief Operating Officer for North America and as Chief Financial Officer, and BlackRock as Managing Director, Natural Resources Team. |
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Geraldine Slattery, President Australia (BSc, Physics, MSc, International Management) Geraldine Slattery joined BHP in 1994 and was appointed President Australia in October 2022 with accountability for operational performance and growth projects across BHP’s Australian Iron Ore, Nickel and Coal assets in Western Australia, Queensland and New South Wales. Geraldine has previously held senior roles at BHP, including President Petroleum from 2019 to 2022 through the demerger of that business. Geraldine has over 30 years’ experience with BHP across its global operations, with roles in engineering, operations, commercial and business leadership in jurisdictions across the Americas, UK, Australia, Caribbean and North Africa. |
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Ragnar Udd, Chief Commercial Officer (BAppSc (Mining Engineering), MEng, MBA) Rag Udd joined BHP in 1997 and was appointed Chief Commercial Officer effective 1 March 2024. Rag has global accountability for Sales and Marketing, Procurement, Maritime, Group Business Services as well as developing BHP’s views on global commodities markets and macro trends. Rag has over 25 years’ experience in the global resources industry, including in Australia, Asia and North and South America. He has held senior roles at BHP in operations, logistics, projects and technology, including President Americas from November 2020 to February 2024 and Acting Chief Technology Officer and Asset President of BHP Mitsubishi Alliance. |
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Johan van Jaarsveld, Chief Technical Officer (BEng (Chem), MCom, Applied Finance, PhD (Eng), Extractive Metallurgy) Johan van Jaarsveld joined BHP in 2016 and was appointed Chief Technical Officer effective 1 March 2024. Johan is responsible for Technology, Digital, Minerals Exploration, Value Engineering and the Centres of Excellence for Projects, Maintenance, and Engineering and Resources. Johan has previously held senior executive roles at BHP, including Chief Development Officer from September 2020 to 29 April 2024. Prior to joining BHP, Johan held executive positions in resources and finance, including at Barrick Gold Corporation, Goldman Sachs and The Blackstone Group. |
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Jad Vodopija, Chief People Officer (BA, PGDip (Industrial Relations and Human Resource Management), MComm) Jad Vodopija rejoined BHP in 2019 and was appointed Chief People Officer in July 2022. Jad is responsible for organisational strategy, talent and resource management, leadership development and workforce performance. Jad has previously held senior roles at BHP, including Vice President, Human Resources. Prior to rejoining BHP, Jad was Vice President Human Resources at Orica from 2016, before which she had built her career at BHP and earlier on at Ford Motor Company. |
6.2 Senior management succession
A senior management succession process is conducted to support pipeline stability for critical roles. A talent deep dive is conducted by the Board at least once a year to evaluate these pipelines.
The People and Remuneration Committee oversees the Group’s key strategies and policies for leadership and talent development and senior management succession and considers the readiness of successors across time horizons, contexts and future capability demands. Select Board members are involved in the interview process for executive-level appointments one level below the CEO and occasionally for roles two levels below the CEO. Appropriate checks are undertaken before appointing a member of the ELT. BHP has a written agreement with each ELT member setting out the terms of their appointment.
In June 2026, BHP announced the following changes to the ELT: Jess Farrell was appointed as President North America and interim President South America effective 1 July 2026, and from 1 September 2026, Edgar Basto will be Chief Enterprise Performance Officer. In this new capacity, Edgar will remain accountable for BHP’s Health Safety and Security and the BHP Operating System and in addition, will be accountable for strengthening contractor safety and further embedding operating discipline and performance across the enterprise. Geraldine Slattery will continue as President Australia and will assume responsibility for Copper South Australia, bringing all of the Australian operating assets together under her leadership.
6.3 Performance evaluation of executives
The performance of executives and other senior employees is reviewed on an annual basis. The annual performance review process considers the performance of executives against criteria designed to capture ‘what’ is achieved and ‘how’ it is achieved. All performance assessments of executives include how effective they have been in undertaking their role and what they have achieved against their specified key performance indicators.
A performance evaluation was conducted for all members of the ELT during FY2026. For Mike Henry the CEO during FY2026, the performance evaluation was led by the Chair of the Board on behalf of all the Non-executive Directors and was discussed with the People and Remuneration Committee and considered by the Board.
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BHP shareholder engagement practices
BHP engages regularly with its shareholders to understand their views and feedback and we have an investor relations program to provide avenues for effective and timely two-way communication with investors.
We encourage shareholders to make their views known to us. Shareholders can contact us at any time through our Investor Relations team, with contact details available at bhp.com/investors. In addition, shareholders can receive communications from and send communications to us and our registrar electronically.
Key activities in BHP’s investor engagement program include:
Shareholder engagement practices
BHP communicates information to shareholders and other stakeholders through various forums and publications.
Direct engagement We engage directly with institutional shareholders and investor representative organisations around the world through regular calls, one-on-one meetings and group events, investor roadshows, investor site tours, presentations and attendance at investor conferences. We discuss strategy and governance with investors to enable our management, Board and Committees to regularly hear investor expectations, which can then be used to refine, develop, and continuously improve the governance processes of BHP. We also engage directly with retail shareholders and their representatives. |
Webcasts and Q&A sessions We provide webcasts and Q&A sessions as forums to update shareholders on results or other key announcements and provide an opportunity for investors to ask questions about BHP, including our financial, operational and sustainability performance. |
Website All relevant corporate governance information, including our Annual Report, is available on our website at bhp.com/investors. All ASX announcements are promptly posted to the website. BHP encourages direct contact from shareholders and our website has a ‘Contact Us’ form for contact with our Investor Relations team. Anyone who is interested in receiving news from BHP can subscribe to receive email news alerts at bhp.com/subscribe. |
Chair and Non-executive Director investor meetings The Chair and Senior Independent Director regularly meet with investors to discuss Board priorities and seek shareholder feedback. The People and Remuneration Committee Chair also meets with investors and proxy advisors to discuss remuneration outcomes and our remuneration framework. The investor meetings provide the opportunity for the Chair and relevant Directors to receive direct feedback from investors about our strategy and governance arrangements and to discuss the Board’s perspective. |
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Annual General Meeting We facilitate and encourage shareholder participation at our Annual General Meeting (AGM). The meeting provides an opportunity for all investors to hear about BHP’s performance and to question and engage with the Board and vote on the resolutions. The External Auditor is also available to answer questions at the AGM. Information on our AGM is available at bhp.com/meetings Before the AGM, shareholders are provided with all material information in BHP’s possession relevant to their decision on whether to elect or re-elect a Director. Copies of the speeches delivered by the Chair and CEO at the AGM are released to the relevant stock exchanges and posted on our website. Proceedings at shareholder meetings are webcast live from our website. Resolutions at general meetings are decided by a poll rather than by a show of hands. A summary of proceedings and the outcome of voting on the items of business are released to the relevant stock exchanges and posted on our website as soon as they are available. |
Stakeholder engagement
Site visits Directors visit several of our sites and offices each year. These site visits provide an opportunity for Directors to engage directly with our workforce, partners, community members, Indigenous and First Nations representatives, customers and contractors. The objective of the site visits is to provide Directors with local context and to deepen their understanding of the Group’s operations, culture, material risks and risk management processes, and other issues relevant to the specific site. Site visits in FY2026 included New South Wales Energy Coal (August 2025), Western Australia Iron Ore (October 2025), Jansen (November 2025), and customer and third-party site visits (April and June 2026). In FY2026 Directors also visited NOJV sites Samarco (July 2025) and Vicuña (March 2026). The site visits also form an important part of the induction program for new Directors. |
Workforce Directors also have the opportunity to engage directly with a cross-section of our workforce at Board and Committee meetings, at Director briefing sessions and during visits to our sites and offices. These formal and informal engagements can help to give the Board further insights into our operations and projects and enable discussions with our workforce on matters such as BOS, culture, risk management and continuous improvement at our assets and offices. The engagements also give our people the opportunity to better understand the Board and to provide direct feedback to Directors on topics that are important to them. |
Communities and Indigenous engagement Directors have the opportunity to meet with Traditional Owners, Indigenous partners and community representatives during visits to our sites, at Director briefing sessions and at events hosted by the Board and Chair. Following our inaugural assessment of the health of our relationships with a range of our Indigenous partners in Australia, Canada and Chile in FY2024, the results of our next assessment will be included in the 2027 Annual Report. The Chair and CEO met with the First Nations Heritage Protection Alliance (FNHPA) in CY2026 to discuss key cultural heritage and Indigenous engagement focus areas and initiatives for BHP and FNHPA. |
Customers We regularly meet with customers through direct engagements and via business and industry forums. We engage with customers to discuss the products they need to meet their specific requirements and help accelerate their sustainability goals and commitments. In April 2026, the Board participated in a customer site visit. The site visit provided an opportunity for the Board to discuss our business with customers. |
Presentations and briefings Presentation materials for briefings and speeches related to financial results, strategy and other key topics are available for all stakeholders at bhp.com/investors/presentations-and-briefings. In FY2026, this included ESG Roundtable, BMO Global Metals, Mining & Critical Minerals Conference, Macquarie Australia 2026 Conference and Bank of America Global Metals, Mining and Steel Conference 2026. |
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Events Various events are hosted throughout the year, such as a retail shareholder event in the UK, the AGM, one-on-one meetings and receptions hosted by the Board and Chair to provide opportunities for the Board to engage with a range of partners and stakeholders, including government officials, customers, community members and Traditional Owners and other Indigenous partners. |
Stakeholder engagement
The Board considers effective stakeholder engagement a key element of its governance and oversight role. Our strategy, 2030 goals, purpose and Risk Appetite Statements reflect the significance of external partners and stakeholders in decision-making.
There are multiple ways the views of partners and stakeholders, beyond shareholders, are brought to the Board and its Committees.
Examples of reports that are provided to the Board include Employee Perception Survey findings, gender pay gap reports and updates from the CEO and Chief People Officer. In addition, the Risk and Audit Committee and Sustainability Committee receive reports on engagement with regulators. The Risk and Audit Committee receives reports on material litigation and disputes with third parties and misconduct concerns raised through confidential reporting platforms. The Sustainability Committee receives updates on Community Perception Survey findings.
7.2 Market disclosure
BHP is committed to timely and balanced disclosure of market sensitive information.
BHP’s Market Disclosure and Communications policy sets out the processes designed to ensure compliance with BHP’s relevant disclosure obligations and outlines the way in which information is communicated to shareholders, the investment community and the market. It outlines how we identify and distribute information to shareholders and market participants and sets out the role of the Disclosure Committee in managing compliance with market disclosure obligations. The Board receives copies of material market announcements promptly after they have been made.
Where BHP gives a new and substantive investor or analyst presentation, we release a copy of the presentation materials to the market ahead of the presentation.
>The Market Disclosure and Communications Policy is available at bhp.com/governance
In addition, we have disclosure controls in place for periodic disclosures, including our Operational Review, results announcements, debt investor documents and Annual Report documents, which must comply with relevant regulatory requirements.
>For more information about these verification processes refer to the Disclosure Controls for Periodic Disclosure document available at bhp.com/governance
Code of Conduct
We are committed to the highest level of governance and strive to foster a culture that values and rewards exemplary ethical standards, personal and corporate integrity and respect for others.
The Board, together with management, plays a critical role in setting and reinforcing the culture of the Group.
Our Code of Conduct is approved by the Board and is based on Our Values: Do what’s right, Seek better ways and Make a difference. It applies to all our Directors, senior executives and employees.
Our Code of Conduct includes our policies on speaking up and anti-bribery and corruption, sets out standards of behaviour for our people and is an important statement of the culture at BHP.
>For more information on our policies on speaking up (including as set out in the BHP Whistleblower Policy) which can be accessed through Our Code of Conduct and our commitment against corruption refer to OFR 9.6
>Our Code of Conduct is available at bhp.com/about/operating-ethically/our-code/
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BHP’s channels to raise misconduct concerns
We have mechanisms in place for anyone to raise a query about Our Code of Conduct or make a report if they feel Our Code of Conduct has been breached. BHP’s reporting channels to raise misconduct concerns comprise an online portal and 24-hour multilingual call service. These channels are confidential and accessible to all employees, contractors and external partners and stakeholders, including members of the public, to raise concerns about misconduct that may be unethical, illegal or inconsistent with Our Code of Conduct. All misconduct concerns raised through our reporting channels are reviewed and categorised by the Ethics and Investigations team. Once categorised, reports are assigned in accordance with internal policy and processes to an investigator, line leader or appropriate team for resolution. All significant Our Code of Conduct matters and key trends from investigations are reported to the Risk and Audit Committee. These are then reported to the Board as part of its report-out process.
>For more information on ethics and business conduct refer to OFR 9.6
>More information on ethics and business conduct is available at bhp.com/ethics
9.1 Risk management governance structure
Risk governance
The Risk and Audit Committee (RAC) oversees and assists the Board in risk management and reviewing the emerging and principal risks facing the Group, including financial and non-financial risks that could threaten the Group’s business model, future performance, solvency, liquidity or reputation. This includes business risk, financial reporting risk, insurance risk, tax risk, technology security and cyber risk, climate risk and ethical compliance programs. The Board requires the CEO to implement a system of control for identifying and managing risk. The Risk team is accountable for this system, known as BHP’s Risk Framework, and also supports, challenges and verifies risk management activities to give assurance to management and the Board. The Directors, with support from the RAC, monitor and, at least annually, review the effectiveness of the Group’s systems of risk management and internal control. In undertaking its review, the RAC makes a recommendation to the Board on whether the systems of risk management and internal control continue to be sound and whether the Group is operating with due regard to the risk appetite set by the Board.
>For more information about BHP’s risks, including environmental and social risks, refer to OFR 6 and OFR 9
Internal audit
The Internal Audit team provides assurance to the Board, CEO and ELT on whether risk management, internal control and governance processes are adequate and functioning. The Internal Audit team is independent of the External Auditor. The RAC evaluates and, if thought fit, approves the Terms of Reference of the Internal Audit team, annual internal audit plan and the annual performance objectives for the Internal Audit team in accordance with the internationally recognised requirements of The Institute of Internal Auditors’ Global Internal Audit Standards and monitors the effectiveness of the internal audit activities.
The RAC approves the appointment and dismissal of the Chief Audit Officer (which is currently the Chief Risk and Audit Officer) and assesses their performance, independence and objectivity. During FY2026, the Chief Risk and Audit Officer reported directly to the RAC and functional oversight of the Internal Audit team was provided by the Chief Financial Officer.
Effectiveness of systems of internal control and risk management
In delegating authority to the CEO, the Board has established CEO limits, outlined in the Board Governance Document. These limits require the CEO to ensure there is a system of control in place for identifying and managing risk in BHP. Through the RAC, the Directors regularly review these systems for their effectiveness. These reviews include assessing whether processes continue to meet evolving external governance requirements.
The RAC oversees and reviews the internal controls and risk management systems (including procedures, processes and systems for, among other things, financial controls, financial reporting, reporting of reserves and resources, closure and rehabilitation, legal and ethical compliance, preventing fraud and serious breaches of business conduct, speak-up procedures, information technology security and cyber risk). Any material breaches of Our Code of Conduct, including breaches of our anti-bribery and corruption requirements and any material incidents reported under our speak-up procedures are reported quarterly to the RAC by the Chief Ethics, Compliance and Human Rights Officer. These reports are available to all Directors and material matters are also communicated to the Board.
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During FY2026, management presented an assessment of the material risks facing BHP and the effectiveness of the Group’s systems of risk management. The reviews were overseen by the RAC, with material findings and recommendations reported to the Board. In addition to considering key risks facing BHP, the Board assessed the effectiveness of internal controls over key risks identified through the work of the Board Committees.
Having carried out a review during FY2026, the Board is satisfied with the effectiveness of BHP’s risk management and internal control systems.
Environmental and social risks
BHP’s risk factors (including material exposure to environmental and social risks) and how we manage these risks are described in OFR 6.
9.2 External audit and financial reporting
Integrity of Financial Statements
The RAC assists the Board in assuring the integrity of the Financial Statements. The RAC evaluates and makes recommendations to the Board about the appropriateness of accounting policies and practices, areas of judgement, compliance with accounting standards, stock exchange and legal requirements and the results of the external audit.
CEO and CFO assurance
For the FY2026 full year and half year, the CEO and CFO have provided a declaration that in their opinion, BHP’s financial records have been properly maintained and those Financial Statements comply with accounting standards and applicable regulatory requirements and give a true and fair view of the financial position and performance of BHP, and that the opinion was formed on the basis of a sound system of risk management and internal control, which is operating effectively. The RAC considered these declarations when recommending the Financial Statements to the Board for approval.
External Auditor
The RAC manages the relationship with the External Auditor on behalf of the Board. It considers the independence and reappointment of the External Auditor each year, as well as remuneration and other terms of engagement and makes a recommendation to the Board.
Evaluation of External Auditor and external audit process
The RAC evaluates the objectivity and independence of the External Auditor and the quality and effectiveness of the external audit arrangements, including through:
In addition, the RAC reviews the integrity, independence and objectivity of the External Auditor and assesses whether there is any element of the relationship that impairs or appears to impair the External Auditor’s judgement or independence. The External Auditor also certifies its independence to the RAC.
Non-audit services
Although the External Auditor provides some non-audit services to the Group, the objectivity and independence of the External Auditor are safeguarded through restrictions on the provision of these services with some services prohibited from being undertaken.
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Pre-approved services
The RAC has adopted a policy titled Provision of Audit and Other Services by the External Auditor covering the RAC’s pre-approval policies and procedures to maintain the independence of the External Auditor.
The categories of ‘pre-approved’ services are:
Activities outside the scope of the categories above are not ‘pre-approved’ and must be approved by the RAC prior to engagement, regardless of the dollar value involved. In addition, any engagement for other services with a value over US$250,000, even if listed as a ‘pre-approved’ service, requires the approval of the RAC.
All engagements for non-audit services, whether ‘pre-approved’ or not and regardless of the dollar value involved, are reported quarterly to the RAC. While not prohibited by BHP’s policy, any proposed engagement of the External Auditor relating to internal control requires specific prior approval from the RAC. In addition, while the categories of ‘pre-approved’ services include a list of certain pre-approved services, the use of the External Auditor to perform these services will always be subject to our overriding governance practices as articulated in the policy.
In addition, the RAC did not approve any services during the year ended 30 June 2026 pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of SEC Regulation S-X (provision of services other than audit).
Fees paid to BHP’s External Auditor during FY2026 for audit and other services were US$15.441 million, of which 72 per cent comprised audit fees (including in relation to Sarbanes-Oxley Act of 2002 (SOX) matters), 12 per cent for audit-related fees and 16 per cent for all other fees. No fees were paid in relation to tax services. For information on the fees paid refer to Financial Statements note 34 ‘Auditor’s remuneration’.
>The Provision of Audit and Other Services by the External Auditor policy is available at bhp.com/governance
Management’s assessment of internal control over financial reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a–15(f) and Rule 15d–15(f) under the Exchange Act).
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements and, even when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of our management, including our CEO and CFO, the effectiveness of BHP’s internal control over financial reporting was evaluated based on the framework and criteria established in Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that internal control over financial reporting was effective as at 30 June 2026. There were no material weaknesses in BHP’s internal controls over financial reporting identified by management as at 30 June 2026.
BHP has engaged independent registered public accounting firm, Ernst & Young (EY), to issue an audit report on the effectiveness of our internal control over financial reporting for inclusion in the Annual Report on Form 20-F as filed with the SEC. There were no changes in our internal control over financial reporting during FY2026 that materially affected or were reasonably likely to materially affect our internal control over financial reporting. During FY2026, the RAC reviewed our compliance with the obligations imposed by SOX, including evaluating and documenting internal controls as required by section 404 of SOX.
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Management’s assessment of disclosure controls and procedures
Management, with the participation of our CEO and CFO, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as at 30 June 2026. Disclosure controls and procedures are designed to provide reasonable assurance that the material financial and non-financial information required to be disclosed by BHP, including in the reports it files or submits under the Exchange Act, is recorded, processed, summarised and reported on a timely basis. This information is accumulated and communicated to BHP’s management, including our CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure. Based on the evaluation, management (including the CEO and CFO) concluded that as at 30 June 2026, our disclosure controls and procedures are effective in providing that reasonable assurance.
There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.
In the design and evaluation of our disclosure controls and procedures, management was required to apply its judgement in evaluating the cost-benefit relationship of possible controls and procedures.
BHP Group Limited is a registrant with the SEC in the United States. It is classified as a foreign private issuer and has American Depositary Shares listed on the NYSE.
We have reviewed the governance requirements applicable to foreign private issuers under SOX, including the rules promulgated by the SEC and the rules of the NYSE, and are satisfied that we comply with those requirements.
Under NYSE rules, foreign private issuers such as BHP are required to disclose any significant ways our corporate governance practices differ from those followed by US companies under the NYSE corporate governance standards. After a comparison of our corporate governance practices with the requirements of Section 303A of the NYSE Listed Company Manual followed by US companies, two significant differences were identified:
We have a Securities Dealing policy and procedures that cover the purchase, sale and other dealings of our securities by Directors, senior management and employees that seek to promote compliance with
>The Securities Dealing policy is available at bhp.com/governance
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Directors' Report
The information presented by the Directors in this Directors’ Report relates to BHP Group Limited and its subsidiaries. The Operating and Financial Review (OFR) and the Remuneration Report are incorporated by reference into and form part of this Directors’ Report.
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A review of the operations of BHP during FY2026, the results of those operations during FY2026, the expected results of those operations in future financial years and information on our financial position are set out in the OFR 1–7 and 9. Information on the likely developments in BHP’s operations in future years and the expected results of those operations also appears in that section.
Our principal activities, including significant changes in the nature of BHP’s principal activities during FY2026, are outlined in OFR 1–4.
There were no significant changes in BHP’s state of affairs that occurred during FY2026 and no significant post balance date events other than as disclosed in the OFR and Financial Statements note 33 ‘Subsequent events’.
No other matter or circumstance has arisen since the end of FY2026 that has significantly affected or is expected to significantly affect the operations, the results of operations or state of affairs of BHP in future years.
The Directors who served at any time during FY2026 or up until the date of this Directors’ Report are listed in the Board and Board Committee attendance table below. Information on the current Directors, including their terms of service, qualifications, experience and special responsibilities, and directorships of other listed companies held in the last three years, is set out in the Corporate Governance Statement 4.1. This information is incorporated by reference into and forms part of this Directors’ Report.
Director attendances at meetings
The Board meets as often as required. During FY2026, the Board met 13 times.
Members of the Executive Leadership Team and other members of senior management attend meetings of the Board by invitation.
Each Board Committee provides a standing invitation for any Non-executive Director to attend Committee meetings (rather than just limiting attendance to Committee members). Committee agendas and papers are provided to all Directors concerning matters to be considered. The table below excludes the attendance of Directors at Committee meetings where they were not a Committee member.
Board and Board Committee attendance in FY2026
|
|
Board |
|
|
|
|
|
Nomination and |
|
People and |
|
|
|
|
||||||
Risk and Audit |
Governance |
Remuneration |
Sustainability |
|||||||||||||||||
Committee |
Committee |
Committee |
Committee |
|||||||||||||||||
|
Attended |
|
Held1 |
|
Attended |
|
Held1 |
|
Attended |
|
Held1 |
|
Attended |
|
Held1 |
|
Attended |
|
Held1 |
|
Xiaoqun Clever-Steg |
|
13 |
|
13 |
|
8 |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
Gary Goldberg |
|
13 |
|
13 |
|
|
|
|
|
4 |
|
4 |
|
|
|
|
|
5 |
|
5 |
Mike Henry2 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Michelle Hinchliffe |
|
13 |
|
13 |
|
8 |
|
8 |
|
4 |
|
4 |
|
|
|
|
|
|
|
|
Don Lindsay |
|
13 |
|
13 |
|
8 |
|
8 |
|
|
|
|
|
|
|
|
|
5 |
|
5 |
Ross McEwan |
|
13 |
|
13 |
|
8 |
|
8 |
|
4 |
|
4 |
|
4 |
|
4 |
|
|
|
|
Christine O’Reilly |
|
13 |
|
13 |
|
8 |
|
8 |
|
4 |
|
4 |
|
4 |
|
4 |
|
|
|
|
Catherine Tanna |
|
12 |
|
13 |
|
|
|
|
|
3 |
|
4 |
|
4 |
|
4 |
|
5 |
|
5 |
Mark Vassella3 |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
1 |
|
1 |
|
1 |
|
1 |
Dion Weisler |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
4 |
|
4 |
|
5 |
|
5 |
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Directors’ shareholdings
Subject to securities dealing constraints, Non-executive Directors have agreed to apply at least 25 per cent of their remuneration (base fees plus Committee fees) to the purchase of BHP shares until they achieve a minimum shareholding requirement equivalent in value to one year of remuneration (base fees plus Committee fees). Details of Directors’ shareholdings in BHP as at the date of this Directors’ Report are shown in the table below. All Directors have met the minimum shareholding requirement under their Terms of Appointment as at 30 June 2026, except for Mark Vassella who joined the Board on 1 June 2026. Brandon Craig became an Executive Director on 1 July 2026. No rights or options over shares in BHP Group Limited are held by any of the Non-executive Directors. We have not made available to any Directors any interest in a registered scheme. No shareholder possesses voting rights that differ from those attaching to all of BHP Group Limited’s voting securities.
Director |
|
Number of shares held1 |
|
|
Brandon Craig2 |
|
|
47,839 |
|
Xiaoqun Clever-Steg |
|
|
10,000 |
|
Gary Goldberg |
|
|
24,000 |
|
Mike Henry3 |
|
|
556,394 |
|
Michelle Hinchliffe |
|
|
12,330 |
|
Don Lindsay |
|
|
10,000 |
|
Ross McEwan |
|
|
45,000 |
|
Christine O’Reilly |
|
|
10,620 |
|
Catherine Tanna |
|
|
10,400 |
|
Mark Vassella |
|
|
4,825 |
|
Dion Weisler |
|
|
11,494 |
|
Executive Key Management Personnel
Interests held by members of the Executive Key Management Personnel (KMP) under employee equity plans as at 30 June 2026 are set out in the tables contained in the Equity awards section in the Remuneration Report.
The table below sets out the relevant interests in shares in BHP Group Limited held directly, indirectly or beneficially, as at 30 June 2026 by those senior executives who were Executive KMP (other than the Executive Director) on that date.
Executive KMP member |
|
Number of shares held1 |
|
|
Brandon Craig2 |
|
|
47,839 |
|
Vandita Pant |
|
|
250,935 |
|
Geraldine Slattery |
|
|
276,999 |
|
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During FY2026, we did not make any on-market or off-market purchases of BHP Group Limited ordinary shares under any share buy-back program. As at the date of this Directors’ Report, there were no current on-market buy-backs.
Some of our executives receive rights over BHP shares as part of their remuneration arrangements. Entitlements may be satisfied by the transfer of existing shares, which are acquired on-market by the Employee Share Ownership Plan Trusts or, in respect of some entitlements, by the issue of shares. During FY2026, no shares were purchased on-market for the Employee Share Ownership Plan Trusts.
As at the date of this Directors’ Report, there were 17,562,722 unvested equity awards outstanding in relation to BHP Group Limited ordinary shares held by 26,609 holders. The expiry dates of these unvested equity awards range between August 2026 and August 2030 and there is no exercise price. 5,399,471 fully paid ordinary shares in BHP Group Limited were issued as a result of the exercise of rights over unissued shares during or since the end of FY2026. No options over unissued shares or unissued interests in BHP have been granted during or since the end of FY2026 and no shares or interests were issued as a result of the exercise of an option over unissued shares or interests during or since the end of FY2026.
> For more information refer to Financial Statements note 26 ‘Employee share ownership plans’. For information on movements in share capital during and since the end of FY2026 refer to Financial Statements note 17 ‘Share capital’
Stefanie Wilkinson is the Group Company Secretary. For details of her qualifications and experience refer to Corporate Governance Statement 4.1. Stefanie Wilkinson has experience in a company secretariat role or other relevant fields arising from time spent advising other large-listed companies or other relevant entities.
Rule 146 of the BHP Group Limited Constitution requires the company to indemnify, to the extent permitted by law, each Officer of BHP Group Limited against liability incurred in or arising out of the conduct of the business of BHP or the discharge of the duties of the Officer. The Directors named in 4.1 of the Corporate Governance Statement, and the Company Secretary and other Officers of BHP Group Limited have the benefit of this requirement, as do individuals who formerly held one of those positions.
In accordance with this requirement, BHP Group Limited has entered into Deeds of Indemnity, Access and Insurance (Deeds of Indemnity) with its Directors.
Under BHP’s Deed Poll for Indemnification, BHP Group Limited and BHP Group (UK) Ltd (formerly BHP Group Plc) must, to the extent permitted by law, indemnify current and former employees of the Group against liability to third parties incurred in or arising out of the conduct of the business of the Group or the discharge of the duties of these employees, including where an employee performs a role at another entity at the request of the Group. The indemnity is subject to certain limitations and does not apply where the liability has arisen in circumstances involving recklessness, wilful misconduct or lack of good faith by the employee seeking indemnification.
In addition, as part of the arrangements to effect the demerger of South32, we agreed to indemnify certain former Officers of BHP who transitioned to South32 from certain claims and liabilities incurred in their capacity as Directors or Officers of South32.
The terms of engagement for certain services include that we must compensate and reimburse EY for and protect EY against any loss, damage, expense or liability incurred by EY in respect of third-party claims arising from a breach by BHP of any obligation under the engagement terms.
We have insured against amounts that we may be liable to pay to Directors, Company Secretaries or certain employees (including former Officers) pursuant to Rule 146 of the Constitution of BHP Group Limited or that we otherwise agree to pay by way of indemnity. The insurance policy also insures Directors, Company Secretaries and some employees (including former Officers) against certain liabilities (including legal costs) they may incur in carrying out their duties. For this Directors’ and Officers’ insurance, we paid premiums of US$11,707,974 excluding taxes during FY2026.
No indemnity in favour of a current or former Officer of BHP Group Limited or in favour of the External Auditor was called on during FY2026.
A final dividend of 99 US cents per share will be paid on 23 September 2026, resulting in total cash dividends determined in respect of FY2026 of 172 US cents per share.
>For information on the dividends paid refer to Financial Statements note 19 ‘Dividends’
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No current Officer of BHP has held the role of director or partner of the Group’s current External Auditor.
For information on the non-audit services undertaken by BHP’s External Auditor, including the amounts paid for non-audit services, refer to Financial Statements note 34 ‘Auditor’s remuneration’. All non-audit services were approved in accordance with the process set out in the Policy on Provision of Audit and Other Services by the External Auditor. No non-audit services were carried out that were specifically excluded by the Policy on Provision of Audit and Other Services by the External Auditor. Based on advice provided by the Risk and Audit Committee, the Directors have formed the view that the provision of non-audit services is compatible with the general standard of independence for auditors, and that the nature of non-audit services means that auditor independence was not compromised. The reason for this view is that the objectivity and independence of the External Auditor are safeguarded through restrictions on the provision of these services with some services prohibited from being undertaken.
>For more information about our policy in relation to the provision of non-audit services by the external auditor refer to ‘External audit and financial reporting’ in our Corporate Governance Statement 9.2
Companies within the Group carry out exploration and research and development necessary to support their activities.
>For more information refer to OFR 4, OFR 7 and Additional information 6
BHP Group Limited is an entity to which the Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183 applies. Amounts in this Directors’ Report and the Financial Statements, except estimates of future expenditure or where otherwise indicated, have been rounded to the nearest million dollars in accordance with ASIC Instrument 2026/183.
No proceedings have been brought on behalf of BHP Group Limited, nor has any application been made, under section 237 of the Australian Corporations Act 2001.
BHP seeks to be compliant with all applicable environmental laws and regulations relevant to its operations. We monitor compliance on a regular basis, including through external and internal means, to minimise the risk of non-compliance.
>For more information on BHP's performance in relation to health, safety and the environment refer to OFR 1, OFR 9.5, and OFR 9.9
For the purposes of section 299(1)(f) of the Australian Corporations Act 2001, in FY2026 BHP was levied 6 fines in relation to environmental laws and regulations at our operated assets, the total amount payable being US$45,115.
The Group, through various subsidiaries, has established branches in a number of other countries.
The Directors’ Report is approved in accordance with a resolution of the Board.
/s/ Ross McEwan |
/s/ Brandon Craig |
Ross McEwan |
Brandon Craig |
Chair |
Chief Executive Officer |
Dated: 18 August 2026 |
|
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Letter from the People and Remuneration Committee Chair
Dear Shareholders,
I am pleased to present BHP’s Remuneration Report for FY2026.
Strong performance in FY2026
We had strong operational and financial results in FY2026. Importantly, we did so safely. During the reporting period we were fatality free and our key safety measures improved.
Those achievements have, however, been overshadowed by the recent loss of a contracting colleague following a workplace incident in July 2026. We are determined to learn from this tragic incident and eliminate fatalities and serious injuries at BHP.
Our operational performance generated significant cash flow in FY2026. We have determined a final dividend totallingUS$5.0 billion. This brings total cash returns to shareholders announced for the year to US$8.7 billion, which is US$1.72 per share fully franked, the highest in four years. Including this dividend, we will have returned more than US$115 billion to shareholders over the past ten years.
FY2026 was also a significant year for BHP’s leadership, with the Board announcing the appointment of Brandon Craig as Chief Executive Officer (CEO) and Director of BHP Group Limited, effective 1 July 2026. Brandon succeeded Mike Henry, who stepped down as CEO on 30 June 2026 after six and a half years in the role. Executive Leadership Team changes have been announced to ensure the right mix of skills, experience and perspectives to deliver BHP’s strategy, pursue our growth agenda and manage relationships in each region. From 1 July 2026, the President Americas role has been split into President North America and President South America, which will allow a greater focus on each of these regions.
Remuneration outcomes in FY2026
Our remuneration framework is structured to support BHP’s strategy while fostering a culture that reflects Our Values, Our Purpose and performance expectations. It is also designed to link executive remuneration with shareholder value creation, through a combination of fixed remuneration, the Cash and Deferred Plan (CDP) and Long Term Incentive Plan (LTIP). By delivering remuneration over multiple time horizons, the framework encourages behaviours that reward the achievement of both near-term strategic objectives and sustainable long-term performance outcomes.
The Board and the People and Remuneration Committee (Committee) assessed the FY2026 CDP remuneration outcomes based on a balanced scorecard that reflects BHP’s focus on safety and sustainability including climate change, performance and financial measures, and personal/Group strategic outcomes.
For the CEO (Mike Henry), the FY2026 CDP outcome was 118 per cent against a target of 100 per cent, the outperformance awarded reflecting the achievements of the year
For safety and sustainability measures, the CEO outcome was 31 per cent out of a target 25 per cent. The FY2026 CDP scorecard includes a 10 per cent measure for significant health, safety, environment and community events and reflects a year where we had no fatalities and significantly reduced injuries with fatal potential from FY2025. The FY2026 CDP scorecard also includes a 10 per cent climate and environment measure, and key elements reflected in the outcome include our management of operational greenhouse gas (GHG) emissions, commencement of proof-of-concept trials for battery-electric haul trucks at WAIO’s Jimblebar site and trial milestones for battery-electric locomotives at WAIO, and advancement of our climate adaptation work program.
For financial measures, the CEO outcome was 50 per cent out of a target 50 per cent. Underlying Return on Capital Employed (ROCE) is the financial measure used that assesses our profitability and effective use of capital. In FY2026, copper production increased significantly for the second consecutive year driven by strong performance at Escondida. WAIO achieved record iron ore production, BMA delivered the highest stripping volumes in five years, and NSWEC exceeded the top end of its production guidance range. In FY2026 BHP’s share price performed very strongly increasing by 70 per cent in US$ terms.
For group and personal measures, the CEO outcome was 37 per cent out of a target of 25 per cent. These measures included people, performance and portfolio projects and initiatives.
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The FY2026 CDP outcomes for other Executive KMP were 118 per cent for the CFO, 115 per cent for the President Americas, and 115 per cent for the President Australia.
BHP’s LTIP seeks to reward sustained, long-term performance and growth aligned with BHP’s values and shareholder value creation. The five-year performance period for the 2021 LTIP Performance Rights ended on 30 June 2026, and the vesting outcome was 40 per cent for BHP based on BHP’s Total Shareholder Return (TSR) performance of 80 per cent against the comparator groups.
An important aspect of the five-year CDP and LTIP awards is that before vesting, the Committee undertakes a holistic review of performance over the five-year performance period. This extra step reflects a long-term outlook and ensures that performance and progress align with the experience of our shareholders. The Committee considered BHP’s performance on safety, sustainability (including climate), financial, corporate governance and conduct over the five-year performance period from 1 July 2021 to 30 June 2026. For example, on climate change, we have made further progress on reducing our operational GHG emissions over the five-year performance period, to support achievement of our medium-term target by FY2030, and delivered a range of actions towards the targets and goals we set out in our Climate Transition Action Plan 2024. As a Committee we are satisfied the outcomes are fair and reflect the shareholder experience during the period.
Looking ahead
We are a global company seeking to attract and retain the best talent in a competitive market.
The Committee reviewed executive remuneration during FY2026. To reflect ongoing performance and development, the Committee determined an increase of four per cent for the Chief Financial Officer and six per cent for the President Americas effective 1 January 2026 and six per cent for the President Australia, effective 1 September 2026. The CEO’s remuneration arrangements were announced in March 2026 and Brandon Craig’s remuneration from 1 July 2026 includes a base salary of US$1,900,000 per annum, pension contributions of 10 per cent of base salary, and CDP and LTIP opportunities consistent with our prior CEO incentive arrangements.
For Non-executive Directors, a benchmarking assessment was undertaken during FY2026 and identified that the base annual fees for the Chair and Non-executive Directors were no longer aligned with market benchmarks for comparable roles at relevant global peer companies. As a result, the Board determined that the base annual fees for the Chair and Non-executive Directors will increase by 10 per cent in FY2027. There is no change to fees for other Committee roles or other allowances in FY2027.
Our people
We strive to offer an engaging and supportive workplace, which empowers our people to find safer and more productive ways of working. We continue to maintain our long-term female representation aspirational goal and achieved our Indigenous workforce participation targets for FY2026. The efforts that have underpinned this achievement have made BHP a safer, more productive, and better performing business. The Committee monitored culture through visits to BHP sites and offices and discussions with management. We continue to support a performance management framework that places a strong emphasis on how we deliver results alongside what is achieved. This is critical to delivering the best outcomes for BHP shareholders.
On behalf of the Committee, I thank shareholders for their continued engagement and feedback on BHP’s remuneration approach.
/s/ Christine O'Reilly
Christine O’Reilly
Chair, People and Remuneration Committee
The abbreviations used in the following pages are listed on page 126
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Remuneration Report
Remuneration at a glance
Key performance Remuneration outcomes
Total shareholder 80% |
|
|
Return on Capital 26.1% |
||
Dividends per 172USc determined in respect to FY2026
|
FY2026 CEO MSR Mike Henry Actual 9.2x base salary Policy requirement: |
LTIP vesting in FY2026 40% BHP TSR outperformed the 50th percentiles of the Sector Peer group by 6% and the MSCI World Index by 28% |
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Our Key Management Personnel
This Remuneration Report sets out the remuneration of BHP’s KMP. These are our Directors (including the CEO) and certain members of our Executive Leadership Team (ELT) who have authority and responsibility for planning, directing and controlling BHP’s activities, either directly or indirectly. Throughout the Remuneration Report, KMP are referred to as either Non-executive Directors or Executive KMP. BHP’s KMP for the Reporting Period were:
Non-executive Directors |
|
Executive KMP |
|||
Name |
Term |
|
Name |
KMP position |
Term |
Ross McEwan |
Full year |
|
Mike Henry |
Chief Executive Officer and |
Full year |
Xiaoqun Clever-Steg |
Full year |
|
Brandon Craig |
President Americas |
Full year |
Gary Goldberg |
Full year |
|
Vandita Pant |
Chief Financial Officer |
Full year |
Michelle Hinchliffe |
Full year |
|
Geraldine Slattery |
President Australia |
Full year |
Don Lindsay |
Full year |
|
|
|
|
Christine O’Reilly |
Full year |
|
|
|
|
Catherine Tanna |
Full year |
|
|
|
|
Mark Vassella |
Part year Joined the Board on 1 June 2026 |
|
|
|
|
Dion Weisler |
Full year |
|
|
|
|
Changes to the CEO are outlined later in the Report (refer to ‘CEO transition’).
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Remuneration governance
BHP’s corporate governance underpins the way we do business, including our approach to our remuneration framework and reward systems, which aim to support BHP’s strategy and encourage a culture aligned with BHP’s values, purpose and risk appetite. The diagram below represents how BHP makes decisions on remuneration.
Overview of BHP’s remuneration framework
BHP provides Executive KMP with a mix of fixed and variable remuneration. There are three components of our Executive KMP remuneration framework: (1) fixed remuneration, (2) Cash and Deferred Plan, and (3) Long Term Incentive Plan. BHP structures the delivery of remuneration across different time periods to balance the achievement of near-term strategic objectives with longer-term drivers. The majority of remuneration delivered is ‘at risk’.
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The Board and Committee apply overarching discretion to determine fair and commensurate remuneration that reflects the objectives of the remuneration framework and takes into account shareholder expectations and market conditions.
|
Fixed remuneration |
Cash and Deferred Plan (CDP) |
Long Term Incentive Plan (LTIP) |
What is it? |
Fixed portion of remuneration that is paid regularly throughout the year. |
The CDP is an annual cash and equity-based incentive scheme, providing remuneration over the short, medium and longer term. |
The LTIP is a long-term incentive scheme with awards vesting in five years, subject to vesting conditions. |
How is it delivered? |
Base salary Pension contributions Other benefits |
One third of the CDP award is paid in cash. The remaining two thirds of the CDP are deferred into two equity awards (Deferred Rights) of equal value over two and five years to encourage retention and sustained medium and longer‑term performance. |
The LTIP is delivered in Performance Rights, subject to meeting vesting conditions over a five-year period. |
What does it reward and how does it link with strategy? |
Competitive and appropriate fixed remuneration is provided to attract, motivate and retain talented and experienced global executives with the right capability to deliver against BHP’s strategic objectives. |
Rewards the annual achievement of strategic goals and outperformance, encourages retention and aligns behaviours towards Our Values. |
Rewards sustained, long-term performance and growth aligned with shareholder value creation and Our Values. |
How does it link to performance? |
Fixed remuneration reflects the global scope and complexity of the role, and the location, skills, performance, qualifications and experience of the individual. Fixed remuneration is reviewed annually by the Committee to ensure it remains aligned to performance, significant developments, changes in accountabilities and/or external market movements. |
CDP award outcomes are annually assessed against a balanced scorecard of metrics linked to the execution of business strategy: 25% Safety and sustainability (including climate) 50% Financial; and 25% Group and personal measures |
Under the LTIP, BHP’s performance is assessed against the relative TSR of two comparator groups over the five-year period. TSR provides a valuable comparative, external market performance benchmark and a direct link between Executive KMP reward and shareholder returns. Vesting of LTIP Performance Rights is subject to specific hurdles outlined on page 117. |
|
Vesting of both the CDP Deferred Rights (5 Year) and LTIP Performance Rights are subject to a holistic review of performance at the end of the five-year vesting periods, including a review of safety and sustainability performance (including climate), financial performance and conduct. This is an important feature of BHP’s remuneration framework that supports delivery of longer term strategic priorities. |
||
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Remuneration mix
The overall potential total remuneration of the CEO and other Executive KMP is shown in the diagram below.
The maximum opportunity represented below is the most that could potentially be paid for each remuneration component. It does not reflect actual awards granted by the Group. Actual remuneration received by the CEO and other Executive KMP depends on the outcomes of the CDP and LTIP which are driven by the achievement of business and individual performance measures.
The target LTIP value reflects the fair value of the awards, being 50 per cent of the face value, which is 200 per cent of base salary for the CEO and 175 per cent of base salary for other Executive KMP. The maximum LTIP value is based on the face value. The value of CDP and LTIP awards excludes the potential impact of future share price movements.
Paying competitively
BHP is a global company with operations and employees around the world, including in Australia, Canada, Chile and the United States.
>For information on where we operate refer to OFR 2 of this Report
BHP has a diverse and mobile workforce. We offer competitive and equitable remuneration to attract, motivate and retain the talent we need to deliver on our strategy.
To ensure our reward practices remain fit for purpose in a dynamic and highly competitive talent market, we apply a disciplined and data-driven approach. This includes benchmarking our Executive KMP remuneration against comparable positions in global companies of similar scale, complexity and geographic reach with a focus on companies that compete with BHP for leadership talent. We consider factors such as role responsibilities, location, skills, qualifications and experience.
We also conduct regular performance reviews and apply rigorous governance to ensure accountability and alignment with shareholder and stakeholder expectations.
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During FY2026, the Committee reviewed other Executive KMP remuneration and determined an increase of four per cent for the CFO and six per cent for the President Americas effective 1 January 2026, to reflect their ongoing performance and development in their roles since their appointments in early 2024. For FY2027, the Committee determined an increase of six per cent for the President Australia, effective 1 September 2026 to reflect ongoing performance and expanded the role scope to which now includes Copper South Australia. Details of the incoming CEO’s (Brandon Craig) remuneration arrangements for FY2027 are set out on page 121.
Key terms of our variable remuneration framework and equity plans for FY2026
The key terms of the FY2026 CDP and the 2026 LTIP are outlined below.
|
CDP |
LTIP |
Description |
CDP awards are split into three equal parts – a cash component paid annually and two awards of equity vesting in two and five years, subject to service conditions. |
The LTIP is delivered in Performance Rights, which are conditional rights to receive BHP shares subject to service and performance conditions. |
Performance period and |
The CDP performance period is one year and performance is assessed against the CDP scorecard. The FY2026 CDP performance period was 1 July 2025 to 30 June 2026. CDP cash is paid annually following the end of the performance period. FY2026 CDP Deferred Rights (2 Year) are rights to receive BHP shares subject to a two-year service condition from 1 July 2026 to 30 June 2028. FY2026 CDP Deferred Rights (5 Year) are rights to receive BHP shares subject to a five-year service condition from 1 July 2026 to 30 June 2031 and a holistic review of performance at the end of the vesting period (outlined below). |
The LTIP performance period is five years. The 2026 LTIP performance period is 1 July 2026 to 30 June 2031, with vesting shortly after. The vesting conditions are: • BHP’s relative TSR performance • a service condition • a holistic review of performance at the end of the vesting period (outlined below) |
Opportunity |
• For all Executive KMP the target is 80% of base salary for each of the CDP cash component, CDP Deferred Rights (2 Year) and CDP Deferred Rights (5 Year). Total target in aggregate is 240% of base salary, maximum opportunity is 360%, and minimum potential outcome is zero. • The number of FY2026 CDP Deferred Rights for each of the two tranches are determined by dividing the overall CDP cash component outcome by the average share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2026. |
• For the CEO the maximum is 200% of base salary. • For other Executive KMP the maximum is 175% of base salary. • The minimum potential outcome is zero. • The number of 2026 LTIP Performance Rights granted to an Executive KMP is determined by dividing the LTIP value by the average share price and US$/A$ exchange rate over the 12 months up to and including 30 June 2026. |
Performance conditions and assessment |
The CDP scorecard is formally assessed after the end of the annual performance period. The Board approves the CEO’s CDP award outcome and the Committee approves CDP award outcomes for the other Executive KMP. |
Vesting of 2026 LTIP Performance Rights will depend on BHP’s TSR compared to the following benchmarks over the performance period: • 67% for relative TSR performance compared to the MSCI World |
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|
CDP |
LTIP |
|
The Sustainability Committee and the Risk and Audit Committee assess and provide guidance on the outcomes of the scorecard measures that are within their respective areas of responsibility. The Committee and the Board retain discretion to adjust CDP award outcomes where they do not consider them to reflect the performance of the Group or where the manner in which they were achieved was not aligned with the wider shareholder experience. If performance is below the threshold level for any scorecard measure, 0% will be provided in respect of that portion of the CDP scorecard. |
Metals and Mining Index constituents (Sector TSR) • 33% for relative TSR performance compared to the MSCI World Index constituents (World TSR). Details of the Sector TSR and World TSR indices can be found here msci.com/our-solutions/indexes Vesting schedule: No awards will vest if BHP’s TSR performance is below the 50th percentile. Awards vest at 25% if they are equal to the 50th percentile with vesting increasing on a sliding scale between the 50th percentile to the 80th percentile. Where performance reaches or exceeds the weighted 80th percentile (outperformance) awards vest at 100%. TSR performance is assessed using a six month averaging period. If the TSR performance condition is not satisfied, no rights will vest and the award will lapse, with no opportunity for retesting. |
Vesting |
Vesting of both awards of CDP Deferred Rights and LTIP Performance Rights are subject to continued employment with BHP until the vesting date (dependent on the treatment on cessation of employment – see below). CDP Deferred Rights (5 Year) and LTIP Performance Rights are also subject to a holistic review of performance at the end of the five-year vesting period (outlined below). Executive KMP do not have an entitlement to receive dividends prior to vesting. Dividend Equivalent Payments are made on vesting. The Committee retains discretion to settle CDP Deferred Rights and LTIP Performance Rights in cash. |
|
Discretion |
The Committee retains an overarching discretion to vest CDP or LTIP awards, including to lapse any portion or all of CDP or LTIP awards where it considers the vesting outcome does not appropriately reflect Group or individual performance, shareholder expectations or in other circumstances that makes the vesting outcome an inappropriate outcome. The Committee may also determine whether any cash award may be paid, adjusted or not paid or any Deferred Rights or Performance Rights are granted, withheld, vested, forfeited, lapsed or remain subject to dealing restrictions. This mitigates the risk of unintended outcomes. |
|
Holistic review of performance |
Vesting of both CDP Deferred Rights (5 Year) and LTIP Performance Rights are subject to a holistic review of performance • safety and sustainability performance (for example, no material incidents, achievements against operational decarbonisation plans, reduction in GHG emissions against BHP targets) • financial performance (including profitability, cash flow, balance sheet health, returns to shareholders) • broader factors such as corporate governance and the Executive KMP’s conduct. |
|
Cessation of employment |
On cessation of employment for Executive KMP, unless the Board determines otherwise, the following treatment applies: • Resignation or termination for cause – all unvested CDP cash awards, CDP Deferred Rights and LTIP Performance Rights lapse. |
|
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|
CDP |
LTIP |
|
• Death, serious injury, disability or illness – current year CDP cash awards will generally be pro-rated based on performance for that year. All unvested CDP Deferred Rights and LTIP Performance Rights vest. • Other cessation circumstances (‘good leaver’) – current year CDP cash and Deferred Rights (2 Year) awards will generally be pro-rated based on performance for that year and paid wholly in cash. The current year CDP Deferred Rights (5 Year) component and current year LTIP Performance Rights will not be granted. For unvested awards granted in previous financial years, CDP Deferred Rights (2 Year) will generally continue on foot and remain subject to their original terms. A pro-rated portion of unvested CDP Deferred Rights (5 Year) and LTIP Performance Rights will also generally continue on foot, subject to the original terms of the relevant offer, with the remainder lapsing. |
|
Malus and |
In order to prevent an executive obtaining an inappropriate benefit (including where the executive acts fraudulently or dishonestly, is in material breach of their obligations to BHP, or where vesting is not justified or supportable in the circumstances), the Committee may determine some or all awards (including cash, CDP Deferred Rights and LTIP Performance Rights) are lapsed, forfeited or clawed back. The Committee may also suspend or delay vesting of CDP Deferred Rights and LTIP Performance Rights if an investigation is underway, until the outcome of any investigation is known. BHP also has a Malus and Clawback Policy that applies to all equity awards. |
|
Employment terms
The remuneration and employment terms of Executive KMP are formalised in employment contracts that have no fixed term. For the CEO, 12 months’ notice of termination is required by either BHP or the CEO. For other Executive KMP, six months’ notice of termination is required by BHP or the relevant Executive KMP. Executive KMP can be terminated for cause without notice. BHP may require an executive to work through the notice period or make a payment in lieu of notice (including base salary plus pension contributions).
Minimum Shareholding Requirements
BHP has minimum shareholding requirements (MSR) for the CEO and Executive KMP, to promote long-term share ownership and align their interests with those of shareholders. They are expected to build and maintain their MSR over time, primarily through the vesting of equity awards.
The CEO’s MSR is five times annual pre-tax base salary. Other Executive KMP’s MSR are three times annual pre‑tax base salary. For the CEO, a two-year post-employment shareholding requirement applies from the date of cessation of employment, which will be the lower of the CEO’s MSR or the CEO’s actual shareholding at the date of cessation.
No Executive KMP sold or purchased shares during FY2026, other than sales to satisfy tax obligations in connection with an employee equity award. At the end of FY2026, the Executive KMP met their MSR, except for Brandon Craig as he was appointed to the ELT and Executive KMP on 1 March 2024 and is continuing to grow his vested shareholding.
Prohibition on hedging of BHP shares and equity instruments
KMP are prohibited from hedging unvested BHP securities or securities held under the MSR. They are also prohibited from using unvested BHP securities as collateral. Vested, unrestricted securities that are not held under the MSR, may be subject to hedging arrangements or used as collateral, provided prior consent is obtained from BHP.
Remuneration for Executive KMP
FY2026 CDP performance outcomes
The Board and the Committee assessed the Executive KMP’s CDP outcomes considering the Group’s performance in FY2026 and performance against the measures in each Executive KMP CDP scorecard.
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The level of performance for each scorecard measure is determined based on a range of:
Summary of CDP outcomes for the CEO (by measure)
The Board’s and the Committee’s assessment of the CEO’s (Mike Henry) performance against the CDP scorecard measures resulted in a FY2026 CDP outcome of 118 per cent against the target of 100 per cent (or 79 per cent against maximum).
The assessment of the CEO’s performance included consideration of the non-cash impairment charge for the Jansen potash project and the Committee considered that no further deduction was required as this matter had been addressed in the FY2025 CDP outcome.
FY2026 CDP performance outcomes – CEO measures
Mike Henry
Safety and sustainability |
|
CDP scorecard targets |
Performance outcome |
Elimination of significant harm (10%) No significant (actual level 4) health, safety (including fatalities), environment or community (HSEC) or cultural heritage events during the year. High Potential Injury (HPI) Frequency rate (HPI/million hours worked) is equal to or less than 0.09. |
Outcome: Maximum • There were no fatalities or other significant (actual level 4) HSEC or cultural heritage events during FY2026 at our operated assets. • The FY2026 HPIF result for the Group was 0.07, achieving a maximum outcome and reflecting improved safety performance across the business. |
Health and Safety (5%) Completion of FY2026 vehicle interaction control improvement plan deliverables by operating Assets. Operating Assets to undertake FY2026 baseline assessments for material occupational exposures to inform FY2027 exposure reduction plans. |
Outcome: Between target and maximum • All operating Assets delivered their FY2026 vehicle interaction control improvement plans. • FY2026 baseline assessments for material occupational exposures were delivered by all operating Assets except Copper SA. All operating Assets developed FY2027 material occupational exposure reduction plans ready for implementation. |
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Climate and Environment (10%) FY2026 reported operational greenhouse Gas (GHG) emissions are equal to, or below 9.5Mt Co2-e. Continue R9400 Digger trial and deliver proof of concept trial milestones for battery electric haul trucks and locomotives at WAIO. Deliver FY2026 actions in the climate adaptation work program. Deliver 95% of FY2026 water stewardship priorities including water quality and context-based water targets. Develop a strategy for alternative pathways to diesel emissions reductions. Document a Traditional Owner co-design strategy for two projects from the Healthy environment goal roadmap. |
Outcome: Between threshold and target • For FY2026, while asset-level performance varied, Group-level performance was marginally (less than 1%) above the scorecard target. Based on a review of actual production at certain operated assets relative to budget, performance was approximately 1% above the production-adjusted budget, resulting in a Threshold outcome • The operational decarbonisation trials and climate adaptation work program actions were achieved. • The water stewardship priorities, diesel emissions reductions pathways and Healthy environment goal roadmap deliverables were achieved. |
|
The FY2026 S&S outcome for the CEO was 31% against the target of 25% |
||
Financial |
||
ROCE (50%) The target underlying return on capital employed (ROCE) was 14.9%, with a threshold of 12.7% and a maximum of 16.9%. ROCE is an indicator of the Group’s capital efficiency to generate profit. It is calculated as underlying profit after tax (excluding after tax finance costs and exceptional items) divided by average capital employed. When assessing ROCE for remuneration purposes, we adjust the outcome to remove the impact of factors that are largely outside management’s control. These include changes in commodity prices, foreign exchange movements and other material items that differ from the assumptions used when targets were set. This ensures the assessment focuses on management performance rather than external market conditions. Historically, movements in commodity prices have been the most significant adjustment due to their volatility and impact on revenue and ROCE. When setting the ROCE target, the Committee considers the risks and opportunities across BHP’s businesses and the level of performance shareholders would reasonably view as strong. The threshold represents the minimum performance required for any reward, while the maximum reflects stretch performance. The range below target is wider than above target, reflecting greater downside risk due to physical and regulatory asset constraints. In setting the maximum, the Committee also avoids incentives that could encourage short‑term decision‑making beyond BHP’s risk appetite or operational capacity. |
Outcome: Target BHP reported FY2026 ROCE of 26.1%. After adjusting for the factors outlined below, ROCE was 14.9%, which was at target. The adjustments were made to ensure the outcomes appropriately reflected management performance during the year: • The full elimination of commodity prices and exchange rate movements reduced ROCE by 9.6 percentage points. • Adjustments for other items reduced ROCE by 1.6 percentage points primarily to align the CDP ROCE outcome with the same basis on which the FY2026 ROCE target was set. These included reversing the Group’s balance sheet impacts of the Potash impairment and the Antamina Silver Streaming arrangement. Following a review of the FY2026 exceptional items (refer to Financial Statements note 3 ‘Exceptional items’), the Committee determined that no further adjustments were required in calculating the FY2026 ROCE CDP outcome. |
|
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The FY2026 ROCE outcome for the CEO was 50% against the target of 50%. |
|
Group and personal |
|
CDP scorecard targets |
Performance outcome |
People Year-on-year reduction in HPIF. Increase BHP Employee Perception Survey engagement score. |
Outcome: Between target and maximum • FY2026 HPIF reduced by 27% year-on-year to 0.07. • Employee Perception Survey engagement score was slightly below target. |
Performance Achieve an average BHP Operating System (BOS) Operational Excellence Index (OEI) score of 50 across all operations. Delivery of key Samarco outcomes Deliver the Digital Strategy targets Strengthen partnerships with Indigenous suppliers. |
Outcome: Maximum • BOS OEI target achieved, with an average score of 52 across all operations. • Progress made across key Samarco matters. • Digital Strategy delivery above target. • Strong progress made on multi-year contracts with Indigenous suppliers. |
Portfolio Limit capital growth across the major projects portfolio. Minerals Americas and Copper South Australia growth projects to deliver projected copper equivalent production. Review and update BHP’s capital allocation framework. |
Outcome: Maximum • Capital growth across major projects remained well below target. • Good progress made on copper growth pathways across Minerals America and Copper South Australia. • Update BHP’s Capital Allocation Framework complete. |
The FY2026 Group and personal outcome for the CEO was 37% against the target of 25%. |
|
Summary of CDP performance outcomes for other Executive KMP
The FY2026 CDP scorecard performance measures, weightings and overall average outcomes for other Executive KMP are illustrated below. The Committee assessed performance against these measures, each with a target of 100 percent. This resulted in overall FY2026 CDP outcomes of 118 per cent for the CFO (79 per cent against maximum), 115 per cent for the President Americas (77 per cent against maximum), and 115 per cent for the President Australia (77 per cent against maximum).
