Bringing people and
resources together to
build a better world
Annual
Report 2025
Cover photo
Escondida, Chile
Contents
Overview
Our performance highlights 2
Chair’s review 4
Chief Executive Officer’s review 5
Operating and Financial Review
1 Why BHP 6
2 Our business 8
2.1 Our portfolio 8
2.2 Where we operate 10
3 Our key differentiators 11
4 Positioning for growth 12
5 Financial review 13
Chief Financial Officer’s review 13
5.1 Group overview 14
5.2 Key performance
indicators 14
5.3 Financial results 15
5.4 Debt and sources
of liquidity 17
6 Our assets 19
6.1 Copper 19
6.2 Iron ore 21
6.3 Coal 22
6.4 Potash 23
6.5 Nickel 24
6.6 Commercial 24
7 How we manage risk 25
8 Safety 27
9 Sustainability 29
9.1 Our sustainability
approach 29
9.2 Sustainability
governance 30
9.3 Material sustainability
topics (including
human rights) 30
9.4 2030 goals and social
value scorecard 31
9.5 People 33
9.6 Health 35
9.7 Ethics and business
conduct 37
9.8 Climate change 39
9.9 Nature and environmental
performance 53
9.10 Tailings storage facilities 57
9.11 Community 57
9.12 Indigenous peoples 59
9.13 Value chain sustainability 61
9.14 Independent Assurance
Report to the Management
and Directors of BHP
Group Limited 62
10 Samarco 64
11 Risk factors 66
12 Performance by commodity 72
12.1 Copper 72
12.2 Iron ore 73
12.3 Coal 73
12.4 Other assets 74
12.5 Impact of changes to
commodity prices 74
13 Non-IFRS financial
information 75
13.1 Definition and
calculation of
non-IFRS financial
information 84
13.2 Definition and
calculation
of principal factors 85
14 Other information 86
14.1 Company details 86
14.2 Forward-looking
statements 86
Corporate Governance Statement
1 Corporate governance at BHP 87
2 FY2025 corporate
governance highlights 87
3 BHP’s governance structure 88
4 Board composition and
succession 89
5 Board Committees 94
6 Management 96
7 Shareholders and reporting 97
8 Culture and conduct 98
9 Risk management
and assurance 99
10 US requirements 100
Directors’ Report
1 Review of operations, principal
activities and state of affairs 101
2 Directors 101
3 Share interests 102
4 Share capital and buy-back
programs 102
5 Group Company Secretary 102
6 Indemnities and insurance 102
7 Dividends 103
8 Auditors 103
9 Non-audit services 103
10 Exploration, research
and development 103
11 ASIC Instrument 2016/191 103
12 Proceedings on behalf
of BHP Group Limited 103
13 Performance in relation to
environmental regulation 103
14 Additional information 103
Remuneration Report
Letter from the People and
Remuneration Committee Chair 104
Remuneration at a glance 105
Our Key Management Personnel 106
Remuneration Governance 106
Paying competitively 107
Key terms of our variable
remuneration framework
and equity plans 108
Remuneration mix 109
Remuneration for
Executive KMP 110
Remuneration for
Non-executive Directors 113
Statutory remuneration
and other disclosures 114
Additional Information
1 Information on mining
operations 188
2 Financial information
summary 198
3 Financial information
by commodity 199
4 Production 201
5 Major projects 203
6 Mineral Resources and
Ore Reserves 204
7 People – performance data 217
8 Legal proceedings 218
9 Shareholder information 221
10 Glossary 227
Financial Statements
1 Consolidated Financial
Statements 118
2 Consolidated entity
disclosure statement 177
3 Directors’ declaration 181
4 Lead auditor’s independence
declaration under Section
307C of the Australian
Corporations Act 2001 182
5 Independent auditor’s report
to the members of BHP
Group Limited 183
BHP Annual Report 2025
BHP Group Limited
ABN 49 004 028 077
Annual Report 2025
Economic Contribution
Report 2025
Modern Slavery
Statement 2025
ESG Standards and
Databook 2025
2025
Annual
Reporting Suite
In FY2025, we made good progress on
strengthening our pipeline of attractive
growth options in copper and potash,
and delivered another strong year of
operational and financial performance.”
Mike Henry
Chief Executive Officer
Copper PotashCoalIron ore
1Operating and Financial Review Additional InformationFinancial StatementsGovernanceContents Overview
Our performance highlights
Resilience
and growth
Record copper production
Highest production in 17 years at Escondida,
a record at Spence and record quarterly
production in Q4 at Copper South Australia.
Record iron ore production
Third-consecutive year of record production
at WAIO, as we again demonstrated supply
chain excellence from pit to port.
Steelmaking coal production lift¹
Queensland steelmaking coal volumes rose
5% with improved truck productivity offsetting
heavy wet weather and geotechnical challenges.
First potash estimated
mid-CY2027
Jansen Stage 1 is 68% complete. 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.
2 BHP Annual Report 2025
Dividend per share
110USc
FY2024: 146 USc
Profit from operations
US$19.5bn
FY2024: US$17.5 bn
Underlying earnings per share²
200.2USc
FY2024: 269.5 USc
Total payments to governments
US$10.4bn
FY2024: US$11.2 bn
3Operating and Financial Review Additional InformationFinancial StatementsGovernanceContents Overview
1. Excluding the contribution of the Blackwater and Daunia mines, divested
by BMA on 2 April 2024.
2. For more information on Non-IFRS Financial Information refer to OFR 13.
3. Combined employee and contractor frequency per 1 million hours worked.
Excludes OZ Minerals Brazil assets.
4. For more information on the calculation of this metric and on our GHG emissions
targets and goals refer to OFR 9.8.
5. For more information on this metric and how we define gender balance refer to OFR 9.5.
6. For more information on our total economic contribution, refer to the BHP Economic
Contribution Report 2025.
7. For more information on this metric refer to OFR 9.12 .
High potential
injury frequency³ Fatalities
18%
From FY2024
0
FY2024:1
Operational greenhouse gas emissions
(Scopes 1 and 2 from our operated assets)
4
5%
on FY2024
and we remain on track to achieve
our medium-term target by FY2030
Indigenous partnerships
7
US$853m
up 40% on FY2024
Record Indigenous
procurement spend
Achieving gender balance
5
41.3%
Female employee representation
at 30 June 2025
We achieved our aspirational goal
of gender balance by CY2025,
having started this journey
at 17.6% female employee
representation in CY2016
Total economic contribution
6
US$46.8bn
We contributed US$40.5bn to suppliers, contractors,
employees, governments and voluntary investment in social
projects across the communities where we operate during the
year. This was 87% of our total economic contribution.
Chair’s review
Dear Shareholders,
I am pleased to provide BHP’s Annual Report
for FY2025.
It is an honour and a privilege to be your new
Chair. Your Board and I are excited about the
future of this great company.
I want to acknowledge the contribution of my
predecessor, Ken MacKenzie, who led the
Board as Chair for seven years. I thank Ken
for his outstanding service to the Board and
BHP during his tenure. Ken leaves a lasting
legacy at BHP.
In times of global uncertainty, stability and
resilience matter. BHP has stood for both
for 140 years.
What we do matters. The world needs more
of the materials we produce to develop,
decarbonise and digitalise.
BHP has a substantial role to play in
producing the vital materials the world
needs and in contributing to the success
of the global economy.
We remain well positioned to meet global
demand for the commodities we produce
in order to create long-term value for our
shareholders, local communities, customers,
suppliers and partners.
Rewarding shareholders
BHP has a simple, clear strategy that is resilient
amid any operating environment. Executing this
strategy has allowed us to perform well through
mining and economic cycles.
The company performed strongly in FY2025,
generating significant cash flow. Healthy cash
returns are important for shareholders, including
the hundreds of thousands of retail shareholders
who rely on BHP to support their income and
retirement. Over the past five years, BHP has
delivered more than US$50 billion in cash
dividends to our shareholders.
Our Capital Allocation Framework (CAF)
promotes discipline in all our capital
decisions and prioritises capital for safety
and maintenance, balance sheet strength
and a minimum dividend payout ratio of
50 per cent of underlying attributable profit
at every reporting period.
For FY2025, your Board determined dividends
totalling 110 US cents a share. This represents
a total distribution to shareholders of
US$5.6 billion, or 55 per cent of the underlying
attributable profit for FY2025.
Building for the future
Our performance allows us to plan for
and invest in value adding growth projects.
BHP has a strong growth pipeline of organic
and greenfield projects in copper, iron ore
and potash.
Our growth strategy generates greater exposure
to commodities that the world needs to reduce
greenhouse gas emissions and as the population
grows, continues to urbanise and seeks higher
living standards.
Continuing to evolve
As we have for the past 140 years, we continued
to position BHP’s portfolio to align to the global
trends shaping our future. We have reshaped
BHP’s portfolio to increase our exposure to
future-facing commodities and higher-quality
steelmaking materials.
Our iron ore business is a critical part of our
future and we have extended our lead as the
lowest-cost major iron ore producer globally.
We have achieved a world-leading position
in copper, which is key to renewable energy,
electric vehicles and data centres.
We are developing a position in potash that will
contribute to food security and more sustainable
land use. We have focused our steelmaking
coal portfolio on higher-quality coals preferred
by our customers to produce steel for cities
and infrastructure for decarbonisation.
Today, we have a portfolio and options for
growth that leave us well positioned to provide
the commodities the world will need more of
in the decades to come.
Looking ahead
Your company is well placed to meet the
challenges of our rapidly changing world.
It is the combination of our outstanding people,
world-class assets and execution excellence that
creates long-term value for our shareholders and
for the communities where we live. In FY2025,
we showed that the consistent execution of our
clear and simple strategy delivers results.
BHP is an outstanding business in great
shape and I am confident we can continue
to create value for you, our partners and many
other stakeholders in the year ahead and for
decades to come.
I look forward to meeting you at our Annual
General Meeting.
Thank you for your continued support.
Ross McEwan
Chair
Your company is well placed
to meet the challenges of
our rapidly changing world.
It is the combination of
our outstanding people,
world-class assets and
execution excellence that
creates long-term value for
our shareholders and for the
communities where we live.”
4 BHP Annual Report 2025
Chief Executive Officer’s review
Dear Shareholders,
In FY2025, we made good progress on
strengthening our pipeline of attractive growth
options in copper and potash, and delivered
another strong year of operational and
financial performance.
Most importantly, we did so safely. Nothing matters
more than the safety of our people. We had no
fatalities, and our total recordable injury and high
potential injury frequency measures were both
lower than the prior year.
This improvement has been driven by significant
investments in engineering controls through
our Fatality Elimination Program, continuous
improvement of how leaders support their
teams through Field Leadership and the
operating discipline delivered through the
BHP Operating System.
Executing well and delivering on our promises
builds trust. Combined with the quality of our
assets and the attractiveness of our chosen
commodities, this gives us resilience and the
foundation for long-term value growth.
Mining now in the global spotlight
We’re seeing an increasing focus on critical
minerals supply and supply chain security
across the globe. This is happening against
a backdrop of growing geopolitical and trade
tensions, and reflects a growing understanding
and acceptance of the critical role mining will
play in supporting national security, energy
transitions and technology development.
There is also a clearer recognition of
the significant economic opportunity that
accompanies investment in resources projects.
Many resources producing nations are taking
aggressive steps to improve competitiveness
and to attract global capital to invest in new
resource project opportunities.
We continue to advocate for policies that drive
productivity, encourage investment and spur
economic growth. We engage with political
leaders, policymakers and industry counterparts
regularly, making the case for the settings
to unlock resources for the shared benefit
of nations, our sector and your company.
Creating social value
Our approach to social value and sustainability
differentiates BHP and is essential to the
creation of long-term shareholder value.
We’re seeing practical challenges affect the
pace of the global energy transition, including
the development of the necessary technology
at competitive cost. BHP’s climate commitments
remain unchanged and we remain on track to meet
our FY2030 operational decarbonisation target.
We continue to partner with First Nations and
Indigenous peoples around the world. Over 90 per
cent of BHP’s operations are located on or near
the traditional lands of Indigenous peoples – and
we seek to build long-term relationships based
on trust and mutual benefit. The significant uplift
in our spend with Indigenous businesses during
the year is a clear demonstration of this. We’re
focused on building multi-year partnerships
that enable Indigenous businesses to secure
investment, grow with confidence and build their
capability to provide goods and services to large
companies like BHP.
A culture and system for
high performance
Everything we achieve starts with our 90,000
strong workforce.
This year we reached our global employee
gender balance ambition of 40 per cent female
representation early, and improved year-on-year
performance against our Indigenous employee
participation targets in Australia, Canada and
Chile. Our efforts to build a better BHP, with
a more inclusive, collaborative and respectful
culture, have underpinned this achievement, and
contributed to a safer, more productive and more
reliable BHP.
We have built a track record of operational
excellence over recent years, underpinned
by the BHP Operating System.
In FY2025, we achieved copper production
of over 2 million tonnes for the first time – and
have lifted copper production by 28 per cent
since FY2022. In steelmaking coal, improved
operational productivity helped us increase
production at BMA, excluding Blackwater
and Daunia which were divested in April 2024.
At Western Australia Iron Ore, we achieved
record production while maintaining our position
as the world’s lowest cost major iron ore producer,
now for the sixth year in a row.
Project delivery
We are embedding the BHP Operating System
in the way we plan and execute our capital
projects as well. We recognise that reliable,
capital efficient development of assets and
infrastructure is critical to enabling our growth
and to maximising shareholder returns.
On Jansen Stage 1, a combination of inflation
and cost escalation, design development and
scope changes, and lower productivity on certain
aspects of the project have resulted in a revision
of our costs for construction. This is disappointing.
It is not representative of the performance we
have seen on BHP projects more broadly, nor
what we aspire to.
We’re taking steps to improve performance
on Jansen Stage 1 and we’ll be applying what
we learn to strengthen project delivery across
the board at BHP.
Winning strategy, clear path
for growth
Our simple, clear strategy drives strong results
and long-term value growth.
We’ve reshaped our portfolio in anticipation of
the megatrends playing out around us, including
our position in copper. A much greater proportion
of our EBITDA – 45 per cent in FY2025 – now
comes from copper. And we’re pursuing more
copper growth from our existing assets and
through strategic partnerships, including our
newly formed Vicuña joint venture which holds
copper deposits on the Argentina-Chile border.
Through the disciplined application of our
Capital Allocation Framework, we seek to
sustain our assets, maintain a strong balance
sheet and balance attractive shareholder returns
and investment in our growth.
The quality of our assets and our pipeline of
compelling growth prospects gives us added
optionality. This allows us to deliberately
and strategically choose how we grow
value for shareholders.
To support our growth, we’re putting our
strong balance sheet to work. We’ve optimised
our net debt target range to US$10 billion to
US$20 billion. This reflects the significant
improvement in our operational performance and
portfolio since it was last set.
A clear future
We have world-leading assets and we operate
them well – underpinned by the sustained focus
and capability building that comes through the
BHP Operating System.
This allows us to deliver industry-leading
margins, high returns and funds for our growth –
a unique combination that underpins our strength,
consistency and resilience through the cycle.
I am confident that BHP is positioned to deliver
attractive value and growth for you in the years
ahead. Thank you for your continued support.
Mike Henry
Chief Executive Officer
We have world-leading
assets and we operate
them well – underpinned
by the sustained focus
and capability building that
comes through the BHP
Operating System.”
5Operating and Financial Review Additional InformationFinancial StatementsGovernanceContents Overview
1 Why BHP
13 August 2025 marked 140 years since
seven ordinary people gathered on a small
plot of ground at Broken Hill in outback
New South Wales, Australia. They had
no idea the silver, lead and zinc mine they
had established would become one of the
world’s biggest companies and a global
leader in the resources industry, BHP.
Since then, BHP has produced many of the vital resources the world needs
to grow and develop. Materials integral to what we use and do every day.
Over the last 140 years our business has remained steadfastly resilient
through mining cycles regardless of what has been happening in the
world around us. We have done this by continually evolving our portfolio,
by our ongoing drive to be the world’s best mining operator and by
applying financial discipline to the decisions we make.
We have built our business by investing, expanding and reshaping it to
meet the changing demands of the world. Providing rewarding jobs
and careers for hundreds of thousands of people. Making valuable
contributions to the countries, regions and communities where we
operate. Rewarding our shareholders with dividends and strong returns.
Today, BHP is the world’s largest mining company by market capitalisation.
1
We have world-leading operations across the globe producing materials
vital for a better world. And we are positioned and ready to meet the
challenges of the decades to come.
How we operate is important
The keys to our successful past and exciting future are the same – our
people, capabilities, scale, portfolio and, in more recent times, the unique
overarching way we work through the BHP Operating System (BOS).
BOS differentiates our approach, makes improvement central to everyone’s
role and provides for sustainable operating excellence year after year.
We seek to use our capital carefully and effectively. We operate our assets
efficiently. We have an overriding focus on safety. We embrace technology
and innovation.
We have a clear strategy and proven record of execution against it.
We grow value through our large, long-life, quality assets in materials that
improve standards of living and support decarbonisation and digitalisation,
and through our differentiated focus on social value, which is integral to
how we operate. We seek to extract materials as efficiently and effectively
as we can while seeking to appropriately manage impacts on the planet.
We choose to partner with peers, suppliers and customers where we
believe we can innovate or create value together.
Our products are vital for a better world
Copper, iron ore, steelmaking coal and potash support the pursuit of a very
basic human instinct – to improve our lives and those of the generations
that come after us. Copper for renewable power, to rewire our energy
system and to enable digitalisation. Steelmaking materials to build better,
safer and more liveable cities and renewables infrastructure. Potash for
food security and more sustainable land use.
These are building blocks for a better world. Billions of people seeking
higher standards of living is an enduring source of demand for commodities
that BHP is proud to play a part in supplying.
We have multiple growth options
As new large, low-cost ore bodies become harder to find and develop,
the scale and quality of our portfolio positions us well. We hold some
of the world’s largest resources and lowest-cost assets.
One of our biggest growth levers is productivity and unlocking more
value from the assets we operate. We seek to improve productivity
through the capabilities of our people and our culture of continuous
improvement, and the use of technology and innovation to extract
more from what we do every day.
1. Market capitalisation as at 30 June 2025, sourced from Bloomberg.
The scale of our assets provides growth options. In copper, we are
advancing multiple options in Chile and we are studying growth options
at our copper province in South Australia. We are seeking to produce more
iron ore in Western Australia. We are working to improve productivity at our
steelmaking coal operations in Queensland. We have sanctioned the
second stage of our Jansen potash project in Canada, which we believe
will double Jansen’s expected production capacity once complete.
We are always on the lookout for the right opportunities. In the last financial
year, we formed the Vicuña joint venture with Canada’s Lundin Mining, which
holds the Josemaria and Filo del Sol copper deposits on the Argentina-Chile
border. The Vicuña joint venture will create a long-term partnership between
BHP and Lundin Mining to jointly develop an emerging copper district with
world-class potential. The Filo del Sol deposit is one of the largest copper
deposit discoveries in the last 30 years.
We are a partner with Rio Tinto in the Resolution Copper Project in the
United States, which is also one of the largest undeveloped copper projects
in the world and has the potential to become a significant copper producer
in North America.
Our focus on social value generates business value
Social value is what we call our positive contribution to society. It helps
underpin stable operations, reduces risk and opens doors to opportunities,
partnerships, talent and capital. It delivers business value.
We are proud to have achieved our long-term aspirational goal of gender
balance within our employee workforce during FY2025. We define gender
balance as a minimum 40 per cent women and 40 per cent men, consistent
with the definitions used by entities such as the International Labour
Organization. Female employee representation reached 41.3 per cent
at financial year end, from 17.6 per cent when we began this journey
nine years ago.
We are the first global, listed mining company to achieve this milestone,
which has not only made BHP a better, more inclusive business for our
workforce, it has helped make us a better place to work. A more inclusive
culture has underpinned both female representation and better safety and
operational performance.
We see enormous opportunity before us
The opportunity for BHP and what we can contribute for the world is
profound. The development, decarbonisation and digitalisation of the
globe involve pathways that require a significant increase in production
of the key materials we produce.
We seek to meet this demand and grow value for our partners and
stakeholders, driving attractive returns and long-term value for
our shareholders.
BHP has been bringing people and resources together to build a better
world for the last 140 years. Our resilient business is well positioned to fulfil
our aspiration to deliver value for our shareholders and those around us for
many more to come.
6 BHP Annual Report 2025
Our Purpose
Our Values
Set the tone for our culture, a
unique part of our competitive
advantage. They are a declaration
of what we stand for. They guide
our decision-making, reinforce our
culture and ensure all our people
deliver on our purpose.
Do what’s right
A sustainable future starts with safety and
integrity, building trust with those around us.
Seek better ways
Listening to learn and inspiring challenge
is how we drive progress.
Make a difference
The accountability to act, create value and
have impact is on each of us, every day.
We will responsibly manage the most
resilient long-term portfolio of assets,
in highly attractive commodities and
will grow value through being excellent
at operations, discovering and developing
resources, acquiring the right assets and
options, and capital allocation.
Through our differentiated approach to
social value, we will be a trusted partner
who creates value for all stakeholders.
Our business model
Exploration and acquisition
We seek to add high-quality interests through
our exploration activities and early-stage entry
and acquisition options.
Development and mining
We strive to achieve the industry’s best
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.
Our strategy
Operating and Financial Review 7Additional InformationFinancial StatementsGovernanceOverviewContents
2 Our business
A resource mix for today – and for the future
We have copper, which is used in electrification and renewable power and is important
for digitalisation. We have iron ore, which is essential for making steel needed for
construction, including renewables infrastructure. Our higher-quality steelmaking coal
is used in the blast furnace process for making steel. We are developing a world-class
potash asset. Potash is used in fertilisers to assist with food security for a growing
population and more sustainable land use. We are also a major producer of uranium
and gold, which are by-products of our copper production.
2.1 Our portfolio
Record group copper production
2.02 Mt
8% on FY2024
Copper
We are one of the world’s largest copper
producers. We continue to pursue our strategy
to increase our exposure to copper by effective
capital allocation to grow our existing assets and
through exploration, acquisition and early-stage
options. We are using technical innovation, such
as new flotation technology, to help control
energy costs and unlock value.
Our copper production rose 8 per cent in
FY2025 to a record of over 2 million tonnes (Mt).
We have grown annual copper production by
28 per cent since FY2022.
Escondida in Chile is the world’s largest copper
mine and achieved its highest production in
17 years. Spence in Chile achieved record
production, while in Australia, Copper SA finished
the year strongly with copper production records
in June and for the second half of the year.
In FY2025, we increased our early-stage options
in copper by forming the Vicuña joint venture
with Canada’s Lundin Mining to hold the
Josemaria and Filo del Sol copper prospects
on the Argentina-Chile border. This joint venture
provides an exciting opportunity to jointly
develop an emerging copper district with
world-class potential.
Group copper production for FY2026 is expected
to remain strong at between 1.8 Mt and 2 Mt on
a consolidated basis. As we look ahead to the
2030s, we have a number of projects in execution
and under study that we estimate could deliver
2 million tonnes per annum (Mtpa) of attributable
copper production during the decade.
1
For more information refer to
OFR 6.1
Iron ore
Western Australia Iron Ore (WAIO) is the
lowest-cost major iron ore producer globally
2
and has one of the lowest greenhouse gas
(GHG) emission production intensities of
benchmarked iron ore operations.
3
WAIO set multiple records in FY2025, including
for full-year production of 257 Mt (290 Mt on
a 100 per cent basis). South Flank exceeded
its name plate capacity production of 80 Mt
(100 per cent basis) in its first full year of
operation after being delivered on time and
on budget in FY2024.
The efficiency of our infrastructure hubs
continued to strengthen performance, with rail,
port and technology investments delivering
tangible production outcomes.
Production for FY2026 is expected to be between
284 and 296 Mt (100 per cent basis) incorporating
the planned renewal of Car Dumper 3 in the first
half of FY2026 and the ongoing tie-in activities
for the Rail Technology Programme.
Production increased by 34 per cent at Samarco
in Brazil to 6.4 Mt (12.8 Mt 100 per cent basis) in
FY2025 following the ramp up of a second
concentrator ahead of schedule.
For more information refer to OFR 6.2
1. Represents our current aspiration for BHP group attributable copper production, and not intended to be a projection, forecast or production target and investors should not rely on
this aspirational statement when making any investment decisions. The statement is aspirational as it is contingent on potential increases in production rates, as well as potential from
non-operated joint ventures and exploration programs (which are uncertain and may not be realised). The pathway is subject to the completion of technical studies to support Mineral
Resource and Ore Reserves estimates, capital allocation, regulatory approvals, market capacity and, in certain cases, the development of exploration assets, in which factors are uncertain.
2. BHP internal analysis based on WAIO C1 reported unit costs compared to publicly available unit costs reported by major competitors (including Fortescue, Rio Tinto and Vale), adjusted
based on publicly available financial information.
8 BHP Annual Report 2025
Third-consecutive full-year
production record
263 Mt
1% on FY2024
Focusing on higher-quality product
18 Mt
19% on FY2024
Steelmaking coal
We continue to focus our steelmaking coal
operations in Queensland on higher-quality
product and have one of the lowest GHG
emission production intensities of benchmarked
export steelmaking coal mines.
3
Excluding the contribution of the Blackwater
and Daunia mines, which were divested in
FY2024, production increased 5 per cent to
18 Mt in FY2025 (36 Mt 100 per cent basis).
Raw coal inventory levels increased 12 per cent.
The strong performance was underpinned by
improved truck productivity and led to increased
production across all open-cut mines.
Our focus on rebuilding raw coal inventory
enabled us to stabilise operating performance
We are developing one of the world’s largest
potash mines in Canada. Jansen will increase
our product diversification, customer base and
operating footprint, and expand our business
into a future growth market.
Jansen Stage 1 (JS1) was 68 per cent complete
by the end of FY2025.
In July 2025, we announced updates relating
to the Jansen potash project.
We estimate capital expenditure for JS1 to increase
from our original estimate of US$5.7 billion to be
in the range of US$7.0 billion to US$7.4 billion
including contingencies, and first production to
revert back to the original schedule of mid-CY2027.
We expect to update the market on JS1’s timing
and optimised capital expenditure estimate in the
second half of FY2026.
Major global producer by the end of the decade
US$7.0–US$7.4bn
Estimated capital expenditure for Jansen Stage 1
Potash
3. For CY2024, the GHG emissions intensity of our production of our commodities is estimated to rank in the first quartile for our iron ore and sitting across first and second quartiles for copper
and steelmaking coal mines of global mining operations analysed by CRU. This analysis is based on CY2024 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 how the GHG emission intensity for our iron ore, and copper, and steelmaking coal mines has been calculated
and compared refer to the BHP ESG Standards and Databook 2025 available at bhp.com/ESGSD2025.
We have decided to extend the execution
of JS2 by two years, shifting first production
from FY2029 to FY2031, as part of our regular
review of capex sequencing under the Capital
Allocation Framework.
JS2’s capital expenditure remains under review
and we expect to update the market on JS2’s
optimised capital expenditure estimate in the
second half of FY2026.
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.
For more information refer to OFR 6.4
across the asset and increase production despite
geotechnical challenges at Broadmeadow and
a 36 per cent year-on-year increase in rainfall.
Production for FY2026 is expected to increase
to between 18 and 20 Mt (36 and 40 Mt on a
100 per cent basis), weighted to the second half,
while unit costs are expected to decrease with
guidance between US$116/t and US$128/t as
we push to further improve productivity.
Our focus on improving value chain stability will
continue into CY2027 as we continue to rebuild
raw coal inventory to sustainable levels and
normalising strip ratios.
For more information refer to OFR 6.3
9
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
2.2 Where we operate
2 Our business continued
Total payments to
governments
3
(US$)
$6.8bn
Australia
$10.4bn
Global total
We remain one of the largest taxpayers in
Australia, contributing US$6.8 billion in FY2025.
During the last decade, we paid US$98.1 billion
globally in taxes, royalties and other payments to
governments, including US$78.1 billion in Australia.”
Vandita Pant
Chief Financial Officer
$49m
Canada
$3.2bn
Chile
$290m
Rest of the world
4
NickelPotashCoalIron oreCopper
Australia
Chile
Canada
Rest of the world
4
1. This includes contribution to suppliers, wages and benefits for employees, dividends,
taxes and royalties, and voluntary social investment. For more information refer to the
Economic Contribution Report 2025.
2. Based on a ‘point-in-time’ snapshot of employees as at 30 June 2025, including
employees on extended absence. Contractor data is collected from internal
organisation systems and averaged for a 10-month period, July 2024 to April 2025.
3. For more information refer to the Economic Contribution Report 2025.
4. Rest of the world includes consolidation adjustments.
No. of employees
and contractors
2
91,304
Global total
5,875
35,911
2
,696
46
,822
Payments to
suppliers
3
(US$)
$24.8bn
Global total
$2.5bn
$7.3bn
$
1.8bn
$
13.2bn
Total economic
contribution
1
(US$)
$46.8bn
Global total
$3.6bn
$11.4bn
$2.0bn
$
29.8bn
Western Australia
Iron Ore
Western
Australia Nickel
BHP Mitsubishi Alliance
NSW Energy Coal
Copper South Australia
London
Gurgaon
Singapore
Perth
Adelaide
Melbourne
Brisbane
Kuala Lumpur
Manila
Shanghai
Tokyo
Non-operated
joint venture
BHP principal
office location
Pampa
Norte
Escondida
Carajás
Samarco
Antamina
Resolution Copper
Jansen
Tucson
Belo
Horizonte
Iquique
Santiago
Saskatoon
Toronto
Washington
Lima
Antofagasta
Vicuña
10 BHP Annual Report 2025
BHP is in the right commodities. We hold great resources.
We operate them excellently. And we apply discipline in how
we allocate capital. The combination of these factors underpins
enduring value creation. They also enable our resilience
through the mining cycle.
There are many factors that contribute to our business stability, each of which
is vital. It’s the unique combination of these factors that sets BHP apart.
Our people
We have more than 90,000 employees and contractors globally.
1
We
strive to offer an engaging and supportive workplace, which empowers
our people to find safer and more productive ways of working. To do this,
we provide tools and opportunities in our working environment to allow our
people to perform at their best. Our people are empowered daily in their
work by the BHP Operating System (BOS).
Safety
Fatalities
High potential
injury frequency
2
0
FY2024: 1
0.09
18% from FY2024
BHP Operating System
BOS is our unique overarching management system that enables the right
culture, routines, behaviours and leadership to deliver operating excellence
and leading safety performance. It provides us with a competitive edge.
BOS drives continuous improvement through the application of BOS
tools and practices. It helps strengthen our culture and enables us to set
ambitious targets where our people can learn and enjoy what they are
doing. It makes improvement central to everyone’s role.
BOS helps us focus on leadership development, capability and engagement,
and creates better-planned, more stable work processes.
How BOS works
Three principles underpin BOS and guide how we think and behave
at BH P.
1
Serve our
customer
We must know who
our customer is and
be fully committed to
meeting their needs
– delivering exactly
what they need, at the
right time and at the
appropriate levels
of quality and cost.
2
Pursue operating
perfection
Our ambition is
100% safety for our
people, 100% value
for our customers,
0% wasted expense
or effort – our efforts
for improvement
never stop.
3
Empower
our people
Our people know
their work and how
to improve it – they
are given the right
conditions to excel.
Social value
We are committed to social value and the responsible provision of
commodities the world needs to develop, decarbonise and digitise.
Social value creates business value.
In FY2025, we continued to refine our approach to social value. We have
a 2030 social value scorecard to monitor our progress. Each year since
first publishing the social value scorecard in June 2022, we have reported
performance against key metrics and the milestones for that year and set
out new short-term milestones for the next year to demonstrate the
pathway to FY2030.
For more information on our 2030 social value
scorecard refer to OFR 9.4
3 Our key differentiators
Financial excellence
We use our Capital Allocation Framework (CAF) to assess the most
effective and efficient way to deploy capital. Since we last revised our net
debt target range in FY2022, our underlying portfolio fundamentals have
improved, with materially higher copper production, improved operational
stability, an industry-leading cost position at WAIO and lower unit costs at
our operated copper assets leading to improved debt service capacity.
Our balance sheet remains strong, and we are putting it to work to assist in
funding our suite of attractive organic growth projects while we continue to
deliver attractive shareholder returns. As a result, we have increased our
net debt target range to between US$10 billion and US$20 billion (from
between US$5 billion and US$15 billion).
Our Capital Allocation Framework
Operating productivity Capital productivity
Balance sheet Additional dividends Buy-backs
Organic development Acquisitions/divestments
Net operating cash flow
Maintenance and
decarbonisation capital
Strong balance sheet
Excess cash
Minimum 50% payout
ratio dividend
50
Maximise value and returns
Exceptional performance
Operating excellence
Enabled by BOS, operational excellence underpins strong returns and
investment growth. FY2025 was a standout year for BHP, marked by
record production, continued sector-leading margins and disciplined
capital allocation.
We are the world’s lowest-cost major iron ore producer and have been
for six years, and we have the best track record of delivering production
against guidance amongst our competitors.
Operating and financial strength
The strength of our portfolio, our operating excellence and financial
rigour from our disciplined application of the CAF enable us to deliver
strong and consistent returns. We achieved net operating cash flow of
US$18.7 billion in FY2025. Our net operating cash flow has been more
than US$15 billion for all but one of the past 16 years. Over the past
decade, our EBITDA margin has averaged 55 per cent and it is
approximately 10 percentage points above our closest major competitor.
Project excellence
Project excellence is a major focus and we continue to build strong
capability in this area. We have a disciplined approach to the execution
of projects with focus on predictability and efficiency, as shown through
our delivery of the South Flank mine and the Port Debottlenecking Project
1 at WAIO, and the Spence Growth Option in Chile.
Technology and innovation
In FY2025, we launched a refreshed Technology Strategy to accelerate the
role of technology as a key enabler of our business. This strategy positions
us to harness data, digital solutions and innovation to improve safety, enhance
productivity and unlock long-term value across our global operations.
Technology supports every part of our value chain – from exploration
and processing to production and logistics. We use automation, artificial
intelligence (AI) and data analytics to manage risk, improve asset performance
and support our decision-making. Our systems achieve critical technology
service availability nearly 100 per cent of the time, supporting the safe and
continuous operation of our operated assets and functions.
From a safety perspective, our strategy involves assessing new technologies,
such as proximity and edge detection systems on mobile equipment and
vehicles. AI is also expected to play an increasingly prominent role in our
operations and business.
By improving how we use data and digital tools, we aim to shorten
innovation cycles, reduce operational variability and accelerate value
creation. These efforts are already delivering results in areas such as
maintenance optimisation, supply chain planning and frontline safety.
For more information
refer to OFR 8
1. Based on a ‘point-in-time’ snapshot of employees as at 30 June 2025, including
employees on extended absence. Contractor data is collected from internal
organisation systems and averaged for a 10-month period, July 2024 to April 2025.
2. Combined employee and contractor frequency per 1 million hours worked. Excludes
OZ Minerals Brazil assets.
11Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
With our clear strategy and focus on creating and sustaining
the right portfolio of the best assets with enhanced growth
optionality, BHP is well placed to capitalise on the changes
shaping our world.
Our global copper growth program
Our biggest near-term growth levers are improving productivity at our existing
assets and unlocking more of their potential. We have significant opportunities
in our world-leading copper portfolio. These projects have potential to enable
significant total annual copper production through the 2030s.
In Chile, we have a strong pipeline of organic growth options with attractive
returns across our Escondida and Pampa Norte assets, which we expect will
enable copper production in Chile to average ~1.4 Mtpa through the 2030s.
In South Australia, we are assessing the pathway to deliver >500 kilotonnes
per annum (ktpa) of copper production (>700 ktpa CuEq) and a strategy
to deliver up to 650 ktpa copper production from the 100 per cent-owned
Copper South Australia. During FY2025, we have further optimised the
sequence of this growth program.
Vicuña: an exciting new venture
BHP is pleased to be partnering with Canada’s Lundin Mining in the
Vicuña joint venture, an exciting new copper growth opportunity for both
companies in Argentina and Chile. In January 2025, BHP and Lundin
Mining formed the Vicuña joint venture to hold the combined Josemaria and
Filo del Sol projects located on the Argentina-Chile border. The joint venture
will create a long-term partnership between BHP and Lundin Mining to jointly
develop an emerging copper district with world-class potential.
The proximity of Josemaria and Filo del Sol allows for infrastructure to
be shared between the deposits, with greater economies of scale and
increased optionality for staged expansions, as well as the incorporation
of future exploration as the development matures.
Unlocking further iron ore growth at WAIO
WAIO has been the world’s lowest-cost major iron ore producer for the
last six years. WAIO was designed with an initial capacity of 240 Mtpa
(100 per cent basis). In FY2025, WAIO produced a record 290 Mt
(100 per cent basis) demonstrating supply chain excellence from pit to port.
We have approved the commissioning of a sixth car dumper (CD6) and related
infrastructure at Port Hedland for a total investment of ~US$0.9 billion.
1
CD6
will create capacity to maintain production of >305 Mtpa (100 per cent basis)
from Q4 FY2028 through a period of planned major CD renewals beginning
in FY2029. It will also improve our ore blending and screening capability
at the port.
Our position in potash
Potash is a fertiliser and can enable more efficient and sustainable
farming. We believe potash is going to be increasingly required for
agricultural use as a growing population seeks more and better food
production from constrained farmable land.
We are developing what we expect will be a best-in-class new potash
mine in Canada capable of generating strong cash flow through the cycle.
Jansen has the potential to deliver long-term value for shareholders, local
communities and First Nations, and positions BHP to be one of the leaders
in the global potash industry.
For more information refer to OFR 6.4
Creating and accelerating longer-term options
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.
Investments in FY2025 included technologies covering ore
characterisation, industrial robotics and physical artificial intelligence
systems, subsurface mapping and ammonia cracking for maritime
decarbonisation. Further investments were made in Boston Metal and
Electra, portfolio companies supporting our electrochemical reduction
pathway. Through our investments, we aim to accelerate the development
of technology – such as early-stage leaching technologies – to benefit not
only our business and value chain, but that of our broader industry.
4 Positioning for growth
Think & Act Differently
Think & Act Differently is BHP’s team set up to find and accelerate
leading mining technology solutions to support our ambitions to
deliver commodities the world needs in new ways.
In FY2025, successful pilots were conducted for Hydrofloat and Jameson
cells, both flotation technologies that could help us recover more metal
from the ore we process. A flame emissions probe, which is a slag
temperature and characteristic monitoring tool, was developed, seeking
to improve control and enhance safety in the Olympic Dam smelter.
We also trialled automated drill rigs to improve efficiency.
Collaboration with vendors also led to advancements in 3D seismic
and muon tomography technologies for better ore body knowledge.
Through our open innovation program, we supported 40 innovators
in FY2025 providing them with mentoring, funding, data and samples
to help develop options for the future.
Growth through exploration, focused on copper
Exploration
In FY2025, we continued to strengthen our exploration portfolio, focusing
primarily on copper opportunities. Our efforts spanned early-stage
greenfield exploration, strategic alliances and the expansion of our
Xplor accelerator program.
Global greenfield exploration: expanding our footprint
Our greenfield exploration is focused on the discovery of material new
copper resources. We advanced greenfield exploration activities in
Australia, Botswana, Canada, Chile, Norway, Peru, Serbia, Sweden
and the United States.
Copper South Australia: exploration and resource drilling
In August 2024, we announced an Inferred Mineral Resource at Oak Dam.
We also had promising brownfield exploration drilling results at OD Deeps,
which included intercepts exceeding 1.0 per cent copper. Exploration drilling
continued throughout FY2025, targeting resource expansion and further
delineation of high-grade zones.
BHP exploration regions
Copper
exploration
location
– Peru
– Chile
– Australia, South Australia
– Australia, Queensland
– Australia, Western Australia
– Serbia
– Norway
– United States
– Canada
– Botswana
BHP Xplor
Established in FY2023, BHP Xplor continues to serve as our accelerator
for early-stage critical mineral exploration. The program offers equity-free
grants of up to US$500,000 and access to BHP’s expert network, enabling
selected companies to rapidly test geological concepts and mature their
projects. To date, Xplor has supported 21 companies, with several
companies advancing to longer-term commercial arrangements –
demonstrating a clear pathway from concept to partnership.
