BHP Group Regulatory News (BHP)

Financial results for the year ended 30 June 2023

22 August 2023

News release 14/23

Safety

Operational performance

Two fatalities

Iron ore Up 1% Copper Up 9% Nickel Up 4%

We continue to improve our systems, processes and engineered controls, and emphasise the safety culture that must be present every day to eliminate fatalities and serious injuries at BHP.

We achieved production records at Western Australia Iron Ore (WAIO), Olympic Dam and Spence. Full year production guidance was achieved for copper, iron ore, metallurgical coal, energy coal and nickel.

Financial results

Payments to governments

Attributable profit - total operations

US$12.9 bn Down 58%

FY22 US$30.9 bn

Total payments to governments

US$13.8 bn

FY22 US$17.3i bn

Revenue decreased US$11.3 bn due to significantly lower prices in key commodities. We managed the impact of inflation on costs well relative to our competitors. Underlying attributable profitii (which adjusts FY22 for discontinued operations of US$10.7 bn) reduced by 37% to US$13.4 bn.

Tax, royalty and other payments to governmentsi made during FY23 resulted in a global adjusted effective tax rateii of 30.9%, and 41.3% with revenue and production based royalties included.

Capital management

Capital and exploration expenditureii

US$7.1 bn Up 16%

FY22 US$6.1 bn

Fully franked final dividend

US$0.80 per share

Up $0.13 per share above the minimum 50% payout (59% payout)

We increased our exposure to future-facing commodities and ~70% of our medium term capital spend is expected to be focused in these commodities.

We have determined a final dividend of US$4.1bn. This brings total cash returns to shareholders announced for the year of US$1.70 per share, fully franked.

Decarbonisation

Safe, inclusive, and future-ready workforce

Operational GHG emissions

9.8 Mt CO2-e Down 11%

FY22 11.0 Mt CO2-e

Female employee representation

35.2% Up 2.9% pts

FY22 32.3%

In June 2023, we shared an update on our plan to achieve our operational decarbonisation target and goal, and we are on track to meet our FY30 target to reduce Scope 1 and Scope 2 emissions from our operated assets by at least 30% from FY20 levels.

We now have seven collaborative partnerships with steelmakers responsible for ~19% of reported global steel productioniv to support our Scope 3 goals.

Doubled from 17.6% in CY16, and a point of differentiation to our competitors.

Approximately 48% of our external hires in FY23 were female. We improved our representation of women in leadership to 29.7%, which is also well ahead of our competitors.

Healthy environment

Responsible supply chains

Natural capital accountingpilot completed

BHP Responsible MineralsProgram commenced

A mining industry first at Beenup. We also completed important biodiversity and/or ecosystems baseline mapping for all land and water areas at our operated assets (excluding legacy assetsv) and released Context Based Water Targets that apply until FY30.

A fit for purpose due diligence program for our minerals and metals supply chain aligned with OECD guidance. For further information, refer to BHP Responsible Minerals Program.

Indigenous partnerships

Thriving, empowered communities

Indigenous procurement spend

US$333 m Up 122%

FY22 US$150 m

Indigenous employee representation

8.6% Australia

9.7% Chile

7.7% Canada

Total economic contributionvi

US$54.2 bn

FY22 US$82.5 bn

During FY23, we released our sixth Reconciliation Action Plan, which was recognised with 'Elevate' status by Reconciliation Australia, and our updated Indigenous Peoples Policy Statement. Both considered Indigenous voices in the process.

We contributed US$40.8 bn to suppliers, community and social investments, employees and governments during the year. This was 75% of our total economic contribution with shareholder payments being US$13.4bn (25%).

In FY23, social investment of ~US$150 m consisted of funding such as direct community development, environmental projects and to the BHP Foundation to address some of the most critical sustainable development challenges facing society that are directly relevant to the resources sector.

Detailed information on social value is included in Appendix 1 and OFR 6 in the Annual Report

Revenue

US$53.8 bn Down 17%

FY22 US$65.1 bn

Attributable profit - total operations

US$12.9 bn Down 58%

FY22 US$30.9 bn

Underlying attributable profitii

US$13.4 bn Down 37%

FY22 US$21.3 bn

Profit from operations

US$22.9 bn Down 33%

FY22 US$34.1 bn

Underlying EBITDAii

US$28.0 bn Down 31%

FY22 US$40.6 bn

Underlying EBITDA marginii

54%

FY22 65%

Adjusted effective tax rate

30.9%

FY22 31.2%

FY24e 30 - 35%

BHP's revenue decreased by US$11.3 bn primarily as a result of significantly lower prices across iron ore, metallurgical coal, and copper.

Attributable profit for the year reflects our disciplined cost and reliable operational performance amid the lower price environment, and includes an exceptional loss of US$0.5 bn. For further details see Note 3 - Exceptional items.

Adjusted for the US$10.7 bn profit related to discontinued operations as well as exceptional losses of US$1.1 bn in FY22, Underlying attributable profit decreased by US$7.9 bn.

While we increased copper, iron ore and nickel sales volumes, and exchange rates were favourable, profit from operations and Underlying EBITDA decreased primarily as a result of the lower prices across major commodities, and the impacts of inflation on our underlying cost base, particularly on labour, diesel and electricity prices.

Our focus on cost discipline has allowed us to mitigate the effects of the current inflationary environment. Unit costsii were ~9%vii higher across our major assets, however WAIO extended its lead as the lowest cost major iron ore producer globally.

For further details see Underlying EBITDA waterfall.

We experienced an effective inflation rate of ~10% in the financial year and expect the lagged impact of inflation to continue into FY24, particularly in labour costs.

Our adjusted effective tax rate was above the 30% Australian corporate tax rate primarily due to:

·  dividend withholding taxes related to our Chilean operations; and

·  current year tax losses not expected to be recoverable.

Our operating costs include US$3.8 bn of revenue or production based royalties. This includes US$1.7 bn of royalties incurred by BHP in respect of our Queensland operations, which combined with income taxes equates to an adjusted effective tax rate including royalties of 55%. The introduction of the new royalty regime resulted in an additional US$0.7 bn in royalties paid to the Queensland Government by BHP in relation to FY23.

Once the US$3.8 bn of revenue and production based royalties are included, our Group effective tax rate was 41.3%.

The adjusted effective tax rate for FY24 is expected to be in the range of 30 to 35%.