The Group and personal measures for other Executive KMP reflects their contribution to the delivery of projects and initiatives within the scope of their role and the overall performance of the Group. The FY2026 CDP target weightings and performance measures for the CFO (‘Other Executive KMP without region responsibility’) are similar to those of the CEO outlined above. The target weightings and performance measures for the President Americas and President Australia (‘Other Executive KMP with region responsibility’) vary to reflect the focus required on both Group and regional measures.
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The assessment of the Executive KMPs’ performance included consideration of the non-cash impairment charge for the Jansen potash project and the Committee considered that no further deduction was required as this matter had been addressed in the FY2025 CDP outcome.
2021 LTIP performance outcomes
The five-year performance period for the 2021 LTIP Performance Rights for relevant Executive KMP ended on 30 June 2026. Vesting is subject to satisfaction of the service condition, the achievement of the relative TSR performance conditions, and a holistic review of performance at the end of the five-year vesting period.
Relative TSR is an appropriate performance condition for BHP’s LTIP as it recognises that BHP rewards executives for shareholder returns over a sustained period if those returns outperform both the broader global market and the mining sector. Relative TSR includes returns to BHP shareholders in the form of share price movements along with dividends paid and reinvested in BHP (including cash and in-specie dividends).
LTIP vesting is based on BHP’s relative TSR performance against the Sector Group and World TSR comparator groups, weighted 67 per cent and 33 per cent respectively. No vesting occurs unless BHP’s TSR reaches at least the 50th percentile of these comparator groups, at which point 25 per cent of the LTIP vests. Full vesting occurs where BHP’s TSR is at or above the 80th percentile.
For the 2021 LTIP Performance Rights to vest in full, BHP’s TSR over the five‑year performance period from 1 July 2021 to 30 June 2026 was required to be at or above the 80th percentile of the Sector Group and World TSR comparator groups.
BHP’s relative TSR performance was 80 per cent over the 2021 LTIP performance period. This outcome is:
This level of performance results in 40 per cent vesting for the 2021 LTIP Performance Rights. The value of the CEO’s (Mike Henry) vested 2021 LTIP Performance Rights is detailed in FY2026 remuneration received by the CEO.
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The graph below shows BHP’s performance relative to comparator groups.
Outcome of the holistic review of performance
Vesting of CDP Deferred Rights (5 Year) and LTIP Performance Rights are subject to a holistic review of BHP’s performance on safety, sustainability (including climate change), financial, corporate governance and conduct at the end of the five‑year vesting periods. The rules and terms of the CDP and LTIP awards provide the Committee with an overarching discretion to reduce the number of awards that will vest, notwithstanding that performance conditions have been met. This is applied as a test before vesting is confirmed and is an important risk management tool to ensure vesting is not simply driven by a formula or the passage of time that may give unexpected or unintended remuneration outcomes. The Committee undertakes an assessment and considers its discretion carefully each year ahead of the scheduled vesting of CDP Deferred Rights (5 Year) and LTIP Performance Rights.
In respect of the vesting of the FY2021 CDP Deferred Rights (5 Year) and 2021 LTIP Performance Rights, the Committee undertook a holistic review of performance over the five-year period (from FY2022 to FY2026). The Committee noted BHP’s continued progress in S&S outcomes (noting, however, the two fatalities in FY2023 and one in FY2024 were taken into account in determining CDP outcomes for those years), strong operational performance with improving production and cost performance, and significant returns to shareholders.
In respect of the vesting of FY2021 CDP Deferred Rights (5 year) and the 2021 LTIP Performance Rights, the Committee did not identify any reason to exercise its downwards discretion.
Five-year share price, dividend and earnings history
The following table outlines BHP’s historical financial performance. These elements impact the CDP scorecard outcomes and LTIP performance outcomes. The highest and lowest closing share price during FY2026 were A$65.59 and A$36.57, respectively.
|
|
FY2026 |
|
FY2025 |
|
FY2024 |
|
FY2023 |
|
FY2022 |
Share price at beginning of year (A$) |
|
36.57 |
|
43.30 |
|
45.26 |
|
40.05 |
|
48.22 |
Share price at end of year (A$) |
|
59.40 |
|
36.75 |
|
42.68 |
|
44.99 |
|
41.25 |
Dividends paid (A$) |
|
1.96 |
|
1.90 |
|
2.35 |
|
3.92 |
|
10.181 |
Attributable profit (US$ million, as reported) |
|
9,833 |
|
9,019 |
|
7,897 |
|
12,921 |
|
30,900 |
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CEO transition – remuneration arrangements
As announced on 18 March 2026, the Board appointed Brandon Craig to the position of CEO and Director of BHP Group Limited, effective 1 July 2026. Brandon succeeds Mike Henry, who stepped down on 30 June 2026 after six and a half years in the role.
Incoming CEO – Brandon Craig
The Board confirmed the following remuneration arrangements effective from 1 July 2026:
Other benefits (notional 10% of base salary) may be approved by the Committee from time to time and include tax return preparation, financial planning/advice, partner travel, car parking and health insurance.
Outgoing CEO – Mike Henry
Mike stepped down as CEO on 30 June 2026, and will continue to provide support for the period to 30 November 2026 (his employment end date). He will receive his contractual entitlements and benefits outlined below:
In addition, Mike must comply with a two-year post-employment shareholding requirement from cessation of his employment, which will be the lower of Mike’s MSR or his actual shareholding at the date of his cessation.
FY2026 remuneration received by the CEO (Mike Henry)
The table below is a voluntary, non-statutory and unaudited disclosure of the remuneration received by the CEO during FY2026 and FY2025. It differs from the audited remuneration disclosed in accordance with the Australian Accounting Standards (refer to KMP remuneration table and Financial Statements note 25 ‘Key Management Personnel’) and is intended to provide greater transparency for shareholders by reflecting actual remuneration received.
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The difference between the remuneration disclosure in the table below and the KMP remuneration table primarily relates to CDP and LTIP awards. Under Australian Accounting Standards the statutory remuneration calculation requires the fair value of CDP and LTIP awards to be calculated at the time of grant and amortised over the relevant vesting periods irrespective of actual performance outcomes or amounts ultimately received by the executive.
US$(’000) |
|
|
|
FY2026 |
|
FY2025 |
Mike Henry |
|
Base salary |
|
1,957 |
|
1,881 |
|
Benefits1 |
|
89 |
|
54 |
|
|
Pension2 |
|
196 |
|
188 |
|
|
CDP3 |
|
5,542 |
|
4,965 |
|
|
LTIP4 |
|
2,467 |
|
1,967 |
|
|
Total |
|
10.251 |
|
9,055 |
Remuneration for Non-executive Directors
Competitive fees and benefits are paid to attract and retain appropriately skilled and globally experienced individuals to BHP’s Board.
Shareholders approved the maximum aggregate fee pool for Non‑executive Directors of US$3.8 million per annum. The fee pool was approved by shareholders at the 2008 AGM. Travel allowances and non‑monetary benefits are not included in this limit.
Non-executive Directors do not have any performance-based at‑risk remuneration and do not receive any equity awards as part of their remuneration.
Non-executive Director fees
The Group Chair is paid a single fee for all responsibilities. All other Non-executive Directors are paid a base fee and relevant Committee membership fees. Committee Chairs and the Senior Independent Director are paid a fee to reflect their extra responsibilities.
All fee levels are reviewed annually. Annual reviews consider global benchmarking and advice provided by external advisers, as required. Fee levels reflect the size and complexity of the Group, market benchmarking and the financial performance of the Group. Consideration is also given to salary reviews across the rest of the Group.
Where the payment of pension contributions is required by law, these contributions are deducted from the Director’s overall fee entitlements.
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Table of Contents
Subject to securities dealing constraints, Non-executive Directors have agreed to apply at least 25 per cent of their remuneration (base fees plus relevant Committee membership fees) to the purchase of BHP shares until they achieve an MSR equivalent in value to one year of remuneration. Thereafter they must maintain at least that level of shareholding throughout their tenure. At the end of FY2026, all Non-executive Directors met their MSR other than Mark Vassella who joined the Board on 1 June 2026.
Non-executive Director benefits
Non-executive Directors receive a travel allowance as there is a considerable travel burden required of Non-executive Directors to travel to Board meetings and site visits. Travel allowances are paid on a per trip basis.
Non-executive Directors are reimbursed for the costs of personal tax return preparation if Australia is not their place of residence (including payment of the tax cost associated with the provision of the benefit).
Letters of appointment
The Board has entered into a letter of appointment with each Non‑executive Director that contains the terms on which the Non-executive Directors will be appointed. Non-executive Directors are also indemnified by BHP Group Limited. The Board has adopted a policy under which all Non-executive Directors must seek re-election at the AGM each year. As a result of requiring re‑election each year, Non‑executive Directors do not have a fixed term in their letter of appointment.
A Non-executive Director may resign on reasonable notice. No payments are made to Non-executive Directors on loss of office.
FY2027 fees and allowances
A benchmarking assessment undertaken during FY2026 identified that the base annual fees for the Chair and Non-executive Directors were no longer aligned with market benchmarks for comparable roles at relevant global peer companies. As a result the Board determined that the base annual fees for the Chair and Non-executive Directors will increase by 10 per cent with effect 1 July 2026. The increases are within the current Non-executive Director fee pool, as approved by shareholders in 2008 and reflect the expectations, accountabilities and workloads of each of the Chair and Non-executive Directors. There is no change to the fees for other Committee roles or other allowances in FY2027.
153
Table of Contents
The below table sets out the annualised total remuneration and total fixed fees for FY2026 and FY2027.
Levels of fees and travel allowances |
|
FY2026 |
|
FY2027 |
Group Chair’s base annual fee |
|
962,000 |
|
1,058,200 |
Base annual fee |
|
175,000 |
|
193,000 |
Plus additional fees for: |
|
|
|
|
Senior Independent Director |
|
53,000 |
|
53,000 |
Committee Chair: |
|
|
|
|
Risk and Audit |
|
66,000 |
|
66,000 |
People and Remuneration |
|
45,000 |
|
45,000 |
Sustainability |
|
45,000 |
|
45,000 |
Nomination and Governance |
|
No additional fee |
|
No additional fee |
Committee membership: |
|
|
|
|
Risk and Audit |
|
32,500 |
|
32,500 |
People and Remuneration |
|
27,500 |
|
27,500 |
Sustainability |
|
27,500 |
|
27,500 |
Nomination and Governance |
|
18,000 |
|
18,000 |
Travel allowance:1 |
|
|
|
|
In excess of 3 hours and less than 10 hours |
|
7,000 |
|
7,000 |
10 hours or more |
|
15,000 |
|
15,000 |
|
|
|
|
|
154
Table of Contents
Statutory remuneration and other disclosures
Executive KMP remuneration table
This table details the payments and benefits of Executive KMP for the period they were KMP. It has been prepared in accordance with the applicable Australian Accounting Standards. There were no sign-on bonuses or termination payments during FY2026. There were no transactions or loans between Executive KMP (including their related parties) and the Group or any of our subsidiaries during FY2026.
The amounts included in the table below for CDP Deferred Rights and LTIP Performance Rights represent the amortised accounting fair value of these grants estimated at the grant date and are not amounts actually provided to the Executive KMP. The actual value cannot be determined as it is dependent on the share price on the date the award vests. See the Equity Awards table below for details of the awards to Executive KMP.
US$ |
|
|
|
Short-term |
|
Post- employment benefits |
|
Share-based |
|
|
||||||
Name |
|
Financial |
|
Base salary |
|
CDP cash1 |
|
Other benefits 2 |
|
Pension |
|
CDP Deferred Rights (2 and 5Year) |
|
LTIP Performance Rights |
|
Total reward |
Mike Henry |
|
FY2026 |
|
1,957 |
|
1,847 |
|
89 |
|
196 |
|
3,551 |
|
2,230 |
|
9,870 |
|
|
FY2025 |
|
1,881 |
|
1,655 |
|
54 |
|
188 |
|
2,608 |
|
2,123 |
|
8,509 |
Brandon Craig |
|
FY2026 |
|
948 |
|
871 |
|
85 |
|
95 |
|
995 |
|
868 |
|
3,862 |
|
|
FY2025 |
|
860 |
|
811 |
|
91 |
|
86 |
|
512 |
|
794 |
|
3,154 |
Vandita Pant |
|
FY2026 |
|
1,123 |
|
1,059 |
|
84 |
|
112 |
|
1,659 |
|
904 |
|
4,941 |
|
|
FY2025 |
|
1,060 |
|
933 |
|
67 |
|
106 |
|
1,298 |
|
773 |
|
4,237 |
Geraldine Slattery |
|
FY2026 |
|
1,138 |
|
1,046 |
|
67 |
|
114 |
|
1,719 |
|
1,097 |
|
5,181 |
|
|
FY2025 |
|
1,087 |
|
999 |
|
26 |
|
109 |
|
1,470 |
|
990 |
|
4,681 |
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Table of Contents
Non-executive Directors remuneration table
This table details the payments and benefits of Non-executive Directors for the period they were Non-executive Directors in accordance with the applicable Australian Accounting Standards. No termination benefits were paid to Non-executive Directors. There were no transactions or loans between Non-executive Directors (including their related parties) and the Group or any of our subsidiaries during FY2026.
US$ |
|
|
|
Short-term |
|
Post-employment |
|
|
||
Name |
|
Financial |
|
Base and committee fees |
|
Other benefits1 |
|
Pension |
|
Total reward |
Xiaoqun Clever-Steg |
|
FY2026 |
|
190 |
|
76 |
|
18 |
|
284 |
|
|
FY2025 |
|
195 |
|
76 |
|
13 |
|
284 |
Gary Goldberg |
|
FY2026 |
|
274 |
|
113 |
|
– |
|
387 |
|
|
FY2025 |
|
274 |
|
75 |
|
– |
|
349 |
Michelle Hinchliffe |
|
FY2026 |
|
259 |
|
82 |
|
– |
|
341 |
|
|
FY2025 |
|
259 |
|
75 |
|
– |
|
334 |
Don Lindsay |
|
FY2026 |
|
220 |
|
90 |
|
15 |
|
325 |
|
|
FY2025 |
|
227 |
|
52 |
|
8 |
|
287 |
Ross McEwan |
|
FY2026 |
|
942 |
|
89 |
|
20 |
|
1,051 |
|
|
FY2025 |
|
400 |
|
66 |
|
19 |
|
485 |
Christine O’Reilly |
|
FY2026 |
|
250 |
|
22 |
|
20 |
|
292 |
|
|
FY2025 |
|
266 |
|
51 |
|
5 |
|
322 |
Catherine Tanna |
|
FY2026 |
|
245 |
|
37 |
|
20 |
|
302 |
|
|
FY2025 |
|
246 |
|
36 |
|
19 |
|
301 |
Mark Vassella2 |
|
FY2026 |
|
17 |
|
15 |
|
2 |
|
34 |
Dion Weisler |
|
FY2026 |
|
210 |
|
37 |
|
20 |
|
267 |
|
|
FY2025 |
|
211 |
|
36 |
|
19 |
|
266 |
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Table of Contents
Equity awards
This table details the Executive KMP equity incentives which were granted, vested or lapsed during the reporting period, and were otherwise ‘on foot’. Each CDP Deferred Right or LTIP Performance Right is a right to acquire one ordinary share in BHP Group Limited upon satisfaction of the vesting conditions.
Executive KMP were KMP during the entire reporting period.
Award type1 |
|
Date of grant |
|
At 1 July 2025 |
|
Granted |
|
Vested3 |
|
Lapsed/ forfeited |
|
At 30 June 2026 |
|
Vesting date (estimate) |
|
Market price on grant date2 |
|
Market price on vesting date |
|
Gain on awards (‘000) |
|
DEP on awards (‘000) |
Mike Henry4 |
||||||||||||||||||||||
2025 CDP(5 Year |
|
31 Oct 25 |
|
– |
|
63,669 |
|
– |
|
– |
|
63,669 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2025 CDP(2 Year |
|
31 Oct 25 |
|
– |
|
63,669 |
|
– |
|
– |
|
63,669 |
|
Aug 27 |
|
A$43.45 |
|
|
|
|
|
|
2024 CDP(5 Year |
|
8 Nov 24 |
|
35,042 |
|
|
|
– |
|
– |
|
35,042 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2024 CDP(2 Year) |
|
8 Nov 24 |
|
35,042 |
|
|
|
– |
|
– |
|
35,042 |
|
Aug 26 |
|
A$43.40 |
|
– |
|
– |
|
– |
2023 CDP(2 Year) |
|
8 Nov 23 |
|
43,106 |
|
– |
|
43,106 |
|
– |
|
– |
|
Aug 28 |
|
A$44.70 |
|
– |
|
– |
|
– |
2023 CDP(5 Year) |
|
8 Nov 23 |
|
43,106 |
|
– |
|
– |
|
– |
|
43,106 |
|
22 Aug 25 |
|
A$44.70 |
|
A$42.00 |
|
A$1,810 |
|
A$185 |
2022 CDP(5 Year) |
|
22 Nov 22 |
|
44,335 |
|
– |
|
– |
|
– |
|
44,335 |
|
Aug 27 |
|
A$43.48 |
|
– |
|
– |
|
– |
2021 CDP(5 Year) |
|
23 Nov 21 |
|
55,246 |
|
– |
|
– |
|
– |
|
55,246 |
|
Aug 26 |
|
A$38.05 |
|
– |
|
– |
|
– |
2020 CDP(5 Year) |
|
20 Oct 20 |
|
49,692 |
|
– |
|
49,692 |
|
– |
|
– |
|
22 Aug 25 |
|
A$35.90 |
|
A$42.00 |
|
A$2,087 |
|
A$809 |
2025 LTIP |
|
31 Oct 25 |
|
– |
|
151,581 |
|
– |
|
– |
|
151,581 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2024 LTIP |
|
8 Nov 24 |
|
127,848 |
|
– |
|
– |
|
– |
|
127,848 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2023 LTIP |
|
8 Nov 23 |
|
125,124 |
|
– |
|
– |
|
– |
|
125,124 |
|
Aug 28 |
|
A$44.70 |
|
– |
|
– |
|
– |
2022 LTIP |
|
22 Nov 22 |
|
118,853 |
|
– |
|
– |
|
– |
|
118,853 |
|
Aug 27 |
|
A$43.48 |
|
– |
|
– |
|
– |
2021 LTIP |
|
23 Nov 21 |
|
120,099 |
|
– |
|
– |
|
– |
|
120,099 |
|
Aug 26 |
|
A$38.05 |
|
– |
|
– |
|
– |
2020 |
|
20 Oct 20 |
|
157,138 |
|
– |
|
51,856 |
|
105,282 |
|
- |
|
22 Aug 25 |
|
A$35.90 |
|
A$42.00 |
|
A$2,178 |
|
A$845 |
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Table of Contents
LTIP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brandon Craig |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2025 CDP(5 Year |
|
31 Oct 25 |
|
– |
|
31,215 |
|
– |
|
– |
|
31,215 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2025 CDP(2 Year |
|
31 Oct 25 |
|
– |
|
31,215 |
|
– |
|
– |
|
31,215 |
|
Aug 27 |
|
A$43.45 |
|
|
|
|
|
|
2024 CDP(5 Year |
|
8 Nov 24 |
|
5,835 |
|
|
|
– |
|
– |
|
5,835 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2024 CDP(2 Year) |
|
8 Nov 24 |
|
5,835 |
|
|
|
– |
|
– |
|
5,835 |
|
Aug 26 |
|
A$43.40 |
|
– |
|
– |
|
– |
2025 LTIP |
|
31 Oct 25 |
|
– |
|
61,490 |
|
– |
|
– |
|
61,490 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2024 LTIP |
|
8 Nov 24 |
|
47,276 |
|
|
|
– |
|
– |
|
47,276 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
FY24 MAP |
|
8 Dec 23 |
|
23,600 |
|
– |
|
– |
|
– |
|
23,600 |
|
Aug 28 |
|
A$47.74 |
|
– |
|
– |
|
– |
FY24 MAP |
|
8 Dec 23 |
|
23,600 |
|
– |
|
– |
|
– |
|
23,600 |
|
Aug 27 |
|
A$47.74 |
|
– |
|
– |
|
– |
FY24 MAP |
|
27 Sep 23 |
|
23,600 |
|
– |
|
– |
|
– |
|
23,600 |
|
Aug 26 |
|
A$43.49 |
|
– |
|
– |
|
– |
FY23 MAP |
|
21 Sep 22 |
|
19,938 |
|
– |
|
19,938 |
|
– |
|
- |
|
22 Aug 25 |
|
A$37.96 |
|
A$42.00 |
|
A$837 |
|
- |
Vandita Pant |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2025 CDP (5 Year |
|
31 Oct 25 |
|
– |
|
35,876 |
|
– |
|
– |
|
35,876 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2025 CDP(2 Year |
|
31 Oct 25 |
|
– |
|
35,876 |
|
– |
|
– |
|
35,876 |
|
Aug 27 |
|
A$43.45 |
|
|
|
|
|
|
2024 CDP(5 Year |
|
8 Nov 24 |
|
20,470 |
|
– |
|
– |
|
– |
|
20,470 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2024 CDP(2 Year) |
|
8 Nov 24 |
|
20,470 |
|
– |
|
– |
|
– |
|
20,470 |
|
Aug 26 |
|
A$43.40 |
|
– |
|
– |
|
– |
2023 CDP (5 Year) |
|
8 Nov 23 |
|
22,682 |
|
– |
|
– |
|
– |
|
22,682 |
|
Aug 28 |
|
A$44.70 |
|
– |
|
– |
|
– |
2023 CDP (2 Year) |
|
8 Nov 23 |
|
22,682 |
|
– |
|
22,682 |
|
– |
|
- |
|
22 Aug 25 |
|
A$44.70 |
|
A$42.00 |
|
A$953 |
|
A$97 |
2022 CDP (5 Year) |
|
22 Nov 22 |
|
17,834 |
|
– |
|
– |
|
– |
|
17,834 |
|
Aug 27 |
|
A$43.48 |
|
– |
|
– |
|
– |
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Table of Contents
2021 CDP (5 Year) |
|
23 Nov 21 |
|
20,347 |
|
– |
|
– |
|
– |
|
20,347 |
|
Aug 26 |
|
A$38.05 |
|
– |
|
– |
|
– |
2025 LTIP |
|
31 Oct 25 |
|
– |
|
74,059 |
|
– |
|
– |
|
74,059 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2024 LTIP |
|
8 Nov 24 |
|
60,277 |
|
– |
|
– |
|
– |
|
60,277 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2023 LTIP |
|
8 Nov 23 |
|
45,632 |
|
– |
|
– |
|
– |
|
45,632 |
|
Aug 28 |
|
A$44.70 |
|
– |
|
– |
|
– |
2022 LTIP |
|
22 Nov 22 |
|
43,296 |
|
– |
|
– |
|
– |
|
43,296 |
|
Aug 27 |
|
A$43.48 |
|
– |
|
– |
|
– |
2021 LTIP |
|
23 Nov 21 |
|
34,440 |
|
– |
|
– |
|
– |
|
34,440 |
|
Aug 26 |
|
A$38.05 |
|
– |
|
– |
|
– |
2020 MAP |
|
20 Oct 20 |
|
27,731 |
|
– |
|
27,731 |
|
– |
|
- |
|
22 Aug 25 |
|
A$35.90 |
|
A$42.00 |
|
A$1,165 |
|
A$452 |
Geraldine Slattery |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
2025 CDP(5 Year) |
|
31 Oct 25 |
|
– |
|
38,453 |
|
– |
|
– |
|
38,453 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2025 CDP(2 Year) |
|
31 Oct 25 |
|
– |
|
38,453 |
|
– |
|
– |
|
38,453 |
|
Aug 27 |
|
A$43.45 |
|
|
|
|
|
|
2024 CDP (5 Year |
|
8 Nov 24 |
|
19,981 |
|
– |
|
– |
|
– |
|
19,981 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2024 CDP(2 Year) |
|
8 Nov 24 |
|
19,981 |
|
– |
|
– |
|
– |
|
19,981 |
|
Aug 26 |
|
A$43.40 |
|
– |
|
– |
|
– |
2023 CDP (5 Year |
|
8 Nov 23 |
|
22,870 |
|
– |
|
– |
|
– |
|
22,870 |
|
Aug 28 |
|
A$44.70 |
|
– |
|
– |
|
– |
2023 CDP(2 Year) |
|
8 Nov 23 |
|
22,870 |
|
– |
|
22,870 |
|
– |
|
- |
|
Aug 25 |
|
A$44.70 |
|
A$42.00 |
|
A$961 |
|
$98 |
2022 CDP (5 Year |
|
22 Nov 22 |
|
23,784 |
|
– |
|
– |
|
– |
|
23,784 |
|
Aug 27 |
|
A$43.48 |
|
– |
|
– |
|
– |
2021 CDP (5 Year |
|
23 Nov 21 |
|
28,258 |
|
– |
|
– |
|
– |
|
28,258 |
|
Aug 26 |
|
A$38.05 |
|
– |
|
– |
|
– |
2020 CDP (5 Year |
|
20 Oct 20 |
|
28,562 |
|
– |
|
28,562 |
|
– |
|
- |
|
22 Aug 25 |
|
A$35.90 |
|
A$42.00 |
|
A$1,200 |
|
A$465 |
2025 LTIP |
|
31 Oct 25 |
|
– |
|
77,089 |
|
– |
|
– |
|
77,089 |
|
Aug 30 |
|
A$43.45 |
|
|
|
|
|
|
2024 LTIP |
|
8 Nov 24 |
|
65,004 |
|
- |
|
– |
|
– |
|
65,004 |
|
Aug 29 |
|
A$43.40 |
|
– |
|
– |
|
– |
2023 |
|
8 Nov 23 |
|
61,359 |
|
– |
|
– |
|
– |
|
61,359 |
|
Aug 28 |
|
A$44.70 |
|
– |
|
– |
|
– |
159
Table of Contents
LTIP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 LTIP |
|
22 Nov 22 |
|
58,237 |
|
– |
|
– |
|
– |
|
58,237 |
|
Aug 27 |
|
A$43.48 |
|
– |
|
– |
|
– |
2021 LTIP |
|
23 Nov 21 |
|
52,543 |
|
– |
|
– |
|
– |
|
52,543 |
|
Aug 26 |
|
A$38.05 |
|
– |
|
– |
|
– |
2020 LTIP |
|
20 Oct 20 |
|
60,660 |
|
– |
|
20,018 |
|
40,642 |
|
- |
|
22 Aug 25 |
|
A$35.90 |
|
A$42.00 |
|
A$841 |
|
A$326 |
Additional information regarding the prior year incentive awards that are ‘on foot’ can be found in the Remuneration Report of the relevant year in which the grant was made. There has been no alteration to the terms and conditions of any grants since the grant date. Related parties of Executive KMP do not hold interests under BHP’s employee equity plans.
BHP’s shareholders approved the grant of FY2025 CDP Deferred Rights and 2025 LTIP Performance Rights to the CEO in accordance with ASX Listing Rule 10.14 at the 2025 AGM.
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Table of Contents
Ordinary shareholdings and transactions
This table shows movements during the reporting period in the number of fully paid ordinary shares of BHP Group Limited held directly, indirectly or beneficially, by each KMP, including their related parties. No shares are held nominally by any KMP or their related parties. These are ordinary shares held without performance conditions or restrictions and are included in MSR calculations for each individual.
For KMP that commenced as KMP during the reporting period, the ‘At 1 July 2025’ value reflects the shares held at the date they commenced as KMP. For KMP that ceased to be KMP during the reporting period, the ‘At 30 June 2026’ value reflects the shares held at the date they ceased being KMP.
|
|
At 1 July 2025 |
|
Purchased |
|
Received as remuneration |
|
Sold |
|
At 30 June 2026 |
Executive KMP |
|
|
|
|
|
|
|
|
|
|
Mike Henry |
|
478,035 |
|
– |
|
144,654 |
|
66,295 |
|
556,394 |
Brandon Craig |
|
36,585 |
|
– |
|
19,938 |
|
8,684 |
|
47,839 |
Vandita Pant |
|
211,935 |
|
– |
|
50,413 |
|
11,413 |
|
250,935 |
Geraldine Slattery1 |
|
238,028 |
|
– |
|
71,450 |
|
32,479 |
|
276,999 |
Non-executive Directors |
|
|
|
|
|
|
|
|
|
|
Xiaoqun Clever-Steg |
|
10,000 |
|
– |
|
– |
|
– |
|
10,000 |
Gary Goldberg2 |
|
24,000 |
|
– |
|
– |
|
– |
|
24,000 |
Michelle Hinchliffe |
|
12,330 |
|
– |
|
– |
|
– |
|
12,330 |
Don Lindsay |
|
10,000 |
|
– |
|
– |
|
– |
|
10,000 |
Ross McEwan |
|
45,000 |
|
– |
|
– |
|
– |
|
45,000 |
Christine O’Reilly |
|
10,620 |
|
– |
|
– |
|
– |
|
10,620 |
Catherine Tanna |
|
10,400 |
|
– |
|
– |
|
– |
|
10,400 |
Mark Vassella3 |
|
4,825 |
|
– |
|
– |
|
– |
|
4,825 |
Dion Weisler |
|
11,494 |
|
– |
|
– |
|
– |
|
11,494 |
161
Table of Contents
This Remuneration Report was approved by the Board on 18 August 2026 and signed on its behalf by:
/s/ Christine O'Reilly
Christine O’Reilly
Chair, People and Remuneration Committee
18 August 2026
Abbreviation |
|
Item |
|
Abbreviation |
|
Item |
AGM |
|
Annual General Meeting |
|
KMP |
|
Key Management Personnel |
CDP |
|
Cash and Deferred Plan |
|
LTIP |
|
Long Term Incentive Plan |
CEO |
|
Chief Executive Officer |
|
MAP |
|
Management Award Plan |
DEP |
|
Dividend equivalent payment |
|
MSR |
|
Minimum shareholding requirement |
ELT |
|
Executive Leadership Team |
|
ROCE |
|
Return on capital employed |
GHG |
|
Greenhouse gas |
|
S&S |
|
Safety and sustainability |
HSEC |
|
Health, safety, environment and community |
|
TSR |
|
Total shareholder return |
IFRS |
|
International Financial Reporting Standards |
|
|
|
|
162
Table of Contents
Financial Statements
Refer to the pages beginning on page F-1 in this Annual Report
163
Table of Contents
Additional information
Contents
1 Information on mining operations
2 Financial information summary
3 Financial information by commodity
4 Production
5 Major projects
6 Mineral resources and mineral reserves
7 People – performance data
8 Legal proceedings
9 Shareholder information
9.1 History and development
9.2 Markets
9.3 Organisational structure
9.4 Constitution
9.5 Share ownership
9.6 Dividends
9.7 American Depositary Receipts fees and charges
9.8 Supplemental cybersecurity disclosures for US reporting
9.9 Government regulations
10 Glossary
164
Table of Contents
Minerals Australia
Iron ore mining operations
The following table contains additional details of our iron ore mining operations. This table should be read in conjunction with OFR 4.2 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
|
|
WAIO |
|
Pilbara region, Western Australia Newman West (Mt Whaleback, Orebodies 29, 30, 31 and 35) Newman East (Orebodies 24, 25 and 32) |
Mt Newman joint venture |
||
Means of access |
|
Private road Ore transported by Mt Newman JV-owned rail to Port Hedland (427 km) |
Type and amount |
|
BHP Minerals 85% Mitsui-ITOCHU Iron 10% ITOCHU Minerals and Energy of Australia 5% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mineral lease granted and held under the Iron Ore (Mount Newman) Agreement Act 1964 expires in 2030 with right to successive renewals of 21 years each ML244SA – approximately 78,934 hectares |
History and stage of property |
|
Production stage Production began at Mt Whaleback in 1969 Production from Orebodies 24, 25, 29, 30, 31, 32 and 35 complements production from Mt Whaleback Production from Orebodies 31 and 32 started in 2015 and 2017 respectively Mining at Orebody 18 ceased in 2020 after depletion |
Mine type & mineralisation style |
|
Open-cut Bedded ore types classified as per host Archaean or Proterozoic iron formation, which are Brockman and Marra Mamba; also present is iron-rich detrital material |
Power source |
|
Power for all mine operations in the Central and Eastern Pilbara is supplied by BHP’s natural gas-fired Yarnima power station Power consumed in port operations is supplied via a contract with APA Group |
Processing plants and other available facilities |
|
Newman Hub: primary crusher (includes those at Orebodies 18 and 24), ore handling plant, heavy media beneficiation plant, stockyard blending facility, single cell rotary car dumper, train load out (nominal capacity 75 Mtpa) Orebody 25: Ore processing plant (nominal capacity 12 Mtpa) ceased operation mid-FY2022 |
Key permit conditions |
|
State Agreement contains conditions set by the Western Australian Government, including requirements for future development proposals; environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community plans/initiatives/investment requirements; payment of rent, taxes and government royalties Tenements granted by the Western Australian Government under the Mining Act 1978 (WA) Key permit conditions include resource reporting, environmental compliance and reporting, rehabilitation considerations and offset payments and payment of lease rentals and royalties Registered Indigenous Land Use Agreements with conditions, including appropriate native title compensation and opportunity sharing; enshrine heritage protections and land access rights; and guarantee certain heritage, environment and consultation processes |
165
Table of Contents
Mine & location |
|
|
WAIO |
|
Pilbara region, Western Australia |
Yandi joint venture |
||
Means of access |
|
Private road Ore transported by Mt Newman JV-owned rail to Port Hedland (316 km) Yandi JV’s railway spur links Yandi hub to Mt Newman JV main line |
Type and amount of ownership |
|
BHP Minerals 85% ITOCHU Minerals and Energy of Australia 8% Mitsui Iron Ore Corporation 7% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining lease granted pursuant to the Iron Ore (Marillana Creek) Agreement Act 1991 expires in 2033 with 1 renewal right to a further 21 years to 2054 M270SA – approximately 30,344 hectares |
History and stage |
|
Production stage Production began at the Yandi mine in 1992 Capacity of Yandi hub expanded between 1994 and 2013 Yandi commenced production ramp down activity in FY2022 |
Mine type & mineralisation style |
|
Open-cut Channel iron deposits are Cainozoic fluvial sediments |
Power source |
|
Power for all mine operations in the Central and Eastern Pilbara is supplied by BHP’s natural gas-fired Yarnima power station Power consumed in port operations is supplied via a contract with APA Group |
Processing plants and other available facilities |
|
2 primary crushers, 1 ore handling plant, stockyard blending facility and 1 train load out (nominal capacity 20 Mtpa) Decommissioning of additional facilities, including 2 ore handling plants, 2 primary crushers and 1 train load out, is ongoing as part of planned ramp down activities |
Key permit conditions |
|
State Agreement contains conditions set by the Western Australian Government, including requirements for future development proposals; environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community plans/initiatives/investment requirements; payment of rent, taxes and government royalties Tenements granted by the Western Australian Government under the WA Mining Act Key permit conditions include resource reporting, environmental compliance and reporting, rehabilitation considerations and offset payments and payment of lease rentals and royalties Registered Indigenous Land Use Agreements with conditions, including appropriate native title compensation and opportunity sharing; enshrine heritage protections and land access rights; and guarantee certain heritage, environment and consultation processes |
Mine & location |
|
|
WAIO |
|
Pilbara region, Western Australia Jimblebar Bill’s Hill, Eastern Syncline and Mt Helen (jointly called Western Ridge deposits) Ministers North |
Jimblebar operation* |
||
Means of access |
|
Private road Jimblebar ore is transported via overland conveyor (12.4 km) and by Mt Newman JV-owned rail to Port Hedland (428 km) The Western Ridge deposits are located close to Newman Operations and all production will be trucked and/or transported via overland conveyor The Ministers North deposit is located close to Yandi operations, and all production will be trucked to Yandi |
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Table of Contents
Type and amount of ownership |
|
BHP Minerals 85% ITOCHU Minerals and Energy of Australia 8% Mitsui & Co. Iron Ore Exploration & Mining 7% *Jimblebar is an ‘incorporated’ venture with the above companies holding A Class Shares with rights to certain parts of mining lease 266SA held by BHP Iron Ore (Jimblebar) Pty Ltd (BHPIOJ) BHP Minerals holds 100% of the B Class Shares, which has rights to all other Jimblebar assets |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining lease granted pursuant to the Iron Ore (McCamey’s Monster) Agreement Authorisation Act 1972 expires in 2030 with rights to successive renewals of 21 years each M266SA – approximately 51,756 hectares |
History and stage of property |
|
Production stage Production began in March 1989 From 2004, production was transferred to Wheelarra JV as part of the Wheelarra sublease agreement This sublease agreement expired in March 2018 Ore was first produced from the newly commissioned Jimblebar Hub in late 2013 Jimblebar sells ore to the Newman JV proximate to the Jimblebar Hub Production at Western Ridge commenced in FY2022 Ministers North feasibility study completed and the project has moved into execution, with production due to commence in FY2029 |
Mine type & mineralisation style |
|
Open-cut Bedded ore types classified as per host Archaean or Proterozoic banded iron formation, which are Brockman and Marra Mamba; also present is iron-rich detrital material |
Power source |
|
Power for all mine operations in the Central and Eastern Pilbara is supplied by BHP’s natural gas-fired Yarnima power station Power consumed in port operations is supplied via a contract with APA Group |
Processing plants and other available facilities |
|
3 primary crushers, ore handling plant, train load out, stockyard blending facility and supporting mining hub infrastructure (nominal capacity 71 Mtpa) Production from the Western Ridge deposits will be processed through a new crusher (under construction) and existing processing facility for Newman operations Ore from Ministers North will be transported using haul trucks for further processing at the existing facility for Yandi operations |
Key permit conditions |
|
State Agreement contains conditions set by the Western Australian Government, including requirements for future development proposals; environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community plans/initiatives/investment requirements; payment of rent, taxes and government royalties Tenements granted by the Western Australian Government under the WA Mining Act Key permit conditions include resource reporting, environmental compliance and reporting, rehabilitation considerations and offset payments and payment of lease rentals and royalties Registered Indigenous Land Use Agreement with conditions, including appropriate native title compensation and opportunity sharing; enshrine heritage protections and land access rights; and guarantee certain heritage, environment and consultation processes |
Mine & location |
|
|
WAIO |
|
Pilbara region, Western Australia Yarrie Nimingarra Mining Area C South Flank |
Mt Goldsworthy joint venture |
||
Means of access |
|
Private road Yarrie and Nimingarra iron ore transported by Mt Goldsworthy JV-owned rail to Port Hedland (218 km) Mining Area C and South Flank iron ore transported by Mt Newman JV-owned rail to Port Hedland (360 km) South Flank iron ore transported by overland conveyors (8–16 km) to the Mining Area C processing hub Mt Goldsworthy JV railway spur links Mining Area C and South Flank to Yandi JV’s railway spur |
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Table of Contents
Type and amount of ownership |
|
BHP Minerals 85% Mitsui Iron Ore Corporation 7% ITOCHU Minerals and Energy of Australia 8% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
1 mineral lease and 1 mining lease both granted pursuant to the Iron Ore (Goldsworthy – Nimingarra) Agreement Act 1972, expire in 2035, with rights to successive renewals of 21 years each. ML251SA and M263SA – approximately 15,623 hectares A number of smaller mining leases granted under the WA Mining Act expire in 2026 with rights to successive renewals of 21 years. 5 leases – approximately 2,999 hectares 3 mineral leases granted under the Iron Ore (Mount Goldsworthy) Agreement Act 1964, which expire 2028, with rights to successive renewals of 21 years each ML235SA, ML249SA and ML281SA – approximately 91,124 hectares |
History and stage of property |
|
Production stage Operations commenced at Mt Goldsworthy in 1966 and at Shay Gap in 1973 Original Goldsworthy mine closed in 1982 Associated Shay Gap mine closed in 1993 Mining at Nimingarra mine ceased in 2007, then continued from adjacent Yarrie area Production commenced at Mining Area C mine in 2003 Yarrie mine operations were suspended in February 2014 First ore at South Flank commenced in May 2021 |
Mine type & mineralisation style |
|
Mining Area C, South Flank, Yarrie and Nimingarra are open-cut Bedded ore types classified as per host Archaean or Proterozoic iron formation, which are Brockman, Marra Mamba and Nimingarra; also present is iron-rich detrital material |
Power source |
|
Power for Yarrie and Shay Gap is supplied by their own small diesel generating stations Power for all remaining mine operations in the Central and Eastern Pilbara is supplied by BHP’s natural gas-fired Yarnima power station Power consumed in port operations is supplied via a contract with APA Group |
Processing plants and other available facilities |
|
Mining Area C: 2 primary crushers, 2 ore handling plants, stockyard blending facility and train load out (nominal capacity 64 Mtpa) South Flank: 2 primary crushers, 1 ore handling plant, stockyard and blending facility and train load out (nominal capacity 80 Mtpa) |
Key permit conditions |
|
State Agreements contain conditions set by the Western Australian Government, including requirements for future development proposals; environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community plans/initiatives/investment requirements; payment of rent, taxes and government royalties Tenements granted by the Western Australian Government under the WA Mining Act Key permit conditions include resource reporting, environmental compliance and reporting, rehabilitation considerations and offset payments and payment of lease rentals and royalties Registered Indigenous Land Use Agreements with conditions, including appropriate native title compensation and opportunity sharing; enshrine heritage protections and land access rights; and guarantee certain heritage, environment and consultation processes |
Mine & location |
|
|
WAIO |
|
Pilbara region, Western Australia |
POSMAC joint venture |
||
Means of access |
|
Private road POSMAC JV sells ore to Mt Goldsworthy JV at Mining Area C Ore is transported via Mt Goldsworthy JV-owned rail and Mt Newman JV-owned rail to Port Hedland Mt Goldsworthy JV railway spur links Mining Area C to Yandi JV’s railway spur |
Type and amount of ownership |
|
BHP Minerals 65% ITOCHU Minerals and Energy of Australia 8% Mitsui Iron Ore Corporation 7% POS-Ore 20% |
Operator |
|
BHP |
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Table of Contents
Title, leases or options and acreage involved |
|
Sublease over part of Mt Goldsworthy Mining Area C mineral lease that expires on the earlier of termination of the mineral lease or the end of the POSMAC JV ML281SA – approximately 56,335 hectares |
History and stage of property |
|
Production stage Production commenced in October 2003 and ceased in January 2026. POSMAC JV sells all ore to Mt Goldsworthy JV at Mining Area C |
Mine type & mineralisation style |
|
Open-cut Bedded ore types classified as per host Archaean or Proterozoic iron formation, which is Marra Mamba |
Power source |
|
Power for all mine operations in the Central and Eastern Pilbara is supplied by BHP’s natural gas-fired Yarnima power station Power consumed in port operations is supplied via a contract with APA Group |
Processing plants and other available facilities |
|
POSMAC sells all ore to Mt Goldsworthy JV, which is then processed at Mining Area C |
Key permit conditions |
|
Key permit conditions of POSMAC joint venture are captured within the Mount Goldsworthy joint venture key permit conditions outlined above |
Coal mining operations
The following table includes details about our mining operations as at 30 June 2026.