In January 2025, we announced the largest and most geographically diverse
Xplor cohort to date, chosen based on the high quality of their exploration
programs, strong leadership and innovative approaches to leveraging
leading-edge technologies and data. The eight selected companies span
seven countries – the United States, Argentina, Canada, Saudi Arabia,
Serbia, Peru and Germany – and are primarily focused on copper.
Exploration expenditure
Our total metals exploration expenditure was US$396 million in FY2025,
a 13 per cent decrease on FY2024. Our resource assessment exploration
expenditure decreased by 25 per cent to US$250 million, while our
greenfield expenditure increased by 18 per cent to US$146 million.
For more information on our exploration expenditure refer to Additional
information 3 – Financial information by commodity.
1. Estimated capital expenditure is BHP equity share
12 BHP Annual Report 2025
Chief Financial Officer’s review
Dear Shareholders,
I am pleased to report on BHP’s FY2025
financial results.
We delivered another strong set of results
enabled by our great people, the disciplined
application of our strategy, world-class assets,
operational excellence and through financial
rigour underpinned by our Capital Allocation
Framework (CAF).
This enabled the Board to announce a final
dividend of 60 US cents per share. Together with
the dividend for the first half, the total dividends
to shareholders determined for the year will be
US$5.6 billion. Our approach aims to balance
investment in growth with shareholder returns
– as reflected in our payout ratio of 55 per cent
for FY2025.
Strong results
We can deliver a dividend of this scale
because of our resilient portfolio and disciplined
operational delivery, achieved amid a volatile
external environment.
We achieved an underlying EBITDA of
US$26 billion, with a 53 per cent margin.
We have averaged a margin of over 50 per cent
for the past 20 years, which is a testament to
our consistency and a sign of the resilience
and stability of BHP.
This year, we generated net operating cash flow
of US$18.7 billion. After an adjusted effective
tax rate including royalties of 44.6 per cent, our
underlying attributable profit was US$10.2 billion.
Our return on capital employed was strong at
20.6 per cent.
Strong performance in areas
we can control
We continue to perform well in the areas we
can control, with healthy volume growth and
disciplined cost management. We saw record
production volumes in iron ore and copper, and
increased our steelmaking coal production on
the prior financial year, excluding Blackwater
and Daunia which we divested in CY2024.
Importantly, we continued to be disciplined with
our costs. Escondida delivered an 18 per cent unit
cost reduction and WAIO remains the lowest-cost
major iron ore producer in the world. Across the
group, unit costs at our major assets were down
4.7 per cent year-on-year.
1
Value-adding investments and
resilient balance sheet
In FY2025, we invested US$9.8 billion in capital
and exploration expenditure. We also invested
US$2.1 billion to acquire a 50 per cent interest
in the Josemaria and Filo del Sol deposits and
form the Vicuña joint venture with Lundin Mining.
The Filo del Sol deposit is one of the largest
copper deposit discoveries in the last 30 years.
We are doubling down
on making sharper,
more dynamic capital
optimisation choices aimed
at ensuring maximum
value for every dollar
we spend.”
Capital and exploration expenditure guidance
remains unchanged in FY2026 and FY2027 at
approximately US$11 billion. The increase is
principally for investment in our strong pipeline
of attractive growth projects. We have sought
to optimise our capital profile over FY2028 to
FY2030 and reduced forecast capital spend by
US$1 billion per annum, to ~US$10 billion each
year on average over this period.
With net debt of US$12.9 billion, our balance
sheet remains strong. The resilience of our
portfolio, track record of stable operations
and robust financial performance has led
to our improved debt servicing capacity.
Accordingly, we are revising our net debt target
range to US$10 billion to US$20 billion (from
US$5 billion to US$15 billion). This will unlock
the power of our balance sheet for our pipeline of
projects we expect will deliver great value for our
shareholders, partners and other stakeholders
well into the future.
Disciplined approach – investing
for value
We maintain flexibility to adjust our capital
spending and phasing of projects to accommodate
market dynamics and cash flow generation.
We are doubling down on making sharper,
more dynamic capital optimisation choices
aimed at ensuring maximum value for every
dollar we spend. We have a number of levers
at our disposal to do this. These include the
sequencing of projects for improved value, lifting
our project capital efficiency and enhancing our
project excellence capabilities to unlock cash
flow and returns earlier.
We are also looking at strategic partnerships
that can bring complementary skills and help
manage risk. Additionally, we continue to
investigate opportunities to unlock capital from
our assets – which may hold greater value
for others – to recycle into higher-returning
opportunities at BHP.
Delivering value for all
stakeholders
When BHP succeeds, we create value for
all those around us.
In FY2025, we delivered $46.8 billion in
total global economic contribution, including
US$24.8 billion in payments to our suppliers.
Importantly, more than $3.2 billion in those
payments went to small, local and Indigenous
businesses in the communities where
we operate.
We also contributed US$10.4 billion in taxes
and royalty payments and our global adjusted
effective tax rate in FY2025 was 37.2 per cent.
Once royalties are included, our FY2025 rate
increases to 44.6 per cent.
We remain one of the largest taxpayers
in Australia, contributing US$6.8 billion
in FY2025. During the last decade, we paid
US$98.1 billion globally in taxes, royalties and
other payments to governments, including
US$78.1 billion in Australia.
These payments help governments build
schools, hospitals and roads and make
a positive contribution to the communities
in which we work and live.
Future is exciting
With our continued focus on operational
excellence, balance sheet strength and rigorous
capital discipline, I am confident that BHP is set
to continue to deliver value for our shareholders
well into the future.
Thank you.
Vandita Pant
Chief Financial Officer
1. Calculated on a copper equivalent production weighted average basis, based on FY2025 average realised prices for major assets including Escondida, Spence, Copper SA, WAIO and BMA.
13Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
5 Financial review
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
financial 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. The non-IFRS financial information is consistent with how
management reviews the financial performance of the Group with the Board
and the investment community. OFR 13 ‘Non-IFRS financial information’
includes our non-IFRS financial information and OFR 13.1 ‘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.
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
For information on our overall approach to executive remuneration,
including remuneration policies and remuneration outcomes refer
to Remuneration Report
Summary of financial measures
Year ended 30 June
US$M 2025 2024
Consolidated Income Statement (Financial Statements 1.1)
Revenue 51,262 55,658
Profit/(loss) after taxation 11,143 9,601
Profit/(loss) after taxation attributable to BHP shareholders 9,019 7,897
Dividends per ordinary share – paid during the period (US cents) 124.0 152.0
Dividends per ordinary share – determined in respect of the period (US cents) 110.0 146.0
Basic earnings/(loss) per ordinary share (US cents) 17 7.8 155.8
Consolidated Balance Sheet (Financial Statements 1.3)
Total assets 108,790 102,362
Net assets 52,218 49,120
Consolidated Cash Flow Statement (Financial Statements 1.4)
Net operating cash flows 18,692 20,665
Capital and exploration and evaluation expenditure 9,794 9,273
Other financial information (OFR 13)
Net debt 12,924 9,120
Underlying attributable profit 10,157 13,660
Underlying EBITDA 25,978 29,016
Underlying basic earnings per share (US cents) 200.2 269.5
Underlying return on capital employed (per cent) 20.6 27.2
Underlying attributable profit
1,3
US$ billion
Underlying EBITDA
2,3
US$ billion
Net operating cash flows
1
US$ billion
Underlying return on
capital employed
1,3
Per cent
FY2021 FY2022 FY2023 FY2024 FY2025
17.1
23.8
13.4
13.7
10.2
0
5
10
15
20
25
35.1
40.6
28.0
29.0
26.0
0
10
20
30
40
50
FY2021 FY2022 FY2023 FY2024 FY2025
27.2
32.2
18.7
20.7
18.7
0
7
14
21
28
35
FY2021 FY2022 FY2023 FY2024 FY2025
32.5
48.7
28.8
27.2
20.6
0
10
20
30
40
50
FY2021 FY2022 FY2023 FY2024 FY2025
1. Includes data for Continuing and Discontinued operations for the financial years being reported.
2. Excludes data from Discontinued operations for the financial years being reported.
3. For more information on non-IFRS financial information refer to OFR 13.
14 BHP Annual Report 2025
Reconciling our financial results to our key performance indicators
Profit Earnings Cash Returns
Measure Profit after
taxation
US$M
11,143
Profit after
taxation
US$M
11,143
Net operating
cash flows
US$M
18,692
Profit after
taxation
US$M
11,143
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
Tax effect of
exceptional items
Exceptional items
after tax attributable
to non-controlling
interests
Exceptional items
attributable to
BHP shareholders
Profit after taxation
attributable to
non-controlling
interests
1,234
(96)
–
1,138
(2,124)
Exceptional items
before taxation
Tax effect of
exceptional items
Depreciation
and amortisation
excluding
exceptional items
Impairments of
property, plant
and equipment,
financial assets and
intangibles excluding
exceptional items
Net finance
costs excluding
exceptional items
Taxation expense
excluding
exceptional items
1,234
(96)
5,540
198
653
7,306
Exceptional items
after taxation
Net finance costs excluding
exceptional items
Income tax expense on net
finance costs
Profit after taxation
excluding net finance costs
and exceptional items
Net assets at the beginning
of the period
Net debt at the beginning
of the period
Capital employed at the
beginning of the period
Net assets at the end
of the period
Net debt at the end
of the period
Capital employed at the
end of the period
Average capital employed
49,120
9,120
52,218
12,924
1,138
653
(224)
12 , 710
58,240
65,142
61,691
To reach
our KPIs
Underlying attributable profit 10,157 Underlying EBITDA 25,978 Net operating cash flows 18,692 Underlying return on
capital employed
20.6%
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
ac ro ss 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.
5.3 Financial results
The following table provides more information on the revenue and expenses of the Group in FY2025.
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Revenue
1
51,262 55,658 53,817
Other income 368 1,285 394
Expenses excluding net finance costs (32,319) (36,750) (31,873)
Profit/(loss) from equity accounted investments, related impairments and expenses 153 (2,656) 594
Profit from operations 19,464 17,537 22,932
Net finance costs (1,111) (1,489) (1,531)
Total taxation expense (7,210) (6,447) (7,077)
Profit after taxation 11,143 9,601 14,324
Attributable to non-controlling interests 2,124 1,704 1,403
Attributable to BHP shareholders 9,019 7,897 12,921
1. Includes the sale of third-party products.
Profit after taxation attributable to BHP shareholders of US$9.0 billion
includes an exceptional loss of US$1.1 billion (after tax) and compares
to US$7.9 billion in FY2024 which included an exceptional loss of
US$5.8 billion (after tax). The FY2025 exceptional loss comprises
US$0.9 billion (after tax) relating to Samarco dam failure impacts and
US$0.2 billion (after tax) costs associated with the transition of Western
Australia Nickel (WAN) into temporary suspension.
The FY2024 exceptional loss included US$3.8 billion (after tax) relating
to Samarco dam failure impacts, US$2.7 billion (after tax) impairment in
relation to WAN assets, partially offset by US$0.7 billion (after tax) gain
on divestment of the Blackwater and Daunia mines.
For more information on Exceptional items refer to Financial
Statements note 3 ‘Exceptional items’
15
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
5 Financial review continued
Revenue of US$51.3 billion decreased by US$4.4 billion, or 8 per cent from
FY2024. This decrease was mainly due to lower average realised prices
for iron ore and coal combined with the transition of WAN into temporary
suspension in December 2024 and the divestment of Blackwater and Daunia
in April 2024. The decrease was partially offset by higher average realised
prices for copper combined with higher copper sales volumes.
Higher sales volumes were driven by record copper production primarily
due to Escondida higher concentrator feed grade and throughput due to
operational improvements, mine sequencing and productive movement
and record production at Spence from improved operating performance.
Although WAIO also achieved a production record, sales volumes were
lower due to increased weather impacts from Tropical Cyclone Zelia and
Tropical Storm Sean.
For information on our average realised prices and
production of our commodities refer to OFR 12
Other income of US$0.4 billion decreased by US$0.9 billion, or 71 per cent
from FY2024 largely reflecting the exceptional US$0.9 billion (before tax)
gain on divestment of Blackwater and Daunia recognised in FY2024.
Total expenses excluding net finance costs of US$32.3 billion decreased
by US$4.4 billion, or 12 per cent from FY2024. This primarily reflected the
prior period impact of the US$3.8 billion (before tax) impairment of WAN
assets combined with lower government royalties of US$1.0 billion in the
current year due to lower realised iron ore and coal prices. Raw materials
and consumables costs decreased by US$0.6 billion, mainly due to the
transition of WAN into temporary suspension in December 2024 and the
divestment of Blackwater and Daunia in April 2024. These were partially
offset by net inventory movements of US$0.7 billion across the Group
and higher wages and salaries of US$0.4 billion primarily due to inflation.
Profit from equity accounted investments, related impairments and expenses
of US$0.2 billion increased by US$2.8 billion from a loss of US$2.7 billion in
FY2024 predominantly due to Samarco dam failure impacts in the prior period.
For more information on the total impact of the Samarco dam
failure provision and impairment charges connected with equity
accounted investments refer to Financial Statements note
3 ‘Exceptional items’ and Financial Statements note 13
‘Impairment of non-current assets’ respectively
Net finance costs of US$1.1 billion decreased by US$0.4 billion, or 25 per cent,
from FY2024 primarily reflecting the impact of lower interest rates on the
unwind of discounting on provisions combined with higher capitalised
interest, mainly in relation to Potash projects.
For more information on net finance costs refer to
Financial Statements note 23 ‘Net finance costs’
Total taxation expense of US$7.2 billion increased by US$0.8 billion,
or 12 per cent from FY2024 primarily due to the non-recurrence of a
tax benefit of US$1.1 billion in relation to the impairment of WAN assets
recognised in the prior period, the impact of a full year of higher Chilean
mining taxes (effective 1 January 2024) and also higher tax in line with
higher Chilean profits.
For more information on income tax expense refer to
Financial Statements note 6 ‘Income tax expense’
Principal factors that affect Underlying EBITDA
The following table and commentary describe the impact of the principal factors
1
that affected Underlying EBITDA for FY2025 compared with FY2024.
US$M
Year ended 30 June 2024 29,016
Net price impact:
Change in sales prices (4,580) Lower average realised prices for iron ore and coal, partially offset by higher average realised prices for copper.
Price-linked costs 875 Lower iron ore and coal royalties in line with lower prices.
(3,705)
Change in volumes 2,215 Record copper production primarily due to Escondida higher concentrator feed grade and throughput due to operational
improvements, mine sequencing and productive movement and record production at Spence from improved operating
performance, partially offset by Copper SA slightly lower production volumes due to a weather-related power outage in
Q2 FY2025. Copper SA sales volumes were slightly higher due to inventory drawdown.
Record WAIO production despite sales volumes being lower due to increased weather impacts from Tropical
Cyclone Zelia and Tropical Storm Sean, and planned Rail Technology Programme tie-ins.
BMA strong performance, supported by improved truck productivity and inventory drawdown, helped mitigate wet
weather and geotechnical challenges.
Change in controllable cash costs:
Operating cash costs (893) Higher costs at Escondida driven by one-off labour-related costs combined with higher operational and
maintenance contractor costs to support higher material movement. Spence and Copper SA were higher due
to finished goods inventory drawdowns.
WAIO higher costs reflected additional planned shutdowns and to support higher material movement, partly offset
by favourable inventory movements.
BMA and NSWEC were higher due to inventory drawdowns to mitigate the impacts of wet weather, geotechnical
conditions, and reduced truck availability, respectively.
Exploration and
business development
(60)
(953)
Change in other costs:
Exchange rates 354 Impact of movements in the Australian dollar and Chilean peso against the US dollar.
Inflation on costs (538) Impact of inflation on the Group’s cost base.
Fuel, energy, and consumable
price movements
148 Predominantly lower diesel prices, partially offset by higher electricity and explosives prices.
Non-cash 392 Higher stripping capitalisation primarily at Escondida reflecting phase of mine plan.
One-off items
356
Change in other:
Asset sales (40)
Ceased and sold operations (722) Contribution from the Blackwater and Daunia mines prior to divestment in FY2024 and the transition of WAN into
temporary suspension in December 2024.
Other (189) Includes higher rehabilitation costs reflecting increase in provision for certain contaminated sites.
Year ended 30 June 2025 25,978
1. For information on the method of calculation of the principal factors that affect Underlying EBITDA refer to OFR 13.2.
16 BHP Annual Report 2025
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.
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Net operating cash flows 18,692 20,665 18,701
Net investing cash flows (13,350) (8,762) (13,065)
Net financing cash flows (5,971) (11,669) (10,315)
Net (decrease)/increase in cash and cash equivalents (629) 234 (4,679)
Net operating cash inflows of US$18.7 billion decreased by US$2.0 billion. This is primarily due to lower average realised prices, inflationary impacts
on the Group’s cost base, and inventory movements, partially offset by record copper production and favourable foreign exchange movements.
Net investing cash outflows of US$13.4 billion increased by US$4.6 billion. This increase primarily reflects the US$2.1 billion to acquire a 50 per cent
share in the Vicuña joint venture, US$1.1 billion of higher payments made in relation to Samarco, including settlement obligations, higher capital
expenditure of US$0.6 billion, combined with non-recurrence of US$0.8 billion proceeds related to the divestment of Blackwater and Daunia received
in FY2024.
For more information on the Samarco ratification agreement and the acquisition of Filo Corp refer to Financial Statements note 4
‘Significant events – Samarco dam failure’ and note 29 ‘Investments accounted for using the equity method’ respectively
Net financing cash outflows of US$6.0 billion decreased by US$5.7 billion, reflecting lower repayments of interest bearing liabilities of US$5.7 billion
mainly from the non-recurrence of the repayment of the OZL acquisition facility of US$5.0 billion in FY2024 and lower bond repayments in the current
period. Lower dividends paid to BHP shareholders of US$1.3 billion were largely offset by lower proceeds from interest bearing liabilities of US$1.0 billion.
For more information refer to Financial Statements note 21 ‘Net debt’
Underlying return on capital employed (ROCE) of 20.6 per cent decreased by 6.6 percentage points (FY2024: 1.6 percentage point decrease) primarily
due to the decrease in profit after taxation excluding net finance costs and exceptional items of US$3.3 billion combined with higher average capital employed
reflecting the impact of the acquisition of a 50 per cent share in the Vicuña joint venture in FY2025 and the increase to the Samarco provision in FY2024.
For more information on ROCE refer to OFR 13
5.4 Debt and sources of liquidity
Our policies on debt and liquidity management have the following objectives:
– a strong balance sheet through the cycle
– diversification of funding sources
– maintain borrowings and excess cash predominantly in US dollars
Interest bearing liabilities, net debt and gearing
At the end of FY2025, Interest bearing liabilities were US$24.5 billion (FY2024: US$20.7 billion) and Cash and cash equivalents were US$11.9 billion
(FY2024: US$12.5 billion). This resulted in Net debt of US$12.9 billion, which represented an increase of US$3.8 billion compared with the Net debt
position at 30 June 2024. The increase is primarily due to US$18.7 billion operating cash flows generated being more than offset by US$9.8 billion of
capital and exploration expenditure, US$2.1 billion acquisition of a 50 per cent share in the Vicuña joint venture, US$1.8 billion of Samarco settlement
obligation payments and dividend payments of US$8.3 billion. Gearing, which is the ratio of Net debt to Net debt plus Net assets, was 19.8 per cent at
30 June 2025, compared with 15.7 per cent at 30 June 2024.
For more information on Net debt and gearing refer to Financial Statements note 21 ‘Net debt’ and OFR 13
During FY2025, gross debt increased by US$3.8 billion to US$24.5 billion as at 30 June 2025. The increase reflects the issuance of US$3.0 billion
US bonds in February 2025 and entering a US$1.0 billion three-year loan in December 2024.
At the subsidiary level, Escondida repaid US$40 million of debt and received proceeds from debt of US$150 million in the period.
17Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Funding sources
In February 2025, the Group issued three tranches of USD bonds totalling US$3.0 billion and comprising US$1.0 billion 5.00 per cent bonds due CY2030,
US$750 million 5.125 per cent bonds due CY2032 and US$1.25 billion 5.30 per cent bonds due CY2035. 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 December 2024, the Group entered a US$1.0 billion three-year term loan. The borrower is BHP Billiton Finance Limited, a wholly-owned finance
subsidiary of BHP Group Limited, and is fully and unconditionally guaranteed by BHP Group Limited.
Our Group-level borrowing facilities are not subject to financial covenants. Certain specific financing facilities in relation to specific assets are the subject
of financial covenants that vary from facility to facility, but this would be considered normal for such facilities.
In addition to the Group’s uncommitted debt issuance programs, we hold the following committed standby facility:
Facility
available
2025
US$M
Drawn
2025
US$M
Undrawn
2025
US$M
Facility
available
2024
US$M
Drawn
2024
US$M
Undrawn
2024
US$M
Revolving credit facility
1
5,500 – 5,500 5,500 – 5,500
Total financing facility 5,500 – 5,500 5,500 – 5,500
1. The facility was refinanced on 10 July 2025, and has a five-year maturity, with two one-year extension options. The Group’s committed US$5.5 billion revolving credit facility operates as
a back-stop to the Group’s uncommitted commercial paper program. The combined amount drawn under the facility or as commercial paper will not exceed US$5.5 billion. As at 30 June
2025, US$ nil commercial paper was drawn (FY2024: US$ nil), therefore US$5.5 billion of committed facility was available to use (FY2024: US$5.5 billion). A commitment fee is payable
on the undrawn balance and interest is payable on any drawn balance comprising a reference rate plus a margin. The agreed margins are typical for a credit facility extended to a company
with the Group’s credit rating.
For more information on the maturity profile of our debt obligations and details of our standby and support agreements
refer to Financial Statements note 24 ‘Financial risk management’
Information in relation to our material off-balance sheet arrangements, principally contingent liabilities, commitments for capital
expenditure and commitments under leases at 30 June 2025 is provided in Financial Statements note 11 ‘Property, plant and
equipment’, Financial Statements note 22 ‘Leases’ and Financial Statements note 32 ‘Contingent liabilities’, respectively
In our opinion, working capital is sufficient for our present requirements. The Group’s Moody’s credit rating has remained at A1/P-1 outlook stable
(long-term/short-term). The Group’s Fitch credit rating has remained at A/F1 outlook stable (long-term/short-term). Credit ratings are forward-looking
opinions on credit risk. Moody’s and Fitch’s credit ratings express the opinion of each agency on the ability and willingness of BHP to meet its financial
obligations in full and on time. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or
withdrawal at any time by an assigning rating agency. Any credit rating should be evaluated independently of any other information.
The following table expands on the net debt, to provide more information on the cash and non-cash movements in FY2025.
Year ended 30 June
2025
US$M
2024
US$M
Net debt at the beginning of the period (9,120) (11,166)
Net operating cash flows 18,692 20,665
Net investing cash flows (13,350) (8,762)
Net financing cash flows (5,971) (11,669)
Net (decrease)/increase in cash and cash equivalents (629) 234
Carrying value of interest bearing liability net (proceeds)/repayments (2,454) 2,236
Carrying value of debt related instruments settlements 147 321
Carrying value of cash management related instruments proceeds (195) (361)
Fair value change on hedged loans
1
(263) 214
Fair value change on hedged derivatives
1
290 (188)
Foreign currency exchange rate changes on cash and cash equivalents 24 (159)
Lease additions (excluding leases associated with index-linked freight contracts) (547) (429)
Divestment of subsidiaries and operations − 60
Other (177) 118
Non-cash movements (673) (384)
Net debt at the end of the period (12,924) (9,120)
1. The Group hedges against the volatility in both exchange and interest rates on debt, and also exchange rates on cash, with associated movements in derivatives reported in Other financial
assets/liabilities as effective hedged derivatives (cross currency and interest rate swaps), in accordance with accounting standards. For more information refer to Financial Statements
note 24 ‘Financial risk management’.
Dividends
Our dividend policy provides for a minimum 50 per cent payout of Underlying attributable profit at every reporting period. The minimum dividend payment
for the second half of FY2025 was US$0.50 per share. The Board determined to pay an additional amount of US$0.10 per share, taking the final dividend
to US$0.60 per share (US$3.0 billion). In total, cash dividends of US$5.6 billion (US$1.10 per share) have been determined for FY2025.
5 Financial review continued
18 BHP Annual Report 2025
6 Our assets
6.1 Copper
Escondida
Overview
Escondida (BHP ownership: 57.5 per cent), located in the Atacama
Desert in northern Chile, 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, as well
as two leaching operations.
Key developments in FY2025
Escondida achieved its highest production in 17 years, increasing
16 per cent year-on-year due to record concentrator throughput,
improved recoveries, higher concentrator feed grade of 1.02 per cent
(FY2024: 0.88 per cent) and the Full SaL leaching project, which achieved
first production in Q4 FY2025. Escondida Norte pit achieved the first full
autonomous haulage in FY2025 with 33 trucks operating at the end of
June 2025.
Escondida successfully completed negotiations for a new collective
agreement with the Union N°1 of Operators and Maintainers, effective
for 36 months from 2 August 2024; the associated industrial action prior to
the finalisation of negotiations did not have a material impact on production
during Q1 as a result of mitigating actions taken by management, including
mine resequencing and prioritisation of ore movement. Escondida also
completed negotiations with the Union N°3 of Operators and Maintainers,
effective for 36 months from 20 December 2024.
Full SaL, a BHP-designed leaching technology, delivered first production
during FY2025. We expect it to produce ~410 kt in copper cathodes at
Escondida over a 10-year period through improved recoveries and shorter
leach cycle times.
In November 2024, we outlined our attractive Escondida Growth Program
at our Chilean copper site tour, with low capital intensity options in both
concentrator and leaching pathways. Since then, we have identified several
positive initiatives to improve the capital efficiency, production profile and
value of the Escondida growth program. Near term these include several
low capital intensity initiatives that can be executed immediately across
the Laguna Seca concentrators; while we also plan to extend the life of the
Los Colorados concentrator by ~6–12 months and, in parallel, optimise the
demolition process to allow earlier access to high grade PL2 zone ore to
offset the impact of this extension.
Our permitting strategy has progressed as expected and the first permit
submitted in March 2025 will enable critical works to achieve our optimised
production plan. Permitting for the new concentrator is under preparation
and will be submitted by the end of FY2026.
We continue to study various leaching technologies, with each at different
stages of evaluation.
CHILE
BOLIVIA
ARGENTINA
PERU
Iquique
Pacific
Ocean
Toc opilla
Antofagasta
Mejillones
Calama
Pica
Spence
Minera Escondida
Cerro
Colorado
CHILE
BOLIVIA
ARGENTINA
PERU
Iquique
Pacific
Ocean
Toc opilla
Antofagasta
Mejillones
Calama
Pica
Spence
Minera Escondida
Cerro
Colorado
Chile
Bolivia
Existing operations
Township
Escondida
and
Pampa Norte
Production for FY2026 is expected to be between 1,150 and 1,250 kt.
Concentrator feed grade for FY2026 is expected to be lower than FY2025
at approximately 0.85 per cent.
Pampa Norte
Overview
Pampa Norte (BHP ownership: 100 per cent) consists of two assets
in the Atacama Desert in northern Chile – Spence and Cerro Colorado.
Both are open-cut mines. Spence produces copper cathodes and copper
concentrate, with by-products including gold, silver and molybdenum.
Cerro Colorado produced copper cathodes up until the asset entered
temporary care and maintenance in December 2023.
Key developments in FY2025
Spence copper production increased 5 per cent to a record 268 kt due
to improved stacked feed grade. Concentrator throughput, feed grade
and recovery were broadly in line with the prior period.
Production at Spence for FY2026 is expected to be between 230 and
250 kt due to expected lower concentrator feed grades and increased
volume of transitional ore processed.
Cerro Colorado transitioned to temporary care and maintenance in
December 2023 and we are continuing to study the application of BHP’s
SaL 1 leaching technology to potentially restart of operations in the future.
Copper South Australia
Overview
Copper South Australia (BHP ownership: 100 per cent) comprises the
Olympic Dam, Carrapateena and Prominent Hill underground mining
and surface operations, as well as the Oak Dam exploration project, and
is located within South Australia’s Gawler Craton, one of the world’s most
significant copper, gold, silver and uranium oxide basins.
Carrapateena and Prominent Hill use underground mining and surface
grinding and concentrating methods to produce copper concentrate, which
also contains gold and silver by-products. Located nearby is the Olympic
Dam mine and integrated crushing, grinding, concentrating, smelting and
refining operations which produces copper cathode, gold and silver bullion,
and uranium oxide concentrate.
The Oak Dam Project is a greenfield copper, gold, silver, and uranium
deposit located in close proximity to the Carrapateena and Olympic
Dam operations.
The commodities produced by Copper South Australia are transported
by road, rail and plane to our domestic customers and exported via the
Adelaide and Whyalla ports to our global customers.
Prominent Hill
Olympic Dam
Oak Dam
Carrapateena
~180km
~180km
Existing
operations
Project
Transmission
line
South Australia
Copper South
Australia
19Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
6 Our assets continued
Punta
Lobitos
Huarmey
Lima
Huari
Huaraz
San Marcos
Antamina
mine
Huari
Province,
Ancash,
Peru
Pipeline
Port
Existing operations
Township
Antamina
Phoenix
Tucson
USA
MEXICO
Oak Flat
Resolution Copper
Mica Mountain
Mt Graham
Turkey Creek
East Clear Creek
Tangle Creek
Cave Creek
Appleton Ranch
Dripping Springs
Kitt Peak
Mt Lemmon
Existing operations
Arizona,
USA
Highway
Township
Resolution
Copper
Key developments in FY2025
Copper South Australia achieved production of 316 kilotonnes (kt) of
payable copper (322 kt FY2024), gold production of 361 thousand troy
ounces (ktoz) (370 ktoz FY2024) and 3.2 kt of uranium (3.6 kt FY2024).
Production was impacted by a significant two-week weather-related
power outage in Q2 FY2025. Safe and stable ramp up after the outage
was successfully achieved, delivering record H2 copper production
and record full-year concentrate smelted, supported by 12.0 kt copper
contained (12.6 kt FY2024) of concentrate transfers from Prominent Hill
and Carrapateena. Carrapateena achieved higher productivity from the
sub-level cave, resulting in strong annual copper production and record
gold production of 99 ktoz (91 ktoz FY2024). Hydrofloat technology
was commissioned in Q4 and is a key enabler to uplifting processing
throughput rates up to 7 Mtpa of mined ore.
At Olympic Dam, an investment of ~US$200 million in underground
development was approved for the Southern Mine Area, with this new
decline expected to unlock up to 2.5 Mtpa of additional vertical capacity,
with completion expected in FY2028. The Prominent Hill Operations
Expansion (PHOX) project reached a key milestone in Q4, with the
completion of the Wira Shaft sink. The project is expected to extend
the mine life to at least 2040 and is on track to come online in the
second half of FY2027.
Copper South Australia has entered contracts with Aurizon to deliver an
integrated rail, road, and port logistics solution, transitioning the transport
of copper concentrate and cathode from Olympic Dam, Carrapateena,
and Prominent Hill to rail between Pimba and Port Adelaide. The initiative
is expected to remove over 11,000 truck movements annually – reducing
road safety risks and enable substantial long-term value to be unlocked
for Copper South Australia.
At Oak Dam, exploration activities advanced as we continued to progress
government, heritage and regulatory approvals for the commencement of
twin underground access declines. A significant milestone was achieved
with the signing of the Oak Dam Retention Lease Project Indigenous
Land Use Agreement for Advanced Exploration with the Kokatha people.
Production at Copper South Australia for FY2026 is expected to be
between 310 and 340 kt, driven primarily by improved operational stability
at Olympic Dam, following the weather-related power outage in FY2025.
Carajás
On 15 August 2025, the Group entered into a binding agreement for the
divestment of the Carajás assets in Brazil to a wholly-owned subsidiary of
CoreX Holding for total consideration of up to US$465 million. Subject to
the satisfaction of customary closing conditions (including regulatory
approvals), the transaction is expected to complete in early CY2026.
Non-operated minerals joint ventures
Antamina
Overview
Antamina (BHP ownership: 33.75 per cent), located in north central Peru,
is a large, low-cost, open-cut copper and zinc mine with by-products
including molybdenum and silver. Antamina is operated independently
by Compañía Minera Antamina S.A.
Key developments in FY2025
At Antamina, copper production decreased 17 per cent to 119 kt reflecting
lower concentrator throughput and a decline in feed grade. Zinc production
was 5 per cent higher at 109 kt, as a result of higher zinc feed grade.
For FY2026, Antamina copper production is expected to increase to between
120 and 140 kt, and zinc production is expected to be between 90 and 110 kt.
Resolution Copper
Overview
Resolution Copper (BHP ownership: 45 per cent), located in the US state of
Arizona, is one of the largest undeveloped copper projects in the world and
has the potential to become one of the largest copper producers in North
America. Resolution Copper is operated by Rio Tinto (55 per cent ownership).
Key developments in FY2025
In FY2025, Resolution Copper progressed engineering and permitting
activities. In June 2025, the US Forest Service republished the Final
Environmental Impact Statement (FEIS), a prerequisite for the land
exchange (LEX) with the US Government, to secure land critical for the
project. The FEIS and LEX remain under ongoing litigation. Resolution
Copper remains committed to engaging with Native American Tribes and
other stakeholders to create shared value and long-term benefits.
20 BHP Annual Report 2025
Maricunga
Veladero
El Indio
EL INDIO
BELT
MARICUNGA
BELT
ARGENTINA
CHILE
Copiapó
Josemaria
Filo del Sol
Vicuña JV
Caserones
Candelaria
Caldera
Vallenar
La Serena
Operating mines
Vicuña JV deposits
Chile
Argentina
Township
Road infrastructure
Past-producing
mines
Vicuña
6.2 Iron ore
Western Australia Iron Ore
Overview
Western Australia Iron Ore (WAIO) (BHP ownership: 85 per cent 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); 65 per
cent for POSMAC, which sells its ore to Mt Goldsworthy JV) 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 ore 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 operations (which has our beneficiation
plant), Yandi, 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 FY2025
WAIO delivered another full-year record production of 257 million tonnes
(Mt) (255 Mt FY2024) or 290 Mt (287 Mt FY2024) on a 100 per cent
basis, and record shipments. This reflects supply chain excellence with
record productive movement, in addition to improved rail cycle times,
and enhanced car dumper and ship loader performance unlocked by the
Port Debottlenecking Project 1 (PDP1). South Flank exceeded nameplate
capacity of 80 million tonnes per annum (Mtpa) (100 per cent basis) in its
first year following ramp up, contributing to record Ore for Rail volumes
from the Central Pilbara Hub (South Flank and Mining Area C).
The record production was delivered despite the impact of Tropical
Cyclone Zelia and Tropical Storm Sean, and the planned increase in
tie-in activity of the multi-year Rail Technology Programme (RTP1).
Marble Bar
Orebody 18
Newman
Newman
East
Yandi
Mining Area C
South Flank
Newman West
Jimblebar
Port Hedland –
Newman Rail Line
Goldsworthy
Rail Line
Chichester
Deviation
Finucane Island
Karratha
Great
Northern
Highway
Yarrie
Goldsworthy
South Hedland
Karijini
National
Park
Nelson Point
Port Hedland
Rail
Western
Australia
Existing
operations
Non-operational
mines
Township
Port
Western Australia
Iron Ore
In August 2025, BHP approved the commissioning of a sixth car dumper
(CD6) and related infrastructure at Port Hedland for a total investment
of ~US$0.9 billion.
1
CD6 will create capacity to maintain production
of >305 Mtpa (100 per cent basis) from Q4 FY2028 through a period
of planned major car dumper renewals beginning FY2029. It will also
improve our ore blending and screening capability at the port.
In FY2025, WAIO achieved another record spend with Traditional Owners
and Indigenous businesses representing a 14 per cent increase on the
previous year to over A$500 million, of which more than A$300 million was
spent with 67 Traditional Owner businesses.
Production for FY2026 is expected to be between 251 and 262 Mt (284 and
296 Mt on a 100 per cent basis), incorporating the planned rebuild of Car
Dumper 3 in the first half of FY2026 and the ongoing tie-in activities for RTP1.
Vicuña
Overview
Vicuña (BHP ownership: 50 per cent) is advancing the Josemaria and
Filo del Sol deposits located along the border of San Juan Province,
Argentina and the Atacama region of Chile. Vicuña is independently
operated by Vicuña Corp.
Key developments in FY2025
During FY2025, BHP and Lundin Mining completed the acquisition
of Filo Corp., a Toronto Stock Exchange-listed company that owned
100 per cent of the Filo del Sol deposit. BHP and Lundin Mining have
also formed the Canadian-incorporated joint venture company, Vicuña Corp.
to hold the Josemaria and the Filo del Sol copper deposits. BHP Canada and
Lundin Mining each hold a 50 per cent interest in the Vicuña joint venture.
Prior to completion of the transaction, Lundin Mining owned 100 per cent of
the Josemaria deposit. At completion, BHP Canada acquired a 50 per cent
interest in the Josemaria copper deposit from Lundin Mining. BHP Canada
and Lundin Mining then contributed their respective 50 per cent interests
in Filo Corp. and the Josemaria deposit into the Joint Venture. As part of
the transaction, BHP paid a cash payment to Lundin Mining for its effective
50 per cent interest in the Josemaria deposit.
This is the first year BHP has included the Josemaria and Filo del Sol
deposits in the Annual Report. An integrated technical report for the
combined project is expected in Q1 CY2026. Vicuña has until July 2026 to
submit its Inventive Regime for Large Investments (RIGI) application which,
if approved, is expected to be beneficial to the economics of the project.
1. Estimated capital expenditure is BHP equity share’
21Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
6 Our assets continued
Belo
Horizonte
(Main offices)
Nova Era –
Antônio Dias
(Guilman-Amorim
hydroelectric plant)
Mining Lease
Muniz Freire
(Muniz Freire
hydroelectric
plant)
Mariana –
Ouro Preto
(Germano
operational unit)
Anchieta
(Operational
unit and ocean
terminal at
Ponta Uba)
Vitória
(Sales office)
Minas Gerais,
Espírito Santo,
Brazil
Existing
operations
1st pipeline
2nd pipeline
3rd pipeline
Pipeline 2 operational;
pipelines 1 and 3
non-operational
Township
Samarco
Non-operated joint venture
Samarco
Overview
Samarco (BHP ownership: 50 per cent) comprises an open-cut mine and
three concentrators located in the Brazilian state of Minas Gerais, and four
pellet plants and a port located in Anchieta in the state of Espírito Santo.
Three 400-kilometre pipelines connect the mine site to the pelletising
facilities. Samarco is operated independently by Samarco Mineração
S.A. Samarco’s main product is iron ore pellets, which are independently
marketed by Samarco and sold to customers around the world.
Samarco’s operations were suspended in November 2015 after the
Fundão dam failure. Since resuming operations in December 2020,
Samarco has adopted enhanced tailings management practices, enabling
operations without the use of a conventional tailings dam. Samarco has
pursued a safe and sustainable gradual restart of operations through
three phases. Two of these phases have been successfully completed,
and in May 2025 Samarco achieved full phase two ramp up (latent
pelletising plant and second concentrator), reaching 60 per cent of its
total 26 Mtpa (100 per cent basis) production capacity. The third and final
phase, still subject to investment decision, would see operations achieving
100 per cent by FY2029.
Key developments in FY2025
Samarco increased iron ore pellets and ore fines production in FY2025
by 34 per cent to 6.3Mt (BHP share) following the ramp up of the second
concentrator. FY2026 production is expected to increase to between 7.0
and 7.5 Mt with the second concentrator now online, somewhat offset by
planned maintenance expected during the financial year.
Samarco has been progressively decommissioning its upstream
tailings dam structures in accordance with Brazilian legislation.
Decommissioning works for the smaller of the two tailings dams, the
Germano Pit dam, were completed during FY2023 and formally approved
by state authorities in FY2024. The progressive decommissioning of
the remaining upstream tailings dam structure, the Germano Main dam,
is on track for completion by FY2029. These structures have been
certified as stable by independent third parties and are compliant with
local stability and monitoring requirements. In addition, Samarco is now
fully compliant with the Global Industry Standards on Tailings Management
(GISTM) requirements.