Detailed financial information is included in Appendix 1 and OFR 4 in the Annual Report

Net operating cash flow

US$18.7 bn Down 36%

FY22 US$29.3 bn

Capital and exploration expenditure

US$7.1 bn Up 16%

FY22 US$6.1 bn

Free cash flowii

US$5.6 bn Down 77%

FY22 US$24.3 bn

Net debtii

US$11.2 bn

FY22 US$0.3 bn

H1 FY23 US$6.9 bn

Gearing ratioii

18.7%

FY22 0.7%

H1 FY23 12.9%

Our net operating cash flow reduced as a result of the lower profit from operations, which was partially offset by the resultant reduced income tax and royalty-related taxation payments. Despite lower prices and sales volumes, revenue-based royalties at BHP Mitsubishi Alliance (BMA) increased following the introduction of the new Queensland royalty regime in July 2022.

In line with our Capital Allocation Framework (CAF), we generated free cash flow of US$5.6 bn after investing US$13.1 bn in the following:

·  US$5.9 bn acquisition of OZ Minerals Ltd (OZL) in May 2023;

·  US$4.1 bn in organic development including US$2.3 bn on improvement, US$1.2 bn on future‑facing commodities, and US$350 m of exploration spend.

·  US$3.0 bn of maintenance and decarbonisation expenditureviii.

We expect capital and exploration expenditure (with flexibility to adjust and subject to exchange rate movements) to be:

·  For FY24 and FY25, ~US$10 bn per annum, including US$0.4 bn of exploration in FY24;

·  In the medium term, ~US$11 bn per annum on averageix.

These amounts include around US$4 bn in aggregate until FY30 for operational decarbonisation.

BHP's balance sheet remains strong. During FY23, Moody's upgraded BHP's credit rating to A1 while S&P Global's rating has remained at A-. BHP retired US$2.3 bn of debt and raised US$7.7 bn of which US$5 bn relates to the OZL acquisition facility.

Our net debt increased by US$10.8 bn in the year (or US$4.3 bn from December 2022) largely reflecting the:

·  Purchase of OZL and assumption of US$1.1 bn of its interest bearing liabilities; and

·  Dividends paid to BHP shareholders of US$13.3 bn, and US$1.2 bn to non‑controlling interests.

These were partially offset by cash flow generated by the operations.

Our net debt target range of between US$5 and US$15 bn enables us to maintain a resilient balance sheet during periods of change and external uncertainties while retaining the flexibility to allocate capital within our CAF towards shareholder returns and growth opportunities. In the near term, we expect to remain towards the upper end of the net debt target range.

For further details see Note 21 - Net debt.

Detailed financial information is included in Appendix 1 and OFR 4 in the Annual Report

Full year dividend

US$1.70 per share

Fully franked

64% payout ratio

Earnings per share - basic

255 US cps

FY22 611 US cps

Earnings per share - underlyingii

265 US cps

FY22 421 US cps

Underlying return on capital employed (ROCE)ii

28.8%

FY22 48.1%

Our operations continued to generate strong Underlying ROCE of 28.8%. 

A final dividend of US$0.80 per share (US$4.1 bn), equivalent to a 59% payout ratio and inclusive of an additional amount of US$0.64 bn above the minimum 50% payout policy, will be paid to shareholders on 28 September 2023.

This brings total cash dividends announced for FY23 to US$1.70 per share, including an additional amount of US$1.9 bn above the minimum payout policy, and making this the third largest full year ordinary dividend declared.

Over the past three years, this amounts to more than US$40 bn cash returned to shareholders.

Announcement of currency conversion into RAND

29 August 2023

Last day to trade cum dividend on Johannesburg Stock Exchange Limited (JSE)

5 September 2023

Ex-dividend Date JSE

6 September 2023

Ex-dividend Date Australian Securities Exchange (ASX), London Stock Exchange (LSE) and New York Stock Exchange (NYSE)

7 September 2023

Record Date

8 September 2023

Announcement of currency conversion into AUD, GBP and NZD

11 September 2023

DRP and Currency Election date

11 September 2023

Payment Date

28 September 2023

DRP Allocation Date

12 October 2023

Detailed financial information on all business segments in the Financial performance summary

Production

1,717 kt Up 9%

FY22 1,574 kt

FY24e 1,720 - 1,910 Mt

Average realised price

US$3.65/lb Down 12%

FY22 US$4.16/lb

Underlying EBITDA

US$6.7 bn Down 22%

FY22 US$8.6 bn

23% contribution to the Group's Underlying EBITDA

47% Underlying EBITDA margin

Underlying ROCE

12%

FY22 16%

Capital and exploration expenditure

US$2.7 bn

FY22 US$2.5 bn

FY24e US$4.2 bn

Copper prices were volatile over the second half of FY23, with two-way fluctuations based on expectations of China's recovery, and mounting demand risks in the OECD, with indicators of manufacturing weakness widespread. Historically extremely low global copper inventories and the sector's ongoing operational performance challenges have helped prices hold up relatively well - though our realised price was 12% lower compared to FY22.

In the near term, we expect demand to be met by a combination of rising primary and scrap supply. A small surplus or a balanced market is the most likely outcome for the current year, with operational disruptions being a key swing factor.

In the medium and longer term, traditional demand (such as home building, electrical equipment and household appliances) is expected to remain solid while the decarbonisation mega-trend is expected to bolster demand. In terms of meeting that demand, we anticipate that the cost curve is likely to steepen as challenges to the development of new resources (such as societal expectations, decarbonisation and water challenges) progressively increase. We anticipate that the industry is likely to enter the final third of this decade with a low inventory buffer, and therefore elevated prices may endure throughout this period.

Following the completion of the acquisition of OZL on 2 May 2023, we have established the Copper South Australia province. The addition of the Prominent Hill and Carrapateena operations, combined with Olympic Dam and the potential Oak Dam development, is expected to unlock a pathway to increase volumes and value from the province. We are integrating a team with a strong culture, excellence in project delivery and strong relationships with local communities and partners. OZL assets are included within the FY23 Underlying ROCE for Copper.

In Chile we have a range of studies underway to unlock our significant resource endowment and utilise latent capacity across our Escondida, Spence and Cerro Colorado operations. These include studying options for a new concentrator at Escondida and the evaluation of multiple leaching technologies which could be applied across all three operations. We expect to provide further information on preferred development pathways during CY24.

In Peru, Antamina has applied for environmental approval for a life extension until 2036, from 2028.

Copper production

Unit cost1,2

Underlying EBITDA

1,055 kt Up 5%

US$1.40/lb Up 17%

US$4.9 bn Down 20%

FY22 1,004 kt

FY24e 1,080 - 1,180 kt

FY25 and FY26e 1,200 - 1,300 ktpa

FY22 US$1.20/lb

FY24e US$1.40 - $1.70/lb

FY25 and FY26e US$1.30 - US$1.60/lb

FY22 US$6.2 bn

1 Based on exchange rates of: FY22 USD/CLP 811 (realised); FY23 USD/CLP 864 (realised); FY24 - FY26 USD/CLP 810 (guidance).