This table should be read in conjunction with OFR 4.3 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
|
|
BHP Mitsubishi Alliance (BMA) |
|
All mining operations are in Bowen Basin, Queensland Australia Goonyella Riverside Broadmeadow Caval Ridge Peak Downs Saraji and Saraji South mines |
Central Queensland Coal Associates joint venture |
||
Means of access |
|
Public road Coal transported by rail to Hay Point Coal Terminal Distances between the mines and port are between 191 km and 212 km |
Type and amount of ownership |
|
BHP 50% Mitsubishi Development 50% |
Operator |
|
BMA |
Title, leases or options and acreage involved |
|
Mining leases, including undeveloped tenements, have expiry dates ranging up to 2045, renewable for further periods as Queensland Government legislation allows Approximately 79,752 hectares Mining is permitted to continue under the legislation during the renewal application period All required renewal applications were lodged and pending a decision from the Minister |
History and stage of property |
|
Production stage Production commenced at: Goonyella Riverside in 1971 (Goonyella in 1971, Riverside in 1989) Peak Downs in 1972 Saraji in 1974 Saraji South (Norwich Park) in 1979 Broadmeadow (longwall operations) in 2005 Caval Ridge in 2014 |
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Table of Contents
|
|
Production at Saraji South (formerly Norwich Park) ceased in May 2012. Since October 2022, limited product has been sourced from Saraji South for processing at Saraji. In December 2025, Saraji South mine was placed into a period of care and maintenance |
Mine type & mineralisation style |
|
All open-cut except Broadmeadow (longwall underground) Bituminous coal is mined from the Permian Moranbah Coal measures Products range from premium-quality, low-volatile, high‑vitrinite hard coking coal to medium-volatile hard coking coal |
Power source |
|
Queensland electricity grid connection is under long-term contracts and energy purchased under Renewable Power arrangements and retail agreements |
Processing plants and other available facilities |
|
On-site beneficiation processing facilities Combined nominal capacity of 81 Mtpa ROM at 4% moisture basis |
Key permit conditions |
|
Key permit conditions are contained in the various legislation set by the Queensland Government and include conditions relating to carrying out works in accordance with the environmental authority and approved development plans, payment of rents, reporting and payment of royalties. Mining leases granted under the Central Queensland Coal Associates Agreement Act 1968 place an extraction cap of 1,823 Mt |
Mine & location |
|
|
New South Wales |
|
Approximately 126 km northwest of Newcastle, New South Wales, Australia |
Mt Arthur Coal |
|
|
Means of access |
|
Public road Coal transported by third-party rail |
Type and amount |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
New South Wales Energy Coal holds 9 mining leases, 2 subleases and 1 exploration licence Total mining leases approximately 8,346 hectares
|
History and stage of property |
|
Production stage Production commenced in 2002 (previous operations dating to the early 1960s) Approval to expand mining granted in 2010 with an additional area also granted by an approval modification in 2014 In FY2022, BHP announced our decision to transition Mt Arthur Coal to closure in 2030, based on the mine reaching the end of its economic life. In FY2026, BHP received the final approval from the Federal Government following the approval from the NSW Government to extend mining activities at Mt Arthur Coal for an additional four years, from July 2026 to June 2030 |
Mine type & mineralisation style |
|
Open-cut Produces a medium rank bituminous thermal coal |
Power source |
|
New South Wales electricity grid connection under a deemed long-term contract and energy purchased via a retail agreement |
Processing plants and other available facilities |
|
Beneficiation facilities: coal handling, preparation, washing plants Nominal capacity in excess of 23 Mtpa |
Key permit conditions |
|
The approval to extend mining activities until June 2030 contains key conditions on coal extraction, transport limits and rehabilitation requirements under the Mining Act 1992 |
170
Table of Contents
Nickel mining operations
The following table contains additional details of our mining operations. This table should be read in conjunction with OFR 4.4 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
|
|
Nickel West |
|
450 km north of Kalgoorlie, Western Australia Mt Keith mine Mt Keith satellite mine (Yakabindie) |
Mt Keith mine and concentrator |
||
Means of access |
|
Private road Nickel concentrate transported by road to Leinster for drying and on-shipping |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining leases granted by Western Australian Government Key leases expire between 2029 and 2037 First renewal of 21 years is as a right. Further renewals at Minister’s discretion Mt Keith mining leases approximately 9,240 hectares Mt Keith satellite mining leases approximately 3,835 hectares |
History and stage of property |
|
Production stage Commissioned in 1995 by WMC Acquired in 2005 as part of WMC acquisition Mt Keith satellite mine contains 2 open-pit mines: Nickel West operations transitioned to temporary suspension in the period ending 31 December 2024 |
Mine type & mineralisation style |
|
Open-cut Disseminated textured magmatic nickel-sulphide mineralisation associated with a metamorphosed ultramafic intrusion |
Power source |
|
On-site third-party gas-fired turbines and renewable solar generation with backup from diesel Contracts expire in December 2038 Natural gas sourced and transported under separate long-term contracts |
Processing plants and other available facilities |
|
Concentration plant with a nominal capacity of 11 Mtpa of ore |
Key permit conditions |
|
Use of the land for the purposes set out by the Western Australian Government under granted mining tenements and broadly comprise of submission of detailed mining proposals; payment of royalties, annual rent to the State Government; rates to relevant local governments; compliance with environmental regulations and mine closure requirements and other reporting obligations. Existing mining operations are also subject to an Indigenous Land Use Agreement, which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; heritage and cultural protections |
Mine & location |
|
|
Nickel West |
|
375 km north of Kalgoorlie, Western Australia Venus sub-level caving operation B11 block caving operation Camelot open-pit mine Rocky’s Reward open-pit mine |
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Table of Contents
Leinster mine complex and concentrator |
||
Means of access |
|
Public road Nickel concentrate shipped by road and rail to Kalgoorlie Nickel Smelter |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mineral lease granted in accordance with State Agreement ratified by the Nickel (Agnew) Agreement Act 1974 Mining leases granted by Western Australian Government Key leases expire between 2029 and 2046 Renewals of principal mineral lease in accordance with State Agreement ratified by the Nickel (Agnew) Agreement Act 1974 Mining leases first renewal of 21 years is a right. Further renewals at Minister’s discretion Leinster mining leases approximately 6,325 hectares Camelot mining leases approximately 2,353 hectares |
History and stage of property |
|
Production stage Production commenced in 1979 Acquired in 2005 as part of WMC acquisition Leinster underground ceased operations in 2013 and recommenced operations in 2016 with Venus sub-level cave now in operation and B11 block cave developing its undercut and draw points Rocky’s Reward open-pit mine ceased mining in 2021 Nickel West operations transitioned to temporary suspension in the period ending 31 December 2024 |
Mine type & mineralisation style |
|
Open-cut and underground Steeply dipping disseminated and massive textured nickel-sulphide mineralisation associated with metamorphosed ultramafic lava flows and intrusions |
Power source |
|
On-site third-party gas-fired turbines and renewable solar generation with back up from diesel engine generation Contracts expire in December 2038 Natural gas sourced and transported under separate long-term contracts |
Processing plants and other available facilities |
|
Concentration plant with a nominal capacity of |
Key permit conditions |
|
Use of the land for the purposes set out by the Western Australian Government under the Nickel (Agnew) Agreement Act 1974 and granted mining tenements and broadly comprise of submission of detailed mining proposals; payment of royalties, annual rent to the State Government; rates to relevant local governments; compliance with environmental regulations and mine closure requirements and other reporting obligations. Existing mining operations are also subject to an Indigenous Land Use Agreement, which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; heritage and cultural protections |
Mine & location |
|
|
Nickel West |
|
450 km north of Kalgoorlie, Western Australia |
Cliffs mine |
|
|
Means of access |
|
Private road Nickel ore transported by road to Leinster or Mt Keith for further processing |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
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Table of Contents
Title, leases or options and acreage involved |
|
Mining leases granted by Western Australian Government Key leases expire between 2026 and 2046 First renewal of 21 years is as of right. Further renewals at Minister’s discretion Mining leases approximately 2,675 hectares |
History and stage of property |
|
Production stage Production commenced in 2008 Acquired in 2005 as part of WMC acquisition Nickel West operations transitioned to temporary suspension in the period ending 31 December 2024 |
Mine type & mineralisation style |
|
Underground Steeply dipping massive textured nickel-sulphide mineralisation associated with metamorphosed ultramafic lava flows |
Power source |
|
Supplied from Mt Keith |
Processing plants and other available facilities |
|
Mine site |
Key permit conditions |
|
Use of the land for the purposes set out by the Western Australian Government under granted mining tenements and broadly comprise of submission of detailed mining proposals; payment of royalties, annual rent to the State Government; rates to relevant local government; compliance with environmental regulations and mine closure requirements and other reporting obligations. Existing mining operations are also subject to an Indigenous Land Use Agreement, which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; heritage and cultural protections |
Mine & location |
|
|
West Musgrave Project |
|
Musgrave Province, Western Australia |
Means of access |
|
Public road |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
The Project contemplates 2 copper and nickel deposits (Babel pit and Nebo pit) within the West Musgrave Ranges of Western Australia Mining lease granted by Western Australian Government Key mining lease expires 2043 First renewal of 21 years is as a right. Further renewals at Minister’s discretion Development Envelope of 20,852 hectares |
History and stage of property |
|
Scoping studies completed in 2017 Pre-feasibility study completed by OZ Minerals and Cassini Resources Ltd in 2020 Acquired by OZ Minerals in October 2020 Final investment decision in September 2022 Acquired in 2023 as part of OZ Minerals acquisition West Musgrave Project transitioned to temporary suspension in the period ending 31 December 2024 |
Mine type & mineralisation |
|
Open-pit (still in project stage) Magmatic nickel and copper sulphide |
Power source |
|
Currently supplied by diesel generation during temporary suspension |
Processing plants and other available facilities |
|
Crushing, vertical roller mill, flotation producing separate nickel and copper concentrates (still in project stage) |
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Key permit |
|
Use of the land for the purposes set out by the Western Australian Government under granted mining tenements and broadly comprise of submission of detailed mining proposals; payment of royalties, annual rent to the State Government; rates to relevant local government; compliance with environmental regulations and mine closure requirements and other reporting obligations. Existing mining operations are also subject to a Mining Agreement with the Native Title holders which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; heritage and cultural protections |
Nickel smelters, refineries and processing plants
Smelter, refinery or processing plant |
||
Nickel West |
|
56 km south of Kalgoorlie, Western Australia |
Kambalda nickel concentrator |
||
Ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options |
|
Mineral leases granted by Western Australian Government Key leases expire in 2028 with no right of renewal Mining leases approximately 242 hectares |
Key permit conditions |
|
Use of the land for the purposes set out by the Western Australian Government under granted mining tenements and broadly comprise of submission of detailed mining proposals; payment of royalties, annual rent to the State Government; rates to relevant local government; compliance with environmental regulations and mine closure requirements and other reporting obligations |
Product |
|
Concentrate containing approximately 13% nickel |
Power source |
|
On-site third-party gas-fired turbines supplemented by access to grid power Contracts expire in December 2038 Natural gas sourced and transported under separate long-term contracts |
Nominal production capacity |
|
1.6 Mtpa ore Nickel sourced through ore tolling and concentrate purchase arrangements with third parties in Kambalda and outer regions Nickel West operations transitioned to temporary suspension in the period ending 31 December 2024 |
Smelter, refinery or processing plant |
||
Nickel West |
|
Kalgoorlie, Western Australia |
Kalgoorlie nickel smelter |
||
Ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options |
|
Freehold title over the property |
Key permit conditions |
|
Payment of rates to relevant local government, compliance with environmental regulations and mine closure requirements and other reporting obligations |
Product |
|
Matte containing approximately 65% nickel |
Power source |
|
On-site third-party gas-fired turbines supplemented by access to grid power Contracts expire in December 2038 Natural gas sourced and transported under separate long-term contracts |
Nominal production capacity |
|
110 ktpa nickel metal in matte Nickel West operations transitioned to temporary suspension in the period ending 31 December 2024 |
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Smelter, refinery or processing plant |
||
Nickel West |
|
30 km south of Perth, Western Australia |
Kwinana nickel refinery |
||
Ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options |
|
Freehold title over the property |
Key permit conditions |
|
Payment of rates to relevant local government, compliance with environmental regulations and mine closure requirements and other reporting obligations |
Product |
|
London Metal Exchange grade nickel briquettes, nickel powder Also intermediate products, including copper sulphide, cobalt-nickel-sulphide, ammonium sulphate Nickel sulphate containing approximately 22% nickel |
Power source |
|
Power is sourced from the local grid, which is supplied under a retail contract, supplemented by a Power Purchase Agreement with Merredin Solar Farm for 50% of its output |
Nominal production capacity |
|
82.5 ktpa nickel metal in powder, briquettes and nickel sulphate (with approval to increase up to 90 ktpa) 99 kt–100 kt nickel sulphate (approximately Nickel West operations transitioned to temporary suspension in the period ending 31 December 2024 |
Copper South Australia
Copper mining operations
The following table contains additional details of our mining operations. This table should be read in conjunction with OFR 4.1 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
||
Olympic Dam |
|
560 km northwest of Adelaide, South Australia |
Means of access |
|
Public road Final product transported by road and rail
|
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Special Mining Lease (SML1) granted by South Australian Government (pursuant to the Roxby Downs (Indenture Ratification) Act 1982 (Indenture Act) expires in 2036 Approximately 17,788 hectares Right of extension for 50 years (subject to remaining mine life) |
History and stage of property |
|
Production stage Acquired in 2005 as part of Western Mining Corporation (WMC) acquisition Copper production began in 1988 Nominal milling capacity raised to 9 Mtpa in 1999 New copper solvent extraction plant commissioned in 2004 Major smelter maintenance campaigns completed in 2017 and 2022 Nominal milling capacity raised to 11 Mtpa in 2023 |
Mine type & mineralisation style |
|
Underground Large poly-metallic deposit of iron oxide-copper-uranium-gold mineralisation |
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Power source |
|
Electricity transmitted via BHP’s 275 kV power line from Port Augusta and ElectraNet’s system upstream of Port Augusta Power is sourced from the local grid, which is supplied under a retail contract, currently supplemented by a Power Purchase Agreement with Neoen |
Processing plants and other available facilities |
|
Underground automated train and trucking network feeding crushing, storage and ore hoisting facilities 2 grinding circuits Nominal milling capacity of 11 Mtpa Flash furnace produces copper anodes, which are then refined to produce copper cathodes Electrowon copper cathode and uranium oxide concentrate produced by leaching and solvent extracting flotation tailings Gold cyanide leach circuit and gold room producing gold bullion and silver bullion |
Key permit conditions |
|
The Roxby Downs (Indenture Ratification) Act 1982 (Indenture Act) applies to Olympic Dam’s operations. It contains conditions from the South Australian Government, including relating to the protection and management of the environment; water; closure and rehabilitation considerations; local procurement and community plans/initiatives/project commitments; and payment of royalties. BHP and the South Australian Government have agreed key amendments to the Indenture, including to a pathway to expand Olympic Dam mining tenure to support future growth plans, which will become effective on a date to be set by the South Australian Government in consultation with BHP The Olympic Dam operations rely on an impact assessment for operations conducted in 1997 (1997 EIS) At a Commonwealth level, Olympic Dam relies on an exemption from the Environment Protection Biodiversity Conservation Act 1999 (EPBC Act) based on the 1997 EIS under the Environmental Reform (Consequential Provisions) Act 1999 |
Mine & location |
||
Carrapateena |
|
470 km northwest of Adelaide, South Australia |
Means of access |
|
60 km private access road Copper concentrate (containing gold and silver) transported by road and rail |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
The Carrapateena Project holds a mining lease (ML 6471) and 5 miscellaneous purposes licences (MPL 149, 152, 153, 154 and 156), which were granted by the South Australian Government and expire in January 2039, with the exception of MPL 149 which expires in July 2038 Approximately 44,144 hectares in size across all 6 tenements An application for tenement extensions can be made within 6 months of the tenement expiry date |
History and stage of property |
|
2019 – First saleable concentrate produced 2020 – 4.25 Mtpa ramp up achieved 2022 – Cave propagated to surface 2023 – Acquired as part of OZ Minerals acquisition 2024 – Commissioning of Crusher Station 2 2025 – Commissioning of the Hydrofloat Project 2026 – 7 Mtpa ramp up achieved |
Mine type & mineralisation style |
|
Underground Iron oxide copper gold mineralisation |
Power source |
|
Electricity transmitted via private high voltage power line supplied by ElectraNet under a Build Own Operate Maintain (BOOM) Agreement that is part of the Transmission Connection Agreement (TCA) Power is sourced from the local grid, which is supplied under a retail agreement |
Processing plants and other available facilities |
|
Conventional crushing, grinding and flotation on mine site Nameplate milling capacity of ~7 Mtpa |
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Key permit conditions |
|
The SA Mining Act and associated Mining Regulations 2020 (SA) apply to the Carrapateena operations. Each tenement document (either ML or MPL) in conjunction with the operation’s Program for Environment Protection and Rehabilitation (PEPR), MPEPR2024/009 outlines the conditions from the South Australian Government that must be complied with including those relating to the protection and management of the environment, water, closure and rehabilitation The Carrapateena operations are also approved by the Federal Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and as such has further conditions regarding nationally threatened flora and fauna species |
Mine & location |
||
Prominent Hill |
|
650 km northwest of Adelaide, South Australia |
Means of access |
|
Mine access road (45 km off Stuart Highway) Copper concentrate (containing gold and silver) transported by road and rail |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining lease ML 6228 granted by South Australian Government expires in August 2041 Miscellaneous purpose licences (MPL 81, 82, 83, 84, 91, 93, 94, 96, 97, 101, 112 to 117, 119 to 122 and 169 to 176) and extractive mineral leases (EML 6234, 6236 to 6242, 6278 to 6296, 6299 to 6301) which were granted by the South Australian Government and expire in August 2041 Approximately 11,462 hectares across all 59 tenements |
History and stage of property |
|
2009 – Malu open-pit mine commissioned 2012 – Ankata underground mine expansion commissioned 2015 – Malu underground mine expansion commissioned 2017 – Expansion of the underground operation with new northern decline (Liru) 2018 – Malu open-pit mine safely closed after more than 100 Mt of ore mined over 10 years 2019 – Underground ramp up to 4.0 Mt 2023 – Acquired as part of OZ Minerals acquisition 2025 – Wira shaft sink completed |
Mine type & mineralisation style |
|
Underground Iron oxide copper gold mineralisation |
Power source |
|
Electricity transmitted via a private high voltage power line is supplied by ElectraNet under a Build Own Operate Maintain (BOOM) Agreement that is part of the Transmission Connection Agreement (TCA) and BHP’s 132 kV power line to Prominent Hill at a junction point close to the Olympic Dam mine Power is sourced from the local grid, which is supplied under a retail agreement |
Processing plants and other available facilities |
|
Conventional crushing, semi-autogenous grinding (SAG) and ball mill grinding circuit and flotation processing plant on site Nameplate capacity of 10 Mtpa |
Key permit conditions |
|
The SA Mining Act and associated Mining Regulations 2020 (SA) apply to the Prominent Hill operations. Each tenement document (either ML or MPL) in conjunction with the operation’s Program for Environment Protection and Rehabilitation (PEPR), MPEPR2022/137 outlines the conditions from the South Australian Government that must be complied with including those relating to the protection and management of the environment, water, closure and rehabilitation The Prominent Hill operations are also approved by the Federal Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) and as such have further conditions regarding nationally threatened flora and fauna species |
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Minerals Americas
Copper mining operations
The following table contains additional details of our mining operations. This table should be read in conjunction with OFR 4.1 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
||
Escondida |
|
Atacama Desert 170 km southeast of Antofagasta, Chile |
Means of access |
|
Private road available for public use Copper cathode transported by rail to ports at Antofagasta and Mejillones Copper concentrate transported by Escondida-owned pipelines to its Coloso port facilities |
Type and amount of ownership |
|
BHP 57.5% Rio Tinto 30% JECO Corporation 10% JECO 2 Ltd 2.5% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining concession from Chilean Government valid indefinitely (subject to payment of annual fees) Mining concessions (exploitation) approximately 380,000 hectares |
History and stage of property |
|
Production stage Original construction completed and production commenced in 1990 Start of operations of the third concentrator plant in 2015 Inauguration of Escondida Water Supply desalination plant (CY2018) and its extension (CY2019) Full SaL, a BHP-designed technology, achieved first production at Escondida in FY2025 |
Key permit conditions |
|
Mining companies in Chile must obtain environmental approvals for their projects, issued by the Environmental Assessment Agency (SEA), in order to operate, plus all applicable permits from sectorial agencies Depending on the particular impacts of the project to be assessed, environmental approvals can be obtained following a full Environmental Impact Study (EIA) or after a less complex Environmental Impact Declaration (DIA) |
Mine type & mineralisation style |
|
2 open-cut pits: Escondida and Escondida Norte Escondida and Escondida Norte mineral deposits are adjacent but distinct supergene enriched porphyry copper deposits |
Power source |
|
Electricity is sourced from 100% renewable sources and certified by the Chilean Electricity Authority (Coordinador Eléctrico Nacional – CEN) Renewable Power Purchase Agreements (PPAs) with third parties supply approximately 99% of Escondida electricity needs with the balance supplied by Tamakaya SpA (100% owned by BHP) Escondida-owned transmission lines connect to Chile’s national power grid |
Processing plants and other available facilities |
|
Crushing facilities feed concentrator and leaching processes 3 concentrator plants produce copper concentrate from sulphide ore by flotation extraction process (by-products: gold and silver) and a tailings storage facility 2 solvent extraction and electrowinning plants produce copper cathode Nominal capacity: 422 ktpd (nominal milling capacity) and 350 ktpa copper cathode (nominal capacity of tank house) 2 x 168 km concentrate pipelines, 167 km water pipeline Port facilities at Coloso, Antofagasta Desalinated water plant (total water capacity of 3,800 litres per second) |
Mine & location |
||
Pampa Norte Spence |
|
Atacama Desert 162 km northeast of Antofagasta, Chile |
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Means of access |
|
Public road Copper cathode transported by rail to ports at Mejillones and Antofagasta Copper concentrate transported by rail or trucks to port in Mejillones Molybdenum concentrate is transported by trucks |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining concession from Chilean Government valid indefinitely (subject to payment of annual fees) Mining concessions (exploitation): approximately 44,000 hectares |
History and stage of property |
|
Production stage First copper cathode produced in 2006 Spence Growth Option (i.e. the 95 ktpd copper concentrator and molybdenum plants) produced first copper concentrate in December 2020 and first molybdenum in April 2022 |
Key permit conditions |
|
Mining companies in Chile must obtain environmental approvals for their projects, issued by the Environmental Assessment Agency (SEA), in order to operate, plus all applicable permits from sectoral agencies Depending on the impacts of the project to be assessed, environmental approvals can be obtained following a full Environmental Impact Study (EIA) or after a less complex instrument called Environmental Impact Declaration (DIA) |
Mine type & mineralisation style |
|
Open-cut Enriched and oxidised porphyry copper deposit containing in situ copper oxide mineralisation that overlies a near-horizontal sequence of supergene sulphides, transitional sulphides and finally primary (hypogene) sulphide mineralisation |
Power source |
|
Electricity is sourced from 100% renewable sources and certified by the Chilean Electricity Authority (Coordinador Eléctrico Nacional – CEN) Renewable Power Purchase Agreements (PPAs) with third parties supply most of Spence electricity needs. The remainder is supplied by Tamakaya SpA (100% owned by BHP) Spence-owned transmission lines connect to Chile’s national power grid |
Processing plants and other available facilities |
|
Crushing facilities feed concentrator and leaching processes 1 copper concentrator plant with 95 ktpd capacity (by-products: gold and silver), molybdenum plant, a 1,000 litres per second desalinated water plant under a Build Own Operate Transfer (BOOT) Agreement and a tailings storage facility Dynamic leach pads, solvent extraction and electrowinning plant Nominal capacity of tank house: 200 ktpa copper cathode |
Mine & location |
||
Pampa Norte Cerro Colorado |
|
Atacama Desert 120 km east of Iquique, Chile |
Means of access |
|
Public road Copper cathode trucked to port at Iquique |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Mining concession from Chilean Government valid indefinitely (subject to payment of annual fees) Transitioned to care and maintenance in Mining concessions (exploitation): approximately 34,000 hectares |
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History and stage of property |
|
Production stage Commercial production commenced in 1994 Expansions in 1996 and 1998 Entered temporary care and maintenance in December 2023 Submitted an Environmental Impact Assessment (EIA) in June 2026, setting out a plan to restart operations and extend the mine life for an additional 20 years |
Key permit conditions |
|
Mining companies in Chile must obtain environmental approvals for their projects, issued by the Environmental Assessment Agency (SEA), in order to operate, plus all applicable permits from sectoral agencies Depending on the impacts of the project to be assessed, environmental approvals can be obtained following a full Environmental Impact Study (EIA) or after a less complex instrument called Environmental Impact Declaration (DIA) Mining companies in Chile that enter a care and maintenance period must obtain approval of a Temporary Closure Plan, sectorial permit, from Sernageomin (Mining Authority). This permit is initially granted for a period of 2 years and is renewable for an additional period of up to 3 years |
Mine type & mineralisation style |
|
Open-cut Enriched and oxidised porphyry copper deposit containing in situ copper oxide mineralisation that overlies a near-horizontal sequence of supergene sulphides, transitional sulphides and finally primary (hypogene) sulphide mineralisation |
Power source |
|
Electricity sourced from 100% renewable sources and certified by the Chilean Electricity Authority (Coordinador Eléctrico Nacional – CEN) Electricity purchased from external vendors |
Processing plants and other available facilities |
|
Crushing facilities, dynamic leach pads, solvent extraction plant, electrowinning plant Nominal capacity of tank house: 130 ktpa copper cathode |
Mine & location |
||
Antamina |
|
Andes mountain range, Peru Mine: San Marcos – Ancash, 270 km northeast of Lima Port: Huarmey – Ancash, 300 km north of Lima |
Means of access |
|
Public road Copper and zinc concentrates transported by Antamina-owned pipeline to its Punta Lobitos port Molybdenum and lead/bismuth concentrates transported by truck |
Type and amount of ownership |
|
BHP 33.75% Glencore 33.75% Teck 22.5% Mitsubishi 10% |
Operator |
|
Compañía Minera Antamina S.A. |
Title, leases or options and acreage involved |
|
Mining rights from Peruvian Government held indefinitely, subject to payment of annual fees and supply of information on investment and production Total acreage: approximately 6,600 hectares |
History and stage of property |
|
Production stage Commercial production commenced in 2001 |
Key permit conditions |
|
During FY2025 Antamina advanced the implementation of commitments outlined in the Modification of the Environmental Impact Assessment (MEIA1) which was approved in 2024. |
Mine type & mineralisation style |
|
Open-cut Zoned porphyry and skarn deposit with central copper dominated ores and an outer band of copper-zinc dominated ores |
Power source |
|
Contracts with individual power producers |
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Processing plants and other available facilities |
|
Primary crusher, concentrator, copper and zinc flotation circuits, bismuth/moly cleaning circuit Nominal milling capacity of 145 ktpd 304 km concentrate pipeline Port facilities at Huarmey |
Mine & location |
||
Resolution |
|
Superior/Project: Pinal – Arizona 100 km east of Phoenix, United States |
Means of access |
|
Public road |
Type and amount of ownership |
|
BHP 45% Rio Tinto 55% |
Operator |
|
Resolution Copper Mining LLC |
Title, leases or options and acreage involved |
|
Private land, patented and unpatented mining claims Total acreage: approximately 46,000 acres |
History and stage of property |
|
Exploration stage Resolution deposit is within the footprint of and adjacent to the historical Magma Copper Mine Resolution non-operated joint venture (NOJV) formed in 2004 with Rio Tinto as operator |
Key permit conditions |
|
Federal land exchange legislation from 2014 (the LEX Act) mandates the transfer of Federal land critical for the project to Resolution Copper, in exchange for other environmentally and culturally significant lands owned by Resolution Copper (the Land Exchange, or LEX). The LEX Act requires the preparation and publication of a Final Environmental Impact Statement (FEIS) as a prerequisite to the LEX occurring. The preparation of the FEIS was led by the US Forest Service and conducted pursuant to the National Environmental Policy Act (NEPA) and other US legislation, including requirements for consultation, coordination and collaboration with Native American Tribes The FEIS was published in June 2025, with a final Record of Decision published in March 2026, following objections and legal challenges. The LEX was completed on 16 March 2026, enabling the next phase of technical work and development planning for the project. The FEIS and LEX remain the subject of ongoing litigation The Resolution Copper Project is also required to obtain State and local permits
|
Mine type & mineralisation style |
|
Underground Porphyry copper and molybdenum deposit |
Power source |
|
115 kV power lines to East and West Plant sites with supply contract with Salt River Project |
Processing plants and other available facilities |
|
Water treatment infrastructure, 2 existing underground shafts with associated support infrastructure, and a rail corridor enabling product transportation |
Mine & location |
||
Vicuña |
|
San Juan Province of Argentina and Atacama Region of Chile 350 km northwest of San Juan city, Argentina |
Means of access |
|
Public and private roads |
Type and amount of ownership |
|
BHP 50% Lundin Mining 50% |
Operator |
|
Vicuña Corp. |
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Title, leases or options and acreage involved |
|
Exploration and exploitation mining rights in Argentina and in Chile Total acreage: approximately 117,116 hectares |
History and stage |
|
Exploration stage The Vicuña project is targeting the integrated development of the Josemaria and the Filo del Sol copper-gold-silver deposits Filo Corp., the prior owner of Filo del Sol, completed a pre-feasibility study for the standalone development of the oxide component of the Filo del Sol deposit in CY2024 The Josemaria deposit is located approximately 10 km from Filo del Sol, entirely within the San Juan Province, Argentina. A feasibility study for Josemaria as a standalone project was completed in November 2020 by Josemaria Resources (prior to Lundin Mining’s acquisition of the deposit) and an Environmental Impact Declaration was approved by the Mining Authority of San Juan, Argentina, in April 2022. In March 2022, following the discovery of the high-grade Aurora Zone, BHP acquired an initial 5 per cent equity interest in Filo Corp., which owned 100 per cent of Filo del Sol. BHP completed additional incremental equity investments in Filo Corp. between 2022 and 2025, increasing our ownership to approximately 6 per cent. In FY2025, BHP and Lundin Mining completed the joint acquisition of the remaining interest of Filo Corp. Concurrent to the acquisition of Filo Corp., BHP and Lundin Mining formed Vicuña Corp., a 50/50 independently operated joint venture, to hold Josemaria and Filo del Sol. Josemaria was previously 100 per cent owned by Lundin Mining. Lundin Mining contributed its interest in the Josemaria deposit to the joint venture for a cash payment from BHP Vicuña released a Technical Assessment Report in February 2026 on the integrated Vicuña project, comprising Josemaria and Filo del Sol Vicuña received approval for the inclusion of the Josemaria and Filo del Sol deposits to Argentina’s Incentive Regime for Large Investments ('RIGI') under the Long-Term Strategic Export Projects designation ('PEELP') in June 2026 |
Key permit conditions |
|
Vicuña is subject to a range of permitting requirements, predominantly led by the Province of San Juan |
Mine type & mineralisation style |
|
Open-pit Porphyry-epithermal copper-gold-silver deposits |
Power source |
|
Power generated on-site |
Processing plants and other available facilities |
|
Two camps established on site to accommodate 2,300 people Administrative offices in the city of San Juan, San Juan Province, Argentina Vicuña corporate head office in Vancouver, British Columbia, Canada |
Iron ore mining operations
The following table contains additional details of our mining operations. This table should be read in conjunction with OFR 4.2 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
||
Samarco |
|
Southeast Brazil Samarco mine: Mariana – Minas Gerais, 130 km southeast of Belo Horizonte Port: Anchieta – Espírito Santo, 520 km east of Belo Horizonte |
Means of access |
|
Public road Iron ore pellets exported via Samarco port facilities – Ubu Port |
Type and amount of ownership |
|
BHP Brasil Ltda. 50% Vale S.A. 50% |
Operator |
|
Samarco Mineração S.A. |
Title, leases or options and acreage involved |
|
Mining concessions granted by Brazilian Government subject to compliance with the mine plan Samarco recommenced iron ore pellet production in December 2020, having met licensing requirements to restart operations at its Germano complex in Minas Gerais and its Ubu complex in Espírito Santo Mining rights for approximately 1,605 hectares |
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History and stage of property |
|
Production stage Production began at Germano mine in 1977 and at Alegria complex in 1992 Second pellet plant built in 1997 Third pellet plant, second concentrator and second pipeline built in 2008 Fourth pellet plant, third concentrator and third pipeline built in 2014
|
Key permit conditions |
|
Samarco obtained an operating licence (LOC – Corrective Operating Licence) for the resumption of operations In June 2025, Samarco obtained the long-term licence. The licence encompasses planned expansion of the mining area as well as the development of new infrastructure for waste and tailings stacked disposal in piles, which allows the company to reach 100% production capacity, subject to investment approvals. A future licence will be required for the continuity of the business encompassing further tailings stacked disposal areas |
Mine type & mineralisation |
|
Open-cut Martitic, specular, goethitic and magnetitic itabirites |
Power source |
|
Samarco holds interests in 2 hydroelectric power plants, which supply part of its electricity needs. The remainder is purchased from the free electricity market |
Processing |
|
Facilities currently operating include 2 concentrators, a system of tailings disposal combining a confined pit and filtration plant for dry stacking of sandy tailings, 1 pipeline, 2 pellet plants Nominal milling capacity 100 ktpd (for 2 concentrators) 400 km concentrate pipeline Port facilities at Anchieta (Espírito Santo) |
Other mining operations
The following table contains additional details of our mining operations. This table should be read in conjunction with OFR 4.5 and the production table and reserves and resources tables in Additional information 4 and 6.
Mine & location |
||
Jansen (under construction) |
|
Province of Saskatchewan Approximately 140 km east of Saskatoon, Canada |
Means of access |
|
Public road Muriate of Potash (MOP) to be transported by rail to (i) the port at Westshore Terminal in Delta, British Columbia, Canada for export to offshore markets and (ii) points in Canada and United States for distribution to onshore markets |
Type and amount of ownership |
|
BHP 100% |
Operator |
|
BHP |
Title, leases or options and acreage involved |
|
Total area of the Jansen lease is approximately 1,150km2 All surface lands have been acquired |
History and stage of property |
|
Development stage Stage 1 under construction Stage 2 in early stages of construction |
Key permit conditions |
|
Jansen potash project received Ministerial approval under the Saskatchewan Environmental Assessment Act Following approval, various federal, provincial and municipal permits have been or will be obtained for construction and operation of facilities |
Mine type & mineralisation style |
|
Underground The Lower Patience Lake (LPL) sub-member is the potash horizon targeted for Jansen. The LPL sub-member is a bedded evaporite composed of sylvite (KCl), halite (NaCl) with variable amounts of disseminated insoluble and clay seams |
Power source |
|
Electricity transmitted via BHP’s 230 kV substation and upstream provincial power utility system |
Processing plants and other available facilities |
|
Mills, buildings and other facilities and infrastructure are under construction |
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We prepare our Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. We publish our Consolidated Financial Statements in US dollars. All Consolidated Income Statement, Consolidated Balance Sheet and Consolidated Cash Flow Statement information below has been derived from audited Financial Statements. For more information refer to the Financial Statements.
Some information in this section has been presented on a Continuing operations basis to exclude the contribution from Discontinued operations.
Year ended 30 June |
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2026 |
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2025 |
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2024 |
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2023 |
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2022 |
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Consolidated Income Statement |
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|
|
|||||
Revenue |
|
|
58,760 |
|
|
|
51,262 |
|
|
|
55,658 |
|
|
|
53,817 |
|
|
|
65,098 |
|
Profit from operations |
|
|
23,869 |
|
|
|
19,464 |
|
|
|
17,537 |
|
|
|
22,932 |
|
|
|
34,106 |
|
Profit after taxation from Continuing operations |
|
|
13,026 |
|
|
|
11,143 |
|
|
|
9,601 |
|
|
|
14,324 |
|
|
|
22,400 |
|
Profit/(loss) after taxation from Discontinued operations |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
10,655 |
|
Profit after taxation from Continuing and Discontinued operations attributable to BHP shareholders (Attributable profit) |
|
|
9,833 |
|
|
|
9,019 |
|
|
|
7,897 |
|
|
|
12,921 |
|
|
|
30,900 |
|
Profit after taxation from Continuing operations attributable to BHP shareholders |
|
|
9,833 |
|
|
|
9,019 |
|
|
|
7,897 |
|
|
|
12,921 |
|
|
|
20,245 |
|
Dividends per ordinary share – paid during the period (US cents) |
|
|
133.0 |
|
|
|
124.0 |
|
|
|
152.0 |
|
|
|
265.0 |
|
|
|
350.0 |
|
Dividends per ordinary share – determined in respect of the period (US cents) |
|
172.0 |
|
|
|
110.0 |
|
|
|
146.0 |
|
|
|
170.0 |
|
|
|
325.0 |
|
|
In specie dividend on merger of Petroleum with Woodside (US cents) |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
386.4 |
|
Basic earnings per ordinary share (US cents)1 |
|
|
193.6 |
|
|
|
177.8 |
|
|
|
155.8 |
|
|
|
255.2 |
|
|
|
610.6 |
|
Diluted earnings per ordinary share (US cents)1 |
|
|
193.2 |
|
|
|
177.4 |
|
|
|
155.5 |
|
|
|
254.7 |
|
|
|
609.3 |
|
Basic earnings from Continuing operations per ordinary share (US cents)1 |
|
|
193.6 |
|
|
|
177.8 |
|
|
|
155.8 |
|
|
|
255.2 |
|
|
|
400.0 |
|
Diluted earnings from Continuing operations per ordinary share (US cents)1 |
|
|
193.2 |
|
|
|
177.4 |
|
|
|
155.5 |
|
|
|
254.7 |
|
|
|
399.2 |
|
Number of ordinary shares (million)1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
- At period end |
|
|
5,081 |
|
|
|
5,076 |
|
|
|
5,072 |
|
|
|
5,066 |
|
|
|
5,062 |
|
- Weighted average |
|
|
5,078 |
|
|
|
5,073 |
|
|
|
5,068 |
|
|
|
5,064 |
|
|
|
5,061 |
|
- Diluted |
|
|
5,089 |
|
|
|
5,083 |
|
|
|
5,077 |
|
|
|
5,073 |
|
|
|
5,071 |
|
Consolidated Balance Sheet2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
|
121,387 |
|
|
|
108,790 |
|
|
|
102,362 |
|
|
|
101,296 |
|
|
|
95,166 |
|
Net assets |
|
|
56,321 |
|
|
|
52,218 |
|
|
|
49,120 |
|
|
|
48,530 |
|
|
|
48,766 |
|
Share capital (including share premium) |
|
|
5,179 |
|
|
|
5,015 |
|
|
|
4,899 |
|
|
|
4,737 |
|
|
|
4,638 |
|
Total equity attributable to BHP shareholders |
|
|
50,923 |
|
|
|
47,665 |
|
|
|
44,811 |
|
|
|
44,496 |
|
|
|
44,957 |
|
Consolidated Cash Flow Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net operating cash flows3 |
|
|
21,778 |
|
|
|
18,692 |
|
|
|
20,665 |
|
|
|
18,701 |
|
|
|
32,174 |
|
Capital and exploration expenditure4,5 |
|
|
10,257 |
|
|
|
9,794 |
|
|
|
9,273 |
|
|
|
7,083 |
|
|
|
7,545 |
|
Other financial information5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net debt |
|
|
8,694 |
|
|
|
12,924 |
|
|
|
9,120 |
|
|
|
11,166 |
|
|
|
333 |
|
Underlying attributable profit |
|
|
13,204 |
|
|
|
10,157 |
|
|
|
13,660 |
|
|
|
13,420 |
|
|
|
23,815 |
|
Underlying attributable profit – Continuing operations |
|
|
13,204 |
|
|
|
10,157 |
|
|
|
13,660 |
|
|
|
13,420 |
|
|
|
21,319 |
|
Underlying EBITDA |
|
|
32,947 |
|
|
|
25,978 |
|
|
|
29,016 |
|
|
|
27,956 |
|
|
|
40,634 |
|
Underlying EBIT |
|
|
26,640 |
|
|
|
20,240 |
|
|
|
23,631 |
|
|
|
22,820 |
|
|
|
34,436 |
|
Underlying basic earnings per share (US cents) |
|
|
260.0 |
|
|
|
200.2 |
|
|
|
269.5 |
|
|
|
265.0 |
|
|
|
470.6 |
|
Underlying basic earnings per share – Continuing operations (US cents) |
|
|
260.0 |
|
|
|
200.2 |
|
|
|
269.5 |
|
|
|
265.0 |
|
|
|
421.2 |
|
Underlying return on capital employed (per cent) |
|
|
26.1 |
|
|
|
20.6 |
|
|
|
27.2 |
|
|
|
28.8 |
|
|
|
48.7 |
|
184
Table of Contents
185
Table of Contents
Management believes the following financial information presented by commodity provides a meaningful indication of the underlying financial performance of the assets, including equity accounted investments, of each reportable segment. Information relating to assets that are accounted for as equity accounted investments is shown to reflect BHP's share, unless otherwise noted, to provide insight into the drivers of these assets.
For the purposes of this financial information, segments are reported on a statutory basis in accordance with IFRS 8/AASB 8 ‘Operating Segments’. The tables for each commodity include an 'adjustment for equity accounted investments' to reconcile the equity accounted results to the statutory segment results.
> For a reconciliation of non-IFRS financial information to respective IFRS measures and an explanation as to the use of Underlying EBITDA in assessing our performance refer to OFR 8
> For the definition and method of calculation of non-IFRS financial information refer to OFR 8.1
186
Table of Contents
> For more information as to the statutory determination of our reportable segments refer to Financial Statements note 1 'Segment reporting'
Year ended 30 June 2026 |
|
Revenue2 |
|
|
Underlying |
|
|
Underlying |
|
|
Exceptional |
|
|
Net |
|
|
Capital |
|
|
Exploration |
|
|
Exploration |
|
||||||||
Copper |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Escondida |
|
|
17,054 |
|
|
|
12,440 |
|
|
|
11,265 |
|
|
|
|
|
|
15,126 |
|
|
|
2,121 |
|
|
|
|
|
|
|
|||
Pampa Norte5 |
|
|
2,857 |
|
|
|
1,560 |
|
|
|
1,075 |
|
|
|
|
|
|
5,654 |
|
|
|
866 |
|
|
|
|
|
|
|
|||
Antamina6 |
|
|
2,522 |
|
|
|
1,762 |
|
|
|
1,626 |
|
|
|
|
|
|
1,788 |
|
|
|
437 |
|
|
|
|
|
|
|
|||
Copper South Australia7 |
|
|
6,011 |
|
|
|
3,203 |
|
|
|
2,392 |
|
|
|
|
|
|
18,383 |
|
|
|
1,523 |
|
|
|
|
|
|
|
|||
Other6 |
|
|
113 |
|
|
|
(101 |
) |
|
|
(162 |
) |
|
|
|
|
|
2,518 |
|
|
|
293 |
|
|
|
|
|
|
|
|||
Total Copper from Group production |
|
|
28,557 |
|
|
|
18,864 |
|
|
|
16,196 |
|
|
|
– |
|
|
|
43,469 |
|
|
|
5,240 |
|
|
|
|
|
|
|
||
Third-party products |
|
|
2,996 |
|
|
|
68 |
|
|
|
68 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
||
Total Copper |
|
|
31,553 |
|
|
|
18,932 |
|
|
|
16,264 |
|
|
|
– |
|
|
|
43,469 |
|
|
|
5,240 |
|
|
|
162 |
|
|
|
162 |
|
Adjustment for equity accounted investments6 |
|
|
(2,522 |
) |
|
|
(745 |
) |
|
|
(603 |
) |
|
|
– |
|
|
|
– |
|
|
|
(684 |
) |
|
|
(6 |
) |
|
|
(6 |
) |
Total Copper statutory result |
|
|
29,031 |
|
|
|
18,187 |
|
|
|
15,661 |
|
|
|
– |
|
|
|
43,469 |
|
|
|
4,556 |
|
|
|
156 |
|
|
|
156 |
|
Iron Ore |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Western Australia Iron Ore |
|
|
23,726 |
|
|
|
14,667 |
|
|
|
12,479 |
|
|
|
|
|
|
22,361 |
|
|
|
3,048 |
|
|
|
|
|
|
|
|||
Samarco8 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
(4,874 |
) |
|
|
– |
|
|
|
|
|
|
|
|||
Other |
|
|
138 |
|
|
|
(139 |
) |
|
|
(166 |
) |
|
|
|
|
|
(368 |
) |
|
|
– |
|
|
|
|
|
|
|
|||
Total Iron Ore from Group production |
|
|
23,864 |
|
|
|
14,528 |
|
|
|
12,313 |
|
|
|
(365 |
) |
|
|
17,119 |
|
|
|
3,048 |
|
|
|
|
|
|
|
||
Third-party products |
|
|
19 |
|
|
|
1 |
|
|
|
1 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
||
Total Iron Ore |
|
|
23,883 |
|
|
|
14,529 |
|
|
|
12,314 |
|
|
|
(365 |
) |
|
|
17,119 |
|
|
|
3,048 |
|
|
|
122 |
|
|
|
77 |
|
Adjustment for equity accounted investments |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total Iron Ore statutory result |
|
|
23,883 |
|
|
|
14,529 |
|
|
|
12,314 |
|
|
|
(365 |
) |
|
|
17,119 |
|
|
|
3,048 |
|
|
|
122 |
|
|
|
77 |
|
Coal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
BHP Mitsubishi Alliance |
|
|
3,876 |
|
|
|
702 |
|
|
|
161 |
|
|
|
|
|
|
6,421 |
|
|
|
370 |
|
|
|
|
|
|
|
|||
New South Wales Energy Coal9 |
|
|
1,851 |
|
|
|
342 |
|
|
|
112 |
|
|
|
|
|
|
(300 |
) |
|
|
39 |
|
|
|
|
|
|
|
|||
Other |
|
|
– |
|
|
|
(100 |
) |
|
|
(130 |
) |
|
|
|
|
|
(17 |
) |
|
|
6 |
|
|
|
|
|
|
|
|||
Total Coal from Group production |
|
|
5,727 |
|
|
|
944 |
|
|
|
143 |
|
|
|
– |
|
|
|
6,104 |
|
|
|
415 |
|
|
|
|
|
|
|
||
Third-party products |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
||
Total Coal |
|
|
5,727 |
|
|
|
944 |
|
|
|
143 |
|
|
|
– |
|
|
|
6,104 |
|
|
|
415 |
|
|
|
28 |
|
|
|
13 |
|
Adjustment for equity accounted investments9 |
|
|
(137 |
) |
|
|
(112 |
) |
|
|
(85 |
) |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total Coal statutory result |
|
|
5,590 |
|
|
|
832 |
|
|
|
58 |
|
|
|
– |
|
|
|
6,104 |
|
|
|
415 |
|
|
|
28 |
|
|
|
13 |
|
Group and unallocated items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Potash |
|
|
– |
|
|
|
(326 |
) |
|
|
(328 |
) |
|
|
|
|
|
8,735 |
|
|
|
1,814 |
|
|
|
– |
|
|
|
– |
|
|
Western Australia Nickel10 |
|
|
245 |
|
|
|
(255 |
) |
|
|
(283 |
) |
|
|
|
|
|
(297 |
) |
|
|
– |
|
|
|
12 |
|
|
|
12 |
|
|
Other11 |
|
|
11 |
|
|
|
(20 |
) |
|
|
(782 |
) |
|
|
|
|
|
(1,400 |
) |
|
|
16 |
|
|
|
90 |
|
|
|
89 |
|
|
Total Group and unallocated items |
|
|
256 |
|
|
|
(601 |
) |
|
|
(1,393 |
) |
|
|
(2,406 |
) |
|
|
7,038 |
|
|
|
1,830 |
|
|
|
102 |
|
|
|
101 |
|
Inter-segment adjustment |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total Group |
|
|
58,760 |
|
|
|
32,947 |
|
|
|
26,640 |
|
|
|
(2,771 |
) |
|
|
73,730 |
|
|
|
9,849 |
|
|
|
408 |
|
|
|
347 |
|
187
Table of Contents
Year ended 30 June 2025 |
|
Revenue2 |
|
|
Underlying |
|
|
Underlying |
|
|
Exceptional |
|
|
Net |
|
|
Capital |
|
|
Exploration |
|
|
Exploration |
|
||||||||
Copper |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Escondida |
|
|
13,177 |
|
|
|
8,593 |
|
|
|
7,558 |
|
|
|
|
|
|
14,093 |
|
|
|
2,390 |
|
|
|
|
|
|
|
|||
Pampa Norte5 |
|
|
2,726 |
|
|
|
1,270 |
|
|
|
696 |
|
|
|
|
|
|
5,051 |
|
|
|
675 |
|
|
|
|
|
|
|
|||
Antamina6 |
|
|
1,562 |
|
|
|
1,002 |
|
|
|
827 |
|
|
|
|
|
|
1,661 |
|
|
|
395 |
|
|
|
|
|
|
|
|||
Copper South Australia7 |
|
|
4,655 |
|
|
|
1,936 |
|
|
|
1,247 |
|
|
|
|
|
|
17,337 |
|
|
|
1,205 |
|
|
|
|
|
|
|
|||
Other6 |
|
|
127 |
|
|
|
(100 |
) |
|
|
(174 |
) |
|
|
|
|
|
2,742 |
|
|
|
201 |
|
|
|
|
|
|
|
|||
Total Copper from Group production |
|
|
22,247 |
|
|
|
12,701 |
|
|
|
10,154 |
|
|
|
– |
|
|
|
40,884 |
|
|
|
4,866 |
|
|
|
|
|
|
|
||
Third-party products |
|
|
1,845 |
|
|
|
91 |
|
|
|
91 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
||
Total Copper |
|
|
24,092 |
|
|
|
12,792 |
|
|
|
10,245 |
|
|
|
– |
|
|
|
40,884 |
|
|
|
4,866 |
|
|
|
142 |
|
|
|
142 |
|
Adjustment for equity accounted investments6 |
|
|
(1,562 |
) |
|
|
(466 |
) |
|
|
(289 |
) |
|
|
– |
|
|
|
– |
|
|
|
(474 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
Total Copper statutory result |
|
|
22,530 |
|
|
|
12,326 |
|
|
|
9,956 |
|
|
|
– |
|
|
|
40,884 |
|
|
|
4,392 |
|
|
|
139 |
|
|
|
139 |
|
Iron Ore |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Western Australia Iron Ore |
|
|
22,767 |
|
|
|
14,394 |
|
|
|
12,171 |
|
|
|
|
|
|
20,959 |
|
|
|
2,609 |
|
|
|
|
|
|
|
|||
Samarco8 |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
(5,522 |
) |
|
|
– |
|
|
|
|
|
|
|
|||
Other |
|
|
124 |
|
|
|
(2 |
) |
|
|
(28 |
) |
|
|
|
|
|
(185 |
) |
|
|
8 |
|
|
|
|
|
|
|
|||
Total Iron Ore from Group production |
|
|
22,891 |
|
|
|
14,392 |
|
|
|
12,143 |
|
|
|
(321 |
) |
|
|
15,252 |
|
|
|
2,617 |
|
|
|
|
|
|
|
||
Third-party products |
|
|
28 |
|
|
|
4 |
|
|
|
4 |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
|
|
|
|
||
Total Iron Ore |
|
|
22,919 |
|
|
|
14,396 |
|
|
|
12,147 |
|
|
|
(321 |
) |
|
|
15,252 |
|
|
|
2,617 |
|
|
|
104 |
|
|
|
65 |
|
Adjustment for equity accounted investments |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total Iron Ore statutory result |
|
|
22,919 |
|
|
|
14,396 |
|
|
|
12,147 |
|
|
|
(321 |
) |
|
|
15,252 |
|
|
|
2,617 |
|
|
|
104 |
|
|
|
65 |
|
Coal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
BHP Mitsubishi Alliance |
|
|
3,422 |
|
|
|
591 |
|
|
|
101 |
|
|
|
|
|
|
6,536 |
|
|
|
402 |
|
|
|
|
|
|
|
|||
New South Wales Energy Coal9 |
|
|
1,773 |
|
|
|
303 |
|
|
|
193 |
|
|
|
|
|
|
(121 |
) |
|
|
106 |
|
|
|
|
|
|
|
|||
Other |
|
|
– |
|
|
|
(173 |
) |
|
|
(203 |
) |
|
|
|
|
|
(58 |
) |
|
|
17 |
|
|
|
|
|
|
|
|||
Total Coal from Group production |
|
|
5,195 |
|
|
|
721 |
|
|
|
91 |
|
|
|
– |
|
|
|
6,357 |
|
|
|
525 |
|
|
|
|
|
|
|
||
Third-party products |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
− |
|
|
|
– |
|
|
|
|
|
|
|
|||
Total Coal |
|
|
5,195 |
|
|
|
721 |
|
|
|
91 |
|
|
|
– |
|
|
|
6,357 |
|
|
|
525 |
|
|
|
15 |
|
|
|
4 |
|
Adjustment for equity accounted investments9 |
|
|
(149 |
) |
|
|
(148 |
) |
|
|
(124 |
) |
|
|
– |
|
|
− |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
Total Coal statutory result |
|
|
5,046 |
|
|
|
573 |
|
|
|
(33 |
) |
|
|
– |
|
|
|
6,357 |
|
|
|
525 |
|
|
|
15 |
|
|
|
4 |
|
Group and unallocated items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Potash |
|
|
– |
|
|
|
(284 |
) |
|
|
(286 |
) |
|
|
|
|
|
8,524 |
|
|
|
1,642 |
|
|
|
1 |
|
|
|
1 |
|
|
Western Australia Nickel10 |
|
|
758 |
|
|
|
(589 |
) |
|
|
(589 |
) |
|
|
|
|
|
(210 |
) |
|
|
176 |
|
|
|
28 |
|
|
|
28 |
|
|
Other11 |
|
|
9 |
|
|
|
(444 |
) |
|
|
(955 |
) |
|
|
|
|
|
(2,020 |
) |
|
|
46 |
|
|
|
109 |
|
|
|
109 |
|
|
Total Group and unallocated items |
|
|
767 |
|
|
|
(1,317 |
) |
|
|
(1,830 |
) |
|
|
(455 |
) |
|
|
6,294 |
|
|
|
1,864 |
|
|
|
138 |
|
|
|
138 |
|
Inter-segment adjustment |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
Total Group |
|
|
51,262 |
|
|
|
25,978 |
|
|
|
20,240 |
|
|
|
(776 |
) |
|
|
68,787 |
|
|
|
9,398 |
|
|
|
396 |
|
|
|
346 |
|
188
Table of Contents
189
Table of Contents
The table below details production across our operations for the three years ended 30 June 2026, 2025 and 2024. Unless otherwise stated, production represents BHP's share of production from which profit is derived from our equity accounted investments. Production information for equity accounted investments is included to provide insight into the operational performance of these entities.
|
|
|
|
|
BHP share of production1 |
|
||||||||||
|
|
|
|
|
Year ended 30 June |
|
||||||||||
|
|
BHP interest |
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
||||
Copper2 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payable metal in concentrate (kt) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Escondida, Chile3 |
|
|
57.5 |
|
|
|
1,046.8 |
|
|
|
1,127.2 |
|
|
|
926.7 |
|
Pampa Norte, Chile4 |
|
|
100 |
|
|
|
121.3 |
|
|
|
150.6 |
|
|
|
150.3 |
|
Copper South Australia, Australia |
|
|
100 |
|
|
|
99.4 |
|
|
|
101.9 |
|
|
|
106.3 |
|
Antamina, Peru5 |
|
|
33.75 |
|
|
|
151.5 |
|
|
|
118.9 |
|
|
|
143.9 |
|
Carajás, Brazil6 |
|
|
100 |
|
|
|
6.8 |
|
|
|
9.4 |
|
|
|
8.2 |
|
Total |
|
|
|
|
|
1,425.8 |
|
|
|
1,508.0 |
|
|
|
1,335.4 |
|
|
Cathode (kt) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Escondida, Chile3 |
|
|
57.5 |
|
|
|
214.4 |
|
|
|
177.7 |
|
|
|
198.6 |
|
Pampa Norte, Chile4 |
|
|
100 |
|
|
|
91.3 |
|
|
|
117.0 |
|
|
|
115.3 |
|
Copper South Australia, Australia |
|
|
100 |
|
|
|
221.3 |
|
|
|
214.0 |
|
|
|
215.7 |
|
Total |
|
|
|
|
|
527.0 |
|
|
|
508.7 |
|
|
|
529.6 |
|
|
Total copper (kt) |
|
|
|
|
|
1,952.8 |
|
|
|
2,016.7 |
|
|
|
1,865.0 |
|
|
Lead |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payable metal in concentrate (t) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Antamina, Peru5 |
|
|
33.75 |
|
|
|
1,279 |
|
|
|
2,232 |
|
|
|
332 |
|
Total |
|
|
|
|
|
1,279 |
|
|
|
2,232 |
|
|
|
332 |
|
|
Zinc |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payable metal in concentrate (t) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Antamina, Peru5 |
|
|
33.75 |
|
|
|
96,127 |
|
|
|
108,607 |
|
|
|
103,392 |
|
Total |
|
|
|
|
|
96,127 |
|
|
|
108,607 |
|
|
|
103,392 |
|
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payable metal in concentrate (troy oz) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Escondida, Chile3 |
|
|
57.5 |
|
|
|
159,454 |
|
|
|
169,075 |
|
|
|
181,061 |
|
Pampa Norte, Chile4 |
|
|
100 |
|
|
|
12,708 |
|
|
|
12,980 |
|
|
|
13,280 |
|
Copper South Australia, Australia |
|
|
100 |
|
|
|
162,334 |
|
|
|
172,565 |
|
|
|
163,061 |
|
Carajás, Brazil6 |
|
|
100 |
|
|
|
5,541 |
|
|
|
7,306 |
|
|
|
5,558 |
|
Total |
|
|
|
|
|
340,037 |
|
|
|
361,926 |
|
|
|
362,960 |
|
|
Refined gold (troy oz) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Copper South Australia, Australia |
|
|
100 |
|
|
|
231,025 |
|
|
|
188,658 |
|
|
|
207,123 |
|
Total |
|
|
|
|
|
231,025 |
|
|
|
188,658 |
|
|
|
207,123 |
|
|
Total gold (troy oz) |
|
|
|
|
|
571,062 |
|
|
|
550,584 |
|
|
|
570,083 |
|
|
Silver |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payable metal in concentrate (troy koz) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Escondida, Chile3 |
|
|
57.5 |
|
|
|
9,091 |
|
|
|
6,858 |
|
|
|
5,446 |
|
Pampa Norte, Chile4 |
|
|
100 |
|
|
|
1,290 |
|
|
|
1,823 |
|
|
|
1,654 |
|
Copper South Australia, Australia |
|
|
100 |
|
|
|
802 |
|
|
|
913 |
|
|
|
1,134 |
|
Antamina, Peru5 |
|
|
33.75 |
|
|
|
5,588 |
|
|
|
4,162 |
|
|
|
3,359 |
|
Total |
|
|
|
|
|
16,771 |
|
|
|
13,756 |
|
|
|
11,593 |
|
|
Refined silver (troy koz) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Copper South Australia, Australia |
|
|
100 |
|
|
|
1,100 |
|
|
|
1,017 |
|
|
|
995 |
|
Total |
|
|
|
|
|
1,100 |
|
|
|
1,017 |
|
|
|
995 |
|
|
Total silver (troy koz) |
|
|
|
|
|
17,871 |
|
|
|
14,773 |
|
|
|
12,588 |
|
|
Uranium |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payable metal in concentrate (t) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Copper South Australia, Australia |
|
|
100 |
|
|
|
3,647 |
|
|
|
3,154 |
|
|
|
3,603 |
|
Total |
|
|
|
|
|
3,647 |
|
|
|
3,154 |
|
|
|
3,603 |
|
|
Molybdenum |
|
|
|
|
|
|
|
|
|
|
|
|
||||
190
Table of Contents
|
|
|
|
|
BHP share of production1 |
|
||||||||||
|
|
|
|
|
Year ended 30 June |
|
||||||||||
|
|
BHP interest |
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
||||
Payable metal in concentrate (t) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Pampa Norte, Chile4 |
|
|
100 |
|
|
|
883 |
|
|
|
694 |
|
|
|
794 |
|
Antamina, Peru5 |
|
|
33.75 |
|
|
|
368 |
|
|
|
2,279 |
|
|
|
1,822 |
|
Total |
|
|
|
|
|
1,251 |
|
|
|
2,973 |
|
|
|
2,616 |
|
|
Iron Ore7 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Production (kt) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Newman Joint Venture, Australia |
|
|
85 |
|
|
|
52,681 |
|
|
|
54,218 |
|
|
|
58,102 |
|
Area C Joint Venture, Australia |
|
|
85 |
|
|
|
129,026 |
|
|
|
119,110 |
|
|
|
105,868 |
|
Yandi Joint Venture, Australia |
|
|
85 |
|
|
|
12,590 |
|
|
|
15,890 |
|
|
|
17,855 |
|
Jimblebar, Australia8 |
|
|
85 |
|
|
|
62,580 |
|
|
|
67,381 |
|
|
|
73,111 |
|
Total Western Australia Iron Ore |
|
|
|
|
|
256,877 |
|
|
|
256,599 |
|
|
|
254,936 |
|
|
Samarco, Brazil5 |
|
|
50 |
|
|
|
7,840 |
|
|
|
6,254 |
|
|
|
4,748 |
|
Total iron ore |
|
|
|
|
|
264,717 |
|
|
|
262,853 |
|
|
|
259,684 |
|
|
Steelmaking coal |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Production (kt)9 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Goonyella Riverside, Australia |
|
|
50 |
|
|
|
6,253 |
|
|
|
5,837 |
|
|
|
6,434 |
|
Peak Downs, Australia |
|
|
50 |
|
|
|
4,838 |
|
|
|
4,574 |
|
|
|
4,217 |
|
Saraji, Australia |
|
|
50 |
|
|
|
3,952 |
|
|
|
4,073 |
|
|
|
3,287 |
|
Caval Ridge, Australia |
|
|
50 |
|
|
|
3,583 |
|
|
|
3,526 |
|
|
|
3,252 |
|
Blackwater, Australia10 |
|
|
50 |
|
|
|
0 |
|
|
|
0 |
|
|
|
3,572 |
|
Daunia, Australia10 |
|
|
50 |
|
|
|
0 |
|
|
|
0 |
|
|
|
1,513 |
|
Total BHP Mitsubishi Alliance (BMA) |
|
|
|
|
|
18,626 |
|
|
|
18,010 |
|
|
|
22,275 |
|
|
Total steelmaking coal |
|
|
|
|
|
18,626 |
|
|
|
18,010 |
|
|
|
22,275 |
|
|
Energy coal |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Production (kt) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
New South Wales Energy Coal, Australia |
|
|
100 |
|
|
|
16,361 |
|
|
|
15,036 |
|
|
|
15,368 |
|
Total energy coal |
|
|
|
|
|
16,361 |
|
|
|
15,036 |
|
|
|
15,368 |
|
|
Nickel |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Saleable production (kt) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Western Australia Nickel, Australia11, 12 |
|
|
100 |
|
|
|
0 |
|
|
|
30.2 |
|
|
|
81.6 |
|
Total |
|
|
|
|
|
0 |
|
|
|
30.2 |
|
|
|
81.6 |
|
|
Cobalt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Saleable production (t) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Western Australia Nickel, Australia11, 12 |
|
|
100 |
|
|
|
0 |
|
|
|
450 |
|
|
|
734 |
|
Total |
|
|
|
|
|
0 |
|
|
|
450 |
|
|
|
734 |
|
|
Throughout this table figures in italics indicate that this figure has been adjusted since it was previously reported.
191
Table of Contents
192
Table of Contents
Outlined below is a summary of our major projects.
> For more information refer to OFR 4 Our assets
Jansen Stage 1 (JS1) is achieving its critical path milestones set in the updated January 2026 cost and schedule estimate, and first production remains on track for mid-CY2027.
In June 2026, BHP completed a detailed review of cost and schedule estimates for Stage 2 of the Jansen potash project (JS2) and confirmed that the total investment estimate for JS2 increased from US$4.9 billion to US$6.9 billion (including contingencies) with first production estimated in late-FY2031.
Given the higher forecast capital intensity for the Jansen project (including Stages 1 and 2 and potential future expansions), we recognised an impairment charge of US$2.3 billion (before and after tax) in FY2026 in relation to our investment to date in the Jansen project.
Jansen is a world class asset and is expected to operate at the low end of the cost curve when fully ramped up.
Commodity |
Project and |
Project scope/capacity |
Estimated project |
First |
Progress |
Potash |
Jansen Stage 1 (Canada) 100% |
Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.15 Mtpa |
Approximately 8,400 (including contingencies) |
Mid-CY2027 |
Approved in August 2021; project is 84% complete |
Potash |
Jansen Stage 2 (Canada) 100% |
Development of additional mining districts, completion of the second shaft hoist infrastructure, expansion of processing facilities and addition of rail cars to facilitate production of an incremental 4.36 Mtpa |
Approximately 6,900 (including contingencies) |
Late-FY2031 |
Approved in October 2023; project is 16% complete |
Footnote
193
Table of Contents
Our mineral resources and mineral reserves presented in this annual report have been prepared in accordance with Subpart 1300 of Regulation S-K promulgated by the U.S. Securities and Exchange Commission (“S-K 1300”).
A mineral resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralisation, considering relevant factors such as cut-off grade, likely mining dimensions, location or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralisation drilled or sampled.
Our mineral resources have been classified as measured, indicated or inferred depending on the level of geological certainty and confidence in the estimates, as defined in Item 1300 of S-K 1300.
A mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Our mineral reserves have been classified as proven and probable depending on the mineral resource classification and level of confidence in the modifying factors, as defined in Item 1300 of S-K 1300.
To estimate mineral reserves, assumptions are required about a range of technical and economic factors, including quantities, qualities, production and processing techniques, recovery efficiency, production and transport costs, commodity supply and demand, commodity prices and exchange rates. Estimating the quantity and/or quality of mineral reserves requires the size, shape and depth of ore bodies to be determined by analysing geological data such as drilling samples and geophysical survey interpretations. Economic assumptions used to estimate reserves may change from period to period as additional technical, financial and operational data becomes available.
Our mineral resources and mineral reserves are constrained to tenure for which we hold the relevant mineral rights. Our mineral leases are of sufficient duration (or convey a legal right to renew for sufficient duration) to enable all reserves on the leased properties to be mined in accordance with current production schedules. Reserves may include areas where some additional approvals remain outstanding, however it is anticipated these approvals will be obtained within the timeframe required by the current life-of-mine schedules.
Presentation of mineral resources and mineral reserves
Mineral resources and mineral reserves are presented at the proportion attributable to our economic interest and represent estimates as at 30 June 2026. Mineral resources are presented exclusive of mineral reserves. The specific point of reference and commodity prices defining the mineral resources and mineral reserves estimates are provided in the footnotes associated with each of the mineral resources and mineral reserves tables. Quantities of mineral reserves and mineral resources are reported in million metric tonnes (Mt). Tonnes are reported as dry metric tonnes (unless otherwise stated). All tonnes and quality information have been rounded, and small differences may be present in the totals. Refer to the glossary for definitions of technical terms relating to mineral resources, mineral reserves, geology, mining or related matters and abbreviations.
Our mineral resources and mineral reserves presented in this annual report differ from the Mineral Resources and Ore Reserves we report in our home jurisdiction of Australia. The jurisdiction of Australia requires reporting in accordance with the Australian Securities Exchange (ASX) listing rules and the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves, December 2012 (the JORC Code).
A key difference in the estimation of our resources and reserves pursuant to the ASX listing rules and S-K 1300 are the economic inputs, commodity prices and cost assumptions. Estimates we report in accordance with the ASX listing rules are generally based on cost forecasts and internally generated, projected long-term commodity prices and current operating costs or costs used in studies for development projects.
S-K 1300 requires mineral resources and mineral reserves estimates to be based on reasonable and justifiable commodity prices selected by a qualified person. Further, the prices must provide a reasonable basis for establishing the prospects of economic extraction for mineral resources. Commodity price estimates included in this report are based on historical average commodity prices, which may differ from the price estimates used in the estimation of our resources and reserves pursuant to the ASX listing rules. Our mineral resources are based on the third-quartile average monthly prices over the three-year period from 1 July 2022 to 30 June 2025, unless otherwise stated. Our mineral reserves are based on the second-quartile average monthly prices over the three-year period from 1 July 2022 to 30 June 2025, unless otherwise stated. Exceptions are described in the footnotes associated with each of the mineral resources or mineral reserves tables.
194
Table of Contents
Unless otherwise stated, the estimates included in this report are based on average costs over the timeframe of 1 July 2022 to 30 June 2025 for production-stage properties or, for development-stage properties, costs are determined from first principles.
For non-operated properties in which we have an economic interest, the commodity prices and costs used are as the operator has advised.
The qualified persons consider that the use of historical prices and costs are appropriate to demonstrate economic viability of the mineral resources and mineral reserves. The prices are factual and the time interval is of sufficient duration to consider a range of price fluctuations. The commodity prices used to estimate the mineral resources and mineral reserves are included as footnotes to the mineral resources and mineral reserves tables.
Internal controls and assurance programs
We have internal controls in place to ensure our mineral resource and mineral reserve estimates are reasonable, reliable, and comply with industry standards and reporting requirements.
The governance for our estimation efforts is located at both the asset and the BHP Group level within our Resource Centre of Excellence, an internal assurance team independent of our qualified persons and BHP employees who are responsible for the estimations. The assets provide first-line assurance on estimates through peer review and validation processes. The Resource Centre of Excellence is responsible for assurance over the processes implemented by the assets as they relate to mineral resources and mineral reserves estimations and the compiling of the mineral resources and mineral reserves estimates to be reported in accordance with S-K 1300.
Our internal controls utilise management systems, including, but not limited to, formal quality assurance and quality control processes, standardised procedures, workflow processes, data security covering record keeping, chain of custody and data storage, supervision and management approval, reconciliations, internal and external reviews and audits.
Our internal requirements and standards provide the basis for the governance over the estimation and reporting of mineral resources and mineral reserves and provide technical guidance to all reporting assets. These internal requirements and standards are periodically reviewed and updated for alignment with industry practice and reporting regulations.
Our internal controls for exploration data, as they relate to mineral resources and mineral reserves estimations, are managed by our operating assets with assurance provided by the Resource Centre of Excellence. These controls include, but are not limited to:
Our internal controls for mineral resources and mineral reserves estimations include, but are not limited to:
195
Table of Contents
For non-operated properties in which we have an economic interest, the operator may have procedures and practices to support the estimates that differ from the procedures and practices that we apply as operator. From time to time, we may undertake independent reviews of estimates prepared by the operator of non-operated properties in which we have an economic interest.