Samarco is continuing broader studies to review solutions to operate
without tailings dams beyond FY2030.
For more information on the Fundão dam failure and the response
refer to OFR 10
6.3 Coal
BHP Mitsubishi Alliance
Overview
BHP Mitsubishi Alliance (BMA) (BHP ownership: 50 per cent) operates
five steelmaking coal mines – Goonyella Riverside, Broadmeadow,
Peak Downs, Saraji and Caval Ridge in the Bowen Basin, Queensland.
BMA’s mines are open cut, except for the Broadmeadow underground
longwall operation. BMA has access to infrastructure, including a modern,
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 as raw components to meet required quality specifications then
washed at our processing plants on site at Goonyella Riverside (which
processes coal extracted from Broadmeadow underground, as well as
the Goonyella Riverside open cut), Saraji, Peak Downs and Caval Ridge
Mines. The product is then transported via rail to Hay Point Coal Terminal
where further blending can take place depending on both customer and
operational requirements.
Key developments in FY2025
BMA production increased 5 per cent (excluding the contribution of
Blackwater and Daunia in FY2024), and raw coal inventory levels
increased 12 per cent. The strong performance was underpinned by
improved truck productivity and led to increased production across all
open-cut mines. Our focus on rebuilding raw coal inventory enabled us to
stabilise operating performance across the asset and increase production
despite the geotechnical challenges at Broadmeadow and a 36 per cent
year-on-year increase in rainfall.
Collinsville
Mackay
Bowen
BMA Hay Point
Coal Terminal
Peak Downs
Dysart
Saraji
Moranbah
Broadmeadow
Goonyella
Riverside
Caval
Ridge
Queensland,
Australia
Rail
BMA Terminal
Existing
operations
Township
BHP Mitsubishi
Alliance
In July 2024, the Barada Barna Aboriginal Corporation (BBAC), on behalf
of the Barada Barna people, entered into a project-wide Native Title
Agreement with BMA for its operations in the Bowen Basin, including
Broadmeadow, Caval Ridge, Goonyella Riverside, Peak Downs, and Saraji
mines. This Agreement sets a new path forward in the relationship between
BMA and the Barada Barna people and will provide intergenerational
benefit to the Traditional Owners of the land where BMA operates.
22 BHP Annual Report 2025
Production for FY2026 is expected to increase to between 18 and 20 Mt
(36 and 40 Mt on a 100 per cent basis), weighted to the second half. We
expect the inventory rebuild to continue into CY2027.
New South Wales Energy Coal
Overview
New South Wales Energy Coal (NSWEC) (BHP ownership: 100 per cent)
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.
In FY2022, we announced we would retain NSWEC in our portfolio, seek the
relevant approvals to continue mining beyond the consent that was due to
expire at the end of FY2026 and proceed with a managed process to cease
mining at the asset by the end of FY2030. Continuation of mining to the end
of FY2030 is intended to provide the time to work with our people and the
local community on an equitable change and transition approach as well
as the time needed to deal with land and tenure BHP will no longer require.
It also allows time to plan and execute the necessary works to deliver
a positive legacy from BHP mining in the Hunter Valley, which includes
balancing business, community and regulatory needs and expectations.
Key developments in FY2025
NSWEC FY2025 production of 15.04 Mt exceeded the top end of the
external guidance range of 13–15Mt, assisted by achieving record
annual feed volumes through the coal handling preparation plant.
FY2025 production decreased slightly from the prior year as a result of
increased wet weather impacting truck productivity, as well as a higher
proportion of washed coal and reduced truck availability in Q1. This was
partially offset by a drawdown of inventory.
In FY2025, BHP received approval from the New South Wales Government to
extend mining activities at Mt Arthur Coal for an additional four years, from July
Newcastle
Maitland
Singleton
Cessnock
Quirindi
Gunnedah
Tamworth
Mt Arthur
Muswellbrook
NSW,
Australia
Existing
operations
Port
Rail
Township
New South
Wales Energy
Coal
2026 to June 2030. BHP has committed to a A$30 million community fund to
help support the Upper Hunter prepare for 2030 and beyond. The fund will be
delivered in partnership with the community through a shared decision-making
model and will prioritise job creation, industry diversification and economic
empowerment. BHP has also entered into an agreement with renewable
energy and infrastructure company ACCIONA Energía to explore the potential
development of a pumped hydro energy storage project, which would be
located in part of the Mt Arthur Coal operation.
Production at NSWEC for FY2026 is expected to be between 14 and 16 Mt.
6.4 Potash
Jansen potash project
Overview
The Jansen potash project (BHP ownership: 100 per cent) is located
about 140 kilometres east of Saskatoon, Canada.
Jansen’s large resource provides the opportunity to develop the project in
stages, with Jansen Stage 1 (JS1) expected to produce approximately 4.15 Mt
of potash per annum on completion and first production is estimated in mid
CY2027. Approval of the 4.36 Mtpa Jansen Stage 2 (JS2) has increased
planned production to approximately 8.5 Mtpa, with further brownfield
expansions up to 8 Mtpa (approximately 4 Mtpa per stage).
BHP holds mineral leases covering around 9,600 square kilometres
in the Saskatchewan potash basin.
Key developments in FY2025
JS1 was 68 per cent complete as at 30 June 2025. During FY2025, we
safely completed the underground lateral connection between our two
vertical shafts. On surface, we progressed structural, mechanical and
electrical activities for the mill areas, and received the first delivery of
railcars at site.
We estimate capital expenditure for JS1 to increase from US$5.7 billion to
be in the range of US$7.0 billion–US$7.4 billion (including contingencies)
and first production to revert to the original schedule of mid-CY2027.
The estimated cost increase is driven by inflationary and real cost
escalation pressures, design development and scope changes, and our
current assessment of lower productivity outcomes over the construction
period. We expect to update the market on JS1’s timing and optimised
capital expenditure estimate in the second half of FY2026.
JS2 was 11 per cent complete as at 30 June 2025. Progress in FY2025
was driven by engineering, procurement activities, and civil works.
Regina
Stalwart
Young
Holdfast
Melville
Wolverine
Burr
Boulder
Moose Jaw
Yorkton
Jansen
Saskatoon
Weyburn
Assiniboia
Prince Albert
Saskatchewan,
Canada
BHP mineral leases
Existing operations
Township
Jansen potash
project
We have decided to extend the execution of JS2 by two years, shifting first
production from FY2029 to FY2031, as part of our regular review of capex
sequencing under the Capital Allocation Framework.
JS2’s capital expenditure remains under review and we expect to update the
market on JS2’s optimised capital expenditure estimate in the second half
of FY2026.
23Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
6.6 Commercial
BHP’s 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.
Sales and Marketing
The Sales and Marketing team connects BHP to the market through
commercial expertise, sales and operations planning, customer insights,
placement strategy and proactive risk management. It presents a single
face to market across multiple assets, with a view to realising maximum
value and supporting sustainability initiatives in our value chain.
Maritime and Supply Chain Excellence
The Maritime and Supply Chain Excellence team manages BHP’s
enterprise-wide maritime transportation strategy and the chartering
of ocean freight to meet BHP’s inbound and outbound supply chain
needs. It enables the effective operation of BHP’s supply chain
through sourcing cost-efficient marine freight for BHP’s commodities
and international inbound cargo. It’s a member of the global maritime
ecosystem and partners with other industry participants to seek to
uplift overall safety standards in the industry, promote seafarer welfare
and support GHG emissions intensity reduction initiatives. It manages
BHP’s supply chain risk. It vets the safety performance of the ships
loading BHP cargo and partners with reliable vessel owners with
excellent operational, safety and crew welfare standards.
Procurement
Our global Procurement team plays a critical role in connecting
our operated assets, projects and functions with the suppliers
that help enable safe, efficient and reliable operations. We partner
strategically across our supply chain to optimise performance,
reduce operating costs, manage risk and generate long-term value.
Through collaboration and innovation, we support BHP’s sustainability
objectives, including the reduction of GHG emissions, and we are
committed to fostering enduring relationships with both global suppliers
and local businesses in the communities where we operate.
Market Analysis and Economics
Our Market Analysis and Economics team develops BHP’s proprietary
view on the outlook for commodity demand and prices, as well as our
input costs, the world economy and financial markets, and the potential
impact of climate change in those contexts. The team works with our
Procurement, Maritime and Sales and Marketing sub-functions to help
optimise end-to-end commercial value and with the Portfolio Strategy
and Development and External Affairs functions to identify and respond
to long-run strategic changes in our operating environment.
Risk, Governance and Analytics
The role of our Risk, Governance and Analytics team is to provide
oversight of material risks, manage commodity price risk and counterparty
risk, and optimise value for Commercial through insights, data analytics
and solutions. This enables functional integrity and protection of BHP’s
licence to operate.
Global Business Services
The Global Business Services team integrates repeatable process
activity across the Group into a single shared services operation.
With the BHP Operating System and digital process transformation
capabilities at its core, the team has the mandate to aggregate, operate
and improve end-to-end processes on behalf of our operated assets
and functions to drive operational excellence.
6.5 Nickel
Western Australia Nickel
Overview
Western Australia Nickel (BHP ownership: 100 per cent), which comprises
Nickel West and the West Musgrave project, transitioned into temporary
suspension at the end of the first half of FY2025. The decision to temporarily
suspend Western Australia Nickel, announced on 11 July 2024, follows
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 on Ngaanyatjarra Country in the West Musgrave Ranges of
Western Australia. Project construction has been temporarily suspended
at 30 per cent completion.
Key developments in FY2025
Western Australia Nickel experienced strong production performance
prior to temporary suspension of operations, supplemented by a drawdown
of inventory stocks across the value chain, to achieve production of
30 kilotonnes (kt) of nickel.
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 is committed to supporting the workforce with a people-first
approach; ensuring the ongoing safety and integrity of the mines and related
infrastructure; working closely with Traditional Owners, governments and
suppliers, and investing in local communities via the A$20 million Community
Fund established in 2024; and investing in exploration to extend the resource
life of Western Australia Nickel and preserve optionality.
Mt Keith
West
Musgrave
Cliffs
Leinster
Mt Keith Satellite
(Yakabindie)
Albany
Ravensthorpe
Kambalda
Concentrator
Newman
Fremantle
Geraldton
Perth
Kwinana Refinery
Kalgoorlie Smelter
Western
Australia
Port
Highway
Existing operations
Township
Western Australia
Nickel
6 Our assets continued
Kabanga nickel project
Following the end of the financial year, on 18 July 2025 BHP exited its
17 per cent interest in Kabanga Nickel Limited, the majority owner of the
Kabanga nickel project in Tanzania
24 BHP Annual Report 2025
7 How we manage risk
Risk management helps us to protect and create value, and is central to achieving our purpose and strategic objectives.
Our Risk Framework has four pillars: risk strategy, risk governance, risk process and risk intelligence.
Risks associated with the organisations, businesses or assets that we acquire are transitioned to BHP’s Risk Framework as part of integration activities,
which generally involves a transitional period. Risk integration of our OZ Minerals Australian assets was completed during FY2025. Non-operated
joint ventures are independently managed and operated, and BHP does not manage their risks. However, we manage risks to BHP’s investments in
non-operated joint ventures. To do this, we seek within the limits of the respective joint venture agreements to enhance governance processes and
influence operator companies to adopt international standards and best practices.
Risk strategy
Risk classification
We classify all risks to which BHP is exposed using our Group Risk
Architecture. This is a tool designed to provide a platform to understand
risk exposure and manage identified risks. Similar risks are considered
together in groups and categories. This is designed to support Board
and management visibility over the aggregate exposure to risks on a
Group-wide basis and support performance monitoring and reporting
against BHP’s risk appetite.
Risk appetite
BHP’s Risk Appetite Statements are approved by the Board and are a
foundational element of our Risk Framework. They provide guidance to
management on the amount and type of risk we seek to take in pursuing
our objectives.
Key risk indicators
Key risk indicators (KRIs) are set by management to help monitor performance
against our risk appetite. They also support decision-making by providing
management with information about financial and non-financial risk exposure
at a Group level. Each KRI has a target, or optimal level of risk we seek to take,
as well as upper and lower limits. Where either limit is exceeded, management
will review potential causes to understand if BHP may be taking too little or too
much risk and to identify whether further action is required.
Risk culture
Our risk management approach is underpinned by a risk culture that
supports decision-making in accordance with BHP’s values, objectives
and risk appetite. We use a common foundation across BHP to build the
tools and capabilities required to enable us to understand, monitor and
manage our risk culture. These include the risk-culture assessments
undertaken as part of our internal audit plan.
Strategic business decisions
Strategic business decisions and the pursuit of our strategic objectives
can inform, create or affect risks to which BHP is exposed. These risks
may represent opportunities as well as threats. Our Risk Appetite
Statements and KRIs assist in determining whether a proposed course
of action is consistent with BHP’s risk appetite.
Our focus when managing risks associated with strategic business
decisions is to enable the pursuit of high-reward strategies. Therefore,
as well as having controls designed to protect BHP from threats, we
seek to implement controls to enable and/or enhance opportunities.
Risk governance
Three lines model
BHP uses the ‘three lines model’ to define the role of different teams
across the organisation in managing risk. This approach sets clear
accountabilities for risk management and provides appropriate
‘checks and balances’ to support us in protecting and growing value.
The first line is provided by our frontline staff, operational management
and people in functional roles – anyone who makes decisions, deploys
resources or contributes to an outcome is responsible for identifying
and managing the associated risks.
The Risk team and other second-line teams are responsible for providing
expertise, support, monitoring and challenge on risk-related matters,
including by defining Group-wide minimum standards.
The third line, our Internal Audit team, is responsible for providing independent
and objective assurance over the control environment (governance, risk
management and internal controls) to the Board (including applicable Board
Committees) and Executive Leadership Team. Additional assurance may also
be provided by external providers, such as our External Auditor.
The Risk team and Internal Audit team are led by the Chief Risk and
Audit Officer. This structure facilitates overall effectiveness of both teams,
including through alignment of second- and third-line assurance activities
across BHP, while maintaining the independence of our Internal Audit team
through appropriate safeguards.
BHP Board and Committees
The Board reviews and monitors the effectiveness of the Group’s systems of
financial and non-financial risk management and internal control. The broad
range of skills, experience and knowledge of the Board assists in providing
a diverse view on risk management. The Risk and Audit Committee (RAC)
and Sustainability Committee assist the Board by reviewing and considering
BHP’s material risk profile (covering operational, strategic and emerging
risks) on a biannual basis.
Risk management performance is monitored and reported to the RAC,
as well as the Sustainability Committee for health, safety, environment
and community matters, supporting the Board to challenge and hold
management to account.
For information on other Board Committee activities that support risk
governance at BHP refer to the Corporate Governance Statement
25Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Risk process
Our Risk Framework requires identification and management of risks
(both threats and opportunities) to be embedded in business activities
through the following process:
– Risk identification – threats and opportunities are identified and
each is assigned an owner or accountable individual.
– Risk assessments – risks are assessed using appropriate and
internationally recognised techniques to determine their potential
impacts and likelihood, prioritise them and inform risk treatment options.
– Risk treatment – controls are implemented that are designed
to prevent, minimise and/or mitigate threats, and enable and/or
enhance opportunities.
– Monitoring and review – risks and controls are reviewed periodically
and on an ad hoc basis (including where there are high potential events
or changes in the external environment) to evaluate performance.
– Communication – relevant information is recorded in our enterprise
risk management system to support continuous improvement and
share risk intelligence across the Group.
Our Risk Framework includes requirements and guidance on the tools
and processes to manage current and emerging risks.
Current risks
Current risks are risks that could impact BHP today or in the near future
and comprise current operational risks (risks that have their origin inside
BHP or occur as a result of our activities) and current strategic risks (risks
that may enhance or impede the achievement of our strategic objectives).
Current risks include material and non-material risks (as defined by
our Risk Framework). The materiality of a current risk is determined
by estimating the maximum foreseeable loss (MFL) if that risk were to
materialise. The MFL is the estimated impact to BHP in a worst-case
scenario without regard to probability and assuming all controls,
including insurance and hedging contracts, are ineffective.
For more information on our risk factors refer to OFR 11
Our focus for current risks is to prevent their occurrence or minimise their
impact should they occur, but we also consider how to maximise possible
benefits that might be associated with strategic risks (as described in the
Risk strategy section). Current material risks are required to be evaluated
once a year at a minimum to determine whether our exposure to the risk
is within our target range.
Emerging risks
Emerging risks are newly developing or changing risks that are highly
uncertain and difficult to quantify. They are generally driven by external
influences and often cannot be prevented by BHP.
BHP maintains a ‘watch list’ of emerging themes and monitors associated
signals to interpret external events and trends, providing an evolving
view of the changing external environment and how it might impact our
business. We use the watch list and signal monitoring to support the
identification and management of emerging risks, as well as to inform
and test our corporate strategy.
Once identified, our focus for emerging risks is on structured monitoring
of the external environment, advocacy efforts to reduce the likelihood of
the threats manifesting and identifying options to increase our resilience
to these threats.
Risk intelligence
The Risk team provides the Board, RAC, Sustainability Committee
and senior management with insights on risk management across BHP.
Risk reports may include trends, aggregate exposure and performance
for our most significant risks, updates on the Risk Framework and risk
management priorities, an overview of (and material changes in) BHP’s
material risk profile and updates on strategic and emerging risk themes
and signals.
We maintain a risk insights dashboard designed to provide current,
data-driven and actionable risk intelligence to our people at all levels of the
business to support decision-making. This tool empowers the business to
manage risks more effectively, with increased accuracy and transparency.
The Board, RAC and Sustainability Committee also receive other reports
to support the Board to review and monitor the effectiveness of BHP’s
systems of financial and non-financial risk management. Examples of
these include internal audit reports, ethics and investigations reports,
compliance reports and the Chief Executive Officer’s report.
For information on our risk factors refer to OFR 11
7 How we manage risk continued
26 BHP Annual Report 2025
Nothing is more important than protecting the safety
and wellbeing of our workforce.
Our workplace culture is built on a foundation of safety as a core value.
This requires strong connections and collaboration at every level and is
at the heart of our Global Field Leadership Program and BHP Operating
System (BOS). In FY2025, we continued to enhance how we simplify,
standardise and integrate safety principles and practices within the BOS
Framework. One example of this integration is the joint effort between
Safety, BOS, Risk and HR to develop and test how we measure safety
culture maturity via BOS maturity assessments, which our teams use to
more broadly identify their strengths and opportunities to improve work
outcomes and wider organisational culture.
We also used technology in new ways to help keep our people safe and
will explore its ongoing application to support future improvements.
Continuing to strengthen our safety risk control framework and building skill
across our workforce is vital, especially in our frontline leaders and safety
professionals. Our leaders take an active role in coaching their teams to
enable them to perform their work safely and effectively.
We have finalised our investigation into the fatal incident at Olympic Dam
in April 2023 and the findings, along with those from the fatality at Saraji
in January 2024, were shared internally to help us improve the way we
execute work safely. We recognise the severity and impact of these events
and continue to provide support to their respective families, friends and
colleagues. What we learned from the investigation plays a crucial role
in our ongoing efforts to strengthen our safety systems and risk control
framework as we work to prevent fatalities.
The elimination of fatalities is a critical milestone in our FY2026
social value scorecard, together with focusing on improving our
high potential injury frequency rate for employees and contractors.
This is key for our 2030 social value goal to have a Safe, inclusive and
future-ready workforce.
Fatality Elimination Program
The Fatality Elimination Program (FEL), which began in 2020 and is a
five-year program, provides a solid foundation for delivering strong safety
performance through the standardisation and implementation of fatal risk
controls (FEL controls). In FY2025, we completed incorporation of most
of the recommended FEL controls as requirements under our Global
Standards (Safety, Process Safety Management and Geotechnical).
This important work also included the introduction of a new global
specification for vehicles, which emphasises standardisation of controls,
and the use of new technology designed to prevent fatalities related to
vehicles and mobile equipment.
At the end of FY2025, having embedded the defined set of Global
Standards, the FEL program shifted to an asset-led model for fatal risk
control management. This transition formally closes out the five-year,
globally led FEL program. This important change provides our operated
assets with ownership of their respective control plans and enables them
to tailor and apply FEL controls relevant to their specific risk exposure
scenarios. This is supported by Global Standards (including the new
global specification for vehicles) and audit and assurance processes.
Field Leadership Program
The intent of the Global Field Leadership Program is for our leaders
to foster a culture of care and trust, reinforce standards, risk control
verification and uplift capability via coaching across all levels of work
to drive learning and improve safety performance outcomes.
Our leaders spend time engaging with frontline teams, role modelling
the right behaviours and standards, observing and learning about safety
concerns and feedback. They coach and empower our teams to speak
up, to focus on the presence of controls that will keep them safe and
to encourage even better ways to work safely. These connections and
conversations build trust and strengthen collaboration to enable continuous
learning and improvement.
The four structural elements of our Field Leadership Program are:
– Layered Audits – test the system of work through a structured, narrow
and deep assessment and are performed by two levels of leadership.
– Critical Control Observations – a way for leaders to verify that workers
understand the material risks and controls relating to a task they
are performing and have checked the controls are present, effective
and enough to keep them safe, and that they know what to do when
things change.
– Planned Task Confirmations – an approach to verify how work is actually
performed versus how it is intended to be done in accordance with
written documentation, and to understand if there is work variation,
improvement opportunities or gaps that may require action.
– Take Time Talks – quality engagements between leaders and peers
or between peers that create a safe and inclusive environment for the
workforce to share how they execute work, including any concerns and/
or improvement opportunities.
In FY2025, we:
– co-designed safety and field leadership improvement opportunities
with the BOS Centre of Excellence, including field leadership Role
Confirmations to build capability and support quality engagements.
– developed an improved methodology for having Take Time Talk
‘two-way’ conversations using a new approach that embraces care,
curiosity and humility to uplift the way we can learn from everyday
successful work, with lessons from these engagements shared at
pre-start meetings.
– enhanced the quality of coaching through our ‘coaching to grow’ model.
– incorporated lessons from high potential events into field leadership
Layered Audits.
8 Safety
Case study: Driving improvement via BOS
and safety (field leadership) integration
In FY2025, the way leaders provide their direct reports with
coaching and feedback under the Global Field Leadership
Program was simplified and standardised by adopting the
same practices and tools as those supporting the BOS
framework, via the use of Role Confirmations.
A Role Confirmation is a BOS routine that encourages open
communication and clarifies roles, standards, consistency,
process alignment, best practice and opportunities for improvement.
Field leadership-focused Role Confirmations promote alignment
and quality in field engagement activities and build field leadership
capability in our leaders. Insights from Role Confirmations deepen
our understanding of how effective leaders are at connecting with our
people to learn from everyday work, to reinforce standards, verify risk
controls, and identify quality actions and improvements via meaningful
engagement and collaboration.
These common practices and tools also help our leaders to build
and sustain capability within their own teams through quality feedback
and coaching.
Our leaders have embraced this field leadership improvement with
an encouraging take-up evident in their work routines. We believe
when our leaders systematically and reliably provide their teams with
authentic feedback and coaching, it is one of the most effective ways
they demonstrate genuine care and embrace our values (do what’s
right, seek better ways, make a difference) and it has a profound
and positive impact on our workplace culture.
27Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Performance data – workforce
health and safety for FY2025
1,3,4
High potential injury frequency (HPIF)
1,3,4
Per million hours worked
FY2025
FY2024
FY202 3
FY2021
0.09
0.11
0.18
0.21
FY2022
0.14
High potential injury frequency (HPIF)
2
Employees 0.02 Contractors 0.02
Total recordable injury frequency (TRIF)
1,3,4
Per million hours worked
FY2025
FY2024
FY202 3
FY2021
4.5
4.8
4.4
3.8
FY2022
4.1
Total recordable injury frequency (TRIF)
2
Employees 1.04 Contractors 0.80
Year ended 30 June
1. Prior year data (FY2021 to FY2023) excludes former OZ Minerals Australian assets (acquired 2 May 2023), which is included for FY2024 and FY2025. Prior year data (FY2021 to FY2023)
also excludes (entirely) divested operations as follows: BHP Mitsui Coal (divested on 3 May 2022) and BHP’s oil and gas portfolio (merger with Woodside completed on 1 June 2022).
2. Frequency rate based on number of employee or contractor injuries (either high potential injuries (HPIs) or total recordable injuries (TRIs)) per 200,000 hours worked.
3. Frequency rate based on combined total number of employee and contractor injuries (either HPIs or TRIs) per 1 million hours worked.
4. FY2024 data has been adjusted and restated to exclude BMA’s Daunia and Blackwater mines (divested on 2 April 2024) and to add two HPIs due to re-classification.
Contractor management
Contractors make up approximately 55 per cent of our workforce and our
operations depend on strong partnerships with contractors. Our Contractor
Management Global Standard sets out our requirements that are intended
to make it safer and easier for contractors to work with us. It is designed to
promote an inclusive, respectful and caring workplace culture.
We have an asset-focused approach to managing contractors and our
BHP contract representatives play an important role in building and
maintaining valued relationships and making sure contracts are executed
safely and successfully.
In FY2025, we:
– continued to implement our asset-centric approach to the Contractor
Management Global Standard and launched a targeted internal
assurance program.
– continued building peer networks to share knowledge and best practice
around contractor safety risk management.
– continued identifying and delivering contractor integration opportunities
to drive standardisation of safety systems across Copper South
Australia (e.g. implementation of Global Field Leadership Program)
– used an asset-led model for contractor mobilisation.
For more information on safety refer to bhp.com/safety
Our safety performance
In FY2025, we recorded:
4
– no fatalities.
– a reduction of 18 per cent in the rate of high potential injuries per million
hours worked (HPIF), compared to FY2024 with the most risks relating
to dropped/falling objects. In FY2024, the highest risk was related to
vehicle and mobile equipment.
– a reduction of 39 per cent in the number of high potential near
miss events compared to FY2024, with the most risks relating to
dropped/falling objects, followed by electrical and then vehicles and
mobile equipment.
– a reduction of 7 per cent in the rate of total recordable injuries per
million hours worked (TRIF) compared to FY2024. The highest number
of recordable injuries related to slips, trips and falls for employees and
contractors, with caught-between-objects the second highest for both.
– an increase of 43,254 field leadership activities compared to FY2024,
at a frequency rate of 9,531 activities per million hours worked with
over 1.8 million activities completed.
– a field leadership coaching rate of 44 per cent for Layered Audits and Critical
Control Observations, a slight improvement (1 per cent) from FY2024.
8 Safety continued
28 BHP Annual Report 2025
9.1 Our sustainability approach
Our approach to sustainability is defined through Our Purpose and
Our Values, which are governed through our Global Standards.
These standards describe our mandatory minimum performance
requirements and provide the foundation for sustainability performance
at our operated assets and in our functions.
Key sustainability-related elements of a number of these Global
Standards are available as external versions at bhp.com/about/
operating-ethically/corporate-governance
We believe our approach to sustainability can generate social value and
shareholder value. We continue to disclose progress against our 2030
goals in our annual social value scorecard.
For information on our approach to social value, including the goals
and associated metrics we have set for ourselves, refer to OFR 9.4
Sustainability-related standards and disclosures
Our sustainability-related disclosures reflect a number of voluntary global
sustainability frameworks, standards, benchmarks and initiatives, including
the Global Reporting Initiative (GRI) Standards and the Sustainability
Accounting Standards Board (SASB) Mining and Metals Standards.
We also disclose against the recommendations of the Taskforce on
Climate-related Financial Disclosures (TCFD) as required by the UK
Listing Rules. In FY2025, we continued to prepare for new mandatory
sustainability-related reporting regimes applicable to BHP, including
the Australian Accounting Standards Board’s Australian Sustainability
Reporting Standard AASB S2: Climate-related Disclosures from FY2026,
and we monitored potential updates to the EU Corporate Sustainability
Reporting Directive (CSRD) and EU Corporate Sustainability Due
Diligence Directive (CSDDD) from the EU Omnibus Simplification Package.
We continue our commitment to a number of responsible minerals
production and sourcing standards, such as the International Council on
Mining and Metals (ICMM) Performance Expectations, Towards Sustainable
Mining and the Copper Mark. These standards require self-assessment
and third-party verification of management systems and performance at an
asset, operation or facility level and detailed disclosure across a broad range
of sustainability topics.
For information on our responsible minerals production and sourcing
standards strategy and the standards we have reported against for
FY2025, including our Responsible Minerals Program disclosures, refer
to our 2025 Responsible Minerals Program Report and OFR 9.13
9 Sustainability
Our approach
to sustainability
Through our purpose, Our Values,
strategy and operating model, we set
the direction for the way we do business.
We build strong foundations through
meeting our compliance obligations
and operating within our social licence.
We manage this through our Global
Standards, which set the mandatory
minimum performance standards for
BHP, our ongoing risk (opportunity
and threat) management and meeting
the sustainability standards
that we commit to.
Our Purpose and
Our Values underpin
everything we do and
are central to our
sustainability approach.
To bring people and
resources together
to build a better world.
Decarbonisation
Indigenous partnerships
Healthy environment
Safe, inclusive and
future-ready workforce
Responsible
supply chains
Thriving, empowered
communities
Strong foundations
Building on strong foundations, we aspire to create
social value for society that is purposeful, proactive,
mutually beneficial and respectful.
In June 2022, we launched our social value framework;
each pillar is anchored to an aspirational 2030 goal
and underpinned by a set of metrics to measure
performance and milestones to track progress.
Social value
Our Purpose
Our Values
Details of the voluntary sustainability standards that we have reported against
for FY2025 are set out in the BHP ESG Standards and Databook 2025.
The BHP ESG Standards and Databook 2025
is available at bhp.com/ESGSD2025
Our Modern Slavery Statement 2025 is prepared under the Australian
Modern Slavery Act 2018, the UK Modern Slavery Act 2015 and the
Canadian Fighting Against Forced Labour and Child Labour in Supply
Chains Act and outlines our approach to managing modern slavery risks.
The BHP Group Modern Slavery Statement 2025
is available at bhp.com/MSS2025
Presentation of sustainability-related data and
information for acquisitions and divestments
For comparative period sustainability-related data and information included
in this Report (including OFR 8 and 9), 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
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.
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
data related to the land and tenements has been excluded from this Report
(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 this Report 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 its divestment
of 20 December 2024 and such data is included up until that date only;
and (ii) for all remaining assets while we considered strategic options for
divestment of these assets.
29Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9.2 Sustainability governance
Board
The BHP Board is responsible for overseeing our approach to sustainability
and sustainability performance, including the topics of safety, health,
community, environment and climate change. All four standing Board
Committees support the Board’s oversight of sustainability-related issues,
including climate-related risks (threats and opportunities).
Sustainability topics considered by the Board during FY2025 included
climate change and environment-related topics, which were regularly on the
agenda for Board meetings and considered as part of strategic discussions.
In FY2025, the Board reviewed and approved public sustainability targets,
goals and disclosures, progress against our social value scorecard 2030
goals (including climate-related), key metrics and milestones, received
progress updates against our public climate-related targets and goals, and
considered applicable sustainability-related issues when assessing corporate
strategy and portfolio options, certain investment requests, risk and policy
settings. The Board and each of its Committees, as relevant, are informed on
sustainability-related matters through Board papers, progress updates from
management, material risk reports and presentations. The Board receives
reports from the Chair of each Committee following Committee meetings.
Sustainability-related topics are also incorporated into Director induction
programs, ongoing training and site visits to assist Directors in their oversight.
For information on BHP’s governance structure, including the work
of the Board and each its Committees with respect to climate change,
refer to the Corporate Governance Statement
Management
Management plays a key role in assessing and managing
sustainability-related matters, which includes:
– The CEO and ELT execute sustainability-related policies and strategy
approved by the Board and are accountable for performance and
achievement of BHP’s sustainability-related commitments, targets
and goals, including our climate change targets and goals.
– The Operating Committee (OpCo) is a sub-committee established by
the CEO pursuant to the Executive Leadership Team Charter to assist
the CEO and the ELT in delivering BHP’s operational commitments
and supporting excellent operational performance.
– The focus of the OpCo is on fostering a culture of safety and
performance across BHP. The sub-committee conducts ongoing
systematic analysis and review of enterprise-level operational
performance, especially in safety, production and cost, to
identify performance gaps and uplift opportunities, including
sustainability matters.
– Oversight of sustainability-related topics transitioned from the ESG and
Sustainability Steering Committee in early FY2025 to the ELT, assisted
by the OpCo. On a quarterly basis, ESG and sustainability-related topics
are discussed at either the ELT and/or the OpCo.
– Group Officers, including the Group Sustainability and Social Value
Officer and Group Health, Safety and Security Officer, are direct
reports of relevant ELT members and are responsible for monitoring and
driving our sustainability strategy, including safety, climate change and
environment-related considerations, within the broader BHP strategy
and portfolio evaluation.
– Management is supported by BHP’s asset and function teams such
as the Group Sustainability and Social Value team and the Risk team.
The ELT, the OpCo and relevant members of management receive regular
progress and performance reports from asset and function teams on
sustainability-related matters. For climate change and environment-related
matters, this includes operational greenhouse gas (GHG) emissions,
operational and value chain GHG emission reduction activities, adaptation
strategy-related activities, management of climate-related risks (threats
and opportunities), water stewardship and implementation of the BHP
Healthy environment goal roadmap. In addition, sustainability-related
matters, including progress towards our climate change targets and
goals, are discussed by the ELT and OpCo throughout the year as
specific agenda items and as part of strategic discussions.
9.3 Material sustainability topics
(including human rights)
Annual sustainability materiality assessment
Each year we undertake an impact materiality assessment in alignment
with GRI recommendations to determine which sustainability topics are
most material to our business, partners and stakeholders for the purpose
of our sustainability-related reporting (which may differ from the materiality
standards applied by other reporting regimes). These are referred to as
our material sustainability topics. The topics in FY2025 are similar to those
we disclosed in FY2024, with the addition of value chain sustainability and
tailings storage facilities. Our material sustainability topics are reviewed by
the Sustainability Committee annually.
For more information on our materiality assessment for sustainability
reporting refer to bhp.com/sustainability approach/materiality-assessment
For more information on the process by which we identify and manage
risk at BHP and our risk factors, which include sustainability-related
risks, refer to OFR 7 and OFR 11
Respecting human rights
We recognise we have the potential to cause, contribute to or be directly
linked to human rights impacts through our operations and supply chain.
This primarily relates to workplace health and safety, labour rights, activities
of security providers, land access and use, water and sanitation, community
wellbeing, and Indigenous peoples’ rights relating to culture, identity, traditions
and customs. Our Human Rights Policy Statement and relevant Global
Standards outline our commitment and approach to respecting human rights
and the principles by which we conduct our human rights due diligence.
Material topics and impacts for sustainability reporting
Social value pillar Material topic SDG Index
Decarbonisation
Climate change
OFR 9.8
Climate
change
Healthy
environment
Biodiversity
OFR 9.9
Biodiversity
Water
OFR 9.9
Water
Indigenous
partnerships
Indigenous
peoples
OFR 9.12
Indigenous
peoples
Safe, inclusive
and future-ready
workforce
Safety
OFR 8
Safety
People
OFR 9.5
People
Health
OFR 9.6
Health
Thriving, empowered
communities
Community
OFR 9.11
Community
Responsible
supply chains
Value chain
sustainability
OFR 9.13
Value chain
sustainability
Other
Tailings
storage facilities
OFR 9.10
Tailings
storage
facilities
Ethics and
business conduct
OFR 9.7
Ethics
and business
conduct
9 Sustainability continued
30 BHP Annual Report 2025
In FY2025, several initiatives were progressed to further strengthen
our human rights approach:
– Personnel responsible for human rights policy, assurance and advocacy
were restructured within a newly merged Ethics, Compliance and
Human Rights team under the leadership of a new Chief Ethics,
Compliance and Human Rights Officer. This consolidation is intended
to strengthen second line human rights governance and assurance.
– The team completed an internal assurance activity in late FY2025
focused on community grievance mechanisms at our operated assets.
Findings focused on opportunities to enhance accessibility and improve
our internal data and reporting evaluation practices.
– A cross-functional Human Rights Working Group was established.
In FY2025, the working group completed an annual review of our Human
Rights Policy Statement, in which no substantive changes were made
and assessed our human rights approach against the ICMM Human
Rights Due Diligence Guidance Maturity Matrix with assistance from
an external human rights specialist.
– With the support of a human rights expert, we reviewed and updated our
procedures and human rights due diligence tools for our growth context.
– Several human rights-focused training sessions were made available
for targeted personnel, particularly those supporting BHP’s growth
activities, to strengthen internal human rights capability.
– We progressed the design of a revised methodology to incorporate
expert feedback on our community and human rights impact and
opportunity assessments. This follows the FY2023 pilot of the globally
consistent methodology for these assessments and external expert
review of the methodology in FY2024. Once completed, the redesigned
assessments are expected to be implemented across each of our
operated assets from FY2026.
For information on our approach to addressing modern slavery risks
in our operations and supply chains refer to the BHP Group Modern
Slavery Statement 2025 available at bhp.com/MSS2025
9.4 2030 goals and social value scorecard
Our social value scorecard
We provide progress on our 2030 goals through our annual social value
scorecard. The scorecard is intended to evolve over time as our plans
mature and to keep pace with relevant changes in our internal and external
environment. Our FY2025 scorecard performance and our new key metrics
for the Thriving, empowered communities and Responsible supply chains
pillars and FY2026 short-term milestones for all the pillars are provided on
page 32. For more information on our progress and pathway to 2030 refer
to the relevant sections of OFR 9.
For more information on how the key metrics and annual milestones
support progress towards our 2030 goals and the methods we use to
measure progress refer to the BHP ESG Standards and Databook
2025 available at bhp.com/ESGSD2025
Social investment
Guided by our social value framework, our social investment aims to
make a meaningful contribution to addressing sustainable development
challenges of most relevance to our business, partners and stakeholders.
In FY2025, our voluntary social investment totalled US$127.8 million.
This investment consisted of US$92.5 million in direct funding for initiatives
in line with our social value framework, US$19.7 million to non-operated
joint venture social investment programs and US$1.3 million under the
BHP Matched Giving Program. Administrative costs to facilitate social
investment activities totalled US$8.6 million and US$5.7 million supported
the operations of the BHP Foundation.
Of the US$92.5 million in direct funding, US$70.1 million was in support
of our host communities and Indigenous partners, and we provided
US$13.9 million towards training and skills programs.
For more information on our social investment, including case studies
and performance against our global social investment indicators,
refer to bhp.com/sustainability/approach/social-investment
For more information on the BHP Foundation refer to
bhp.com/bhp-foundation.org
These footnotes refer to the following page
1. With widespread adoption expected post 2030.
2. For the definition of the terms used to express these positions, including ‘target’, ‘goal’,
‘net zero’, ‘carbon neutral’ and ‘operational GHG emissions’ refer to Additional information
10.4. For more information on the essential definitions, assumptions and adjustments for
our targets and goals refer to Climate-related Metrics, targets and goals in OFR 9.8.
3. Baseline year and performance data adjusted; for the adjustments we make, refer
to Climate-related metrics, targets and goals beginning on page 48 in OFR 9.8.
4. CY2008 was selected as the baseline year for this goal to align with the base year
for the International Maritime Organisation’s CY2030 emission intensity goal and its
corresponding reasoning and strategy. Baseline and performance data have been
adjusted to only include voyages associated with the transportation of commodities
currently in BHP’s portfolio due to the data availability challenges of adjusting by
asset or operation for CY2008 and subsequent year data. GHG emissions intensity
calculations currently include the transportation of copper, iron ore, steelmaking coal,
energy coal, molybdenum, uranium and nickel.
5. Excluding in-kind contributions.
6. Nature-positive is defined by the TNFD Glossary version 1.0 as ‘A high-level goal and
concept describing a future state of nature (e.g. biodiversity, ecosystem services and
natural capital) which is greater than the current state’. We understand it to include land
and water management practices that halt and reverse nature loss – that is, supporting
healthy, functioning ecosystems. We are monitoring the evolving external nature
landscape, including developments in nature frameworks, standards and methodologies
and in definition of the global nature ambition.
7. Excluding areas we hold under greenfield exploration licences (or equivalent tenements),
which are outside the area of influence of our existing mine operations. 30 per cent will
be calculated based on the areas of land and water that we steward at the end of FY2030.