2 Refer to OFR 10 - Non-IFRS information in the Annual Report for detailed unit cost reconciliation.

Underlying EBITDA decreased by 20% primarily as a result of:

·  Lower copper prices which had an unfavourable US$1.2 bn impact; and

·  Unit costs increasing 17% to US$1.40/lb, primarily driven by inflationary cost pressures, including higher contractor costs.

These were partially offset by productivity improvements and higher sales volumes in line with improved grade.

Over the next 18 months, Escondida will complete a number of strategic studies into options to offset the impact in the decline of concentrator feed grade which is expected from FY27. These options include the potential for a new concentrator to replace the current Los Colorados facility and the application of one or more leaching technologies to improve recoveries and unlock primary sulphide resources in the cathode process. We expect costs associated with the studies, which are captured as operating costs, to increase to ~US$140 m per year in both FY24 and FY25, from ~US$60 m in FY23.

Full SaL, a BHP designed leaching technology, is on track to become the first of these options to be implemented. This technology, which has already been successfully deployed at Spence, is expected to produce ~410 kt in copper cathodes at Escondida over a 10 year period once implemented, through improved recoveries and shorter leach cycle times. We expect capital expenditure to implement Full SaL to be approximately US$300 m, and for first production to be during FY25.

Escondida production is expected to increase in FY24 to between 1,080 and 1,180 kt, then to between 1.2 and 1.3 Mt per year in FY25 and FY26, after which production is expected to decline for a period as a result of lower grades.

Copper production

Spence unit cost1,2,3

Underlying EBITDA

289 kt Up 3%

US$2.11/lb

US$0.75 bn Down 45%

FY22 281 kt

FY24e 210 - 250 kt1

Medium-term ~250 kt

FY24e US$2.00 - US$2.30/lb

FY22 US$1.4 bn

1 Production and unit cost guidance for FY24 is provided for Spence only. Cerro Colorado is expected to produce ~9 kt as it transitions to closure by 31 December 2023.

2 Refer to OFR 10 - Non-IFRS information in the Annual Report for detailed unit cost reconciliation.

3 Based on exchange rates of: FY22 USD/CLP 811 (realised); FY23 USD/CLP 864 (realised); FY24 USD/CLP 810 (guidance).

Underlying EBITDA decreased by 45% predominately as a result of:

·  Increased costs primarily driven by inflationary cost pressures, and the planned drawdown in mined ore inventories following commissioning of the Spence concentrator and as Cerro Colorado transitions to closure; and

·  Lower copper prices, which had an unfavourable US$0.36 bn impact.

These were partially offset by increased sales volumes at Spence in line with record production.

During FY23 we applied for environmental approval to extend the life of the Spence leaching facilities to 2039. If approved, this would involve the implementation of a novel approach to re-processing previously leached ores followed by a planned medium-term transition to chalcopyrite ore leaching.

The concentrator plant modifications, which commenced in August 2022, remain on track to be completed in CY23. Expected capital expenditure for the concentrator modification works remains unchanged at approximately US$100 m. We are also studying options to further debottleneck and expand concentrator throughput in the future.

Production at Spence is now expected to average 250 ktpa over the next five years.

We continue to closely monitor previously identified anomalies in the Spence Tailings Storage Facility (TSF) and are aiming to ensure safe operational conditions. In order to remediate the anomalies, changes to the original TSF design will be required and further study is being undertaken. In collaboration with the Engineer of Record, Independent Tailings Review Board and expert consultants, work is ongoing to finalise the schedule, scope and cost of the TSF design, including through studies, site characterisation and modelling. Production guidance at Spence remains subject to the remediation of the TSF anomalies.

Cerro Colorado is transitioning to closure by December 2023. Operating costs at Cerro Colorado are expected to be approximately US$70 m and US$45 m for the December 2023 and June 2024 half years, respectively. We are exploring options to extend the life of Cerro Colorado, including through the use of leaching technologies and desalinated water, which could see the operation restart in approximately 2030, subject to environmental approvals.

Copper production

Underlying EBITDA

232 kt1 Up 68%

US$0.70 bn Up 72%

FY22 138 kt

FY24e 310 - 340 kt

FY22 US$0.41 bn

1 Includes contribution of 20 kt from Carrapateena and Prominent Hill.

The combination of Olympic Dam with Prominent Hill and Carrapateena following the acquisition of OZL, has allowed us to create a new province, Copper South Australia. When compared to FY22 (when it was only Olympic Dam), underlying EBITDA increased 72% as a result of:

·  Higher sales volumes at Olympic Dam supported by BHP record copper production following the planned major smelter maintenance campaign (SCM21) in the prior year, and record gold production following debottlenecking activities in FY22, as well as the contribution of sales from Prominent Hill and Carrapateena in the period post-acquisition.

This was partially offset by:

·  Higher operating costs at Olympic Dam primarily due to the planned drawdown of inventory built during SCM21 in the prior year to support record concentrator and smelter performance, the impacts of inflation on the cost base and higher exploration spend in relation to drilling at Oak Dam and Olympic Dam; and

·  Lower average realised prices.

Following the acquisition of OZL, we are focused on building scale and optionality across the new Copper South Australia province.

Initial integration activity is now complete, where the focus was on safety, people and culture, operational productivity and stability. We expect to realise a range of synergies in the short term, by integrating supply chains and reducing corporate overheads and compliance costs, and in the long term by optimising growth projects.

In FY24, we expect production at Copper South Australia to be between 310 and 340 kt, and will include the transfer of small volumes of copper concentrate from Prominent Hill to Olympic Dam for processing.

We are assessing options for a new two-stage smelter which could produce >500 ktpa. In addition to productivity improvements at the existing operations, we expect to source ore for the expanded smelter from growth and exploration projects, such as:

·  At Prominent Hill, the Wira shaft mine expansion project is under construction. The hoisting shaft is expected to extend the mine life to at least 2036 and may provide access to potential mineralisation outside the current mine plan;

·  At Carrapateena, the Block Cave Expansion project is progressing and is expected to (i) extend the mine life beyond the existing sub-level cave and (ii) increase production at Carrapateena from FY29. Crusher 2 is expected to come online in the March 2024 quarter and provide an uplift in mine productivity; and

·  At Oak Dam, where we continue exploration activity. We are also exploring beneath the Olympic Dam ore body. Refer to the Minerals exploration and early-stage entry section for more details.