Operating assets manage internal risk registers relating to uncertainties in the mineral resources and mineral reserves estimates to direct future work programs or estimation updates. These may include but are not limited to:
Further to assurance activities by the assets specifically relating to the estimation of mineral resources and mineral reserves, the Resource Centre of Excellence with subject matter experts have developed standards and guidelines across BHP for reviewing and documenting the information supporting our mineral resources and mineral reserves estimates, describing the methods used and verifying the reliability of such estimates. These activities are supported by the following controls:
The Resource Centre of Excellence also provides an annual update on assurance activities and changes relating to our mineral resources and mineral reserves estimation efforts to the Risk and Audit Committee (RAC) in connection with the RAC’s responsibility over the effectiveness of systems of internal control and risk management of BHP.
Inherent risks in the estimation of mineral resources and mineral reserves
The estimation of our mineral resources and mineral reserves are largely based on historical average prices of the commodities we produce or intend to produce, primarily iron ore, copper, coal and potash. These historical average prices, along with estimated annual cash flows from our future operations, estimated production schedules, estimated capital expenditure and operating costs, estimated site closure costs, estimated royalty and tax costs, valuation assumptions and interpretations of geological data obtained from drill holes and other exploration techniques used to estimate our mineral resources and mineral reserves may not necessarily
196
Table of Contents
be indicative of future results. The assumptions and interpretations used to estimate our mineral resources and mineral reserves may change from period to period, and, because additional geological data generated during the course of our operations may not be consistent with the data on which we based our mineral resources and mineral reserves, such estimates may change from period to period or may need to be revised. No assurance can be given that our mineral resources or mineral reserves presented in this report will be recovered at the grade, quality or quantities presented or at all.
There are numerous uncertainties inherent in the estimation of mineral resources and mineral reserves. Areas of uncertainty that may materially impact our mineral resources or mineral reserves estimates may include, but are not limited to: (i) changes to long-term commodity prices, external market factors, foreign exchange rates and other economic assumptions; (ii) changes in geological interpretations of mineral deposits and geological modelling, including estimation input parameters and techniques; (iii) changes to metallurgical or process recovery assumptions which adversely affect the volume, grade or qualities of our commodities produced (for example, processing that results in higher concentrations of deleterious elements that result in penalties) or other changes to mining method assumptions; (iv) changes to input assumptions used to derive the potentially mineable shapes for constraining the estimates; (v) changes to life of mine or production rate assumptions; (vi) changes to dilution and mining recovery assumptions; (vii) changes to cut-off grades applied to the estimates; (viii) changes to geotechnical data, structures, rock mass strength, stress regime, hydrogeological, hydrothermal or geothermal factors; (ix) changes to infrastructure supporting the operations of or access to the applicable mine site; (x) changes to mineral, surface, water or other natural resources rights; (xi) changes to royalty, taxes, environmental, permitting and social license assumptions in the jurisdictions in which we operate; and (xii) changes in capital or operating costs.
Additionally, the term “mineral resources” does not indicate recoverable proven and probable mineral reserves pursuant to S-K 1300. Estimates of mineral resources are subject to further exploration and evaluation of development and operating costs, grades, recoveries and other modifying factors, and, therefore, are subject to considerable uncertainty. Mineral resources do not meet the threshold for mineral reserve modifying factors, such as engineering, legal or economic feasibility, that would allow for the conversion to mineral reserves. Accordingly, no assurance can be given that our mineral resources not included in mineral reserves will become recoverable proven and probable mineral reserves.
Refer to “Forward-looking statements” and the risk factors set out in OFR 6 for other factors that may affect our mineral resources and mineral reserves estimates.
197
Table of Contents
6.1 Copper
Mineral resources
As at 30 June 2026
|
|
|
|
Measured Mineral Resources |
|
Indicated Mineral Resources |
|
Measured + Indicated Mineral Resources |
|
Inferred Mineral Resources |
||||||||||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
|
|
Qualities |
|
Tonnage |
|
|
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
||||||||||||||||||||
Copper1,2 |
|
method |
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
Chile |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Escondida3,4,5,6,7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxide |
|
OC |
|
15 |
|
0.38 |
|
– |
|
– |
|
– |
|
6.0 |
|
0.53 |
|
– |
|
– |
|
– |
|
21 |
|
0.42 |
|
– |
|
– |
|
– |
|
1.0 |
|
0.51 |
|
– |
|
– |
|
– |
Mixed |
|
OC |
|
– |
|
– |
|
– |
|
– |
|
– |
|
16 |
|
0.48 |
|
– |
|
– |
|
– |
|
16 |
|
0.48 |
|
– |
|
– |
|
– |
|
12 |
|
0.45 |
|
– |
|
– |
|
– |
Sulphide |
|
OC |
|
296 |
|
0.43 |
|
– |
|
– |
|
– |
|
1,420 |
|
0.54 |
|
– |
|
– |
|
– |
|
1,720 |
|
0.52 |
|
– |
|
– |
|
– |
|
5,510 |
|
0.53 |
|
– |
|
– |
|
– |
Escondida Total |
|
|
|
311 |
|
0.43 |
|
– |
|
– |
|
– |
|
1,450 |
|
0.54 |
|
– |
|
– |
|
– |
|
1,760 |
|
0.52 |
|
– |
|
– |
|
– |
|
5,520 |
|
0.53 |
|
– |
|
– |
|
– |
Pampa Norte8 |
|
OC |
|
459 |
|
0.42 |
|
200 |
|
– |
|
– |
|
604 |
|
0.44 |
|
130 |
|
– |
|
– |
|
1,060 |
|
0.43 |
|
160 |
|
– |
|
– |
|
678 |
|
0.43 |
|
90 |
|
– |
|
– |
Australia |
|
|
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
Olympic Dam9 |
|
UG |
|
491 |
|
1.37 |
|
0.38 |
|
0.55 |
|
2 |
|
292 |
|
1.46 |
|
0.38 |
|
0.53 |
|
3 |
|
783 |
|
1.40 |
|
0.38 |
|
0.54 |
|
2 |
|
210 |
|
1.44 |
|
0.42 |
|
0.63 |
|
3 |
|
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
Prominent Hill, |
|
UG |
|
90 |
|
0.92 |
|
0.42 |
|
3 |
|
– |
|
430 |
|
0.53 |
|
0.27 |
|
2 |
|
– |
|
520 |
|
0.60 |
|
0.29 |
|
2 |
|
– |
|
1,690 |
|
0.59 |
|
0.32 |
|
0.4 |
|
– |
Peru |
|
|
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
Antamina11 |
|
OC & UG |
|
33 |
|
0.66 |
|
0.27 |
|
9 |
|
140 |
|
81 |
|
0.83 |
|
0.54 |
|
11 |
|
180 |
|
114 |
|
0.78 |
|
0.46 |
|
10 |
|
170 |
|
424 |
|
0.97 |
|
0.44 |
|
10 |
|
180 |
Argentina and Chile |
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
ppmMo |
Vicuna12 |
|
OC |
|
324 |
|
0.33 |
|
0.25 |
|
1 |
|
– |
|
1,770 |
|
0.34 |
|
0.27 |
|
6 |
|
– |
|
2,090 |
|
0.34 |
|
0.27 |
|
5 |
|
– |
|
5,300 |
|
0.30 |
|
0.18 |
|
3 |
|
– |
USA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resolution13 |
|
UG |
|
– |
|
– |
|
– |
|
– |
|
– |
|
326 |
|
1.89 |
|
– |
|
4 |
|
420 |
|
326 |
|
1.89 |
|
– |
|
4 |
|
420 |
|
510 |
|
1.28 |
|
– |
|
3 |
|
310 |
Total copper |
|
|
|
1,700 |
|
0.71 |
|
– |
|
– |
|
– |
|
4,940 |
|
0.60 |
|
– |
|
– |
|
– |
|
6,650 |
|
0.63 |
|
– |
|
– |
|
– |
|
14,300 |
|
0.50 |
|
– |
|
– |
|
– |
|
198
Table of Contents
Mineral reserves
As at 30 June 2026
|
|
|
|
Proven Mineral Reserves |
|
Probable Mineral Reserves |
|
Total Mineral Reserves |
||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
||||||||||||||||||
Copper1 |
|
method |
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
|
Mt |
|
%Cu |
|
ppmMo |
|
|
|
|
Chile |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Escondida2,3,4,5,6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full SaL |
|
OC |
|
93 |
|
0.79 |
|
– |
|
– |
|
– |
|
13 |
|
0.68 |
|
– |
|
– |
|
– |
|
106 |
|
0.78 |
|
– |
|
– |
|
– |
Sulphide |
|
OC |
|
1,700 |
|
0.61 |
|
– |
|
– |
|
– |
|
688 |
|
0.54 |
|
– |
|
– |
|
– |
|
2,390 |
|
0.59 |
|
– |
|
– |
|
– |
Sulphide Leach |
|
OC |
|
649 |
|
0.39 |
|
– |
|
– |
|
– |
|
152 |
|
0.40 |
|
– |
|
– |
|
– |
|
801 |
|
0.39 |
|
– |
|
– |
|
– |
Escondida Total |
|
|
|
2,440 |
|
0.56 |
|
– |
|
– |
|
– |
|
853 |
|
0.52 |
|
– |
|
– |
|
– |
|
3,290 |
|
0.55 |
|
– |
|
– |
|
– |
Pampa Norte7 |
|
OC |
|
338 |
|
0.57 |
|
170 |
|
– |
|
– |
|
535 |
|
0.50 |
|
140 |
|
– |
|
– |
|
873 |
|
0.53 |
|
151 |
|
– |
|
– |
Australia |
|
|
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
|
Mt |
|
%Cu |
|
kg/tU3O8 |
|
g/tAu |
|
g/tAg |
Olympic Dam8 |
|
UG |
|
349 |
|
1.90 |
|
0.60 |
|
0.72 |
|
4 |
|
248 |
|
1.68 |
|
0.53 |
|
0.62 |
|
3 |
|
597 |
|
1.81 |
|
0.57 |
|
0.68 |
|
4 |
|
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
|
Mt |
|
%Cu |
|
g/tAu |
|
g/tAg |
|
|
Prominent Hill & |
|
UG |
|
29 |
|
1.05 |
|
0.59 |
|
2 |
|
– |
|
149 |
|
1.12 |
|
0.53 |
|
4 |
|
– |
|
178 |
|
1.11 |
|
0.54 |
|
4 |
|
– |
Peru |
|
|
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
|
Mt |
|
%Cu |
|
%Zn |
|
g/tAg |
|
ppmMo |
Antamina10 |
|
OC |
|
83 |
|
0.82 |
|
0.43 |
|
10 |
|
230 |
|
87 |
|
0.97 |
|
0.75 |
|
13 |
|
220 |
|
170 |
|
0.90 |
|
0.59 |
|
11 |
|
230 |
Total copper |
|
|
|
3,240 |
|
0.72 |
|
– |
|
– |
|
– |
|
1,870 |
|
0.74 |
|
– |
|
– |
|
– |
|
5,110 |
|
0.72 |
|
– |
|
– |
|
– |
|
and small differences may be present in the totals.
199
Table of Contents
6.2 Escondida individual property disclosure
6.2.1 Property description
Escondida copper mine (Escondida) is a production stage property operated by Minera Escondida Limitada (MEL) consisting of Escondida and Escondida Norte deposits located in the Atacama Desert of northern Chile, approximately 170 km south-east of Antofagasta at an elevation of approximately 3,100 m above sea level.
The location of the operations centred upon the two pits are listed and shown below.
6.2.2 Infrastructure
All required infrastructure supporting the current mine plan including roads, rail and port, power and water supply is in place. Access to the property is via a company maintained private road available for public use from Antofagasta. The city of Antofagasta is serviced by the regional airport.
The site infrastructure, centred on the two pits, includes three sulphide concentrator plants, two leaching process facilities, associated cathode production plant, tailings storage facility, along with support and service facilities.
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Table of Contents
The nearby Coloso port facility receives copper concentrate via a pipeline from the mine site and processes this to a dry concentrate ready for stockpiling and loading via a dedicated concentrate ship loading facility. Both concentrate pipeline and port facilities are owned and operated by MEL.
Additional third-party owned port infrastructure is located at Antofagasta, including rail, train unloading and ship loading facilities.
Escondida utilises an existing privately owned railway system to transport copper cathode product from site and consumables to site through the ports of Antofagasta and Mejillones. Escondida owns a minor rail spur connecting the mine site into the publicly owned railway.
The source of water for the mine, processing plants and supporting infrastructure is provided from two seawater desalination plants located at Punta Coloso, and pumping facilities to site via three pipelines. Water is recovered from the tailings dam for re-use in the concentrator plants.
From FY25 onwards, Escondida has an available energy consumption of 6.0 TWh/year, due to the extension of the Colbún contract, which delivers energy from 100% renewable sources, supporting our goals to reduce emissions.
The workforce is a combination of employees and contractors supporting the operations. Operational personnel reside on site in MEL accommodation and are sourced from Antofagasta or from other parts of Chile.
6.2.3 Mineral tenure
MEL holds a total of 764 mining concessions covering an area of 406,018 ha. There are 18 principal mining concessions that provide MEL with the right to explore and mine indefinitely, subject to payment of annual license fees. All leases were obtained through the legally established process in which judicial requests are presented to the Chilean state.
Lease name |
|
Registered tenement holder |
|
Expiry date |
|
Surface |
|
|
Annual rent |
|
||
Alexis 1/1424 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
7,059 |
|
|
|
705.9 |
|
Amelia 1/1049 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
5,235 |
|
|
|
523.5 |
|
Catita 1/376 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
1,732 |
|
|
|
173.2 |
|
Claudia 1/70 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
557 |
|
|
|
55.7 |
|
Colorado 501/977 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
2,385 |
|
|
|
238.5 |
|
Costa 1/1861 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
9,159 |
|
|
|
915.9 |
|
Donaldo 1/612 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
3,060 |
|
|
|
306.0 |
|
Ela 1/100 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
500 |
|
|
|
50.0 |
|
Gata 1 1/100 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
400 |
|
|
|
40.0 |
|
Gata 2 1/50 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
200 |
|
|
|
20.0 |
|
Guillermo 1/368 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
1,785 |
|
|
|
178.5 |
|
Hole 14 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
1 |
|
|
|
0.1 |
|
Naty 1/46 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
230 |
|
|
|
23.0 |
|
Paola 1/3000 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
15,000 |
|
|
|
1,500.0 |
|
Pista 1/22 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
22 |
|
|
|
2.2 |
|
Pistita 1/5 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
9 |
|
|
|
0.9 |
|
Ramón 1/640 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
3,200 |
|
|
|
320.0 |
|
Rola 1/1680 |
|
Minera Escondida Ltda. |
|
Permanent |
|
|
8,400 |
|
|
|
840.0 |
|
|
|
Total |
|
|
|
|
58,934 |
|
|
|
5,893.4 |
|
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Table of Contents
In addition to mining concessions, Chilean law also regulates, independently of mining concessions, the rights to the use of the land surface. MEL owns 155,000 ha of surface rights and these are also renewable on an annual basis. These rights are also obtained through legal process presented to the Chilean state and potentially to other third-party owners, including the Chilean “Consejo de Defensa del Estado” as required, MEL’s main surface rights cover operational activities such as pits, dumps, leach pads, plant and other infrastructure.
|
|
Unique surface rights identifier1 |
|
|
|
|
|
Surface |
|
|||||||
Infrastructure |
|
Folio |
|
Number |
|
|
Year |
|
Register |
|
Regional office |
|
area (ha) |
|
||
Pits, waste dumps, leach pads, |
|
619 V |
|
|
964 |
|
|
1984 |
|
Hipotecas y Gravámenes |
|
Bienes Raíces Antofagasta |
|
|
22,084 |
|
Energy transmission lines, |
|
1121 V |
|
1117 |
|
|
2018 |
|
Hipotecas y Gravámenes |
|
Bienes Raíces Antofagasta |
|
|
26,988 |
|
|
MEL also holds maritime concessions for the Coloso port facilities. These concessions are requested through submission of the proposed project to the Chilean Ministry of Defence and are awarded by legal decree.
6.2.4 Registrant interest
BHP does not hold any royalty in the Escondida property in addition to its economic interest of 57.5%.
6.2.5 Present condition of property
Escondida is a production-stage property actively operating two open cut mines, Escondida and Escondida Norte.
Continuous resource definition activities are ongoing to upgrade mineral resources understanding to support the mine plans and to develop mineral reserves. These activities include drilling and in-pit mapping. Geological understanding of the two deposits is supported by a total of approximately 2,732 km of drilling undertaken in a total of approximately 8,737 drill holes.
Surface mining is by drilling and blasting along with shovel/excavator loading and truck haulage from each of the two open pits. Extracted sulphide ore undergoes crushing prior to processing in one of three concentrators with concentrate piped to the Coloso port for drying. Lower grade sulphide ore is directly dumped onto leach pads and is processed by biological leaching. Oxide and transitional ores are processed using heap leaching. Leached products are converted to copper cathode then railed to Antofagasta port.
6.2.6 Physical condition
Construction commenced on the Escondida property in 1988 with first production in 1990. A number of expansion phases followed from 1993 onwards which included the development of additional infrastructure to increase production. Key milestones subsequent to first production in 1990 relating to the development of the operations were:
The operations undertake planned maintenance programs and implement scheduled replacement of mine fleet and infrastructure components that is intended to maintain the continued reliable operating of equipment, facilities and infrastructure to meet operational requirements.
6.2.7 Book value
The total book value for the Escondida property and its associated plant and equipment was US$13.9 billion as at 30 June 2026.
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Table of Contents
6.2.8 History of previous operations
Utah International Inc. (Utah) and Getty Oil Co. (Getty) commenced geochemical exploration in the region in 1978 which led to the discovery of Escondida deposit in 1981. In 1984 through corporate acquisitions, BHP acquired the Escondida property. Ownership changed in 1985 to a joint venture between BHP (57.5%), Rio Tinto Zinc (30%), JECO Corporation (10%) and World Bank (2.5%). The joint venture undertook all the subsequent exploration and development work to bring Escondida into operation in 1990. Current ownership, since 2010, is BHP (57.5%), Rio Tinto (30%), JECO Corporation (10%) and JECO 2 Limited (2.5%). Minera Escondida Limitada operates Escondida.
6.2.9 Significant encumbrances
Minera Escondida holds the licenses to operate pursuant to the current mine plan. BHP is not aware of any material encumbrances that would impact the current mineral resources or mineral reserves.
6.2.10 Geology and mineralisation
The Escondida and Escondida Norte copper deposits lie in the Escondida-Sierra de Varas shear lens of the Domeyko Fault System. The deposits are supergene-enriched copper porphyries with primary sulphide mineralisation associated with multiple phase intrusions of monzonite to granodiorite composition into host volcanics.
Primary mineralisation has undergone secondary supergene leaching and enrichment with associated local formation of copper oxide mineralisation, predominately brochantite. Supergene enrichment generated laterally-continuous and sub-horizontal high-grade sulphide mineralisation zones across the deposit, predominately chalcocite and covellite. The primary hypogene mineralisation, present in the deepest parts of the deposits is chalcopyrite with bornite.
6.2.11 Mineral resources and mineral reserves
Mineral resources and mineral reserves tables for Escondida reported by material type are included in section 6.1 above.
6.2.12 Changes to mineral resources and mineral reserves
Total mineral resources as at 30 June 2026 have not changed from the previous year, as at 30 June 2025 (7,280 Mt).
Total mineral reserves as at 30 June 2026 were 3,290 Mt, compared to 3,410 Mt as at 30 June 2025, a decrease of 4% (-120 Mt). The decrease in mineral reserves was primarily attributable to depletion from mining operations during the period.
6.2.13 Material assumptions and criteria
Material assumptions in the estimation of mineral resources are:
Material assumptions in the estimation of mineral reserves are:
Details of the material assumptions are described in the Technical Report Summary (effective 30 June 2022) incorporated as an exhibit to this Annual Report, sections 11 Mineral Resource Estimates, 12 Mineral Reserve Estimates, 13 Mining Methods, 14 Processing and Recovery Methods and 18 Capital and Operating Costs.
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Table of Contents
6.3 Iron ore
Mineral resources
As at 30 June 2026
|
|
|
|
Measured Mineral Resources |
|
Indicated Mineral Resources |
|
Measured + Indicated Mineral Resources |
|
Inferred Mineral Resources |
||||||||||||||||||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
||||||||||||||||||||||||||||||||
Iron ore1,2 |
|
method |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAIO3,4,5,6,7,8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mt Newman |
|
OC |
|
480 |
|
60.9 |
|
0.12 |
|
3.5 |
|
2.4 |
|
6.4 |
|
1,330 |
|
59.8 |
|
0.13 |
|
4.8 |
|
2.7 |
|
6.0 |
|
1,810 |
|
60.1 |
|
0.13 |
|
4.5 |
|
2.6 |
|
6.1 |
|
1,830 |
|
59.7 |
|
0.11 |
|
5.1 |
|
2.5 |
|
6.4 |
Goldsworthy |
|
OC |
|
180 |
|
57.9 |
|
0.11 |
|
6.5 |
|
3.0 |
|
7.0 |
|
380 |
|
59.6 |
|
0.07 |
|
5.3 |
|
2.9 |
|
5.8 |
|
560 |
|
59.1 |
|
0.08 |
|
5.6 |
|
2.9 |
|
6.2 |
|
3,630 |
|
60.2 |
|
0.10 |
|
4.8 |
|
2.3 |
|
6.1 |
Yandi |
|
OC |
|
320 |
|
58.6 |
|
0.12 |
|
4.6 |
|
2.4 |
|
8.6 |
|
1,270 |
|
59.4 |
|
0.14 |
|
4.5 |
|
2.3 |
|
7.5 |
|
1,590 |
|
59.2 |
|
0.14 |
|
4.5 |
|
2.3 |
|
7.7 |
|
1,830 |
|
58.0 |
|
0.13 |
|
5.4 |
|
2.6 |
|
8.2 |
Jimblebar |
|
OC |
|
330 |
|
59.3 |
|
0.14 |
|
5.6 |
|
3.1 |
|
5.8 |
|
240 |
|
56.4 |
|
0.11 |
|
8.1 |
|
3.5 |
|
6.7 |
|
570 |
|
58.1 |
|
0.13 |
|
6.7 |
|
3.3 |
|
6.2 |
|
110 |
|
57.9 |
|
0.09 |
|
6.6 |
|
3.2 |
|
6.4 |
BHP (Non-JV)3 |
|
OC |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
1,980 |
|
58.9 |
|
0.13 |
|
4.8 |
|
2.8 |
|
7.1 |
WAIO Total |
|
|
|
1,310 |
|
59.5 |
|
0.12 |
|
4.7 |
|
2.7 |
|
6.8 |
|
3,220 |
|
59.4 |
|
0.13 |
|
5.0 |
|
2.6 |
|
6.6 |
|
4,530 |
|
59.4 |
|
0.13 |
|
4.9 |
|
2.6 |
|
6.7 |
|
9,370 |
|
59.4 |
|
0.12 |
|
5.0 |
|
2.5 |
|
6.8 |
Brazil |
|
|
|
Mt |
|
%Fe |
|
%Pc |
|
|
|
|
|
|
|
Mt |
|
%Fe |
|
%Pc |
|
|
|
|
|
|
|
Mt |
|
%Fe |
|
%Pc |
|
|
|
|
|
|
|
Mt%Fe |
|
|
|
%Pc |
|
|
|
|
|
|
Samarco9 |
|
OC |
|
1,200 |
|
38.3 |
|
0.05 |
|
– |
|
– |
|
– |
|
750 |
|
36.8 |
|
0.05 |
|
– |
|
– |
|
– |
|
1,950 |
|
37.7 |
|
0.05 |
|
– |
|
– |
|
– |
|
210 |
|
37.4 |
|
0.06 |
|
– |
|
– |
|
– |
Total iron ore |
|
|
|
2,510 |
|
49.4 |
|
– |
|
– |
|
– |
|
– |
|
3,970 |
|
55.1 |
|
– |
|
– |
|
– |
|
– |
|
6,490 |
|
52.9 |
|
– |
|
– |
|
– |
|
– |
|
9,580 |
|
58.9 |
|
– |
|
– |
|
– |
|
– |
|
204
Table of Contents
Mineral reserves
As at 30 June 2026
|
|
|
|
Proven Mineral Reserves |
|
Probable Mineral Reserves |
|
Total Mineral Reserves |
||||||||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
||||||||||||||||||||||||
Iron ore1 |
|
method |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
|
Mt |
|
%Fe |
|
%P |
|
%SiO2 |
|
%Al2O3 |
|
%LOI |
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAIO2,3,4,5,6,7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mt Newman |
|
OC |
|
140 |
|
63.9 |
|
0.11 |
|
3.0 |
|
1.9 |
|
3.0 |
|
290 |
|
61.2 |
|
0.12 |
|
3.7 |
|
2.2 |
|
5.6 |
|
430 |
|
62.1 |
|
0.12 |
|
3.5 |
|
2.1 |
|
4.8 |
Goldsworthy |
|
OC |
|
950 |
|
61.8 |
|
0.09 |
|
3.5 |
|
1.8 |
|
5.9 |
|
600 |
|
60.6 |
|
0.08 |
|
4.5 |
|
2.0 |
|
6.2 |
|
1,550 |
|
61.3 |
|
0.09 |
|
3.9 |
|
1.8 |
|
6.0 |
Jimblebar |
|
OC |
|
790 |
|
61.3 |
|
0.11 |
|
4.0 |
|
2.5 |
|
5.1 |
|
600 |
|
60.3 |
|
0.12 |
|
4.5 |
|
2.9 |
|
5.7 |
|
1,380 |
|
60.9 |
|
0.12 |
|
4.2 |
|
2.7 |
|
5.3 |
WAIO Total |
|
|
|
1,880 |
|
61.7 |
|
0.10 |
|
3.7 |
|
2.1 |
|
5.3 |
|
1,490 |
|
60.6 |
|
0.11 |
|
4.3 |
|
2.4 |
|
5.9 |
|
3,370 |
|
61.2 |
|
0.10 |
|
4.0 |
|
2.2 |
|
5.6 |
Brazil |
|
|
|
Mt |
|
%Fe |
|
%Pc |
|
|
|
|
|
|
|
Mt |
|
%Fe |
|
%Pc |
|
|
|
|
|
|
|
Mt |
|
%Fe |
|
%Pc |
|
|
|
|
|
|
Samarco8 |
|
OC |
|
108 |
|
42.4 |
|
0.06 |
|
– |
|
– |
|
– |
|
291 |
|
42.8 |
|
0.05 |
|
– |
|
– |
|
– |
|
399 |
|
42.7 |
|
0.05 |
|
– |
|
– |
|
– |
Total iron ore |
|
|
|
1,990 |
|
60.7 |
|
– |
|
– |
|
– |
|
– |
|
1,780 |
|
57.7 |
|
– |
|
– |
|
– |
|
– |
|
3,770 |
|
59.1 |
|
– |
|
– |
|
– |
|
– |
|
205
Table of Contents
6.4 WAIO individual property disclosure
6.4.1 Property description
WAIO is a production-stage property with mines located in the Pilbara iron ore province in the north-west of Western Australia (WA), Australia and is centred on the regional town of Newman located approximately 1,000 km north of WA’s capital city Perth. The property is accessible from Perth by road via the Great Northern Highway and by air via regular commercial flights to Newman.
Mines, processing facilities, railways and port facilities comprising WAIO are spread over a geographical area of 350 km N-S and 250 km E-W between Port Hedland and Newman towns in the Pilbara region.
The geographic coordinates of the central points of the five mines are provided below and their locations shown below.
6.4.2 Infrastructure
Most of the infrastructure required for WAIO to support the current mining operations including roads, airport, rail and port, power and water supply is in place. These have been developed by BHP gradually over the last six decades in pace with staged expansion of production capacity.
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Table of Contents
WAIO’s mining hubs (Newman, Jimblebar, Mining Area C, South Flank and Yandi) and processing hubs (Newman, Jimblebar, Mining Area C and Yandi) are connected to its two ports (Nelson Point and Finucane Island) located at Port Hedland by a network of more than 1,000 km of rail infrastructure.
The mines have a network of BHP owned roads to service the mining operations and connect to the Great Northern Highway.
Water is sourced from ground water supplies for all WAIO mines, process plants and mine villages. These water supplies are drawn from BHP managed bore fields around mine sites established by WAIO under license for its operations and mine villages. Port Hedland operations are supplied with water under contract from the municipal provider, sourced from nearby coastal aquifers.
WAIO has a natural gas-fired power plant (Yarnima Power Station, in Newman town), with an installed generator capacity for 190 megawatts. The plant supplies the entire power requirement for all its mining, processing facilities and mine villages. Power consumed for WAIO’s port operations at Port Hedland is purchased via a power purchase agreement with APA Energy (formerly Alinta Energy), a large energy supplier in Australia.
BHP has set up its own accommodation villages at the mines to accommodate its fly-in-fly-out (FIFO) personnel. In addition to the commercial airport at Newman, BHP has established private airports at mine sites and operates regular charter flights from Perth directly to transport its FIFO workforce.
WAIO relies mainly on FIFO workforce sourced primarily from within Western Australia (Perth and other regional towns) and to a lesser extent from other states in Australia.
6.4.3 Mineral tenure
BHP and its joint venture partners hold mineral rights in 65 mineral titles covering a total area of approximately 4,543 km2. Of this, approximately 2,861 km2 is contributed by eight mineral titles held pursuant to five State Agreement Acts of the state of Western Australia and the remaining area (1,682 km2) by 57 mineral titles held pursuant to the Mining Act, 1978 (Western Australia).
The five State Agreement Acts (incorporating agreements between BHP along with its joint venture partners and the state of Western Australia) were enacted by the parliament of Western Australia and provide WAIO long-term tenure security for mineral development. These acts and details of mining titles held pursuant to each State Agreement are provided in the list and table below.
Lease |
|
Registered tenement holders1 / |
|
Grant |
|
Expiry |
|
Legal area |
|
|
Rent and |
|
||
M263SA |
|
BHP (85%), Itochu (8%), Mitsui (7%) |
|
22/01/1989 |
|
21/09/2035 |
|
|
143.23 |
|
|
|
433,372.43 |
|
M266SA |
|
BHPIOJ (100%) (3) |
|
11/10/1988 |
|
10/10/2030 |
|
|
542.84 |
|
|
|
140,862.80 |
|
M270SA |
|
BHP (85%), Itochu (8%), Mitsui (7%) |
|
4/09/1991 |
|
3/09/2033 |
|
|
303.44 |
|
|
|
2,530,940.65 |
|
ML235SA |
|
BHP (85%), Itochu (8%), Mitsui (7%) |
|
5/08/1965 |
|
4/08/2028 |
|
|
41.42 |
|
|
|
5,611.59 |
|
ML244SA |
|
BHP (85%), M-Itochu (10%), Itochu (5%) |
|
7/04/1967 |
|
6/04/2030 |
|
|
789.34 |
|
|
|
132,663.35 |
|
ML249SA |
|
BHP (85%), Itochu (8%), Mitsui (7%) |
|
8/05/1974 |
|
4/08/2028 |
|
|
306.47 |
|
|
|
43,069.39 |
|
ML251SA |
|
BHP (85%), Itochu (8%), Mitsui (7%) |
|
22/09/1972 |
|
21/09/2035 |
|
|
171.30 |
|
|
|
86,168.00 |
|
ML281SA |
|
BHP (85%), Itochu (8%), Mitsui (7%) |
|
26/04/2002 |
|
4/08/2028 |
|
|
563.35 |
|
|
|
465,725.97 |
|
207
Table of Contents
As at 30 June 2026, all of WAIO’s mineral reserves and 86% of mineral resources (exclusive of mineral reserves) were located on the eight mineral titles held pursuant to the five State Agreement Acts. The remaining 14% of mineral resources are located across the 57 tenements held pursuant to the Mining Act. All mineral development and extraction activities are currently undertaken only within tenements held pursuant to the State Agreement Acts. Activities within the Mining Act tenements are currently limited to exploration work aimed at defining mineral resources.
6.4.4 Registrant interest
In addition to being the majority owner of the property, BHP holds one royalty stream which entitles BHP to earn royalty income in relation to ore produced only from Mining Area C and South Flank. This royalty stream contributed 0.1% of free-on-board (FOB) revenue in FY2026.
6.4.5 Present condition of property
WAIO is a production-stage property with a large base of mineral reserves and mineral resources.
Exploration activities have been ongoing on the property since the 1950s. Drilling is the primary method for exploration and sampling. From the 1950s to December 2025, WAIO had completed over 158,000 exploration drill holes for a total of 12,600 km, including 9,339 km reverse circulation and 848 km diamond core drilling, across its tenements for the purpose of resource identification and definition, resource characterization, modelling of geotechnical and hydrogeological parameters, and geometallurgical test work. In recent years, between 300 to 500 km of drilling has been carried out annually.
The exploration activities have occurred in areas adjacent to operating mines (brownfield areas) to replenish mineral resources depleted by mine production. In addition, some exploration activities have been completed in strategic greenfield areas to provide optionality for future development.
All mines are open cut, with ore extracted using excavators and trucks. After extraction, the ore is crushed before train loading and transporting to the port for direct shipping.
6.4.6 Physical condition
Production on the WAIO property started in the late 1960s from one mine. Currently there are five operating mining hubs, Newman, Yandi, Mining Area C, Jimblebar and South Flank, started in 1969, 1992, 2003, 2013 and 2021, respectively.
The Yandi mine started its end-of-life production ramp down, closure and decommissioning of associated infrastructure commenced in July 2021. The decommissioning is ongoing and once Yandi mine is fully exhausted, parts of the Yandi processing facilities are likely to be used to process run-of-mine feed from nearby Brockman deposits.
The operations undertake planned maintenance programs and implement scheduled replacement of equipment and infrastructure that is required to maintain the continued reliable operation of the mines and supporting services such as power, port facilities, water supplies and rail.
Modernisation of rail operations and automation of haul trucks are currently in progress.
6.4.7 Book value
The total book value of the WAIO property and its associated plant and equipment was US$16.4 billion on equity ownership basis, as at 30 June 2026.
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Table of Contents
6.4.8 History of previous operations
Since the 1950s, BHP has been continuously exploring, developing and extracting iron ore at gradually increasing rates of production to keep pace with global sea-borne market demands.
In 1966, BHP’s joint venture partner Goldsworthy Mining Limited (GML) was the first company to develop an iron ore mine in the Pilbara. The mine, Mount Goldsworthy ceased operations in 1982 with production entirely for export purposes. BHP was initially a joint venture partner in GML and acquired full ownership of GML in 1990.
In 1969, BHP developed the Mount Whaleback deposit at Newman entirely for export purposes as a part of the Mount Newman Mining Joint Venture (NJV). The majority ownership of NJV was acquired by BHP in 1986.
In 1991, BHP developed the Yandi deposit and in 1992 acquired the Jimblebar deposits. In the 1990s, subleases tied to ore purchase agreements by a Chinese consortium over part of the Jimblebar deposits and by South Korea’s POSCO for C Deposit at Mining Area C increased BHP’s annual production.
Since the 1990s to present day, BHP’s production has come from five mining hubs, Newman, Jimblebar, Mining Area C, South Flank and Yandi. South Flank commenced production in May 2021. Yandi production has decreased significantly in recent years, and closure and decommissioning of infrastructure are in progress.
6.4.9 Significant encumbrances
BHP is not aware of any significant encumbrances to the property, including current and future permitting requirements and associated timelines or permit conditions.
6.4.10 Geology and mineralisation
The WAIO iron ore deposits are hosted in the late Archaean to early Proterozoic-age banded iron formations of the Hamersley Group in the Pilbara region of Western Australia. The two main hosts for bedrock mineralisation in the Hamersley Group are the Brockman and Marra Mamba iron formations.
Brockman Iron Formation tends to have higher phosphorous and alumina concentration (both deleterious elements) with a lower loss-on ignition than the Marra Mamba Iron Formation. These compositional differences are one of the reasons for subdividing the ore by stratigraphy. The bedded iron deposits are further subdivided in terms of their genesis and mineralogy into hypogene martite-microplaty hematite and supergene martite-geothite ores.
Widespread detrital sequences occur adjacent to the bedded iron deposits in the form of colluvial-alluvial fans. The detrital deposits economic value depends on the size and concentration and are mostly exploited when associated with bedrock deposits.
In addition, mineralisation is found in fluviatile channel iron deposits of the late Eocene to early Miocene age. The iron content in the channel iron deposits tends to be lower than the bedrock mineralisation, however, they tend to be lower in phosphorous and alumina.
The primary iron bearing minerals are hematite and goethite which vary in concentration within the deposits.
Mineralisation extends over strike lengths of 5-10 km for most deposits, however, may extend for up to 50-60 km. The width of mineralisation at surface typically ranges from about 200 m up to 1500 m. Mineralisation extends to depths of between 100 m and 400 m and deposits typically have some form of surface expression.
6.4.11 Mineral resources and mineral reserves
Mineral resources and mineral reserves tables for WAIO reported by joint venture are included in section 6.3.
6.4.12 Changes to mineral resources and mineral reserves
Total mineral resources as at 30 June 2026 were 13,900 Mt compared to 13,660 Mt as at 30 June 2025, an increase of approximately 2% (240 Mt). The increase in mineral resources was due to additional resources defined at the Newman JV, supported by drilling.
Total mineral reserves as at 30 June 2026 were 3,370 Mt compared to 3,520 Mt as at 30 June 2025, a decrease of approximately 4% (-150 Mt). The decrease in mineral reserves was primarily due to depletion from mining operations, partially offset by the inclusion of Ministers North mineral reserves in the Jimblebar JV.
209
Table of Contents
6.4.13 Material assumptions and criteria
Mineral resources estimated for WAIO’s active mines and undeveloped deposits consider the following assumptions:
Mineral reserves are estimated for WAIO’s active mining areas and consider the following assumptions:
Details of the material assumptions are described in the Technical Report Summary (effective 30 June 2026) attached as an exhibit to this Annual Report, sections 11 Mineral Resource Estimates, 12 Mineral Reserve Estimates, 13 Mining Methods, 14 Processing and Recovery Methods and 18 Capital and Operating Costs.
210
Table of Contents
6.5 Steelmaking coal
Coal resources1
As at 30 June 2026
|
|
|
|
Measured Coal Resources |
|
Indicated Coal Resources |
|
Measured + Indicated Coal Resources |
|
Inferred Coal Resources |
|
||||||||||||||||||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
||||||||||||||||||||||||||||||||
Steelmaking coal2,3 |
|
method |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
||||||||||||||||
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
BMA4,5,6 |
|
OC & UG |
|
|
928 |
|
|
24.2 |
|
|
18.2 |
|
|
0.61 |
|
|
284 |
|
|
25.8 |
|
|
17.2 |
|
|
0.73 |
|
|
1,210 |
|
|
24.6 |
|
|
17.9 |
|
|
0.63 |
|
|
214 |
|
|
26.3 |
|
|
18.3 |
|
|
0.81 |
|
Total steelmaking coal |
|
|
|
|
928 |
|
|
24.2 |
|
|
18.2 |
|
|
0.61 |
|
|
284 |
|
|
25.8 |
|
|
17.2 |
|
|
0.73 |
|
|
1,210 |
|
|
24.6 |
|
|
17.9 |
|
|
0.63 |
|
|
214 |
|
|
26.3 |
|
|
18.3 |
|
|
0.81 |
|
|
Coal reserves1
As at 30 June 2026
|
|
|
|
Proven |
|
Probable |
|
Total |
|
Proven Marketable Coal Reserves |
|
Probable Marketable Coal Reserves |
|
Total Marketable Coal Reserves |
|
|||||||||||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Tonnage |
|
Tonnage |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
|||||||||||||||||||||||||||
Steelmaking coal2 |
|
Method |
|
Mt |
|
Mt |
|
Mt |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
|||||||||||||||
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
BMA3,4,5,6 |
|
OC & UG |
|
|
706 |
|
|
85 |
|
|
791 |
|
|
441 |
|
|
10.1 |
|
|
20.7 |
|
|
0.59 |
|
|
47 |
|
|
11.3 |
|
|
21.2 |
|
|
0.72 |
|
|
488 |
|
|
10.2 |
|
|
20.8 |
|
|
0.60 |
|
Total steelmaking coal |
|
|
|
|
706 |
|
|
85 |
|
|
791 |
|
|
441 |
|
|
10.1 |
|
|
20.7 |
|
|
0.59 |
|
|
47 |
|
|
11.3 |
|
|
21.2 |
|
|
0.72 |
|
|
488 |
|
|
10.2 |
|
|
20.8 |
|
|
0.60 |
|
|
211
Table of Contents
6.6 Energy coal
Coal resources1
As at 30 June 2026
|
|
|
Measured Coal Resources |
Indicated Coal Resources |
|
Measured + Indicated Coal Resources |
|
Inferred Coal Resources |
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
Mining |
Tonnage |
Qualities |
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
||||||||||||||||||||||||||||||||||||
Energy coal2,3 |
|
method |
Mt |
%Ash |
%VM |
%S |
Kcal/kgCV |
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Kcal/kgCV |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Kcal/kgCV |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Kcal/kgCV |
|
|||||||||||||||
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
NSWEC4,5,6,7 |
|
OC |
– |
– |
– |
– |
– |
|
7.8 |
|
|
18.5 |
|
|
30.0 |
|
|
0.55 |
|
|
6,260 |
|
|
7.8 |
|
|
18.5 |
|
|
30.0 |
|
|
0.55 |
|
|
6,260 |
|
|
3.7 |
|
|
19.3 |
|
|
28.3 |
|
|
0.50 |
|
|
6,210 |
|
Total energy coal |
|
|
– |
– |
– |
– |
– |
|
7.8 |
|
|
18.5 |
|
|
30.0 |
|
|
0.55 |
|
|
6,260 |
|
|
7.8 |
|
|
18.5 |
|
|
30.0 |
|
|
0.55 |
|
|
6,260 |
|
|
3.7 |
|
|
19.3 |
|
|
28.3 |
|
|
0.50 |
|
|
6,210 |
|
|
Coal reserves1
As at 30 June 2026
|
|
|
Proven |
|
Probable |
|
Total |
|
Proven Marketable Coal Reserves |
|
Probable Marketable Coal Reserves |
|
Total Marketable Coal Reserves |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
Mining |
Tonnage |
|
Tonnage |
|
Tonnage |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
||||||||||||||||||||||||||||||||||||
Energy coal2 |
|
method |
Mt |
|
Mt |
|
Mt |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Kcal/kgCV |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Kcal/kgCV |
|
Mt |
|
%Ash |
|
%VM |
|
%S |
|
Kcal/kgCV |
|
||||||||||||||||||
Australia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
NSWEC3,4,5,6 |
|
OC |
|
62 |
|
|
16 |
|
|
78 |
|
|
49 |
|
|
16.0 |
|
|
30.2 |
|
|
0.53 |
|
|
5,820 |
|
|
13 |
|
|
16.3 |
|
|
29.5 |
|
|
0.52 |
|
|
5,730 |
|
|
62 |
|
|
16.1 |
|
|
30.1 |
|
|
0.53 |
|
|
5,810 |
|
Total energy coal |
|
|
|
62 |
|
|
16 |
|
|
78 |
|
|
49 |
|
|
16.0 |
|
|
30.2 |
|
|
0.53 |
|
|
5,820 |
|
|
13 |
|
|
16.3 |
|
|
29.5 |
|
|
0.52 |
|
|
5,730 |
|
|
62 |
|
|
16.1 |
|
|
30.1 |
|
|
0.53 |
|
|
5,810 |
|
|
212
Table of Contents
6.7 Potash
Mineral resources
As at 30 June 2026
|
|
|
|
Measured Mineral Resources |
|
Indicated Mineral Resources |
|
Measured + Indicated Mineral Resources |
|
Inferred Mineral Resources |
||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
Qualities |
||||||||||||||||
Potash1,2 |
|
method |
|
Mt |
|
%K2O |
|
%Insol. |
|
%MgO |
|
Mt |
|
%K2O |
|
%Insol. |
|
%MgO |
|
Mt |
|
%K2O |
|
%Insol. |
|
%MgO |
|
Mt |
|
%K2O |
|
%Insol. |
|
%MgO |
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jansen3,4,5,6,7,8,9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LPL |
|
UG |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
1,280 |
|
25.6 |
|
7.7 |
|
0.08 |
Total potash |
|
|
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
– |
|
1,280 |
|
25.6 |
|
7.7 |
|
0.08 |
|
213
Table of Contents
Mineral reserves
As at 30 June 2026
|
|
|
|
Proven Mineral Reserves |
|
Probable Mineral Reserves |
|
|
Total Mineral Reserves |
|
||||||||||||||||||||||||||||||||
|
|
Mining |
|
Tonnage |
|
Qualities |
|
Tonnage |
|
|
Qualities |
|
|
Tonnage |
|
|
Qualities |
|
||||||||||||||||||||||||
Potash1 |
|
method |
|
Mt |
|
%K2O |
|
%Insol. |
|
%MgO |
|
Mt |
|
|
%K2O |
|
|
%Insol. |
|
|
%MgO |
|
|
Mt |
|
|
%K2O |
|
|
%Insol. |
|
|
%MgO |
|
||||||||
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Jansen2,3,4,5,6,7,8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
LPL |
|
UG |
|
– |
|
– |
|
– |
|
– |
|
|
1,070 |
|
|
|
24.9 |
|
|
|
7.5 |
|
|
|
0.10 |
|
|
|
1,070 |
|
|
|
24.9 |
|
|
|
7.5 |
|
|
|
0.10 |
|
Total potash |
|
|
|
– |
|
– |
|
– |
|
– |
|
|
1,070 |
|
|
|
24.9 |
|
|
|
7.5 |
|
|
|
0.10 |
|
|
|
1,070 |
|
|
|
24.9 |
|
|
|
7.5 |
|
|
|
0.10 |
|
|
214
Table of Contents
6.8 Jansen individual property disclosure
6.8.1 Property description
The Jansen potash project is located in the rural municipalities of Leroy and Prairie Rose in the province of Saskatchewan, Canada, approximately 150 kilometres east of the city of Saskatoon.
The geographic coordinate location for the service shaft is Latitude 51°53'56.62"N and Longitude 104°42'53.44"W.
6.8.2 Infrastructure
The site is accessed by road from provincial Highway 16 approximately 12 kilometres to the south and Highway 5 approximately 32 kilometres to the north. Access to the mine site from these highways uses upgraded secondary and/or primary roads from the village of Jansen to the south and the town of Leroy to the north. The nearest commercial airport is in the city of Saskatoon.
Communications, power, water, and natural gas are provided by provincial crown corporations. The pipeline connection to the Saskatoon South East Water Supply system for Jansen’s primary water use is complete. The natural gas supply pipeline has been installed. The permanent 230 kV power supply has been constructed and commissioned.
The Jansen site has two mine shafts, the service shaft and the production shaft. The service shaft permanent headframe, hoist houses, and collar house are constructed. The production shaft sinking headframe and ground mounted drum winders are installed and in use.
215
Table of Contents
A third-party rail provider is expected to transport the potash produced from the Jansen site to the port terminal, located in Delta, British Columbia, Canada, which is owned and operated by a third-party provider. The port facility will unload the railcars, store the product, and load shipping vessels.
The processing facilities to be constructed at Jansen include:
Employees of Jansen mine are anticipated to reside in several existing communities located in the area.
6.8.3 Mineral tenure
The total area of the Jansen project lease is approximately 1,156 km2. Most mineral rights parcels are owned by the Saskatchewan Crown, the remaining mineral parcels are owned by individuals or corporations. To gain access to the potash within mineral parcels owned by individuals or corporations (‘freehold mineral lease’), BHP must either purchase the mineral parcels or negotiate mineral lease agreement(s) with the registered owner(s) of the mineral parcel(s). The freehold mineral leases secured by BHP have a term of 21 years and are renewable at the option of BHP for successive terms of 21 years. An annual rental payment of CA$4.94/hectare is also paid to keep these leases in good standing.
All surface lands that form part of the Jansen mine operations footprint have been acquired by BHP Canada.
On 23 November 2012, the Government of Saskatchewan and BHP Canada entered into Potash Lease Special Agreement KLSA 011. This agreement gives BHP Canada the exclusive right to search for, dig, work, mine, extract, recover, process, and carry away subsurface minerals under or within all of the Saskatchewan Crown mineral parcels of KLSA 011. The lease pertains to two categories of lands, ‘KLSA 011 Core Lands’ comprising primarily the mineral reserves and ‘KLSA 011 Expansion Lands’, and additional area outside mineral reserves that includes the primarily inferred resources.
During the first three years of KLSA 011, BHP was required to complete CA$12 million of work on the lease area. This work commitment has been met.
Lease description |
|
Area |
|
|
% |
|
|
Expiry date |
|
Annual lease payment1 |
|
|||
Jansen project total lease area |
|
|
115,425 |
|
|
|
100 |
|
|
|
|
|
|
|
KLSA 011 Core lands |
|
|
69,749 |
|
|
|
60 |
|
|
22/11/2033 |
|
|
1,056,623.66 |
|
KLSA 011 Expansion lands |
|
|
45,408 |
|
|
|
39 |
|
|
22/11/2033 |
|
|
|
|
Total core & expansion mineral rights |
|
|
115,157 |
|
|
|
99 |
|
|
|
|
|
|
|
Freehold Mineral Lease Lands |
|
~300 |
|
|
<1 |
|
|
|
|
|
|
|||
6.8.4 Registrant interest
BHP does not hold any royalty in Jansen in addition to its economic interest of 100%.
6.8.5 Present condition of property
Jansen is currently in construction phase. A substantial portion of the site grading, drainage and road network is in place. The site is connected to natural gas supply, permanent electrical power, communication fibre and non-potable water. A 2,600 person construction camp has been constructed and is in use. Water treatment facilities, concrete batch plant, temporary site buildings and environmental monitoring equipment has been installed. The service shaft and the production shaft have been excavated and hydrostatically lined. The service shaft permanent headframe, hoist houses, and collar house are constructed. The production shaft sinking headframe and ground mounted drum winders are installed and in use.
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Table of Contents
6.8.6 Physical condition
Jansen is a development stage property that is in the process of construction. Some permanent infrastructure is in place including site facilities, service and production shafts, along with temporary construction infrastructure. BHP has a construction program to complete all the necessary requirements such as installation of processing, underground development, mining equipment, rail and port facilities to enable the mine to commence operations.
6.8.7 Book value
The total book value for the Jansen property and its associated plant and equipment was US$8.6 billion as at 30 June 2026.
6.8.8 History of previous operations
There is no history of previous operations on the Jansen project area.
6.8.9 Significant encumbrances
There have been no significant encumbrances to the property identified as of the date of this report. Federal, provincial, municipal permits and approval for construction and operation have been received. All material permits that have been applied for to-date have been received.
6.8.10 Geology and mineralisation
The Jansen potash deposit is located within the Williston Basin, a large, intracratonic, and horizontally bedded sedimentary basin that has not been subject to structural deformation, either faulting or folding.
The potash beds are hosted within the Prairie Evaporite Formation, in regionally extensive, horizontal layers created by the repeated, cyclical evaporation of a shallow, inland sea during the Devonian period. The potash deposit extends from east to west in the province and is relatively uniform, except where there are anomalies due to local alterations or disruption of the potash beds.
In the Jansen area, the potash is at a depth of 800 to 1,050 metres. Two potash members are present, the Patience Lake and Belle Plaine members. The Patience Lake Member is further subdivided into Upper Patience Lake and Lower Patience Lake sub-members. The Lower Patience Lake sub-member is the potash horizon targeted for Jansen. The Lower Patience Lake sub-member is composed of sylvite (KCl), halite (NaCl) with variable amounts of disseminated insolubles and clay seams. Carnallite (KCl.MgCl2.6H2O), a mineral which can impact processing and ground stability, occasionally occurs in place of sylvite within the potash layer. Large carnallite zones can typically be mapped using 3D seismic survey information.
The Dawson Bay Formation includes the Second Red Beds Member and the Dawson Bay carbonate members which overlay the Prairie Evaporite Formation. The Dawson Bay Formation in the Jansen area is expected to have low permeability or relatively low inflow deliverability potential.
Approximately 400 metres below the Prairie Evaporite Formation are the Cambrian-Ordovician Winnipeg and Deadwood formations. Sediments of these formations were deposited in near shore, shallow water marine environments on top of the Precambrian rocks. The coarse to fine sands of the formations, host a vast deep saline aquifer that is used for brine disposal.
6.8.11 Mineral resources and mineral reserves
Mineral resources and mineral reserves tables for Jansen reported by material type are included in section 6.7.
6.8.12 Changes to mineral resources and mineral reserves
Total mineral resources as at 30 June 2026 has not changed from previous year, as at 30 June 2025 (1,280 Mt).
Total mineral reserves as at 30 June 2026 has not changed from previous year, as at 30 June 2025 (1,070 Mt).
217
Table of Contents
6.8.13 Material assumptions and criteria
The key assumptions in the estimation of mineral resources are summarised as:
The key assumptions in the estimation of mineral reserves are summarised as:
Details of the material assumptions are described in the Technical Report Summary (effective 30 June 2026), attached as an exhibit to this Annual Report, sections 11 Mineral Resource Estimates, 12 Mineral Reserve Estimates, 13 Mining Methods, 14 Processing and Recovery Methods and 18 Capital and Operating Costs.
218
Table of Contents
Table 1 – Workforce data and diversity by region FY20261,2
|
|
Number and |
|
|
Average number |
|
|
Employees by gender number and % |
|
|||||||||||||||||||||||
Region |
|
Employees |
|
|
Employees % |
|
|
Contractors |
|
|
Contractors |
|
|
Male |
|
|
Male % |
|
|
Female |
|
|
Female % |
|
||||||||
Asia |
|
|
1,620 |
|
|
|
4.0 |
|
|
|
3,357 |
|
|
|
7.7 |
|
|
|
612 |
|
|
|
37.8 |
|
|
|
1,008 |
|
|
|
62.2 |
|
Australia |
|
|
30,684 |
|
|
|
75.1 |
|
|
|
13,570 |
|
|
|
31.2 |
|
|
|
18,679 |
|
|
|
60.9 |
|
|
|
12,005 |
|
|
|
39.1 |
|
Europe |
|
|
94 |
|
|
|
0.2 |
|
|
|
6 |
|
|
<0.1 |
|
|
|
40 |
|
|
|
43 |
|
|
|
54 |
|
|
|
57.5 |
|
|
North America |
|
|
867 |
|
|
|
2.1 |
|
|
|
3,094 |
|
|
|
7.1 |
|
|
|
501 |
|
|
|
57.8 |
|
|
|
366 |
|
|
|
42.2 |
|
South America |
|
|
7,598 |
|
|
|
18.6 |
|
|
|
23,419 |
|
|
|
53.9 |
|
|
|
4,081 |
|
|
|
53.7 |
|
|
|
3,517 |
|
|
|
46.3 |
|
Total |
|
|
40,863 |
|
|
|
100 |
|
|
|
43,446 |
|
|
|
100 |
|
|
|
23,913 |
|
|
|
58.5 |
|
|
|
16,950 |
|
|
|
41.5 |
|
Table 2 – Employees by category and diversity for FY20261,2
|
|
|
|
|
|
|
|
Gender |
|
|
Region |
|
||||||||||||||||||||||||
Employment category |
|
Total |
|
|
% of |
|
|
Male |
|
|
Female |
|
|
Asia |
|
|
Australia |
|
|
Europe |
|
|
North |
|
|
South |
|
|||||||||
Full time |
|
|
38,833 |
|
|
|
95 |
|
|
|
23,182 |
|
|
|
15,651 |
|
|
|
1,592 |
|
|
|
28,794 |
|
|
|
88 |
|
|
|
833 |
|
|
|
7,526 |
|
Part time |
|
|
1,405 |
|
|
|
3.4 |
|
|
|
526 |
|
|
|
879 |
|
|
|
3 |
|
|
|
1,396 |
|
|
|
2 |
|
|
|
4 |
|
|
|
0 |
|
Fixed term full time |
|
|
434 |
|
|
|
1.1 |
|
|
|
153 |
|
|
|
281 |
|
|
|
25 |
|
|
|
304 |
|
|
|
4 |
|
|
|
29 |
|
|
|
72 |
|
Fixed term part time |
|
|
42 |
|
|
|
0.1 |
|
|
|
16 |
|
|
|
26 |
|
|
|
0 |
|
|
|
41 |
|
|
|
0 |
|
|
|
1 |
|
|
|
0 |
|
Casual |
|
|
149 |
|
|
|
0.4 |
|
|
|
36 |
|
|
|
113 |
|
|
|
0 |
|
|
|
149 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
Total |
|
|
40,863 |
|
|
|
100 |
|
|
|
23,913 |
|
|
|
16,950 |
|
|
|
1,620 |
|
|
|
30,684 |
|
|
|
94 |
|
|
|
867 |
|
|
|
7,598 |
|
219
Table of Contents
Table 3 – Employees by category and diversity for FY20261,2
|
|
|
|
|
Gender |
|
|
Gender % |
|
|
Age group % |
|
||||||||||||||||||||||||
Category |
|
Total |
|
|
Male |
|
|
Female |
|
|
Male % |
|
|
Female % |
|
|
Under 30 |
|
|
30–39 |
|
|
40–49 |
|
|
50+ |
|
|||||||||
Senior leaders |
|
|
242 |
|
|
|
147 |
|
|
|
95 |
|
|
|
60.7 |
|
|
|
39.3 |
|
|
|
0.4 |
|
|
|
7 |
|
|
|
48.4 |
|
|
|
44.2 |
|
Managers |
|
|
1,382 |
|
|
|
798 |
|
|
|
584 |
|
|
|
57.7 |
|
|
|
42.3 |
|
|
|
0.1 |
|
|
|
22.3 |
|
|
|
51.4 |
|
|
|
26.2 |
|
Supervisory and professional |
|
|
17,817 |
|
|
|
9,831 |
|
|
|
7,986 |
|
|
|
55.2 |
|
|
|
44.8 |
|
|
|
7.9 |
|
|
|
38 |
|
|
|
35 |
|
|
|
19.1 |
|
Operators and general support |
|
|
21,422 |
|
|
|
13,137 |
|
|
|
8,285 |
|
|
|
61.3 |
|
|
|
38.7 |
|
|
|
20 |
|
|
|
29.2 |
|
|
|
24.8 |
|
|
|
26 |
|
Total |
|
|
40,863 |
|
|
|
23,913 |
|
|
|
16,950 |
|
|
|
58.5 |
|
|
|
41.5 |
|
|
|
14.0 |
|
|
|
32.7 |
|
|
|
30.3 |
|
|
|
23.1 |
|
Board and executive management diversity
In accordance with UK Listing Rule 14.3.30(2), these tables set out the Board and executive management diversity data as at 30 June 2026.