For more information refer to the BHP ESG Standards and Databook 2025 available at
bhp.com/ESGSD2025.
8. Area under stewardship that has a formal management plan that includes conservation,
restoration or regenerative practices. 1.54 per cent is calculated based on the areas of
land and water that we stewarded at 30 June 2025, as per footnote 7. For more information
refer to the BHP ESG Standards and Databook 2025, available at bhp.com/ESGSD2025.
9. Natural capital accounts are a way to measure the amount, condition and value of
environmental assets in a given area. They help describe changes in ecosystems
and how these impact wellbeing and economies.
10. For more information regarding the BHP Healthy environment goal roadmap refer
to OFR 9.9.
11. Point in time data at 30 June 2025.
12. 9.0 per cent refers to Indigenous employee participation at Minerals Australia operations.
Total Indigenous employee participation in Australia, including non-operational roles,
was 8.2 per cent at 30 June 2025.
13. 17.8 per cent refers to Indigenous employee participation at the Jansen potash
project and operation in Canada.
14. 10.5 per cent refers to Indigenous employee participation at Minerals Americas
operations in Chile.
15. We have published regional Indigenous Peoples Plans in Australia and Canada and
data is available to report on progress in FY2025. We are still developing our regional
Indigenous Peoples Plan for Chile. For more information refer to OFR 9.12 and the
BHP ESG Standards and Databook 2025 available at bhp.com/ESGSD2025.
16. The relationship health assessment is intended to be conducted every three years.
Indigenous partners who participated in the relationship health assessment project
in FY2024 considered and provided feedback on social, cultural and commercial
aspects of their relationship with BHP and provided a rating on the present health of
their relationship with BHP, which was reported in our FY2024 social value scorecard.
We plan to report again against this metric in FY2027.
17. Cultural diversity in our workforce will be measured based on our substantive
progress towards reflecting the cultural diversity of the societies where we operate.
18. High-potential injury frequency rate is the number of employee and contractor high potential
injuries per 1 million hours worked and is measured by year-on-year improvement.
19. Metric will not be reported from FY2026. For FY2026 to FY2030, key metrics for the
Thriving, empowered communities pillar will shift to focus on the measurable outcomes
of co-created community programs, while co-creation and co-design (terms which we
use interchangeably) as a concept will continue to apply where appropriate across the
full framework.
20. Co-design requires meaningful engagement and contribution to the plan from a variety of
interested stakeholders. For an overview of our approach to co-design and co-creation
(terms which we use interchangeably) refer to OFR 9.12.
21. This includes contribution to suppliers, wages and benefits for employees, dividends,
taxes, royalties and other payments to governments and voluntary social investment.
For more information refer to the BHP Economic Contribution Report 2025 available
at bhp.com/ECR2025.
22. Community programs that benefit local communities that host our activities. For education
and skills programs, some program participants may join the BHP workforce on completion
of the program.
23. Net Promoter Scores (NPS) show respective feedback from our customers and suppliers
and measure the willingness of our customers/suppliers to recommend BHP to others.
NPS is used as a proxy for gauging overall satisfaction. The NPS survey is conducted
every two years, and therefore is no update to the data in FY2025. This metric will not
be reported on from FY2026 in this social value scorecard. We intend to publish data
from the next NPS survey in the BHP ESG Standards and Databook 2026.
24. A credible responsible production and sourcing standard refers to one that is
internationally recognised spanning multiple regions as outlined in OFR 9.13.
25. BHP’s ethical trade audit program is managed as part of our broader Ethical Supply
Chain and Transparency Framework. For more information on this framework and
associated activities, including baseline data, refer to the BHP Group Modern Slavery
Statement 2025 available at bhp.com/MSS2025.
26. The pilot impact project involves partnering with an NGO to deliver programs within
our supply network designed to promote responsible recruitment and improve labour
monitoring, worker voice and access to grievance mechanisms.
27. ‘In-scope’ BHP operated assets refer specifically to Australian assets as defined under
the Minerals Council of Australia (MCA) membership commitment. For more information
refer to the MCA Membership Commitment available at minerals.org.au.
31Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
PLANET PEOPLE PROSPERITY Social value scorecard
2030 goals Key metrics FY2025 milestones FY2026 milestones
36%
Reduction in operational GHG emissions
(Scopes 1 and 2 emissions from our
operated assets) from FY2020
3
44%
Reduction in GHG emissions intensity
of BHP-chartered shipping of our
products from CY2008
4
$171m
Committed in steel making partnerships
and ventures to date (US$)
5
Commence proof- of-concept
trials for battery-electric
equipment in collaboration
with original equipment
manufacturers
Continue development
of the direct reduced iron
electric smelting furnace
pathway to plan
Progress proof-of-concept
trials for battery-electric
equipment in collaboration
with original equipment
manufacturers
Complete the Escondida
Boiler Diesel Displacement
project and begin construction
of its counterpart project
at Spence
Continue development
of the direct reduced iron
electric smelting furnace
pathway to plan
Decarbonisation
At least 30% reduction in operational
GHG emissions; support 40% GHG
emissions intensity reduction of
BHP-chartered shipping of our products,
and support industry to develop steel
production technology capable of 30%
lower GHG emissions intensity relative to
conventional blast furnace steelmaking.
1,2
OFR 9.8 Climate change
1.54%
Area under nature-positive
management practices
8
0
Assets with natural capital account
9
Commence implementation
of BHP Healthy environment
goal roadmap
10
Deliver 95% of the
FY2026 actions in the
water stewardship priorities
– water quality and
context-based water targets
Healthy environment
Create nature-positive
6
outcomes by
having at least 30% of the land and water
we steward
7
under conservation, restoration
or regenerative practices. In doing so we
focus on areas of highest ecosystem value
both within and outside our own operational
footprint, in partnership with Indigenous
peoples and local communities.
OFR 9.9 Nature and environmental
performance
Indigenous employee participation
11
9.0% Australia
12
17. 8% Canada
13
10.5% Chile
14
$853m Indigenous procurement
spend (US$)
Progress to plan
15
Australia, Canada, Chile
Present relationship health
16
Indigenous voices and
perspectives are incorporated
into co-designed priorities
in each region
15
Deliver FY2026
commitments outlined in
Australian Reconciliation
Action Plan and Canada
Indigenous Partnership Plan
Indigenous partnerships
Respectful relationships that hear
and act upon the distinct perspectives,
aspirations and rights of Indigenous
peoples and support the delivery
of mutually beneficial and jointly
defined outcomes.
OFR 9.12 Indigenous peoples
88%
Engagement and Perception
Survey wellbeing score
41.3%
Female employee
11
representation
Improvement on key metrics
from FY2024 performance
Improvement on
high-potential injury
frequency rate from
FY2025
18
Safe, inclusive and
future-ready workforce
A thriving workforce that is safe,
healthy, gender balanced at every
level, culturally diverse
17
and inclusive
and skilled for the future.
OFR 8 Safety, OFR 9.5 People,
OFR 9.6 Health
Key metrics Key metrics from FY2026 FY2025 milestones FY2026 milestones
7 of 9
Assets have
co-created host
community plans
19
100%
Co-designed
19,20
outcomes on track
according to plan
$46.8bn
Total economic
contribution (US$)
21
#
education and skills
programs supported
22
$bn
Total economic
contribution (US$)
21
Co-creation further
embedded in internal
practice
Develop and
implement training
and tools on
community
co-creation
Thriving, empowered
communities
Partner with communities and
stakeholders to co-create and implement
plans that deliver jointly defined economic,
social and environmental outcomes.
OFR 9.11 Community
Customer Net
Promoter Score
(NPS)
23
Supplier Net
Promoter Score
(NPS)
23
%
of producing BHP operated
assets assessed with external
verification against a credible
responsible production
and sourcing standard
24
#
number of verification
and assurance activities
conducted by third parties
in relation to BHP’s ethical
trade audit program
25
#
suppliers participating in
BHP’s pilot impact project
26
Engage with suppliers
through our audit
program to monitor
implementation of
corrective actions
plans, where required
Implement NGO
partnerships to build
increased reach and
capabilities in BHP’s
Ethical Supply Chain
and Transparency
program
All in-scope BHP
operated assets
assessed and
complete external
verification against
the relevant Towards
Sustainable Mining
(TSM) Protocols
27
Responsible supply chains
Together with our partners,
we create sustainable, ethical
and transparent supply chains.
BHP Group Modern Slavery
Statement 2025
BHP Responsible Minerals
Program Report 2025
Indicators:
On trackImproved No change/data not available Not on track
Complete New/revised
Partially met
9 Sustainability continued
32 BHP Annual Report 2025
9.5 People
Our more than 90,000 employees and contractors globally form the
foundation of our business. We strive to attract and retain the best people.
Through the BHP Operating System (BOS), we empower our people to
continuously improve and achieve excellence in their work every day.
Our Values set the tone for our culture, and are a unique part of our
competitive advantage. Our Values are a declaration of what we stand for
and guide our decision-making, reinforce our culture and help ensure our
people deliver on our Purpose.
Developing our capabilities and an enabled culture
We invest in our people to build capability and drive stronger performance.
BHP’s early career and training pathways provide accredited maintenance
and production traineeships or apprenticeships to new employees, including
those new to our industry. Once qualified, employees move to one of our
operated assets.
During FY2025, the Transition to Trade program was introduced in
Minerals Australia allowing those who have successfully completed the
Maintenance Associate program to complete a trade qualification in
12 to 18 months, splitting time between the FutureFit Academy, BHP’s
purpose-built learning centre, and practical work on site. In Canada, we
launched the BHP Potash Academy in partnership with the Carlton Trial
College in Humboldt. Once qualified, the inaugural cohort of trainees will
transition to various roles at our Jansen operations.
BHP continues to invest in future talent through our intern and graduate
programs. In FY2025:
– In partnership with the Minerals Council of Australia, BHP sponsored
40 first-year university students for a two-week immersive experience
across Perth, Adelaide and Brisbane.
– An additional 163 university students participated in internship
placements, gaining practical experience on mine sites. Interns are
given early access to apply for graduate roles.
– A total of 146 graduate program participants commenced across
Australia, Chile and Canada.
In FY2025, around 1,950 current and potential leaders, participated in
the BHP Distinctive Leaders programs. These programs develop leaders’
abilities to lead through complexity, ethically and inclusively. We also
held monthly Senior Leadership Forums and a Leadership summit in
late FY2025 to further engage and align senior leaders in our purpose
and strategy. Our Integrated Leadership Forum provides quarterly
masterclasses and an annual forum for operational general managers.
Western Australia Nickel (WAN) transitioned into temporary suspension
in FY2025. Supporting our workforce and local communities to safely
transition operations was a crucial part of this change. WAN met the
commitment to provide redeployment opportunities for its frontline
workforce. Overall, around 1,400 employees were made offers of
redeployment across BHP, with the majority transitioning to WAIO.
Where redeployment was either not suitable or available, individuals
were supported through proactive career coaching and professional
outplacement services to assist with their transition. As at 30 June 2025,
around 360 employees remain at WAN to maintain the asset.
Twice a year we ask our employees and contractors about their
experiences working with BHP via an Engagement and Perception
Survey. After each survey, team leaders evaluate strengths and areas
for improvement, while the results measure wellbeing progress under
the Safe, Inclusive and Future-ready workforce pillar of BHP’s social value
scorecard. In March 2025, we had an 88 per cent employee response rate,
with 21,000 contractors also providing feedback. Of these, 83 per cent
responded favourably to engagement and connection questions, compared
to 80 per cent in FY2024 and 88 per cent responded favourably to
wellbeing questions, compared to 87 per cent in FY2024.
Achieving excellence by unlocking inclusion
We believe an inclusive and diverse workforce promotes engagement,
safety and productivity, and is valued by current and prospective
employees. Our aspiration is to attract and retain an inclusive workforce.
Our Inclusion and Diversity Position Statement guides our commitment to
deliver on inclusion, equity and diversity. Since 2016, our work to create safe
and inclusive workplaces has included flexible working, ensuring our facilities
and equipment are fit for everyone, and work to reduce bias in our systems.
Gender balance
1,2
In April 2025, we achieved our aspirational goal set in CY2016 to achieve
gender balance within our employee workforce globally by the end of
CY2025. We are the first global, listed mining company to achieve this
milestone. 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. The gender balance of our employee
workforce is a key metric in the Safe, Inclusive and Future-ready workforce
pillar in our social value scorecard.
As at 30 June 2025, women represented 41.3 per cent of our employee
workforce, more than double the representation compared to 2016
(17.6 per cent) when we first set our gender balance aspiration.
We increased the representation of women working at BHP in FY2025
by 4.2 percentage points compared to FY2024, with around 12,400 more
female employees at the end of FY2025 than FY2016.
In FY2025, our new hires were 63.3 per cent women and female
representation in leadership roles increased by 4.8 per cent compared to
FY2024. As at 30 June 2025, 36.5 per cent of people leaders were women,
while senior executives included 41.3 per cent women.
We recognise pay is a critical mechanism for creating gender equality.
To help mitigate gender pay disparities and avoid pay gaps, we continue
to drive improvements in our systems and processes to mitigate the risk
of systemic bias. Our FY2025 employee remuneration data, including
a breakdown by gender, is included in the BHP ESG Standards and
Databook 2025 available at bhp.com/ESGSD2025.
1. Based on a ‘point in time’ snapshot of employees as at 30 June 2025, including employees on extended absence, as used in internal management reporting for the purposes of monitoring
progress against our goals.
2. New hires are based on a 12-month period from 1 July 2024 to 30 June 2025. ‘People leaders’ are defined as employees with one or more direct reports. ‘Senior executives’ are defined as
employees in the Executive Leadership Team (ELT) and direct reports to the ELT in grade 15 and above roles.
3. For FY2023, this included employees of BHP Mitsubishi Alliance’s Blackwater and Daunia operations, sold to Whitehaven Coal during FY2024.
4. For FY2023, some of our employees did not identify as male or female (<0.1 per cent of total employees). These employees were excluded from data presented in the gender composition
graphs to protect the privacy of those employees.
Gender composition of employees, leaders and the Board
1,3,4
FY2024
FY2023
FY2025
Male
Female
Employees People leaders Executive leadership team Board members
58.7%
41.3%
62.9%
37.1%
64.8%
35.2%
63.5%
36.5%
68.3%
31.7%
70.3%
29.7 %
50%
50%
50%
50%
50%
50%
56%
44%
60%
40%
60%
40%
33Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Indigenous employment
Our Indigenous Peoples Policy Statement acknowledges our role in improving
economic outcomes for Indigenous peoples. We aim to achieve this through
our regional Indigenous Peoples Plans by providing opportunities for
employment, training, procurement and support for Indigenous enterprises.
We have set targets to increase Indigenous employment opportunities in
our Minerals Australia operations, Minerals Americas operations in Chile
and our Jansen potash project in Canada.
In FY2025, Minerals Americas operations in Chile increased their
Indigenous employee participation to 10.5 per cent, having achieved their
target of 10 per cent in FY2024. In Canada and Minerals Australia, we are
on track to achieve our targets in FY2026 and FY2027 respectively (see
the below infographic). Indigenous employee participation is a key metric
in the Indigenous partnerships pillar of our social value scorecard.
In FY2025, we identified opportunities in our employment ecosystem
to better support Indigenous Australians through our people processes,
including selection, development and career progression. In Minerals
Australia we also established a systematic network of Indigenous support
liaisons across our Australian assets to improve day-to-day experiences
for Indigenous employees and enhance leaders’ cultural competence.
In Canada, the BHP Potash Academy, graduate and student programs
are designed to help Indigenous peoples enter the mining industry.
Indigenous employee participation
1,2
Minerals Americas operations employees
in Chile
Time
period
Target
%
30 June 2025
%
YoY increase
%
By the end
of FY 2025
10.0 10.5 0.4
Minerals Australia operations employees
in Australia
2
Time
period
Target
%
30 June 2025
%
YoY increase
%
By the end
of FY 2027
9.7 9.0 0.7
Jansen potash project and operation
employees in Canada
Time
period
Target
%
30 June 2025
%
YoY increase
%
By the end
of FY 2026
20.0 17. 8 6.6
1. Point in time data at 30 June 2025.
2. Indigenous employee participation overall in Australia at 30 June 2025 was 8.2 per cent,
including Minerals Australia operations, 9.0 per cent Indigenous, and non-operational
locations, 2.0 per cent Indigenous.
For more information on our 2030 goals related to Indigenous
partnerships refer to OFR 9.12
Cultural diversity and racial equity
Racism has no place at BHP. We acknowledge racism’s impact on identity,
value, respect and psychological safety. We are working to promote racial
awareness in our workplace and recognise there is more still to do.
In FY2025:
– Our Inclusion and Diversity Champion, Chika Onyeogaziri, received
recognition from the Queensland Resource Council and Women in
Mining and Resource Queensland for her outstanding work fostering
inclusion and diversity.
– We developed our Indigenous Cultural Respect Framework (ICRF),
which drives cultural capability through learning experiences across
Minerals Australia.
– Employees around the world joined our International Day of Elimination
of Racism event.
LGBT+ inclusion
Our LGBT+ ally employee group, Jasper, is open to all our workforce
and is an extension of our inclusion and diversity aspirations to help our
employees develop a strong sense of belonging in and outside of BHP.
By the end of FY2025 its membership base grew to around 3,000. We are
the proud sponsors of Pride Western Australia, the Pinnacle Foundation
and Pride Professionals.
In FY2025, BHP in Australia was awarded gold status at the Australian
Workplace Equality Index Awards. In Chile, we achieved our second Human
Rights Campaign (HRC) Equidad certification for our commitment to LGBT+
inclusion and we were awarded the ‘Best Place to Work’ seal by the HRC.
Disability
In FY2025, BHP launched our global Disability Action Plan, aimed at
empowering our employees with disabilities. This plan is built around three
strategic pillars: people, culture and systems. The goal is to recognise the
unique needs and strengths of each person and to systematically eliminate
barriers, as part of our efforts to ensure equal participation for people with
disabilities in the workforce.
In Chile, legislation requires that our workforce comprises at least
1 per cent of people with disability. As of 30 June 2025, people with
disabilities represented 2.5 per cent of our Chilean workforce.
Support for employees affected by family and domestic
violence
BHP’s Family and Domestic Violence Assistance Program aims to
provide employees with support for their health, safety, wellbeing and
independence if they are experiencing family and domestic violence.
Support includes up to 10 days of paid leave per annum (in addition
to other leave entitlements) if they are affected by family and domestic
violence, or to support someone who is. Emergency accommodation,
emergency financial help and access to safety and security plans are
made available. Safety measures, such as transport to and from work,
changing location of work, setting up new phone numbers, screening/
blocking calls and emails, and access to legal advice are also considered
in this support.
Employee relations
In Australia, recent significant industrial relations legislative reforms have
introduced changes to the enterprise bargaining framework, which are having
an impact on BHP, including by increasing labour costs. Unions in WAIO have
unilaterally commenced bargaining. The Fair Work Commission will issue 13
Regulated Labour Hire Arrangement Orders that will require two labour hire
providers and Operations Services to pay their employees performing work
at BMA mines Goonyella Riverside, Peak Downs and Saraji mines at least
the relevant rate of pay in the BMA Enterprise Agreement 2022. As BHP
considers that Operations Services is a mining services contractor and so
is exempt from becoming subject to Orders, BHP is seeking Federal Court
judicial review of this outcome. An Order is already in effect at Mt Arthur Coal,
requiring a labour hire provider to pay at least the relevant rate of pay in the
Mt Arthur Coal Enterprise Agreement 2023. We will continue to monitor the
application of the reforms to further assess their impacts on BHP and our
contracting partners, including the potential impact on labour costs.
In Chile, pension reform was approved in January 2025. This will result
in a 7 per cent company contribution (pre-tax and additional to the current
1.5 per cent for disability insurance), which will be gradually increased over
nine years starting from August 2025. The 40-hour work week regulation,
enacted in April 2023, will continue its gradual implementation over
the next four years to transition from 45 to 40 working hours per week.
During FY2025, implementation occurred through agreements reached as
part of union negotiations. In June 2025, following a legal dispute regarding
a non-regulated bargaining process in 2019, Escondida was notified of a
ruling ordering the seizure of CLP $8.5 million in bonuses. Deductions to
impacted employees will occur for at least four months. Progress on various
other legal developments that may affect employee relations in Chile is
being monitored, including remuneration gender equity branch negotiation
regulation, and litigation seeking to treat various BHP entities as a single
employer for labour, social security and union purposes.
During FY2025, Minerals Australia participated in seven collective
bargaining processes, with three enterprise agreements completed.
There are 24 currently in operation, with a new agreement pending approval
from the Fair Work Commission and another new agreement in the early
stages of bargaining. In Minerals Australia, a small number of Operations
Services employees in our BMA operations took protected industrial action
during some shifts at various BMA sites over eight days between October
2024 and February 2025, causing minimal operational impact.
34 BHP Annual Report 2025
Minerals Americas in Chile reached collective agreements with two operators
and maintainers unions at Escondida. A third union of remote operators
moved to a regulated negotiation phase after an unregulated and voluntary
negotiation did not reach conclusion. Our Escondida operations experienced
no significant safety events and minimal operational and financial impact
during a three-day stoppage in FY2025.
In Canada, Minerals Americas have begun on-boarding the first cohort
of our Jansen potash project operational workforce to support readiness
for operations.
Payroll review
Review of employee allowances and entitlements
In FY2023, we identified and disclosed two issues with certain allowances
and entitlements affecting some current and former employees in Australia.
We self-reported these issues to Australia’s Fair Work Ombudsman (FWO).
We are sorry that this happened and we remain committed to making
this right.
In response to these issues, we formed a dedicated team to progress
a remediation program and begin a range of work to improve our global
pay performance and compliance.
Remediation of identified issues
We established a dedicated hotline and secure online portal to support
affected current and former employees and facilitate remediation transactions.
The first issue involved certain employees having leave incorrectly
deducted on public holidays. We identified approximately 35,500 current
and former employees who were affected by this issue, dating back to
2010. In addition to recrediting leave hours to approximately 19,000 current
employees, we have made payments to approximately 85 per cent (over
14,000) of affected former employees.
We have been working to locate and register affected former employees
for payment, including by direct letter, email and phone calls, social media
contact, and media advertising. Any remaining former employees who think
they may be affected by these issues but have not received communications
from us are encouraged to contact us via the hotline or portal available on
our website.
We are working to close out this issue, including associated impacts
relating to unpaid leave and coal long service leave. We expect to
complete this work in FY2026.
For more information refer to bhp.com/payroll-review
The second issue involved certain current and former employees at
WAIO in Port Hedland who are entitled to additional allowances. We are
continuing to pay additional allowances to affected current employees.
We have completed remediation payments to affected current and former
employees for historical impacts.
Improving our pay compliance
During the year we progressed with our multi-year, integrated program of
work to improve our global pay compliance, including embedding improved
governance and controls, and continuing to invest in the right capabilities
to meet the needs of the company into the future.
Global assurance firm, Protiviti, completed a review of our payroll systems
in FY2025 and their recommendations have been addressed in completed
or planned improvement work.
We also launched a new Pay Compliance Standard in FY2025 to support
improved pay governance and controls.
As part of this program, we are continuing historical pay assurance work
across our Australian operations and will conduct further remediation
as necessary.
Based on the currently available information, remediation costs remain
in line with the previously recognised US$280 million pre-tax, as reflected
in the Group’s FY2023 financial results.
This program of work will continue in FY2026. Our engagement with
the FWO and other relevant government agencies will continue as we
progress this work.
9.6 Health
We set mandatory standards to identify, assess and manage health
risks and their potential impacts, and monitor the health of our employees
and contractors.
Occupational exposures
BHP seeks to reduce occupational exposures to as low as reasonably
practicable. Where there is a potential for our employees and contractors
to be exposed to chemical and physical hazards, we implement controls
designed to prevent, minimise, and/or mitigate the likelihood and severity
of potential associated health impacts. These controls may include the
use of personal protective equipment (PPE) until appropriate, higher order
controls have been identified, implemented and verified to consistently
reduce exposure below occupational exposure limits (OELs).
Our OELs are set by reference to the level of permissible exposure for
a length of time to a chemical or physical hazard that is assessed as not
likely to affect the health of a worker, according to scientific evidence and
regulatory requirements.
Exposure data in this report is presented without considering the use
of PPE, which is required to be worn as outlined in our Health Global
Standard to reduce exposure.
In FY2025, we recorded an overall 13 per cent decrease in the number
of employees and contractors potentially exposed to diesel particulate
matter (DPM) and respirable crystalline silica (RCS) compared to FY2024.
This included a 73 per cent decrease in the number of employees and
contractors with potential exposure to DPM and a 35 per cent increase
in the number of employees and contractors potentially exposed to
RCS. The increase in potential RCS exposures is primarily due to the
inclusion of the recently acquired Copper South Australia operations
within BHP reporting. Opportunities to improve control frameworks and
hygiene practices at Prominent Hill and Carrapateena operations have
been identified. We are pursuing both short- and long-term initiatives
to reduce potential exposures, such as improvements to underground
ventilation systems.
We continue to implement exposure reduction plans for RCS at our
operated assets with a focus on engineering solutions to sustainably
control exposure. At BMA, dust extraction systems have been implemented
to remove dust build-up in mining haul truck electrical cabinets. Wet cleaning
methods and vacuum systems have been implemented at NSWEC to
reduce potential exposure for cleaning and maintenance teams. At WAIO,
portable extraction ventilation and dust suppression is in place for
drilling personnel.
From December 2026, new lower exposure limits based on Australian
legislation are expected to be adopted throughout Australia. We will continue
to monitor and assess the impact of OEL changes and implement
appropriate action as required.
We are committed to having no fatalities and life-threatening illness
events connected with occupational exposures at BHP, and managing
any risks of life-altering injuries and illnesses. Due to the latency between
initial exposure and diagnosis of disease for our most material airborne
contaminant exposures, we must continue to reduce potential exposure
and monitor the effectiveness of controls where reduction of potential
exposure is not reasonably practicable.
35Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Potential exposure reduction trend over time
1,2,3,4
900
600
300
1,200
1,500
FY2021 FY2022 FY2023 FY2024 FY2025
Coal mine dust exposures
Silica exposures DPM (Diesel) exposures
0
1. Prior year data (FY2021 to FY2023) excludes former OZ Minerals Australian assets (acquired
2 May 2023), which is included for FY2024 and FY2025. Prior year data (FY2021 to FY2023)
also excludes (entirely) divested operations as follows: BHP Mitsui Coal (divested on 3 May
2022) and BHP’s oil and gas portfolio (merger with Woodside completed on 1 June 2022).
2. Occupational exposure data is presented without considering protection from the use
of personal protective equipment (where required as outlined in the Health Global
Standard). The data excludes Projects.
3. As of FY2021, the OEL limit for Coal was reduced to 1.5 mg/m
3
compared to 2.0mg/m
3
in previous years.
4. As of January 2024, the OEL for welding fumes within Australia was reduced to 1mg/m
3
compared to 5mg/m
3
in previous years.
Occupational exposure hazard awareness and training is provided at
induction and periodically, including during fit testing for hearing protection
and respiratory protective devices. These devices are mandated for certain
job tasks as a control to reduce risk from potential exposure to relevant
hazards. After workers take part in occupational exposure assessment
programs, they receive written feedback on their results and anonymised
data is provided to line management.
Following the implementation of real-time monitoring at some of our operated
assets, we have improved data visibility through digital platforms to enhance
user experience and functionality. This helps our people to anticipate,
assess and verify effectiveness of occupational exposure controls.
Occupational illness
The reported occurrence of occupational illness for employees in FY2025
was 319, or 4.64 per million hours worked. This represented a 14 per cent
increase compared with FY2024. For our contractor workforce, the reported
occupational illness in FY2025 was 234, or 1.94 per million hours worked,
a 8 per cent increase from FY2024.
Musculoskeletal illness was the predominant occupational illness for
employees and contractors, representing 64 per cent of our workforce
illnesses in FY2025. This includes damage to bones, joints, ligaments,
tendons and soft tissues caused by repetitive heavy work, muscular strain
or maintaining poor postures for extended periods of time.
Noise-induced hearing loss represented 10 per cent of occupational illnesses
in FY2025. Employees and contractors exposed to noise levels above the
defined workplace exposure limits in our Health Global Standard participate
in hearing conservation programs, which include a periodic hearing test
and hearing protection fit testing. We have implemented established design
recommendations that seek to eliminate or reduce high or prolonged noise
exposures as far as reasonably practicable by focusing on the noise source.
Heat stress contributed to 4 per cent of our reported occupational illnesses
in FY2025. Elevated temperatures and strenuous activity place some of our
workforce at increased risk of heat illness. High-risk work groups are identified,
and controls are in place to manage heat stress. Hydration testing is in place
at operations with high heat risk. Our operated assets exposed to extreme
climatic conditions have additional support to help prevent heat-related illness.
Coal mine dust lung disease
We have controls in place at all our relevant operated assets with the goal
of ensuring no employees or contractors are exposed to respirable coal
mine dust (CMD) above the OEL. We continue to identify and progress
projects, such as enhancing our real-time dust monitoring, to identify when
the working environment may present a hazard, allowing us to address
the issue. We prioritise controls that are most effective, such as dust
suppression and dust extraction engineering controls, to eliminate or reduce
potential exposures as far as reasonably practicable instead of relying on
controls that are less effective, such as respiratory protection. We have
observed consistent control of CMD exposures with no employees or
contractors potentially exposed to CMD above the OEL since FY2021.
In FY2025, 21 cases of coal mine dust lung disease (CMDLD)
1
were
reported to the Workers’ Compensation Regulatory Services.
2
There was
one claim accepted for a current BHP employee. For cases involving current
employees, we offer counselling, medical support and redeployment options
where relevant. Former employees may be eligible for workers’ compensation
insurance and their associated care is managed externally to BHP.
Physical and mental health
The physical and psychological health and wellbeing of our workforce is
paramount. We continue to enhance the inclusivity and future-readiness
of our employees and contractors. We engage with initiatives such as
‘Minding Mining Minds’, which aims to develop tools and evidence-based
models to build capability and share these learnings across industry, along
with the Building Safe and Respectful Workplaces (BSRW) program, which
strives to eliminate disrespectful behaviour in the resources industry,
including sexual harassment, bullying and racism. In FY2025, we included
the BSRW education into our global onboarding training, and we refreshed
Our Code of Conduct training.
We acknowledge the importance of effective fatigue management both
at home and in the workplace. Fatigue is a known risk factor for workplace
accidents and incidents. Our operated assets have fatigue management
plans in place to provide guidance on how to manage and control risks
associated with human fatigue. Key controls include managing work hours
and providing sufficient opportunity for sleep, rest and recovery, along with
self-assessment fatigue forms, monitoring of fatigue-related symptoms and
reporting fatigue-related hazards where appropriate.
Psychosocial harm
We manage psychosocial harm as a health and safety risk for BHP.
We have developed an organisation-wide psychosocial risk framework which
helps our people identify and give feedback on their work environment and
the psychosocial hazards they face and how they may impact psychological
and physical health, to help us identify where harm may be occurring.
Responsibility for managing psychosocial risk (including sexual
harassment and racial harassment) is shared within BHP. The Group
Health team is accountable for:
– performing second-line assurance of BHP’s performance against this risk
– engaging with industry to share and learn best practice
– supporting our operated assets and functions to progress improvements
to control psychosocial risk
Risk management
Psychosocial harm risk assessments identify scenarios in which
psychosocial hazards like sexual, racial or gendered harassment may
arise, their potential causes and the controls we can implement to prevent
and reduce the risk of harm as far as reasonably practicable.
Some of our embedded psychosocial risk preventative and mitigating
controls include:
– mandatory training in our Our Code of Conduct for employees
and contractors, with a focus on enacting and maintaining
respectful behaviours
– setting clear cultural expectations and leadership responsibilities
– enhanced security at accommodation villages
– alcohol management policies
– data transparency and action
– person-centred response and support
– accessible and confidential reporting options and investigations,
including multiple resolution options
– appropriate and proportionate disciplinary action
1. CMDLD is the name given to the lung diseases related to exposure to coal mine dust
and includes coal workers’ pneumoconiosis, silicosis, mixed dust pneumoconiosis and
chronic obstructive pulmonary disease.
2. Cases reported to Workers’ Compensation Regulatory Services are not an indication
that the CMDLD was related to work. BHP evaluates each case for work-relatedness
and, where identified, the case will be included in occupational illness reporting.
36 BHP Annual Report 2025
During FY2025, we moved to a new global Employee Assistance Program
(EAP) provider, Converge International. Converge International provides
a dedicated panel of psychologists who are trained in trauma-informed
practices, each with more than five years of experience working with
individuals impacted by sexual harassment.
The new EAP provider also offers a broader range of holistic support services,
including nutritional, career, financial, and legal counselling. This has
enabled us to introduce specialist helplines, such as for domestic violence,
Indigenous employee support and LGBT+ hotlines.
For more information refer to cultural diversity and racial equity
in OFR 9.5.
Sexual harassment
Sexual harassment has been defined as a health and safety risk at BHP
since CY2018. In FY2025, we integrated sexual harassment into a broader
focus on psychosocial harm risk.
Sexual harassment is completely unacceptable at BHP. We focus on
preventing sexual harassment by addressing the contributing factors
while strengthening our ability to respond to incidents and intervene early.
We consider impacted people at the centre of our response and seek to
ensure they are supported and empowered. More broadly, we continue
to build awareness and capability in psychosocial hazard identification
and management into the way we work. We expect our employees and
contractors to identify and call out disrespectful or harmful behaviours,
including bullying, racism and sexual harassment.
BHP’s strategy to eliminate sexual harassment is underpinned by the
Australian Human Rights Commission Guidelines for Complying with the
Positive Duty under the Sex Discrimination Act 1984 (Cth). In developing our
strategy, we sought guidance from external experts, such as Kristen Hilton,
Kate Jenkins AO along with the Queensland University of Technology.
Reports of sexual harassment and racial harassment
We encourage our workforce to report any concerns relating to disrespectful
behaviours. We provide centralised and confidential reporting tools and
mandatory reporting requirements for line leaders who are informed of
serious concerns.
Reports of sexual harassment and racial harassment are investigated by
our specialised Response and Investigations team, which is a business
unit independent of our operations. This team includes personnel trained
in responding with a trauma-informed and person-centred approach.
There was a 3 per cent increase of reports of sexual harassment from 417
in FY2024 to 429 in FY2025 and a 6 per cent decrease of reports of racial
harassment from 109 in FY2024 to 103 in FY2025.
1
These behaviours are
unacceptable and BHP is continuing to work towards eliminating them.
In FY2025, 53 per cent of sexual harassment reports and 52 per cent of racial
harassment reports received into BHP’s misconduct reporting channels were
logged by managers or leaders on behalf of the workforce.
During FY2025, 102 cases of sexual harassment
2
and 24 cases of racial
harassment were established following investigation across BHP’s global
operations, including conduct on-site, off-site and in offices.
3
100 individuals responsible for sexual harassment and 20 responsible for
racial harassment had their employment terminated (or were removed from
site if a contractor) or resigned.
Of the 102 established sexual harassment cases:
– nil involved sexual assault
– 31 involved sexualised and indecent touching
– 36 involved sexually aggressive comments, stalking, grooming
or image-based harassment
– 33 involved other forms of sexual harassment, including sexualised
conversations or jokes
– 1 involved gender-based harassment
– 1 involved creating a hostile work environment based on sex
1. FY2024 and FY2025 data includes all former OZ Minerals Australian assets and OZ Minerals Brazil assets.
2. Sexual harassment is, as defined in the Sex Discrimination Act 1984 (Cth), an unwelcome sexual advance, unwelcome request for sexual favours or other unwelcome conduct of a sexual
nature, in circumstances where a reasonable person, having regard to all the circumstances, would have anticipated the possibility that the person harassed would be offended, humiliated
and/or intimidated. Sexual harassment encompasses a range of conduct, including displaying sexually graphic images, sexually suggestive comments, suggestive or inappropriate looks,
gestures or staring, non-consensual touching or acts of a sexual nature and sexual assault. We note the definition of sexual harassment may vary in different jurisdictions.
3. This figure includes cases opened in FY2025 or earlier and closed in FY2025.
4. This excludes reports not containing a business conduct concern.
5. FY2024 and FY2025 data includes all former OZ Minerals Australian assets and OZ Minerals Brazil assets.
6. This excludes reports logged by leaders on behalf of others.
People who may have been impacted by sexual harassment and racial
harassment are offered specialised support by the Ethics Support Service.
The impacted person’s preferences as well as the type and severity of
the alleged misconduct are considered in determining the appropriate
response, which may include an investigation, training, mediation, facilitated
conversations and line leader intervention. Consistent with this, in FY2025 65
reports of sexual harassment and 24 reports of racial harassment were dealt
with through non-investigative resolution pathways, instead of an investigation
being conducted. There were also 141 reports of sexual harassment and
27 reports of racial harassment that were not investigated due to insufficient
information or the wishes of the impacted person. Examples include
anonymous reports and non-participation of the impacted person.
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.
For more information, refer to bhp.com/sustainability/safety-
health/sexual-harassment
9.7 Ethics and business conduct
Our conduct
Our Code of Conduct (Our Code) helps us deliver on our purpose and
make better decisions every day. It applies to everyone who works for us,
with us or on our behalf. In March 2025, we relaunched a simplified and
streamlined version of Our Code designed to support clearer values-driven
decision-making.
To assist our employees and contractors to understand how Our Code
applies, regular mandatory training is undertaken. Breaching Our Code
can result in serious consequences, including counselling, warnings and
termination of employment. We encourage people to speak up where
a decision or action is not in line with Our Code or Our Values.
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
and grounds for disciplinary action, up to and including termination of
employment. 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 accessible
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 accessible 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 the 24-hour, multilingual call service.
Reports received are assessed by the Ethics and Investigations team,
and where necessary the Legal or Compliance teams, to determine
an appropriate response, which may include an investigation or other
routes to resolution. In assessing this, BHP applies a proportionate and
person-centred approach considering all participants. To continually improve
our response to reports, feedback is regularly obtained from stakeholders,
including case participants, external experts and management.
Senior leaders and the Risk and Audit Committee of the Board receive
quarterly reports including case metrics, outcomes and insights.
In FY2025, 3,515 reports were received into BHP’s channels for raising
misconduct concerns.
4,5
Of the total reports:
– 37 per cent were raised by leaders on behalf of someone else.
– Of the cases raised directly, 40 per cent were made anonymously.
6
37Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Of the reports closed during FY2025, 33 per cent contained one or more
established allegations.
1
Business conduct concerns raised in FY2025
2,3
Disrespectful behaviours (including
harassment and bullying) (1,873) 53.3%
Sexual harassment (429) 12.2%
Health, safety or environment
breach (341) 9.7%
Fraud (341) 9.7%
Discrimination (188) 5.4%
Cybersecurity, data privacy or
intellectual property breach (153) 4.3%
Racial harassment (103) 2.9%
Other* (87) 2.5%
* Other: This includes issues such as Retaliation for speaking up; Consensual relationship
with power imbalance; Failure to Report Code of Conduct Breach; Attempting to identify
an anonymous reporter; Improper political or governmental conduct; Trade control
breach; Inappropriate investigator conduct in business conduct investigation.
We have seen a 35 per cent decrease of harassment and bullying reports
received from 2,870 in FY2024 to 1,873 in FY2025.
2,3
BHP continues with
ongoing focus on awareness, training and early resolution, supported
by the development of a centralised site for information and guidance,
contributing to consistent and informed reporting.
Anti-corruption
We continue our commitment to contribute to the global fight against
corruption in the resources industry. Our commitment to anti-corruption
is embodied in Our Charter and Our Code.
To manage corruption risk, we work to achieve optimal resource allocation to
areas of our business with the highest exposure to corruption risks. Identifying,
assessing and managing corruption risks associated with growth opportunities
remains a significant area of focus for our Compliance function. A sub-team is
dedicated to supporting functions that are responsible for initiating transactions
and growth opportunities in countries with higher corruption risks.