Production

257 Mt Up 1%

FY22 253 Mt

FY24e 254 - 264.5 Mt

Average realised price

US$92.54/wmt Down 18%

FY22 US$113.10/wmt

Underlying EBITDA

US$16.7 bn Down 23%

FY22 US$21.7 bn

59% contribution to the Group's Underlying EBITDA

67% Underlying EBITDA margin

Underlying ROCE

67%

FY22 91%

Capital and exploration expenditure

US$2.0 bn

FY22 US$1.8 bn

FY24e US$2.0 bn

In terms of steel production, in CY23 China and India are anticipated to lead a 2% recovery in global steel production, following a 4% decline in CY22 (8% decline if you exclude China and India).

In China, steel production was running at ~1,080 Mtpa in the first half of CY23, with solid demand from infrastructure, power machinery, autos and shipping, offsetting weakness in new housing starts and construction machinery. As we have seen in prior years, it is possible that we will see policies limiting steel production in China in the second half of CY23. However, at this stage it appears that China is on the way to producing more than 1 Bt of steel for the 5th consecutive year. That is consistent with our long-held view that China's steel production would sit at a plateau in the 1.0 to 1.1 Bt range in the first half of the 2020s.

Further growth is expected in India, which we forecast will produce around 135 Mt in CY23, a 35% increase since the beginning of the decade. The Indian government is targeting 300 Mtpa of steel-making capacity by 2030.

In the iron ore market, conditions were better in the second half of FY23 than in the first half, but there are two key uncertainties for the coming six months. The first is how effectively China's stimulus policy is implemented, especially with regards to real estate. The second revolves around the breadth, timing and severity of any mandated steel production cuts. Our estimate of real-time cost support sits in the US$80-US$100/t range on a 62% Fe CFR basis. That is unchanged from our previous reporting period. 

In the medium term, China's demand for iron ore is expected to be lower than it is today as it moves beyond its crude steel production plateau and the scrap-to-steel ratio rises, though we expect demand for our products from elsewhere in developing Asia will offset this to a degree.

At WAIO, we are focused on increasing annual production to greater than 305 Mt over the medium term. We are also studying growth of the WAIO business to 330 Mtpa and we expect to complete these studies in CY25. Options under consideration include developing new mines and leveraging existing infrastructure, including at Yandi, increasing ore beneficiation or building a new hub.

Samarco is expected to continue to make strong progress on remediation activity, as it ramps up production and continues to support the local community through jobs, investment and taxes.

Iron ore production

Unit cost1,2

Underlying EBITDA

253 Mt Up 1%

US$17.79/t Up 6%

C1xi US$15.86/t3

US$16.7 bn Down 24%

FY22 249 Mt

FY24e 282 - 294 Mt (100% basis)

Medium-term >305 Mt (100% basis)

FY22 US$16.81/t

FY24e US$17.40 - US$18.90/t

Medium-term

FY22 US$21.8 bn

1 Based on exchange rates of: FY22 AUD/USD 0.73 (realised); FY23 AUD/USD 0.67 (realised); FY24 AUD/USD 0.67 (guidance).

2 Refer to OFR 10 - Non-IFRS information in the Annual Report for detailed unit cost reconciliation.

3 C1 unit costs for FY22 were US$15.05/t. WAIO C1 unit cost excludes third party royalties of US$1.69 per tonne (FY22: US$1.93 per tonne), net inventory movements US$(0.22) per tonne (FY22: US$(0.48) per tonne), depletion of production stripping US$0.81 per tonne (FY22: US$0.69 per tonne), exploration expenses, marketing purchases, demurrage, exchange rate gains/losses, and other income US$(0.34) per tonne (FY22: US$(0.39) per tonne).

Underlying EBITDA decreased by 24%, despite WAIO achieving record production, shipped volumes and lump sales. This is the result of the compounding effect of:

·  Lower average realised prices for iron ore, which decreased 18%, and had an unfavourable impact of US$5.4 bn;

·  Increased unit costs, predominantly due to the effects of inflation, particularly higher diesel prices, increased labour and contractor costs, net drawdown of inventory to support the supply chain, and spend associated with the ramp up of South Flank, which were partially offset by favourable exchange rate movements; and

·  Lower overall sales volumes, as a result of building inventory in China for portside sales.

During FY23, WAIO extended its lead as the lowest cost major iron ore producer globally with a C1 unit cost of US$15.86/t.

South Flank remains on track to ramp up to full production capacity of 80 Mtpa (100% basis) by the end of FY24. Once ramp up is complete, South Flank's high quality ore is expected to maintain WAIO's average iron ore grade of at least ~61% (excluding Yandi) and increase the overall proportion of lump to between 30% and 33%.

As part of our incremental pathway to >305 Mtpa in the medium term we are undertaking the following projects:

·  The Port Debottlenecking Project (PDP1) which remains on track to be completed in CY24 and is expected to deliver an initial uplift in port throughput; and

·  The Rail Technology Programme (RTP) which will be rolled out over the next few years and is expected to improve communications and signalling, operational safety and reduce variability on our WAIO rail network.

Our portside distribution channel in China, which allows for an expanded customer base and increases our flexibility, had ~6 Mt port side sales in FY23. Inventory for portside sales in China will vary over time (~4 Mt at 30 June 2023) as we respond to demand in the seaborne and portside markets, and this may drive differences between production and sales volumes.

Average annual sustaining capital expenditure guidance over the medium term, excluding costs associated with operational decarbonisation and our automation programs, is expected to increase to ~US$5.50/t to support the incremental volume required to achieve medium-term guidance, asset integrity and end of life fleet replacement.

Iron ore production

Total Renova Foundation spend

4.5 Mt Up 11%

US$6.4 bn1 Up 31%

FY22 4.1 Mt

FY24e 4 - 4.5 Mt

FY22 US$4.9 bn1

1 Refers to total Renova spend since 2016 (100% basis).

Samarco continues to operate safely and efficiently since re-starting operations in December 2020. The restart of the second concentrator, which will increase pellet production capacity to approximately 16 Mtpa (100% basis) through a filtration and dry stack tailings solution, is expected to deliver first production in the March 2025 quarter.

BHP Brasil remains committed to Samarco supporting the Renova Foundation and its work to progress the remediation and compensatory programs to restore the environment and re-establish communities affected by the Samarco dam failure. Renova made strong progress during FY23, and since March 2016, compensation and financial assistance has been paid to approximately 427,000 people and approximately 75% of resettlement casesxii have now been completed. 