Gender identity
|
|
Number of |
|
|
Percentage |
|
|
Number |
|
|
Number in |
|
|
Percentage |
|
|||||
Men |
|
|
6 |
|
|
|
60 |
% |
|
|
3 |
|
|
|
5 |
|
|
|
45 |
% |
Women |
|
|
4 |
|
|
|
40 |
% |
|
|
- |
|
|
|
6 |
|
|
|
55 |
% |
Not specified/ prefer not to say |
|
|
0 |
|
|
|
0 |
% |
|
|
- |
|
|
|
0 |
|
|
|
0 |
% |
Ethnic background
|
|
Number |
|
|
Percentage |
|
|
Number |
|
|
Number in |
|
|
Percentage |
|
|||||
White British or other White (including minority-white groups) |
|
|
7 |
|
|
|
70 |
% |
|
|
2 |
|
|
|
7 |
|
|
|
64 |
% |
Mixed/Multiple ethnic groups |
|
|
2 |
|
|
|
20 |
% |
|
|
1 |
|
|
|
3 |
|
|
|
27 |
% |
Asian/Asian British |
|
|
1 |
|
|
|
10 |
% |
|
|
- |
|
|
|
1 |
|
|
|
9 |
% |
Black/African/Caribbean/Black British |
|
|
0 |
|
|
|
0 |
% |
|
|
- |
|
|
|
0 |
|
|
|
0 |
% |
Other ethnic group |
|
|
0 |
|
|
|
0 |
% |
|
|
- |
|
|
|
0 |
|
|
|
0 |
% |
Not specified/ prefer not to say |
|
|
0 |
|
|
|
0 |
% |
|
|
- |
|
|
|
0 |
|
|
|
0 |
% |
220
Table of Contents
The Group is involved from time to time in legal proceedings and government investigations, including claims and pending actions against it seeking damages or clarification or prosecution of legal rights and regulatory inquiries regarding business practices. Insurance or other indemnification protection may offset the financial impact on the Group of a successful claim.
This section summarises the significant legal proceedings, investigations, and associated matters in which the Group is currently involved or has finalised since our last Annual Report.
Legal proceedings relating to the failure of the Fundão tailings dam at the Samarco iron ore operations in Minas Gerais and Espírito Santo (Samarco dam failure)
The Group has been involved in numerous legal proceedings relating to the Samarco dam failure. These include legal proceedings brought by government authorities and civil associations claiming environmental and socioeconomic damages and a number of specific remediation measures as a result of the Samarco dam failure, including proceedings in which BHP Brasil is a defendant.
> For additional information concerning the Samarco dam failure, refer to Financial Statements note 4 ‘Significant events – Samarco dam failure’
Settlement Agreement with Public Authorities for reparation of the Samarco dam failure
On 25 October 2024, the Federal Government of Brazil, State of Minas Gerais, State of Espírito Santo, public prosecutors and public defenders (Public Authorities) entered into the Settlement Agreement with Samarco Mineração S.A. (Samarco) and its shareholders, BHP Billiton Brasil Ltda. (BHP Brasil) and Vale S.A. (Vale) (together, the Companies) to settle claims relating to the Samarco dam failure. The Settlement Agreement was ratified by the Brazilian Federal Supreme Court on 6 November 2024. On 15 May 2025, the ratification decision became final and unappealable.
Over the years, the Companies and public authorities entered into agreements for the remediation of damages resulting from the Samarco dam failure, including the March 2016 Framework Agreement, which established the Renova Foundation and the environmental and socioeconomic programs for remediation and compensation, and the June 2018 Governance Agreement, which addressed governance arrangements and the renegotiation of those programs. The obligations provided for in those previous agreements, including the Framework Agreement and the Governance Agreement, were extinguished and replaced by the Settlement Agreement.
The Settlement Agreement delivers a full and final settlement of the obligations under the Framework Agreement and of the main public civil actions and related proceedings brought by the Public Authorities in relation to the Samarco dam failure. These public civil actions and proceedings included the public civil action filed in November 2015 by the Federal Government of Brazil, the States of Espírito Santo and Minas Gerais and other public authorities, seeking full reparation of environmental and socioeconomic damages in the amount of R$20 billion (approximately US$3.9 billion)1 (the R$20 billion Public Civil claim), and the public civil action filed in May 2016 by the Brazilian Federal Public Prosecutors’ Office, seeking R$155 billion (approximately US$29.9 billion)1 for reparation, compensation and social, individual and collective moral damages (the R$155 billion Federal Public Prosecutors’ Office claim).
The financial value of the Settlement Agreement, as at the announcement date, was R$170 billion (approximately US$31.1 billion)2 on a 100 per cent basis. This amount includes R$38 billion (approximately US$7.9 billion)2 spent to 30 September 2024 on remediation and compensation since 2016, R$100 billion (approximately US$17.6 billion)2 in instalments over 20 years to the Public Authorities, the relevant municipalities and Indigenous peoples and Traditional communities for the execution of measures provided for in the Settlement Agreement (Obligation to Pay), and additional performance obligations for an estimated financial value of approximately R$32 billion (approximately US$5.6 billion)2 to be carried out by Samarco in accordance with the terms of the Settlement Agreement (Obligations to Perform). These obligations include remediation and compensation programs that are expected to be completed over the next 15 years.
Under the Settlement Agreement, Samarco is the primary obligor for the settlement obligations and BHP Brasil and Vale are each secondary obligors of any obligation that Samarco cannot fund or perform in proportion to their shareholding at the time of the dam failure, which was 50 per cent each.
Some of the key obligations of the Settlement Agreement include funding for programs for the benefit of people, communities and the environment in the affected regions, including universal water sanitation, health programs, economic recovery programs, improvements to roads and infrastructure, a flood response fund, initiatives to foster fishing and biodiversity, a program to support women, a social participation fund for investment in education, culture, sports and food security, and an income assistance program to support the most vulnerable people. The Settlement Agreement provides R$8 billion (US$1.4 billion)2 to eligible Indigenous peoples and Traditional communities, with the allocation of funds to be determined by Indigenous and Traditional
221
Table of Contents
communities following a consultation process by the Federal Government. The Krenak Indigenous community settled their claim through a parallel agreement.
In addition, the Settlement Agreement provides for individual compensation mechanisms, including payments of R$95,000 per person to eligible fishermen and farmers and R$13,018 per person to eligible individuals with water damage claims, and establishes a further compensation and indemnification system known as the Definitive Indemnification Program (PID), which provides payments of R$35,000 per eligible individual and small business.
For more information on the social economic and social environmental remediation actions to date, please refer to the Implementation of the Settlement Agreement below.
In view of the Settlement Agreement, the main proceedings brought by its signatories against BHP Brasil, Vale, Samarco and/or Renova Foundation have now been terminated, including the R$20 billion Public Civil claim and the R$155 billion Federal Public Prosecutors’ Office claim, related enforcement proceedings and other public civil actions covered by the Settlement Agreement. The Settlement Agreement provides that the collective socioenvironmental and socioeconomic damages of any nature (including social, moral and non-economic damages) arising from the dam failure are compensated and remediated by the Obligations to Perform and Obligation to Pay and that no additional obligations will be required for the reparation and compensation of the collective damages.
Pursuant to the Settlement Agreement, the Renova Foundation was formally extinguished and all its Programs were either terminated, completed or transferred to Samarco, in accordance with the 12-month period for the completion of the transition of rights and obligations to Samarco.
The Settlement Agreement did not resolve all claims related to the Samarco dam failure. For instance, the Settlement Agreement did not resolve the UK group action complaint, the group action claim brought against certain Vale and Samarco entities in the Netherlands (more details about these claims can be found below in the Class or group claims section), criminal charges against the Companies and certain individuals, certain CPAs commenced by certain municipalities or private associations, including the CPAs concerning the use of Tanfloc for water treatment, trailing litigation from individuals, Indigenous peoples and Traditional communities and businesses (among others), and future or unknown claims, which may arise from new information or damages in connection with the dam failure, such as potential claims alleging health impacts to individuals.
The Settlement Agreement and implementation thereof have been the subject of claims that seek, among other things, to change the eligibility parameters of the Settlement Agreement. The Companies are defending these claims.
In addition, actions for alleged damages, fees and/or expenses related to claims concerning the Samarco dam failure have been threatened, and may in the future be brought, against the Group.
The potential liabilities resulting from current and future claims, lawsuits, proceedings, enforcement actions and other obligations relating to the Samarco dam failure not resolved by the Settlement Agreement, together with the potential cost of implementing remedies sought in the various proceedings, cannot be reliably estimated with certainty at this time and there is a risk that outcomes may be materially higher or lower than amounts reflected in BHP Brasil’s provision and contingencies for the Samarco dam failure.
> For more information on BHP Brasil’s provision and contingencies for the Samarco dam failure refer to Financial Statements note 4 ‘Significant events – Samarco dam failure’
Implementation of the Settlement Agreement
Implementation of the Settlement Agreement is progressing through structured, deadline-driven workstreams led by Samarco in coordination with the relevant Public Authorities, with ongoing governance and oversight arrangements and independent technical audit requirements applying to specified deliverables. The status of select compensation, financial assistance and socioeconomic activities and resettlement activities is summarised below. In addition, progress continues to be made regarding Samarco’s obligations with respect to certain environmental remediation under the terms of the Settlement Agreement.
Compensation, financial assistance and socioeconomic activities
Compensation and financial assistance of approximately R$34.2 billion (US$6.6 billion, 100 per cent basis)1 has been paid to support approximately 632,000 people affected by the dam failure, as of 30 June 2026. As of 30 June 2026, the Definitive Indemnification Program (PID), the largest program, has resulted in the payment of compensation in respect of approximately 310,000 claims and the payment of R$11.4 billion (approximately US$2.1 billion).2
Resettlement
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The Settlement Agreement provides processes and defined timeframes to incentivise remaining families to select which resettlement option they prefer: (i) the construction of a new house in the collective resettlement of Bento Rodrigues or Paracatu de Baixo, (ii) the purchase of a new house in another place or (iii) a cash payment. As at 30 June 2026, approximately 100% of resettlement cases have been completed, either via completion of construction (with families moving in or handover to families in progress) or cash payment for those families who have opted for this option instead of the other resettlement solutions. Resettlement of public assets has been completed, with most assets formally transferred to and operated by the Municipality of Mariana.
Environmental remediation
Samarco continues implementing long-term monitoring and compensatory initiatives, including monitoring of water, river sediments, ecological indicators and air quality, with the main monitoring activities expected to continue until 2039. Action has been taken to vegetate the impacted riverbanks and floodplains, stabilise river margins and return water quality to the levels observed before the dam failure.
The Settlement Agreement also requires that Samarco provide R$11 billion (US$1.9 billion, 100 per cent basis)1 in funding for the universalisation of basic water sanitation for municipalities in the Doce River basin to reduce untreated sewage discharge into the river by communities. According to the Doce River basin water resources plan, developed by the Brazilian Water Agency, a federal agency responsible for the regulation of Brazilian water resources, water from the Doce River can be used for (1) human consumption after conventional treatment; (2) the protection of aquatic habitats; (3) primary contact recreation, such as swimming, water skiing and diving, among other things. The Settlement Agreement establishes Samarco’s obligation to reforest 50,000 hectares of protected areas and restore 5,000 springs within the Doce River basin. Of these, as at 30 June 2026, approximately 46,500 hectares and 4,501 springs are undergoing restoration, continuing the efforts initiated by the Renova Foundation. All reforestation actions are expected to be completed by 2031.
The Settlement Agreement outlines remaining tailings management activities, including the recovery of marginal lagoons and streams, as well as bioengineering interventions to control riverbank erosion. It also sets out Samarco’s obligation to carry out two environmental studies: one on the potential removal of tailings from the Candonga Reservoir, and the other related to management of contaminated sites. The development of these studies are ongoing with supervision by the applicable Public Authorities.
As part of the Settlement Agreement, the fishing ban in the coastal zone of the Doce River is set to be lifted within two years counted from the date of its execution (25 October 2024). Until then, it is expected the Public Authorities will issue fishing regulations aimed at protecting both fishing activities and the environment.
Footnotes
Civil public actions and individual actions for inclusion as beneficiaries of the Settlement Agreement
The Companies are involved in a number of proceedings brought by individuals or associations, including from Indigenous, Quilombola and Traditional communities, alleging wrongful exclusion from compensation programs provided under the Settlement Agreement, whether administered by Samarco or the Public Authorities, thus seeking their inclusion and, in some cases, additional compensation. These claims generally argue that the process used to identify eligible beneficiaries was inadequate, resulting in the alleged exclusion of certain individuals. The Companies continue to defend themselves against such claims. In some of these cases, the Court recognised that BHP Brasil should not be a defendant in the lawsuits, given that Samarco is the primary obligor pursuant to the Settlement Agreement. In other cases, the claims were dismissed against all Companies. Appeals and motions for clarification by the claimants are pending.
Civil public actions commenced by associations concerning the use of Tanfloc for water treatment
On 17 November 2023, the Federal Court dismissed the lawsuit filed by four associations in November 2021 due to procedural reasons. The judgment is final and unappealable. In July 2024, two further associations filed another lawsuit against the Companies and others, including the States of Minas Gerais and Espírito Santo, the Federal Government and the Water Treatment Companies, who were all also defendants in the first lawsuit.
This second lawsuit was also dismissed due to procedural reasons on 12 November 2024 and the associations have appealed this judgment, which is still pending. In both lawsuits the plaintiffs alleged that the defendants carried out a clandestine study on the
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citizens of the locations affected by the Samarco dam failure where Tanfloc (a tannin-based flocculant/coagulant) was used in the water treatment process. The plaintiffs claim that this product put the population at risk due to its alleged experimental qualities and the dosage applied. The plaintiffs presented largely similar pleas (e.g. material damages, moral damages).
Indigenous communities – civil public action for partial nullity of agreements
The Companies are involved in proceedings related to claims involving certain Indigenous communities. In February 2024, the Federal Prosecutor’s Office (MPF) filed a collective lawsuit against the Companies, alleging that the settlement agreements entered into between Renova Foundation and the Tupiniquim Guarani Indigenous communities (the Tupiniquim Guarani) contain nullities regarding the release of monthly Emergency Subsistence Aid (ASE), and requested an injunction ordering the Companies to maintain ASE payments to the Tupiniquim Guarani, including an increase in the monthly payment amount. On 4 March 2024, the Federal Court granted the MPF’s injunction request, later overturned in April 2024. On 31 October 2024, the Federal Court ruled in favour of the MPF request, but suspended the terms of its own rule. Following the Settlement Agreement, the Companies requested the suspension of the lawsuit, which was granted on 24 July 2025. These claims may be resolved through a Federal Government-led consultation in connection with the Settlement Agreement to part of the Tupiniquim Guarani who is still engaged in the consultation process; and through a separate court-supervised mediation ongoing for the remainder part of the community that has opted out of the Settlement Agreement.
Civil public action filed by Municipalities
The Companies were served with a civil public action filed in June 2025 by five municipalities from the State of Bahia seeking R$780 million (US$ 151 million)1 in compensation for damages allegedly caused by the Samarco dam failure, including environmental, socioeconomic and collective moral damages. The municipalities argue that the Companies are jointly and severally liable. The Companies have defended these claims, and no decision has been issued to date.
Other civil proceedings in Brazil
As noted, BHP Brasil is among the companies named as a defendant in a number of legal proceedings initiated by individuals, indigenous and traditional persons and their communities, non‑governmental organisations, corporations, municipalities and other governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The other defendants include Vale, Samarco and Renova Foundation.
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. Certain of these legal proceedings are outside the scope of the Settlement Agreement.
In addition, government inquiries, studies and investigations relating to the Samarco dam failure and actions taken in response to it have been commenced by numerous agencies and individuals of the Brazilian Government and may still be ongoing. Additional legal proceedings and government investigations relating to the Samarco dam failure or responses to the dam failure could be brought against BHP Brasil and other Group entities in Brazil or other jurisdictions. The outcomes of these claims, investigations and proceedings remain uncertain and continue to be disclosed as contingent liabilities.
As of 30 June 2026, Samarco had been named as a defendant in more than 92,000 small claims for moral damages in which people argue their public water service was interrupted for between five and 10 days, of which approximately 25,000 claims are still active. BHP Brasil is a co-defendant in more than approximately 21,000 of these cases.
The Settlement Agreement does not resolve existing claims by individuals, however it provided for an indemnification proposal of R$13,018 per person to individuals who have unresolved lawsuits in connection with water damage claims. As of 30 June 2026, Samarco has reached settlement in more than 13,300 individual cases, including approximatively 7,000 cases in which BHP Brasil is a co-defendant. Alternatively, the Brazilian Code of Civil Procedure provides that repetitive claims can be settled through a proceeding known as the Resolution of Repetitive Demands Procedure (IRDR). Under the IRDR, a court will hear a ‘pilot case’ representative of such recurring legal matters and the judgment in that decision will set a precedent for the resolution of similar cases in that jurisdiction. An IRDR has been established in the State of Minas Gerais and the Court in the pilot case has ruled that the mandatory parameter for resolution of claims will be the payment of R$2,000 (approximately US$386)1 per individual claim for moral damages due to the suspension of public water supply. Appeals before higher courts were filed. On 21 May 2024, the Superior Court of Justice granted the State Prosecutor of Minas Gerais request to declare null the IRDR due to the alleged failure to satisfy the procedural requirements necessary for its formal admissibility. Challenges to the decision were dismissed but still subject to appeal. The stay of individual proceedings remains subject to an assessment by the State Court of Minas Gerais.
Footnote
1. Based on the exchange rate as at 30 June 2026 BRL/US$ of 5.176.
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Samarco’s judicial reorganisation
On 9 April 2021, Samarco filed for judicial reorganisation (JR) and on 1 September 2023 the Second Business State Court for the Belo Horizonte District of Minas Gerais (JR Court) confirmed Samarco’s Judicial Reorganisation Plan (JR Plan). Under the JR Plan, Samarco’s funding of obligations to remediate and compensate the damages resulting from the dam failure is capped at US$1 billion for the period CY2024 to CY2030. Notwithstanding this cap, and subject to certain conditions, if Samarco has a positive cash balance after meeting its obligations in any given year, its shareholders may direct 50 per cent of the year-end excess cash to fund remediation obligations, including those under the Settlement Agreement. On 11 August 2025, Samarco formally emerged from JR following a judicial decision from the JR Court. Samarco is still required to implement the JR Plan.
Class or group action claims
BHP Group Limited and certain of its subsidiaries have been named as defendants in class or group action claims related to the Samarco dam failure. The most significant of those claims are summarised below.
Australian class action complaint
BHP Group Limited was named as a defendant in a shareholder class action filed in the Federal Court of Australia in 2018 on behalf of persons who acquired shares on the ASX, JSE or LSE in BHP Group Limited or BHP Group Plc (now BHP Group (UK) Ltd) in periods prior to the Samarco dam failure. In September 2025, BHP reached an agreement to settle the Australian Samarco shareholder class action. On 5 December 2025, the Federal Court of Australia approved the settlement. Pursuant to the terms of the settlement, BHP paid the applicants A$110 million, inclusive of interest and costs, with no admission of liability. BHP recovered the majority of the settlement amount from its insurers.
United Kingdom group action complaint
BHP Group (UK) Ltd (formerly BHP Group Plc) and BHP Group Limited (together, the BHP Defendants) are named as defendants in group action claims for damages filed in the courts of England. These claims were filed in 2018 on behalf of certain individuals, municipalities, businesses and communities in Brazil allegedly impacted by the Samarco dam failure, some of whom are eligible for and have been compensated through the Settlement Agreement.
In January 2024, the BHP Defendants were served with a new group action filed in the courts of England on behalf of additional individuals and businesses in Brazil allegedly impacted by the Samarco dam failure. The new action makes broadly the same claims as the original action and the amount of damages sought in these claims is unspecified. The claims have been stayed by the English court pending an application for consolidation with the original action.
In July 2024, the BHP Defendants, BHP Brasil and Vale entered into an agreement (BHP and Vale Agreement) – without any admission of liability in any proceedings – whereby: (i) Vale will pay 50 per cent of any amounts that may be payable by the BHP Defendants to the claimants in the UK group action claims (or by the BHP Defendants, BHP Brasil or their related parties to claimants in any other proceedings in Brazil, England or the Netherlands covered by the BHP and Vale Agreement); and (ii) BHP Brasil will pay 50 per cent of any amounts that may be payable by Vale to the claimants in the Netherlands proceedings (or by Vale or its related parties to claimants in any other proceedings in Brazil, England or the Netherlands covered by the BHP and Vale Agreement). The Group has considered the BHP and Vale Agreement when determining its provision for the UK group action claim and have taken into account amounts to be received from Vale.
In November 2025, the English High Court found the BHP Defendants liable under Brazilian law for the Samarco dam failure on the basis that it is a ‘polluter’ under Brazilian environmental law and at fault under the Brazilian civil code. The English High Court rejected the argument that the BHP Defendants are liable under Brazilian corporate law. The decision relates to events that occurred in the period before November 2015. The Court’s findings regarding Brazilian limitation periods could lead to attempts to join further claimants to the proceedings. The English High Court also found that certain of the waivers and releases signed by claimants who have already received compensation in Brazil are valid, and the claimants have accepted these claims will be discontinued, reducing the size and value of the claims in the UK group action significantly. The Group anticipates at least 240,000 claims will be discontinued as a result of these findings. The BHP Defendants were not granted permission to appeal the liability decision and will continue to defend the UK group action.
A stage 2 trial will decide generic issues of causation and quantification and whether losses claimed by certain lead claimants were caused by the dam failure. The trial is scheduled to run from April 2027 to March 2028. Following any decision and appeals in that trial, a stage 3 trial may also be required, where each remaining claimant would need to prove their alleged individual damages before the BHP Defendants are required to make any payments to them. This third trial is unlikely to occur before 2029. As at 30 June 2026, BHP has updated its Samarco dam failure provision to reflect its best estimate of potential cash outflows in relation to the claim.
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Given the status of the claim, significant uncertainty remains around the extent of any potential outflow and there is a risk that outcomes may be materially higher or lower than amounts reflected in the Group’s provision for the Samarco dam failure. Key areas of uncertainty include the findings of stage 2 on whether losses were caused by the dam failure and the number of individuals in stage 3 who are able to prove damage and any amounts to be awarded.
United Kingdom contempt proceedings
In October 2024, certain Brazilian municipalities, who are claimants in the UK group action claims referred to above, brought criminal contempt proceedings against the BHP Defendants in relation to their alleged involvement in a constitutional claim brought by a third-party Brazilian mining association (IBRAM) before the Brazilian Supreme Court. In June 2025, the High Court in London rejected the BHP Defendants’ application to strike out the proceedings. That decision was overturned on appeal in favour of the BHP Defendants in March 2026, resulting in the contempt proceedings being struck out. The UK Supreme Court has denied the Claimant’s application for permission to appeal the decision and the matter is at an end.
Vale and Samarco’s Netherlands collective action claim
In March 2024, a collective action complaint was filed in the Netherlands against Vale and a Dutch subsidiary of Samarco for compensation relating to the Samarco dam failure. That complaint, which formally commenced in February 2025, indicates that these claims were filed on behalf of certain individuals, municipalities, businesses, associations and faith-based institutions allegedly impacted by the Samarco dam failure who are not also claimants in the UK group action claims referred to above. Vale and Samarco’s Dutch subsidiary have challenged the Dutch Court’s jurisdiction to hear the claim and the Dutch Court has provisionally indicated that a decision will be handed down on 14 October 2026. BHP is not a defendant in the Netherlands proceedings.
Any amounts payable by Vale and Samarco under this claim will be subject to the BHP and Vale Agreement referred to in the UK group action claim above.
Criminal charges
On 20 October 2016, the Federal Prosecutors’ Office in Brazil filed criminal charges against the Companies and certain of their employees and former employees in the Federal Court of Ponte Nova, Minas Gerais. On 3 March 2017, BHP Brasil and the charged employees and former employees of BHP Brasil (Affected Individuals) filed their preliminary defences. The Federal Court granted decisions in favour of all eight Affected Individuals, terminating the charges against those individuals. On 14 November 2024, the Federal Court Judge issued a decision acquitting the Companies and certain individuals affiliated with Vale, Samarco and VogBR (Samarco’s independent consultant involved in the maintenance of the tailings dam) from all charges. On 10 December 2024, the Federal Prosecutors’ Office appealed. The trial commenced on 11 March 2026 and was adjourned until 3 September 2026.
Legal proceedings unrelated to the Samarco dam failure
South African class action claim
In August 2023, an application to commence a class action was filed in the High Court of South Africa on behalf of current and former mine workers (and the dependants of certain mine workers). The mine workers are alleged to have contracted coal mine dust lung disease and to have worked at specified coal mines in South Africa between 1965 and the filing date. ‘BHP Billiton Plc Incorporated’ is named as a respondent, alongside South32 SA Holdings Limited (South32) and Seriti Power (Proprietary) Limited (Seriti). The claims against the BHP entity relate to the period from 1999 to 2015. The relevant businesses were divested in 2015 as part of the demerger of South32 Limited.
The matter is currently at the certification stage whereby the South African Court must first grant permission for a class action to proceed. BHP, South32 and Seriti have filed notices opposing certification. The amount of damages sought by the Applicants on behalf of the putative class is unspecified. BHP has notified South32 that it considers any liability to the Applicants arising from the class action to be indemnified under the terms of the Separation Deed agreed as part of the demerger of South32 in 2015.
Federal Court of Australia sexual harassment and sex discrimination class action
In December 2024, BHP Group Limited was served with a class action proceeding in the Federal Court of Australia in relation to allegations of sexual harassment and sex discrimination. The claim was brought on behalf of all women who worked at BHP’s Australian workplaces at any time during the period from 12 November 2003 to 11 March 2024 who were impacted by the alleged conduct. The proceeding remains at an early stage and the amount of damages sought is unspecified.
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BHP Group Limited (formerly BHP Billiton Limited, before then BHP Limited and, before that, The Broken Hill Proprietary Company Limited) was incorporated in 1885 and is registered in Australia with ABN 49 004 028 077.
As at the date of this Annual Report, BHP Group Limited has a primary listing on the Australian Securities Exchange (ASX) (ticker BHP) in Australia, an international secondary listing on the London Stock Exchange (LSE) (ticker BHP), a secondary listing on the Johannesburg Stock Exchange (ticker BHG) and is listed on the New York Stock Exchange (NYSE) in the United States.
Trading on the NYSE is in the form of American Depositary Receipts (ADRs) evidencing American Depositary Shares (ADSs), with each ADS representing two ordinary shares of BHP Group Limited. Citibank N.A. (Citibank) is the Depositary for the ADS program. BHP Group Limited’s ADSs have been listed for trading on the NYSE (ticker BHP) since 28 May 1987.
BHP Group Limited is the ultimate parent company of all subsidiaries within the BHP Group.
From June 2001 to January 2022, BHP operated under a Dual Listed Company (DLC) structure, with two separate parent companies (BHP Group Limited and BHP Group Plc (now BHP Group (UK) Limited)) and their respective subsidiaries operating as a single unified economic entity run by a unified Board and senior executive management team.
On 31 January 2022, BHP unified its DLC structure, following which BHP Group Plc (now BHP Group (UK) Limited) became a subsidiary of BHP Group Limited.
This section sets out a summary of BHP Group Limited’s Constitution, as well as other related arrangements under applicable laws and regulations.
Provisions of the Constitution of BHP Group Limited can be amended only where such amendment is approved by special resolution. A special resolution is a resolution that is passed by at least 75 per cent (i.e. at least three quarters) of the votes cast by BHP shareholders entitled to vote being in favour of the resolution.
Board
The Board may exercise all powers of BHP, other than those that are reserved for BHP shareholders to exercise in a general meeting.
Power to issue securities
Under the Constitution, the Board has the power to issue any BHP shares or other securities (including redeemable shares) with preferred, deferred or other special rights, obligations or restrictions. The Board may issue shares on any terms it considers appropriate, provided that:
Restrictions on voting by Directors
A Director may not vote in respect of any contract or arrangement or any other proposal in which they have a material personal interest except in certain prescribed circumstances, including (subject to applicable laws) where the material personal interest:
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If a Director has a material personal interest and is not entitled to vote on a proposal, they will not be counted in the quorum for any vote on a resolution concerning the material personal interest.
Loans by Directors
Any Director may lend money to BHP at interest with or without security or may, for a commission or profit, guarantee the repayment of any money borrowed by BHP and underwrite or guarantee the subscription of shares or securities of BHP or of any corporation in which BHP may be interested without being disqualified as a Director and without being liable to account to BHP for any commission or profit.
Appointment and retirement of Directors
Appointment of Directors
The Constitution provides that a person may be appointed as a Director of BHP Group Limited by the existing Directors of BHP or may be elected by the shareholders in a general meeting.
Any person appointed as a Director of BHP Group Limited by the existing Directors will hold office only until the next general meeting that includes an election of Directors.
A person may be nominated by shareholders as a Director of BHP Group Limited if:
and the nomination is provided at least 40 business days before the date of the general meeting. The person nominated as a Director may be elected to the Board by ordinary resolution passed in a general meeting.
Retirement of Directors
The Board has adopted a policy under which all Non-executive Directors must, if they wish to remain on the Board, seek re-election by shareholders annually. This policy took effect in 2011 and replaced the previous system that required Non-executive Directors to submit themselves to shareholders for re-election at least every three years.
A Director may be removed from the Board in accordance with applicable law and must vacate their office as a Director in certain circumstances set out in the Constitution. There is no requirement for a Director to retire on reaching a certain age.
Rights attaching to shares
Dividend rights
Under Australian law, dividends on shares may be paid only if the company’s assets exceed its liabilities immediately before the dividend is determined and the excess is sufficient for payment of the dividend, the payment of the dividend is fair and reasonable to the company’s shareholders as a whole and the payment of the dividend does not materially prejudice the company’s ability to pay its creditors.
The Constitution provides that payment of any dividend may be made in any manner, by any means and in any currency determined by the Board.
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All unclaimed dividends may be invested or otherwise used by the Board for the benefit of BHP until claimed or otherwise disposed of according to law. BHP Group Limited is governed by the Victorian unclaimed monies legislation, which requires BHP to pay to the State Revenue Office any unclaimed dividend payments of A$20 or more that have remained unclaimed for over 12 months.
Voting rights
For the purposes of determining which shareholders are entitled to attend or vote at a meeting of BHP Group Limited and how many votes such shareholder may cast, the Notice of Meeting specifies when a shareholder must be entered on the Register of Shareholders in order to have the right to attend or vote at the meeting. The specified time must be not more than 48 hours before the time of the meeting.
Shareholders who wish to appoint a proxy to attend, vote or speak at a meeting of BHP Group Limited on their behalf must deposit the form appointing a proxy so that it is received not less than 48 hours before the time of the meeting.
Rights to share in profits
The rights attached to shares of BHP Group Limited, as regards the participation in the profits available for distribution that the Board determines to distribute, are as follows:
Rights on return of assets on liquidation
On a return of assets on liquidation of BHP Group Limited, the assets of BHP Group Limited remaining available for distribution among shareholders after the payment of all prior ranking amounts owed to all creditors and holders of preference shares, and to all prior ranking statutory entitlements, are to be applied equally to the holders of BHP Group Limited ordinary shares. Any surplus remaining is to be applied in making payments solely to the holders of BHP Group Limited ordinary shares in accordance with their entitlements.
Redemption of preference shares
If BHP Group Limited at any time proposes to create and issue any preference shares, the terms of the preference shares may give either or both of BHP Group Limited and the holder the right to redeem the preference shares.
The preference shares’ terms may also give the holder the right to convert the preference shares into ordinary shares.
Under the Constitution, the preference shares must give the holders:
Capital calls
Subject to the terms on which any shares may have been issued, the Board may make calls on the shareholders in respect of all monies unpaid on their shares. BHP Group Limited has a lien on every partly paid share for all amounts payable in respect of that share. Each shareholder is liable to pay the amount of each call in the manner, at the time and at the place specified by the Board (subject to receiving at least 14 days’ notice specifying the time and place for payment). A call is considered to have been made at the time when the resolution of the Board authorising the call was passed.
Borrowing powers
Subject to relevant law, the Directors may exercise all powers of BHP to borrow money and to mortgage or charge its undertaking, property, assets (both present and future) and all uncalled capital or any part or parts thereof, and to issue debentures and other securities, whether outright or as collateral security for any debt, liability or obligation of BHP or of any third party.
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Variation of class rights
Rights attached to any class of shares issued by BHP Group Limited can only be varied where such variation is approved by:
Annual General Meetings
The Annual General Meeting (AGM) provides a forum to facilitate the sharing of shareholder views and is an important event in the BHP calendar. The meeting provides an update for shareholders on our performance and offers an opportunity for shareholders to ask questions and vote. To vote at an AGM, a shareholder must be a registered holder of BHP Group Limited shares at a designated time before the relevant AGM.
Key members of management, including the Chief Executive Officer (CEO) and Chief Financial Officer, are present and available to answer questions. The External Auditor will also be available to answer questions.
Proceedings at AGMs are webcast live from our website. Copies of the speeches delivered by the Chair and CEO to the AGM are released to the relevant stock exchanges and posted on our website. The outcome of voting on the items of business are released to the relevant stock exchanges and posted on our website as soon as they are available following completion of the AGM and finalisation of the polls.
>More information on our AGMs is available at bhp.com/meetings
Conditions governing general meetings
The Board may, and must on requisition in accordance with applicable laws, call a general meeting of the shareholders at the time and place or places and in the manner determined by the Board. No shareholder may convene a general meeting of BHP Group Limited except where entitled under law to do so. Any Director may convene a general meeting whenever the Director thinks fit. General meetings can also be adjourned, cancelled or postponed where permitted by law or the Constitution. Notice of a general meeting must be given to each shareholder entitled to vote at the meeting and such notice of meeting may be given in the form and manner in which the Board thinks fit subject to any applicable law. Five shareholders of the company present in person or by proxy constitute a quorum for a general meeting. A shareholder who is entitled to attend and cast a vote at a general meeting of BHP Group Limited may appoint a person as a proxy to attend and vote for the shareholder in accordance with applicable law. All provisions of the Constitution relating to general meetings apply with any necessary modifications to any special meeting of any class of shareholders that may be held.
Limitations of rights to own securities
There are no limitations under the Constitution restricting the right to own BHP shares or other securities. The Australian Foreign Acquisitions and Takeovers Act 1975 imposes a number of conditions that restrict foreign ownership of Australian-based companies.
> For information on share control limits imposed by relevant laws refer to Additional Information 9.9
Documents on display
Documents filed by BHP Group Limited on the Australian Securities Exchange (ASX) are available at asx.com.au and documents filed on the London Stock Exchange (LSE) are available at data.fca.org.uk/#/nsm/nationalstoragemechanism. Documents filed on the ASX or on the LSE are not incorporated by reference into this Annual Report. The documents referred to in this Annual Report as being available on our website, bhp.com, are not incorporated by reference and do not form part of this Annual Report.
BHP Group Limited files Annual Reports and other reports and information with the US Securities and Exchange Commission (SEC). These filings are available on the SEC website at sec.gov.
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Share capital
The details of the share capital for BHP Group Limited are presented in Financial Statements note 17 ‘Share capital’ and remain current as at 9 July 2026.
Substantial shareholders in BHP Group Limited
BHP Group Limited is not directly or indirectly controlled by another corporation or by any government. No shareholder possesses voting rights that differ from those attaching to all of BHP Group Limited’s voting securities.
The following table shows holdings of 5 per cent or more of voting rights in BHP Group Limited’s shares as notified to BHP Group Limited under the Australian Corporations Act 2001 (Cth), Section 671B as at 9 July 2026.
|
|
|
|
Date of last notice |
|
|
|
|
% of total |
|
||||
Title of class |
|
Identity of person or group |
|
Date received |
|
Date of change |
|
Number owned |
|
|
voting rights1 |
|
||
Ordinary shares |
|
State Street Corporation |
|
3 February 2025 |
|
30 January 2025 |
|
|
361,526,566 |
|
|
|
7.13 |
% |
Ordinary shares |
|
BlackRock Group2 |
|
3 February 2022 |
|
31 January 2022 |
|
|
347,008,470 |
|
|
|
6.85 |
% |
Ordinary shares |
|
The Vanguard Group Inc. |
|
24 April 2025 |
|
16 April 2025 |
|
|
304,608,271 |
|
|
|
6.001 |
% |
Ordinary shares |
|
Citigroup Global Markets Australia Pty Limited |
|
15 May 2025 |
|
12 May 2025 |
|
|
268,965,425.83 |
|
|
|
5.2988 |
% |
Twenty largest shareholders as at 9 July 2026 (as named on the Register of Shareholders)1
BHP Group Limited |
|
Number of fully |
|
|
% of issued |
|
|||
1. |
HSBC Custody Nominees (Australia) Limited2 |
|
|
1,520,504,094 |
|
|
|
29.92 |
|
2. |
J P Morgan Nominees Australia Pty Limited |
|
|
846,040,032 |
|
|
|
16.65 |
|
3. |
Citicorp Nominees Pty Ltd |
|
|
577,197,190 |
|
|
|
11.36 |
|
4. |
Citicorp Nominees Pty Limited <Citibank NY ADR DEP A/C> |
|
|
252,754,885 |
|
|
|
4.97 |
|
5. |
BNP Paribas Noms Pty Ltd |
|
|
158,390,817 |
|
|
|
3.12 |
|
6. |
Computershare Clearing Pty Ltd <CCNL DI A/C>3 |
|
|
150,078,168 |
|
|
|
2.95 |
|
7. |
South Africa Control A/C\C4 |
|
|
122,393,450 |
|
|
|
2.41 |
|
8. |
BNP Paribas Nominees Pty Ltd <Agency Lending A/C>5 |
|
|
80,952,149 |
|
|
|
1.59 |
|
9. |
HSBC Custody Nominees (Australia) Limited <Nt-Comnwlth Super Corp A/C>2 |
|
|
37,247,696 |
|
|
|
0.73 |
|
10. |
Citicorp Nominees Pty Limited <Colonial First State Inv A/C> |
|
|
30,006,265 |
|
|
|
0.59 |
|
11. |
BNP Paribas Nominees Pty Ltd <Clearstream>5 |
|
|
28,136,736 |
|
|
|
0.55 |
|
12. |
BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd>5 |
|
|
28,063,089 |
|
|
|
0.55 |
|
13. |
Computershare Nominees CI Ltd <ASX Shareplus Control A/C> |
|
|
24,220,866 |
|
|
|
0.48 |
|
14. |
Netwealth Investments Limited <Wrap Services A/C> |
|
|
19,753,098 |
|
|
|
0.39 |
|
15. |
Australian Foundation Investment Company Limited |
|
|
13,413,159 |
|
|
|
0.26 |
|
16. |
HSBC Custody Nominees (Australia) Limited2 |
|
|
12,922,022 |
|
|
|
0.25 |
|
17. |
BNP Paribas Noms (NZ) Ltd |
|
|
9,725,515 |
|
|
|
0.19 |
|
18. |
Argo Investments Limited |
|
|
9,682,564 |
|
|
|
0.19 |
|
19. |
HSBC Custody Nominees (Australia) Limited – A/C 22 |
|
|
8,698,156 |
|
|
|
0.17 |
|
20. |
Mutual Trust Pty Ltd |
|
|
6,765,600 |
|
|
|
0.13 |
|
|
|
|
|
3,936,945,551 |
|
|
|
77.48 |
|
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US share ownership as at 9 July 2026
|
|
BHP Group Limited |
|
|||||||||||||
|
|
Number of |
|
|
% |
|
|
Number of |
|
|
% |
|
||||
Classification of holder |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Registered holders of voting securities |
|
|
1,647 |
|
|
|
0.28 |
|
|
|
3,864,736 |
|
|
|
0.08 |
|
ADR holders |
|
|
1,151 |
|
|
|
0.19 |
|
|
252,754,8841 |
|
|
|
4.97 |
|
|
Distribution of shareholdings by size as at 9 July 2026
|
|
BHP Group Limited |
|
|||||||||||||
Size of holding |
|
Number of shareholders |
|
|
% |
|
|
Number of |
|
|
% |
|
||||
1–5002 |
|
|
299,243 |
|
|
|
50.15 |
|
|
|
54,516,654 |
|
|
|
1.07 |
|
501–1,000 |
|
|
99,404 |
|
|
|
16.66 |
|
|
|
75,849,228 |
|
|
|
1.49 |
|
1,001–5,000 |
|
|
156,001 |
|
|
|
26.15 |
|
|
|
350,725,172 |
|
|
|
6.90 |
|
5,001–10,000 |
|
|
25,599 |
|
|
|
4.29 |
|
|
|
180,127,406 |
|
|
|
3.54 |
|
10,001–25,000 |
|
|
12,583 |
|
|
|
2.11 |
|
|
|
188,681,680 |
|
|
|
3.71 |
|
25,001–50,000 |
|
|
2,631 |
|
|
|
0.44 |
|
|
|
89,841,272 |
|
|
|
1.77 |
|
50,001–100,000 |
|
|
797 |
|
|
|
0.13 |
|
|
|
54,552,090 |
|
|
|
1.07 |
|
100,001–250,000 |
|
|
294 |
|
|
|
0.05 |
|
|
|
42,731,865 |
|
|
|
0.84 |
|
250,001–500,000 |
|
|
57 |
|
|
|
0.01 |
|
|
|
18,574,771 |
|
|
|
0.37 |
|
500,001– and over |
|
|
62 |
|
|
|
0.01 |
|
|
|
4,025,791,568 |
|
|
|
79.23 |
|
Total |
|
|
596,671 |
|
|
|
100 |
|
|
|
5,081,391,706 |
|
|
|
100 |
|
Policy
The Group adopted a dividend policy in February 2016 that provides for a minimum 50 per cent payout of Underlying attributable profit (Continuing operations) at every reporting period.
>For information on Underlying attributable profit (Continuing operations) for FY2026 refer to OFR 5.2 and OFR 8
The Board will assess, at each reporting period, the ability to pay amounts additional to the minimum payment, in accordance with the Capital Allocation Framework, as described in OFR 2.
In FY2026, we determined our dividends and other distributions in US dollars as it is our main functional currency.
Payments
BHP Group Limited shareholders may have their cash dividends paid directly into their bank account in Australian dollars, UK pounds sterling, New Zealand dollars, South African rand or US dollars, provided they have submitted direct credit details and if required, a valid currency election nominating a financial institution to the BHP Share Registrar no later than close of business on the dividend reinvestment plan election date. BHP Group Limited shareholders who do not provide their direct credit details will receive dividend payments by way of a cheque in Australian dollars. BHP Group Limited shareholders who reside in New Zealand, Papua New Guinea or Botswana must provide valid direct credit details to receive their dividend payment.
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Dividend reinvestment plan
BHP offers a dividend reinvestment plan to registered shareholders, which provides shareholders the opportunity to reinvest dividends to purchase additional BHP shares in the market, rather than receiving dividends in cash. Participation in the plan is entirely optional and is subject to the terms and conditions of the plan, which can be found at bhp.com/DRP.
We have an American Depositary Receipts (ADR) program for BHP Group Limited which has a 2:1 ordinary shares to American Depositary Share (ADS) ratio.
Depositary fees
Citibank serves as the depositary bank for our ADR program. ADR holders agree to the terms in the deposit agreement filed with the SEC for depositing ordinary shares or surrendering ADSs for cancellation and for certain services as provided by Citibank. Holders are required to pay certain fees for general depositary services provided by Citibank, as set out in the following tables.
Standard depositary fees
Depositary service |
|
Fee payable by the ADR holders |
Issuance of ADSs upon deposit of shares |
|
Up to US$5.00 per 100 ADSs (or fraction thereof) issued |
Delivery of Deposited Securities against surrender of ADSs |
|
Up to US$5.00 per 100 ADSs (or fraction thereof) surrendered |
Distribution of Cash Dividends |
|
Up to US$1.50 per 100 ADSs (or fraction thereof) held |
Corporate actions depositary fees
Depositary service |
|
Fee payable by the ADR holders |
Cash Distributions other than Cash Dividends (i.e. sale of rights, other entitlements, return of capital) |
|
Up to US$2.00 per 100 ADSs (or fraction thereof) held |
Distribution of ADSs pursuant to exercise of rights to purchase additional ADSs. Excludes stock dividends and stock splits |
|
Up to US$5.00 per 100 ADSs (or fraction thereof) held |
Distribution of securities other than ADSs or rights to purchase additional ADSs (i.e., spin-off shares) |
|
Up to US$5.00 per 100 ADSs (or fraction thereof) held |
Distribution of ADSs pursuant to an ADR ratio change in which shares are distributed |
|
No fee |
Fees payable by the Depositary to the Issuer
Citibank has provided BHP a net reimbursement of US$3,153,453.62 in FY2026 for ADR program-related expenses for BHP’s ADR program. ADR program-related expenses include legal and accounting fees, listing fees, expenses related to investor relations in the United States, fees payable to service providers for the distribution of material to ADR holders, expenses of Citibank as administrator of the ADS Direct Plan and expenses to remain in compliance with applicable laws.
Citibank has further agreed to waive other ADR program-related expenses for FY2026, amounting to US$11,106, which are associated with the administration of the ADR program.
The ADSs issued under our ADR program trade on the NYSE under the stock ticker BHP. As of 9 July 2026, there were 126,377,442 ADSs on issue and outstanding in the BHP Group Limited ADR program.
Charges
Holders are also required to pay the following charges in connection with depositing of ordinary shares and surrendering ADSs for cancellation and for the purpose of withdrawing deposited securities: taxes and other governmental charges, registration fees, transmission and delivery expenses, expenses and charges incurred by the depositary in the conversion of foreign currency, fees and expenses of the depositary in connection with compliance with exchange control regulations and other regulatory requirements and fees and expenses incurred by the depositary or other nominee in connection with servicing or delivery of deposit securities.
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Our approach to managing material risks from cyber threats is
>For information on our Risk Framework refer to OFR 6
We employ a number of measures designed to protect against, detect and respond to cyber threats, events or attacks, including BHP’s mandatory minimum performance requirements for technology and cybersecurity, cybersecurity performance requirements for suppliers and cybersecurity resilience programs. In addition, cybersecurity standards, cybersecurity risk and control guidance, security awareness programs and training to build capability, security assessments and continuous monitoring, restricted physical access to hardware and crisis management plans (in collaboration with Crisis Management Team) are also in place to manage cybersecurity.
We utilise dedicated internal and external cybersecurity personnel to focus on assessing, detecting, identifying, managing, preventing and responding to cyber threats, events and attacks. We have a dedicated global cybersecurity team, which has been in place since 2016 and has 24/7 monitoring and response capability that leverages core in-house capability and expert external service providers. Our assets, functions and projects are responsible for managing localised or project-specific exposure to technology and cyber risks, including risks associated with business-critical technology systems, with guidance provided by our cybersecurity team. BHP does not manage that exposure for non-operated assets, which is the responsibility of the operator of those assets, but it may be exposed to financial, legal and reputational risks as result of its economic interest in the asset. Enterprise-level risks that are specific to technology, such as those that pose a greater threat to our wider business and strategic opportunities, are managed by our global Technology team and other relevant stakeholders. To monitor and manage the cybersecurity risk exposure, we also monitor new methodologies and leverage emerging technologies, support and input from strategic cybersecurity partners, utilising threat intelligence capabilities and conducting resilience exercises to uplift our response in the instance of a cyber incident.
We regularly evaluate and assess the threat landscape, including the emergence of AI-related threats, and our security controls, including through audits and assessments, regular network and endpoint monitoring, vulnerability testing, penetration testing and tabletop exercises that include members of BHP’s management team. To assess the design and effectiveness of our cybersecurity controls, we engage with assessors, consultants, auditors or other expert third parties, including through independent
We have experienced targeted and non-targeted cybersecurity threats in the past; however,
>For information on our risk factors refer to OFR 6
Governance
>For information on other Board Committee activities that support risk governance at BHP refer to Corporate Governance Statement 5 and the Corporate Governance Statement 9.1
The CEO is responsible for the effectiveness of BHP’s Risk Framework with
The Vice President (VP) Technology Cybersecurity & Architecture is responsible for overseeing the performance of cybersecurity risks, and provides reports concerning these matters to the Chief Technical Officer.
Our VP Technology Cybersecurity & Architecture oversees the prevention, detection, mitigation and remediation of cybersecurity incidents through their management of, and participation in, our cybersecurity risk management and cybersecurity strategy processes described above.
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Our VP Technology Cybersecurity & Architecture leads the BHP cybersecurity team involved in monitoring and managing our cybersecurity threat risk and assurance process. That team includes personnel with significant information technology experience. Our current VP has more than 27 years of experience in the information technology and information security field, including serving as chief information security officer (CISO) and deputy CISO at other large companies. Additionally, our VP holds a number of qualified technical expert certifications, including Certified Information Systems Security Professional (CISSP) since 2001 and various cybersecurity-related technical certifications, in addition to Master in Information Technology (specialising in Information Security) and Master in Business Administration degrees, and is active in various cybersecurity industry collaboration groups internationally.
Our business is subject to a broad range of laws and regulations imposed by governments and regulatory bodies. These laws and regulations touch all aspects of our business, including how we extract, process and explore for minerals and how we conduct our operations, including laws and regulations governing matters such as environmental protection, land rehabilitation, occupational health and safety, human rights, cultural heritage, the rights and interests of Indigenous peoples, competition, foreign investment, export, marketing of minerals, and taxes.
The ability to extract and process minerals is fundamental to BHP. In most jurisdictions, the rights to extract mineral deposits are owned by the government. In such cases, we obtain the right to access the land and extract the product by entering into licences or leases with the government that owns the mineral deposit. We also rely on governments to grant the rights necessary to transport and treat the extracted material to prepare it for sale. The terms of the lease or licence, including the time period of the lease or licence, vary depending on the laws and regulations of the relevant jurisdiction or terms negotiated with the relevant government. In some jurisdictions in which we operate, regulatory regimes also prescribe processes for engagement and negotiation with Indigenous peoples with respect to traditional land and heritage rights.
Generally, we own the product we extract and we are required to pay royalties or other taxes to the government. In Australia and Chile, reforms to mining royalty laws have been adopted in recent years. For example, in September 2024, the Queensland Government passed legislation which operates in principle to prevent future governments from reversing the current progressive system of coal royalties (which results in higher royalty rates as the price of coal passes certain monetary thresholds) without parliamentary approval, while in Chile, new mining royalties took effect from 1 January 2024, subject to tax stability agreements.
In most instances, the rights to explore for minerals are granted to us by the government that owns the natural resources we wish to explore. Usually, the right to explore carries with it the obligation to spend a defined amount of money on the exploration, or to undertake particular exploration activities.
Environmental protection, mine closure, land rehabilitation, cultural heritage and occupational health and safety are principally regulated by governments and to a lesser degree, if applicable, by conditions under leases or licences. These obligations often require us to make substantial expenditures and incur other costs to minimise or remediate the environmental impact of our assets and activities, to meet closure and land rehabilitation obligations and to ensure the safety and/or wellbeing of our employees and contractors and avoid adverse impacts to the safety and/or wellbeing of the communities where we operate. Moreover, changes to these obligations, whether as a result of change in law, regulation or otherwise, may affect our ability to develop, expand or operate our assets as expected.
In many of the jurisdictions where we or our suppliers or customers operate, legislation and regulations have been enacted in response to the potential impacts of climate change and to implement international environmental commitments. For example, as a result of the Paris Agreement a number of governments, including Australia, Chile and Canada, have submitted Nationally Determined Contributions to reduce national greenhouse gas (GHG) emissions.
Further, the governments in a number of regions where we or our suppliers or customers operate have advanced targets and goals to reduce GHG emissions. In Australia, the National Greenhouse and Energy Reporting Act 2007 (Cth) imposes requirements for corporations meeting a certain threshold to register and report company information about GHG emissions and energy production and consumption as part of a single, national reporting scheme and establishes the Safeguard Mechanism to keep certain GHG emissions at or below legislated limits, known as baselines, for Australia’s largest industrial facilities. Under the Safeguard Mechanism, administered by the Clean Energy Regulator, facility baselines for Scope 1 GHG emissions at Australia’s largest industrial facilities are required to decrease in accordance with a set decline rate, with a view to achieving consistent and gradual GHG emission reductions on a trajectory consistent with achieving Australia’s GHG emission reduction targets of 43 per cent below 2005 levels by 2030 and net zero by 2050. Facilities that exceed their progressively declining legislated baselines may apply credits to meet the compliance obligations. In September 2025, Australia submitted its latest Nationally Determined Contribution, which sets out Australia’s target to reduce its GHG emissions by 62 to 70 percent below 2005 levels by 2035, but post-2030 baseline decline rates under the Safeguard Mechanism have yet to be set. The Australian Government has announced a review of the Safeguard Mechanism, which is due to commence in the second half of CY2026 and conclude during CY2027.
Regulations setting emissions standards for fuels used to power vehicles and equipment at our assets and the modes of transport used in our supply chains can also affect, directly and indirectly, the markets for these products, with flow-on impacts on our costs.
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A number of governments and regulators in jurisdictions relevant to BHP have implemented or otherwise proposed disclosure rules that require or would require enhanced climate-related and broader sustainability-related disclosures. For example, in Australia, the Federal Government legislation implementing a mandatory annual climate-related financial disclosure regime and associated auditing and assurance requirements was passed into law in September 2024 and BHP’s first reporting period under this regime commenced on 1 July 2025. There is also growing focus on mandatory corporate due diligence and reporting on climate-related and broader sustainability-related issues in the entity’s own operations and value chain. For example, the European Union (EU) Corporate Sustainability Due Diligence Directive will require in-scope companies to conduct human rights and environmental due diligence on the company’s own operations and certain of their business partners’ chains of activities, with application timing subject to implementation through EU Member State laws.
Our business is also subject to a number of regulations and legal developments relating to employee relations, including industrial relations developments in Australia and other developments described in OFR 9.4 and 9.5.
From time to time, certain trade actions, such as sanctions, tariffs and other trade restrictions, including responses to the same, are adopted by the United Nations (UN) Security Council and/or various governments, including in the United Kingdom, the United States, the EU, China and Australia against certain countries, entities or individuals, which may restrict our ability to sell extracted minerals or other products to, or purchase goods or services from, those countries, entities or individuals, or otherwise affect the market for our products.
Shareholding limits
Under current Australian legislation, the payment of any dividends, interest or other payments by BHP Group Limited to non-resident holders of BHP Group Limited’s shares is not restricted by exchange controls or other limitations, except that in certain circumstances, BHP Group Limited may be required to withhold Australian taxes.
From time to time, certain sanctions are adopted by the UN Security Council and/or various governments, including in the United Kingdom, the United States, the EU and Australia. Those sanctions prohibit, or in some cases impose, certain approval and reporting requirements on transactions involving sanctioned countries, entities and individuals and/or assets controlled or owned by them. Certain transfers into or out of Australia of amounts of A$10,000 or more in any currency may also be subject to reporting requirements.
The Australian Foreign Acquisitions and Takeovers Act 1975 (the FATA) restricts certain acquisitions of interests in securities in Australian companies, including BHP Group Limited. Generally, under the FATA, the prior approval of the Australian Treasurer must be obtained for proposals by a foreign person (either alone or together with its associates) to acquire 20 per cent or more of the voting power or issued securities in an Australian company. Lower approval thresholds apply in certain circumstances, including for acquisitions of interests in entities that operate a ‘national security business’, and acquisitions of interests by foreign government investors of voting power or issued securities in an Australian company.
The FATA also empowers the Treasurer to make certain orders prohibiting acquisitions by foreign persons in Australian companies, including BHP Group Limited (and requiring divestiture if the acquisition has occurred) where the Treasurer considers the acquisition to be contrary to national security or the national interest.
Except for the restrictions under the FATA, there are no limitations, either under Australian law or under the Constitution of BHP Group Limited, on the right of non-residents to hold or vote BHP Group Limited ordinary shares.
Post-unification requirements under FATA
The Treasurer gave approval under the FATA for the actions taken as part of implementation of the unification of BHP’s DLC structure on the conditions set out below:
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The taxation discussion below describes the material Australian and US federal income tax consequences to a US holder owning BHP Group Limited ordinary shares or ADSs.
The following discussion is not relevant to non-US holders of BHP Group Limited ordinary shares or ADSs. By its nature, the commentary below is of a general nature and we recommend that holders of ordinary shares or ADSs consult their own tax advisers regarding the Australian and US federal, state and local tax and other tax consequences of owning and disposing of ordinary shares and ADSs in their particular circumstances.
For purposes of this commentary, a US holder is a beneficial owner of ordinary shares or ADSs who is, for US federal income tax purposes:
This discussion of material tax consequences for US holders is based on the Australian and US laws currently in effect, the published practice of tax authorities in those jurisdictions and the double taxation treaties and conventions currently in existence. These laws are subject to change, possibly on a retroactive basis.
Dividends
Dividends (including other distributions treated as dividends for Australian tax purposes) paid by BHP Group Limited to a US holder that is not an Australian resident for Australian tax purposes will generally not be subject to Australian withholding tax if they are fully franked (broadly, where a dividend is franked, Australian tax paid by BHP Group Limited is imputed to the shareholders).
Dividends paid to such US holders, which are not fully franked, will generally be subject to Australian withholding tax not exceeding 15 per cent only to the extent (if any) that the dividend is neither:
The Australian withholding tax outcome described above applies to US holders who are eligible for benefits under the Tax Convention between Australia and the US for the Avoidance of Double Taxation (the Australian Tax Treaty) that are not companies that directly hold at least 10 per cent of the voting power of BHP Group Limited. If a US holder is eligible for benefits under the Australian Tax Treaty and is a company that directly holds at least 10 per cent of the voting power of BHP Group Limited, the rate is 5 per cent. If a US holder is not eligible for benefits under the Australian Tax Treaty, the rate of Australian withholding tax may be 30 per cent.