Activities that potentially involve higher exposure to corruption risk
require review or approval by our Compliance function, as documented
in our anti-corruption compliance framework. In FY2025, we continued
conducting monitoring focused on verifying the operation of anti-corruption
controls in relation to higher risk relationships and activities, including
the provision of community donations and sponsorships, identification
and management of corruption risks relating to government officials and
community leaders in the context of local procurement, and sole source
procurement decisions. The monitoring utilises data analytics and AI to
increase the effectiveness of the monitoring.
1. This figure includes cases opened in FY2025 or earlier and closed in FY2025.
2. This excludes reports not containing a business conduct concern.
3. FY2024 and FY2025 data includes all former OZ Minerals Australian assets and OZ Minerals Brazil assets.
4. This data includes OZ Minerals Brazil assets.
In the newly merged Ethics, Compliance and Human Rights team,
Compliance remains independent of our assets and regions. Our Chief
Ethics, Compliance and Human Rights Officer reports quarterly to the
Board Risk and Audit Committee on compliance issues and meets at
least annually with the Risk and Audit Committee Chair.
The Compliance team also participates in anti-corruption risk assessments
of our operated assets or functions, our interests in non-operated assets
and new business opportunities that may be exposed to material corruption
risks. In FY2025, the team provided input into 21 anti-corruption
risk assessments.
Anti-corruption training is provided to all employees and contractors as part of
mandatory regular training on Our Code. Our Compliance team also regularly
engages with identified higher risk roles and provides additional risk-based
anti-corruption training for employees, contractors and employees of some
of our business partners and community partners. In FY2025, we deployed
an updated anti-corruption electronic learning module, which incorporates
new scenarios designed to reinforce understanding and support learning.
In FY2025, additional risk-based anti-corruption training was undertaken
by 1,675 employees and contractors.
4
For more information on ethics and business conduct
refer to bhp.com/ethics
Transparency and accountability
We support initiatives by governments of the countries where we
operate to publicly disclose the content of our licences or contracts
for the development and production of minerals that form the basis of
our payments to government, as outlined in the Extractive Industries
Transparency Initiative (EITI) Standard.
We believe knowing who ultimately controls and benefits from a company
helps to mange risk and strengthen accountability. In FY2025, we
continued our support for ultimate beneficial ownership transparency
consistent with applicable regulation, listing requirements and other
expectations for EITI supporting companies. We publish information
about how we use beneficial ownership information in our anti-corruption
processes (refer to bhp.com/sustainability/ethics-business-conduct).
In parallel, we continued to publish our list of entities in which BHP
Group Limited’s effective interest is 100 per cent and certain entities in
which BHP Group Limited’s effective interest is less than 100 per cent,
including all controlled subsidiaries operating in the mining sectors, all
mining operations joint ventures generating material revenue for BHP
(and available information in relation to the other legal owners in these
joint ventures) and entities in which we hold a partial interest (with some
exclusions – refer to bhp.com/sustainability/ethics-business-conduct).
Other initiatives include our representation on the Board of the EITI
and financial support for Steering Committee membership of the
Bribery Prevention Network (in Australia).
9 Sustainability continued
38 BHP Annual Report 2025
9.8 Climate change
We believe the warming of the climate is unequivocal, human influence is
clear and physical climate-related impacts are unavoidable. We recognise
the role we play in supporting the net zero transition the world must make.
For our full position on climate change refer to bhp.com/climate
Our disclosures and approach to reporting
Climate Transition Action Plan
In August 2024, we published our second Climate Transition Action
Plan (CTAP 2024) that provides an overview of our climate change
strategy, commitments, targets and goals and forward-looking plans.
Our CTAP 2024 was approved by the Board, with its development and
ongoing implementation governed by the Board and its Committees and
management. This OFR 9.8 updates certain aspects of our assumptions and
plans since our CTAP 2024 and describes our progress in FY2025 against
the strategy and our GHG emissions targets and goals, commitments
and key metrics. The climate change targets and goals published in our
CTAP 2024 are unchanged. Financial Statements note 16 ‘Climate change’
describes certain potential financial statement impacts, where material
or relevant, of the assumptions, plans and actions of our climate change
strategy and the consideration of climate-related risks in the assessment
of significant areas of judgement and estimation in the financial statements.
Our CTAP 2024 is available at bhp.com/CTAP2024
Navigating our disclosures
TCFD recommended disclosures
Our response
Supplementary
information
This Report: Operating
and Financial Review
This Report: Corporate
Governance Statement
& Remuneration Report
This Report: Financial
Statements
Climate Transition
Action Plan 2024
Governance: Disclose the organisation’s governance around climate-related risks and opportunities.
1
a) Describe the board’s oversight of climate-related
risks and opportunities
Pages 30 and 40 Pages 87 to 100 – –
b) Describe management’s role in assessing and
managing climate-related risks and opportunities
Page 30 Pages 96 to 100 – –
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
Pages 44 to 48
Pages 66 to 71
– Pages 148 to 151 Recommended
disclosures (a) & (b):
Pages 10 to 18
2
Pages 19 to 30
Recommended
disclosures (b) & (c):
Pages 31 to 38
Page 61
Page 62
b) Describe the impact of climate-related risks and
opportunities on the organisation’s businesses,
strategy, and financial planning
Pages 39 to 53
Pages 66 to 71
– Pages 148 to 151
c) Describe the resilience of the organisation’s strategy,
taking into consideration different climate-related
scenarios, including a 2°C or lower scenario
Pages 46 to 48 – Pages 148 to 151
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
Pages 25 and 26
Pages 44 and 45
– – –
b) Describe the organisation’s processes for
managing climate-related risks
Pages 25 and 26
Pages 44 and 45
– – –
c) Describe how processes for identifying, assessing,
and managing climate-related risks are integrated into
the organisation’s overall risk management
Pages 25 and 26 – – –
Metrics and Targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
a) Disclose the metrics used by the organisation to
assess climate-related risks and opportunities in
line with its strategy and risk management process
Pages 48 to 53 Pages 104 to 112 – –
b) Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 GHG emissions, and the related risks
Pages 48 to 53 – – –
c) Describe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets
Pages 48 to 53 – – –
1. ‘Risks and opportunities’ is the language adopted in the TCFD recommended disclosures, while under our Risk Framework we regard ‘risks’ as comprising both threats and opportunities.
2. Refer to the updates in Pathways to our medium-term target and long-term net zero goal and Key changes to our projected pathway to our medium-term target and potential pathways to
our long-term net zero goal since CTAP 2024 in this OFR 9.8.
Given the global nature of our business, customers and supply chain, the
development of our CTAP 2024 considered the goals of the Paris Agreement
and the commitments and policy settings of relevant key jurisdictions at the
time. Our global headquarters and some of our assets are located in Australia,
which has a Long-Term Emissions Reduction Plan and legislated national
targets to reduce Australia’s net GHG emissions to 43 per cent below CY2005
levels by CY2030, and to achieve net zero GHG emissions by CY2050.
We continue to monitor and take into consideration the evolving policy and
regulatory landscape applicable to our operations as part of the periodic
review by management and the Board of the appropriateness of and our
progress towards our GHG emissions targets and goals.
TCFD-consistent disclosures
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 disclosures table on this page sets out the TCFD’s
recommended disclosures, grouped under the four recommendations,
and where our aligned disclosures can be found within this Report (refer
to the Our response columns).
To provide additional detail to supplement our TCFD recommended
disclosures in this Report, we refer to certain information in our CTAP
2024 (which should be considered in the context of the CTAP 2024 as
a whole, together with the updates and our progress in FY2025 provided
in this Report), as set out in the Supplementary information column of the
Navigating our disclosures table on this page.
For more information on our alignment with other climate-related
sustainability and ESG standards refer to the BHP ESG Standards
and Databook 2025 available at bhp.com/ESGSD2025
39
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
1. There may be differences between our annual total operational GHG emissions inventory (unadjusted inventory) and the GHG emissions we measure for the baseline year, reference year
and performance for our operational GHG emissions medium-term target and long-term net zero goal, resulting from different approaches to the treatment of divestments, acquisitions and
methodology changes based on the purpose for which the data is being reported.
– We also began studies and engagements to trial and test methane
gas extraction techniques for our open-cut metallurgical coal mining
operations with potential to reduce the fugitive emissions that occur
when methane contained within and near coal seams is released during
the mining process.
– In FY2025, we continued construction of a boiler diesel displacement
solution at Escondida, planned to commence operating in FY2026.
This solution will replace diesel-fired boilers with a heat source
(combining a thermo-solar and electric boiler solution) that does not
generate any GHG emissions from operation of the boiler or generation
of its electricity supply due to Escondida’s 100 per cent renewable
energy PPAs. We also expect to commence construction of the same
type of solution at Spence during FY2026.
– We also continued the operational trial of our first electric Liebherr R9400
excavator at WAIO’s Yandi mine and increased our understanding of the
potential changes to operations required for larger-scale deployments.
– We partially met our FY2025 social value scorecard Decarbonisation
pillar milestone to ‘commence proof-of-concept trials for battery-electric
equipment in collaboration with original equipment manufacturers’ through
the preparation of the Caterpillar (CAT) Early Learner battery-electric haul
truck trial, planned for commencement in FY2026. We expect delivery
of the battery-electric locomotives in FY2026, followed by commissioning
and the commencement of trials. These are important activities to enable
our progress towards diesel displacement and the electrification of
vehicles and mining equipment to continue despite broader delays in
the development of diesel displacement technology, as discussed below.
– In addition to our existing partnerships with Caterpillar and Komatsu, we
have announced an exploration of opportunities with XCMG, CATL and
BYD for the supply of electric mining equipment and the latest in battery
technology for mining equipment, locomotives, light vehicles and battery
storage systems.
– In July 2019, we committed to establishing a Climate Investment
Program (CIP) by investing at least US$400 million over its five-year life
to scale-up low emissions technologies that can help decarbonise our
operations, drive investment in nature-based solutions, and encourage
further collective action on Scope 3 emissions. The CIP commenced in
July 2020 and finished in June 2025. During that time, BHP spent more
than US$400 million on decarbonisation projects across operational
GHG emissions, value chain decarbonisation and climate-related
BHP Ventures investments.
Operational GHG emissions (Scopes 1 and 2 emissions
from our operated assets)
Medium-term
target:
Reduce operational GHG emissions (Scopes 1 and
2 emissions from our operated assets) by at least
30 per cent by FY2030 from an FY2020 baseline.
Long-term
net zero goal:
Achieve net zero operational GHG emissions (Scopes 1
and 2 emissions from our operated assets) by CY2050.
Performance, adjusted
5.0
10.0
15.0
20.0
0
MtCO
2
-e
FY2020 FY2021 FY2022 FY2023 FY2025FY2024
8.7
13.6
Value chain GHG emissions (Scope 3 emissions) –
Overall
Long-term
net zero goal:
We have a long-term goal of net zero Scope 3 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.
Performance, adjusted
125.0
250.0
375.0
500.0
0
MtCO
2
-e
FY2020 FY2021 FY2022 FY2023 FY2025FY2024
378.2
352.0
For information on the essential definitions, assumptions, GHG emissions boundaries, measurement approach and adjustments for this medium-term
target and these long-term net zero goals, including the potential use of offsetting, refer to Climate-related metrics, targets and goals in this OFR 9.8
Climate-related governance
Climate change and climate transition planning is a material governance and
strategic issue for BHP, our Board and management as described in OFR 9.2.
For more information on our governance of climate-related matters
including risks (threats and opportunities) refer to our Corporate
Governance Statement and Remuneration Report
Operational GHG emissions (Scopes 1 and 2
emissions from our operated assets)
Performance and highlights
– Based on what we know today and using current methodologies for
GHG emission accounting, we remain on track to meet our medium-term
target to reduce operational GHG emissions (Scopes 1 and 2 emissions
from our operated assets) by at least 30 per cent by FY2030 from an
FY2020 baseline (baseline year and performance data adjusted; for
more information on the adjustments we make refer to Climate-related
metrics, targets and goals in this OFR 9.8). We have not used carbon
credits or applied offsetting in our assessment that we are on track to
meet our medium-term target.
– For FY2025, our operational GHG emissions were 36 per cent lower
than our FY2020 baseline, a further 4 percent improvement against
our FY2020 baseline compared to 32 per cent in FY2024 (baseline
year and performance data adjusted). Operational GHG emissions in
FY2025 were 8.7 MtCO
2
-e, which is 5 per cent less than operational
emissions of 9.2 MtCO
2
-e in FY2024 (performance data adjusted).
1
Emissions reductions were largely driven by Western Australia Nickel
operations going into temporary suspension and ongoing Power Purchase
Agreements (PPAs) in execution. For more information on the calculation
of our operational GHG emissions data and energy consumption data refer
to Climate-related metrics, targets and goals in this OFR 9.8.
– Our total operational energy consumption decreased by 7 per cent
from FY2024, largely due to the temporary suspension of Western
Australia Nickel.
– Our Chilean operations are on track to achieve 100 per cent renewable
electricity use in CY2025, as they have each calendar year since CY2022.
– In FY2025, we signed a new seven-year PPA to achieve 100 per cent
renewable energy at BMA from FY2027, based on forecasted operational
electricity demand and when combined with another renewable PPA
signed in 2023.
– We commenced our planned drilling program at BMA during FY2025 to
obtain a deeper understanding of methane quality and quantity (in both
magnitude and density). This is earlier than outlined in our CTAP 2024
(FY2026/27).
40 BHP Annual Report 2025
Pathways to our medium-term target and long-term
net zero goal
As we have previously disclosed, our progress towards our operational GHG
emissions medium-term target and long-term net zero goal is expected to be
non-linear. Progressing towards net zero operational GHG emissions depends
on the availability, capability and competitiveness of low emissions technology.
We are working to accelerate and de-risk the technology we need to be able
to continue safe, reliable operations while reducing operational emissions in
pursuit of our long-term net zero goal.
To achieve our medium-term target, we are taking the following actions:
– procuring renewable and other low to zero GHG emissions electricity
– working to minimise the increase in operational GHG emissions from
organic production growth and new operational sites
– working towards a reduction in risk exposure to diesel displacement
solutions through testing, piloting and de-risking battery-electric haul
truck technology, battery-electric locomotives, and the electrification
of excavators and other diesel equipment
– pursuing solutions to abate fugitive methane emissions
– planning to meet our medium-term target through structural GHG emissions
abatement instead of offsetting. We will not use carbon credits surrendered
to meet regulatory compliance obligations (i.e. those used for compliance
under regulatory schemes, such as the Safeguard Mechanism in Australia)
to meet our medium-term target
Our projected pathway, as shown in the chart below, does not include
use of voluntary carbon credits
1
to meet our medium-term target. However,
if there is an unanticipated shortfall in our pathway, we may need to use
voluntary carbon credits that meet our integrity standards to close the
performance gap.
For more information on the difference between regulatory and
voluntary carbon credits, and our integrity standards for voluntary
carbon credits refer to Carbon offsetting available at bhp.com/climate
Our potential pathways to our operational GHG emissions long-term net
zero goal beyond FY2030 will require:
– displacement of diesel emissions from mining equipment/vehicles
(e.g. haul trucks, locomotives, excavators)
– production or procurement of additional renewable and other low to zero
GHG emissions electricity to transition to and maintain 100 per cent low to
zero GHG emissions electricity. Additional renewable and other low to zero
GHG emissions electricity will also be needed to support the increased
demand for electricity that we anticipate will be needed to displace diesel
consumption as we electrify mining equipment and vehicles
– management and abatement of fugitive methane emissions to the
greatest extent technically and commercially viable, through enhanced
application of existing or emerging technology
1. We define voluntary carbon credits to mean carbon credits generated through projects that avoid, reduce or remove GHG emissions outside the scope of regulatory compliance (including
Australian Carbon Credit Units not used for regulatory compliance).
2. Future GHG emission estimates are based on current annual business plans (excluding OZ Minerals Brazil assets). FY2020 to FY2025 GHG emissions data has been adjusted for acquisitions,
divestments and methodology changes. ‘Other changes’ refers to changes in GHG emissions from energy consumption other than electricity. ‘Organic growth’ represents the increase in GHG
emissions associated with planned activity and growth at our operations. ‘Other sources’ refers to GHG emissions from fugitive CO
2
and methane emissions, natural gas, coal and coke, fuel oil,
liquefied petroleum gas or other sources. GHG emissions calculation methodology changes may affect the information presented in this chart. ‘Range of uncertainty’ refers to higher risk options
currently identified that may enable faster or more substantive decarbonisation but which currently have a relatively low technology readiness level or are not yet commercially viable.
Key changes to our projected pathway to our medium-term
target and potential pathways to our long-term net zero goal
since CTAP 2024
Our operational GHG emissions target and goal remain unchanged from
prior years. Our pathway in coming years is complicated by factors including
projected organic changes (i.e. arising from our existing business) in our
production of commodities and the current lack of available technology
solutions to support rapid GHG emission reductions for diesel displacement
and fugitive methane abatement.
Many of the technologies we will need to achieve our long-term net zero
goal are not yet ready to be deployed. A pathway between our medium-term
target in FY2030 and our long-term net zero goal in CY2050 will require
a significant technological step change in safety, reliability, operability,
commercial availability and economics, and the pace of development
of some decarbonisation technology has slowed since we published our
CTAP 2024, as described below. We will continue to actively assess options
and partnerships as technology readiness progresses and seek to optimise
our plans as we maintain pursuit of our long-term net zero goal. We do
not expect the technology delays to materially impact our plans to achieve
our FY2030 medium-term target as we expect PPAs to provide sufficient
abatement to meet the target.
In Figure 1.2 of our CTAP 2024, we published our operational GHG emissions
reduction projected pathway to FY2030 and potential pathways between
FY2031 and CY2050. The outcomes of our most recent annual planning
process since then, reflecting technology delays, have resulted in the
following primary updates to Figure 1.2 of our CTAP 2024:
– A delay in all projects for diesel displacement for materials movement
and their associated GHG emissions abatement. Due to the low
technology readiness level of the products, our Original Equipment
Manufacturers (OEMs) are adapting their products to ensure they are
technically, commercially and operationally viable. This has resulted in a
delay to the previously projected timeframes and we now expect to adopt
diesel displacement technologies at scale in our operations post FY2030.
– Safe and successful trials are an essential enabler of our ability to
confidently scale and deploy the technologies required to decarbonise
our operations. We will continue to progress existing trials and pursue new
opportunities where products have reached a suitable technology readiness.
– These delays will impact our previously projected timelines for deploying
battery-electric heavy mobile equipment and locomotives at WAIO.
– The delays to adoption of electrified fleet at scale similarly delay the
associated electricity demand, which will also impact timing for our
interdependent low to zero GHG electricity investments.
– A delay in the deployment of trolley assist at Escondida and Spence
to post FY2030.
Projected pathway to our medium-term target for operational GHG emissions (Scopes 1 and 2 emissions from
our operated assets)
2
Operational GHG emissions (million tonnes of carbon dioxide equivalent (MtCO
2
-e)) (adjusted for acquisitions, divestments and methodology changes)
12
4
8
0
16
Diesel
Electricity
Organic growth
Other sources
Forecast
Range of uncertainty
Other changes
FY2020 Electricity:
Chile
Electricity:
Australia
Other
changes
FY2025 Organic
growth
New
PPAs
Other
sources
Diesel FY2030F
41Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
– The commercial operations of the Port Hedland solar farm and battery
energy storage system (BESS), which connects to the existing
Port Hedland power station and supplies WAIO’s port facilities under
a PPA, commenced in July 2025 following completion of construction
activities in CY2024.
– While the key changes to our projected and potential decarbonisation
pathways are the timeline deferrals described above, the potential variability
around the scale and timing of abatement as we progress towards our
goal of net zero by CY2050 (shown in Figure 1.2 of our CTAP 2024 as
the ‘range of uncertainty’) also increases. This is due to greater uncertainty
of technology and commercial readiness of diesel displacement options
as well as our additional insights into the operational integration challenges
presented by a change as complex and far-reaching as large-scale
electrification. Operational integration challenges include safety-related
risks associated with high-voltage direct current batteries, integration
of cable management of tethered equipment, inter-operability challenges
between different voltages, requirements for integration with automation,
and the extent of workforce skills and training required.
Capital allocation
Capital allocation towards operational GHG emission reduction projects is
considered as part of the maintenance capital category within our Capital
Allocation Framework (CAF) (described in OFR 3), 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. This enables consideration of a risk assessment across qualitative
and quantitative criteria relevant to each capital allocation decision. However,
an important principle within the CAF prioritises operational GHG emission
reduction projects prior to organic development and the other options for
excess cash flow (shown in OFR 3) where they are critical in supporting the
achievement of our operational GHG emissions medium-term target and
long-term net zero goal. Individual operational GHG emission reduction
projects must justify the investment based on abatement efficiency,
technology readiness, maturity, operational impact and relative economics.
Operational GHG emission reduction projects are incorporated into
our corporate planning processes that include review of our mine plans,
which are critical to creating alignment across BHP. These processes
guide the development of plans, targets and budgets to help us decide
where to deploy our capital and resources. We have several Investment
Review Committees that assist our decision-makers with review of proposed
investments. The appropriate Investment Review Committee, based on
investment size and any complexity elements, provides endorsement for
whether to progress operational GHG emission reduction projects based
on qualitative and quantitative measures. Our Quarterly Business Review
forums in each region also review and update strategic direction and tactical
progress on operational GHG emission reduction. Execution is monitored
through periodic reporting to senior leaders and project sponsors on key
performance indicators.
For FY2025, our incremental capital expenditure, operating expenditure
and lease payments on initiatives associated with operational GHG emission
reductions was approximately US$50 million.
1
As indicated in our April 2025 Quarterly Operational Review and noted above,
the pace of development of some decarbonisation technology has slowed,
particularly in the displacement of diesel used for materials movement.
As a result, we have updated our approach to capital and operational
expenditure on decarbonisation based on the viability of commercially
available technology. The introduction of diesel displacement technology into
our operations accounted for most of our previously allocated operational
decarbonisation expenditure in the decade to FY2030 and this expenditure
will now be delayed into the 2030s. The revised estimate of spend to execute
BHP’s operational decarbonisation plans over the decade to FY2030 is
US$0.5 billion (reflecting capital expenditure and lease payments).
As technology readiness progresses, BHP anticipates our continued
decarbonisation efforts will result in spend of at least US$4 billion in the
2030s. We will continue to prioritise the decarbonisation of our business
activities and explore alternative decarbonisation projects subject to their
satisfying our capital allocation hurdles. We will continue to work closely with
our Original Equipment Manufacturer partners to advance diesel displacement
technologies, including by investing in site-based trials, so that additional
decarbonisation expenditure can again be allocated to the introduction of
this critical technology as soon as practicable. We remain on track to meet
our medium-term target to reduce operational GHG emissions (Scopes 1
and 2 emissions from our operated assets) by at least 30 per cent by FY2030
from an FY2020 baseline (baseline year and performance data adjusted.
For more information on the adjustments we make refer to Climate-related
metrics, targets and goals in this OFR 9.8).
For more information on expenditure to support operational GHG emission
reductions refer to Financial Statements note 16 ‘Climate change’
1. The calculation of this amount is considered on an incremental basis, referring to the
incremental cost to facilitate BHP’s reduction in operational GHG emissions. For example,
in a circumstance where a diesel-powered excavator is due for replacement, the incremental
decarbonisation cost would be the difference between the cost of replacing it with a like-for-
like diesel model versus the cost of replacing it with an electric alternative. This differential
represents the additional investment made for the purpose of reducing operational
GHG emissions.
2. There may be differences between our annual reported Scope 3 emissions inventory
(unadjusted inventory) and the GHG emissions we measure for the baseline year,
reference year and performance for our value chain GHG emissions medium-term goals
and long-term net zero targets and goal. This results from different GHG emissions
boundaries and/or different approaches to the treatment of acquisitions, divestments
and methodology changes based on the purpose for which the data is being reported.
For more information refer to Climate-related metrics, targets and goals in this OFR 9.8.
Value chain GHG emissions (Scope 3 emissions)
Value chain
Approach
For FY2025, our reported Scope 3 emissions inventory (unadjusted inventory)
increased by 0.1 per cent from FY2024.
2
This was largely driven by reported
GHG emission increases in Category 10 ‘Processing of sold products’
(specifically iron ore processing to crude steel). Our reported Scope 3
emissions inventory remains dominated by the processing of our iron ore
and steelmaking coal products (84 per cent). The combustion of energy
coal (10 per cent), the GHG emissions associated with our direct suppliers
(3 per cent) and the shipping of our products (2 per cent) also contribute.
For more information on the calculation of our reported Scope 3 emissions
inventory refer to Climate-related metrics, targets and goals in this OFR 9.8.
The planned closure of our Mt Arthur Coal mine by FY2030 is likely to
result in Scope 3 Category 11 emissions (which includes GHG emissions
from the end use of products sold by the reporting company, such as
the combustion of energy coal) becoming an insignificant source in our
reported Scope 3 emissions inventory.
We do not anticipate significant reductions in our reported Scope 3
emissions inventory in the near term. This is partly due to the way we
estimate some Scope 3 emissions categories, particularly Category
10 processing of sold products, which is generally not supplier- or
customer-specific and therefore would not reflect the GHG emission
reductions they achieve. We are looking for ways to improve the data
we use and have included this as part of our strategy. As we progress
opportunities to reduce Scope 3 emissions associated with processing of
sold products, a more granular and customer-specific reporting methodology
is expected to enable us to reflect GHG emission reductions resulting
from changes we may make to the quality of our products or from lower
GHG emission processing routes, including as enabled by our investments
in the development of lower GHG emission steelmaking pathways.
We have seen improvements associated with data availability associated
with shipping through our use of the Veracity data platform. In FY2025,
we enhanced our Scope 3 emissions accounting and reporting by improving
the collection of fuel consumption data for BHP-chartered shipping of our
products, including GHG emissions from transhipment of our products on
containerised freight and the deployment of emissions tracking and reporting
mechanisms with vessel owners. Customer-specific and supplier-specific
granular data is a key enabler for greater transparency of actual Scope 3
emissions as well as value chain decarbonisation projects.
Our strategy to support reduction of GHG emissions in our value chain
has four primary focus areas:
– support the development and adoption of GHG emissions intensity
reduction technologies in steelmaking
– enhance the quality of the iron ore and steelmaking coal we produce (as the
GHG emissions intensity of conventional blast furnace steelmaking can be
reduced by improving the quality of the iron ore and steelmaking coal used)
– encourage direct suppliers to pursue net zero for their operational
GHG emissions (direct suppliers’ Scopes 1 and 2 emissions)
– support the development and adoption of GHG emission reduction
technologies in shipping
These focus areas have been set with consideration of the scale of
GHG emissions in our value chain, the level of impact we can achieve
with stakeholders and industry, and the alignment to our portfolio
strategy. We usually consider and prioritise our contribution to value chain
GHG emission reduction projects using similar criteria to compliance and risk
reduction projects. For steelmaking-related projects (including our steelmaking
customer partnerships), our Investment Review Committees operate in the
same manner as described for operational GHG emission reduction projects
in this OFR 9.8.
For FY2025, our capital and operating expenditure on initiatives associated
with potential value chain GHG emission reductions was approximately
US$60 million.
42 BHP Annual Report 2025
Value chain GHG emissions (Scope 3 emissions) –
Steelmaking
Medium-term
goal:
Support industry to develop steel production technology
capable of 30 per cent lower GHG emissions intensity
relative to conventional blast furnace steelmaking, with
widespread adoption expected post-CY2030.
Performance
50
100
150
200
0
FY2022 FY2023 FY2024 FY2025
US$ million financial value committed (cumulative) (excluding in-kind contributions)
171
140
114
75
Value chain GHG emissions (Scope 3 emissions) –
Direct suppliers
Long-term
net zero target:
Achieve net zero by CY2050 for the operational
GHG emissions (Scopes 1 and 2 emissions) of
our direct suppliers.
Performance, adjusted
MtCO
2
-e
0
5.0
10.0
15.0
20.0
FY2020 FY2021 FY2022 FY2023 FY2025FY2024
11.6
14.5
For information on the essential definitions, assumptions, GHG emissions boundaries, measurement approach and adjustments for this medium-term
goal and long-term net zero target, including the potential use of offsetting, refer to Climate-related metrics, targets and goals in this OFR 9.8
For more information on actual and planned expenditure to support
value chain GHG emission reductions refer to Financial Statements
note 16 ‘Climate change’
Our equity shares of operational GHG emissions (Scopes 1 and 2
emissions) from our non-operated joint venture interests are reported in
our Scope 3 emissions inventory under Category 15 ‘Investments’ and
are an immaterial source of Scope 3 emissions when compared to our
total FY2025 reported Scope 3 emissions inventory. We see our role in
non-operated assets as primarily to seek to influence them through their
governance structures to reduce their operational GHG emissions, as well
as sharing decarbonisation knowledge and experience where appropriate.
Steelmaking
Performance and highlights
– In FY2025, under the Modified blast furnace pathway, we have
progressed pilots in China and Europe jointly with our partners, with
carbon capture trials commenced at customer sites. We plan to share
key trial results in FY2026. We also initiated new partnerships in
India, including studies to progress a next generation carbon capture
demonstration with steelmaker JSW, and progressed low-carbon fuel
installations (hydrogen injection to blast furnace) with Zenith Steel in
China with the plan for testing campaigns to operate in FY2026.
– Additionally, in August 2025 we announced our participation in an
industry consortium comprising leading steelmakers ArcelorMittal,
Nippon Steel India, JSW Steel, Hyundai Steel Company and other
value chain participants, Chevron and Mitsui & Co. Ltd, to undertake
a pre-feasibility study to assess the development of carbon capture,
utilisation and storage (CCUS) hubs across Asia. The CCUS hub study
is the first independent industry-led study of its kind in Asia and will
examine the technical and commercial pathways to utilising CCUS
in hard-to-abate industries across Asia.
– In FY2025, under the DRI-electric smelting furnace pathway, we
successfully trialled BHP iron ores in pellet and direct reduced iron
(DRI) production at two commercial plants in China. In one of these,
we achieved a lower emissions intensity in the trial (50 per cent lower iron
unit intensity replacing blast furnace iron in existing basic oxygen furnace
steelmaking) than conventional blast furnace-basic oxygen furnace
operation. Importantly, the trial demonstrated the use of BHP Pilbara
ores in pellet-shaft DRI production, which when combined with an electric
smelting furnace (ESF) has the potential to achieve 85 per cent emission
reductions compared with the conventional blast furnace. In FY2026 and
FY2027, we plan to continue to support work to optimise the performance
of pellet and DRI trials at higher BHP Pilbara ore ratios. We also confirmed
Kwinana in Western Australia as the location for the NeoSmelt ESF pilot
with our partners BlueScope, Mitsui Iron Ore Development, Rio Tinto
and Woodside Energy, and advanced the project from pre-feasibility into
a final design phase. Subject to approvals, the NeoSmelt ESF project
remains on track to be commissioned in the second half of CY2028
and begin demonstrating the system as a technically viable pathway.
– Within the Electrochemical reduction pathway, our BHP Ventures portfolio
company, Boston Metal, successfully commissioned a large-scale pilot
using BHP iron ore fines and lump, producing iron metal using electrolysis
at tonnage scale and we made an additional investment into Boston Metal in
June 2025. We also joined Electra’s series B funding round as it continues
to develop its low temperature electrolysis process. With successful pilots,
these solutions could help support our medium-term goal for steelmaking
and our long-term net zero goal.
– We continued to engage with our direct iron ore and steelmaking
coal customers on GHG emission reduction pathways and carbon
accounting methodologies.
Longer-term industry pathways and strategy
Our ambition is to help develop multiple technology pathways, as
described above, that can provide commercially feasible options for
steelmakers in different regions. We prioritise projects based on scale of
impact, our ability to influence the outcomes and alignment with our assets
and products. Our steelmaking decarbonisation program has four key
components: collaborative partnerships with our customers, peers and
partners; directly funded research and development initiatives; early-stage
investments in breakthrough technology through BHP Ventures; and
advocacy for standardisation and traceability throughout the value chain.
We aim to leverage our own funding through this program by attracting
and enabling investment (financial and in-kind) from our strategic partners.
We have collaborations and exchanges with 11 steel producers representing
22 per cent of reported global steel production according to recent World Steel
Association data
1
and US$171 million in committed funding to date
2
(including
BHP Ventures investments and based on figures as at 30 June 2025).
For more information on our strategy, actions to support our value
chain and our plan to achieve our steelmaking medium-term goal refer
to pages 24 and 25 of our CTAP 2024 available at bhp.com/CTAP2024
Direct suppliers
Performance and highlights
– We continued to engage with and encourage our top 500 direct suppliers
by spend to set their own operational GHG emissions targets or goals
(for their Scopes 1 and 2 emissions) to align with our Scope 3 long-term
target to achieve net zero by CY2050 for the operational GHG emissions
of our direct suppliers.
– We commenced a pilot with four strategic suppliers that represent
5 per cent of our reported Scope 3, Category 1 emissions inventory to
assess the viability and scalability of sharing their product-level emissions
data. This pilot seeks to improve our reported Scope 3, Category 1
emissions inventory accuracy and ability to reflect GHG emissions
reduction initiatives being implemented by our direct suppliers.
– We are currently working to update the methodology we use to calculate
our reported Scope 3, Category 1 emissions inventory to more accurately
reflect the GHG emissions associated with the products and services we
1 Steel producer data is available at worldsteel.org/data/top-steel-producers
2 Excluding in-kind contributions.
43Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Value chain GHG emissions (Scope 3 emissions) –
Shipping
Medium-term
goal:
Support 40 per cent GHG emissions intensity reduction
of BHP-chartered shipping of BHP products by CY2030,
from a CY2008 baseline.
Performance, adjusted
2.5
5.0
7.5
10.0
0
gCO
2
-e per deadweight tonne per nautical mile
CY2008 FY2023 FY2025
5.8
3.3
Value chain GHG emissions (Scope 3 emissions) –
Shipping
Long-term
net zero
target:
Achieve net zero by CY2050 for the GHG emissions
from all shipping of BHP products.
Performance, adjusted
MtCO
2
-e
0
2.5
5.0
7. 5
10.0
FY2020 FY2021 FY2022 FY2023 FY2025FY2024
6.6
5.8
For information on the essential definitions, assumptions, GHG emissions boundaries, measurement approach and adjustments for this medium-term
goal and long-term net zero target refer to Climate-related metrics, targets and goals in this OFR 9.8
procure by improving the emissions factors used to calculate emissions
and ultimately shifting to supplier-specific data for key products and
services. This may have a significant impact on our reported Scope 3,
Category 1 emissions inventory in future.
Industry pathways and strategy
Our strategy targets the top 500 direct suppliers by spend, which
contributed to 78 per cent of our FY2025 total spend on suppliers.
It encompasses three areas of focus – selective purchasing, supportive
engagements and measurement and monitoring. Our selective purchasing
approach sets a commercial requirement that, over time, a supplier
must actively reduce its operational GHG emissions and/or maintain
a competitive level of GHG emissions intensity for its product or service.
Our supportive engagements intend to identify, assess and pursue
opportunities to partner with our direct suppliers to support their GHG
emission reduction initiatives. Measurement and monitoring are also
essential to assessing performance and advances being pursued, such
as through climate-specific data clauses in some supplier contracts or
participation in emission data exchanges, to help improve our ability to
report progress against our long-term net zero target for direct suppliers.
For more information on our strategy, actions to support our value chain
and our plan to achieve our direct suppliers’ long-term net zero target
refer to page 28 of our CTAP 2024 available at bhp.com/CTAP2024
Shipping
Performance and highlights
– We are on track to meet our medium-term goal to support 40 per cent
GHG emissions intensity reduction of BHP-chartered shipping of BHP
products by CY2030 from a CY2008 baseline year. For FY2025, the GHG
emissions intensity of BHP-chartered shipping was 43.7 per cent below
CY2008 (baseline year and performance adjusted. For more information
on the adjustments we make refer to Climate-related metrics, targets and
goals in this OFR 9.8. Percentage has been rounded to the whole number
in the social value scorecard in OFR 9.4).
– For FY2025, our total reported Scope 3, Category 4 emissions inventory
for BHP-chartered shipping of BHP products reduced by 7 per cent
compared to FY2020 despite an increase in voyages executed compared
with FY2020 by 8.6 per cent.
– We increased the collection of fuel consumption data for BHP-chartered
shipping of our products, including GHG emissions from transhipment of
our products on containerised freight and the deployment of emissions
tracking and reporting mechanisms with vessel owners. This resulted
in 65 per cent of our fuel consumption data and associated reported
GHG emissions for BHP-chartered shipping of our products being
actual (rather than estimated).
– The retrofitting of a wind-assisted propulsion system (a Flettner Rotor)
on the shipping vessel M/V Koryu with our customer and partner Pan
Pacific Copper and Norsepower, delivering our copper concentrates
from Chile to Japan, completed three voyages in FY2025 and the
validation of the emission reductions from this installation is in progress.
– We continued to promote the adoption of lower GHG emissions fuels,
such as biodiesel and LNG, across our trade routes. In FY2025, we
doubled the volume of biodiesel used in our value chains compared to
FY2024. We continued to scale our adoption of biodiesel blends (i.e.
B24, B30) and pure biodiesel (i.e. B100), adding bunkering at strategic
locations, such as Singapore, Hong Kong and Panama. The biodiesel that
BHP has used has been produced from feedstocks that recycle waste
products, such as used cooking oil and food waste. All biodiesel used
is accompanied by ‘Proof of Sustainability’ under a certification scheme.
– We have awarded time charter contracts to China’s COSCO Shipping for
two ammonia dual-fuelled vessels for a duration of five years. We expect
the delivery of these vessels from CY2028. This will help us meet our
First Movers Coalition commitment that, by CY2030, 10 per cent of our
total products shipped to our customers on our time charter vessels
will be shipped using zero GHG emissions fuels.
1
We continue to
work with regulatory bodies, shipyards and other key stakeholders to
address the challenges for use of ammonia onboard vessels as well
as with participants across technical, commercial and supply assurance
aspects for the supply of electrolytic ammonia, commonly referred to
as ‘green ammonia’.
Industry pathways and strategy
The International Maritime Organisation (IMO) has set levels of ambition
for the international shipping sector that aim to progressively reduce
GHG emissions and reach net zero GHG emissions by or around CY2050.
In April 2025, the Marine Environment Protection Committee established the
IMO Net-Zero Framework requiring ships to comply with two measures that
are set to be formally adopted in October 2025 and come into force in CY2027:
– Global fuel standard: Ships must reduce, over time, their annual
GHG fuel intensity (GFI) – that is, how much GHG is emitted for
each unit of energy used. This is calculated on a well-to-wake basis.
– Global economic measure: Ships emitting above their GFI thresholds
will have to acquire remedial units to balance their deficit emissions,
while those using zero or near-zero GHG emission technologies will
be eligible for financial rewards.
As one of the world’s largest dry bulk charterers, our strategy to support
the IMO’s ambitions encompasses efficiency improvements, the adoption
of lower and low to zero GHG emission alternative fuels, and enhanced
carbon accounting practices. Our actions align with the requirements
of the IMO’s mid- and long-term GHG reduction measure.
Climate-related risk management
How we identify and manage climate-related risk
At BHP, we take an enterprise approach to risk management and operate
under one Risk Framework for all risks, including transition and physical
climate-related risks (threats and opportunities). We have mandatory
minimum performance requirements to manage climate-related risks
and apply them across our operated assets and functions, and to
decision-making processes for sales, marketing and procurement.
1. Subject to the availability of technology, supply, safety standards and the establishment of reasonable thresholds for price premiums.
44 BHP Annual Report 2025
To support the identification and management of climate-related risks at
BHP, we monitor themes and signposts and interpret external developments
associated with transition risk and physical climate-related risk, which may
include existing and emerging scientific, technological, policy, legal and
regulatory, reputational, market and other societal developments.
Our Climate Change Global Standard sets mandatory minimum requirements
for assessing physical climate-related risks (for our progress to date refer
to Physical climate-related risks and adaptation in this OFR 9.8), as well as
for asset-level climate change plans and the value chain climate adaptation
plan owned by our Commercial function. Asset-level climate change plans
are required to be approved annually to ensure continued relevance.