On 28 July 2023, Samarco and one of its financial creditors jointly filed a restructure plan with the Judicial Reorganisation Court that outlined the proposed restructure of Samarco's debts subject to the Judicial Reorganisation process. Subject to the plan being ratified by the Court, Samarco and its creditors will now work towards completing the process, including agreeing documentation and seeking final court approvals.

Cost estimates for the Samarco dam failure provision remain unchanged from the December 2022 half. The Group's provision related to the Samarco dam failure has increased however to US$3.7 bn as at 30 June 2023, primarily as a result of movements in the exchange rate and amortisation of discounting.

BHP's expected cash outlay for CY23 in relation to the provision is now US$1.05 bn (down from a previous estimate of $1.95 bn) with the decrease largely as a result of timing of spend. BHP Brasil has approved US$915 m of funding for the Renova Foundation, with additional amounts subject to further approval. This funding will be offset against the Group's provision for the Samarco dam failure.

For further information, please see note 4 - 'Significant events - Samarco dam failure' for the Samarco dam failure provision.

Production

Metallurgical coal

29 Mt 0%

FY22 29 Mt

Energy coal

14.2 Mt Up 3%

FY22 13.7 Mt

Average realised price

Metallurgical coal

US$271.05/t Down 22%

FY22 US$347.10/t

Thermal coal - export

US$236.51/t Up 9%

FY22 US$216.78/t

Underlying EBITDA

US$5.0 bn Down 47%

FY22 US$9.5 bn

18% contribution to the Group's Underlying EBITDA

46% Underlying EBITDA margin

Underlying ROCE

47%

FY22 91%

Capital and exploration expenditure

US$0.7 bn

FY22 US$0.6 bn

FY24e US$0.7 bn

Metallurgical coal prices moved lower in FY23 as the global energy shock receded, steel production in OECD importing regions declined, and supply conditions improved across multiple jurisdictions. Against this backdrop the re-opening of the Chinese import market for Australian coals has had little discernible impact on trade flows or pricing.

As has been the case in other commodities, India has been a bright spot in metallurgical coal, with imports expected to grow around 4.5% in CY23, against a 2% decline for the remainder of the seaborne trade.

In the near term, we expect a modest improvement in seaborne demand from OECD importing regions as they see a gradual pickup in their steel industries, while India is expected to continue with its current momentum. The availability of landborne imports, and the operational performance of Chinese domestic mines, are key uncertainties for assessing what China's call on the seaborne trade might be in CY24. 

Over the longer term, we believe that higher quality metallurgical coals (such as those produced by our BMA assets) will continue to be required in blast furnace steel making for decades, driven by the growth of the steel industry in hard coking coal importing countries such as India. In particular, such higher quality coking coals are expected to be valued for their role in reducing the greenhouse gas emissions intensity of blast furnaces. And with the major seaborne supply region of Queensland having become less conducive to long-life capital investment as a result of changes to the royalty regime, the scarcity value of higher quality coking coals may well increase over time.

Aligned with our strategic objective to focus on producing higher quality metallurgical coal, in February 2023, BHP announced that together with Mitsubishi Development Pty Ltd (our 50:50 joint venture partner in BMA) we have initiated a process to divest the Daunia and Blackwater mines.

Following an extensive review of available options, in June 2022, BHP made the decision to retain New South Wales Energy Coal (NSWEC) in our portfolio, seek the relevant approvals to continue mining beyond the current consent that expires at the end of FY26 and proceed with a managed process to cease mining at the asset by the end of FY30.

Metallurgical coal production

Unit cost1,2

Underlying EBITDA

29.0 Mt 0%

US$96.46/t Up 8%

US$3.2 bn Down 50%

FY22 29.1 Mt

FY24e 56 - 62 Mt (100% basis)

FY22 US$89.06/t

FY24e $US95 - US$105/t

FY22 US$6.3 bn

1 Based on exchange rates of: FY22 AUD/USD 0.73 (realised); FY23 AUD/USD 0.67 (realised); FY24 AUD/USD 0.67 (guidance).

2 Refer to OFR 10 - Non-IFRS information in the Annual Report for detailed unit cost reconciliation.

Underlying EBITDA decreased by 50% predominately driven by:

·  Lower average realised prices which had an unfavourable impact of US$2.5 bn;

·  Higher royalties, despite the lower price environment and lower volumes, as a result of the Queensland Government's decision to raise coal royalties to the highest maximum royalty rate in the world. The introduction of the new royalty regime resulted in an additional US$0.7 bn in royalties paid to the Queensland Government by BHP in relation to FY23. Combined with income taxes, this equates to an adjusted effective tax rate including royalties of 55%;

·  Higher unit costs, increasing 8% primarily due to the impact of inflation, particularly higher diesel prices, higher maintenance activity, and the drawdown of mine inventories, which were partially offset by favourable exchange rate movements; and

·  Lower sales volumes, despite stable production, as a result of timing of sales.

During FY24, we plan to rebuild BMA's mine inventories which have been drawn down over the past three years to balance the supply chain and maximise value amidst the significant weather disruptions.

Given the negative impact on investment economics of the Queensland Government's decision to raise coal royalty rates and the increase in sovereign risk as a result of this decision, we will not be investing in any further growth in Queensland, however we will sustain and optimise our existing operations.

We continue to progress our planned process to divest the Blackwater and Daunia mines for value, and updates (including any adjustment required to guidance as a result of a sale) will be provided to the market where appropriate.

Energy coal production

Unit cost1,2

Underlying EBITDA

14.2 Mt Up 3%

US$82.37/t Up 16%

US$1.8 bn Up 2%

FY22 13.7 Mt

FY24e 13 - 15 Mt

FY22 US$70.80/t

FY22 US$1.8 bn

1 Based on exchange rates of: FY22 AUD/USD 0.73 (realised); FY23 AUD/USD 0.67 (realised); FY24 AUD/USD 0.67 (guidance).

2 Refer to Section 10 - Non-IFRS information of the Annual Report for detailed unit cost reconciliation.

Underlying EBITDA increased marginally as a result of:

·  Higher average realised prices for thermal coal, which had a favourable impact of US$0.4 bn. The market for our products changed dramatically within the year with the impact of the Ukraine/Russia conflict on global energy markets, and the introduction of the NSW Government Coal Price Emergency Directions.

This was partially offset by:

·  Unit costs increasing 16% as the effects of inflation and the higher price environment increased key input costs, particularly diesel, explosives and labour. Additionally, we saw higher freight costs at the Newcastle Coal Infrastructure Group (NCIG) coal export terminal; and

·  Slightly lower sales volumes, despite higher production, as we rebuilt product coal stocks. We also sold a lower portion of higher quality coal types due to the changing market conditions.