In contrast, dividends (including other distributions treated as dividends for Australian tax purposes) paid by BHP Group Limited to a US holder may instead be taxed by assessment in Australia if the US holder:
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The treatment of dividends outlined above may be modified where the shareholding in BHP Group Limited is held through a trust, limited partnership, limited liability company, pension fund, sovereign wealth fund or other investment vehicle. Affected US holders should seek their own advice in relation to such arrangements.
Sale of ordinary shares and ADSs
Gains made by US holders on the sale of ordinary shares or ADSs will generally not be taxed in Australia.
However, the precise Australian tax treatment of gains made by US holders on the sale of ordinary shares or ADSs generally depends on whether or not the gain is an Australian sourced gain of an income nature for Australian income tax purposes.
Where the gain is of an income nature, a US holder will generally only be liable to Australian income tax on an assessment basis (whether or not they are also an Australian resident for Australian tax purposes) if:
Where the gain is not taxed as Australian sourced income, the US holder will generally only be liable to Australian capital gains tax on an assessment basis if one or more of the following applies:
US holders that held shares or ADSs as pre-CGT assets (broadly, shares or ADSs acquired or deemed to have been acquired before 20 September 1985) will not be liable to Australian capital gains tax on capital gains made on or before 30 June 2027. Pre-CGT assets will be deemed to have been sold on 30 June 2027 and reacquired on 1 July 2027 for market value, with any capital gain or loss on the deemed disposal disregarded. Any capital gains accruing from 1 July 2027 will no longer be exempt from Australian capital gains tax as pre-CGT gains and may be subject to Australian capital gains tax on an assessment basis in the circumstances described above.
US holders that are Australian resident individuals may be subject to Australian capital gains tax on gains made on or after 1 July 2027 at a minimum of 30 per cent. Affected US holders should seek their own advice.
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In certain circumstances, if the ordinary shares or ADSs constitute an ‘indirect Australian real property interest’ for Australian CGT purposes, the purchaser may be required to withhold under the non-resident CGT withholding regime an amount equal to 15 per cent of the purchase price in situations including where the acquisition is undertaken by way of an off-market transfer. Affected US holders should seek their own advice in relation to how this withholding regime may apply to them.
The comments above on the sale of ordinary shares and ADSs do not apply:
Stamp duty, gift, estate and inheritance tax
No stamp duty of an Australian State or Territory is payable on the transfer or gift of shares or ADSs where the interest in BHP Group Limited dealt with accounts for less than 90 per cent of the issued share capital of BHP Group Limited (including the interests of associated persons and pre-existing interests held by the transferee). No Australian State or Territory imposes gift, estate or inheritance duties on shares or ADSs upon the death of a shareholder.
This section describes the material US federal income tax consequences to a US holder of owning ordinary shares or ADSs. It applies only to ordinary shares or ADSs that are held as capital assets for tax purposes. This discussion addresses only US federal income taxation and does not discuss all of the tax consequences that may be relevant to US holders in light of their individual circumstances, including foreign, state or local tax consequences, estate and gift tax consequences, and tax consequences arising under the Medicare contribution tax on net investment income. This section does not apply to a holder of ordinary shares or ADSs that is a member of a special class of holders subject to special rules, including a dealer in securities, a trader in securities that elects to use a mark-to-market method of accounting for its securities holdings, a tax-exempt organisation, a life insurance company, a person liable for alternative minimum tax, a person who actually or constructively owns 10 per cent or more of the combined voting power of the voting stock or of the total value of the stock of BHP Group Limited, a person that holds ordinary shares or ADSs as part of a straddle or a hedging or conversion transaction, a person that purchases or sells ordinary shares or ADSs as part of a wash sale for tax purposes, or a person whose functional currency is not the US dollar.
If an entity or arrangement that is treated as a partnership for US federal income tax purposes holds the ordinary shares or ADSs, the US federal income tax treatment of a partner generally will depend on the status of the partner and the tax treatment of the partnership. A partner in a partnership holding the ordinary shares or ADSs should consult its tax adviser with regard to the US federal income tax treatment of an investment in the ordinary shares or ADSs.
This section is based on the Internal Revenue Code of 1986, as amended, its legislative history, existing and proposed regulations, published rulings and court decisions, and the Australian Tax Treaty, all as currently in effect. These authorities are subject to change, possibly on a retroactive basis.
This section is in part based on the representations of the Depositary and the assumption that each obligation in the deposit agreement and any related agreement will be performed in accordance with its terms.
In general, for US federal income tax purposes, a holder of ADSs will be treated as the owner of the ordinary shares represented by those ADSs. Exchanges of ordinary shares for ADSs, and ADSs for ordinary shares, generally will not be subject to US federal income tax.
Dividends
Under US federal income tax laws and subject to the Passive Foreign Investment Company (PFIC) rules discussed below, a US holder must include in its gross income the amount of any dividend paid by BHP Group Limited out of its current or accumulated earnings and profits (as determined for US federal income tax purposes) plus any Australian tax withheld from the dividend payment even though the holder does not receive it. The dividend is taxable to the holder when the holder, in the case of ordinary shares, or the Depositary, in the case of ADSs, actually or constructively receives the dividend.
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Dividends paid to a non-corporate US holder on ordinary shares or ADSs that constitute qualified dividend income will be taxable at the preferential rates applicable to long-term capital gains provided the US holder holds the ordinary shares or ADSs for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and does not enter into certain risk reduction transactions with respect to the ordinary shares or ADSs during the abovementioned holding period. However, a non-corporate US holder that elects to treat the dividend income as ‘investment income’ pursuant to Section 163(d)(4) of the US Internal Revenue Code will not be eligible for such preferential rates. Dividends paid with respect to ordinary shares or ADSs generally will be qualified dividend income provided that, in the year that the holder receives the dividends, the ordinary shares or ADSs are readily tradable on an established securities market in the United States. The ordinary shares and ADSs are listed on NYSE and we therefore expect that dividends will be qualified dividend income.
In the case of a corporate US holder, dividends on ordinary shares and ADSs are taxed as ordinary income and will not be eligible for the dividends received deduction generally allowed to US corporations in respect of dividends received from other US corporations.
Distributions in excess of current and accumulated earnings and profits, as determined for US federal income tax purposes, will be treated as a non-taxable return of capital to the extent of the holder’s tax basis, determined in US dollars, in the ordinary shares or ADSs and thereafter as a capital gain. However, BHP Group Limited does not expect to calculate earnings and profits in accordance with US federal income tax principles. Accordingly, holders should expect to generally treat distributions made by BHP Group Limited as dividends.
The amount of any cash distribution paid in any foreign currency will be equal to the US dollar value of such currency, calculated by reference to the spot rate in effect on the date such distribution is received by the US holder or, in the case of ADSs, by the Depositary, regardless of whether and when the foreign currency is in fact converted into US dollars. If the foreign currency is converted into US dollars on the date received, the US holder generally should not recognise foreign currency gain or loss on such conversion. If the foreign currency is not converted into US dollars on the date received, the US holder will have a basis in the foreign currency equal to its US dollar value on the date of the distribution, and generally will recognise foreign currency gain or loss on a subsequent conversion or other disposal of such currency. Such foreign currency gain or loss generally will be treated as ordinary income or loss ineligible for the preferential tax rate applicable to dividend income and generally will be income or loss from US sources for foreign tax credit limitation purposes.
Subject to certain limitations, Australian tax withheld in accordance with the Australian Tax Treaty and paid over to Australia will be creditable against an individual’s US federal income tax liability. Special rules apply in determining the foreign tax credit limitation with respect to dividends that are taxed at the preferential rates applicable to long-term capital gains. To the extent a reduction or refund of the tax withheld is available to a US holder under Australian law or under the Australian Tax Treaty, the amount of tax withheld that could have been reduced or that is refundable will not be eligible for credit against the holder’s US federal income tax liability. A US holder that does not elect to claim a US foreign tax credit may instead claim a deduction for Australian income tax withheld, but only for a taxable year in which the US holder elects to do so with respect to all foreign income taxes paid or accrued in such taxable year.
Dividends will be income from sources outside the US, and generally will be ‘passive category’ income for the purpose of computing the foreign tax credit allowable to a US holder. In general, a taxpayer’s ability to use foreign tax credits may be limited and is dependent on the particular circumstances. US holders should consult their tax advisers with respect to these matters.
Sale of ordinary shares and ADSs
Subject to the PFIC rules discussed below, a US holder who sells or otherwise disposes of ordinary shares or ADSs will recognise a capital gain or loss for US federal income tax purposes equal to the difference between the US dollar value of the amount realised and the holder’s tax basis, determined in US dollars, in those ordinary shares or ADSs. The gain or loss will generally be income or loss from sources within the US for foreign tax credit limitation purposes. The capital gain of a non-corporate US holder is generally taxed at preferential rates where the holder has a holding period greater than 12 months in the shares or ADSs sold. There are limitations on the deductibility of capital losses.
The US dollar value of any foreign currency received upon a sale or other disposition of ordinary shares or ADSs will be calculated by reference to the spot rate in effect on the date of sale or other disposal (or, in the case of a cash basis or electing accrual basis taxpayer, on the settlement date). A US holder will have a tax basis in the foreign currency received equal to that US dollar amount, and generally will recognise foreign currency gain or loss on a subsequent conversion or other disposal of the foreign currency. This foreign currency gain or loss generally will be treated as US source ordinary income or loss for foreign tax credit limitation purposes.
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Passive Foreign Investment Company rules
We do not believe that the BHP Group Limited ordinary shares or ADSs will be treated as stock of a PFIC for US federal income tax purposes, but this conclusion is a factual determination that was made at the end of FY2026 and thus may be subject to change. If BHP Group Limited were treated as a PFIC, any gain realised on the sale or other disposition of ordinary shares or ADSs would in general not be treated as a capital gain. Instead, a US holder would be treated as if it had realised such gain and certain ‘excess distributions’ ratably over its holding period for the ordinary shares or ADSs and would be taxed at the highest tax rate in effect for each such year to which the gain was allocated, together with an interest charge in respect of the tax attributable to each such year. In addition, dividends received with respect to ordinary shares or ADSs would not be eligible for the preferential tax rates applicable to dividend income if BHP Group Limited were a PFIC either in the taxable year of the distribution or the preceding taxable year, but instead would be taxable at rates applicable to ordinary income. Assuming the ordinary shares or ADSs are ‘marketable stock’, a US holder may mitigate the adverse tax consequences described above by electing to be taxed annually on a mark-to-market basis with respect to such ordinary shares or ADSs.
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3D
Three dimensional.
AIG
The Australian Institute of Geoscientists.
APEGS
Association of Professional Engineers and Geoscientists of Saskatchewan.
ASPB
Alberta Society of Professional Biologists.
AusIMM
The Australasian Institute of Mining and Metallurgy.
Beneficiation
The process of physically separating ore from waste material prior to subsequent processing of the improved ore.
Bituminous
Coal of intermediate rank with relatively high carbon content.
Block cave
An area resulting from an underground mining method where the orebody is undermined to make it collapse under its own weight.
Brownfield
The development or exploration located inside the area of influence of existing mine operations which can share infrastructure/management.
Coal reserves
Equivalent to mineral reserves, but specifically concerning coal.
Coal resources
Equivalent to mineral resources, but specifically concerning coal.
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Coking coal
Used in the manufacture of coke, which is used in the steelmaking process by virtue of its carbonisation properties. Coking coal may also be referred to as steelmaking coal or metallurgical coal.
Copper cathode
Electrolytically refined copper that has been deposited on the cathode of an electrolytic bath of acidified copper sulphate solution. The refined copper may also be produced through leaching and electrowinning.
Cut-off grade
Cut-off grade is the grade (i.e. the concentration of metal or mineral in rock) that determines the destination of the material during mining. For purposes of establishing 'prospects of economic extraction,' the cut-off grade is the grade that distinguishes material deemed to have no economic value (it will not be mined in underground mining or if mined in surface mining, its destination will be the waste dump) from material deemed to have economic value (its ultimate destination during mining will be a processing facility). Other terms used in similar fashion as cut-off grade include net smelter return, pay limit, and break-even stripping ratio.
Development stage
Development stage refers to a property that has mineral reserves disclosed, pursuant to S-K 1300, but no material extraction.
Economically viable
Economically viable, when used in the context of mineral reserve determination, means that the qualified person has determined, using a discounted cash flow analysis, or has otherwise analytically determined, that extraction of the mineral reserve is economically viable under reasonable investment and market assumptions.
Electrowinning/electrowon
An electrochemical process in which metal is recovered by dissolving a metal within an electrolyte and plating it onto an electrode.
Energy coal
Used as a fuel source in electrical power generation, cement manufacture and various industrial applications. Energy coal may also be referred to as steaming or thermal coal.
Exploration stage
Exploration stage refers to a property that has no mineral reserves disclosed.
Feasibility study
Feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project, which includes detailed assessments of all applicable modifying factors, together with any other relevant operational factors, and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is economically viable. The results of the study may serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project.
First principles
First principles refers to building up the costs for a piece of work considering all the parts and activities needed to put it together.
Flotation
A method of selectively recovering minerals from finely ground ore using a froth created in water by specific reagents. In the flotation process, certain mineral particles are induced to float by becoming attached to bubbles of froth and the unwanted mineral particles sink.
FOB
Free on board.
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Full SaL
A processing technology that allows the extraction of copper using chlorine-assisted leaching predominantly for sulphidic material.
Grade or Quality
Any physical or chemical measurement of the characteristics of the material of interest in samples or product.
Greenfield
The development or exploration located outside the area of influence of existing mine operations/infrastructure.
Hypogene Sulphide
Hypogene mineralisation is formed by fluids at high temperature and pressure derived from magmatic activity. Copper in Hypogene Sulphide is mainly provided from the copper bearing mineral chalcopyrite and higher metal recoveries are achieved via grinding/flotation concentration processes.
Indicated mineral resources
Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality are estimated on the basis of adequate geological evidence and sampling. The level of geological certainty associated with an indicated mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Because an indicated mineral resource has a lower level of confidence than the level of confidence of a measured mineral resource, an indicated mineral resource may only be converted to a probable mineral reserve.
Inferred mineral resources
Inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability. Because an inferred mineral resource has the lowest level of geological confidence of all mineral resources, which prevents the application of the modifying factors in a manner useful for evaluation of economic viability, an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve.
In situ
Situated in the original place.
JORC
The Australasian Joint Ore Reserves Committee.
JORC Code
A set of minimum standards, recommendations and guidelines for public reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The guidelines are defined by JORC, which is sponsored by the Australian mining industry and its professional organisations.
Leaching
The process by which a soluble metal can be economically recovered from minerals in ore by dissolution.
LOI (loss on ignition)
A measure of the percentage of volatile matter (liquid or gas) contained within a mineral or rock. LOI is determined to calculate loss in mass when subjected to high temperatures.
Marketable coal reserves
Tonnes of coal available, at specified moisture content and air-dried qualities, for sale after the beneficiation of coal reserves.
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Material of economic interest
Material of economic interest, when used in the context of mineral resource determination, includes mineralisation, including dumps and tailings, mineral brines, and other resources extracted on or within the earth’s crust. It does not include oil and gas resources resulting from oil and gas producing activities, gases (e.g. helium and carbon dioxide), geothermal fields, and water.
Measured mineral resources
Measured mineral resource is that part of a mineral resource for which quantity, grade or quality are estimated on the basis of conclusive geological evidence and sampling. The level of geological certainty associated with a measured mineral resource is sufficient to allow a qualified person to apply modifying factors in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. Because a measured mineral resource has a higher level of confidence than the level of confidence of either an indicated mineral resource or an inferred mineral resource, a measured mineral resource may be converted to a proven mineral reserve or to a probable mineral reserve.
Metallurgical coal
A broader term than coking coal, which includes all coals used in steelmaking, such as coal used for the pulverised coal injection process. May also be referred to as steelmaking coal.
Mineral resources
A mineral resource is a concentration or occurrence of material of economic interest in or on the Earth’s crust in such form, grade or quality, and quantity that there are reasonable prospects for economic extraction. A mineral resource is a reasonable estimate of mineralisation, taking into account relevant factors such as cut-off grade, likely mining dimensions, locations or continuity, that, with the assumed and justifiable technical and economic conditions, is likely to, in whole or in part, become economically extractable. It is not merely an inventory of all mineralisation drilled or sampled.
Mineralisation
Any single mineral or combination of minerals occurring in a mass, or deposit, of economic interest.
Mineral reserve
Mineral reserve is an estimate of tonnage and grade or quality of indicated and measured mineral resources that, in the opinion of the qualified person, can be the basis of an economically viable project. More specifically, it is the economically mineable part of a measured or indicated mineral resource, which includes diluting materials and allowances for losses that may occur when the material is mined or extracted.
Mixed (material type)
Refer to Transitional Sulphide.
Modifying Factors
Modifying Factors are the factors that a qualified person must apply to indicated and measured mineral resources and then evaluate in order to establish the economic viability of mineral reserves. A qualified person must apply and evaluate Modifying Factors to convert measured and indicated mineral resources to proven and probable mineral reserves. These factors include, but are not restricted to: mining; processing; metallurgical; infrastructure; economic; marketing; legal; environmental compliance; plans, negotiations, or agreements with local individuals or groups; and governmental factors. The number, type and specific characteristics of the Modifying Factors applied will necessarily be a function of and depend upon the mineral, mine, property, or project.
Open-cut (OC)
Surface working in which the working area is kept open to the sky, equivalent term is open-pit.
Probable mineral reserve
Probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource.
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Production stage
Production stage refers to a property with material extraction of mineral reserves.
Proven mineral reserve
Proven mineral reserve is the economically mineable part of a measured mineral resource and can only result from conversion of a measured mineral resource.
Qualified Person
Defined by the US SEC as an individual who is both (1) a mineral industry professional with at least five years of relevant experience in the type of mineralisation and type of deposit under consideration and in the specific type of activity that person is undertaking on behalf of the registrant; and (2) an eligible member or licensee in good standing of a recognised professional organisation at the time the technical report is prepared.
ROM (run of mine)
Run of mine product mined in the course of regular mining activities. Tonnes include allowances for diluting materials and for losses that occur when the material is mined.
SLC (sub-level cave)
An area within an underground mine which uses the sub-level cave method. This is where an orebody is extracted from the upper horizons first and mining progresses downwards level by level.
Smelting
The process of extracting metal from its ore by heating and melting.
Solvent extraction
A method of separating one or more metals from a leach solution by treating with a solvent that will extract the required metal, leaving the others. The metal is recovered from the solvent by further treatment.
Stockpile
An accumulation of ore or mineral built up when demand slackens or when the treatment plant or beneficiation equipment is incomplete or temporarily unable to process the mine output; any heap of material formed to create a buffer for loading or other purposes or material dug and piled for future use.
Supergene Sulphide
Supergene is a term used to describe near-surface processes and their products, formed at low temperature and pressure by the activity of meteoric or surface water. Copper in Supergene Sulphide is mainly provided from the copper bearing minerals chalcocite and covellite and is amenable to both grinding/flotation concentration and leaching processes.
Tailings
Those portions of washed or milled ore that are too poor to be treated further or remain after the required metals and minerals have been extracted.
Technical Report Summary
A summary of a technical report, prepared by a qualified person in accordance with S-K 1300.
Total mineral reserves
The sum of proven and probable mineral reserves.
Total mineral resources
The sum of inferred, indicated and measured mineral resources.
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Transitional Sulphide
Transitional Sulphide is a term used to describe the zone of mineralisation that is a gradation between Supergene Sulphide and Hypogene Sulphide resulting from the incomplete development of the former as it overprints the latter. This results in a more irregular distribution of the three main copper bearing minerals and is amenable to both grinding/flotation concentration and leaching processes.
TSF
Tailings storage facility/facilities.
Underground (UG)
Below the surface mining activities.
Wet tonnes
Production is usually quoted in terms of wet metric tonnes (wmt). To adjust from wmt to dry metric tonnes (dmt) a factor is applied based on moisture content.
Yield
The percentage of material of interest that is extracted during mining and/or processing.
10.2 Terms used in reserves and resources
Ag |
silver |
AI2O3 |
alumina |
Ash |
inorganic material remaining after combustion |
Au |
gold |
Cu |
copper |
CV |
calorific value |
Fe |
iron |
Insol. |
insolubles |
K2O |
potassium oxide |
KCl |
potassium chloride |
KCl.MgCl2.6H20 |
carnallite |
LOI |
loss on ignition |
LPL |
Lower Patience Lake (stratigraphic unit) |
MgO |
magnesium oxide |
Mo |
molybdenum |
NaCl |
halite |
Ni |
nickel |
P |
phosphorus |
Pc |
phosphorus in concentrate |
S |
sulphur |
SiO2 |
silica |
U3O8 |
uranium oxide |
VM |
volatile matter |
Zn |
zinc |
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10.3 Units of measure
% |
percentage or per cent |
Bt |
billion tonnes |
CO2 |
carbon dioxide |
CO2-e |
carbon dioxide equivalent |
dmt |
dry metric tonne |
GJ |
gigajoule |
g/t |
grams per tonne |
ha |
hectare |
kcal/kg |
kilocalories per kilogram |
kg/t |
kilograms per tonne |
km |
kilometre |
kt |
kilotonnes |
ktoz |
thousand troy ounces |
ktpa |
kilotonnes per annum |
ktpd |
kilotonnes per day |
kV |
kilovolt |
kWh |
kilowatt hour |
lb |
pound |
m |
metre |
m3 |
cubic metre |
ML |
megalitre |
Mt |
million tonnes |
MtCO2-e |
million tonnes of carbon dioxide equivalent |
Mtpa |
million tonnes per annum |
MW |
megawatt |
oz |
ounce |
PJ |
petajoule |
ppm |
parts per million |
t |
tonne |
tCO2-e |
tonnes of carbon dioxide equivalent |
t/h |
tonnes per hour |
tpa |
tonnes per annum |
tpd |
tonnes per day |
troy oz |
troy ounce is a unit of measure of precious metals |
TWh |
terawatt hour |
wmt |
wet metric tonnes |
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10.4 Other terms
2030 goals
Our aspirational goals for FY2030 under the pillars of our 2030 social value scorecard: Decarbonisation; Healthy environment; Indigenous partnerships; Safe, inclusive and future-ready workforce; Thriving, empowered communities; and Responsible supply chains.
AI
Artificial intelligence.
AASB
The Australian Accounting Standards Board, which issues accounting standards and sustainability reporting standards.
AASB S2
The Australian Sustainability Reporting Standard AASB S2: Climate-related Disclosures issued by the Australian Accounting Standards Board.
Activity data (in relation to greenhouse gas (GHG) emissions data)
A quantitative measure of a level of activity that results in GHG emissions. Activity data is multiplied by an energy and/or emissions factor to derive the energy consumption and GHG emissions associated with a process or an operation. Examples of activity data include kilowatt-hours of electricity used, quantity of fuel used, output of a process, hours equipment is operated, distance travelled and floor area of a building.
Adjusted (in respect to GHG emissions data)
Adjusted means calculated to present the GHG emissions data for a time period (such as a baseline year or reporting year) as though relevant changes took effect from the start of that period even though they occurred during or not until after the end of the period. Unless expressly stated otherwise, relevant changes are all acquisitions, divestments and/or GHG emission calculation methodology changes. For example, when we adjust the FY2020 baseline year for our operational GHG emission target and goal to compare our adjusted FY2026 performance data against it:
This enables a ‘like for like’ comparison that provides the information most relevant to assessing progress against our GHG emissions targets and goals. Also see the definition for Unadjusted.
Adjustments (in respect of our GHG emissions targets and goals)
Calculations to present GHG emissions data on an adjusted basis.
ADR (American Depositary Receipt)
An instrument evidencing American Depositary Shares or ADSs, which trades on a stock exchange in the United States.
ADS (American Depositary Share)
A share issued under a deposit agreement that has been created to permit US-resident investors to hold shares in non-US companies and, if listed, trade them on the stock exchanges in the United States. ADSs are evidenced by American Depositary Receipts, or ADRs, which are the instruments that, if listed, trade on a stock exchange in the United States.
Areas of highest ecosystem value
Natural habitat and critical habitat. Critical habitat includes habitat supporting, or with the potential to support, threatened species and ecosystems, endemic or restricted-range species, and/or migratory or congregatory species.
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ASIC (Australian Securities and Investments Commission)
The Australian Government agency that enforces laws relating to companies, securities, financial services and credit in order to protect consumers, investors and creditors.
Assets
Assets are a set of one or more geographically proximate operations (including open-cut mines and underground mines as well as those under exploration, projects in development or execution phases, sites and operations that are closed or in the closure phase). Assets include our operated and non‑operated assets.
ASX (Australian Securities Exchange)
ASX is a multi-asset class vertically integrated exchange group that functions as a market operator, clearing house and payments system facilitator. It oversees compliance with its listing and operating rules, promotes standards of corporate governance among Australia’s listed companies and helps educate retail investors.
Australian Carbon Credit Units
Australian Carbon Credit Units issued by the Australian Government through a regulatory framework established under the Carbon Credit (Carbon Farming Initiative) Act 2011.
Australian Corporations Act
Corporations Act 2001 (Cth).
Baseline/baseline year (in relation to GHG emissions targets and goals)
A year used as a basis to compare and measure performance of future years.
BHP
BHP Group Limited and its subsidiaries.
BHP Group Limited
BHP Group Limited.
BHP Group Limited share
A fully paid ordinary share in the capital of BHP Group Limited.
BHP Group Limited shareholders
The holders of BHP Group Limited shares.
BHP Group Plc
BHP Group Plc (now known as BHP Group (UK) Ltd) and its subsidiaries.
BHP Group Plc share
A fully paid ordinary share in the capital of BHP Group Plc (now known as BHP Group (UK) Ltd).
BHP Group Plc shareholders
The holders of BHP Group Plc shares (prior to unification of the DLC structure).
BHP Group (UK) Ltd
BHP Group (UK) Ltd (formerly known as BHP Group Plc) and its subsidiaries.
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BHP shareholders
In the context of BHP’s financial results, BHP shareholders refers to the holders of shares in BHP Group Limited.
Biofuel
A fuel, usually a liquid fuel, produced from renewable biological feedstock sources, such as plant material, vegetation or agricultural waste.
Biodiversity
The variability among living organisms from all sources, including inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems. (Convention on Biological Diversity (1992) Article 2).
BMA
The BHP Mitsubishi Alliance.
Board
The Board of Directors of BHP.
BOS
BHP Operating System.
CAF
BHP’s Capital Allocation Framework.
Carbon credit
The reduction or removal of carbon dioxide, or the equivalent amount of a different GHG, using a process that measures, tracks and captures GHGs to compensate for an entity’s GHG emissions emitted elsewhere. Credits may be generated through projects in which GHG emissions are avoided, reduced or removed from the atmosphere or permanently stored (sequestration). Carbon credits are generally created and independently verified in accordance with either a voluntary program or under a regulatory program. The purchaser of a carbon credit can ‘retire’ or ‘surrender’ it to claim the underlying reduction towards their own GHG emissions reduction targets or goals or to meet legal obligations, which is also referred to as carbon offsetting or offsetting.
We define regulatory carbon credits to mean carbon credits used to offset GHG emissions for regulatory compliance in our operational locations (such as the Safeguard Mechanism in Australia).
We define voluntary carbon credits to mean carbon credits generated through projects that reduce or remove GHG emissions outside the scope of regulatory compliance (including Australian Carbon Credit Units not used for regulatory compliance).
Carbon dioxide equivalent
The universal unit of measurement to indicate the global warming potential (GWP) of each GHG, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different GHGs against a common basis.
Carbon neutral
Making or resulting in no net release of GHG emissions into the atmosphere, including as a result of offsetting. Carbon neutral includes all those GHG emissions as defined for BHP reporting purposes.
CBWT (context-based water targets)
Context-based water targets aim to address the water challenges shared by BHP and other stakeholders in the regions where we operate. These targets are informed by WRSAs, and our own internal catchment assessment of water‑related risks and opportunities.
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CMD
Coal mine dust.
CEO Water Mandate
The CEO Water Mandate is a UN Global Compact initiative that mobilises business leaders on water, sanitation and the Sustainable Development Goals. Companies that endorse the CEO Water Mandate commit to continuous progress against six core elements of their water stewardship practice and in so doing, better understand and manage their own water risks. The six core areas are: Direct Operations, Supply Chain & Watershed Management, Collective Action, Public Policy, Community Engagement and Transparency. BHP is an active signatory of the Mandate.
Commercial
Our Commercial function seeks to maximise commercial and social value while minimising costs across the end-to-end supply chain. The function is organised around core activities in our value chain.
Community complaint
A verbal or written notification made to BHP by a member of the community relating to an alleged adverse impact on the community arising from BHP’s activities and/or employee or contractor behaviour in part or in whole.
Community concern
Broadly classified as any communication to BHP by a member of the community where an issue has not yet necessarily occurred but has the potential/likelihood to escalate into a formal complaint.
Company
BHP Group Limited and its subsidiaries.
Continuing operations
Assets/operations/entities that are owned and/or operated by BHP, excluding assets/operations/entities classified as Discontinued operations.
CTAP 2024
BHP’s second Climate Transition Action Plan, published on 27 August 2024.
Discontinued operations
Assets/operations/entities that have either been disposed of or are classified as held for sale in accordance with IFRS 5/AASB 5 Non-current Assets Held for Sale and Discontinued operations.
DLC (Dual Listed Company)
BHP’s Dual Listed Company structure had two parent companies (BHP Group Limited and BHP Group Plc (now known as BHP Group (UK) Ltd)) operating as a single economic entity as a result of the DLC merger. The DLC structure was unified on 31 January 2022.
DLC merger
The Dual Listed Company merger between BHP Group Limited and BHP Group Plc (now known as BHP Group (UK) Ltd) on 29 June 2001.
Ecosystem
A dynamic complex of plant, animal and microorganism communities and the non‑living environment, interacting as a functional unit. (Convention on Biological Diversity (1992) Article 2; Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (2019) Global Assessment Report on Biodiversity and Ecosystem Services).
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Ecosystem services
The contributions of ecosystems to the benefits that are used in economic and other human activity. (United Nations et al. (2021) System of Environmental-Economic Accounting – Ecosystem Accounting).
ELT (Executive Leadership Team)
The Executive Leadership Team directly reports to the Chief Executive Officer and is responsible for the day-to-day management of BHP and leading the delivery of our strategic objectives.
Emission factor
A factor that converts activity data into GHG emissions data (e.g. kg CO2-e emitted per GJ of fuel consumed, kg CO2-e emitted per kWh of electricity used).
Energy (in relation to BHP)
Energy means all forms of energy products where ‘energy products’ means combustible fuels, heat, renewable energy, electricity or any other form of energy from operations that are owned or controlled by BHP. The primary sources of energy consumption come from fuel consumed by haul trucks at our operated assets, as well as purchased electricity used at our operated assets.
Entrained (in relation to water)
Entrained water includes water incorporated into product and/or waste streams, such as tailings, that cannot be easily recovered.
Equity share approach (in relation to GHG emissions data)
A consolidation approach whereby a company accounts for GHG emissions from operations according to its share of equity in the operation. The equity share reflects economic interest, which is the extent of rights a company has to the risks and rewards flowing from an operation. Also see the definition for Operational control approach.
ESG
Environmental, social and governance.
Executive KMP (Key Management Personnel)
Executive Key Management Personnel includes the Executive Director (our CEO), the Chief Financial Officer, the President Australia and the President Americas. It does not include the Non-executive Directors (on our Board).
Fugitive methane emissions
Methane emissions that are not physically controlled but result from the intentional or unintentional releases of methane from coal mining.
Functions
Functions operate along global reporting lines to provide support to all areas of the organisation. Functions have specific accountabilities and deep expertise in areas such as finance, legal, governance, technology, human resources, corporate affairs, health, safety and community.
Future-facing commodity
A commodity that BHP determines to be positively leveraged in the energy transition and broader global response to climate change, with potential for decades-long demand growth to support emerging global trends like electrification and decarbonisation. Currently, the major commodities in the BHP portfolio that fall within this criterion include copper and potash.
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Gearing ratio
The ratio of net debt to net debt plus net assets.
GHG (greenhouse gas)
For BHP reporting purposes, these are the aggregate anthropogenic carbon dioxide equivalent emissions of carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). Nitrogen trifluoride (NF3) GHG emissions are currently not relevant for BHP reporting purposes. GHG emissions in this Annual Report are presented in tonnes CO2-e or its multiples, unless otherwise stated.
GISTM
Global Industry Standard on Tailings Management.
Goal (for BHP with respect to GHG emissions)
An ambition to seek an outcome for which there is no current pathway(s), but for which efforts are being made or will be pursued towards addressing that challenge, subject to certain assumptions or conditions. Such efforts may include the resolution of existing potential or emerging pathways.
Goals of the Paris Agreement
The central objective of the Paris Agreement is its long-term temperature goal to hold the global average temperature increase to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre‑industrial levels.
Green ammonia
Ammonia produced by synthetically combining nitrogen with low to zero GHG emission hydrogen (ammonia synthesis) using renewable or other low to zero GHG emissions electricity.
Grievance
An event or community complaint relating to an adverse impact/event that has escalated to the point where a third-party intervention or adjudication is required to resolve it.
GRI (Global Reporting Initiative)
The Global Reporting Initiative works with businesses and governments to understand and communicate their impact on critical sustainability issues.
Groundwater
Water beneath the earth’s surface, including beneath the seabed, which fills pores or cracks between porous media, such as soil, rock, coal and sand, often forming aquifers. Groundwater may be abstracted for use from bore fields or accessed via dewatering to access ore. For accounting purposes, water that is entrained in the ore can be considered as groundwater.
Group
BHP Group Limited and its subsidiaries.
GWP (Global Warming Potential(s))
A factor describing the radiative forcing impact (degree of harm to the atmosphere) of one unit of a given GHG relative to one unit of CO2. BHP currently uses GWP from the Intergovernmental Panel on Climate Change (IPCC) Assessment Report 5 (AR5) based on a 100-year timeframe.
HPI (high potential injuries)
High potential injuries are recordable injuries and first aid cases where there was the potential for a fatality.
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ICMM (International Council on Mining and Metals)
The International Council on Mining and Metals is an international organisation dedicated to a safe, fair and sustainable mining and metals industry.
ICMM Nature Position Statement
This position statement sets out ICMM members’ approach to contributing to a nature-positive future guided by the Kunming-Montreal Global Biodiversity Framework (GBF) 2030 targets and ICMM’s existing commitments in relation to Indigenous peoples, climate change, water and respecting human rights in accordance with the United Nations Guiding Principles on Business and Human Rights (UNGPs).
IFRS (International Financial Reporting Standards)
Accounting standards as issued by the International Accounting Standards Board.
Indigenous Peoples Policy Statement
Articulates BHP’s approach to engaging with and supporting Indigenous peoples.
IPCC (Intergovernmental Panel on Climate Change)
The Intergovernmental Panel on Climate Change is the United Nations body for assessing the science related to climate change.
IUCN (International Union for Conservation of Nature)
The International Union for Conservation of Nature is an international organisation working in the field of nature conservation and sustainable use of natural resources.
KMP (Key Management Personnel)
Key Management Personnel includes the roles which have the authority and responsibility for planning, directing and controlling the activities of BHP. These are Non-executive Directors, the CEO, the Chief Financial Officer, the President Australia, and the President Americas.
KPI (key performance indicator)
Used to measure the performance of the Group, individual businesses and executives in any one year.
Kunming-Montreal Global Biodiversity Framework
The Kunming-Montreal Global Biodiversity Framework is a set of targets and goals adopted by the 15th Conference of Parties (COP15) to the United Nations Convention on Biological Diversity (CBD) in December 2022 that aims to address the loss of biodiversity and restore natural ecosystems by 2030.
Land disturbed
Land that is physically impacted by the activities of the business that substantially alters the pre-existing habitats and land cover.
Land owned, leased or managed
Includes mining tenements, exploration leases, quarries, ports, load out facilities, desalination plants, wind farms, leasehold land, freehold land, agricultural land, offshore operations, easements, areas where BHP holds sub-surface rights only, areas managed by BHP through agreements with third parties and areas managed for conservation-regulatory (e.g. offset areas). This includes greenfield exploration licences (or equivalent tenements), which are outside the area of influence of our existing mine operations.
Land under rehabilitation
Land where necessary treatment has been undertaken to achieve the pre-disturbance land use or an alternate land use developed in consultation with stakeholders, and where no further land disturbance is planned other than maintenance activities.
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Legacy assets
Legacy assets refer to those BHP operated assets, or part thereof, located in the Americas that are in the closure phase.
LME (London Metal Exchange)
A major futures exchange for the trading of industrial metals.
Location-based (in relation to reporting GHG emissions data)
Scope 2 emissions based on average energy generation emission factors for defined geographic locations, including local, subnational, or national boundaries (i.e. grid factors). In the case of a direct line transfer, the location-based emissions are equivalent to the market-based emissions.
Lower GHG emission(s) (for shipping)
Capable of between 5 per cent to 80 per cent lower GHG emissions intensity (gCO2 -e/joule) on a well-to-wake basis compared to conventional fossil fuels used in shipping.
Lower GHG emission(s) (other than shipping fuels)
Capable of lower absolute GHG emissions or GHG emissions intensity than the current state or the conventional or incumbent technology, as applicable.
Low to zero GHG emission(s) (for energy products other than shipping fuels)
Capable of between 90 per cent to 100 per cent lower GHG emissions intensity during generation and/or combustion (as applicable) compared to conventional fossil fuel generation and/or combustion.
Low to zero GHG emission(s) (for shipping)
Capable of between 81 per cent to 100 per cent lower GHG emissions intensity (gCO2-e/joule) on a well-to-wake basis compared to conventional fossil fuels used in shipping.
Market-based method (in relation to reporting GHG emissions data)
Scope 2 emissions based on the generator(s) supplying the electricity (and therefore the generation fuel mix from which the reporter contractually purchases electricity and/or is directly provided electricity via a direct line transfer).
MFL (Maximum Foreseeable Loss)
The MFL is the estimated impact to BHP if a risk were to materialise in a worst-case scenario without regard to probability and assuming all controls are ineffective.
Nature
The natural world, with an emphasis on the diversity of living organisms (including people) and their interactions among themselves and with their environment. (TNFD Glossary of Key Terms Version 6.0).
Nature-positive
A global societal goal defined as ‘halt and reverse nature loss by 2030 on a 2020 baseline, and achieve full recovery by 2050’ (Taskforce on Nature-related Financial Disclosures (TNFD) Glossary of Key Terms Version 6.0).
Net zero (for a BHP GHG emissions target, goal or pathway, or similar)
Net zero includes the use of carbon credits as governed by BHP’s approach to carbon offsetting, available at bhp.com/climate.
Net zero (for industry sectors, the global economy, transition or future, or similar)
Net zero refers to a state in which the GHGs (as defined in this Glossary) going into the atmosphere are balanced by removal out of the atmosphere.
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Near zero emissions (for steelmaking or ironmaking)
0.40 tonnes of CO2 -e per tonne of crude steel for 100 per cent ore-based production (no scrap), as defined by the International Energy Agency (IEA) and implemented in Responsible Steel International Standard V2.0 (‘near zero’ performance level 4 threshold). IEA (2022), Achieving Net Zero Heavy Industry Sectors in G7 Members, IEA, Paris, License: CC BY 4.0, which also describes the boundary for the emission intensity calculation (including in relation to upstream emissions).
NGER (National Greenhouse and Energy Reporting Scheme)
The Australian National Greenhouse and Energy Reporting scheme is a single national framework for reporting and disseminating company information about GHG emissions, energy production, energy consumption and other information specified under the National Greenhouse and Energy Reporting Act 2007.
NOJV (non-operated asset/non-operated joint venture)
Non-operated assets/non-operated joint ventures are our interests in assets that are owned as a joint venture but not operated by BHP. References in this Annual Report to a ‘joint venture’ are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are not intended to characterise the legal relationship between the owners of the asset.
NSWEC
New South Wales Energy Coal.
Occupational illness
An illness that occurs as a consequence of work-related activities or exposure. It includes acute or chronic illnesses or diseases, which may be caused by inhalation, absorption, ingestion or direct contact.
OECD
Organisation for Economic Co-operation and Development.
OELs (occupational exposure limits)
An OEL is an upper limit on the acceptable concentration of a hazardous substance in workplace air for a particular material or class of materials. OELs may also be set for exposure to physical agents, such as noise, vibration or radiation.
Offsetting (in relation to GHG emissions)
The use of carbon credits. Refer to the definition of carbon credit.
OFR
BHP’s Operating and Financial Review for the year ended 30 June 2026.
Onshore US
BHP’s Petroleum asset (divested in the year ended 30 June 2019) in four US shale areas (Eagle Ford, Permian, Haynesville and Fayetteville), where we produced oil, condensate, gas and natural gas liquids.
Operated assets
Operated assets are our assets (including those under exploration, projects in development or execution phases, sites and operations that are closed or in the closure phase) that are wholly owned and operated by BHP or that are owned as a BHP-operated joint venture. References in this Annual Report to a ‘joint venture’ are used for convenience to collectively describe assets that are not wholly owned by BHP. Such references are not intended to characterise the legal relationship between the owners of the asset.
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Operational control approach (in relation to GHG emissions data)
A consolidation approach whereby a company accounts for 100 per cent of the GHG emissions over which it has operational control (a company is considered to have operational control over an operation if it or one of its subsidiaries has the full authority to introduce and implement its operating policies at the operation). It does not account for GHG emissions from operations in which it owns an interest but does not have operational control. Also see the definition for Equity share approach.
Operational GHG emissions
Our operational GHG emissions are the Scope 1 emissions and Scope 2 emissions from our operated assets.
Operations
Open-cut mines, underground mines and processing facilities, which in the case of BHP are within our operated assets.
OZ Minerals Brazil assets
Former OZ Minerals Brazil operations, projects and exploration tenements located in Brazil and acquired as part of the acquisition of OZ Minerals completed on 2 May 2023.
Paris Agreement
The Paris Agreement is an agreement between countries party to the United Nations Framework Convention on Climate Change to strengthen efforts to combat climate change and adapt to its effects, with enhanced support to assist developing countries to do so.
Partner, partnership, to partner (or similar)
A reference used for convenience to describe relationships intended to be collaborative and/or mutually beneficial. Such references are not intended to characterise the legal relationship between the parties, unless stated otherwise.
PEELP
Argentina’s Long-Term Strategic Export Projects designation.
Petroleum (asset group)
A group of oil and gas assets formerly operated by BHP before its merger with Woodside in June 2022. Petroleum’s core production operations were located in the US Gulf of Mexico, Australia and Trinidad and Tobago. Petroleum produced crude oil and condensate, gas and natural gas liquids.
Physical climate-related risk
Acute risks that are event-driven, including increased severity and/or frequency of extreme climatic events and chronic risks resulting from longer-term changes in climate patterns.
PPA (power purchase agreement)
An agreement between a vendor and purchaser for the sale of electricity, which may be wholly or partially renewable or other low to zero GHG emissions energy and either physically supplied directly to the purchaser or for supply from an electricity grid.
PPE (personal protective equipment)
PPE means anything used or worn to minimise risk to a worker’s health and safety, including air supplied respiratory equipment.
PoC
Proof-of-concept.
Record date (in relation to dividends)
The date, determined by a company’s board of directors, by when an investor must be recorded as an owner of shares in order to qualify for a forthcoming dividend.
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Reference year (for a BHP GHG emissions target or goal)
A year used to track progress towards GHG emissions targets and goals. It is not a baseline for GHG emissions targets and goals.
RIGI
Argentina’s incentive regime for large investments.
Safeguard Mechanism
A mechanism established in Australia under the National Greenhouse and Energy Reporting Act 2007 to keep certain GHG emissions at or below legislated limits, known as baselines, for Australia’s largest industrial facilities. Reforms to the Safeguard Mechanism that applied from 1 July 2023 are intended to reduce Scope 1 emissions at Australia’s largest industrial facilities on a trajectory consistent with achieving Australia’s GHG emission reduction targets of 43 per cent below 2005 levels by 2030 and net zero by 2050. Facilities that exceed their progressively declining legislated baselines may apply Australian Carbon Credit Units to meet the compliance obligations.
SASB (Sustainability Accounting Standards Board)
The Sustainability Accounting Standards Board is a non-profit organisation that develops standards focused on the financial impacts of sustainability.
Scope 1 emissions (GHG emissions)
Scope 1 emissions are direct GHG emissions from operations that are owned or controlled by the reporting company. For BHP, these are primarily GHG emissions from fuel consumed by haul trucks at our operated assets, as well as fugitive methane emissions from coal production at our operated assets.
Scope 2 emissions (GHG emissions)
Scope 2 emissions are indirect GHG emissions from the generation of purchased or acquired electricity, steam, heat or cooling that is consumed by operations that are owned or controlled by the reporting company. BHP’s Scope 2 emissions have been calculated using the market-based method and the location-based method, as specified.
Scope 3 emissions (GHG emissions)
Scope 3 emissions are all other indirect GHG emissions (not included in Scope 2 emissions) that occur in the reporting company’s value chain. For BHP, these are primarily emissions resulting from our customers using and processing the commodities we sell, as well as upstream emissions associated with the extraction, production and transportation of the goods, services, fuels and energy we purchase for use at our operations; emissions resulting from the transportation and distribution of our products; and operational emissions (on an equity basis) from our non-operated joint ventures.
SEC (United States Securities and Exchange Commission)
The US regulatory commission that aims to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation.
Shareplus
BHP’s all-employee share purchase plan.
Social investment
Social investment is our voluntary contribution towards projects or donations with the primary purpose of contributing to the resilience of the communities where we operate and the environment, aligned with our broader business priorities.
Social value
Our positive contribution to society through the creation of mutual benefit for BHP, our shareholders, Indigenous partners and the broader community.
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South32
During FY2015, BHP demerged a selection of our alumina, aluminium, coal, manganese, nickel, silver, lead and zinc assets into a new company – South32 Limited.
Steelmaking coal
Metallurgical coal of a sufficient high quality (grade) that it is suitable for use in steelmaking. Refer to Additional information 10.1 for the definition of metallurgical coal and coking coal.
Structural GHG emissions abatement
Actions taken at a source of GHG emissions to avoid generating GHG emissions. For BHP, this includes contractual power purchase agreements.
Surface water
All water naturally open to the atmosphere, including rivers, lakes and creeks and external water dams but excluding water from oceans, seas and estuaries (e.g. precipitation and runoff, including snow and hail).
Sustainability (including sustainable and sustainably)
We describe our approach to sustainability and its governance in this Annual Report, including OFR 1 and OFR 9. Our references to sustainability (including sustainable and sustainably) in this Annual Report and our other disclosures do not mean we will not have any adverse impact on the economy, the environment or society, and do not imply we will necessarily give primacy to consideration of or achieve any absolute outcome in relation to any one economic, environmental or social issue (such as zero GHG emissions or other environmental effects).
Sustainability Report
BHP’s report of that title containing our climate-related disclosures in accordance with the Australian Corporations Act and AASB S2 for the year ended 30 June 2026, which is contained within this Annual Report.
S-K 1300
Subpart 1300 of Regulation S-K (17 CFR 229.1300 et seq.), which sets forth the SEC’s disclosure requirements for registrants engaged in mining operations.
Target (for BHP with respect to GHG emissions)
An intended outcome in relation to which we have identified one or more pathways for delivery of that outcome, subject to certain assumptions or conditions.
TCFD (Task Force on Climate-related Financial Disclosures)
The task force created by the Financial Stability Board to improve and increase reporting of climate-related financial information, which released recommendations designed to help companies provide better information to investors and others about how they think about and assess climate-related risks and opportunities. The TCFD has now fulfilled its remit and disbanded and the Financial Stability Board has asked the IFRS Foundation to take over the monitoring of the progress of companies’ climate-related disclosures.
TNFD (Taskforce on Nature-related Financial Disclosures)
The Taskforce on Nature-related Financial Disclosures is a global, market-led initiative that has developed a set of disclosure recommendations and guidance for organisations to assess, report and act on evolving nature-related dependencies, impacts, risks and opportunities.
Transition risk (climate-related)
Risks that arise from existing and emerging policy, regulatory, legal, technological, market and other societal responses to the challenges posed by climate change and the transition to a net zero global economy.
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TRIF (total recordable injury frequency)
The sum of (fatalities + lost-time cases + restricted work cases + medical treatment cases) x 1,000,000 ÷ actual hours worked. Stated in units of per million hours worked. BHP adopts the US Government Occupational Safety and Health Administration guidelines for the recording and reporting of occupational injury and illnesses. TRIF statistics exclude non-operated assets.
TSR (total shareholder return)
Measures the return delivered to shareholders over a certain period through the movements in share price and dividends paid (which are assumed to be reinvested). It is the measure used to compare BHP’s performance to that of other relevant companies under the Long-Term Incentive Plan.
Type 1 (in relation to water quality)
Water of high quality that would require minimal (if any) treatment to meet drinking water standards. This water is considered high quality/high grade in the ICMM ‘Good Practice’ Guide (2nd Edition) (2021).
Type 2 (in relation to water quality)
Water of medium quality that would require moderate treatment to meet drinking water standards (it may have a high salinity threshold of no higher than 5,000 milligrams per litre total dissolved solids and other individual constituents). This water is considered high quality/high grade in the ICMM ‘Good Practice’ Guide (2nd Edition) (2021).
Type 3 (in relation to water quality)
Water of low quality that would require significant treatment to meet drinking water standards. It may have individual constituents with high values of total dissolved solids, elevated levels of metals or extreme levels of pH. This type of water also includes seawater. This water is considered low quality/low grade in the ICMM ‘Good Practice’ Guide (2nd Edition) (2021).
Unadjusted (in respect to GHG emissions data)
Unadjusted means calculated to present the GHG emissions data for a reporting year so that any relevant changes that occurred during the year (including acquisitions, divestments and/or methodology changes) are applied only from the date they took effect. Also see the definition for Adjusted.
Underlying attributable profit
Profit/(loss) after taxation attributable to BHP shareholders excluding any exceptional items attributable to BHP shareholders as described in Financial Statements note 3 ‘Exceptional items’. For more information refer to OFR 8.
Underlying EBIT
Earnings before net finance costs, taxation expense, Discontinued operations and any exceptional items. Underlying EBIT includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance costs and taxation expense/(benefit). For more information refer to OFR 8.
Underlying EBITDA
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). For more information refer to OFR 8.1.
Unification
The unification of BHP’s corporate structure under BHP Group Limited as effected on 31 January 2022.
Unit costs
One of the financial measures BHP uses to monitor the performance of individual assets. Unit costs are calculated as ratio of net costs of the assets to the equity share of sales tonnage. Net costs is defined as revenue less Underlying EBITDA and excluding freight, and other costs, depending on the nature of each asset. For information on the method of calculation of the unit costs refer to OFR 8.
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United Nations SDGs (Sustainable Development Goals)
The Sustainable Development Goals, also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
Value chain GHG emissions
Scope 3 emissions in our reported GHG emissions inventory.
WAF (Water Accounting Framework)
A common mining and metals industry approach to water accounting in Australia.
Well-to-wake basis
Inclusive of the GHG emissions across the entire process of fuel production, delivery and use onboard vessels.
WRSA (Water Resource Situational Analysis)
A Water Resource Situational Analysis is an independent catchment-scale assessment of shared water challenges in the regions where BHP operates. Each WRSA is prepared by a credible third party using publicly available information and stakeholder input to describe the sustainability of water resources, governance arrangements, and the social, cultural, environmental and economic values of water within a defined catchment. WRSAs identify shared water challenges, their root causes, and opportunities for collective action. They are public-facing documents and are enabled by, but undertaken independently from, BHP.
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Exhibits
Exhibits marked “*” have been filed (or, where indicated, furnished) as exhibits to this annual report on Form 20-F. Remaining exhibits have been incorporated by reference as indicated.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. Some agreements and other documents contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement or other arrangement and (i) should not be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement; (iii) may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and (iv) were made only as of the date of the applicable agreement or document or such other date or dates as may be specified in the agreement and are subject to more recent developments. Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time.
Exhibit 1 |
Constitution |
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1.1 |
Constitution of BHP Group Limited, incorporating the amendments approved by shareholders at the 2022 General Meeting of BHP Group Limited on 20 January 2022 (incorporated by reference to Exhibit 1.1 to BHP Group Limited’s Annual Report on Form 20-F (File No.: 001-09526) filed with the Securities and Exchange Commission on 6 September 2022) |
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Exhibit 2 |
Securities |
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*2.1 |
Description of Securities |
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2.2 |
Indenture, dated as of 28 February 2023, among BHP Billiton Finance (USA) Limited, BHP Group Limited and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 to BHP Group Limited’s Report on Form 6-K (File No.: 001-09526) filed with the Securities and Exchange Commission on 28 February 2023) |
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Exhibit 4 |
Material Contracts |
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*4.1 |
Summary of Terms of Employment for Specified Executive (referred to in this Annual Report as the Key Management Personnel) |
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4.2 |
BHP Group Limited Equity and Cash Incentive Plan Rules, adopted on 25 September 2023 (incorporated by reference to Exhibit 4.2 to BHP Group Limited’s Annual Report on Form 20-F (File No.: 001-09526) filed with the Securities and Exchange Commission on 30 August 2024) |
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4.3 |
Settlement Agreement entered into on 25 October 2024 between Samarco Mineração S.A., Vale S.A. and BHP Billiton Brasil Ltda, the Federal Government of Brazil, the states of Espirito Santo and Minas Gerais and certain other public authorities in Brazil (incorporated by reference to Exhibit 4.3 to BHP Group Limited’s Annual Report on Form 20-F (File No.: 001-09526) filed with the Securities and Exchange Commission on 22 August 2025) |
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Exhibit 8 |
List of Subsidiaries |
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*8.1 |
List of subsidiaries of BHP Group Limited |
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Exhibit 11 |
Insider Trading Policies |
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11.1 |
Securities Dealing Policy of BHP Group Limited (incorporated by reference to Exhibit 11.1 to BHP Group Limited’s Annual Report on Form 20-F (File No.: 001-09526) filed with the Securities and Exchange Commission on 22 August 2025) |
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Exhibit 12 |
Certifications (section 302) |
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*12.1 |
Certification by Chief Executive Officer, Mr Brandon Craig, dated 18 August 2026 |
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*12.2 |
Certification by Chief Financial Officer, Ms Vandita Pant, dated 18 August 2026 |
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Exhibit 13 |
Certifications (section 906) |
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*13.1 |
Certification by Chief Executive Officer, Mr Brandon Craig, dated 18 August 2026 (1) |
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*13.2 |
Certification by Chief Financial Officer, Ms Vandita Pant, dated 18 August 2026 (1) |
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Exhibit 15 |
Consents |
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*15.1 |
Consent of Independent Registered Public Accounting Firm Ernst & Young to the incorporation by reference of audit reports in the registration statements on Form F-3 and Form S-8 |
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*15.2 |
Consents of Qualified Persons for Technical Report Summary for Minera Escondida Limitada |
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*15.3 |
Consents of Qualified Persons for Technical Report Summary for Western Australia Iron Ore |
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*15.4 |
Consents of Qualified Persons for Technical Report Summary for Jansen Potash Project |
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Exhibit 17 |
Guaranteed Securities |
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*17.1 |
List of subsidiary guarantors and issuers of guaranteed securities |
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Exhibit 96 |
Technical Report Summaries |
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*96.1 |
Technical Report Summary for Minera Escondida Limitada, effective 30 June 2022(2) |
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*96.2 |
Technical Report Summary for Western Australia Iron Ore, effective 30 June 2026 |
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*96.3 |
Technical Report Summary for Jansen Potash Project, effective 30 June 2026 |
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Exhibit 97 |
Clawback Policy |
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97.1 |
Malus and Clawback Policy of BHP Group Limited, October 2021 (updated by the People and Remuneration Committee on 1 November 2023) (incorporated by reference to Exhibit 97.1 to BHP Group Limited’s Annual Report on Form 20-F (File No.: 001-09526) filed with the Securities and Exchange Commission on 30 August 2024) |
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Exhibit 101 |
Interactive Data File |
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*101.INS |
Inline XBRL Instance Document |
*101.SCH |
Inline XBRL Taxonomy Extension Schema Document |
*101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
*101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
*101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase Document |
*101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
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Exhibit 104 |
Cover Page Interactive Data File |
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*104 |
Cover page Interactive Data File (embedded within the Inline XBRL document) |
Footnotes
The total amount of long-term debt securities of BHP Group Limited and its subsidiaries authorised under any instrument other than those listed above does not exceed 10% of the total assets of BHP Group Limited and its subsidiaries on a consolidated basis. The company agrees to furnish copies of any such instruments to the Commission upon request.
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SIGNATURE
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorised the undersigned to sign this annual report on its behalf.