In setting and monitoring delivery of our strategy, we consider climate-related
risks (threats and opportunities), both physical and transition, across the
following time horizons:
– short-term (up to two years), aligning with our two-year budget process
– medium-term (two to five years), defining supportive actions and initiatives
that sit outside of our two-year budget process in order to support our
long-term strategy
– long-term (five to at least 30 years), given our supply, demand and
pricing forecasts and our scenarios for portfolio analysis extend to
2050 and in some cases beyond, as do the climate projections data
we use to underpin our physical climate-related risk assessments
(which incorporate a 2070s time horizon)
We assess materiality of climate-related risks consistent with the process for
all risks identified through our Risk Framework, considering the likelihood (by
reference to timeframes) and severity of potential impacts (including to health
and safety, the environment, communities, human rights and social value).
This helps us to understand the significance of climate-related risks in the
Relevant BHP risk factors
(for more information
refer to OFR 11) Climate-related risk (threats)
Potential influence of climate-related
issues on BHP risk factors over time
1
Short term
(0 to 2 years)
Medium term
(2 to 5 years)
Long term
(5 to at least
30 years)
2
Transition risk
Operational events – Low technological readiness or delay to technological solutions to
reduce GHG emissions (e.g. leading to extended lives and increased
maintenance requirements of existing infrastructure)
Low Low Medium
Significant social or
environmental impacts
– Engaging in or association with activities with actual or perceived
adverse climate-related impacts
– Failure to meet evolving stakeholder expectations (e.g. impacting
perceptions of social value contribution)
– Political, regulatory or judicial developments
Low Low to medium High
Low-carbon transition – Low to zero GHG emission technologies or changes in customer
preferences altering demand for our products
– Perceptions of climate-related financial risk reducing access to
capital and/or insurance for BHP or our customers or suppliers
– Reputational damage and litigation
– Adverse market, legal or regulatory responses
Low Low High
Adopting technologies and
maintaining digital security
– Low technology readiness or delay to technological solutions
to reduce GHG emissions
Low Low to medium High
Optimising growth and
portfolio returns
– Failure to achieve expected commercial objectives due to
climate-related impacts
Low Low High
Accessing key markets – Legal or regulatory changes, with respect to carbon-intensive
industries and exports
– Low to zero GHG emission technologies or changes in customer
preferences altering demand for our products
Low Low High
Inadequate business
resilience
– Geopolitical, global economic, regional or local developments
or adverse events
– Perceptions of climate-related financial risk reducing access to capital
and/or insurance for BHP or our customers or suppliers
Low Low High
Physical risk
Operational events – Extreme weather and other climate-related events that may impact
production and/or safety
Low Low to medium High
Significant social or
environmental impacts
– Failure to adequately identify or appropriately manage physical
climate-related risks
Low Low to medium Medium
Inadequate business
resilience
– Acute and chronic physical climate-related impacts, event-driven and
longer-term changes in climate patterns
Low Low Medium
1. The estimated potential (i) change to the likelihood of relevant climate-related issues and their associated risk factors influencing BHP’s existing risk exposure; and/or (ii) degree to which
they may exacerbate the potential severity of existing risks within our risk profile, based on currently available information and noting that some assessments are preliminary and/or
incomplete (particularly in relation to physical climate-related risk) and may change significantly.
2. The long-term time horizon covers an extended period, with climate-related risks having potential for both a greater level of influence and uncertainty in the latter years.
context of BHP’s overall risk profile and prioritise controls and decision-making
for investment in risk mitigations. Climate change and climate-related risks
have the potential to influence or exacerbate risks across our operations
and functions, including those associated with asset integrity, pricing of
inputs, access to markets, changes to regulation, access to funding and
our reputation. They are required to be considered and, where applicable,
integrated in accordance with our Risk Framework into our risk profiles to
be managed across each of these time horizons (see the table below).
Under our Risk Framework, we implement controls designed to prevent,
minimise or mitigate threats and enable or enhance opportunities.
Opportunities include positioning our portfolio to capture growth in
future-facing commodities, implementing measures to increase the resilience
and reliability of critical infrastructure and creating mutual value through
embedding our approach to equitable change and transition. Controls, which
are reviewed at least annually, can be preventative or mitigating. A consistent
approach allows climate-related risks to be considered across our business,
integrated through our risk profile, to focus actions on risks that are material.
We conduct annual reviews of our climate-related risk profile to identify,
assess and manage new or evolving climate-related risks. Individual material
climate-related risks are reviewed at least annually and when events or
changes occur that may increase or decrease the risk exposure.
For more information on our Risk Framework, how we manage risk
(including climate-related risk) and our risk factors refer to OFR 7 and OFR 11
For disclosures on the management of transition risks (threats and
opportunities) refer to Transition to a net zero economy in this OFR 9.8
For disclosures about the studies we are undertaking to assess our exposure
to physical climate-related risks and identify adaptation opportunities refer to
Physical climate-related risks and adaptation in this OFR 9.8
45
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Transition to a net zero economy
Our portfolio’s resilience
To address transition climate-related risks, we are pursuing opportunities
to increase our exposure to products that enable and support decarbonisation,
electrification, urbanisation and a growing population. Simultaneously,
we aim to minimise the risk of capital being stranded in a rapidly
decarbonising world.
Climate change, climate scenarios and the progress towards the global net
zero transition are among the key drivers of decision-making that support
our risk appetite and commodity outlook to inform strategy and corporate
planning. Insights from commodity and portfolio reviews are presented to
our ELT and Board. They inform major portfolio decisions and cascade
through our planning processes, including how we allocate capital and
how we unlock new business opportunities.
Our strategy formation, capital allocation and planning processes enable
deliberate and timely responses to the climate-related risks (threats and
opportunities) to our portfolio. We seek to maintain a strong balance sheet
and monitor our net debt and gearing ratio (the ratio of net debt to net
debt plus net assets). This gives us the flexibility to respond to changing
external factors, including climate-related risks, as they arise. This,
coupled with our Capital Allocation Framework, enables us to execute
our portfolio positioning decisions for the benefit of our stakeholders
including shareholders.
For more information on our operational activities and our approach to
our value chain refer to Operational GHG emissions (Scopes 1 and 2
emissions from our operated assets) and Value chain GHG emissions
(Scope 3 emissions) in this OFR 9.8
For more information on potential financial statement impacts due
to climate-related risks refer to Financial Statements note 16
‘Climate change’
Our planning range
We use our planning range (our long-term forecast of demand, supply
and price across our commodities) for operational planning, strategy
formation and investment decisions. It is comprised of three unique,
independent planning cases: a ‘most likely’ base case, and an upside
case and downside case that provide the range’s boundaries. These three
cases reflect proprietary forecasts for the global economy and associated
sub-sectors (i.e. energy, transport, agriculture, steel) and the resulting
market outlook for our core commodities.
While not expressly designed as climate scenarios, our planning range
assumes most developed economies reach net zero around CY2050 (and
other developing economies reaching net zero in CY2060 and CY2070),
with different global gross domestic product assumptions and pace and
drivers of decarbonisation policy and technology across the three planning
cases. The modelled outputs of our planning range result in global CO
2
emission pathways implying a projected global temperature increase
of around 2°C by CY2100. We regularly make updates to our planning
range, with an update of key assumptions and our analysis of potential
implications expected during FY2026.
To continue responding to changes in the external environment and
help shape a more resilient strategy, we carefully monitor key signposts
for economic, societal, political and technological changes that could
materially move our planning range. We also regularly reassess our views
on commodity and asset attractiveness.
Our 1.5°C scenario
Scenarios highlight different hypothetical pathways for the future and are
not necessarily what we or others expect to happen. We use scenarios
to explore different themes or end states to stress test business decisions
and portfolio resilience.
1
In FY2024, as one aspect of our analysis,
we developed a new 1.5°C scenario, benchmarked against external
scenarios, to test the modelled impacts of potential pathways towards deep
decarbonisation and the climate-related transition risks it would give rise
to. We believe it is unlikely this pathway will eventuate, because of current
trends and global efforts to date to address climate change.
Our 1.5°C scenario uses aggressive assumptions around political,
technological and behavioural change, particularly for hard-to-abate
sectors, such as steel. For example, our 1.5°C scenario assumes
that global energy-related CO
2
emissions will peak by the mid-2020s
and there will be a rapid rollout of steel decarbonisation technologies
synchronised to technical and commercial readiness, with carbon capture
utilisation and storage beginning in the mid-2020s, hydrogen-based direct
reduced iron from the mid-2030s and electrolysis technologies from the
2040s. It also assumes that there will be strong policy pushes to enable
rapid decarbonisation.
For more information on the key assumptions and metrics for our
1.5°C scenario refer to pages 61 and 62 of our CTAP 2024 available
at bhp.com/CTAP2024
We update our 1.5°C scenario analysis and associated portfolio resilience
testing periodically, with our most recent assessment performed in
CY2024 and presented in our CTAP 2024. As modelled in CY2024, our
assessment indicated that the portfolio would be resilient under our 1.5°C
scenario, while its impact would be different on each of our commodities:
the value of our copper, potash and nickel assets increases relative to
the base case of our planning range and offsets the effect to our portfolio
from some downside risk to steelmaking coal (with some loss of value
in steelmaking coal relative to the base case of our planning range and
a marginal decrease in the value of our iron ore assets). At the time of
the assessment, the net present value of our portfolio modelled under
our 1.5°C scenario was approximately the same as under the base
case of our planning range, indicating that we would be resilient in an
accelerated transition to this 1.5°C outcome. It is important to note this
does not account for changes that could be made or actions that could
be taken if our 1.5°C scenario was to eventuate, such as harnessing new
opportunities or mitigating potential financial impacts.
In FY2025, while we continued to consider our 1.5°C scenario in our
strategy formation, we did not consider it as a sensitivity in capital
allocation processes.
To provide further analysis of potential financial risks under a 1.5°C
scenario, we have also reviewed an external scenario published by
Wood Mackenzie aligned to a global average temperature increase limited
to approximately 1.5°C and performed a price-only sensitivity using the
latest operating plans for our steelmaking coal assets.
For more information on the potential financial risks under a 1.5°C
scenario refer to Financial Statements note 16 ‘Climate change’
Since our resilience assessment in CY2024, we have continued to position
our portfolio of commodities and assets to create value for today and the
future. In FY2025, BHP and Canada’s Lundin Mining formed the Vicuña
joint venture to hold the Josemaria and Filo del Sol copper deposits located
on the Argentina-Chile border. The Vicuña joint venture will create a
long-term partnership between BHP and Lundin Mining to jointly develop
an emerging copper district with world-class potential. This transaction
aligns with BHP’s strategy to acquire early-stage copper projects as
one of the levers to develop a portfolio of commodities that support the
megatrends shaping our world, which we would expect to reinforce the
resilience of our portfolio as a whole.
For more information on our portfolio’s resilience in our 1.5°C scenario
refer to Portfolio on pages 31 to 38 of our CTAP 2024, available at
bhp.com/CTAP2024
For physical climate-related risks, we are undertaking studies to
progressively identify, assess and quantify the potential future impacts
to site operations and safety, productivity and estimated cost for our
operated assets. These studies use a set of scenarios with average global
temperature estimates that differ from that implied by our planning range or
our 1.5°C scenario used to test resilience against transition climate-related
risks, due to higher temperature outcomes usually being associated with
greater physical climate-related risks. The scenarios we are considering in
our studies of physical climate-related risks are intended to help inform a
risk-based approach rather than reflect any view on future climate outcomes.
For more information on our approach to physical climate-related risks
refer to Physical climate-related risk and adaptation in this OFR 9.8
1. There are limitations 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 a forecast and is not an indication of probable outcomes and relies on assumptions that may or may not prove to be correct or eventuate.
46 BHP Annual Report 2025
Carbon pricing
We embed carbon prices within our planning range that inform asset
planning, asset valuations and operational decision-making, including
the prioritisation of operational GHG emission reduction projects.
For our qualitative and quantitative disclosures on planning
range carbon pricing refer to Financial Statements note 16
‘Climate change’
Equitable change and transition
Implementation
Our approach to equitable transition is grounded in our existing strategies,
principles, policies, standards and frameworks in relation to our people,
the environment, communities and other stakeholders and partners.
Our Human Rights Policy Statement, Indigenous Peoples Policy Statement
and Inclusion and Diversity Position Statement help underpin our approach
and our Closure and Legacy Management Global Standard, Community
and Indigenous Peoples Global Standard, Climate Change Global Standard
and Environment Global Standard set out requirements aligned to our
equitable change and transition principles.
New South Wales Energy Coal
On 16 April 2025, New South Wales Energy Coal received approval from
the New South Wales Government of Modification 2 to continue mining
at the Mt Arthur Coal mine to planned closure in June 2030. The approval
provides time to continue working collaboratively with the community,
suppliers and local businesses on plans to cease mining and deal with
land and tenure BHP will no longer use, subject to future approvals, in
order to transition the site and surrounds to their next productive use
beyond 2030, while balancing business, community and regulatory needs
and expectations. Following the approval, BHP announced a A$30 million
community fund to support the Upper Hunter as it prepares for the
responsible closure of the Mt Arthur Coal mine in 2030.
In April 2025, we announced that we have partnered with renewable
energy and infrastructure company ACCIONA Energía to explore the
potential development of a pumped hydro energy storage project at Mt
Arthur Coal. BHP’s conceptual studies show that a pumped hydro energy
storage project at Mt Arthur Coal has the potential to support around 1,000
jobs within the Upper Hunter region in the construction phase, contribute
to ongoing economic activity in Muswellbrook and provide power for up to
500,000 homes across New South Wales every day.
Physical climate-related risks and adaptation
A changing climate can exacerbate and trigger physical climate-related
risks, which include:
– Acute physical climate-related risks: extreme climatic events, such
as floods, cyclones and heatwaves, that may become more severe and/
or more frequent because of a changing climate.
– Chronic physical climate-related risks: the incremental worsening
of conditions such as the gradual increase in the number of extreme
heat days over the years, or rising sea levels.
The mining sector is exposed to both acute and chronic physical
climate-related risks because of its remote outdoor operations with
labour and physical capital exposed to the elements, and because of
its dependency on global value chains. The long lives of mining assets
mean they could encounter deteriorating conditions in later decades.
Geographically dispersed sites and value chains increase the diversity
of physical climate-related impacts we may face.
We are undertaking studies to assess our operations’ exposure to physical
climate-related risks that draw on science-based climate data (described
under Climate modelling). We also continue to progress our work to build
further climate resilience, where appropriate, in asset planning, projects,
operations and closure. Our approach to evaluating our operational
physical climate-related risks is illustrated in the Our approach to physical
climate-related risk diagram on the following page.
Climate modelling
Our climate hazard dataset (CHD) covering our operated assets and some
key value chain locations enables us to deepen our understanding of
our physical climate-related risk exposure, alongside local observational
data and other sources of climate projections. In FY2025, we developed
an online platform to make the CHD more readily accessible internally.
The dataset covers more than 20 climate-related hazards and includes a
baseline and projections for four future time horizons across this century,
for the following scenarios, based on Shared Socioeconomic Pathways
(SSPs) used by the Intergovernmental Panel on Climate Change:
1
– Low-case: estimated average global temperature increase
of 1.8°C by CY2100 (SSP1-2.6)
– Mid-case: estimated average global temperature increase
of 2.7°C by CY2100 (SSP2-4.5)
– High-case: estimated average global temperature increase
of 4.4°C by CY2100 (SSP5-8.5)
Risk studies
In FY2025, our operated assets (excluding NSWEC, legacy assets and
Western Australia Nickel) used our CHD to undertake or continue physical
climate-related risk analysis. This included risk and impact transmission
channel analysis and assessment of potential safety, production and cost
impacts, informed by technical studies such as flood modelling, water balance
modelling and various quantitative assessments. The first stage of our
physical climate-related risk analysis has focused on our operated assets
that are currently producing (during FY2025). Western Australia Nickel was
excluded from further analysis in FY2025 due to its temporary suspension.
For NSWEC and legacy assets, we have been focusing on post-mining and
closure phases, updating risk profiles and adaptation plans based on our
latest knowledge of climate-related risks and potential impacts. We intend
to continue this work in FY2026.
The table titled Potential physical climate-related risks at our operated
assets and in their value chains on the following page shows the physical
climate-related risks we have identified in studies to date as having
potential to impact on our operated assets and value chains.
Risk controls
We have a range of existing controls in place for extreme weather-related
risks. These include weather-related hazard detection, monitoring
and associated weather preparation, emergency management plans
and personnel trained in emergency response. We are committed to
conforming with the Global Industry Standard on Tailings Management,
including its climate-related requirements. We also employ measures
to guard against potential equipment failure or inefficiencies during
extreme weather. We undertake contingency planning for disruptions
to our operated asset and value chain, including for scenarios caused
by climate-related impacts.
As our understanding of physical climate-related risks at our operated
assets evolves, we make updates to our risk profile and asset-level
adaptation plans where relevant. For example, we have been progressing
embedment of climate-adjusted risks into flood mitigation structure designs
at Copper South Australia and BMA, and building climate projections
into the weather budgets and water balance modelling for strategic
water planning at BMA. We expect to continue to identify adaptation
opportunities to further protect value and enable growth as we progress
our ongoing physical climate-related risk studies.
1. Table SPM.1, Summary for Policymakers. In: Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental
Panel on Climate Change. IPCC, CY2021.
47Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Our approach to physical climate-related risk
Climate data projections
Use of climate data and projections for different scenarios and time horizons
Operational site impacts
Risk identification and evaluation, including engineering assessments, to understand the potential
direct impact of climate-related risks on our sites
Safety, productivity
and cost impacts
Applying internal models to assess potential impacts to safety, cost and productivity
Financial impacts and
value-at-risk
Incorporating assessment results into internal planning models to understand potential financial
impacts and value-at-risk
Incorporating into business
planning, risk management
and capital allocation
Embedding consideration of physical climate-related risk (including value-at-risk) into business
planning, risk management and capital allocation, as required
For more information on how physical climate-related risk has been considered in asset carrying values refer to Financial Statements note 16 ‘Climate change’
Climate-related metrics, targets and goals
Primary metrics we consider when assessing and managing climate-related risks (threats and opportunities)
Metric Refer to
Commodity production, revenue
and expenditure
– Commodity production, revenue and expenditure tables in BHP ESG Standards and Databook 2025
available at bhp.com/ESGSD2025
Capital allocation and alignment – Financial Statements note 16 ‘Climate change’ in this Report
Operational GHG emissions (Scopes 1 and 2
emissions from our operated assets)
– Operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) inventory table
in this OFR 9.8
Value chain GHG emissions (Scope 3 emissions) – Value chain GHG emissions (Scope 3 emissions) inventory table in this OFR 9.8
Production, reserves and resources – Production and Mineral Resources and Ore Reserves in Additional Information 4 and 6 in this Report
Management’s Cash and Deferred Plan
(proportion linked to climate)
– Remuneration Report in this Report
Carbon pricing – Financial Statements note 16 ‘Climate change’ in this Report
We report on other sustainability-related metrics (e.g. water use, our operations’ biodiversity-related intersections) in our sustainability disclosures
and recognise their interconnection with climate change. However, we do not currently use these as our core metrics for the assessment and
management of climate-related risks.
For more information on our social value and sustainability-related goals, metrics and milestones refer to OFR 9
Potential physical climate-related risks at our operated assets and in their value chains
Climate hazard Potential operational site impacts
Extreme weather events
of any type
– Workforce health and safety incidents
– Disruption in the supply of critical production inputs, and access to supply chain infrastructure
Extreme precipitation
and/or inland flooding
– Inundation of mines and/or key production infrastructure
– Disruption and/or damage to business-critical equipment and infrastructure
– Exacerbation of tailings storage facility failure risk
Coastal hazards
(including higher sea levels, cyclones,
storm surge, coastal flooding and
changes in marine ecosystems)
– Disruption and/or damage to port and coastal infrastructure and operations
– Disruption to key access roads and/or railways
Extreme temperatures
– Disruption and/or damage to business-critical equipment and infrastructure
– Disruption to workplace and maintenance schedules
Chronic changes
(including in rainfall, temperature,
evaporation and/or sea surface
temperature patterns)
– Water shortages for operational activities
– Reduced productivity of desalination plants
48 BHP Annual Report 2025
The role of our commodities in the transition
For our disclosures on the indicative approach to classification of our commodities and the associated data on the production, revenue and capital expenditure
for our commodities refer to our BHP ESG Standards and Databook 2025, available at bhp.com/ESGSD2025
Our reported energy consumption and GHG emissions inventory
For more information on our calculation methodologies refer to the BHP GHG Emissions Calculation Methodology 2025, available at bhp.com/sustainability
Operational energy consumption inventory: Operational control basis (petajoule (PJ)), unless otherwise indicated)
FY2025 FY2024 FY2023
Total operations
basis
Total operational energy consumption 133 143 138
Operational energy consumption from renewable sources 28 26 26
Operational GHG emissions (Scopes 1 and 2 emissions) unadjusted inventory
For the measurement applicable to our operational GHG emissions medium-term target and long-term net zero goal baseline year, reference year
and performance (which may be different to our unadjusted inventory based on the purpose for which the data is reported) refer to Operational
GHG emissions (Scopes 1 and 2 emissions from our operated assets) medium-term target and long-term goal definitions in this OFR 9.8
Operational GHG emissions (Scopes 1 and 2 emissions): Operational control basis (MtCO
2
-e, unless otherwise indicated)
FY2025 FY2024 FY2023
Total
operations
basis
Scope 1 emissions 7.4 8.1 8.0
Scope 2 emissions 1.3 1.9 1.9
Total operational GHG emissions 8.7 10.0 9.9
Location-based Scope 2 emissions 3.1 3.7 3.8
Operational GHG emissions intensity (tCO
2
-e per tonne of copper equivalent production) 1.6 1.8 1.7
Notes
– Definition: Scope 3 emissions refers to all other indirect GHG emissions (not included in
Scope 2) that occur in our value chain. Scope 3 emissions have been calculated using
methodologies consistent with the Greenhouse Gas Protocol Corporate Value Chain
(Scope 3) Accounting and Reporting Standard.
– Organisational boundary: Category 10, Processing of sold products, Category 11,
Use of sold products and Category 15, Investments all defined on an equity share basis.
All other Scope 3 emissions boundaries are defined on a category-by-category (and in
some cases, sub-category) basis due to data limitations. Scope 3 emissions reporting
necessarily has a degree of overlap in reporting boundaries due to our involvement at
multiple points in the lifecycle of the commodities we produce and consume.
– Rounding: Data has been rounded to the nearest 0.1 MtCO
2
-e. Downstream: Other in
FY2024 has been rounded down for the purposes of this table.
– Restatement: Category 15, Investments FY2024 reported value has been restated due to
finalisation of electricity emissions calculations for the Kelar power plant. Previously reported
value was 1.2 MtCO
2
-e and restated value is 1.3 MtCO
2
-e as reflected in the Downstream,
Other (Categories 9,15) FY2024 value (not previously aggregated) and the Total Scope 3
emissions FY2024 value, which was previously reported as 377.6 MtCO
2
-e.
– Assessing and comparing reductions in Scope 3 emissions should consider the impact
that acquisitions and divestments have had.
– Scope 3 emissions data includes GHG emissions for former OZ Minerals assets from the
date of acquisition (completed on 2 May 2023). Former OZ Minerals Scope 3 emissions
data has not been included in certain categories and/or sub-categories of FY2023 and
FY2024 data due to data limitations. We estimate these GHG emissions to be immaterial.
– All Scope 3 emissions data includes divested operations only up to the completion date
or effective economic date (as applicable) of the divestment. Divestments include BMA’s
divestment of the Blackwater and Daunia mines (completed on 2 April 2024).
– Category 10, Processing of sold products does not include GHG emissions associated with
downstream processing of our zinc, gold, silver, ethane, cobalt and uranium oxide products
and, for FY2025, nickel, as production and sales volumes are relatively small and a large
range of possible end uses apply. We estimate these GHG emissions to be immaterial.
– Category 15, Investments covers the Scopes 1 and 2 emissions (on an equity basis) from
entities in which we hold an interest that are not operated by BHP.
Notes
– Definition: Energy consumption refers to the annual quantity of energy consumed by
BHP from the combustion of fuel and operation of our facilities, together with purchased
or acquired electricity, steam, heat or cooling consumed by our operated assets.
– Organisational boundary: We have made our calculations based on an operational
control approach in alignment with the Greenhouse Gas Protocol Corporate Accounting
and Reporting Standard.
– Rounding: Data has been rounded to the nearest 1 PJ.
– Operational energy consumption from renewable sources includes third-party
supplied renewable electricity as evidenced by renewable energy certificates (RECs)
or supplier-provided documentation. FY2023 reported value includes a small portion
of biofuels.
Our reported value chain GHG emissions (Scope 3 emissions) unadjusted inventory
For the boundaries and measurement applicable to our value chain GHG emissions medium-term goals and long-term net zero targets and goal baseline
year, reference year and performance (which may be different to our unadjusted inventory based on the purpose for which the data is reported) refer to
Value chain GHG emissions (Scope 3 emissions) medium-term goals definitions and Value chain GHG emissions (Scope 3 emissions) long-term targets
and goal definitions in this OFR 9.8
Value chain GHG emissions (Scope 3 emissions) (MtCO
2
-e)
FY2025 FY2024 FY2023
Upstream (Categories 1, 3, 4, 6, 7) 19.1 19.4 16.9
Downstream: Category 10, Processing of sold products 318.2 316.2 313.2
Downstream: Category 11, Use of sold products 37.7 38.4 37.0
Downstream: Other (Categories 9, 15) 3.2 3.7 3.7
Total Scope 3 emissions 378.2 377.7 370.8
Notes
– Definition: Scope 1 emissions refers to direct GHG emissions from our operated assets.
Scope 2 emissions refers to indirect GHG emissions from the generation of purchased
or acquired electricity, steam, heat or cooling that is consumed by our operated assets.
Scope 2 emissions have been calculated using the market-based method, unless
otherwise specified, in alignment with the Greenhouse Gas Protocol Scope 2 Guidance.
– Organisational boundary: Scopes 1 and 2 emissions have been calculated based on an
operational control approach in alignment with the Greenhouse Gas Protocol Corporate
Accounting and Reporting Standard.
– Rounding: Data has been rounded to the nearest 0.1 MtCO
2
-e. Scope 1 emissions have
been rounded up to 7.4 MtCO
2
-e for the purpose of this table.
– Restatement: Scope 1 emissions FY2024 reported value has been restated due to cumulative
impact of minor amendments to diesel use at Western Australia Nickel and Olympic Dam, and
fugitive emissions at BMA and NSWEC. Previously reported value was 8.2 MtCO
2
-e.
– Restatement: Operational GHG emissions intensity (tonnes of carbon dioxide equivalent
(tCO
2
-e) per tonne of copper equivalent production) FY2023 and FY2024 reported values
have been restated due to calculations now based on FY2025 average realised product prices,
with production figures consistent with operational GHG emissions reporting boundaries.
Previously reported values were 1.4 tCO
2
-e per tonne of copper equivalent production for
FY2023 and 1.5 tCO
2
-e per tonne of copper equivalent production for FY2024.
49Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Definitions and key details for our GHG emissions targets and goals
All the GHG emissions data we measure for the baseline year or reference year and performance for our GHG emissions targets goals are presented on
an adjusted basis to provide the information most relevant to assessing progress against our GHG emissions targets and goals. The BHP GHG Emissions
Calculation Methodology explains the different calculation approaches based on the purpose for which the data is being provided.
For more information on the different calculation approaches based on the purpose for which the data is provided refer to the BHP GHG Emissions
Calculation Methodology 2025, available at bhp.com/sustainability
For the definitions of the terms used to express our GHG emissions targets and goals, including ‘target’, ‘goal’, ‘net zero’ and ‘carbon neutral’ refer to
Additional information 10.4
Operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) medium-term target and long-term
net zero goal definitions, assumptions, adjustments and additional key details
Description Medium-term target: Reduce operational GHG emissions by at least 30 per cent from FY2020 levels by FY2030
Long-term net zero goal: Achieve net zero operational GHG emissions by CY2050
Baseline year or
reference year and period
Medium-term target: Baseline year: FY2020 | Period: FY2020 to FY2030
Long-term net zero goal: Reference year: FY2020. FY2020 is used as a reference year to track progress towards our goal,
but is not a baseline year for achieving our goal. | Period: FY2020 to CY2050
Type and reduction Medium-term target: Type: Absolute | Reduction: Gross; At least 30 per cent
Long-term net zero goal: Type: Absolute | Reduction: Net; 100 per cent
Boundary Inventory boundary: Scopes 1 and 2 emissions: Operational control
Exclusions Non-operated assets and equity investments (included in our value chain GHG emissions (Scope 3 emissions) long-term net zero goal)
GHGs included CO
2
, CH
4
, N
2
O, HFC, PFC, SF
6
Offsetting Medium-term target: Our plan is to achieve our medium-term target through structural GHG emissions abatement instead of
offsetting our operational GHG emissions. We will not use carbon credits surrendered to meet regulatory obligations (i.e. those
used for compliance under regulatory schemes, such as Australia’s Safeguard Mechanism) to meet our target. In our projected
pathway, we have not planned to use voluntary carbon credits to meet our medium-term target, but if there is an unanticipated
shortfall in our pathway, we may use voluntary carbon credits that meet our integrity standards to close the performance gap.
Long-term net zero goal: Expected, to close the performance gap beyond our structural abatement. However, for the reasons
outlined in this OFR 9.8, we are currently unable to estimate the contribution of carbon credits to our long-term net zero goal.
Measurement approach Scope 1 emissions are calculated using emission factors and methodologies required under mandatory local regulatory programs
where BHP operates, including the National Greenhouse Energy and Reporting (NGER) scheme for Australian operations, Green
Tax legislation (referencing Intergovernmental Panel on Climate Change (IPCC) emission factors) for Chilean operations and
Canadian Greenhouse Gas Reporting Program (referencing IPCC emission factors) for our Jansen potash project. In the absence
of mandatory local regulatory programs, the Australian NGER scheme emission factors and methodology are used. Scope 2
emissions are calculated using the market-based method using electricity emission factors sourced directly from the supplier
where available, as evidenced by Renewable Energy Certificates and/or supplier-provided documentation. Where supplier-specific
emission factors are not available, a default location-based emission factor for electricity, as published in local regulations or
industry frameworks, is used.
Key adjustments made to
baseline year or reference
year and subsequent data
Baseline year (for our target) and reference year (for our goal) and performance data have been adjusted for divestment of
our interest in BMC (completed on 3 May 2022), divestment of our Petroleum business (merger with Woodside completed on
1 June 2022), BMA’s divestment of the Blackwater and Daunia mines (completed on 2 April 2024), our acquisition of OZ Minerals
(completed on 2 May 2023) and for methodology changes (use of IPCC Assessment Report 5 (AR5) Global Warming Potentials
and the transition to a facility-specific GHG emission calculation methodology for fugitives at Caval Ridge and Saraji South)
(methodology change adjustments applicable for baseline year and reference year and FY2020 to FY2024 performance data).
Performance, adjusted FY2020: 13.6 MtCO
2
-e | FY2021: 13.8 MtCO
2
-e | FY2022: 10.2 MtCO
2
-e | FY2023: 9.1 MtCO
2
-e | FY2024: 9.2 MtCO
2
-e |
FY2025: 8.7 MtCO
2
-e
Target or goal setting
method
Medium-term target: Our target is measured on a cumulative GHG emission basis against an overall carbon budget. The target
percentage reduction was established in FY2020 by applying the same rate of reduction to BHP’s GHG emissions as the rate
at which the world’s GHG emissions would have to contract in order to meet the Paris Agreement goal to hold global average
temperature increase to well below 2°C above pre-industrial levels (known as the ‘absolute contraction method’).
Long-term net zero goal: Our goal was developed with the ambition to achieve net zero for our operational GHG emissions by
CY2050. Our progress against this goal will be measured on an absolute basis.
Target or goal derived
using a sectoral
decarbonisation approach
Medium-term target: No, our target was derived using the absolute contraction method specified earlier. At the time of setting the
target, there were no mining sector-specific pathways for jurisdictions where we operate.
Long-term net zero goal: No, however our goal is consistent with the global net zero ambition.
Process for reviewing
the setting of the target
or goal
The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination
and Governance Committee), including those related to climate change and climate transition planning, public sustainability goals
and targets (including for GHG emission reductions). We review our GHG emissions targets and goals as part of the periodic
development of an updated CTAP, or more frequently if required.
Process for monitoring
progress towards the
target or goal
Monitored on an annual basis through our business planning processes, which forecast operational GHG emissions and identify
planned, proposed or potential GHG emission reduction projects out to CY2050. As part of this process, an internal GHG
emissions target is set for the relevant financial year and monitored through our annual reporting processes, with progress
reviewed by management and the Board as part of publication of our annual reporting disclosures. Our target is also monitored on
a six-monthly basis through our social value scorecard framework, with progress reviewed by management and the Board as part
of publication of our half-year results (as well as annual reporting disclosures), or more frequently if required.
Third-party validation of
our target or goal
No, but we obtain reasonable assurance over our externally reported performance against our target and goal.
Carbon budget for target
or goal period
Medium-term target: 126.9 MtCO
2
-e (FY2020 to FY20230). This reflects a linear reduction between our baseline year and
the target year. In the interim years before FY2030, we periodically refer to our carbon budget to assess our cumulative GHG
emissions against our carbon budget to FY2030. This enables us to determine if we are on track to achieve our medium-term
target or whether we anticipate potential use of voluntary carbon credits to close any performance gap by FY2030 (which we
do not currently anticipate).
Long-term net zero goal: For the period FY2020 to FY2030, refer to the carbon budget for our target. We do not currently use
a carbon budget for the period beyond FY2030.
Expected progression Progress towards our target and goal is expected to be non-linear and affected by organic changes in our production of commodities
and the availability, capability and competitiveness of low emissions technology.
50
BHP Annual Report 2025
Value chain GHG emissions (Scope 3 emissions) medium-term goals definitions, assumptions, adjustments and
additional key details
Description Steelmaking medium-term goal: Support industry to develop steel production technology capable of 30 per cent lower GHG
emissions intensity relative to conventional blast furnace steelmaking, with widespread adoption expected post-CY2030.
Shipping medium-term goal: Support 40 per cent GHG emissions intensity reduction of BHP-chartered shipping of BHP products.
Baseline year or
reference year, and period
Steelmaking medium-term goal: Reference year: CY2020 (global average GHG emissions intensity for conventional blast furnace
steelmaking as at CY2020, being 2.2 tonnes of CO
2
per tonne of crude steel. Source: IEA Iron and Steel Technology Roadmap
(October 2020)). CY2020 is used as a reference year to assess the potential of collaborative partnerships and venture capital
investments to which we may commit funding (refer to Measurement approach in this table) but is not a baseline year for achieving
our goal | Period: FY2020 to CY2030.
Shipping medium-term goal: Baseline year: CY2008 (reflecting International Maritime Organisation (IMO) objectives for the
shipping industry) | Period: CY2008 to CY2030.
Type and reduction Steelmaking medium-term goal: Type: Not applicable | Reduction: Not applicable
Shipping medium-term goal: Type: Intensity | Reduction: Gross; 40 per cent
Boundary Steelmaking medium-term goal: Not applicable
Shipping medium-term goal:
– GHG emissions from maritime transportation not owned or operated by BHP, but chartered and paid for by BHP, where the
transportation was of BHP-produced products sold by BHP. In some cases, the goal’s boundary may differ from the boundaries
under mandatory reporting.
– Inventory boundary: Scope 3 emissions, Category 4, shipping of BHP products only.
Exclusions Steelmaking medium-term goal: Not applicable
Shipping medium-term goal:
– GHG emissions from maritime transportation owned, operated and/or chartered and paid for by a third party, where the
transportation was of BHP-produced products sold by BHP.
– GHG emissions from maritime transportation not owned or operated by BHP but chartered and paid for by BHP, where the
transportation was of third-party-produced products sold by BHP (pursuant to our third-party-trading activity).
– GHG emissions from maritime transportation not owned or operated by BHP but chartered and paid for by BHP or a third party,
where the transportation was of products purchased by BHP.
GHGs included Steelmaking medium-term goal: Not applicable
Shipping medium-term goal: CO
2
, CH
4
, N
2
O
Offsetting Steelmaking medium-term goal: Not applicable
Shipping medium-term goal: Not planned but will be periodically assessed
Measurement approach Steelmaking medium-term goal: Committed funding (US$) for collaborative partnerships and venture capital investments with the
aim to support industry to develop steel production technology capable of 30 per cent lower GHG emissions intensity relative to
conventional blast furnace steelmaking.
Shipping medium-term goal: Average gCO
2
-e per deadweight tonne per nautical mile (gCO
2
-e/dwt/nm), weighted based on
IMO defined vessel size ranges utilised by BHP during the time period, using a well-to-wake CO
2
-e emission factor from
EU Regulation 2023/1805.
Key adjustments made
to baseline year and
subsequent data
Steelmaking medium-term goal: Not applicable
Shipping medium-term goal: Baseline year and performance data have been adjusted to only include voyages associated with the
transportation of commodities currently in BHP’s portfolio due to the data availability challenges of adjusting by asset or operation
for CY2008 and subsequent year data. GHG emissions intensity calculations currently include the transportation of copper,
iron ore, steelmaking coal, energy coal, molybdenum, uranium and nickel. Baseline year and performance data have also been
adjusted for a methodology change to use maritime transport emission factors from EU Regulation 2023/1805, after The British
Standards Institution EN 16258 standard (the source of the emission factors we previously used) was withdrawn in CY2023.
Performance, adjusted
(only for shipping)
Steelmaking medium-term goal: FY2022: US$75 million | FY2023: US$114 million | FY2024: US$140 million
FY2025: US$171 million
Shipping medium-term goal: CY2008: 5.8 gCO
2
-e/dwt/nm | FY2023: 3.5 gCO
2
-e/dwt/nm | FY2024: 3.4 gCO
2
-e/dwt/nm |
FY2025: 3.3 gCO
2
-e/dwt/nm
Goal setting method Steelmaking medium-term goal: Qualitative. Tracked based on the funding (US$) we commit in collaborative partnerships and
venture capital investments with the aim to support industry to develop steel production technology capable of 30 per cent lower
GHG emissions intensity relative to conventional blast furnace steelmaking.
Shipping medium-term goal: Set as a point in time, i.e. with the specific date of ‘by CY2030’ for our goal to support a 40 per cent
GHG emissions intensity reduction of BHP-chartered shipping of BHP products, while reflecting the challenges and uncertainty
and our inability (as BHP alone) to ensure Scope 3 emission reductions. As a result, the goal is not based on a trajectory and does
not imply a specific carbon budget, and so Scope 3 emissions may fluctuate (with some increases and/or non-linear decreases)
during the period before the goal date.
Goal derived using a
sectoral decarbonisation
approach
Steelmaking medium-term goal: Not applicable
Shipping medium-term goal: No, although our goal is generally consistent with the IMO’s CY2030 emissions intensity goal for the
international shipping sector and we selected CY2008 as our goal’s baseline year to align with the base year for the IMO’s CY2030
goal and its corresponding reasoning and strategy.
Process for reviewing the
setting of the goal
The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination
and Governance Committee), including those related to climate change and climate transition planning, public sustainability goals
and targets (including for GHG emission reductions). We review our GHG emissions targets and goals as part of the periodic
development of an updated CTAP, or more frequently if required.
Process for monitoring
progress towards the goal
Monitored on a six-monthly basis through our social value scorecard framework, with progress reviewed by management and
the Board as part of publication of our half-year results and annual reporting disclosures, or more frequently if required.
Third-party validation of
our goal
No, but we obtain limited assurance over our externally reported performance against our goals.
Carbon budget for goal
period
Steelmaking medium-term goal: Not applicable
Shipping medium-term goal: Our goal is not based on a trajectory and does not imply a specific carbon budget.
Expected progression Steelmaking medium-term goal: Not applicable
Shipping medium-term goal: Progress towards our goal is expected to be non-linear and affected by organic changes in our
production of commodities and associated increases in vessel chartering, due to the dependence on the availability of GHG
emission reduction solutions more broadly across the shipping industry.
51
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Value chain GHG emissions (Scope 3 emissions) long-term net zero targets and goal definitions, assumptions,
adjustments and additional key details
Description Value chain long-term net zero goal: 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.