As announced in June 2022, we made the decision to retain NSWEC in our portfolio and proceed with a managed process to cease mining by the end of FY30.

We are now seeking the relevant approvals to continue mining beyond the current consent that expires at the end of FY26. Extending this consent is intended to provide the time to work with our people and the local community on an equitable change and transition approach and the detailed plan for mine closure. Work continues on the modification application, which is intended to be submitted in the second half of CY23.

Subject to receiving the necessary approvals, as we look ahead to 2030 we will not be allocating any growth capital to NSWEC. We expect to optimise our costs for value, with absolute costs expected to be stable in the medium term after a period of higher inflation and input prices.

Production

80 kt Up 4%

FY22 77 kt

FY24e 77 - 87 kt

Average realised pricexiii

US$24,021/t Up 3%

FY22 US$23,275/t

Underlying EBITDA

US$0.2 bn Down 61%

FY22 US$0.4 bn

~1% contribution to the Group's Underlying EBITDA

Capital and exploration expenditure

US$0.6 bn

FY22 US$0.4 bn

FY24e US$0.8 bn

The nickel industry moved further into surplus over the course of FY23 as Indonesian supply continued to grow apace at a time of slowing economic growth. Battery demand is expected to record healthy growth across CY23, but a de-stocking episode across the EV value chain early in the year made its presence felt across all the battery raw materials.

Relatively tight fundamentals in Class-I exchange traded metal have continued to co-exist with considerable over-supply of intermediates and Class-II products.

Longer term, we believe nickel will be a core beneficiary of the electrification mega-trend and that nickel sulphides will be particularly attractive.

To support growing demand for nickel in the battery market, Nickel West is assessing options for a major smelter renewal project, which could potentially process more nickel from our northern mining operations, sustain our integrated supply chain and create a pathway for additional feed sources. At the mines, we are assessing options to expand Mt Keith operations and have completed approximately 100 km of development and exploration drilling in FY23.

The West Musgrave nickel project in Western Australia is in early stages of execution following the final investment decision by OZL in September 2022 (prior to the acquisition by BHP). The additional drilling and the addition of West Musgrave has led to a 36% increase in nickel resource.

Capital expenditure

US$0.65 bn Up 72%

FY22 US$0.4 bn

FY24e US$1.2 bn

Potash prices declined across the second half of FY23 as prices reverted to more normal ranges, following expectations of scarcity in the early months of the Ukraine-Russia conflict.

Medium-term, the major uncertainty is the status of the projects in the areas formerly comprising the Soviet Union.

Longer term, we believe that potash stands to benefit from the intersection of global megatrends: rising population, changing diets and the need for the more sustainable intensification of agriculture on finite arable land. We consider this compelling demand picture, rising geopolitical uncertainty and the maturity of the existing asset base to be an attractive entry opportunity in a lower-risk supply jurisdiction such as Saskatchewan, Canada.

For further information, please see Potash: the fourth wave.

Progress - Stage 1 completion

Production target date

Capital estimate

26%

End-CY26

US$5.7 bn

At the end of FY23 Jansen Stage 1, which will have a capacity of ~4.35 Mtpa, was 26% complete and on track to achieve first production by the end of CY26. Capital expenditure for FY23 was US$647 m. We expect this to increase to ~US$1.0 bn in FY24, as we advance steel and equipment procurement and installation on the surface and underground.

Jansen Stage 2 is expected to deliver ~4 Mtpa of potash production at a lower capital intensity than Stage 1 (between ~US$1,000 and US$1,200/t), through leveraging the substantial infrastructure investment already being constructed for Stage 1. In line with our favourable view on the long-term outlook for potash, we have accelerated the feasibility study for Jansen Stage 2, and this remains on track for completion during FY24. The earliest potential final investment decision is within FY24, and if a decision is taken, first production could be achieved as early as FY29. Pre-commitment spend in FY24 for Jansen Stage 2 is expected to be ~US$125 m.

Exploration expenditure

US$350 m Up 37%

FY22 $256 m

BHP continued to strengthen its portfolio of options in future-facing commodities, via high potential exploration projects, equity investments, joint ventures and farm-in agreements. We also leveraged technology to look deeper in mature exploration jurisdictions and identify new high potential search spaces.

Greenfield minerals exploration was undertaken during the year to advance copper targets in Chile, Ecuador, Serbia, Peru, Canada, Australia and the United States. Nickel targets were advanced in Canada and Australia. We continued to progress activity at Ocelot, BHP's recently identified copper porphyry mineralised system in the Miami-Globe copper district of the United States.

BHP also signed a Sales and Purchase agreement for Ragnar Metals' Sweden operations, gaining access to drill-ready programs for nickel. These will be further advanced during FY24.

BHP also continued its strategy of partnering with mining companies focused on early-stage copper and nickel projects, with additional investments made during the year in Brixton Metals, Midland Exploration, Filo Mining and Kabanga Nickel.

At Copper South Australia, we published an Exploration Target at Oak Damxiv and have commenced the next phase of drilling as we work towards defining a first Mineral Resourcexv. We plan to increase the number of drilling rigs (from nine to eleven) and to establish core processing facilities and an accommodation camp by the end of CY23. We are continuing community and stakeholder engagement in preparation for submission of our application to convert the Oak Dam tenement from an exploration licence to a retention lease, enabling progression of an early access decline. We have also commenced exploratory drilling beneath the Olympic Dam mine, at depths between 900 and 1,500 metres, with nine surface exploration rigs.

In the past year, we established BHP Xplor, an innovative accelerator program which supports early-stage mineral exploration companies. The inaugural program was a success, with several companies selected for additional investment. Applications for the 2024 process opened in August.