BHP GROUP LIMITED
By: |
/s/ Vandita Pant |
Name: |
Vandita Pant |
Title: |
Chief Financial Officer |
Date: |
18 August 2026 |
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Financial Statements
1 |
Consolidated Financial Statements |
F-1 |
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1.1 |
Consolidated Income Statement |
F-1 |
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1.2 |
Consolidated Statement of Comprehensive Income |
F-2 |
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1.3 |
Consolidated Balance Sheet |
F-3 |
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1.4 |
Consolidated Cash Flow Statement |
F-4 |
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1.5 |
Consolidated Statement of Changes in Equity |
F-5 |
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1.6 |
Notes to the Financial Statements |
F-10 |
1A |
Reports of Independent Registered Public Accounting Firm (Auditor Firm ID |
F-81 |
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2 |
Not required for US reporting |
F-85 |
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3 |
Directors' declaration |
F-85 |
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4 |
Not required for US reporting |
F-85 |
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5 |
Included as section 1A |
F-85 |
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Notes to the Financial Statements |
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Performance |
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1 |
Segment reporting |
F-10 |
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2 |
Revenue |
F-12 |
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3 |
Exceptional items |
F-13 |
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4 |
Significant events – Samarco dam failure |
F-16 |
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5 |
Expenses and other income |
F-24 |
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6 |
Income tax expense |
F-25 |
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7 |
Earnings per share |
F-28 |
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Working capital |
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8 |
Trade and other receivables |
F-29 |
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9 |
Trade and other payables |
F-29 |
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10 |
Inventories |
F-30 |
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Resource assets |
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11 |
Property, plant and equipment |
F-31 |
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12 |
Intangible assets |
F-34 |
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13 |
Impairment of non-current assets |
F-35 |
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14 |
Deferred tax balances |
F-38 |
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15 |
Closure and rehabilitation provisions |
F-40 |
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16 |
Climate change |
F-43 |
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Capital structure |
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17 |
Share capital |
F-47 |
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18 |
Other equity |
F-48 |
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19 |
Dividends |
F-49 |
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20 |
Provisions for dividends and other liabilities |
F-50 |
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Financial management |
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21 |
Net debt |
F-50 |
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22 |
Leases |
F-53 |
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23 |
Net finance costs |
F-56 |
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24 |
Financial risk management |
F-56 |
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Employee matters |
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25 |
Key management personnel |
F-66 |
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26 |
Employee share ownership plans |
F-66 |
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27 |
Employee benefits, restructuring and post-retirement employee benefits provisions |
F-70 |
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Group and related party information |
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28 |
Subsidiaries |
F-72 |
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29 |
Investments accounted for using the equity method |
F-73 |
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30 |
Interests in joint operations |
F-77 |
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31 |
Related party transactions |
F-77 |
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Unrecognised items and uncertain events |
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32 |
Contingent liabilities |
F-78 |
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33 |
Subsequent events |
F-79 |
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Other items |
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34 |
Auditor’s remuneration |
F-79 |
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35 |
Not required for US reporting |
F-80 |
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36 |
Not required for US reporting |
F-80 |
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37 |
New and amended accounting standards and interpretations and changes to accounting policies |
F-80 |
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Table of Contents
1.1 Consolidated Income Statement for the year ended 30 June 2026
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2026 |
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2025 |
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2024 |
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Notes |
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US$M |
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US$M |
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US$M |
Revenue |
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2 |
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Other income |
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5 |
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Expenses excluding net finance costs |
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5 |
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( |
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( |
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( |
Profit/(loss) from equity accounted investments, related impairments and expenses |
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29 |
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( |
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Profit from operations |
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Financial expenses |
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( |
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( |
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( |
Financial income |
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Net finance costs |
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23 |
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( |
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( |
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( |
Profit before taxation |
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Income tax expense |
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( |
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( |
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( |
Royalty-related taxation (net of income tax benefit) |
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( |
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( |
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( |
Total taxation expense |
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6 |
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( |
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( |
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( |
Profit after taxation |
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Attributable to non-controlling interests |
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Attributable to BHP shareholders |
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Basic earnings per ordinary share (cents) |
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7 |
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Diluted earnings per ordinary share (cents) |
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7 |
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The accompanying notes form part of these Financial Statements.
F-1
Table of Contents
1.2 Consolidated Statement of Comprehensive Income for the year ended 30 June 2026
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2026 |
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2025 |
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2024 |
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Notes |
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US$M |
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US$M |
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US$M |
Profit after taxation |
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Other comprehensive income |
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Items that may be reclassified subsequently to the income statement: |
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Hedges: |
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(Losses)/gains taken to equity |
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( |
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( |
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Losses/(gains) transferred to the income statement |
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( |
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Tax recognised within other comprehensive income |
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6 |
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( |
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Total items that may be reclassified subsequently to the income |
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( |
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( |
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Items that will not be reclassified to the income statement: |
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Re-measurement (losses)/gains on pension and medical schemes |
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( |
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( |
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Equity investments held at fair value |
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( |
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Tax recognised within other comprehensive income |
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6 |
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( |
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Total items that will not be reclassified to the income statement |
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( |
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Total other comprehensive (loss)/income |
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( |
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( |
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Total comprehensive income |
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Attributable to non-controlling interests |
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Attributable to BHP shareholders |
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The accompanying notes form part of these Financial Statements.
F-2
Table of Contents
1.3 Consolidated Balance Sheet as at 30 June 2026
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2026 |
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2025 |
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Notes |
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US$M |
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US$M |
ASSETS |
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Current assets |
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Cash and cash equivalents |
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21 |
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Trade and other receivables |
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8 |
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Other financial assets |
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24 |
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Inventories |
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10 |
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Current tax assets |
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Other |
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Total current assets |
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Non-current assets |
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Trade and other receivables |
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8 |
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Other financial assets |
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24 |
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Inventories |
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10 |
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Property, plant and equipment |
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11 |
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Intangible assets |
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12 |
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Investments accounted for using the equity method |
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29 |
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Non-current tax assets |
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Deferred tax assets |
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14 |
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Other |
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Total non-current assets |
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Total assets |
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LIABILITIES |
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Current liabilities |
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Trade and other payables |
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9 |
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Interest bearing liabilities |
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21 |
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Other financial liabilities |
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24 |
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Current tax payable |
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Provisions |
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4,15,20,27 |
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Deferred income |
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Total current liabilities |
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Non-current liabilities |
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Trade and other payables |
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9 |
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Interest bearing liabilities |
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21 |
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Other financial liabilities |
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24 |
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Non-current tax payable |
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Deferred tax liabilities |
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14 |
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Provisions |
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4,15,20,27 |
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Deferred income |
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Total non-current liabilities |
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Total liabilities |
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Net assets |
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EQUITY |
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Share capital |
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17 |
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Treasury shares |
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17 |
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( |
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( |
Reserves |
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18 |
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( |
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Retained earnings |
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Total equity attributable to BHP shareholders |
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Non-controlling interests |
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18 |
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Total equity |
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The accompanying notes form part of these Financial Statements.
The Financial Statements were approved by the Board of Directors on 18 August 2026 and signed on its behalf by:
Ross McEwan |
Brandon Craig |
Chair |
Chief Executive Officer |
F-3
Table of Contents
1.4 Consolidated Cash Flow Statement for the year ended 30 June 2026
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2026 |
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2025 |
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2024 |
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Notes |
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US$M |
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US$M |
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US$M |
Operating activities |
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Profit before taxation |
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Adjustments for: |
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Depreciation and amortisation expense |
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Impairments of property, plant and equipment, financial assets and intangibles net of reversals |
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Net finance costs |
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(Profit)/loss from equity accounted investments, related impairments and expenses |
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( |
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( |
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Other |
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( |
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Changes in assets and liabilities: |
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Trade and other receivables |
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( |
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( |
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Inventories |
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( |
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( |
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Trade and other payables |
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( |
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( |
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Provisions and other assets and liabilities |
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( |
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( |
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( |
Cash generated from operations |
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Dividends received |
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Interest received |
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Interest paid |
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( |
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( |
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( |
Proceeds from cash management related instruments |
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Net income tax and royalty-related taxation refunded |
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Net income tax and royalty-related taxation paid |
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( |
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( |
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( |
Net operating cash flows |
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Investing activities |
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Purchases of property, plant and equipment |
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( |
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( |
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( |
Exploration and evaluation expenditure |
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( |
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( |
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( |
Exploration and evaluation expenditure expensed and included in operating cash flows |
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Net investment and funding of equity accounted investments |
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29 |
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( |
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( |
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( |
Proceeds from sale of assets |
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Proceeds from sale of subsidiaries, operations and joint operations, net of their cash |
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Other investing |
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( |
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( |
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( |
Net investing cash flows |
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( |
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( |
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( |
Financing activities |
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Proceeds from interest bearing liabilities |
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Settlements of debt related instruments |
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( |
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( |
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( |
Repayment of interest bearing liabilities |
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( |
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( |
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( |
Proceeds from streaming arrangement liability |
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Settlements of streaming arrangement liability |
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( |
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Distributions to non-controlling interests |
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( |
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( |
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Dividends paid |
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( |
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( |
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( |
Dividends paid to non-controlling interests |
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( |
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( |
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( |
Net financing cash flows |
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( |
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( |
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( |
Net increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents, net of overdrafts, at the beginning of the financial year |
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Foreign currency exchange rate changes on cash and cash equivalents |
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( |
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Cash and cash equivalents, net of overdrafts, at the end of |
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21 |
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The accompanying notes form part of these Financial Statements.
F-4
Table of Contents
1.5 Consolidated Statement of Changes in Equity for the year ended 30 June 2026
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Attributable to BHP shareholders |
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US$M |
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Share |
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Treasury |
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Reserves |
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Retained |
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Total equity |
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Non- |
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Total |
Balance as at 1 July 2025 |
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( |
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( |
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Total comprehensive income |
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( |
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Transactions with owners: |
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Shares issued |
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( |
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Employee share awards exercised net of employee contributions net of tax |
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( |
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( |
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Vested employee share awards that have lapsed, been cancelled or forfeited |
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( |
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Accrued employee entitlement for unexercised awards net of tax |
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Dividends |
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( |
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( |
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( |
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( |
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Transfers within equity on divestment of subsidiaries, operations and joint operations |
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( |
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Equity contributed net of tax |
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Balance as at 30 June 2026 |
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( |
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Balance as at 1 July 2024 |
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( |
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( |
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Total comprehensive income |
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( |
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Transactions with owners: |
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Shares issued |
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( |
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Employee share awards exercised net of |
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( |
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( |
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Vested employee share awards that have lapsed, been cancelled or forfeited |
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( |
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Accrued employee entitlement for unexercised awards net of tax |
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Dividends |
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( |
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( |
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( |
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( |
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Distribution to non-controlling interests |
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( |
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( |
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Balance as at 30 June 2025 |
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( |
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( |
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Balance as at 1 July 2023 |
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( |
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Total comprehensive income |
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( |
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Transactions with owners: |
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Shares issued |
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( |
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Employee share awards exercised net of employee contributions net of tax |
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( |
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( |
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Vested employee share awards that have lapsed, been cancelled or forfeited |
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( |
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Accrued employee entitlement for unexercised awards net of tax |
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Dividends |
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( |
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( |
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( |
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( |
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Distribution to non-controlling interests |
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( |
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( |
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( |
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( |
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Balance as at 30 June 2024 |
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( |
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( |
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The accompanying notes form part of these Financial Statements.
F-5
Table of Contents
Basis of preparation
The Consolidated Financial Statements (Financial Statements) comprise BHP Group Limited (BHP or the Company) together with its controlled entities (Group) for the year ended 30 June 2026. BHP Group Limited, incorporated and domiciled in Australia, is a for-profit company limited by shares which are publicly traded on the Australian Securities Exchange. BHP Group Limited also has an international secondary listing on the London Stock Exchange (LSE), a secondary listing on the Johannesburg Stock Exchange and is listed on the New York Stock Exchange (NYSE) in the United States.
Directors of BHP have included information in the Financial Statements they deem to be material and relevant to the understanding of the Financial Statements. Disclosure may be considered material and relevant if the dollar amount is significant due to its size or nature, or the information is important to understand the:
The Board of Directors resolved to authorise the issue of the financial report on 18 August 2026.
Basis of preparation and measurement
The Group’s Financial Statements as at and for the year ended 30 June 2026:
The accounting policies are consistently applied by all entities included in the Financial Statements.
In assessing the appropriateness of the going concern assumption over the going concern period, management has stress tested BHP’s most recent financial projections to incorporate a range of potential future outcomes by considering BHP’s principal risks. The Group’s financial forecasts, including downside commodity price and production scenarios, demonstrate that the Group believes that it has sufficient financial resources to meet its obligations as they fall due throughout the going concern period. As such, the Financial Statements continue to be prepared on the going concern basis.
F-6
Table of Contents
Principles of consolidation
A list of significant entities in the Group, including subsidiaries, joint arrangements and associates at 30 June 2026 is contained in note 28 'Subsidiaries', note 29 'Investments accounted for using the equity method' and note 30 'Interests in joint operations'.
Subsidiaries: The Financial Statements of the Group include the consolidation of BHP Group Limited (the Company or parent entity) and its subsidiaries, being the entities controlled by the parent entity during the year. Control exists where the Group:
The ability to approve the operating and capital budget of an entity and the ability to appoint key management personnel are decisions (among others) that demonstrate that the Group has the existing rights to direct the relevant activities of an entity.
Where the Group’s interest is less than 100 per cent, the interest attributable to outside shareholders is reflected in non-controlling interests.
Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Company.
The financial information of subsidiaries is prepared for the same reporting period as the Group. The acquisition method of accounting is used to account for the Group’s business combinations.
Joint arrangements: The Group undertakes a number of business activities through joint arrangements, which exist when two or more parties have joint control. Joint arrangements are classified as either joint operations or joint ventures, based on the contractual rights and obligations between the parties to the arrangement:
The Group accounts for the assets, liabilities, revenue and expenses relating to its interest in a joint operation in accordance with the IFRS Standards applicable to the particular assets, liabilities, revenue and expenses.
Associates: The Group accounts for investments in associates using the equity method as outlined below. An entity is considered an associate where the Group is deemed to have significant influence but not control or joint control. Significant influence is presumed to exist where the Group:
The Group uses the term ‘equity accounted investments’ to refer to joint ventures and associates collectively.
F-7
Table of Contents
Under the equity method, an investment in an associate or a joint venture is recognised initially at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interest in that associate or joint venture, the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.
The financial information of joint arrangements is prepared for the same reporting period as the Group. 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.
Foreign currencies
Transactions related to the Group’s worldwide operations are conducted in a number of foreign currencies. The majority of the subsidiaries, joint arrangements and associates within each of the operations have assessed US dollars as the functional currency. Subsidiaries, joint arrangements and associates that have functional currencies other than US dollars are not material to the financial performance or the financial position of the Group.
Foreign exchange gains and losses are recognised in the income statement, except for qualifying cash flow hedges (which are deferred to equity) and foreign exchange gains or losses on foreign currency provisions for site closure and rehabilitation costs (which are capitalised in property, plant and equipment for operating sites).
Significant judgements and estimates The Group’s accounting policies require the use of judgement, estimates and assumptions. All judgements, estimates and assumptions are based on the most current facts and circumstances and are reassessed on an ongoing basis. Actual results in future reporting periods may differ for these estimates under different assumptions and conditions. Further information regarding the Group’s significant judgements and key estimates and assumptions, being those where changes may materially affect financial results and the carrying amount of assets and liabilities to be reported in the next reporting period, are embedded within the following notes:
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Note |
|
4 |
Significant events – Samarco dam failure |
6 |
Taxation |
11 |
Overburden removal costs |
11 |
Depreciation of property, plant and equipment |
13 |
Impairment of non-current assets |
15 |
Closure and rehabilitation provisions |
22 |
Leases |
24 |
Streaming arrangement liability |
29 |
Investments accounted for using the equity method |
Additional information including sensitivity analysis, where appropriate, has been provided in the relevant notes to enhance an understanding of the impact of key estimates and assumptions on the Group’s financial position and performance. Reserve estimates Estimates are used in the determination of stripping ratios and mineral reserves by component. For purposes of the Group’s Financial Statements, reserves estimates are based on internally generated, projected long-term commodity prices and current operating costs used in studies for development projects. In order to estimate reserves, assumptions are required about a range of technical and economic factors, including quantities, qualities, production techniques, recovery efficiency, production and transport costs, commodity supply and demand, commodity and carbon prices and exchange rates. Estimating the quantity and/or quality of reserves requires the size, shape and depth of ore bodies to be determined by analysing geological data, such as drilling samples and geophysical survey interpretations. Economic assumptions used to estimate reserves change from period-to-period as additional technical and operational data is generated. This process may require complex and difficult geological judgements to interpret the data. |
|
F-8
Table of Contents
Reserve impact on financial reporting Estimates of reserves may change from period-to-period as the economic assumptions used to estimate reserves change and additional geological data is generated during the course of operations. Changes in reserves may affect the Group’s financial results and financial position in a number of ways, including: • asset carrying values and carrying values of the other financial liability associated with the Antamina silver streaming agreement may be affected due to changes in estimated future production levels • depreciation, depletion and amortisation charged to the income statement may change where such charges are determined on the units of production basis, or where the useful economic lives of assets change • overburden removal costs recorded on the balance sheet or charged to the income statement may change due to changes in stripping ratios or the units of production basis of depreciation • closure and rehabilitation provisions may change where changes in estimated reserves affect expectations about the timing or cost of these activities • the carrying amount of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits |
F-9
Table of Contents
1.6 Notes to the Financial Statements
Performance
Reportable segments
The Group operated
Reportable segment |
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Principal activities |
Copper |
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Mining of copper, uranium, gold, zinc, molybdenum and silver |
Iron Ore |
|
Mining of iron ore |
Coal |
|
Mining of steelmaking coal and energy coal |
Group and unallocated items includes functions, other unallocated operations including Potash, Western Australia Nickel (comprising the Nickel West operations and the West Musgrave project), legacy assets, the Antamina silver streaming activities 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 2026 |
|
Copper |
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Iron Ore |
|
Coal |
|
Group and |
|
Group |
Revenue |
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|||||
Underlying EBITDA |
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( |
|
||||
Depreciation and amortisation |
|
( |
|
( |
|
( |
|
( |
|
( |
Impairment losses1 |
|
( |
|
( |
|
( |
|
( |
|
( |
Underlying EBIT |
|
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( |
|
||||
Exceptional items2 |
|
|
( |
|
|
( |
|
( |
||
Net finance costs |
|
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|
|
|
|
( |
Profit before taxation |
|
|
|
|
|
|
|
|
|
|
Capital expenditure (cash basis) |
|
|
|
|
|
|||||
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
( |
|
|
|
||||
Investments accounted for using the equity method |
|
|
|
|
|
|||||
Total assets |
|
|
|
|
|
|||||
Total liabilities |
|
|
|
|
|
Year ended 30 June 2025 |
|
Copper |
|
Iron Ore |
|
Coal |
|
Group and |
|
Group |
Revenue |
|
|
|
|
|
|||||
Underlying EBITDA |
|
|
|
|
( |
|
||||
Depreciation and amortisation |
|
( |
|
( |
|
( |
|
( |
|
( |
Impairment losses1 |
|
( |
|
( |
|
( |
|
( |
|
( |
Underlying EBIT |
|
|
|
( |
|
( |
|
|||
Exceptional items2 |
|
|
( |
|
|
( |
|
( |
||
Net finance costs |
|
|
|
|
|
|
|
|
|
( |
Profit before taxation |
|
|
|
|
|
|
|
|
|
|
Capital expenditure (cash basis) |
|
|
|
|
|
|||||
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
( |
|
|
( |
|
|||
Investments accounted for using the equity method |
|
|
|
|
|
|||||
Total assets |
|
|
|
|
|
|||||
Total liabilities |
|
|
|
|
|
F-10
Table of Contents
Year ended 30 June 2024 |
|
Copper |
|
Iron Ore |
|
Coal |
|
Group and |
|
Group |
Revenue |
|
|
|
|
|
|||||
Underlying EBITDA |
|
|
|
|
( |
|
||||
Depreciation and amortisation |
|
( |
|
( |
|
( |
|
( |
|
( |
Impairment losses1 |
|
( |
|
( |
|
( |
|
( |
|
( |
Underlying EBIT |
|
|
|
|
( |
|
||||
Exceptional items2 |
|
|
( |
|
|
( |
|
( |
||
Net finance costs |
|
|
|
|
|
|
|
|
|
( |
Profit before taxation |
|
|
|
|
|
|
|
|
|
|
Capital expenditure (cash basis) |
|
|
|
|
|
|||||
Profit/(loss) from equity accounted investments, related impairments and expenses |
|
|
( |
|
|
( |
|
( |
||
Investments accounted for using the equity method |
|
|
|
|
|
|||||
Total assets |
|
|
|
|
|
|||||
Total liabilities |
|
|
|
|
|
Geographical information
|
|
Revenue by location of customer |
||||
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Australia |
|
|
|
|||
Europe |
|
|
|
|||
China |
|
|
|
|||
Japan |
|
|
|
|||
India |
|
|
|
|||
South Korea |
|
|
|
|||
Rest of Asia |
|
|
|
|||
North America |
|
|
|
|||
South America |
|
|
|
|||
|
|
|
|
|||
|
|
Non-current assets by location of assets |
||||
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Australia |
|
|
|
|||
North America |
|
|
|
|||
South America |
|
|
|
|||
Rest of world |
|
|
|
|||
Unallocated assets1 |
|
|
|
|||
|
|
|
|
|||
Underlying EBITDA
Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any exceptional items. Underlying EBITDA includes BHP's share of profit/(loss) from investments accounted for using the equity method including net finance costs, depreciation, amortisation and impairments and taxation expense/(benefit).
F-11
Table of Contents
Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from period-to-period and provide investors with further clarity in order to assess the performance of the Group’s operations. Management monitors exceptional items separately. Refer to note 3 'Exceptional items' for additional detail.
Segment assets and liabilities
Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities as well as current, non-current and deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted investment.
Revenue by segment and asset
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Escondida |
|
|
|
|||
Pampa Norte |
|
|
|
|||
Copper South Australia |
|
|
|
|||
Third-party products |
|
|
|
|||
Other |
|
|
|
|||
Total Copper1 |
|
|
|
|||
Western Australia Iron Ore |
|
|
|
|||
Third-party products |
|
|
|
|||
Other |
|
|
|
|||
Total Iron Ore |
|
|
|
|||
BHP Mitsubishi Alliance2 |
|
|
|
|||
New South Wales Energy Coal |
|
|
|
|||
Total Coal3 |
|
|
|
|||
Group and unallocated items4 |
|
|
|
|||
Total revenue |
|
|
|
Revenue consists of revenue from contracts with customers of US$
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.
F-12
Table of Contents
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
Revenue from the sale of significant by-products is included within revenue.
The Group applies the following practical expedients:
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 for the year are detailed below.
Year ended 30 June 2026 |
|
Gross |
|
Tax |
|
Net |
|
|
US$M |
|
US$M |
|
US$M |
Exceptional items by category |
|
|
|
|
|
|
Samarco dam failure |
|
( |
|
|
( |
|
Impairment of Jansen project |
|
( |
|
|
( |
|
Total |
|
( |
|
|
( |
|
Attributable to non-controlling interests |
|
|
|
|||
Attributable to BHP shareholders |
|
( |
|
|
( |
Samarco Mineração S.A. (Samarco) dam failure
The loss of US$
Year ended 30 June 2026 |
|
US$M |
Other income |
|
|
Expenses excluding net finance costs: |
|
|
Costs incurred directly by BHP Brasil and other BHP |
|
( |
Profit/(loss) from equity accounted investments, related impairments and expenses: |
|
|
Samarco dam failure provision |
|
( |
Fair value change on forward exchange derivatives |
|
|
Net finance costs |
|
( |
Income tax expense |
|
|
Total1 |
|
( |
Jansen project impairment
The Group recognised an impairment charge of US$
F-13
Table of Contents
The exceptional items relating to the years ended 30 June 2025 and 30 June 2024 are detailed below.
30 June 2025
Year ended 30 June 2025 |
|
Gross |
|
Tax |
|
Net |
|
|
US$M |
|
US$M |
|
US$M |
Exceptional items by category |
|
|
|
|
|
|
Samarco dam failure |
|
( |
|
|
( |
|
Western Australia Nickel (WAN) temporary suspension |
|
( |
|
|
( |
|
Total |
|
( |
|
|
( |
|
Attributable to non-controlling interests |
|
|
|
|||
Attributable to BHP shareholders |
|
( |
|
|
( |
Samarco Mineração S.A. (Samarco) dam failure
The loss of US$
Year ended 30 June 2025 |
|
US$M |
Expenses excluding net finance costs: |
|
|
Costs incurred directly by BHP Brasil and other BHP |
|
( |
Profit/(loss) from equity accounted investments, related impairments and expenses: |
|
|
Samarco dam failure provision |
|
( |
Fair value change on forward exchange derivatives |
|
|
Net finance costs |
|
( |
Income tax expense |
|
|
Total1 |
|
( |
Western Australia Nickel (WAN) temporary suspension
The Nickel West operations and the West Musgrave project at Western Australia Nickel were transitioned into temporary suspension in December 2024.
The Group recognised costs of US$
30 June 2024
Year ended 30 June 2024 |
|
Gross |
|
Tax |
|
Net |
|
|
US$M |
|
US$M |
|
US$M |
Exceptional items by category |
|
|
|
|
|
|
Samarco dam failure |
|
( |
|
( |
|
( |
Impairment of Western Australia Nickel assets |
|
( |
|
|
( |
|
Blackwater and Daunia gain on divestment |
|
|
( |
|
||
Total |
|
( |
|
|
( |
|
Attributable to non-controlling interests |
|
|
|
|||
Attributable to BHP shareholders |
|
( |
|
|
( |
F-14
Table of Contents
Samarco Mineração S.A. (Samarco) dam failure
The loss of US$
Year ended 30 June 2024 |
|
US$M |
Expenses excluding net finance costs: |
|
|
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure |
|
( |
(Loss)/profit from equity accounted investments, related impairments and expenses: |
|
|
Samarco dam failure provision |
|
( |
Fair value change on forward exchange derivatives |
|
( |
Net finance costs |
|
( |
Income tax expense |
|
( |
Total1 |
|
( |
Western Australia Nickel impairment
The Group recognised an impairment charge of US$
Blackwater and Daunia gain on divestment
On 2 April 2024 BHP and Mitsubishi Development Pty Ltd (MDP) completed the divestment of the Blackwater and Daunia mines (which were part of the BHP Mitsubishi Alliance (BMA)) to Whitehaven Coal. Each of BHP and MDP held a
Whitehaven Coal paid a US$
US$
The total cash consideration for the transaction could be up to US$
Details of the gain on divestment was as follows:
|
|
US$M |
Net assets disposed |
|
|
Cash consideration – BHP share |
|
|
Deferred and contingent consideration1 |
|
|
Transaction and other directly attributable costs |
|
( |
Income tax expense |
|
( |
Gain on divestment |
|
F-15
Table of Contents
On 5 November 2015, the Samarco Mineração S.A. (Samarco) iron ore operation in Minas Gerais, Brazil, experienced a tailings dam failure that resulted in a release of mine tailings, flooding the communities of Bento Rodrigues, Gesteira and Paracatu de Baixo and impacting other communities downstream (the Samarco dam failure).
Samarco is jointly owned by BHP Billiton Brasil Ltda. (BHP Brasil) and Vale S.A. (Vale). BHP Brasil’s
Any charges relating to the Samarco dam failure incurred directly by BHP Brasil or other BHP entities are recognised
The financial impacts of the Samarco dam failure on the Group’s income statement, balance sheet and cash flow statement for the year ended 30 June 2026 are shown in the tables below and have been treated as an exceptional item.
Financial impacts of Samarco dam failure |
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Income statement |
|
|
|
|
|
|
Other income1 |
|
|
|
|||
Expenses excluding net finance costs: |
|
|
|
|
|
|
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure2 |
|
( |
|
( |
|
( |
Profit/(loss) from equity accounted investments, related impairments and expenses: |
|
|
|
|
|
|
Samarco dam failure provision3 |
|
( |
|
( |
|
( |
Fair value change on forward exchange derivatives4 |
|
|
|
( |
||
Loss from operations |
|
( |
|
( |
|
( |
Net finance costs5 |
|
( |
|
( |
|
( |
Loss before taxation |
|
( |
|
( |
|
( |
Income tax expense6 |
|
|
|
( |
||
Loss after taxation |
|
( |
|
( |
|
( |
Balance sheet movement |
|
|
|
|
|
|
Other financial assets/(liabilities)7 |
|
|
|
( |
||
Trade and other receivables |
|
|
|
|||
Trade and other payables |
|
( |
|
|
( |
|
Tax liabilities |
|
|
|
( |
||
Provisions |
|
|
|
( |
||
Net decrease/(increase) in liabilities |
|
|
|
( |
F-16
Table of Contents
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
|
|
US$M |
|
|
US$M |
|
|
US$M |
Cash flow statement |
|
|
|
|
|
|
|
|
|
Loss before taxation |
|
|
( |
|
|
( |
|
|
( |
Adjustments for: |
|
|
|
|
|
|
|
|
|
Samarco dam failure provision3 |
|
|
|
|
|
|
|||
Fair value change on forward exchange derivatives4 |
|
( |
|
|
( |
|
|
|
|
Proceeds from/(settlement of) cash management related instruments |
|
|
|
( |
|
|
|
||
Net finance costs5 |
|
|
|
|
|
|
|||
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Trade and other receivables |
|
( |
|
|
|
|
|
||
Trade and other payables |
|
|
|
( |
|
|
|
||
Net operating cash flows |
|
|
|
|
( |
|
|
||
Net investment and funding of equity accounted investments8 |
|
|
( |
|
|
( |
|
|
( |
Net investing cash flows |
|
|
( |
|
|
( |
|
|
( |
Net decrease in cash and cash equivalents |
|
|
( |
|
|
( |
|
|
( |
Equity accounted investment in Samarco
BHP Brasil’s investment in Samarco remains at US$
Provision related to the Samarco dam failure
|
|
|
2026 |
|
|
2025 |
|
|
|
US$M |
|
|
US$M |
At the beginning of the financial year |
|
|
|
|
||
Movement in provision |
|
|
( |
|
|
( |
Comprising: |
|
|
|
|
|
|
Utilised |
|
( |
|
|
( |
|
Adjustments charged to the income statement: |
|
|
|
|
|
|
Change in cost estimate |
|
|
|
|
||
Amortisation of discounting impacting net finance costs |
|
|
|
|
||
Exchange translation |
|
|
|
|
||
At the end of the financial year |
|
|
|
|
||
Comprising: |
|
|
|
|
|
|
Current |
|
|
|
|
||
Non-current |
|
|
|
|
||
At the end of the financial year |
|
|
|
|
F-17
Table of Contents
Samarco dam failure provision and contingencies
As at 30 June 2026, BHP Brasil has identified a provision and certain contingent liabilities arising as a consequence of the Samarco dam failure. The provision reflects the future cost estimates associated with the obligations set out in the Settlement Agreement, along with estimates associated with the United Kingdom group action claim (see below).
Contingent liabilities will only be resolved when one or more uncertain future events occur or related impacts become capable of reliable measurement and, as such, determination of contingent liabilities disclosed in the Financial Statements requires significant judgement regarding the outcome of future events. A number of the claims below do not specify the amount of damages sought and, where this is specified, amounts could change as the matter progresses.
Ultimately, future changes in all those matters for which a provision has been recognised or contingent liability disclosed could have a material adverse impact on BHP’s business, competitive position, cash flows, prospects, liquidity and shareholder returns.
The following table summarises the current status of significant ongoing matters relating to the Samarco dam failure, along with developments during the period, and the associated treatment in the Financial Statements:
Item |
Provision |
Contingent liability |
Samarco dam failure – Settlement Agreement |
ü |
û |
On 25 October 2024 the Federal Government of Brazil, State of Minas Gerais, State of Espirito Santo, public prosecutors and public defenders (Public Authorities) entered into an agreement with Samarco Mineração S.A. (Samarco) and its shareholders, BHP Billiton Brasil Ltda. (BHP Brasil) and Vale S.A. (Vale) (together, the Companies) to settle claims relating to the Samarco dam failure (Settlement Agreement). On 6 November 2024, the Settlement Agreement was fully ratified by the Brazilian Supreme Court. On 15 May 2025, the decision that ratified the Settlement Agreement became final and unappealable. Over the years, the Companies and public authorities entered into agreements for the remediation of damages resulting from the Samarco dam failure, including the March 2016 Framework Agreement, which established the Renova Foundation and the environmental and socioeconomic programs for remediation and compensation, and others. The obligations provided for in those previous agreements, including the Framework Agreement, were extinguished and replaced by the Settlement Agreement. The Settlement Agreement delivers a full and final settlement of the obligations under the Framework Agreement and of the main public civil actions and related proceedings brought by the Public Authorities in relation to the Samarco dam failure, including the public civil action filed in May 2016 by the Brazilian Federal Public Prosecutors’ Office, seeking R$ The financial value of the Settlement Agreement, as at the announcement date, was R$ The Settlement Agreement provides R$ Under the Settlement Agreement, Samarco is the primary obligor for the settlement obligations and BHP Brasil and Vale are each secondary obligors of any obligation that Samarco cannot fund or perform in proportion to their shareholding at the time of the dam failure, which is 50% each. While Samarco has recommenced operations, Samarco’s long-term cash flow generation remains highly sensitive to factors including returning to full production capacity, commodity prices and foreign exchange rates.
|
||
|
||
1
|
||
F-18
Table of Contents
Further, under the Samarco Judicial Reorganisation Plan (JR Plan), ratified by the JR Court on 1 September 2023, Samarco’s funding of obligations to remediate and compensate the damages resulting from the dam failure is capped at US$ The Group has considered the outcomes of the Settlement Agreement, including the estimated costs of executing the Obligations to Perform and, the extent to which Samarco may be in a position to fund any future outflows to measure the provision related to the Samarco dam failure at 30 June 2026. The amounts provided include the Group’s best estimate of outflows required to settle all obligations arising from the Settlement Agreement. Uncertainty remains around the Obligations to Perform, and there is a risk that outcomes may be materially higher or lower than amounts reflected in BHP Brasil’s provision for the Samarco dam failure. Key areas of uncertainty include the future costs relating to the Obligations to Perform programs and the extent to which Samarco is able to directly fund the settlement obligations. Further information on the key areas of estimation uncertainty is provided in the ‘Key judgements and estimates’ section below. There is also risk in relation to claims brought in Brazil that seek to, among other things, change the eligibility parameters of the Settlement Agreement. The Companies are defending these claims. BHP Brasil, Samarco and Vale have maintained security under the Governance Agreement ratified on 8 August 2018, comprising insurance bonds and a charge over certain Samarco assets. On 6 August 2025, the Federal Court released this requirement, in line with the Settlement Agreement, which does not mandate maintaining the existing security, and the decision is now final. |
||
Australian class action complaint |
û |
û |
In 2018, BHP Group Limited was 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 Limited or BHP Group Plc (now BHP Group (UK) Ltd) in periods prior to the Samarco dam failure. In September 2025, BHP reached an agreement to settle the Australian class action for A$ The Group has paid the settlement amount hence there is no remaining liability at 30 June 2026. The insurance proceeds of US$ |
||
United Kingdom group action claim |
ü |
û |
BHP Group (UK) Ltd (formerly BHP Group Plc) and BHP Group Limited (BHP Defendants) are named as defendants in group action claims for damages filed in the courts of England. These claims were filed in 2018 on behalf of certain individuals, municipalities, businesses, faith based institutions and communities in Brazil allegedly impacted by the Samarco dam failure, some of whom are eligible for and have been compensated through the Settlement Agreement. In January 2024, the BHP Defendants were served with a new group action filed in the courts of England on behalf of additional individuals and businesses in Brazil allegedly impacted by the Samarco dam failure. The new action makes broadly the same claims as the original action and the amount of damages sought in these claims is unspecified. The claims have been stayed by the English court pending an application for consolidation with the original action. In July 2024, the BHP Defendants, BHP Brasil and Vale entered into an agreement (BHP and Vale Agreement) – without any admission of liability in any proceedings – whereby: (i) Vale will pay |
||
F-19
Table of Contents
In November 2025, the English High Court found the BHP Defendants liable under Brazilian law for the 2015 Samarco dam failure on the basis that it is a ‘polluter’ under Brazilian environmental law and at fault under the Brazilian civil code. The English High Court rejected the argument that the BHP Defendants are liable under Brazilian corporate law. The decision relates to events that occurred in the period before November 2015. The Court’s findings regarding Brazilian limitation periods could lead to attempts to join further claimants to the proceedings. The English High Court also found that certain of the waivers and releases signed by claimants who have already received compensation in Brazil are valid, and the claimants have accepted these claims will be discontinued, reducing the size and value of the claims in the UK group action significantly. The Group anticipates at least 240,000 claims will be discontinued as a result of these findings. The BHP Defendants did not obtain permission to appeal the liability decision and will continue to defend the UK group action. A stage 2 trial will decide generic issues of causation and quantification and whether losses claimed by certain lead claimants were caused by the dam failure. The trial is scheduled for April 2027 to March 2028. Following any decision and appeals in that trial, a stage 3 trial may also be required, where each remaining claimant would need to prove their individual damages before the BHP Defendants are required to make any payments to them. This third trial is unlikely to occur before 2029. At 30 June 2025, the UK group action was disclosed as a contingent liability, as the Group’s liability was yet to be established. As a result of the English High Court decision, BHP has updated its Samarco dam failure provision to reflect its best estimate of potential cash outflows in relation to the claim. Given the status of the claim, significant uncertainty remains around the extent of any potential outflow and there is a risk that outcomes may be materially higher or lower than amounts reflected in the Group’s provision for the Samarco dam failure. Key areas of uncertainty include findings of stage 2 on whether losses were caused by the dam failure, and the number of individuals in stage 3 who are able to prove damage and any amounts to be awarded. Further information on the key areas of estimation uncertainty is provided in the ‘Key judgements and estimates’ section below. |
||
Vale and Samarco’s Netherlands collective action claim |
û |
ü |
In March 2024, a collective action complaint was filed in the Netherlands against Vale and a Dutch subsidiary of Samarco for compensation relating to the Samarco dam failure. That complaint, which formally commenced in February 2025, indicates that these claims were filed on behalf of certain individuals, municipalities, businesses, associations and faith based institutions allegedly impacted by the Samarco dam failure who are not also claimants in the UK group action claims referred to above. Vale and Samarco’s Dutch subsidiary have challenged the Dutch Court’s jurisdiction to hear the claim and the Dutch Court has provisionally indicated that a decision will be handed down in October 2026. BHP is not a defendant in the Netherlands proceedings. Any amounts payable by Vale and Samarco under this claim will be subject to the BHP and Vale Agreement referred to in the UK group action claim above. |
||
Criminal charges |
û |
ü |
The Federal Prosecutors’ Office filed criminal charges against BHP Brasil, Samarco and Vale and certain of their employees and former employees (Affected Individuals) in the Federal Court of Ponte Nova, Minas Gerais (Federal Court). The Federal Court granted decisions in favour of all Affected Individuals, terminating the charges against these individuals. As to the remaining cases, in November 2024, the Federal Court ruled that BHP Brasil, Samarco and Vale and certain Affected Individuals (non-affiliated with BHP) who still had their cases open, are not liable for criminal offences relating to the failure of Samarco’s tailings dam. In December 2024 the Federal Prosecutors’ Office appealed. The trial commenced on 11 March 2026 and was adjourned until 3 September 2026. |
||
Civil public actions commenced by Associations concerning the use of TANFLOC for water treatment |
û |
ü |
On 17 November 2023, the Federal Court dismissed the lawsuit filed by four associations due to procedural reasons. The judgment is final and unappealable. In July 2024, two further associations filed another lawsuit against Samarco, BHP Brasil and Vale and others, including the States of Minas Gerais and Espirito Santo, the Federal Government and the Water Treatment Companies, who were all also defendants in the first lawsuit. This second lawsuit was also dismissed due to procedural reasons on 12 November 2024, and the associations have appealed this judgement. In both lawsuits the plaintiffs alleged that the defendants carried out a clandestine study on the citizens of the locations affected by the Samarco dam failure where Tanfloc (a tannin based flocculant/coagulant) was used in the water treatment process. The plaintiffs claim that this product put the population at risk due to its alleged experimental qualities and dosage applied. The plaintiffs presented largely similar pleas, e.g. material damages, moral damages.
|
||
F-20
Table of Contents
Other claims, inquiries and investigations |
û |
ü |
BHP Brasil is among the Companies named as defendants in a number of legal proceedings initiated by individuals, indigenous and traditional persons and their communities, non-governmental organisations, corporations, municipalities and other 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. Certain of these legal proceedings are outside the scope of the Settlement Agreement. In October 2024, certain Brazilian municipalities, who are claimants in the UK group action claims referred to above, brought criminal contempt proceedings against the BHP Defendants in relation to their alleged involvement in a constitutional claim brought by a third-party Brazilian mining association (IBRAM) before the Brazilian Supreme Court. In June 2025, the High Court in London rejected the BHP Defendants’ application to strike out the proceedings. That decision was overturned on appeal in favour of the BHP Defendants in March 2026, and following an unsuccessful application for permission to appeal to the UK Supreme Court by the Claimants, the contempt proceedings have been struck out and brought to an end. In addition, actions for alleged damages, fees and/or expenses related to claims concerning the Samarco dam failure have been threatened, and may in the future be brought against the Group. Government inquiries, studies and investigations relating to the Samarco dam failure and actions taken in response to it have also been commenced by numerous agencies and individuals of the Brazilian government and may still be ongoing. Additional legal proceedings and government investigations relating to the Samarco dam failure, including the use of Tanfloc for water treatment, could be brought against BHP Brasil and other Group entities in Brazil or other jurisdictions. The outcomes of these claims, investigations and proceedings remain uncertain and continue to be disclosed as contingent liabilities. |
||
Commitments
Under the terms of the Samarco joint venture agreement, BHP Brasil does not have an existing obligation to fund Samarco. However, under the Settlement Agreement, while Samarco is the primary obligor for the Settlement Agreement obligations, BHP Brasil and Vale are each secondary obligors of any obligation that Samarco cannot fund (including as restricted by the terms of the Judicial Reorganisation Plan) or perform in proportion to their shareholding at the time of the dam failure, which is
BHP Brasil has approved preliminary funding of up to US$
F-21
Table of Contents
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 be recognised at 30 June 2026 to reflect the estimated costs associated with obligations under the Settlement Agreement, along with estimates associated with the United Kingdom group action claim. 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 above, given their status. Estimates The provision for the Samarco dam failure reflects the Group’s estimate of the costs to meet the Group’s obligations under the Settlement Agreement, along with estimates associated with the United Kingdom group action claim and requires the use of significant judgements, estimates and assumptions. 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 and there is a risk that outcomes may be materially higher or lower than amounts currently reflected in the provision. 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 upon the provision in the next and future reporting periods include: • the cost of compensation to individuals, small businesses, Municipalities and Indigenous and Traditional communities; • the extent to which Samarco is able to directly fund any future obligations relating to the Settlement Agreement. Samarco’s long-term cash flow generation remains highly sensitive to factors including its ability to return to full production capacity, commodity prices and foreign exchange rates; and • the cash outflows associated with the United Kingdom group action claim including any findings from potential second and third stage trials regarding whether losses were caused by the dam failure, the number of individuals able to prove damage and any amounts to be awarded (including legal costs). The provision may also be affected by factors including, but not limited to updates to foreign exchange and discount rates. To limit the Group’s exposure to potential Brazilian reais foreign exchange volatility, the Group has entered into forward exchange contracts, predominantly covering the period up to FY2028. A In addition, the provision may be impacted by decisions in, or resolution of, existing and potential legal claims in Brazil including in relation to eligibility under, and adherence to, the Settlement Agreement and claims in other jurisdictions, including the claim filed in the Netherlands against Vale and a Dutch subsidiary of Samarco. 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. The following section provides disclosure of matters to which Samarco (and not the Group) is a party. Samarco Dam failure related provision and contingencies In addition to its provisions in relation to the Settlement Agreement as at 30 June 2026, Samarco has recognised a provision of US$ 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. |
F-22
Table of Contents
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 has also identified a number of individually immaterial tax-related uncertainties which have been reflected, where appropriate, in the Group’s share of associate and joint venture contingent liabilities presented in note 32 ‘Contingent liabilities’. 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 2026, an insurance receivable has not been recognised by Samarco in respect of ongoing matters. Samarco non-dam failure related provisions and contingent liabilities The following non-dam failure related matters pre-date and are unrelated to the Samarco dam failure. Samarco is currently contesting aspects of 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. Based on its assessment of currently available information as at 30 June 2026, Samarco recognised provisions of US$ Brazilian corporate income tax rate Samarco has received tax assessments, and disclosed contingent liabilities, for the alleged incorrect calculation of Corporate Income Tax (IRPJ) in respect of the 2000-2003 and 2007-2014 income years totalling approximately US$ Brazilian mining royalties Samarco has received assessments, and disclosed contingent liabilities, for the alleged incorrect calculation of Financial Compensation for the Exploitation of Mineral Resources (CFEM) in respect of the period 1998-2017 totalling approximately US$ |
F-23
Table of Contents
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Employee benefits expense: |
|
|
|
|
|
|
Wages and salaries |
|
|
|
|||
Employee share awards |
|
|
|
|||
Social security costs |
|
|
|
|||
Pension and other post-retirement obligations |
|
|
|
|||
Less employee benefits expense classified as exploration and evaluation expenditure |
|
( |
|
( |
|
( |
Changes in inventories of finished goods and work in progress |
|
( |
|
|
( |
|
Raw materials and consumables used |
|
|
|
|||
Freight and transportation |
|
|
|
|||
External services |
|
|
|
|||
Third-party commodity purchases |
|
|
|
|||
Net foreign exchange losses |
|
|
|
|||
Fair value change on derivatives1 |
|
|
( |
|
||
Government royalties paid and payable |
|
|
|
|||
Exploration and evaluation expenditure incurred and expensed in the current period |
|
|
|
|||
Depreciation and amortisation expense |
|
|
|
|||
Impairment net of reversals: |
|
|
|
|
|
|
Property, plant and equipment |
|
|
|
|||
Goodwill and other intangible assets |
|
|
|
|||
All other operating expenses |
|
|
|
|||
Total expenses |
|
|
|
|||
(Gain)/loss on disposal of subsidiaries and operations2 |
|
( |
|
|
( |
|
Other income3 |
|
( |
|
( |
|
( |
Total other income |
|
( |
|
( |
|
( |
Recognition and measurement
Other income is recognised when it is probable that the economic benefits associated with a transaction will flow to the Group and can be reliably measured. Dividend income is recognised upon declaration.
F-24
Table of Contents
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Total taxation expense comprises: |
|
|
|
|
|
|
Current tax expense |
|
|
|
|||
Deferred tax (benefit)/expense |
|
( |
|
|
( |
|
Total taxation expense |
|
|
|
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Factors affecting income tax expense for the year |
|
|
|
|
|
|
Income tax expense differs to the standard rate of corporation tax as follows: |
|
|
|
|
|
|
Profit before taxation |
|
|
|
|||
Tax on profit at Australian prima facie tax rate of |
|
|
|
|||
Derecognition of deferred tax assets and current year tax losses |
|
|
|
|||
Tax on remitted and unremitted foreign earnings |
|
|
|
|||
Amounts (over)/under provided in prior years |
|
( |
|
( |
|
( |
Foreign exchange adjustments |
|
( |
|
|
( |
|
Tax effect of profit/(loss) from equity accounted investments, related impairments and expenses1 |
|
( |
|
|
||
Recognition of previously unrecognised tax assets |
|
( |
|
( |
|
( |
Impact of tax rates applicable outside of Australia |
|
( |
|
( |
|
( |
Other2 |
|
|
|
|||
Income tax expense |
|
|
|
|||
Royalty-related taxation (net of income tax benefit) |
|
|
|
|||
Total taxation expense |
|
|
|
Income tax recognised in other comprehensive income is as follows:
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Income tax effect of: |
|
|
|
|
|
|
Items that may be reclassified subsequently to the income |
|
|
|
|
|
|
Hedges: |
|
|
|
|
|
|
(Losses)/gains taken to equity |
|
|
( |
|
||
Losses/(gains) transferred to the income statement |
|
( |
|
|
( |
|
Others |
|
|
|
|||
Income tax credit/(charge) relating to items that may be |
|
|
|
( |
||
Items that will not be reclassified to the income statement: |
|
|
|
|
|
|
Re-measurement (losses)/gains on pension and medical schemes |
|
|
|
( |
||
Income tax credit/(charge) relating to items that will not be reclassified to the income statement |
|
|
|
( |
||
Total income tax credit/(charge) relating to components of other comprehensive income1 |
|
|
|
( |
F-25
Table of Contents
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/AASB 112 ‘Income Taxes’ (IAS 12). 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, except where the transaction gives rise to equal and offsetting taxable and deductible temporary differences • 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. |
|
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. |
F-26
Table of Contents
International Tax Reform – Pillar Two Model Rules
The Group has a presence in jurisdictions that have enacted or substantively enacted legislation in relation to the Pillar Two model rules, including Australia, where its ultimate parent entity is a tax resident. This effectively brings all jurisdictions in which the Group has a presence into the scope of the rules.
The mandatory temporary exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes has been applied at 30 June 2026.
The Group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the jurisdictions in which it operates. The implementation of legislation that is enacted or substantively enacted but not yet in effect is not expected to have a material impact on the Group’s global effective tax rate.
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. 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.
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 recognised as current or deferred tax amounts, as appropriate, as at 30 June 2026. 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: The Group’s accounting policy for taxation, including royalty-related taxation, requires management’s judgement as to the types of arrangements considered to be a tax on income in contrast to an operating cost. Deferred tax Judgements: Judgement is required in: • determining the amount of deferred tax assets to be recognised based on the likely timing and the level of future taxable profits; • assessing whether changes in tax regimes or applicable tax rates are substantively enacted at the reporting date; • recognising deferred tax liabilities arising from temporary differences in investments. These deferred tax liabilities caused principally by retained earnings held in foreign tax jurisdictions are recognised unless repatriation of retained earnings can be controlled and is not expected to occur in the foreseeable future. Estimates: The Group assesses the recoverability of recognised and unrecognised deferred taxes, including losses in Australia, the United States and Canada on a consistent basis. Estimates and assumptions relating to projected earnings and cash flows as applied in the Group impairment process are used for operating assets. These forecasts are also used to estimate the royalty-related tax rates to apply when the deferred tax assets are realised and deferred tax liabilities are settled. |
F-27
Table of Contents
|
|
2026 |
|
2025 |
|
2024 |
Earnings attributable to BHP shareholders (US$M) |
|
|
|
|||
Weighted average number of shares (Million) |
|
|
|
|
|
|
- Basic |
|
|
|
|||
- Diluted |
|
|
|
|||
Earnings per ordinary share (US cents) |
|
|
|
|
|
|
- Basic |
|
|
|
|||
- Diluted |
|
|
|
|||
Headline earnings per ordinary share (US cents) |
|
|
|
|
|
|
- Basic |
|
|
|
|||
- Diluted |
|
|
|
Earnings on American Depositary Shares represent twice the earnings for BHP Group Limited ordinary shares.
Headline earnings is a Johannesburg Stock Exchange defined performance measure and is reconciled from earnings attributable to ordinary shareholders as follows:
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Earnings attributable to BHP shareholders |
|
|
|
|||
Adjusted for: |
|
|
|
|
|
|
Loss/(gain) on sales of property, plant and equipment, intangibles and investments |
|
|
( |
|
( |
|
Impairment of property, plant and equipment and intangibles net of reversals |
|
|
|
|||
(Gain)/loss on disposal of subsidiaries and operations |
|
( |
|
|
( |
|
Tax effect of above adjustments |
|
( |
|
( |
|
( |
Subtotal of adjustments |
|
|
|
|||
Headline earnings |
|
|
|
|||
Diluted headline earnings |
|
|
|
Recognition and measurement
Diluted earnings attributable to BHP shareholders are equal to earnings attributable to BHP shareholders.
The calculation of the number of ordinary shares used in the computation of basic earnings per share is the weighted average number of ordinary shares of BHP Group Limited outstanding during the period after deduction of the number of shares held by the BHP Group Limited Employee Equity Trust.
For the purposes of calculating diluted earnings per share, the effect of
At 30 June 2026, there are
F-28
Table of Contents
Working capital
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
Trade receivables |
|
|
||
Other receivables |
|
|
||
Total |
|
|
||
Comprising: |
|
|
|
|
Current |
|
|
||
Non-current |
|
|
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
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
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 2026, trade receivables of US$
At 30 June 2026, trade receivables are stated net of provisions for expected credit losses of US$
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
Trade payables |
|
|
||
Other payables |
|
|
||
Total |
|
|
||
Comprising: |
|
|
|
|
Current |
|
|
||
Non-current |
|
|
F-29
Table of Contents
|
|
2026 |
|
2025 |
|
Definitions |
|
|
US$M |
|
US$M |
|
|
Raw materials and consumables |
|
|
|
Spares, consumables and other supplies yet to be utilised in the production process or in the rendering of services. |
||
Work in progress |
|
|
|
Commodities currently in the production process that require further processing by the Group to a saleable form. |
||
Finished goods |
|
|
|
Commodities ready-for-sale and not requiring further processing by the Group. |
||
Total1 |
|
|
|
|
||
Comprising: |
|
|
|
|
|
Inventories classified as non-current are not expected to be utilised or sold within 12 months after the reporting date or within the operating cycle of the business. |
Current |
|
|
|
|||
Non-current |
|
|
|
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.
F-30
Table of Contents
Resource assets
|
|
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 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
At the beginning of the financial year |
|
|
|
|
|
|
||||||
Additions1 |
|
|
|
|
|
|
||||||
Remeasurements of index-linked freight contracts2 |
|
|
|
|
|
|
||||||
Depreciation for the year |
|
( |
|
( |
|
( |
|
|
|
( |
||
Net impairments for the year3 |
|
|
( |
|
|
( |
|
|
( |
|||
Disposals |
|
( |
|
( |
|
|
( |
|
|
( |
||
Divestment of subsidiaries and operations |
|
( |
|
( |
|
( |
|
( |
|
|
( |
|
Transfers and other movements |
|
|
|
( |
|
( |
|
( |
|
( |
||
At the end of the financial year4 |
|
|
|
|
|
|
||||||
– Cost |
|
|
|
|
|
|
||||||
– Accumulated depreciation and impairments |
|
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Net book value – 30 June 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
At the beginning of the financial year |
|
|
|
|
|
|
||||||
Additions1 |
|
|
|
|
|
|
||||||
Remeasurements of index-linked freight contracts2 |
|
|
( |
|
|
|
|
( |
||||
Depreciation for the year |
|
( |
|
( |
|
( |
|
|
|
( |
||
Net impairments for the year3 |
|
( |
|
( |
|
( |
|
|
|
( |
||
Disposals |
|
( |
|
( |
|
|
|
|
( |
|||
Divestment of subsidiaries and operations |
|
|
( |
|
( |
|
|
|
( |
|||
Transfers and other movements |
|
|
|
( |
|
( |
|
( |
|
( |
||
At the end of the financial year4 |
|
|
|
|
|
|
||||||
– Cost |
|
|
|
|
|
|
||||||
– Accumulated depreciation and impairments |
|
( |
|
( |
|
( |
|
( |
|
( |
|
( |
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 22 '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.
F-31
Table of Contents
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:
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.
In the instance where saleable material is extracted prior to the commissioning of a project/site, sale proceeds are recognised as revenue, with associated costs also recognised in the income statement. On completion of development, all assets included in assets under construction are reclassified within the relevant category of property, plant and equipment according to the nature of the underlying asset and depreciation commences.
Other mineral assets
Other mineral assets comprise:
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.
F-32
Table of Contents
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: Judgement is applied by management in determining the components of an ore body. Estimates: Estimates are used in the determination of stripping ratios and mineral reserves by component. Changes to estimates related to life-of-component waste-to-ore (or mineral contained) strip ratios and the expected ore production from identified components are accounted for prospectively and may affect depreciation rates and asset carrying values. |
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 UoP depreciation method is used when the pattern of use is best reflected by production volumes. The Group’s 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, to provide a phasing of periodic depreciation charges that better reflects the asset’s expected useful life.
Where assets are dedicated to a mine lease, the useful lives below are subject to the lesser of the asset category’s useful life and the life of the mine lease, unless those assets are readily transferable to another productive mine.
F-33
Table of Contents
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.
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 low-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. |
||
Asset category |
|
Plant and equipment |
Buildings – Mine related property |
|
|
Plant and equipment |
|
|
Mineral rights |
|
|
Capitalised exploration, evaluation and development expenditure |
|
|
Commitments
The Group’s commitments for capital expenditure were US$
|
|
2026 |
|
2025 |
||||||||
|
|
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 |
|
|
|
|
|
|
||||||
Additions |
|
|
|
|
|
|
||||||
Amortisation for the year |
|
|
( |
|
( |
|
|
( |
|
( |
||
Impairments for the year1 |
|
|
( |
|
( |
|
|
( |
|
( |
||
Disposals |
|
|
( |
|
( |
|
|
( |
|
( |
||
Transfers and other movements |
|
|
|
|
|
|
||||||
At the end of the financial year |
|
|
|
|
|
|
||||||
– Cost |
|
|
|
|
|
|
||||||
– Accumulated amortisation and impairments |
|
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Recognition and measurement
Goodwill
Where the fair value of the consideration paid for a business acquisition exceeds the fair value of the identifiable assets, liabilities and contingent liabilities acquired, the difference is treated as goodwill. Goodwill is not amortised and is measured at cost less any impairment losses.
Other intangibles
The Group capitalises amounts paid for the acquisition of identifiable intangible assets, such as software and licences, 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
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.
F-34
Table of Contents
|
|
|
|
2026 |
|
|
||||
Cash generating unit |
|
Segment |
|
Property, |
|
Goodwill |
|
Equity- |
|
Total |
|
|
|
|
US$M |
|
US$M |
|
US$M |
|
US$M |
Jansen project |
|
Group and unallocated |
|
|
|
|
||||
Other |
|
Various |
|
|
|
|
||||
Total impairment of non-current assets |
|
|
|
|
|
|
||||
Reversal of impairment |
|
|
|
( |
|
|
|
( |
||
Net impairment of non-current assets |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
|
||||
Cash generating unit |
|
Segment |
|
Property, plant |
|
Goodwill |
|
Equity- |
|
Total |
|
|
|
|
US$M |
|
US$M |
|
US$M |
|
US$M |
Other |
|
Various |
|
|
|
|
||||
Total impairment of non-current assets |
|
|
|
|
|
|
||||
Western Australia Nickel2 |
|
Group and unallocated |
|
( |
|
|
|
( |
||
Reversal of impairment |
|
|
|
( |
|
|
|
( |
||
Net impairment of non-current assets |
|
|
|
|
|
|
||||
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.
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 24 'Financial risk management' unless otherwise noted.
F-35
Table of Contents
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 2026 are detailed below.