Shipping long-term net zero target: Target net zero by CY2050 for the GHG emissions from all shipping of BHP products. Ability
to achieve the target is subject to the widespread availability of carbon neutral solutions to meet our requirements, including low
to zero GHG emission technologies, fuels, goods and services.
Direct suppliers long-term net zero target: Target net zero by CY2050 for the operational GHG emissions of our direct suppliers.
Ability to achieve the target is subject to the widespread availability of carbon neutral solutions to meet our requirements,
including low to zero GHG emissions technologies, fuels, goods and services.
Reference year,
and period
Reference year: FY2020. FY2020 is used as a reference year to track progress towards our targets and goal but is not a baseline
year for achieving our targets or goal.
Period: FY2020 to CY2050
Type and reduction Type: Absolute
Reduction: Net; 100 per cent
Boundary Value chain long-term net zero goal:
– Total reported Scope 3 emissions are estimated on an equity basis for downstream GHG emissions. For the upstream
GHG emissions component, the boundary is defined on a category-by-category basis due to data limitations.
– Inventory boundary: Scope 3 emissions.
Shipping long-term net zero target:
– GHG emissions from maritime transportation not owned or operated by BHP where the transportation was of BHP-produced
products sold by BHP. May be BHP-chartered or third-party-chartered. In some cases, the target’s boundary may differ from
the boundaries under mandatory reporting.
– Inventory boundary: Scope 3 emissions, Categories 4 and 9, shipping of BHP products only.
Direct suppliers long-term net zero target:
– Scopes 1 and 2 emissions of our direct suppliers included in BHP’s reported Scope 3 emissions reporting categories of
purchased goods and services (including capital goods), fuel- and energy-related activities, business travel and employee
commuting. In some cases, the target’s boundary may differ from the boundaries under mandatory reporting.
– Inventory boundary: Scope 3 emissions, Categories 1, 3, 6 and 7 (subset) emissions are being used as a proxy for the Scopes 1
and 2 emissions of our direct suppliers.
Exclusions Value chain long-term net zero goal: Refer to exclusions for our shipping and suppliers’ targets.
Shipping long-term net zero target:
– GHG emissions from maritime transportation not owned or operated by BHP but chartered and paid for by BHP, where the
transportation was of third-party-produced products sold by BHP (pursuant to our third-party-trading activity).
– GHG emissions from maritime transportation not owned or operated by BHP but chartered and paid for by BHP or a third party,
where the transportation was of products purchased by BHP.
Direct suppliers long-term net zero target: Scope 3 emissions (for our direct suppliers) associated with our purchased goods and
services (including capital goods), fuel- and energy-related activities, business travel and employee commuting.
GHGs included Value chain long-term net zero goal: Defined by the available data, which differs by Scope 3 emissions category. We intend to
continue to improve our GHG emission calculations over time to encompass specific GHGs as data becomes available.
Shipping long-term net zero target: CO
2
, CH
4
, N
2
O
Direct suppliers long-term net zero target: Defined by the available data, which differs by Scope 3 emissions category. We intend
to continue to improve our GHG emission calculations over time to encompass specific GHGs as data becomes available.
Offsetting
We anticipate offsetting by our customers, suppliers and other third parties will play a role in meeting our long-term net zero goal
(and potentially our long-term net zero targets), particularly for residual GHG emissions in steelmaking which are not currently
expected to reach zero by CY2050. Where third parties offset their GHG emissions that appear in our reported Scope 3 emissions
inventory, 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 would need to
be high-integrity before we recognised that offsetting in our reporting. Our carbon offsetting integrity standards are available
at bhp.com/sustainability/climate-change/carbon-offsetting
Measurement approach
Value chain long-term net zero goal: Description of the calculation methodology used for each Scope 3 emissions category
can be found in the BHP GHG Emissions Calculation Methodology 2025, available at bhp.com/sustainability
Shipping long-term net zero target: Vessel- and voyage-specific GHG emissions calculated using maritime transport emission
factors from EU Regulation 2023/1805.
Direct suppliers long-term net zero target: As a proxy for measurement of the Scopes 1 and 2 emissions of our direct
suppliers, progress is currently measured using Categories 1, 3, 6 and 7 emissions data using a mix of spend-based
and activity-based methodology.
Key adjustments made
to reference year and
subsequent data
Value chain long-term net zero goal: Category 1, Category 3, Category 4 (maritime component), Category 9 (maritime component),
Category 10, Category 11 and Category 15 GHG emissions in reference year and performance data have been adjusted for the
divestment of our interest in Cerrejón (with an effective economic date of 31 December 2020), divestment of our interest in BMC
(completed on 3 May 2022), divestment of our interest in the Rhourde Ouled Djemma (ROD) Integrated Development (completed
in April 2022), divestment of our Petroleum business (merger with Woodside completed on 1 June 2022), BMA’s divestment
of the Blackwater and Daunia mines (completed on 2 April 2024) and acquisition of OZ Minerals (completed on 2 May 2023).
The remaining categories have not been adjusted due to their immateriality to our long-term net zero goal.
Shipping long-term net zero target: Category 4 (maritime component) and Category 9 (maritime component) GHG emissions in
reference year and performance data have been adjusted for a methodology change to use maritime transport emission factors
from EU Regulation 2023/1805, after The British Standards Institution (BSI) EN 16258 standard (the source of the emission factors
we previously used) was withdrawn in CY2023 (adjustment applicable for reference year and FY2020 to FY2024 performance
data), and have been adjusted for the divestment of our interest in BMC (completed on 3 May 2022), divestment of our Petroleum
business (merger with Woodside completed on 1 June 2022), BMA’s divestment of the Blackwater and Daunia mines (completed
on 2 April 2024) and acquisition of OZ Minerals (completed on 2 May 2023).
Direct suppliers long-term net zero target: Category 1 and Category 3 GHG emissions in reference year and performance data
have been adjusted for the divestment of our interest in BMC (completed on 3 May 2022), divestment of our Petroleum business
(merger with Woodside completed on 1 June 2022), BMA’s divestment of the Blackwater and Daunia mines (completed on
2 April 2024) and acquisition of OZ Minerals (completed on 2 May 2023). Categories 6 and 7 were not adjusted due to their
immateriality to our long-term net zero target.
52
BHP Annual Report 2025
Value chain GHG emissions (Scope 3 emissions) long-term net zero targets and goal definitions, assumptions,
adjustments and additional key details
Performance, adjusted Value chain long-term net zero goal: FY2020: 352.0 MtCO
2
-e | FY2021: 356.3 MtCO
2
-e | FY2022: 364.1 MtCO
2
-e |
FY2023: 371.6 MtCO
2
-e | FY2024: 377.0 MtCO
2
-e | FY2025: 378.2 MtCO
2
-e
Shipping long-term net zero target: FY2020: 6.6 MtCO
2
-e | FY2021: 7.2 MtCO
2
-e | FY2022: 7.1 MtCO
2
-e | FY2023: 6.4 MtCO
2
-e |
FY2024: 6.2 MtCO
2
-e | FY2025: 5.8 MtCO
2
-e
Direct suppliers long-term net zero target: FY2020: 11.6 MtCO
2
-e | FY2021: 11.7 MtCO
2
-e | FY2022: 11.5 MtCO
2
-e |
FY2023: 13.0 MtCO
2
-e | FY2024: 14.3 MtCO
2
-e | FY2025: 14.5 MtCO
2
-e
Target/goal setting
method
Set as a point in time, i.e. with the specific date of ‘by CY2050’ to reach the target or goal of net zero, while reflecting the
challenges and uncertainty and our inability (as BHP alone) to ensure Scope 3 emission reductions. As a result, the target or
goal is not based on a trajectory and does not imply a specific carbon budget, and Scope 3 emissions may fluctuate (with some
increases and/or non-linear decreases) during the period before the target or goal date.
Target/goal derived
using a sectoral
decarbonisation approach
No
Process for reviewing the
setting of the target/goal
The Board approves BHP’s significant social, community and sustainability policies (upon recommendation from the Nomination
and Governance Committee), including those related to climate change and climate transition planning, public sustainability goals
and targets (including for GHG emission reductions). We review our GHG emissions targets and goals as part of the periodic
development of an updated CTAP, or more frequently if required.
Process for monitoring
progress towards the
target/goal
Monitored on a yearly basis through our annual reporting processes, with progress reviewed by management and the Board as
part of publication of our annual reporting disclosures, or more frequently if required.
Third-party validation
of our target/goal
No, but we obtain limited assurance over our externally reported performance against our targets and goal.
Carbon budget for target/
goal period
Our targets and goal are not based on trajectories and do not imply specific carbon budgets.
Expected progression Progress towards our targets and goal is expected to be non-linear and affected by organic changes in our production
of commodities.
9.9 Nature and environmental performance
We recognise the interconnectivity of nature, climate and people and the
risks posed by the unprecedented global deterioration of nature, including
biodiversity. BHP’s business, our suppliers and customers, Indigenous
peoples and the local communities where we operate, all depend on and
enjoy nature and the ecosystem services it provides. We understand that
our operations and our environmental performance can impact the natural
environment, including the provision of ecosystem services.
We support the recommendations of the Taskforce on Nature-related
Financial Disclosures (TNFD) and will continue to progressively evolve
our disclosures in consideration of them.
For more information on BHP’s approach to water stewardship,
biodiversity and land, including associated strategies, refer to the
following sections and bhp.com/water and bhp.com/biodiversity
For more information on governance
of sustainability topics, including
nature, refer to OFR 9.2
For more information on climate,
community and Indigenous peoples,
refer to OFR 9.8, 9.11 and 9.12
Our Environment Global Standard, applicable to BHP’s operated
assets, details our mandatory minimum performance requirements
to deliver on our environmental-related commitments, which include
those in the Our environmental-related commitments table below, and
manage our environmental risks, using management systems aligned to
ISO14001. This Global Standard (alongside our Climate Change Global
Standard) also helps supports the achievement of our goals, targets
and commitments.
We do not explore, extract resources or operate within the boundaries of World Heritage listed properties.
We do not explore, extract resources or operate adjacent to World Heritage listed properties, unless
the proposed activity is compatible with the outstanding universal values for which the World Heritage
property is listed.
We do not explore, extract resources or operate within or adjacent to the boundaries of the International
Union for Conservation of Nature (IUCN) Protected Areas Categories I to IV, unless a plan is implemented that
meets regulatory requirements, takes into account stakeholder and partner (including Indigenous peoples)
expectations and contributes to the values for which the protected area is listed.
We do not explore, extract resources or operate where there is a risk of direct impacts to ecosystems that
could result in the extinction of an IUCN Red List Threatened Species in the wild.
We do not dispose of mined waste rock or tailings into a river or marine environment.
We do not use aqueous film forming foams (AFFF) containing per- and poly-fluoroalkyl substances (PFAS)
at our operated assets. We replace with fluorine free foam products.
Our
environmental-related
commitments are:
53Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Nature-related goal and targets
We are committed to contributing to the global goal of halting and reversing
nature loss by 2030, as outlined in the Kunming-Montreal Global Biodiversity
Framework. Our environmental commitments, 2030 Healthy environment goal
and context-based water targets support our contribution to this global goal.
Our 2030 Healthy environment goal is to create nature-positive
1
outcomes
by having at least 30 per cent of the land and water we steward
2
under
conservation, restoration or regenerative practices. In doing so we focus on
areas of highest ecosystem value both within and outside our own operational
footprint, in partnership with Indigenous peoples and local communities.
Key progress in FY2025 against our Healthy environment goal includes:
– We initiated our BHP Healthy environment goal roadmap by creating
an implementation plan for a 158,000-hectare voluntary conservation
project at Copper South Australia. The project is expected to be carried
out in FY2026.
– Carrapateena, Prominent Hill and legacy assets were incorporated into
the BHP Healthy environment goal roadmap, which now applies to all
our operated assets.
– In FY2025, the area under conservation, restoration or regenerative
management practices increased by over 14,500 hectares compared
to FY2024, to 98,415 hectares.
– We advanced our work on valuing nature by obtaining a technical peer
review of our natural capital metrics framework. For more information
refer to the Biodiversity section.
For more information on our 2030 goals, metrics and milestones
refer to OFR 9.4 and on progress against our Healthy environment
goal refer to the BHP ESG Standards and Databook 2025
available at bhp.com/ESGSD2025
For more information on our context-based water targets
refer to the Fresh water and oceans section
We are continuing to select projects from our BHP Healthy environment goal
roadmap for detailed execution planning and seeking opportunities to design
and advance projects in partnership with Indigenous peoples. We are also
monitoring the evolving external nature landscape, including developments
in nature-related frameworks, standards and methodologies and in definition
of the global nature ambition. We are exploring ways to respond to these
emerging insights in our approach to our Healthy environment goal.
Nature-related risk and impact management
Our approach to nature recognises the five key drivers of nature loss
outlined by the Intergovernmental Science-Policy Platform on Biodiversity
and Ecosystem Services – changes in land and sea use, direct exploitation
of natural resources, climate change, pollution, invasive species; across
the four realms of nature – land, ocean, fresh water and atmosphere.
We identify, assess and manage environment-related risks (threats
and opportunities) according to our mandatory minimum performance
requirements for risk management, described in OFR 7, and our
Environment Global Standard. In FY2025, we improved our understanding
and identified opportunities to improve management of nature-related risk
in our value chain. This included identifying prioritised environmental risks
to enhance the due diligence undertaken as part of our activities under
our Responsible Minerals Program, guided by the OECD’s Handbook on
Environmental Due Diligence in Mineral Supply Chains.
For more information on the nature-related impacts and dependencies
evaluated through the development of the BHP Healthy environment
goal roadmap refer to bhp.com/environment
For more information on our water-related risks refer to bhp.com/water
For more information on our Responsible Minerals Program
refer to OFR 9.13 and bhp.com/value-chain-sustainability
For more information on our environmental approach refer to the
Environment Global Standard and our nature-related management
and governance processes at bhp.com/environment
9 Sustainability continued
1. Nature-positive is defined by the TNFD Glossary version 1.0 as ‘A high-level goal and concept describing a future state of nature (e.g. biodiversity, ecosystem services and natural capital)
which is greater than the current state’. We understand it to include land and water management practices that halt and reverse nature loss – that is, supporting healthy, functioning ecosystems.
We are monitoring the evolving external nature landscape, including developments in nature frameworks, standards and methodologies and in definition of the global nature ambition.
2. Excluding areas we hold under greenfield exploration licences (or equivalent tenements), which are outside the area of influence of our existing mine operations. 30 per cent will be calculated
based on the areas of land and water that we steward at the end of FY2030. For more information refer to the BHP ESG Standards and Databook 2025 available at bhp.com/ESGSD2025.
3. Water performance data does not include Carrapateena or Prominent Hill operations. We intend to incorporate these operations in our reporting from FY2026, following an update
to reporting practices to align to the Minerals Council of Australia’s Water Accounting Framework (WAF) and ICMM guidance, ‘Water Reporting: Good Practice Guide (2nd edition)’.
4. CBWTs are intended to apply at the asset level for our operated assets. We will review the need to revise or create CBWTs when there are substantial changes to our portfolio or one of our projects
moves into the operational phase.
5. Small quantities of groundwater are extracted for pit dewatering and to recover seepage from tailings, to enable safe mining and support environmental control. This water is used for
operational consumption.
Fresh water and oceans
We depend on access to water and cannot operate without it. Our Water
Stewardship Position Statement outlines our vision for a water secure
world by 2030. This is supported by our Water Stewardship Strategy,
which focuses on understanding and managing water-related risk,
disclosure, contributing to the resolution of shared water challenges,
valuing water and sharing innovations and learning.
We report water data as part of the BHP ESG Standards and Databook
2025, available at bhp.com/ESGSD2025.
Key insights from our FY2025 water performance are outlined below.
3
– Seawater withdrawals remained our largest source, accounting for
52 per cent of total withdrawals at 221,860 megalitres (ML), similar
to 223,440 ML in FY2024.
– Low-quality water (Type 3) made up 62 per cent of total withdrawals,
with volumes stable at 266,920 ML, compared to 269,460 ML in FY2024.
– Freshwater withdrawals (Type 1 and 2) increased by 46 per cent, rising
from 111,120 ML in FY2024 to 162,740 ML in FY2025, primarily due to
increased rainfall and runoff at BMA.
– Water withdrawals in water-stressed areas decreased from 33,450 ML
in FY2024 to 31,830 ML in FY2025, largely due to the cessation of
terrestrial groundwater extraction at Cerro Colorado in December 2023.
– Water discharges rose by 15 per cent, from 128,100 ML in FY2024 to
147,510 ML in FY2025, driven by increased surface water discharge
at BMA following significant rainfall.
– Recycled and reused water volumes at Pampa Norte declined significantly
due to a further refinement of the calculation methodology and shift from
estimated to measured data in one of the flows.
Context-based water targets (CBWTs)
CBWTs are developed based on water-related risks in the catchment
areas and shared water challenges identified through an independent
Water Resource Situational Analysis (WRSA). The CBWTs aim to improve
our water management and contribute to collective benefit and shared
approaches to water management in the regions where we operate.
Following the FY2023 release of WRSAs and CBWTs, we added an
addendum to our Andean aquifers and San Jorge Bay WRSAs in FY2025
after stakeholder consultations were initially delayed due to social unrest
in Chile. This addendum, which reflects the participation of various actors,
presents the updated shared challenges and opportunities for collective
action for the Altoandina macrozone in the Tarapacá and Antofagasta
regions and for San Jorge Bay, all in northern Chile. We also published
a WRSA for the Hunter River catchment in New South Wales, Australia,
and released a CBWT for NSWEC. The NSWEC CBWT aims to enhance
ecosystem connectivity through revegetation and targeted restoration
along the Hunter River riparian zones. Additionally, we released a CBWT
for the Globe-Miami legacy asset site in Arizona, which aims to improve
the sustainability of regional water resources by diverting natural water
flows around mine-affected areas. This CBWT was informed by the
Cobre Valley Watershed Restoration and Action Plan, a report developed
by the Cobre Valley Watershed Partnership with contributions by BHP as
a stakeholder. We have now achieved our commitment to develop CBWTs
within our operations but may release further CBWTs when appropriate
for the operating, environmental and social context.
4
We continue to seek opportunities to source our water from lower-grade
sources, particularly in water-stressed areas. Both Copper South Australia
and Pampa Norte in Chile have CBWTs to materially reduce terrestrial
water use. Escondida’s operational water withdrawals have been sourced
from desalinated seawater since FY2020
5
. Both Escondida and Pampa
Norte have a CBWT to improve the water efficiency in mining operations
by 10 per cent by FY2030 from a FY2022 baseline, aiming to optimise
marine water use.
54 BHP Annual Report 2025
In some areas, we extract more water than we use through mine
dewatering and have set our CBWTs in consideration of this local
context. For example, one of WAIO’s CBWTs is ‘at least 50 per cent of
WAIO surplus water will be prioritised for beneficial use to improve the
sustainability of regional groundwater resources or generate social value’.
For more information on WRSAs and CBWTs refer to bhp.com/water
and bhp.com/sustainability/environment/water/shared-water-challenges
Detailed information on water accounting and reporting of metrics
required by the ICMM Guidance is available at bhp.com/water
For more information on our water performance in FY2025 and case
studies on activities we are undertaking, including BHP’s Global water
Challenge, refer to bhp.com/water
Biodiversity
Our Group-level biodiversity strategy outlines our purpose and strategic
priorities and is designed to inform operational decision-making and high-level
strategic decisions. It enables alignment of asset-level biodiversity land and
water objectives and supports delivery of our 2030 Healthy environment goal.
The focus areas in our biodiversity strategy are valuing natural capital,
innovation and collaboration, and nature-related disclosures.
In FY2025, we advanced our work on valuing nature by obtaining a
technical peer review of our natural capital metrics framework, which is
designed as a foundational framework to select locally relevant metrics
on the state and productivity of nature and guide the development of BHP
natural capital accounts. We have identified an initial set of core metrics
to track the effectiveness of our land and water management actions,
including the conservation, restoration and regenerative actions under
our 2030 Healthy environment goal.
We have continued to evolve our nature-related disclosures. For example,
we have updated our geospatial land data reporting methodology, applying
a standardised global equal area projection. We have also developed an
in-house methodology to map important biodiversity and ecosystems,
based on global, publicly available datasets. We report biodiversity
data as part of the BHP ESG Standards and Databook 2025, available
at bhp.com/ESGSD2025.
Our work on innovation and collaboration continued through on-ground
action in FY2025. For example:
– We renewed our commitment to Bush Blitz, a partnership between BHP,
the Australian Government and Earthwatch Australia that commenced in
2010, which is Australia’s largest nature discovery program to document
plants and animals. In September 2024, BHP and the Australian
Government made a joint investment of A$11.6 million, of which BHP
contributed A$5.8 million, to extend the program for another five years.
– Since FY2021, we have partnered with Curtin University on the use of
environmental DNA (eDNA) as a novel biomonitoring tool in developing
improved ecosystem condition assessments. This program includes
research on sampling eDNA from surfaces and air in terrestrial
ecosystems, exploring abundance measures from eDNA sequence
data, developing ecosystem condition indicators for wetlands and
incorporating eDNA data into natural capital accounting approaches.
As part of this program, in FY2025 we undertook eDNA sampling at
several of our operated assets.
Progress against FY2025 context-based water target milestones
Milestone and due date Progress
FY2024, ongoing
Make available unutilised
1
BMA water
allocations to the temporary water trading
market for each year from FY2024
This milestone was achieved in FY2024 and again in FY2025.
4 GL of water allocations was traded on the temporary water
trading market in FY2025.
BMA
FY2024, ongoing
Cease extraction of terrestrial water
for Cerro Colorado operational use
.
This milestone was achieved in FY2024 and again in FY2025.
Cerro Colorado ceased extracting water from the Lagunillas
borefield for operational use in December 2023. Some extraction
was maintained to support replenishment of the Lagunillas wetland,
which continued in FY2025, with approximately 625 ML extracted
and reinjected.
A small amount of terrestrial water (~22 ML during FY2025 or
approximately 60 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.
Pampe Norte
FY2024
Facilitate establishment of a Northern
Goldfields catchment regional water
working group
The intent of this milestone was achieved in FY2025.
BHP participated in, rather than facilitated the establishment
of, the Northern Goldfields catchment regional water working
group. This was following the establishment of the working group
by the Tijwarl Aboriginal Corporation, which occurred after this
milestone was set. The first meeting that BHP participated in
was held in February 2025.
Western
Australia
Nickel
FY2024, ongoing
Implement a permanent daily abstraction
limit on Wellfield A at 5 ML/d
This milestone was achieved in FY2024 and again in FY2025.
Daily abstraction from Wellfield A remained below 5ML/d
throughout FY2025.
Copper
South
Australia
FY2025
Protect springs from animal and human
degradation by fencing and controlling
feral animals and weeds on BHP pastoral
leases, and contribute to similar programs
off-lease
This milestone was achieved in FY2025.
Protection on BHP pastoral lease includes stock-proof fencing,
feral animal and weed inspections and control programs.
Fencing activities included completion of fencing at the Gosse
and Emerald Significant Environment Benefit areas, and the
active spring within Jacob Springs group.
BHP contributed A$300,000 to the off-lease Lake Eyre Basin
Riparian Vegetation and Springs Project, a partnership with
the South Australian Arid Lands Landscape Board.
1. Some water allocations at BMA are not made available for sale ‘in year’ and are retained for strategic contingency purposes as ‘carry over’. Unutilised ‘carry over’ is subject to ongoing
assessment throughout the year as to what can be made available. At 30 June, any unused ‘carry over’ amounts are incorporated into the following financial year’s ‘in year’ water for the
total river scheme’s announced allocations by the Resource Operator.
55Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
In FY2025, BHP owned, leased or managed an area of just under 7.9 million hectares
1
consisting of:
Outcomes we seek How we manage
Operational areas
Approximately 149,700 hectares
disturbed
Predominantly for operational purposes
– avoiding and minimising impacts to the
environment and our host communities
from our operational activities
– no net loss of biodiversity over
mine lifecycle
– compliance with environmental permits
– Global Standards, including the Environment
Global Standard, Climate Change Global Standard
and Closure and Legacy Management Global Standard
– mitigation hierarchy
– environmental-related commitments
– Indigenous Peoples Policy Statement
– Asset Environment Management Systems
– risk management
– 2030 social value goals, including Healthy environment
goal and associated BHP Healthy environment goal
roadmap, and context-based water targets
Non-operational areas
Including areas we hold
for strategic purposes or
alternative use (e.g. pastoral
or conservation)
– focus area for our Healthy environment
goal of at least 30% of the land and
water we steward under conservation,
restoration or regenerative practices
– build resilience of natural environment,
focusing on highest ecosystem value
– strengthening partnerships with
Indigenous peoples
– Global Standards, including Environment Global Standard
– 2030 social value goals, including Healthy environment
goal and associated BHP Healthy environment goal
roadmap, and context-based water targets
– environment-related commitments
– Indigenous Peoples Policy Statement
– risk management
Outside BHP footprint
Refers to areas held by others,
including thought leadership
on approach to contributing to
international efforts to halt and
reverse nature loss
– contributing to positive
conservation outcomes beyond
the areas where we operate
– partnerships and funding for both on-ground action,
piloting new concepts and thought leadership initiatives
– BHP funding of the BHP Foundation (non-profit organisation)
1. Land data is calculated as the total area of land owned, leased or managed by BHP at 30 June 2025. This value includes greenfield exploration licences (or equivalent tenements),
which are outside the area of influence of our existing mine operations.
For more information on our approach to biodiversity and land
management and case studies on activities we are undertaking
refer to bhp.com/biodiversity
For more information on our application of the
mitigation hierarchy refer to bhp.com/environment
– We extended our partnership with Care for Hedland for two more years,
celebrating 20 years of collaboration. A key program is the flatback
turtle monitoring program on Port Hedland beaches during nesting
and hatching season.
– We continued the pilot of the Seascape Framework, one of the
world’s largest Indigenous created and managed marine conservation
initiatives, in partnership with Conservation International based in Fiji.
For more information on our 2030 goals, refer to OFR 9.4. For
information on our biodiversity strategy refer to bhp.com/biodiversity
For more information on our approach to biodiversity and land management
and case studies on activities we are undertaking, including our natural
capital metrics framework, refer to bhp.com/biodiversity
Land
As at 30 June 2025, BHP owned, leased or managed approximately
7.9 million hectares of land. Approximately 2 per cent (approximately
149,700 hectares) of this area is currently disturbed for mining operation
purposes and approximately 14 per cent (approximately 23,800 hectares)
of land we have disturbed is currently rehabilitated. In FY2025, the WAIO
progressive rehabilitation program reached a significant milestone,
completing over 1,000 hectares of land rehabilitation – most of which
was delivered by Traditional Owner rehabilitation contractors.
Most of the area we steward is in Australia and is for non-operational
land uses, such as pastoral leases or land set aside for conservation.
BHP’s approach to environmental management is tailored to different
area types in our portfolio.
Atmosphere and air quality
We are improving how we manage air quality for particulate matter and
gaseous emissions. Our programs use real-time monitoring, source
sampling, incident tracking and risk-based assessments to better
understand and control air quality impacts. Our Environment Global
Standard requires an air quality management plan where a material
risk of air quality related impact on community wellbeing or a sensitive
environmental receptor is identified. Many of our sites have ongoing
multi-year improvement initiatives to enhance long-term environmental
performance on air quality. We report air emissions (including greenhouse
gases and non-greenhouse gases) as part of the BHP ESG Standards
and Databook 2025, available at bhp.com/ESGSD2025, and discuss our
approach to and management of these at bhp.com/environment. In FY2025,
we recorded a significant decrease in sulphur dioxide emissions following
Western Australia Nickel going into temporary suspension.
For more information on our approach to air quality refer to the Pilbara
Air Quality Program case study at bhp.com/sustainability/environment
For more information on our approach to managing occupational
exposures associated with air quality refer to OFR 9.6
56
BHP Annual Report 2025
Environmental legal cases
In FY2025, seven fines totalling $US8,065,961 were issued, and then paid,
in relation to environmental laws and regulations at our operated assets.
For more information refer to the BHP ESG Standards and
Databook 2025 available at bhp.com/ESGSD2025 and Section 13
of the Directors Report.
An example from Monturaqui (Escondida) is described below.
Monturaqui (Escondida)
In March 2022, the Chilean Environmental Regulator (SMA) sanctioned
Escondida, concluding it had breached its environmental permit due to its water
extraction from the Monturaqui aquifer. In March 2022, the SMA imposed a fine
of approximately US$8 million. In February 2023, Escondida filed an appeal
before the First Environmental Court seeking to annul the SMA decision.
Shortly after the March 2022 SMA decision, two related environmental
damage claims were filed in the First Environment Court of Antofagasta
by the Attorney General’s Office and the Peine Indigenous community.
In October 2024, the case’s claimants, the Chilean Attorney General’s Office
and the Peine Indigenous community, and defendants, Escondida, Compañía
Minera Zaldivar (CMZ) and Albemarle (the latter two being other companies
that extract (or previously extracted) from the Monturaqui aquifer), agreed
on a US$98 million settlement proposal which was approved by the First
Environmental Court. BHP and the involved parties are defining the schedule
and governance procedures to implement the agreement. Escondida’s
share is US$76 million. At the same time as it approved the settlement,
the Environmental Court also issued a decision denying Escondida’s
separate appeal against the US$8 million SMA fine. Escondida did not appeal
the latter decision to the Supreme Court and paid the fine. This concludes the
environmental damages claim.
Engagement
For activities related to our operated assets, BHP engages across
communities, Indigenous peoples’ representatives, government, industry
association memberships, our customers and suppliers, business and
civil society on environmental management and nature-related topics.
Through industry associations, such as the International Council on Mining
and Metals and the CEO Water Mandate, we contribute to their advocacy
efforts with governments.
In FY2025, our focus within the industry has been on streamlining approvals
and permits while maintaining environmental performance standards
and recognising that environmental, social and economic factors must
be considered in these processes. Specific examples include:
– engaging directly and indirectly (through the Minerals Council of Australia
and Business Council of Australia) with the Australian Government on
Environment Protection and Biodiversity Conservation Act reforms,
expressing alignment with the Government’s aim to reform national
environmental laws so it achieves the right balance between better
outcomes for the environment and supporting economic growth,
investment and job creation
– indirect advocacy through the Chilean Mining Council regarding a legislative
bill that modifies various legal bodies to strengthen environmental institutions
and improve their efficiency; a bill on the use of seawater for desalination;
and a bill on sectoral authorisations. For more information refer to the
Chilean Mining Council at consejominero.cl/documentos
9.10 Tailings storage facilities
Tailings storage facilities (TSFs) are dynamic structures that accommodate the
leftover materials from the processing of mined ore. Managing the safety and
integrity of our TSFs across our operated and closed assets to protect people,
the environment and communities where we operate is a primary focus.
Our TSF Policy Statement is available at
bhp.com/sustainability/tailings-storage-facilities
Our approach to TSF governance
For TSFs, we mandate three key first-line roles across our operated assets:
Dam Owner, Responsible Tailings Facility Engineer and Engineer of Record.
The second line comprises dam safety reviews, independent tailings review
boards, tailings governance reviews and project-specific, independent-peer
reviews, with our Internal Audit team comprising the third line.
For more information on the three lines model refer to OFR 7
In accordance with the Global Industry Standard on Tailings Management
(GISTM), the outcomes and actions resulting from the activities at each line
are required to be documented, monitored, actioned and communicated
on a regular basis to the relevant asset personnel, four Accountable
Executives, who oversee TSF operations and governance, Executive
Leadership Team, and the Board’s Committees in accordance with
operational and governance processes.
Global Industry Standard on Tailings
Management disclosure
We are committed to achieving alignment with the global benchmark
for social, environmental and technical outcomes described within the
GISTM for all operated TSFs. We support detailed, transparent and
integrated disclosure regarding TSF management, publishing a public
disclosure document on our website for all TSFs in alignment with the
GISTM, supported by the BHP ESG Standards and Databook available
at bhp.com/ESGSD2025. We have engaged a third-party contractor
to progressively validate GISTM conformance aligned to the ICMM
recommended timeframes.
As of August 2025, 61 of BHP’s TSFs are aligned with GISTM, with the
remaining nine working towards alignment. Of the partially aligned TSFs,
one TSF is classified as extreme consequence,
1
three TSFs are classified
as high consequence and the remainder are classified as significant or low
consequence. We have received third-party validation of our alignment
for 22 TSFs, representing 92 per cent of our very high and extreme
consequence classification TSFs. The remainder of the aligned TSFs
are based on BHP’s assessment of GISTM alignment. These TSFs will
be validated by a third party in line with ICMM recommended timeframes.
The classification of a TSF as partially aligned with GISTM is not a
statement on that TSF’s risk or safety, but rather an assessment on
the TSF’s conformance to the GISTM. BHP’s governance and risk
management frameworks are in place across our operated sites and
manage TSF safety and integrity. The GISTM public disclosure document
details the work required and timeframe to achieve alignment for those
TSFs that are currently only partially aligned.
For our Global Industry Standard on Tailings Management
Public Disclosure 2025 refer to bhp.com/sustainability
9.11 Community
Understanding communities
Our approach to understanding community priorities and concerns includes:
At a global level, in FY2025:
– BHP invited members of host communities, including Indigenous
peoples, to participate in community perception surveys at our
operated assets and several exploration regions, providing their
perspectives regarding their community priorities, of BHP and our
industry more broadly.
– We progressed implementation of the feedback from a review by an
external human rights expert of our globally consistent methodology
for community and human rights impact and opportunity assessments,
which was first trialled in FY2023 and FY2024. The feedback has
formed the basis for a revised methodology, which seeks to better
integrate stakeholder engagement with the assessment and facilitate
more consistency across our operated assets. Our next assessments
using the revised methodology will commence from FY2026 and these
will be used to inform our business and functional plans.
1. This TSF’s classification increased to extreme during FY2025. Information on the basis of the current classification, along with general information on consequence classifications is
available in the GISTM Public Disclosure at bhp.com/sustainability
57Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
9 Sustainability continued
Community engagement and grievances
We internally track and report instances of community concerns,
complaints and grievances received through our operational grievance
mechanisms. In FY2025, there were 109 concerns and complaints, and
one grievance received through our operated assets globally. The most
frequent theme was conduct and behaviour, which refers to concerns over
levels of communication or engagement, employment and procurement
practices, and ethical behaviours. We also receive complaints related to
operational impacts, such as road traffic, noise and dust. All operated
assets seek to resolve and where appropriate, remedy adverse impacts
to community members we have caused or contributed to through
our operations.
Community concerns, complaints and grievances
Total 110
Conduct/behaviour 39
Road/rail 33
Dust/air quality 8
Environment 6
Blasting 5
Infrastructure damage 5
Noise 4
Cultural heritage 3
Spill or contamination 3
Lighting 2
Water 2
To support continuous improvement of our community grievance mechanisms,
we completed a second line assurance review of the grievance
mechanisms at our operated assets and some exploration regions, which
highlighted opportunities to increase accessibility and improve our internal
data reporting and evaluation practices. These opportunities are expected
to be pursued throughout FY2026.
For more information on stakeholder concerns received through
our local grievance mechanisms, local stakeholder engagement
and ongoing community research, including community perception
surveys, refer to the BHP ESG Standards and Databook 2025
available at bhp.com/ESGSD2025
Community
due diligence cycle
Our process to identify, prioritise, address
and evaluate key risks (both threats and
opportunities) has several components,
including external research
Insights into our performance,
including:
– Stakeholder engagement
– Complaints and grievances
– Social value indicators
Insights into external context and
peoples’ concerns and priorities.
– Stakeholder engagement
– National social policy profiles
– Baseline studies
– Perception and relationship
health surveys
Integrate identified risks (both
threats and opportunities) and
impacts into the plans and processes
where they can be best managed.
– Community plans
– Asset plans
– Global and asset
risk profiles
Analysis to identify and prioritise
potential and actual risks (both
threats and opportunities)
and impacts, approaches to
prevention, mitigation, remedy
and/or enhancement.
– Community impact and
opportunity assessment
– Human rights impact assessment
Monitoring
and evaluation
External
research
Risk, impact
and opportunity
assessment
Plans and
integration
Stakeholder
engagement,
communication,
and disclosure
In support of our social value scorecard, we progressed understanding
of ‘co-creation’ or ‘co-design’ across our business. The terms co-creation
and co-design are used interchangeably within this report. Co-creation is
a strategic approach involving the integration of diverse partners’ resources,
knowledge and networks to resolve complex collective challenges or
realise more enhanced outcomes through collaboration. It places BHP
within a larger ecosystem where stakeholders actively participate in
project development and delivery. In FY2025, seven of our nine operated
assets developed and implemented co-created plans with communities,
with 100 per cent of those programs achieving shared outcomes on track
according to plan, detailed in the Regional Community updates below.
As our understanding of co-creation has evolved, we see that it is a
methodology that has potential for broad application. Going forward, our
metrics for the Thriving empowered communities pillar will shift to focus
on measurable outcomes of community programs from FY2026 to FY2030,
while we will look for meaningful opportunities to incorporate co-creation
as a concept in other pillars. To support this transition, we developed
an internal co-creation resource hub and held a global co-creation
masterclass training series for a cross section of employees. The series
was designed to enhance co-creation awareness and capability across
our social value themes and will be advanced further in FY2026.
For more information on our social value scorecard, including
our co-creation metrics and milestones, refer to OFR 9.4
Regional community updates
The following section highlights the key issues identified through community
research and stakeholder engagement and the actions taken to address
those issues at each operated asset.
Minerals Australia
Western Australia Iron Ore: In Port Hedland, local government challenges,
liveability, childcare and cost-of-living pressures remain key concerns, and the
community is looking for tangible investments to support community growth.
We continue to work to develop strong community relationships. In Newman,
negative perceptions towards fly-in fly-out (FIFO) arrangements and vacant
BHP housing persist. We are working with the community to co-create
programs to address these concerns, such as the East Newman Precinct
Structure Plan, which aims to create a thriving community by establishing
key priorities that will allow for better opportunities in healthcare, housing,
education and cultural wellbeing in future redevelopments and design.
58 BHP Annual Report 2025
Copper South Australia: Increased engagement with the Roxby Downs
community is improving relations. Residents expressed appreciation
for our investment in local amenities, while also signalling expectations
for broader contributions in areas such as essential services and
retail offerings. Relationships with stakeholders in Prominent Hill and
Carrapateena remained generally positive through continued on-ground
engagement and support in the communities. The community perception
surveys indicated that Indigenous peoples located near Carrapateena
have some distrusting views towards BHP and the sector. Since BHP’s
acquisition of Carrapateena, we have expanded our engagement program
across the Port Augusta community and increased cultural awareness
training at the Carrapateena site, and engagement will be ongoing.
Projects such as the Carrapateena Socio-Economic Knowledge Base
co-created with the Spencer Gulf Cities provided shared community
contribution and resources to enhance local planning and decision-making.
BHP Mitsubishi Alliance (BMA): We continue to engage with the community,
councils and other local organisations to address negative perceptions of
employment strategies and concerns around BHP’s long-term commitment
and level of investment. In Moranbah and Dysart, we continue to work with
local stakeholders through the SMART Transformation Project to co-create
programs to address priority community issues, such as childcare, housing,
education and community health and wellbeing.
New South Wales Energy Coal: Relationships continue to strengthen
due to intensive engagement regarding BHP’s decision to close the
operations in 2030 and efforts to co-design solutions with the community.
There remains significant concern over economic uncertainty related to the
energy transition in the Hunter Valley. Continued engagement and an open
and transparent approach to closure planning will be critical to balancing
business, community and regulatory needs and expectations.
Nickel West: Community concerns over the economic impacts of suspending
operations are prevalent. BHP has sought to address this through
commitments to redeploy all front-line workers and support a A$20 million
Community Fund for improved liveability and economic diversification.
Minerals Americas
Escondida: Escondida continues to partner with local communities and
stakeholders to be a valued company in the Antofagasta region, highlighting
its commitment to education and local development. Community concerns
are focused on a perceived security crisis, cost-of-living and unemployment
rates, immigration issues, gaps in the healthcare system and concerns
about the potential environmental impacts of industrial activity in the area.
The announcement of Escondida’s growth plan has raised community
expectations about how this investment will translate into tangible benefits
for the quality of life of the region.