Detailed financial information is included in Section 4.3 of the Annual Report

Copper

Escondida

8,847

4,934

4,070

12,207

1,351

Pampa Norte5

2,491

754

244

4,487

647

Antamina6

1,468

998

824

1,430

374

Copper South Australia7

2,806

703

251

15,782

641

Other6

20

(209)

(228)

636

59

Total Copper from Group production

15,632

7,180

5,161

471

34,542

3,072

Third party products

1,863

18

18

 −

 −

 −

Total Copper

17,495

7,198

5,179

471

34,542

3,072

151

148

Adjustment for equity accounted investments6

(1,468)

(545)

(369)

 −

 −

(374)

(6)

(3)

Total Copper statutory result

16,027

6,653

4,810

471

34,542

2,698

145

145

Iron Ore

Western Australia Iron Ore

24,678

16,660

14,663

20,438

1,956

Samarco8

 −

 −

 −

(3,695)

 −

Other

113

33

9

(100)

10

Total Iron Ore from Group production

24,791

16,693

14,672

(295)

16,643

1,966

Third party products

21

(1)

(1)

 −

 −

 −

Total Iron Ore

24,812

16,692

14,671

(295)

16,643

1,966

96

52

Adjustment for equity accounted investments

 −

 −

 −

 −

 −

 −

 −

 −

Total Iron Ore statutory result

24,812

16,692

14,671

(295)

16,643

1,966

96

52

Coal

BHP Mitsubishi Alliance

7,652

3,197

2,572

7,545

488

New South Wales Energy Coal9

3,455

1,953

1,868

(243)

156

Other

 −

(39)

(57)

(36)

13

Total Coal from Group production

11,107

5,111

4,383

 −

7,266

657

Third party products

 −

 −

 −

 −

 −

 −

Total Coal

11,107

5,111

4,383

 −

7,266

657

13

6

Adjustment for equity accounted investments9

(149)

(113)

(88)

 −

 −

 −

 −

 −

Total Coal statutory result

10,958

4,998

4,295

 −

7,266

657

13

6

Group and unallocated items

Potash

 −

(205)

(207)

4,469

647

1

1

Nickel West

2,009

164

57

1,189

637

52

48

Other10

11

(346)

(806)

(229)

128

43

42

Total Group and unallocated items

2,020

(387)

(956)

(64)

5,429

1,412

96

91

Inter-segment adjustment

 −

 −

 −

 −

 −

 −

 −

 −

Total Group

53,817

27,956

22,820

112

63,880

6,733

350

294

Copper

Escondida

9,500

6,198

5,291

11,703

860

Pampa Norte5

2,670

1,363

470

4,543

673

Antamina6

1,777

1,289

1,143

1,306

323

Copper South Australia7

1,776

409

(12)

9,877

966

Other6

 −

(157)

(173)

(9)

29

Total Copper from Group production

15,723

9,102

6,719

(81)

27,420

2,851

Third party products

2,903

36

36

 −

 −

 −

Total Copper

18,626

9,138

6,755

(81)

27,420

2,851

96

92

Adjustment for equity accounted investments6

(1,777)

(573)

(425)

 −

 −

(323)

(11)

(7)

Total Copper statutory result

16,849

8,565

6,330

(81)

27,420

2,528

85

85

Iron Ore

Western Australia Iron Ore

30,632

21,788

19,669

20,376

1,847

Samarco8

 −

 −

 −

(3,433)

 −

Other

116

(81)

(198)

(120)

1

Total Iron Ore from Group production

30,748

21,707

19,471

(648)

16,823

1,848

Third party products

19

 −

 −

 −

 −

 −

Total Iron Ore

30,767

21,707

19,471

(648)

16,823

1,848

95

54

Adjustment for equity accounted investments

 −

 −

 −

 −

 −

 −

 −

 −

Total Iron Ore statutory result

30,767

21,707

19,471

(648)

16,823

1,848

95

54

Coal

BHP Mitsubishi Alliance

10,254

6,335

5,708

7,802

491

New South Wales Energy Coal9

3,122

1,868

1,777

(121)

73

Other11

2,260

1,363

1,283

(31)

57

Total Coal from Group production

15,636

9,566

8,768

849

7,650

621

Third party products

 −

 −

 −

 −

 −

 −

Total Coal

15,636

9,566

8,768

849

7,650

621

17

6

Adjustment for equity accounted investments9

(87)

(62)

(35)

 −

 −

 −

 −

 −

Total Coal statutory result

15,549

9,504

8,733

849

7,650

621

17

6

Group and unallocated items

Potash

 −

(147)

(149)

3,570

376

 −

 −

Nickel West

1,926

420

327

721

362

42

37

Other10

7

585

(276)

(1,746)

120

17

17

Total Group and unallocated items

1,933

858

(98)

(450)

2,545

858

59

54

Inter-segment adjustment

 −

 −

 −

 −

 −

 −

 −

 −

Total Group

65,098

40,634

34,436

(330)

54,438

5,855

256

199

Year ended 30 June 2022

40,634

8,565

21,707

9,504

858

Net price impact

Change in sales prices

(9,182)

(1,656)

(5,359)

(2,123)

(44)

Price-linked costs

(83)

28

390

(507)

6

WAIO: Lower royalties in line with lower prices.

BMA: Higher royalties as a result of new government royalty regime (despite lower prices).

NSWEC: Higher royalties in line with higher prices.

Change in volumes

1,545

1,409

162

(158)

132

Copper South Australia: Increased volumes following:

· the planned major smelter maintenance campaign (SCM21) in the prior period at Olympic Dam; and

· higher gold production following debottlenecking activities in the prior period at Olympic Dam.

Escondida: Higher volumes due to higher concentrator feed grade and prior period COVID-19 impacts. Partially offset by lower concentrator throughput.

Spence: Higher concentrator throughput at the Spence Growth Option (SGO), partially offset by lower grade and recoveries.

WAIO: Positive impact due to:

· ramp up of South Flank having a favourable impact on product mix, with lump sales increasing from 29% to 31%; and

· strong operational performance resulting in record production.

Partially offset by an inventory build of almost 4 Mt in China for portside sales.

NSWEC: Slightly lower volumes despite higher production as a result of rebuilding product coal inventories following a prior period drawdown.

BMA: While production was in line with prior period, sales volumes were lower due to timing of shipments.

Nickel West: Higher sales volumes primarily due to:

· increased concentrate and matte product sales; and

· timing of shipments.

Partially offset by lower refined nickel sales as a result of issues with third party ore deliveries and a rain event at Mt Keith.

Change in controllable cash costs

(1,426)

(766)

6

(212)

(454)

Operating cash costs

(1,318)

(667)

3

(211)

(443)

Copper South Australia: Increased costs at Olympic Dam primarily due to the drawdown of inventory built during SCM21 in the prior period.

Pampa Norte: Increased costs primarily relate to planned unfavourable inventory movements, to ensure consistent feed to SGO (Spence) and in preparation for closure (Cerro Colorado).

Escondida: Higher costs due to:

· higher contractor costs and unfavourable inventory movements due to stock builds in FY22 from record material mined;

· partially offset by prior period COVID-19 cost impacts and workforce bonus payments for renewal of a collective bargaining agreement in FY22.