Jansen project
At 30 June 2026, the Group determined the overall recoverable amount of the Jansen project CGU to be approximately US$
The valuation for the Jansen project CGU was determined using FVLCD methodology, applying discounted cash flow techniques based primarily on Level 3 inputs (as defined in note 24 ‘Financial risk management’) and applying a post-tax real discount rate of
Key judgements and estimates that have been applied in the valuations using DCF techniques are disclosed further below.
Impairment test for goodwill
The carrying amount of goodwill has been allocated to the CGUs, or groups of CGUs, as follows:
Cash generating unit |
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
Copper SA |
|
|
||
Other |
|
|
||
Total goodwill |
|
|
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.
Copper SA goodwill |
|
Impairment test conclusion |
The Group performed an impairment test of the Copper SA Group of CGUs, including goodwill, as at 30 June 2026 and an impairment charge was not required.
|
How did the goodwill arise? |
Goodwill of US$
|
Segment |
Copper SA 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 Copper SA. |
Significant assumptions and sensitivities |
The valuation of Copper SA exceeded its carrying amount by approximately US$ Key judgements and estimates that have been applied in the FVLCD valuation are disclosed further below. |
F-36
Table of Contents
Goodwill held by other CGUs is US$
Key judgements and estimates Judgements: Assessment of indicators of impairment or impairment reversal and the determination of CGUs for impairment purposes require significant management judgement. 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 The Group’s impairment assessments may be impacted by climate change and the transition to a low-carbon economy. Further detail is provided in note 16 ‘Climate change’. Estimates: The Group performs a recoverable amount determination for an asset or CGU when there is an indication of impairment or impairment reversal. Previously impaired CGUs and recently acquired assets recognised at fair value on acquisition may have comparatively lower headroom between carrying value and recoverable amount, reflecting the basis on which those carrying values have been determined. 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 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 an asset or CGU at each reporting date. With the exception of the Jansen project CGU impairment mentioned above, no indicators of impairment, or impairment reversal, were identified across the Group’s remaining CGUs at 30 June 2026 noting that 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. |
F-37
Table of Contents
Cash outflows (including operating costs, capital expenditure, closure and rehabilitation costs and taxes) Closure 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 and substantively enacted 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 discount rates applied to real post-tax cash flows. The discount rates are derived using the weighted average cost of capital methodology. Adjustments to the rates are made for any risks that are not reflected in the underlying cash flows, including country risk. |
The movement for the year in the Group’s net deferred tax position is as follows:
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Net deferred tax (liability)/asset |
|
|
|
|
|
|
At the beginning of the financial year |
|
( |
|
( |
|
( |
Income tax credit/(charge) recorded in the income statement1 |
|
|
( |
|
||
Income tax credit/(charge) recorded directly in equity |
|
|
( |
|
( |
|
Divestment of subsidiaries and operations |
|
|
|
( |
||
Other movements |
|
|
|
( |
||
At the end of the financial year |
|
( |
|
( |
|
( |
For recognition and measurement of deferred tax assets and liabilities, refer to note 6 'Income tax expense'. The mandatory temporary exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes has been applied at 30 June 2026.
The composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense (credited)/charged to the income statement is as follows:
|
|
Deferred tax assets |
|
Deferred tax liabilities |
|
(Credited)/charged to |
||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
|
US$M |
|
US$M |
|
US$M |
|
US$M |
Type of temporary difference |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
( |
|
( |
|
|
|
( |
|
|
( |
|||
Employee benefits |
|
|
|
( |
|
( |
|
( |
|
( |
|
|||
Closure and rehabilitation |
|
|
|
( |
|
( |
|
( |
|
( |
|
( |
||
Other provisions |
|
|
|
( |
|
( |
|
|
|
|||||
Deferred income |
|
– |
|
– |
|
( |
|
( |
|
( |
|
|
( |
|
Deferred charges |
|
( |
|
( |
|
|
|
|
|
( |
||||
Investments, including foreign tax credits |
|
|
|
|
|
|
|
( |
||||||
Foreign exchange gains and losses |
|
( |
|
( |
|
|
|
( |
|
|
( |
|||
Tax losses |
|
|
|
( |
|
( |
|
|
( |
|
||||
Lease liability |
|
|
|
( |
|
( |
|
( |
|
( |
|
|||
Other |
|
( |
|
( |
|
|
|
( |
|
|
||||
Total |
|
|
|
|
|
( |
|
|
( |
|||||
F-38
Table of Contents
The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
Unrecognised deferred tax assets |
|
|
|
|
Tax losses and tax credits1 |
|
|
||
Investments in subsidiaries2 |
|
|
||
Mineral rights3 |
|
|
||
Other deductible temporary differences4 |
|
|
||
Total unrecognised deferred tax assets |
|
|
||
Unrecognised deferred tax liabilities |
|
|
|
|
Investments in subsidiaries2 |
|
|
||
Total unrecognised deferred tax liabilities |
|
|
The gross amount of tax losses carried forward that have not been recognised is as follows:
Year of expiry |
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
Income tax losses |
|
|
|
|
Not later than one year |
|
|
||
Later than one year and not later than two years |
|
|
||
Later than two years and not later than five years |
|
|
||
Later than five years and not later than 10 years |
|
|
||
Later than 10 years and not later than 20 years |
|
|
||
Unlimited |
|
|
||
|
|
|
||
Capital tax losses |
|
|
|
|
Not later than one year |
|
– |
|
– |
Later than two years and not later than five years |
|
– |
|
– |
Unlimited |
|
|
||
Gross amount of tax losses not recognised |
|
|
||
Tax effect of total losses not recognised |
|
|
Of the US$
F-39
Table of Contents
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
At the beginning of the financial year |
|
|
||
Capitalised amounts for operating sites: |
|
|
|
|
Change in estimate |
|
|
||
Exchange translation |
|
|
( |
|
Adjustments charged/(credited) to the income statement: |
|
|
|
|
Change in estimate |
|
|
||
Exchange translation |
|
|
( |
|
Other adjustments to the provision: |
|
|
|
|
Amortisation of discounting impacting net finance costs |
|
|
||
Divestment of subsidiaries and operations |
|
( |
|
|
Expenditure on closure and rehabilitation activities |
|
( |
|
( |
Other movements |
|
( |
|
|
At the end of the financial year |
|
|
||
Comprising: |
|
|
|
|
Current |
|
|
||
Non-current |
|
|
||
Operating sites |
|
|
||
Closed sites |
|
|
Profile of closure and rehabilitation cash flows
The table below indicates the estimated profile of the Group’s closure and rehabilitation provisions. The profile reflects the undiscounted forecast cash flows that underpin the provisions. In some instances, the Group has an obligation to rehabilitate and maintain a closed site for an indefinite period. For the purpose of this analysis, the cashflow period has been restricted to 100 years.
|
|
2026 |
|
2025 |
Proportion of the Group’s undiscounted forecast cash flows |
|
% |
|
% |
In one year or less |
|
|
||
In more than one year but not more than two years |
|
|
||
In more than two years but not more than five years |
|
|
||
In more than five years but not more than ten years |
|
|
||
In more than ten years |
|
|
||
Total |
|
|
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.
The key components of closure and rehabilitation activities are:
Recognition and measurement
Provisions for closure and rehabilitation are recognised by the Group when:
F-40
Table of Contents
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. The amount charged to the income statement, inclusive of exchange translation and remediation costs related to contaminated sites, was US$
F-41
Table of Contents
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 and the transition to a low-carbon economy. Further detail is provided in note 16 ‘Climate change’. 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. 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. Approximately 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 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 |
F-42
Table of Contents
The Group’s current climate change strategy focuses on developing a portfolio of commodities to support the major global shifts shaping our world, reducing operational greenhouse gas (GHG) emissions (Scopes 1 and 2 from our operated assets), supporting value chain (Scope 3) GHG emissions reductions, and managing climate-related risks and opportunities.
Areas of these Financial Statements that may be impacted in connection with this strategy throughout the value creation and delivery cycle of the Group’s operations, include:
Phase |
Area of potential Financial Statement impact |
Exploration and acquisition |
• Portfolio decisions |
Development and mining/process and logistics |
• Climate-related transition risks and opportunities and asset carrying values • Climate-related physical risks and asset carrying values • Acquisition and use of carbon credits • Useful economic lives of property, plant and equipment • Expenditure on operational decarbonisation |
Sales, marketing and procurement |
• Expenditure to support value chain decarbonisation |
Closure and rehabilitation |
• Timing, scope and expected cost of closure and rehabilitation activities |
The significant judgements and key estimates used in the preparation of these Financial Statements reflect the Group’s current planning range (which implies a projected global average temperature increase of approximately 2.2 - 2.5°C by CY2100), as described below. At the date of issue of these Financial Statements, indicators show the appropriate measures are not in place globally to drive decarbonisation at the pace or scale required to achieve the aim of the Paris Agreement to limit the global average temperature increase to 1.5°C above pre-industrial levels by CY2100.
The Group continues to monitor global decarbonisation signposts and considers these in updates to its planning range, associated price outlooks and cost of carbon assumptions. If such signposts indicate the appropriate measures are in place for achievement of a 1.5°C outcome, this would be reflected in the Group’s planning range.
Changes to the Group’s climate change strategy or global decarbonisation trends may impact the Group’s significant judgements and key estimates, and result in material changes to financial results, cash flows and the carrying values of certain assets and liabilities in future reporting periods.
Portfolio decisions
Over recent years, the Group has repositioned its portfolio towards commodities that can help enable and support the major global shifts of decarbonisation, electrification, digitalisation, urbanisation and population growth. Copper supports electrification, including energy transition infrastructure and digitalisation; iron ore and steelmaking coal are key inputs to steel production needed for construction; and the Group is developing a world-class potash asset to support food security and more sustainable land use. Within a decarbonisation context, copper represents a key growth opportunity reflecting its role in the energy transition. The Group’s strategy includes organic growth and expansion of existing copper assets, as well as greenfield projects such as Vicuña and Resolution. Refer to note 2 ‘Revenue’, which presents current and prior year revenue by commodity.
Climate-related transition risks and opportunities and asset carrying values
Significant judgements and key estimates in relation to the preparation of these Financial Statements, including asset carrying values and impairment assessments, are impacted by the Group’s current assessment of the range of economic and climate-related conditions that could exist in the world’s transition to a low-carbon economy. For example, demand for the Group’s commodities may decrease due to policy, regulatory (including carbon pricing mechanisms), legal, technological, market or societal responses to climate change, resulting in a proportion of a cash generating unit’s (CGU) reserves becoming incapable of extraction in an economically viable fashion. Alternatively, technological or market developments increasing demand for commodities in the portfolio that help enable decarbonisation may have a positive impact on prices for those commodities.
The Group’s planning range comprises a ‘most likely’ base case, used as the basis for judgements and assumptions in these Financial Statements with probabilistic upside and downside cases for commodity prices that are designed to capture uncertainty. The planning range reflects the Group's proprietary forecasts for the global economy and associated sub-sectors (i.e. energy, transport, agriculture and steel) and the resulting market outlook for core commodities.
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Table of Contents
Given the complexity and inherent uncertainty of long run forecasting, the Group periodically reviews key assumptions underpinning its planning range to reflect new information.
During FY2026, the Group updated the key assumptions underpinning its planning range to reflect evolving economic and geopolitical conditions. As a result, the planning range now implies a projected global average temperature increase of approximately 2.2 - 2.5°C by CY2100 (compared to around 2°C for the Group’s planning range in FY2025), reflecting an updated assessment of the Group’s outlook on global decarbonisation pathways.
The Group reflects the planning range and associated price outlooks in the internal valuations used as the basis for the Group’s impairment assessments.
The discount rate used in the internal valuations underpinning impairment assessments reflects a real post-tax weighted average cost of capital (WACC), including country and state risk premia where appropriate and ranges from
Investment decisions and asset valuations used for the purposes of impairment testing also consider carbon price assumptions in relevant regions by applying a carbon price to estimated unmitigated Scopes 1 and 2 GHG emissions over the life of the respective operation. In determining the Group’s strategy and carbon price forecast, factors including a country’s current and announced climate policies, targets and societal factors, such as public acceptance and demographics, are considered.
The Group's base case projections estimate that carbon prices are likely to rise over time, ranging from US$
Further detail on the Group’s significant judgements and estimates that inform the planning range and FY2026 impairment assessments, is included in note 13 ‘Impairment of non-current assets’.
Climate-related physical risks and asset carrying values
The Group’s operations are exposed to climate-related physical risks. These risks may arise from both the increasing severity and/or frequency of acute events (extreme climatic events, such as floods, cyclones and heatwaves) and chronic changes (such as prolonged drought, rising temperatures, and incremental increases in extreme heat days). The potential effects of these events may be both direct and indirect.
To seek to mitigate operational interruption risk from climate hazards, the Group considers climate-related physical risks as part of its capital projects decision making process, including, where relevant, the incorporation of weather conditions and climate projections in asset design. As adaptation measures are generally embedded within the broader capital project scopes, any current year expenditure would be reflected within the additions to Property, plant and equipment in note 11 ‘Property, plant and equipment’.
In addition, where relevant, the Group’s current best estimate of potential future operational interruptions is reflected in the internal valuations used as the basis for the Group’s impairment assessments. These estimates are informed by historical weather disruption patterns in addition to forward‑looking climate outlooks under different climate scenarios relevant to asset location and infrastructure.
Further detail on the Group’s significant judgements and estimates that inform the FY2026 impairment assessments is outlined in note 13 ‘Impairment of non-current assets’.
Assessing climate-related physical risk is inherently complex and subject to a high degree of uncertainty. The Group relies on external climate scenarios, which are periodically updated to reflect the latest scientific understanding of the impacts of climate change on weather patterns. Future updates to these scenarios may influence risk assessments and could result in material changes to financial results and the carrying values of assets and liabilities in future reporting periods. The timing and nature of any such changes are subject to significant uncertainty.
F-44
Table of Contents
Acquisition and use of carbon credits
The Group’s carbon credits, and offsetting strategy is managed at the Group level. The Group currently acquires carbon credits primarily for regulatory purposes. The Group’s plan is to achieve its FY2030 operational GHG emissions (Scopes 1 and 2 emissions from the Group’s operated assets) target through structural abatement, but if there is an unanticipated shortfall in the pathway to achieve the target, there may be a need to surrender voluntary carbon credits to close the performance gap. The Group will not use regulatory carbon credits when determining whether it has achieved its FY2030 target. The Group may also sell carbon credits, depending on internal use requirements, or originate carbon credits through project development or direct investment.
Acquired carbon credits are recognised as an asset initially at cost and are subsequently subject to impairment and/or net realisable value assessments. Classification of the asset reflects the intended manner of use:
The Group has also recognised prepayments of US$
Useful economic lives of property, plant and equipment
The determination of useful lives of the Group’s PP&E requires judgement, including consideration of the Group’s climate change strategy, targets and goals, decarbonisation plans and the possible impact of transition risks and opportunities on demand for the Group’s commodities.
Useful lives are reviewed each reporting period, including to ensure they do not exceed the remaining expected operating life of the operation in which they are utilised. The remaining lives of the Group’s operations reflect the Group’s planning range and its underlying climate-related assumptions.
Diesel combustion remains the single largest source of operational GHG emissions and the Group’s preferred option to displace diesel is via electrification. As the pace of development of some decarbonisation technology has been slowed by Original Equipment Manufacturers, particularly relating to delays in the displacement of diesel used for materials movement, the deployment into the Group’s operations is not anticipated until post FY2030.
The Group’s operational plans continue to assume the progressive replacement of haul trucks, and other diesel-powered equipment only at the end of their useful lives in line with the Group’s regular fleet renewal programs. Renewal programs are expected to utilise technology available at the time of the scheduled replacement. As such, expected fleet decarbonisation did not impact the Group’s existing fleet assets in FY2026.
Expenditure on operational decarbonisation
The Group has a medium-term target to reduce its operational GHG emissions (Scopes 1 and 2 from the Group’s operated assets) by at least
Operational decarbonisation activities to date have largely focused on transitioning the Group’s electricity supply to renewable sources. A significant proportion of the Group’s renewable electricity is currently sourced through power purchase agreements and judgement is required in determining the appropriate accounting treatment of such arrangements. Depending on the specific terms and conditions, power purchase agreements may be recognised as an expense when incurred, a financial derivative or a lease liability, with an associated right of use asset.
The majority of operational decarbonisation expenditure is associated with diesel displacement technologies. In FY2026, the Group incurred US$
Estimated future cash flows for the Group’s assets include amounts associated with projects aimed at contributing to the achievement of the Group’s medium-term target and long-term goal. These cash flow estimates form the basis of the Group’s impairment assessments as outlined in further detail in note 13 ‘Impairment of non-current assets’.
F-45
Table of Contents
All estimates require 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 further changes in external circumstances and/or any change to the Group’s climate change strategy could materially alter the expected level of expenditure on operational decarbonisation and the associated Financial Statement significant judgements and key estimates.
Expenditure to support value chain decarbonisation
The Group continues to invest in reducing GHG emissions from its value chain, including through partnership with others to influence technology innovation and development to support GHG emissions reductions by steelmaking customers and in the maritime industry.
In FY2026, this included expenditure of approximately US$
Given the inherent uncertainty in future technology and policy advancements, it is not currently possible to reliably estimate or measure the full potential Financial Statement impacts of the Group’s pursuit of its Scope 3 goals and targets.
Timing, scope and expected cost of closure and rehabilitation activities
The extent, timing and cost of the Group’s future closure activities may be impacted by potential climate-related physical and transition impacts. 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 climate change strategy on the costs and timing of performing closure activities and the impact of new technology where 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.
The estimated cost of closure activities includes management’s current best estimate in relation to post-closure monitoring and maintenance, which may be required for significant periods beyond the completion of other closure activities and is therefore exposed to potential long-term climate-related impacts. 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 a changing climate continue to evolve.
Given the long-lived nature of the majority of the Group’s assets, many final closure activities are not expected to occur for a significant period of time. However:
Further, while the Group is evaluating the approach to the closure of NSWEC and potential expenditure relating to an equitable change and transition for its workforce, the Group continues to engage with its employees and the community to understand and develop the most appropriate transition plan. As the Group’s approach is currently under development with impacted parties, it is not yet supported by a detailed, formal plan or commitment and therefore
More detail on the key judgements and estimates impacting the Group’s closure and rehabilitation provisions is presented in note 15 ‘Closure and rehabilitation provisions’.
F-46
Table of Contents
Capital structure
|
|
2026 |
|
2025 |
|
2024 |
|
|
shares |
|
shares |
|
shares |
Share capital issued - BHP Group Limited |
|
|
|
|
|
|
Opening number of shares |
|
|
|
|||
Issue of shares |
|
|
|
|||
Purchase of shares by ESOP Trusts |
|
( |
|
( |
|
( |
Employee share awards exercised following vesting |
|
|
|
|||
Movement in treasury shares under Employee Share Plans |
|
|
( |
|
( |
|
Closing number of shares |
|
|
|
|||
|
|
|
|
|
|
|
Comprising: |
|
|
|
|
|
|
Shares held by the public |
|
|
|
|||
Treasury shares |
|
|
|
In August 2025, BHP Group Limited issued
Share capital of BHP Group Limited at 30 June 2026 is composed of the following categories 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 fully paid ordinary 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. |
F-47
Table of Contents
|
|
2026 |
|
2025 |
|
2024 |
|
Recognition and measurement |
|
|
US$M |
|
US$M |
|
US$M |
|
|
Common control reserve |
|
( |
|
( |
|
( |
|
The common control reserve arose on unification of the Group’s corporate structure in FY2022 and represents the residual on consolidation between BHP Group Ltd's investment in BHP Group Plc (now known as BHP Group (UK) Ltd) and BHP Group Plc’s share capital, share premium and capital redemption reserve at the time of unification. |
Employee share awards reserve |
|
|
|
|
The employee share awards reserve represents the accrued employee entitlements to share awards that have been charged to the income statement and have not yet been exercised. |
|||
Cash flow hedge reserve |
|
( |
|
( |
|
|
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 on the hedge is recognised in the income statement when the hedged transaction impacts the income statement, or is recognised as an adjustment to the cost of non-financial hedged items. The hedging reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge relationship. |
|
Cost of hedging reserve |
|
( |
|
|
( |
|
The cost of hedging reserve represents the recognition of certain costs of hedging for example, basis adjustments, which have been excluded from the hedging relationship and deferred in other comprehensive income until the hedged transaction impacts the income statement. |
|
Foreign currency translation reserve |
|
( |
|
( |
|
( |
|
The foreign currency translation reserve represents exchange differences arising from the translation of non-US dollar functional currency operations within the Group into US dollars. |
Equity investments reserve |
|
|
|
( |
|
The equity investment reserve represents the revaluation of investments in shares recognised through other comprehensive income. Where a revalued financial asset is sold, the relevant portion of the reserve is transferred to retained earnings. |
||
Non-controlling interest contribution reserve |
|
|
|
|
The non-controlling interest contribution reserve represents the excess of consideration received over the book value of net assets attributable to equity instruments when acquired by non-controlling interests. |
|||
Total reserves |
|
|
( |
|
( |
|
|
F-48
Table of Contents
Summarised financial information relating to each of the Group’s subsidiaries with non-controlling interests (NCI) that are significant to the Group is shown below:
|
|
2026 |
|
2025 |
||||||||
US$M |
|
Minera |
|
Other |
|
Total |
|
Minera |
|
Other |
|
Total |
Group share (per cent) |
|
|
|
|
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
|
|
|
|
||
Non-current assets |
|
|
|
|
|
|
|
|
|
|
||
Current liabilities |
|
( |
|
|
|
|
|
( |
|
|
|
|
Non-current liabilities |
|
( |
|
|
|
|
|
( |
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
|
||
Net assets attributable to NCI |
|
|
|
|
|
|
||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
||
Profit after taxation |
|
|
|
|
|
|
|
|
|
|
||
Other comprehensive income |
|
( |
|
|
|
|
|
( |
|
|
|
|
Total comprehensive income |
|
|
|
|
|
|
|
|
|
|
||
Profit after taxation attributable to NCI |
|
|
|
|
|
|
||||||
Other comprehensive income attributable to NCI |
|
( |
|
|
( |
|
( |
|
( |
|
( |
|
Net operating cash flow |
|
|
|
|
|
|
|
|
|
|
||
Net investing cash flow |
|
( |
|
|
|
|
|
( |
|
|
|
|
Net financing cash flow |
|
( |
|
|
|
|
|
( |
|
|
|
|
Dividends paid to NCI |
|
|
|
|
|
|
||||||
While the Group controls Minera Escondida Limitada, the non-controlling interests hold certain protective rights that restrict the Group’s ability to sell assets held by Minera Escondida Limitada, or use the assets in other subsidiaries and operations owned by the Group. Minera Escondida Limitada is also restricted from paying dividends without the approval of the non-controlling interests.
|
|
Year ended |
|
Year ended |
|
Year ended |
||||||
|
|
Per share |
|
Total |
|
Per share |
|
Total |
|
Per share |
|
Total |
|
|
US cents |
|
US$M |
|
US cents |
|
US$M |
|
US cents |
|
US$M |
Dividends paid during the period |
|
|
|
|
|
|
|
|
|
|
|
|
Prior year final dividend |
|
|
|
|
|
|
||||||
Interim dividend |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
Dividends paid during the period differs from the amount of dividends paid in the Consolidated Cash Flow Statement as a result of foreign exchange gains and losses between the record date and the payment date of equity distributions. Settlements of US$
Each American Depositary Share (ADS) represents
Dividends are determined after period-end and announced with the results for the period. Interim dividends are determined in February and paid in March. Final dividends are determined in August and paid in September or October. Dividends determined are not recorded as a liability at the end of the period to which they relate. Subsequent to year-end, on 18 August 2026, BHP Group Limited determined a final dividend of US cents per share (US$
F-49
Table of Contents
BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Franking credits as at 30 June |
|
|
|
|||
Franking credits arising from the payment of current tax payable/(receivable) |
|
|
( |
|
||
Total franking credits available1 |
|
|
|
The disclosure below excludes closure and rehabilitation provisions (refer to note 15 'Closure and rehabilitation provisions'), employee benefits, restructuring and post-retirement employee benefits provisions (refer to note 27 'Employee benefits, restructuring and post-retirement employee benefits provisions') and the provision related to the Samarco dam failure (refer to note 4 'Significant events – Samarco dam failure').
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
At the beginning of the financial year |
|
|
||
Dividends determined |
|
|
||
Charge/(credit) for the year: |
|
|
|
|
Underlying |
|
|
||
Amortisation of discounting impacting net finance costs |
|
|
||
Exchange translation |
|
|
||
Released during the year |
|
( |
|
( |
Utilisation |
|
( |
|
( |
Dividends paid |
|
( |
|
( |
Divestment of subsidiaries and operations |
|
( |
|
|
Transfers and other movements |
|
( |
|
( |
At the end of the financial year |
|
|
||
Comprising: |
|
|
|
|
Current |
|
|
||
Non-current |
|
|
Financial management
The Group seeks to maintain a strong balance sheet and deploys its capital with reference to the Capital Allocation Framework.
The Group monitors capital using the net debt balance and the gearing ratio, being the ratio of net debt to net debt plus net assets.
The net debt definition includes the fair value of derivative financial instruments used to hedge cash and borrowings which reflects the Group’s risk management strategy of reducing the volatility of net debt caused by fluctuations in foreign exchange and interest rates.
Under IFRS 16/AASB 16 ‘Leases’ (IFRS 16), certain vessel lease contracts are required to be remeasured at each reporting date to the prevailing freight index. While these liabilities are included in the Group interest bearing liabilities, they are excluded from the net debt calculation as they do not align with how the Group assesses net debt for decision making in relation to the Capital
F-50
Table of Contents
Allocation Framework. In addition, the freight index has historically been volatile which creates significant short-term fluctuation in these liabilities.
|
|
2026 |
|
2025 |
||||
US$M |
|
Current |
|
Non-current |
|
Current |
|
Non-current |
Interest bearing liabilities |
|
|
|
|
|
|
|
|
Bank loans |
|
|
|
|
||||
Notes and debentures |
|
|
|
|
||||
Lease liabilities |
|
|
|
|
||||
Bank overdraft and short-term borrowings |
|
|
– |
|
|
– |
||
Other |
|
|
|
|
||||
Total interest bearing liabilities |
|
|
|
|
||||
Less: Lease liability associated with index-linked freight contracts |
|
|
|
|
||||
Less: Cash and cash equivalents |
|
|
|
|
|
|
|
|
Cash |
|
|
– |
|
|
– |
||
Short-term deposits |
|
|
– |
|
|
– |
||
Less: Total cash and cash equivalents |
|
|
– |
|
|
– |
||
Less: Derivatives included in net debt |
|
|
|
|
|
|
|
|
Net debt management related instruments1 |
|
|
( |
|
|
( |
||
Net cash management related instruments2 |
|
|
|
( |
|
|||
Less: Total derivatives included in net debt |
|
|
( |
|
( |
|
( |
|
Net debt |
|
|
|
|
|
|
||
Net assets |
|
|
|
|
|
|
||
Gearing |
|
|
|
|
|
|
||
Cash and short-term deposits are disclosed in the cash flow statement net of bank overdrafts and interest bearing liabilities at call.
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Total cash and cash equivalents |
|
|
|
|||
Bank overdrafts and short-term borrowings |
|
|
( |
|
( |
|
Total cash and cash equivalents, net of overdrafts |
|
|
|
Cash and cash equivalents includes US$
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 22 'Leases' and note 24 'Financial risk management' for the recognition and measurement principles for lease liabilities and other financial liabilities.
F-51
Table of Contents
Interest bearing liabilities and cash and cash equivalents include balances denominated in the following currencies:
|
|
Interest bearing liabilities |
|
Cash and cash equivalents |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
|
US$M |
|
US$M |
USD |
|
|
|
|
||||
EUR |
|
|
|
|
||||
AUD |
|
|
|
|
||||
GBP |
|
|
|
|
||||
CAD |
|
|
|
|
||||
Other |
|
|
|
|
||||
Total |
|
|
|
|
||||
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 24 '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 A1/P-1 outlook stable (long-term/short-term). The Group’s Fitch rating has remained at A/F1 outlook stable (long-term/short-term).
There were
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. Additionally, derivatives are subject to tenor limits and investments are subject to concentration limits by rating.
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 US$
F-52
Table of Contents
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:
2026 |
|
Bank loans, |
|
Expected |
|
Derivatives |
|
Other |
|
Obligations |
|
Trade and |
|
|
US$M |
|
loans |
|
payments |
|
debentures |
|
liabilities1 |
|
liabilities2 |
|
payables3 |
|
Total |
Due for payment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In one year or less or on demand |
|
|
|
|
|
|
|
|||||||
In more than one year but not more than two years |
|
|
|
|
|
|
|
|||||||
In more than two years but not more than five years |
|
|
|
|
|
|
|
|||||||
In more than five years |
|
|
|
|
|
|
|
|||||||
Total |
|
|
|
|
|
|
|
|||||||
Carrying amount |
|
|
– |
|
|
|
|
|
2025 |
|
Bank loans, |
|
Expected |
|
Derivatives |
|
Other |
|
Obligations |
|
Trade and |
|
|
US$M |
|
loans |
|
payments |
|
debentures |
|
liabilities |
|
liabilities2 |
|
payables3 |
|
Total |
Due for payment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In one year or less or on demand |
|
|
|
|
|
|
|
|||||||
In more than one year but not more than two years |
|
|
|
|
|
|
|
|||||||
In more than two years but not more than five years |
|
|
|
|
|
|
|
|||||||
In more than five years |
|
|
|
|
|
|
|
|||||||
Total |
|
|
|
|
|
|
|
|||||||
Carrying amount |
|
|
– |
|
|
|
|
|
Movements in the Group’s lease liabilities during the year are as follows:
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
At the beginning of the financial year |
|
|
||
Additions |
|
|
||
Remeasurements of index-linked freight contracts |
|
|
( |
|
Lease payments |
|
( |
|
( |
Foreign exchange movement |
|
|
( |
|
Amortisation of discounting |
|
|
||
Transfers and other movements |
|
( |
|
( |
At the end of the financial year |
|
|
||
Comprising: |
|
|
|
|
Current liabilities |
|
|
||
Non-current liabilities |
|
|
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
F-53
Table of Contents
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.
Refer to note 21 ‘Net debt’ for maturity profile of lease liabilities based on the undiscounted contractual amounts.
At 30 June 2026, commitments for leases not yet commenced based on undiscounted contractual amounts were US$
Movements in the Group’s right-of-use assets during the year are as follows:
|
|
2026 |
|
2025 |
||||||||
|
|
Land and |
|
Plant and |
|
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 |
|
|
|
|
|
|
||||||
Additions |
|
|
|
|
|
|
||||||
Remeasurements of index-linked freight contracts |
|
|
|
|
|
( |
|
( |
||||
Depreciation expensed during the period |
|
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Impairments for the year |
|
|
( |
|
( |
|
|
|
||||
Transfers and other movements |
|
|
( |
|
( |
|
( |
|
|
|||
At the end of the financial year |
|
|
|
|
|
|
||||||
– Cost |
|
|
|
|
|
|
||||||
– Accumulated depreciation and impairments |
|
( |
|
( |
|
( |
|
( |
|
( |
|
( |
Right-of-use assets are included within the underlying asset classes in Property, plant and equipment. Refer to note 11 'Property, plant and equipment'.
Amounts recorded in the income statement and the cash flow statement for the year were:
|
|
2026 |
|
2025 |
|
2024 |
|
Included within |
|
|
US$M |
|
US$M |
|
US$M |
|
|
Income statement |
|
|
|
|
|
|
|
|
Depreciation of right-of-use assets |
|
|
|
|
Profit from operations |
|||
Short-term, low-value and variable lease costs1 |
|
|
|
|
Profit from operations |
|||
Interest on lease liabilities |
|
|
|
|
Financial expenses |
|||
|
|
|
|
|
|
|
|
|
Cash flow statement |
|
|
|
|
|
|
|
|
Principal lease payments |
|
|
|
|
Cash flows from financing activities |
|||
Lease interest payments |
|
|
|
|
Cash flows from operating activities |
Recognition and measurement
All leases with the exception of short-term (under 12 months) and low-value leases are recognised on the balance sheet, as a right-of-use asset and a corresponding interest bearing liability. Lease liabilities are initially measured at the present value of the future lease payments from the lease commencement date and are subsequently adjusted to reflect the interest on lease liabilities, lease payments and any remeasurements due to, for example, lease modifications or a change to future lease payments linked to an index or rate. Lease payments are discounted using the interest rate implicit in the lease or, where the rate is not readily determinable, the interest payments are discounted at the Group’s weighted average incremental borrowing rate, adjusted to reflect factors specific to the lease, including where relevant the currency, tenor and location of the lease.
F-54
Table of Contents
In addition to containing a lease, the Group’s contractual arrangements may include non-lease components. For example, certain mining services arrangements involve the provision of additional services, including maintenance, drilling activities and the supply of personnel. The Group has elected to separate these non-lease components from the lease components in measuring lease liabilities. Non-lease components are accounted for in accordance with the accounting policies applied to each underlying good or service received.
Low-value and short-term leases are expensed to the income statement. Variable lease payments not dependent on an index or rate are excluded from lease liabilities, and expensed to the income statement.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost will initially correspond to the lease liability, adjusted for initial direct costs, lease payments made prior to lease commencement, capitalised provisions for closure and rehabilitation and any lease incentives received.
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).
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 asset. In the event the Group is the sole signatory to a lease, and therefore has the sole legal obligation to make lease payments, the lease liability is recognised in full. Where the associated right-of-use asset is sub-leased (under a finance sub-lease) to a joint operation, for instance where it is dedicated to a single operation and the joint operation has the right to direct the use of the asset, the Group (as lessor) recognises its proportionate share of the right-of-use asset and a net investment in the lease, representing amounts to be recovered from the other parties to the joint operation. If the Group is not party to the head lease contract but sub-leases the associated right-of-use asset (as lessee), it recognises its proportionate share of the right-of-use asset and a lease liability which is payable to the operator.
Key judgements and estimates Judgements: Certain contractual arrangements not in the form of a lease require the Group to apply significant judgement in evaluating whether the Group controls the right to direct the use of assets and therefore whether the contract contains a lease. Management considers all facts and circumstances in determining whether the Group or the supplier has the rights to direct how, and for what purpose, the underlying assets are used in certain mining contracts and other arrangements, including outsourcing and shipping arrangements. Judgement is used to assess which decision-making rights mostly affect the benefits of use of the assets for each arrangement. Where a contract includes the provision of non-lease services, judgement is required to identify the lease and non-lease components. Estimates: Where the Group cannot readily determine the interest rate implicit in the lease, estimation is involved in the determination of the weighted average incremental borrowing rate to measure lease liabilities. The incremental borrowing rate reflects the rates of interest a lessee would have to pay to borrow over a similar term, with similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment. Under the Group’s portfolio approach to debt management, the Group does not specifically borrow for asset purchases. Therefore, the incremental borrowing rate is estimated referencing the Group’s corporate borrowing portfolio and other similar rated entities, adjusted to reflect the terms and conditions of the lease (including the impact of currency, credit rating of subsidiary entering into the lease and the term of the lease), at the inception of the lease arrangement or the time of lease modification. 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 components. |
F-55
Table of Contents
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$M |
|
US$M |
|
US$M |
Financial expenses |
|
|
|
|
|
|
Interest expense using the effective interest rate method: |
|
|
|
|
|
|
Interest on bank loans, overdrafts and all other borrowings |
|
|
|
|||
Interest capitalised at |
|
( |
|
( |
|
( |
Interest on lease liabilities |
|
|
|
|||
Discounting on streaming arrangement liability2 |
|
|
|
|||
Discounting on provisions and other liabilities |
|
|
|
|||
Other gains and losses: |
|
|
|
|
|
|
Fair value change on hedged loans |
|
( |
|
|
( |
|
Fair value change on hedging derivatives |
|
|
( |
|
||
Remeasurement of streaming arrangement liability2 |
|
|
|
|||
Exchange variations on net debt |
|
( |
|
( |
|
|
Other |
|
|
|
|||
Total financial expenses |
|
|
|
|||
Financial income |
|
|
|
|
|
|
Interest income |
|
( |
|
( |
|
( |
Other |
|
( |
|
( |
|
– |
Total financial income |
|
( |
|
( |
|
( |
Net finance costs |
|
|
|
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.
24.1 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.
F-56
Table of Contents
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. 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. 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. |
|
Measuring and reporting the exposure in customer commodity contracts and issued debt instruments.
Executing hedging derivatives to align the total group exposure to the index target. 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 2026,
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 24.4 ‘Derivatives and hedge accounting’.
Based on the net debt position as at 30 June 2026, taking into account interest rate swaps and cross currency interest rate swaps, it is estimated that a
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:
The Group’s foreign currency risk is managed as part of the portfolio risk management strategy.
F-57
Table of Contents
Translational exposure in respect of non-functional currency monetary items
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 |
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
AUD |
|
( |
|
( |
CLP |
|
( |
|
( |
CAD |
|
( |
|
( |
EUR |
|
( |
|
( |
GBP |
|
|
( |
|
BRL |
|
|
||
Other |
|
|
||
Total |
|
( |
|
( |
The principal non-functional currencies to which the Group is exposed are the Australian dollar, the Canadian dollar, the Chilean peso, the Pound sterling, the Brazilian real and the Euro. Based on the Group’s net financial assets and liabilities as at 30 June 2026, a weakening of the US dollar against these currencies ( cent strengthening in Australian dollar, cent strengthening in Canadian dollar,
Transactional exposure in respect of non-functional currency expenditure and revenues
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 assets at fair value of US$
Other financial assets at fair value includes US$
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 forward prices in the quotation period. The Group’s exposure at 30 June 2026 to the impact of movements in commodity prices upon provisionally invoiced sales and purchases volumes was predominately around copper.
F-58
Table of Contents
The Group had
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 21 '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 21 'Net debt' for details on the Group credit risk.
24.2 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 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.
F-59
Table of Contents
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. |
F-60
Table of Contents
24.3 Financial assets and liabilities
The financial assets and liabilities are presented by class in the table below at their carrying amounts.
|
|
IFRS 13 |
|
|
|
|
|
|
|
|
Fair value |
|
|
|
|
|
|
|
|
hierarchy |
|
IFRS 9 |
|
2026 |
|
2025 |
|
|
Level1 |
|
Classification |
|
US$M |
|
US$M |
Current cross currency and interest rate swaps2 |
|
2 |
|
Fair value through profit or loss |
|
|
||
Current other derivative contracts3 |
|
2,3 |
|
Fair value through profit or loss |
|
|
||
Current other financial assets4 |
|
3 |
|
Fair value through profit or loss |
|
|
||
Current other financial assets5 |
|
|
|
Amortised cost |
|
|
||
Current other investments6 |
|
1,2 |
|
Fair value through profit or loss |
|
|
||
Non-current cross currency and interest rate swaps2 |
|
2 |
|
Fair value through profit or loss |
|
|
||
Non-current other derivative contracts3 |
|
2,3 |
|
Fair value through profit or loss |
|
|
||
Non-current other financial assets4 |
|
3 |
|
Fair value through profit or loss |
|
|
||
Non-current other financial assets5,7 |
|
|
|
Amortised cost |
|
|
||
Non-current investment in shares |
|
1,3 |
|
Fair value through other |
|
|
||
Non-current other investments6 |
|
1,2 |
|
Fair value through profit or loss |
|
|
||
Total other financial assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
Amortised cost |
|
|
||
Trade and other receivables8 |
|
|
|
Amortised cost |
|
|
||
Provisionally priced trade receivables |
|
2 |
|
Fair value through profit or loss |
|
|
||
Total financial assets |
|
|
|
|
|
|
||
Non-financial assets |
|
|
|
|
|
|
||
Total assets |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Current other derivative contracts |
|
2 |
|
Fair value through profit or loss |
|
|
||
Current other financial liabilities9 |
|
|
|
Amortised cost |
|
|
||
Non-current cross currency and interest rate swaps2 |
|
2 |
|
Fair value through profit or loss |
|
|
||
Non-current other financial liabilities9 |
|
|
|
Amortised cost |
|
|
||
Total other financial liabilities |
|
|
|
|
|
|
||
Trade and other payables10 |
|
|
|
Amortised cost |
|
|
||
Provisionally priced trade payables |
|
2 |
|
Fair value through profit or loss |
|
|
||
Bank overdrafts and short-term borrowings11 |
|
|
|
Amortised cost |
|
|
||
Bank loans11 |
|
|
|
Amortised cost |
|
|
||
Notes and debentures11 |
|
|
|
Amortised cost |
|
|
||
Lease liabilities12 |
|
|
|
|
|
|
||
Other11 |
|
|
|
Amortised cost |
|
|
||
Total financial liabilities |
|
|
|
|
|
|
||
Non-financial liabilities |
|
|
|
|
|
|
||
Total liabilities |
|
|
|
|
|
|
F-61
Table of Contents
The carrying amounts in the table above generally approximate to fair value. In the case of US$
For financial instruments that are carried at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the fair value 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 offsetting criteria in IAS 32/AASB 132 ‘Financial Instruments: Presentation’, but allow for the related amounts to be set-off in certain circumstances. The amounts set out as cross currency and interest rate swaps in the table above represent the derivative financial assets and liabilities of the Group that may be subject to the above arrangements and are presented on a gross basis.
Streaming arrangement liability
On 17 February 2026, the Group announced a long-term streaming agreement with Wheaton Precious Metals International Ltd (Wheaton), effective 1 April 2026. Under the agreement, the Group received an upfront payment of US$
The Group will deliver the equivalent of
The stream will be settled via purchase and delivery of metal credits to Wheaton, as such the arrangement meets the definition of a financial instrument under IFRS 9 and is accounted for as an other financial liability classified as amortised cost.
In order to determine the discount rate implicit in the arrangement, management is required to estimate expected future cash flows required to purchase metal credits to settle the stream based on assumptions for Antamina production volumes and silver prices. While the discount rate implicit in the arrangement will not change over the life of the arrangement, reassessment of Antamina production volumes and silver price may require remeasurement of the liability in future reporting periods.
F-62
Table of Contents
Key judgements and estimates Estimates: The significant estimates impacting the amortised cost balance of the other financial liability associated with the Antamina silver streaming agreement are: Future production volumes The Antamina silver streaming agreement is a life of mine agreement linked to Antamina’s silver production. Estimated production volumes took into account Antamina’s existing development plans along with risked reserves and resources, that a market participant would consider when valuing the stream, but do not currently meet the criteria to be treated as proved. Commodity prices Commodity prices were based on latest internal forecasts which are benchmarked with external sources of information such as analyst forecasts. |
24.4 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.
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:
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:
F-63
Table of Contents
|
|
|
|
|
|
Fair value of derivatives |
|
|
||||||||||||
2026 |
|
Carrying |
|
De- |
|
Foreign |
|
Interest |
|
Recognised |
|
Recognised |
|
Recognised |
|
Accrued |
|
|
|
Hedged |
US$M |
|
debentures |
|
hedges1 |
|
rates |
|
risk |
|
reserve |
|
reserve |
|
statement2 |
|
flows |
|
Total |
|
debentures3 |
|
|
A |
|
B |
|
C |
|
D |
|
E |
|
F |
|
G |
|
H |
|
C to H |
|
A + B + C + D |
USD |
|
|
|
|
|
|
|
( |
|
( |
|
|
||||||||
GBP |
|
|
|
|
|
|
|
( |
|
|
|
|||||||||
EUR |
|
|
|
|
|
|
|
( |
|
( |
|
|
||||||||
Total |
|
|
|
|
|
|
|
( |
|
( |
|
|
||||||||
|
|
|
|
|
|
Fair value of derivatives |
|
|
||||||||||||
2025 |
|
Carrying |
|
De- |
|
Foreign |
|
Interest |
|
Recognised |
|
Recognised |
|
Recognised |
|
Accrued |
|
|
|
Hedged |
US$M |
|
debentures |
|
hedges1 |
|
rates |
|
risk |
|
reserve |
|
reserve |
|
statement2 |
|
flows |
|
Total |
|
debentures3 |
|
|
A |
|
B |
|
C |
|
D |
|
E |
|
F |
|
G |
|
H |
|
C to H |
|
A + B + C + D |
USD |
|
|
|
|
|
|
|
( |
|
( |
|
|
||||||||
GBP |
|
|
|
|
|
( |
|
|
( |
|
|
|
||||||||
EUR |
|
|
|
|
|
|
( |
|
( |
|
( |
|
( |
|
||||||
Total |
|
|
|
|
|
|
( |
|
( |
|
( |
|
|
|||||||
The weighted average interest rate payable is
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 18 'Other equity'.
2026 |
|
Cash flow hedging reserve |
|
Cost of hedging reserve |
|
Total |
||||||||
US$M |
|
Gross |
|
Tax |
|
Net |
|
Gross |
|
Tax |
|
Net |
|
|
At the beginning of the financial year |
|
( |
|
|
( |
|
|
( |
|
|
( |
|||
Add: Change in fair value of hedging instrument recognised in OCI |
|
( |
|
|
( |
|
( |
|
|
( |
|
( |
||
Less: Reclassified from reserves to financial expenses – recognised through OCI |
|
|
( |
|
|
|
|
|
||||||
At the end of the financial year |
|
( |
|
|
( |
|
( |
|
|
( |
|
( |
||
2025 |
|
Cash flow hedging reserve |
|
Cost of hedging reserve |
|
Total |
||||||||
US$M |
|
Gross |
|
Tax |
|
Net |
|
Gross |
|
Tax |
|
Net |
|
|
At the beginning of the financial year |
|
|
( |
|
|
( |
|
|
( |
|
||||
Add: Change in fair value of hedging instrument recognised in OCI |
|
|
( |
|
|
|
( |
|
|
|||||
Less: Reclassified from reserves to financial expenses – recognised through OCI |
|
( |
|
|
( |
|
|
|
|
( |
||||
At the end of the financial year |
|
( |
|
|
( |
|
|
( |
|
|
( |
|||
F-64
Table of Contents
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 |
|
|
||||||||
2026 |
|
Bank |
|
Notes and |
|
Lease |
|
Bank |
|
|
|
Cross |
|
|
US$M |
|
loans |
|
debentures |
|
liabilities |
|
borrowings |
|
Other |
|
rate swaps |
|
Total |
At the beginning of the financial year |
|
|
|
|
|
|
|
|
||||||
Proceeds from interest bearing liabilities |
|
|
|
|
|
|
|
|||||||
Settlements of debt related instruments |
|
|
|
|
|
|
( |
|
( |
|||||
Repayment of interest bearing liabilities |
|
( |
|
( |
|
( |
|
|
( |
|
|
( |
||
Change from Net financing cash flows |
|
|
|
( |
|
|
( |
|
( |
|
||||
Other movements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate impacts |
|
( |
|
( |
|
|
|
|
|
|
||||
Foreign exchange impacts |
|
|
( |
|
|
|
( |
|
|
|
||||
Lease additions |
|
|
|
|
|
|
|
|
||||||
Remeasurement of index-linked freight contracts |
|
|
|
|
|
|
|
|
||||||
Other interest bearing liabilities/ derivative related changes |
|
|
|
( |
|
( |
|
|
|
|
||||
At the end of the financial year |
|
|
|
|
|
|
|
|
||||||
|
|
Interest bearing liabilities |
|
Derivatives |
|
|
||||||||
2025 |
|
Bank |
|
Notes and |
|
Lease |
|
Bank |
|
|
|
Cross |
|
|
US$M |
|
loans |
|
debentures |
|
liabilities |
|
borrowings |
|
Other |
|
rate swaps |
|
Total |
At the beginning of the financial year |
|
|
|
|
|
|
|
|
||||||
Proceeds from interest bearing liabilities |
|
|
|
|
|
|
|
|||||||
Settlements of debt related instruments |
|
|
|
|
|
|
( |
|
( |
|||||
Repayment of interest bearing liabilities |
|
( |
|
( |
|
( |
|
|
( |
|
|
( |
||
Change from Net financing cash flows |
|
|
|
( |
|
|
( |
|
( |
|
||||
Other movements: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate impacts |
|
|
|
|
|
|
( |
|
|
|||||
Foreign exchange impacts |
|
|
|
( |
|
|
|
( |
|
|
||||
Lease additions |
|
|
|
|
|
|
|
|
||||||
Remeasurement of index-linked freight contracts |
|
|
|
( |
|
|
|
|
|
|||||
Other interest bearing liabilities/ derivative related changes |
|
( |
|
|
( |
|
( |
|
|
( |
|
|
||
At the end of the financial year |
|
|
|
|
|
|
|
|
||||||
F-65
Table of Contents
Employee matters
Key management personnel compensation comprises:
|
|
2026 |
|
2025 |
|
2024 |
|
|
US$ |
|
US$ |
|
US$ |
Short-term employee benefits |
|
|
|
|||
Post-employment benefits |
|
|
|
|||
Share-based payments |
|
|
|
|||
Total |
|
|
|
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 Directors, the CEO, the Chief Financial Officer, the President Australia and the President Americas.
Transactions and outstanding loans/amounts with key management personnel
There were
There were
There were
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
For more information on remuneration and transactions with KMP, refer to the Remuneration Report under Governance.
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), Long Term Incentive Plan (LTIP), Management Award Plan (MAP) and the all-employee share plan, Shareplus.
Some awards are eligible to receive a Dividend Equivalent Payment (DEP) which is paid as either a cash payment, or the equivalent value awarded in shares, equal to the dividend amount that would have been earned on the underlying shares awarded. DEP is paid/allocated once the underlying shares are allocated or transferred to plan participants. 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.
F-66
Table of Contents
The table below provides a description of each of the plans.
Plan |
|
CDP |
|
LTIP1 and MAP |
|
Shareplus |
Type |
|
|
|
|||
Overview |
|
CDP awards are split into three equal parts - a cash component paid annually, and The two awards of deferred rights are the equivalent value of the CDP cash award, vesting between and |
|
The MAP is a long term incentive plan for BHP senior management who are not Executive KMP. The number of share rights awarded is determined by a participant’s role and grade and generally vest in three years. Awards of share rights may also be granted to members of the Executive Leadership Team as additional retention awards with vesting periods of between one and five years. |
|
F-67
Table of Contents
Vesting conditions |
|
Vesting of the four-year awards are subject to service and individual performance conditions. Vesting of the five-year awards are subject to a service condition and underpinned by a holistic review of performance encompassing safety and sustainability including climate, financial, corporate governance and conduct at the end of the five-year period. |
|
From FY2023 BHP’s performance is assessed over the five-year period against the relative Total Shareholder Return (TSR) of two comparator groups - Morgan Stanley Capital International (MSCI) market indices, the MSCI World Metals and Mining Index (‘Sector Group TSR’) and the MSCI World Index (‘World TSR’). The Sector Group TSR determines the vesting of Vesting of LTIP awards is underpinned by a holistic performance review of safety, sustainability, financials, corporate governance and conduct at the end of the five-year performance period. MAP: Service conditions only. |
|
|
Vesting period |
|
|
MAP – |
|
||
Dividend Equivalent Payment |
|
|
MAP – Yes - from FY2026 |
|
||
Exercise period |
|
|
|
F-68
Table of Contents
Employee share awards
2026 |
|
Number of |
|
Number of |
|
Number of |
|
Number of |
|
Number of |
|
Weighted |
|
Weighted |
CDP awards |
|
|
|
|
|
|
|
|||||||
LTIP awards |
|
|
|
|
|
|
|
|||||||
MAP awards |
|
|
|
|
|
|
|
|||||||
Shareplus |
|
|
|
|
|
|
|
Fair value and assumptions in the calculation of fair value for awards issued
2026 |
|
Weighted |
|
Risk-free |
|
Estimated life |
|
Share price at |
|
Estimated |
|
Dividend yield |
CDP awards |
|
|
n/a |
|
|
|
n/a |
|
n/a |
|||
LTIP awards |
|
|
|
|
|
|
n/a |
|||||
MAP awards1 |
|
|
n/a |
|
|
/ |
|
n/a |
|
n/a |
||
Shareplus |
|
|
n/a |
|
|
|
n/a |
|
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:
Where awards are forfeited because non-market-based vesting conditions are not satisfied, the expense previously recognised is proportionately reversed.
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 Group 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.
F-69
Table of Contents
|
|
2026 |
|
2025 |
|
|
US$M |
|
US$M |
Employee benefits1 |
|
|
||
Restructuring2 |
|
|
||
Post-retirement employee benefits3 |
|
|
||
Total provisions |
|
|
||
Comprising: |
|
|
|
|
Current |
|
|
||
Non-current |
|
|
2026 |
|
Employee |
|
Restructuring2 |
|
Post- |
|
Total |
|
|
US$M |
|
US$M |
|
US$M |
|
US$M |
At the beginning of the financial year |
|
|
|
|
||||
Charge/(credit) for the year: |
|
|
|
|
|
|
|
|
Underlying |
|
|
|
|
||||
Discounting |
|
|
|
|
||||
Yield on defined benefit scheme assets |
|
|
|
( |
|
( |
||
Exchange variations |
|
|
|
|
||||
Released during the year |
|
( |
|
( |
|
( |
|
( |
Remeasurement losses taken to retained earnings |
|
|
|
|
||||
Utilisation |
|
( |
|
( |
|
( |
|
( |
Divestment of subsidiaries and operations |
|
( |
|
|
|
( |
||
Transfers and other movements |
|
( |
|
|
|
( |
||
At the end of the financial year |
|
|
|
|
Recognition and measurement
Provisions are recognised by the Group when:
F-70
Table of Contents
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. Other liabilities for unpaid wages and salaries related to the current period are recognised in other creditors. |
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$ 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. |
F-71
Table of Contents
Group and related party information
Significant subsidiaries of the Group are those with the most significant contribution to the Group’s net profit or net assets.
|
|
|
|
|
|
Group’s interest |
||
|
|
Country of |
|
|
|
2026 |
|
2025 |
Significant subsidiaries |
|
incorporation |
|
Principal activity |
|
% |
|
% |
Coal |
|
|
|
|
|
|
|
|
Hunter Valley Energy Coal Pty Ltd |
|
|
|
|
||||
Copper |
|
|
|
|
|
|
|
|
BHP Olympic Dam Corporation Pty Ltd |
|
|
|
|
||||
Compañia Minera Cerro Colorado Limitada |
|
|
|
|
||||
Minera Escondida Ltda1 |
|
|
|
|
||||
Minera Spence SA |
|
|
|
|
||||
OZ Minerals Carrapateena Pty Ltd |
|
|
|
|
||||
OZ Minerals Prominent Hill Operations Pty Ltd |
|
|
|
|
||||
Iron Ore |
|
|
|
|
|
|
|
|
BHP Iron Ore (Jimblebar) Pty Ltd2 |
|
|
|
|
||||
BHP Iron Ore Pty Ltd |
|
|
|
|
||||
BHP (Towage Services) Pty Ltd |
|
|
|
|
||||
Marketing |
|
|
|
|
|
|
|
|
BHP Billiton Freight Singapore Pte Limited |
|
|
|
|
||||
BHP Billiton Marketing AG |
|
|
|
|
||||
BHP Billiton Marketing Asia Pte Ltd |
|
|
|
|
||||
Group and Unallocated |
|
|
|
|
|
|
|
|
BHP Billiton Finance B.V. |
|
|
|
|
||||
BHP Billiton Finance Limited |
|
|
|
|
||||
BHP Billiton Finance (USA) Limited |
|
|
|
|
||||
BHP Billiton Group Limited |
|
|
|
|
||||
BHP Canada Inc. |
|
|
|
|
||||
BHP Group Operations Pty Ltd |
|
|
|
|
||||
BHP Nickel West Pty Ltd3 |
|
|
|
|
||||
OZ Minerals Musgrave Operations Pty Ltd3 |
|
|
|
|
||||
WMC Finance (USA) Limited |
|
|
|
|
||||
F-72
Table of Contents
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.
|
|
Country of |
|
|
|
|
|
|
|
Ownership interest |
||
|
|
principal |
|
Associate or |
|
Principal |
|
Reporting |
|
2026 |
|
2025 |
Significant associates and joint ventures |
|
place of business |
|
joint venture |
|
activity |
|
date |
|
% |
|
% |
Compañía Minera Antamina S.A. (Antamina) |
|
|
Associate |
|
|
|
|
|||||
Samarco Mineração S.A. (Samarco) |
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Joint venture |
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|
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Vicuña Corp (Vicuña) |
|
|
Joint venture |
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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.
BHP Investments Canada Inc. (BHP Canada) and Lundin Mining each own
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 2026 |
|
Investment in |
|
Investment in |
|
Total equity |
At the beginning of the financial year |
|
|
|
|||
Profit/(loss) from equity accounted investments, related impairments and expenses1 |
|
|
( |
|
||
Investment in equity accounted investments |
|
|
|
|||
Dividends received from equity accounted investments |
|
( |
|
|
( |
|
Divestment of equity accounted investments |
|
( |
|
|
( |
|
Other |
|
|
|
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At the end of the financial year |
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|
F-73
Table of Contents
The following table summarises the financial information relating to each of the Group’s significant equity accounted investments.
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|
Associates |
|
Joint ventures |
|
|
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2026 |
|
|
|
Individually |
|
|
|
|
|
|
|
Individually |
|
|
US$M |
|
Antamina |
|
immaterial |
|
Samarco1 |
|
|
Vicuña |
|
|
immaterial |
|
Total |
Current assets |
|
|
|
|
2 |
|
2 |
|
|
|
|
|||
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
( |
|
|
|
( |
3 |
|
( |
3 |
|
|
|
|
Non-current liabilities |
|
( |
|
|
|
( |
4 |
|
( |
4 |
|
|
|
|
Net assets/(liabilities) – 100% |
|
|
|
|
( |
|
|
|
|
|
|
|
||
Net assets/(liabilities) – Group share |
|
|
|
|
( |
|
|
|
|
|
|
|
||
Adjustments to net assets related to accounting policy adjustments |
|
( |
|
|
|
|
|
|
|
|
|
|
||
Investment in Samarco |
|
– |
|
|
|
5 |
|
– |
|
|
|
|
|
|
Impairment of the carrying value of the investment in Samarco |
|
– |
|
|
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Filing: 20-F - BHP Group Ltd (BHP,BHPLF) | |||||||||