WAIO: Cost improvements due to:

· savings secured through the global procurement model; and

· easing of Western Australia's COVID-19 restrictions and prior period compliance costs;

Partially offset by:

· increased labour costs;

· inventory drawdown to mitigate the disruption of operational impacts.

BMA: Higher costs primarily due to increased maintenance activity, increased labour costs and inventory drawdowns due to the impacts of significant wet weather and mining in higher strip ratio areas.

NSWEC: Higher costs primarily due to increased freight costs at the NCIG coal export terminal and the cost associated with deploying additional stripping capacity.

Nickel West: Higher costs driven by inventory drawdowns to mitigate disruption caused by heavy rain at Mt Keith and third party ore quality and delivery issues.

Group and Unallocated also includes increased overhead expenses due to construction at Jansen Stage 1.

Exploration and business development

(108)

(99)

3

(1)

(11)

Copper South Australia: Higher exploration spend for drilling activities at Oak Dam and Olympic Dam.

Change in other costs

Exchange rates

667

(3)

211

282

177

Inflation

(1,412)

(701)

(244)

(262)

(205)

Fuel, energy, and consumable price

(272)

38

(112)

(118)

(80)

movements

Escondida and Spence:

· lower power prices due to the renewables transition; and

· lower acid prices.

Partially offset by:

· higher diesel and consumable prices.

WAIO: Primarily due to higher diesel prices.

BMA & NSWEC: Primarily due to higher diesel and explosives prices.

Nickel West: Higher prices for consumables and reagents, diesel, ammonia and explosives.

Non-Cash

7

(53)

60

−

−

Escondida: Lower capitalised stripping costs reflecting lower waste material moved.

Spence: Higher capitalised stripping costs reflecting increased waste material moved.

WAIO: Write-off of dormant stockpiles in prior period, partially offset by higher depletion of production stripping.

One-off items

(411)

−

−

−

(411)

G&U: Includes the review of employee allowances and entitlements, and OZL acquisition costs.

Asset sales

−

1

5

(6)

−

Ceased and sold operations

(1,434)

 −

−

(1,383)

(51)

BMC: Unwind of the contribution of BHP's 80% interest in BMC, prior to divestment in May 2022.

New and acquired operations

57

72

−

−

(15)

OZL: Contribution from recently acquired assets.

Other

(734)

(281)

(134)

(19)

(300)

Antamina: Decreased profit driven by lower copper realised prices.

WAIO: Other includes higher freight and distribution costs.

Marketing: Includes US$414 m lower recovery of freight costs caused by movements in the freight index on continuous voyage charter (CVC) voyages.

Year ended 30 June 2023

27,956

6,653

16,692

4,998

(387)

Average

Average

Year ended

Year ended

As at

As at

As at

30 June

30 June

30 June

30 June

30 June

Australian dollar1

0.67

0.73

0.66

0.69

0.75

Chilean peso

864

811

803

920

735

FY24e

FY23

FY22

Maintenance and decarbonisation1

3.1

2,981

2,765

Development - Minerals

6.5

3,752

3,090

Capital expenditure (purchases of property, plant and equipment)

9.6

6,733

5,855

Add: exploration expenditure

0.4

350

256

Capital and exploration expenditure - Continuing operations

~10.0

7,083

6,111

Potash

Jansen Stage 1

(Canada)100%

Design, engineering and construction of an underground potash mine and surface infrastructure, with capacity to produce 4.35 Mtpa.

5,723

End-CY26

Project is 26% complete.

Copper (kt)1

1,720 - 1,910

1,717

0% - 11%

Escondida (kt)

1,200 - 1,3002

1,080 - 1,180

1,055

2% - 12%

Pampa Norte (kt)

~2503

210 - 2503

289

(27%) - (13%)

Copper South Australia (kt)4

310 - 340

232

33% - 46%

Antamina (kt)

120 - 140

138

(13%) - 1%

Carajás (kt)

-

1.6

-

Iron ore (Mt)

254 - 264.5

257

(1%) - 3%

WAIO (Mt)

250 - 260

253

(1%) - 3%

WAIO (100% basis) (Mt)

>305

282 - 294

285

(1%) - 3%

Samarco (Mt)

4 - 4.5

4.5

(11%) - 0%

Metallurgical coal - BMA (Mt)

28 - 31

29

(4%) - 7%

BMA (100% basis) (Mt)

56 - 62

58

(4%) - 7%

Energy coal - NSWEC (Mt)

13 - 15

14

(8%) - 6%

Nickel (kt)

77 - 87

80

(4%) - 9%

FY23 at

Medium-term

FY24

guidance

realised

Escondida unit cost (US$/lb)

1.30 - 1.60 4,5

1.40 - 1.704

1.40

1.40

Spence unit cost (US$/lb)

2.00 - 2.30

2.09

2.11

WAIO unit cost (US$/t)5

17.40 - 18.90

18.91

17.79

BMA unit cost (US$/t)

95 - 105

105.21

96.46

Fatalities

Zero work-related fatalities

2

0

High-potential injury (HPI) frequency2

Year-on-year improvement in HPI frequency

0.18

0.14

Total recordable injury frequency (TRIF)2

Year-on-year improvement in TRIF

4.5

4.0

Operational greenhouse gas (GHG) emissions(Mt CO2-e)

Reduce operational GHG emissions by at least 30 per cent from FY20 levels4 by FY30

9.8

11.0

Value chain emissions: 

Financial value committed in steelmaking partnerships and ventures to date (US$ m)

Steelmaking: 2030 goal to support industry to develop technologies and pathways capable of 30 per cent GHG emissions intensity reduction in integrated steelmaking, with widespread adoption expected post-2030

114

90

Value chain emissions:

Reduction5 in emissions intensity of BHP-chartered shipping of our products (%)

Maritime transportation: 2030 goal to support 40 per cent GHG emissions intensity reduction of BHP-chartered shipping of BHP products

41

Social investment (US$M)

Voluntary investment focussed on the six pillars of our social value framework

149.6

186.4

Indigenous procurement spend (US$M)

Purchases from Indigenous vendors of US$269 million in FY23

332.6

149.9

Female employee participation (%)

Aspirational goal for gender balance6 by the end of FY25

35.2

32.3

Indigenous employee representation (%)

Australia7: aim to achieve 9.7 per cent by the end of FY27

8.6

8.3

Chile8: aim to achieve 10.0 per cent by the end of FY25

9.7

8.7

Canada9: aim to achieve 20.0 per cent by the end of FY26

7.7

7.2

Area under nature-positive management practices10 (%)

2030 goal of having at least 30 per cent of the land and water we steward11 under conservation, restoration or regenerative practices

1.3

1.0

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