Pampa Norte Spence: Our social investment programs in Sierra Gorda and
Baquedano are positively recognised by the communities. Our main efforts
are focused on education and employability opportunities, as we aim to train
the professionals who will lead the mining industry of the future, reinforcing
our commitment to our host communities.
Pampa Norte Cerro Colorado: Cerro Colorado remains temporarily closed,
however we have made progress in the potential reopening process with
the local government and key stakeholders by reestablishing our community
engagement and investment plans to address concerns raised by the closure.
We are working to establish Early Voluntary Participation Agreements through
a partnership with CORFO, the Chilean Economic Development Agency,
and the Agency for Sustainability and Climate Change, creating a dialogue
between local government, the private sector, communities and Indigenous
peoples to allow for co-created and mutually beneficial results.
Jansen: Housing and childcare shortages in the community remain
a challenge. We have collaborated with communities to co-create
opportunities and develop innovative strategies, including a housing
stimulation program. We continue to highlight the Jansen project and
operational contributions to the local economy along with our investment
in mining education skills and training.
Legacy assets: BHP’s responsible closure practices continue to support
positive community relationships. Engagement with local communities, First
Nations in Canada and Native American tribes in the United States has been
an important part of the ongoing relationship restoration that seeks to address
long-standing concerns regarding site maintenance, remediation, community
access to rehabilitated lands and economic transition.
For more information on our approach to community,
refer to bhp.com/communities
9.12 Indigenous peoples
Our Indigenous Peoples Policy Statement outlines our global approach
to engaging and partnering with Indigenous peoples across the entire
lifecycle of our activities, including exploration, closure and post-closure.
1
In FY2025, we continued our efforts to operationalise our policy
commitments to respect the rights of Indigenous peoples and seek ‘free,
prior and informed consent’ (FPIC) for proposed new operations and capital
projects that may potentially impact Indigenous people in accordance with
the approach set out in our Indigenous Peoples Policy Statement. Globally,
we continued the pilot of an Indigenous Peoples Risk Assessment (IPRA)
process for assessing and managing the potential impact to Indigenous
people across 14 human rights-related risk areas and to identify whether
FPIC should be sought from potentially affected Indigenous peoples.
We also continued to pilot a template for an FPIC strategy that sets out the
proposed budget, schedule and milestones to meet during engagements
with Indigenous peoples to seek their consent. Regionally, Indigenous
Engagement teams in North America, Chile and Australia have prepared
internal FY2026–FY2030 Regional FPIC Implementation Plans to give
effect to BHP’s FPIC commitments under the Indigenous Peoples Policy
Statement within the context of their different country situations.
We are continuing to design our standards and processes for the collection,
access and reuse of cultural information that pertains to Indigenous peoples.
Work was conducted internally in FY2025 to identify the areas of BHP’s
business and activities that are relevant to Indigenous peoples’ cultural
information and data sovereignty, and agree priority actions for FY2026.
Indigenous partnerships
Under the Indigenous partnerships pillar of our social value framework,
we have set ourselves an aspirational goal of delivering respectful
relationships that hear and act upon the distinct perspectives, aspirations
and rights of Indigenous peoples and support the delivery of mutually
beneficial and jointly defined outcomes (refer to OFR 9.4).
In FY2024, we completed an inaugural assessment of the health of our
relationships with a range of our Indigenous partners. The feedback
indicated that relationships had been strained in the past. While BHP had
made some progress in our relationships with Indigenous partners, there
was still more to do to achieve our goal of delivering respectful relationships
that hear and act upon the distinct perspectives, aspirations and rights of
Indigenous peoples, and support the delivery of mutually beneficial and
jointly defined outcomes. Following the release of the results, we worked
to deepen and strengthen our engagement with Indigenous partners in
Australia, Canada and Chile in FY2025. Our regional Indigenous Peoples
Plans in Australia and Canada were reviewed considering the partner
feedback we received, with key actions incorporated into how we implement
those plans. Partner feedback was also incorporated into the draft for the
Regional Indigenous Peoples Plan in Chile. We plan to report on this metric
every three years, with the next report scheduled for FY2027.
Progress to plan
We ‘partially met’ our FY2025 social value scorecard short-term milestone
for ‘Indigenous voices and perspectives are incorporated into co-designed
priorities in each region’, as two out of three countries (Australia and
Canada) have published a co-designed regional Indigenous Peoples
Plan that incorporates the voices and perspectives of Indigenous peoples.
Minerals Australia’s sixth Reconciliation Action Plan (RAP), which outlines
specific commitments to Indigenous peoples in Australia, was released
on 23 June 2023 and covers FY2024 to FY2027.
2
The RAP target due to
be completed in FY2025 was for Australian assets to deliver work-ready
programs that target Traditional Owners and Aboriginal and Torres Strait
Islander people to support job readiness, and this was achieved as
planned. We are tracking the delivery of the RAP commitments which are
due by the end of FY2027. Monitoring of overall progress occurs through
the BHP Australian Indigenous Peoples Working Group (AIPWG) that is
attended by the Minerals Australia Business President and Chief Legal,
External Affairs and Governance Officer.
Minerals Americas approved its Canada Indigenous Partnerships Plan
(CIPP) in FY2024.
3
There are nine total CIPP objectives to be achieved
over the life of the plan and all of them are on track as at the end of
FY2025. There are specific actions that support these nine objectives
and 10 of those actions were completed in full in FY2025. An internal
CIPP implementation team meets quarterly to monitor progress.
Chile intends to publish a regional Indigenous Peoples Plan in FY2026.
1. For more information about our Indigenous Peoples Policy Statement refer to bhp.com/-/media/documents/ourapproach/operatingwithintegrity/indigenouspeoples/221110_
indigenouspeoplespolicystatement_2022
2. For more information about the Australian RAP refer to bhp.com/-/media/project/bhp1ip/bhp-com-en/documents/careers/indigenous-peoples-and-bhp/200921_bhpreconciliationactionplan.pdf
3. For more information about the Canada Indigenous Partnerships Plan refer to bhp.com/-/media/documents/ourapproach/operatingwithintegrity/indigenouspeoples/240808_bhpcippreport.pdf
59Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Indigenous procurement and employee participation
In FY2025, we continued to improve engagement with Indigenous
businesses across all our operating regions. Compared to FY2024,
our direct global spend with Indigenous businesses increased by
40 per cent to US$853 million in FY2025 and the number of Indigenous
vendors engaged rose by 19 per cent to 318. In Australia, our FY2025
direct spend totalled US$505 million. In Canada, our FY2025 direct spend
totalled US$323 million. Our direct spend in Chile totalled $US24 million.
1
For more information on Indigenous employee participation including
our social value scorecard metrics refer to OFR 9.4 and OFR 9.5
Minerals Australia
Since FY2023, BHP has been undertaking a native title agreement-making
program with 19 Traditional Owner groups across Australia, involving the
negotiation of 12 new agreements where BHP does not have agreements
in place, and the renegotiation of nine existing agreements. In FY2025,
we completed a review of the Tjiwarl Agreement and negotiated two new
agreements: the Kokatha Oak Dam underground access retention lease
Indigenous Land Use Agreement and an agreement with the Barada
Barna Traditional Owners, which included renegotiation of cultural heritage
management plans (CHMPs) across BMA mining operations. We are
progressing negotiations with other Traditional Owner groups in Australia
and these remain ongoing. In addition, two CHMPs were endorsed by
Banjima for submission to the host government.
Minerals Australia has a set of Regional Standards that define the
minimum requirements for cultural heritage management in all Minerals
Australia assets and for exploration work undertaken in Australia.
Throughout FY2025, Minerals Australia undertook an internal assurance
program across our Australian operated assets to understand how cultural
heritage management is being undertaken at each operated asset in
alignment with the Regional Standards. All operated assets were found
to be generally compliant with the minimum requirements set out in our
Regional Standards. Education and advocacy play a key role in embedding
the cultural heritage systems and processes at the frontline for better
protection of cultural heritage.
Our third Traditional Owner Forum was held in Tarndanya (Adelaide) in
October 2024, bringing together senior representatives from 14 Traditional
Owner groups and BHP leaders. The FY2025 Forum centered around
Traditional Owner employment, cultural safety, elevating cultural awareness
and competency, and recognising cultural nuances. Representatives from
the First Nations Major Projects Coalition in Canada also participated as
guest speakers.
In FY2025, we partnered with the Australian Institute of Company Directors
(AICD) to support the development of a First Nations director pipeline.
The Board Governance Prescribed Body Corporate and Indigenous
Community Organisation Scholarship Program aims to provide in-classroom
Board governance education to 250 First Nations executives and aspiring
Board directors in regional locations in South Australia and Western Australia.
Participants will also have access to a leadership workshop and coaching.
Minerals Americas
Chile
We are working to strengthen our relationships with Indigenous peoples
in Chile. We are carrying out processes for seeking FPIC with Indigenous
communities for our capital projects at Escondida and Cerro Colorado.
For Cerro Colorado, we continue to engage with Indigenous peoples to
include their voices during the study phases for multiple projects, including
as it relates to mine life extension. At the end of FY2025, we reached
agreements with six groups and continued conversations with one other.
We are also creating opportunities for Indigenous people to benefit from
employment, Indigenous business programs, education initiatives and
cultural initiatives in Chile. For example, Escondida has an education
program for Indigenous children and young people that includes
scholarships for primary and university education, family workshops,
vocational orientation and job coaching, among other benefits.
In FY2025, we continued to execute the agreements that resolved past
grievances raised by Indigenous peoples about the use of continental water
that were reported previously in our FY2024 and FY2023 Annual Reports.
Cerro Colorado is implementing a recuperation plan for the Lagunillas
aquifer. In Escondida, we have reached two settlement agreements to
remedy the impacts of water extraction on salt-lake ecosystems, with one
agreement relating to Salar de Punta Negra and a second agreement for
the Monturaqui aquifer. As part of the Salar de Punta Negra settlement,
we carried out cultural heritage measures, such as ethnographic studies
to understand the Peine Atacameño Indigenous community’s way of
life and connection with Salar de Punta Negra. We also supported the
community to study the potential to pursue tourism opportunities as part
of its community development plan for Peine.
Canada
BHP has Opportunity Agreements with all six First Nations communities
in the vicinity of our Jansen potash project. The agreements formalise
our partnership in the areas of employment, capacity development and
business development. During FY2025, progress was made towards the
implementation and execution of these agreements through key projects,
such as the upgrades in Muskowekwan First Nation to their powwow
arbour and sports and rodeo grounds.
At a national level, we continue to engage and partner with Indigenous-led
organisations to extend BHP’s presence around Canada and contribute
to efforts to foster positive change. In 2025, BHP was a major sponsor
for the First Nations Major Project Coalition annual conference, Valuing
Reconciliation in Global Markets, with keynote presentations and
attendance by executive leadership (CEO and Chief Legal, Governance
and External Affairs Officer).
United States and Canada – Legacy assets
BHP owns more than 20 former copper, uranium and other mine sites,
called legacy assets, in the US southwest and across Canada. A number
of these were acquired by BHP via broader transactions after they had
ceased active mining operations and never operated as active mines by
BHP. We engage with Indigenous groups whose traditional territories are
near our legacy assets and at varying stages of resetting or establishing
collaborative working relationships and partnerships. In FY2025, we
updated our North American Cultural Heritage Management Plan and
developed new, mandatory Cultural Heritage Awareness training for all
North American legacy asset employees and contractors. In FY2025,
BHP commenced the development of a US Indigenous Partnerships Plan
(USIPP) to operationalise BHP’s Indigenous Peoples Policy Statement.
We anticipate it will be completed by the end of FY2026.
United States – Resolution Copper Mining
Resolution Copper Mining is owned by Rio Tinto (55 per cent) and BHP
(45 per cent) and managed by Rio Tinto. We acknowledge the Resolution
Copper project area includes areas of cultural significance for Native
American Tribes and is the subject of ongoing litigation.
In June 2025, the US Forest Service republished the Final Environmental
Impact Statement (FEIS), a prerequisite for the land exchange (LEX) with
the US Government to secure land critical for the project, under the 2014
Land Exchange Act. The FEIS and LEX remain under ongoing litigation.
The project continues to be studied and mine development
activities remain subject to state and local permitting requirements.
Resolution Copper Mining continues to engage in these regulatory
processes and has publicly stated its commitment to ongoing engagement
with Native American Tribes. This includes efforts to understand and
address concerns, identify opportunities to create shared value and
respect Indigenous rights. We continue to monitor Resolution Copper
Mining’s engagement, FPIC and agreement-making processes.
9 Sustainability continued
1. Indigenous procurement data does not include FY2024 data from former OZ Minerals Australian assets for comparative purposes. For definitions for Indigenous businesses in each
operating location refer to the BHP ESG Standards and Databook 2025 available at bhp.com/ESGSD2025
60 BHP Annual Report 2025
9.13 Value chain sustainability
Responsible supply chains
Responsible supply chains is one of our six social value framework pillars,
with our 2030 goal being to create sustainable, ethical and transparent
supply chains together with our partners.
The following programs of work support our progress towards this
goal and indirectly support other pillars in our social value framework.
These programs do not cover the full value chain and are intended to focus
on the core aspects of the value chain over which BHP is able to exercise a
greater degree of control and/or influence, namely the responsible sourcing
and production of minerals and metals.
Sustainability standards strategy and development
During FY2025, we reviewed our minerals and metals sustainability standards
strategy and determined that the five performance standards that make up our
strategy remain the right focus for BHP. Our company objectives, social value
goals and expectations from our stakeholders are some of the considerations
that were included. These five performance standards are the ICMM’s Mining
Principles and Performance Expectations, The Copper Mark’s Criteria Guide,
Towards Sustainable Mining’s (TSM) Protocols and Frameworks, the Global
Industry Standard for Tailings Management (GISTM) and the LME’s Policy
for Responsible Sourcing for Listed Brands.
In FY2025, we continued to actively contribute to the development of globally
consistent sustainability performance standards working together with the
multi-stakeholder ecosystem. In particular, we continued work under the
Consolidated Mining Standard Initiative (CMSI), which has the objective
of consolidating major sustainability performance standards.
Sustainability standards implementation
During FY2025, our Chilean operations, Escondida and Spence,
were reaccredited against The Copper Mark Criteria Guide (reference
24 January 2020) to recognise their responsible production and sourcing
practices. The Copper Mark is a voluntary assurance framework for
responsible minerals production that independently assesses participants
against a comprehensive set of performance criteria across environmental,
social and governance dimensions.
The ICMM’s Mining Principles require member companies to conduct
a prioritisation process to determine which assets will be subject to
third-party validation across a three-year cycle. All of BHP’s operated
assets (excluding New South Wales Energy Coal, legacy assets and
the former OZ Minerals assets acquired by BHP on 2 May 2023) have
completed self-assessments against ICMM’s Mining Principles and
associated Performance Expectations during the last three years.
The external validation sequence has been determined in consideration
of commitments made by BHP with respect to the five standards.
During FY2025, our operated assets across Minerals Australia (except
NSWEC and Western Australia Nickel) progressed assessing against
and obtaining external validation over the TSM’s applicable Protocols
and Frameworks, which is a condition of our membership of the Minerals
Council of Australia (MCA). The MCA has set a deadline of the end
of December 2025 for public disclosure of the results of the TSM
assessments for its members and BHP is working towards this milestone.
Completion assessment and external verification against the relevant
TSM Protocols and Frameworks for all in-scope BHP operated assets
is an FY2026 milestone under our social value scorecard.
In addition, we are working on external validation of corporate-level TSM
and ICMM Performance Expectations (PE) self-assessments and some
of our operated assets will begin their three-yearly ICMM PE assessment
cycles again in FY2026.
And finally, our Jansen potash project in Canada is preparing for its first TSM
self-assessment after production commences, estimated in mid-CY2027.
For more information on BHP’s sustainability standards performance
refer to bhp.com/sustainability/value-chain-sustainability
Metals and minerals supply chain due diligence
Our Responsible Minerals Program (RMP) is our risk-based due diligence
program that applies to minerals and metals that we source from third
parties for feedstock, blending or trading purposes.
The RMP’s five-step due diligence framework was developed in alignment
with the OECD’s Due Diligence Guidance for Responsible Supply Chains
of Minerals from Conflict-Affected and High-Risk Areas. In FY2025, we
identified prioritised environmental risks to enhance the due diligence
undertaken within our RMP guided by the OECD’s Handbook on
Environmental Due Diligence in Mineral Supply Chains, which we will
seek to integrate into our processes and implement during FY2026.
For more information on how the program works and our FY2025
performance, refer to our Responsible Minerals Program
Report 2025 available at bhp.com/RMPR2025
61Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
What we assured
Ernst & Young (‘EY’, ’we’) were engaged by BHP to provide Limited Assurance over certain sustainability data and disclosures in BHP’s Annual Report,
ESG Standards and Databook, and online for the year ended 30 June 2025 in accordance with the noted Criteria, as defined in the following table:
What we assured (Limited Assurance Subject Matter) What we assured it against (Criteria)
BHP’s qualitative disclosures in Sections 8 and 9 of the Operating
and Financial Review within the BHP Annual Report 2025
– Management’s own publicly disclosed criteria
BHP’s sustainability policies and standards as disclosed in the
ICMM tab in the BHP ESG Standards and Databook 2025 at
bhp.com/ESGSD2025
– International Council on Mining and Metals (ICMM) Mining Principles and relevant
Performance Expectations and mandatory Position Statements (Subject Matter 1
of the ICMM Assurance and Validation Procedure 2023 (ICMM Procedure))
BHP’s identification and reporting of its material sustainability issues,
risks and opportunities described within Sections 8 and 9 of the BHP
Annual Report 2025 and online at bhp.com/sustainability/approach
– ICMM Procedure Subject Matter 2
– Global Reporting Initiative (GRI) Standards 2021 GRI 3: Material Topics
BHP’s implementation of systems and approaches to manage its
material sustainability risks and opportunities
– ICMM Procedure Subject Matter 3
BHP’s reported performance of its material sustainability issues, risks
and opportunities in Sections 8 and 9 of the Operating and Financial
Review within the BHP Annual Report 2025 and the BHP ESG
Standards and Databook 2025, referenced above
– ICMM Procedure Subject Matter 4
– Management’s own publicly disclosed criteria, as informed by the GRI Topic
Standards, and the Sustainability Accounting Standards Board (SASB) Mining
and Metals Standard
– BHP GHG Emissions Calculation Methodology 2025, as informed by:
– The World Resource Institute/World Business Council for Sustainable Development
Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard,
including the Greenhouse Gas Protocol: Corporate Value Chain Scope 3 Accounting
and Reporting Standard
– The Australian Government’s National Greenhouse and Energy Reporting
(Measurement) Determination 2008 for Scope 1 and Scope 2 greenhouse gas data,
as applicable
Water stewardship reporting, at an aggregated Group level, in the
BHP Annual Report 2025, the BHP ESG Standards and Databook
2025, referenced above, and supporting disclosures included online
at bhp.com/sustainability/environment/water
– ICMM guidance and minimum disclosure Standards: Water Reporting: Good practice
guide (2nd edition), 2021
In addition, we were engaged by BHP to provide Reasonable Assurance over the following information in accordance with the noted Criteria, as defined
in the following table:
What we assured (Reasonable Assurance Subject Matter) What we assured it against (Criteria)
Scope 1 and Scope 2 greenhouse gas emissions as reported in
Section 9 of the Operating and Financial Review within the BHP
Annual Report 2025 and the BHP ESG Standards and Databook
2025, referenced above
– BHP GHG Emissions Calculation Methodology 2025, as informed by:
– The World Resource Institute/World Business Council for Sustainable
Development Greenhouse Gas Protocol: A Corporate Accounting and Reporting
Standard, including the Greenhouse Gas Protocol: Scope 2 Guidance
– The Australian Government’s National Greenhouse and Energy Reporting
(Measurement) Determination 2008 for Scope 1 and Scope 2 greenhouse
gas data, as applicable
9.14 Independent Assurance Report to the Management and Directors of BHP Group Limited
Our Conclusion:
Ernst & Young (‘EY’, ‘we’) were engaged by BHP Group Limited (‘BHP’) to undertake a Limited Assurance and Reasonable Assurance engagement
as defined by International Auditing Standards over the Limited Assurance Subject Matter and Reasonable Assurance Subject Matter (each as
defined below) for the year ended 30 June 2025.
Our conclusions are as follows:
– Limited Assurance: Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that
causes us to believe the Limited Assurance Subject Matter for the year ended 30 June 2025 has not been prepared, in all material respects, in
accordance with the Criteria (as defined below).
– Reasonable Assurance: In our opinion, the Reasonable Assurance Subject Matter for the year ended 30 June 2025 is prepared, in all material
respects, in accordance with the Criteria (as defined below).
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
9 Sustainability continued
Other than as described in the preceding paragraphs, which set out the
scope of our engagement, we did not perform assurance procedures
on the remaining information included in the BHP Annual Report
2025, and accordingly, we do not express an opinion or conclusion on
this information.
The Limited Assurance Subject Matter and the Reasonable Assurance
Subject Matter may be referred to in this report, individually or collectively,
as the case requires, as the ‘Subject Matter’.
Key responsibilities
BHP’s responsibility
BHP’s management is responsible for selecting the Criteria, and ensuring
the Subject Matter is prepared, in all material respects, in accordance
with that Criteria. This responsibility includes establishing and maintaining
internal controls, maintaining adequate records and making estimates that
are relevant to the preparation of the Subject Matter, such that it is free
from material misstatement, whether due to fraud or error.
EY’s responsibility and independence
For the Limited Assurance engagement, our responsibility is to express
a conclusion on the Limited Assurance Subject Matter based on the
evidence we have obtained. For the Reasonable Assurance engagement,
our responsibility is to express an opinion conclusion on the Reasonable
Assurance Subject Matter based on the evidence we have obtained.
62 BHP Annual Report 2025
evidence, incident reports, metre calibration records, and metre
data; re-performing calculations to check accuracy; and reviewing
explanations relating to the sustainability performance data
and statements
– Reviewing other information within the BHP Annual Report 2025
for consistency and alignment to other quantitative and qualitative
information within the Subject Matter
The additional Reasonable Assurance procedures relating to the
Reasonable Assurance Subject Matter we performed were based
on professional judgement and included, but were not limited to:
– On a sample basis, checked the methodologies used by BHP to
consider consistency with the Criteria, considered completeness of
sources obtained from our site procedures, and checked underlying
data to source information on a sample basis to assess completeness
and accuracy of performance data, which included reviewing invoices,
calculation data and third-party records, meter calibration records and
meter data.
We believe that the evidence obtained is sufficient and appropriate to
provide a basis for our Limited Assurance conclusion and Reasonable
Assurance opinion.
Inherent limitations
While we considered the effectiveness of management’s internal controls
when determining the nature and extent of our procedures, our assurance
engagement was not designed to provide assurance on internal controls.
The greenhouse gas emissions quantification process is subject to
scientific uncertainty, which arises because of incomplete scientific
knowledge about the measurement of greenhouse gases. Additionally,
greenhouse gas procedures are subject to estimation and measurement
uncertainty resulting from the measurement and calculation processes
used to quantify greenhouse gas emissions within the bounds of existing
scientific knowledge.
Additional inherent limitations – Limited Assurance scope
Procedures performed in a Limited Assurance engagement vary in nature
and timing from, and are less in extent than for, a Reasonable Assurance
engagement. Consequently, the level of assurance obtained in a Limited
Assurance engagement is substantially lower than the assurance that
would have been obtained had a Reasonable Assurance engagement
been performed. Our procedures were designed to obtain a Limited
Assurance level on which to base our conclusion and do not provide all the
evidence that would be required to provide a Reasonable Assurance level.
Our procedures did not include testing controls or performing procedures
relating to checking aggregation or calculation of data within IT systems.
Additional inherent limitations – Reasonable
Assurance scope
While our procedures performed for our Reasonable Assurance
engagement are of a higher level of assurance, due to the use of
sampling techniques, it is not a guarantee that it will always detect
material misstatements.
Other matters
We have not performed assurance procedures in respect of any
information relating to prior reporting periods, including those presented in
the Limited Assurance Subject Matter and Reasonable Assurance Subject
Matter. Our report does not extend to any disclosures or assertions made
by BHP relating to future performance plans and/or strategies disclosed
in the BHP Annual Report 2025, the BHP ESG Standards and Databook
2025, and supporting disclosures online.
Use of our Assurance Report
We disclaim any assumption of responsibility for any reliance on this
assurance report to any persons other than management and the directors
of BHP, or for any purpose other than that for which it was prepared.
Our assurance procedures were performed over certain web-based
information that was available via web links as of the date of this assurance
report. We provide no assurance over changes to the content of this
web-based information after the date of this assurance report.
Ernst & Young Mathew Nelson
Melbourne, Australia Partner
19 August 2025
We have complied with the independence and relevant ethical
requirements, which are founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and
professional behaviour.
EY applies Auditing Standard ASQM 1 Quality Management for Firms
that Perform Audits or Reviews of Financial Reports and Other Financial
Information or Other Assurance or Related Services Engagements, which
requires the firm to design, implement and operate a system of quality
management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and
regulatory requirements.
Our approach to conducting the assurance procedures
We conducted our assurance procedures in accordance with the
International Auditing and Assurance Standards Board’s International
Standard on Assurance Engagements Other Than Audits or Reviews
of Historical Financial Information (‘ISAE 3000’) and the Standard for
Assurance on Greenhouse Gas Statements (‘ISAE 3410’) and the terms
of reference for this engagement as agreed with BHP on 23 January 2025.
For the Limited Assurance engagement, these standards require that we
plan and perform our engagement to express a conclusion on whether
anything has come to our attention that causes us to believe that the
Limited Assurance Subject Matter is not prepared, in all material respects,
in accordance with the Criteria, and to issue a report.
For the Reasonable Assurance engagement, these standards require that
we plan and perform our engagement to obtain Reasonable Assurance
about whether, in all material respects, the Reasonable Assurance Subject
Matter is presented in accordance with the Criteria, and to issue a report.
For both a Limited Assurance engagement and a Reasonable Assurance
engagement, the nature, timing and extent of the assurance procedures
selected depend on our professional judgement, including an assessment
of the risk of material misstatement, whether due to fraud or error.
Description of assurance procedures performed
A Limited Assurance engagement consists of making enquiries, primarily
of persons responsible for preparing the Limited Assurance Subject
Matter and related information, and applying analytical and other
appropriate procedures.
The Limited Assurance procedures we performed were based on our
professional judgement and included, but were not limited to:
– Evaluating the suitability of the Criteria and that the Criteria have been
applied appropriately to the Subject Matter
– Reviewing BHP policies and management standards to determine
alignment with the ICMM’s 10 Sustainable Development principles
and position statements
– Interviewing select corporate and site personnel to understand the
reporting process at group, business, asset, and site level, including
management’s processes to identify BHP’s material issues
– Checking whether material topics and performance issues relevant to
the Subject Matter are adequately presented within the BHP Annual
Report 2025, including obtaining an understanding as to how BHP’s
identified material issues, risks and opportunities are reflected within
the qualitative disclosures
– Reviewing BHP media coverage relating to sustainability-related topics
to identify material events that may require disclosure
– Evaluating whether the information disclosed in the Limited Assurance
Subject Matter is consistent with our understanding of sustainability
management and performance at BHP
– Conducting virtual and in-person site procedures at BHP locations on a
sample basis, based on our professional judgement (which we currently
implement on a rotational basis across reporting years), to evidence
site level data collection and reporting to Group as well as to identify
existence and confirm completeness of the sustainability performance
data and statements included within the Subject Matter
– Undertaking analytical procedures of the quantitative disclosures
in the Subject Matter to determine the reasonableness of the
information presented
– On a sample basis for qualitative statements within the Subject
Matter, based on our professional judgement and our determination of
materiality, reviewing evidence within the business to support the stated
information or claims
– For quantitative information within the Subject Matter, based on our
professional judgement and our determination of materiality, reviewing
underlying data to source information to assess completeness of
the information within the Subject Matter, including procedures
such as process conversations, review of invoices and third-party
63Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Fundão dam failure
As a result of the Fundão dam failure in November 2015, a significant
volume of tailings (39.2 million cubic metres) resulting from the iron ore
beneficiation process was released. Tragically, 19 people died as a result
of the failure. The communities of Bento Rodrigues, Paracatu de Baixo
and Gesteirac were flooded and other communities and the environment
downstream in the Doce River basin were also affected.
Samarco’s operations were suspended after the dam failure and
resumed in 2020.
For information on Samarco’s operations refer to OFR 6.2
Our response and support for the reparation
Following the dam failure, BHP Brasil
1
has remained fully committed
to supporting the extensive remediation and compensation efforts that
continue in Brazil.
In March 2016, a Framework Agreement entered into between Samarco,
Vale, BHP Brasil (the Companies) and relevant Brazilian authorities established
the Renova Foundation, a not-for-profit, private foundation responsible for
implementing 42 remediation and compensatory programs. BHP Brasil,
along with Samarco and Vale, provided support and funding to the Renova
Foundation, including through representation in its governance structures.
On 25 October 2024, the Companies entered into an agreement with the
Federal Government of Brazil, State of Minas Gerais, State of Espírito
Santo, public prosecutors and public defenders (Public Authorities) that
delivers full and final settlement of the Framework Agreement obligations,
the R$155 billion Federal Public Prosecution Office civil claim and other
claims by the Public Authorities relating to Samarco’s Fundão dam failure
(Settlement Agreement).
The Settlement Agreement was announced as having a financial value
of R$170 billion (approximately US$31.7 billion) on a 100 per cent basis,
including amounts already spent plus future payments and obligations.
For more information on the Settlement Agreement
refer to Additional information 8 ‘Legal proceedings’
Reparation
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 per cent each.
The Settlement Agreement provides for the termination of the Renova
Foundation within a 12-month transition period, following the ratification of
the Settlement Agreement in November 2024, during which the remaining
actions are being transferred to Samarco and the relevant Public Authorities.
Compensation and financial assistance
Compensation and financial assistance of approximately R$23.3 billion
(US$4.6 billion, 100 per cent basis)
2
has been paid to support approximately
466,000 people affected by the dam failure, as of 30 June 2025. The
indemnification programs that remained open under Renova Foundation
and the new programs established by the Settlement Agreement are
being executed by Samarco, pursuant to the criteria set in the Settlement
Agreement. These programs include:
– Definitive Indemnification Program (PID): A program created by
the Settlement Agreement, with a fixed indemnification amount
per eligible claimant (R$35,000 plus 5 per cent legal fees) and simple
eligibility criteria. As of 30 June 2025, the program has resulted in the
compensation of approximately 90,000 claims and the payment of
R$3.3 billion (approximately US$590 million).
2
– Farmers and fishers: A program created by the Settlement Agreement,
with a fixed indemnification amount (R$95,000) for eligible small farmers
and professional fishers listed by the Federal Government. Since its
implementation, the program has not yet resulted in the compensation
of claims, as the 10,000 claims made are still being processed.
– Novel: Created by a judicial decision, this program was opened
in 2020 and closed for new claims in September 2023, aiming to
provide compensation to informal workers who had difficulty proving
the damages they suffered. Currently, the program is processing
claims that were still pending at the time of the Settlement Agreement.
As of 30 June 2025, approximately 115,000 people had been paid.
– Mediated Indemnification Program/Emergency Financial Aid (PIM/
AFE): One of the first programs created for indemnification following
the dam failure. This program aims to compensate formal workers
and, therefore, had high eligibility criteria – new requests were made
between 4 February and 5 April 2025, as per the Settlement Agreement.
Following the Settlement Agreement, as of 30 June 2025, the program
resulted in 4,000 claims, which are still being processed.
For updates on reparation progress refer to bhp.com/what-we-do/
global-locations/brazil/samarco-reparations
Resettlement
A key reparation priority is the resettlement of the communities of Bento
Rodrigues, Paracatu de Baixo and Gesteira. For Bento Rodrigues and
Paracatu de Baixo priority efforts included construction of houses and
private property, such as small businesses and churches, as well as
infrastructure and public services, including roads, power, water and sewer
networks, health and services centres and schools. At Gesteira, pursuant
to an agreement finalised in May 2023 and ratified by the Court, families
and the Public Authorities have opted to receive compensation instead of
building a new community.
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) cash payment. The implementation of the Settlement
Agreement follows a structured, deadline-driven process. An independent
technical audit will monitor compliance and quality for at least six months
after each house is delivered.
The resettlements have involved ongoing engagement and consultation
with a large number of stakeholders, including the affected community
members, their technical advisers, state prosecutors, municipal leaders,
regulators and other interested parties.
The new towns were designed on land chosen by the communities to
be as close as possible to the previous layout, addressing the wishes
and needs of the families and communities while also meeting permitting
requirements. Each family received access to an architect to design their
house within size parameters, which was then finalised and built.
Bento Rodrigues and Paracatu de Baixo are increasingly consolidating
as functional communities. This evolution is marked not only by the
presence of essential infrastructure, such as water treatment systems,
a health centre, churches and a variety of commercial establishments,
including restaurants, bars and retail stores but also by a noticeable
shift in daily dynamics with the increased presence of local residents,
reinforcing the sense of community life and normalcy.
As at 30 June 2025, approximately 98 per cent 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.
More than 370 families are now living in their new homes in Bento
Rodrigues and Paracatu de Baixo, as well as other locations.³
Public buildings in the new communities have been delivered to the
Municipality of Mariana and are now being operated and maintained
by the municipality.
For updates on reparation progress refer to bhp.com/what-we-do/
global-locations/brazil/samarco-reparations
Other obligations
A wide range of socio-economic activities continue with the Settlement
Agreement. These initiatives cover health and infrastructure projects
in the Doce River basin, promotion of economic development in the
impacted communities and sanitation to further improve the water quality
in the Doce River.
The Settlement Agreement provides for R$11 billion for universal
sanitation, R$12 billion for health programs, R$6.5 billion for economic
recovery programs, R$4.3 billion for improvements to road and
infrastructure, R$2 billion for a flood response fund, R$2.4 billion to
foster fishing and biodiversity, R$1 billion for financial, psychological and
health support to women, R$5.7 billion for a social participation fund for
investment in education, culture, sports and food security, and R$3.8 billion
for an income assistance program to support certain fishers and small
farmers in the region.
10 Samarco
1. BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale) are 50:50 shareholders in Samarco Mineração S.A. (Samarco), the independent operator of Samarco.
2. US$ amount is calculated based on actual transactional (historical) exchange rates related to Renova Foundation/Samarco funding.
3. For those families who chose not to join the resettlement with their previous community and instead resettled elsewhere.
64 BHP Annual Report 2025
Eligible Indigenous peoples and Traditional Communities will also receive
a R$8 billion provision with the allocation of funds to be determined by
Indigenous and Traditional Communities following a consultation process
to be conducted by the Federal Government.
Environmental remediation
Since December 2019, the impacted riverbanks and floodplains have been
vegetated, river margins stabilised and water quality has returned to the levels
observed before the dam failure. Samarco continues implementing long-term
monitoring and compensatory initiatives. 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.
This is supported by approximately 1.5 million pieces of data generated
annually along the Doce River, which is the largest watercourse monitoring
system in Brazil. The Settlement Agreement requires Samarco to continue
environmental monitoring of water, river sediments, ecological indicators
and air quality. The main monitoring activities will continue for 15 years.
Additionally, according to information provided by municipalities and water
supply companies, since December 2015, most of the population in the
Doce River basin has been using and consuming the river water following
conventional treatment.
The Settlement Agreement also provides R$11 billion in funding for the
universalisation of basic water sanitation for municipalities in the Doce
River basin, with the objective of reducing the amount of untreated
sewage that is discharged into the river by communities.
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, approximately 40,500 hectares and 3,500 springs are
already undergoing restoration, continuing the efforts initiated by the Renova
Foundation. All actions are expected to be completed by 2031.
The Settlement Agreement outlines the completion of 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.
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 Brazilian
Public Authorities will issue fishing regulations aimed at protecting both
fishing activities and the environment. The Settlement Agreement also
required that the regulation that restricted fishing for native species in
the Doce River, originally imposed due to the dam failure, would be lifted
within six months of the Court’s ratification of the Settlement Agreement.
In April 2025, the State of Minas Gerais issued a new regulation maintaining
the same restrictions but no longer associating them with the dam failure.
Further regulatory updates are expected following additional studies
by the State.
For updates on reparation progress refer to bhp.com/what-we-do/
global-locations/brazil/samarco-reparations
Legal proceedings
BHP Group Limited, BHP Group (UK) Ltd (formerly BHP Group Plc) and BHP
Brasil are involved in legal proceedings relating to the Fundão dam failure.
For information on the significant legal proceedings and settlement
negotiation process involving BHP refer to Additional information 8
65
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
11 Risk factors
Our risk factors are described below and may occur as a result of our activities globally, including in connection with our operated and non-operated
assets, third parties engaged by BHP or through our value chain. 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, the communities where we or our third-party partners and providers operate, 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 financial condition and liquidity, including due to decreased profitability or increased operating costs, capital spend, remediation costs or contingent
liabilities. BHP may also be exposed to risks that we currently believe to be immaterial that may materially affect our business if they occur.
Each risk factor may present opportunities as well as threats. We take certain risks for strategic reward in the pursuit of our strategy and purpose. Some of
the potential threats and opportunities associated with each of our risk factors are described below. Management’s approach to manage these risks is also
described at a high level. However, these actions are not exhaustive and many Group-wide controls (such as Our Code, Risk Framework, mandatory minimum
performance requirements for risk management, health, safety and other matters, and our Contractor Management Framework) help to support effective and
efficient management of all risks in line with our risk appetite. For our non-operated joint ventures, we have a dedicated non-operated joint venture team and we
manage risks to BHP’s investments by seeking to enhance governance processes and influencing operator companies to adopt international standards and best
practices in line with respective joint venture agreements.
Risk factor: Operational events
Risks associated with operational events in connection with
our activities globally, resulting in significant adverse impacts
on our people, communities, the environment or our business.
Why is this important to BHP?
We engage in activities that have previously caused and have the potential
to further cause harm to our people and assets, communities, other
stakeholders and/or the environment, including serious injuries, illness and
fatalities, loss of infrastructure, amenities and livelihood, and damage to sites
of cultural significance. An operational event at our operated or non-operated
assets or through our value chain could also cause damage or disruptions
to our assets and operations, impact our financial performance, result in
litigation or class actions and cause long-term damage to our licence to
operate and reputation. Potential physical climate-related impacts could
increase the likelihood and/or severity of risks associated with operational
events. Impacts of operational events may also be amplified if one event
triggers another (for example, a geotechnical instability event that causes
a failure in a nearby tailings storage facility), or if we fail to respond to any
events in a way that is consistent with our corporate values and partner
and stakeholder expectations.
Examples of potential threats
– Air, land (road and rail) and marine transportation events (such as aircraft
crashes or vessel collisions, groundings, spillages or hydrocarbon release)
that occur while transporting people, supplies or products, including to or
from exploration, operation or customer locations. These locations may
be in or require travel through areas of cultural significance or remote and
environmentally sensitive areas, including in Australia, South America,
Asia, the United States, Canada and Sweden.
– Failure of a water or tailings storage facility, such as the tragic failure
of the Fundão dam at Samarco in 2015 or a failure at other facilities
in Australia, Chile, Peru, the United States, Canada or Brazil.
– Unplanned fire events or explosions (on the surface or underground).
– Geotechnical instability events (such as failure of underground
excavations, which may be subject to greater risk than surface mines,
unexpected large wall instabilities in our open-pit mines, or potential
interaction between mining activities and community infrastructure
or natural systems), including at mines in Australia, Chile, Peru,
the United States, Canada or Brazil.
– Critical infrastructure, equipment or hazardous materials containment
failures, other occupational or process safety events or workplace exposures.
– Operational events experienced by BHP or third parties that result in
unavailability of shared critical infrastructure (such as railway lines or
ports) or transportation routes (such as the Port Hedland channel in
Western Australia).
– An operational event that may adversely affect our people and assets,
communities, other stakeholders and/or the environment, including serious
injuries, illness and fatalities, loss of infrastructure and damage to sites of
cultural or environmental significance.
– Our operations, workforce, communities, supply chains, customers
and third-party partners and providers may be increasingly exposed
to changes in the frequency, intensity and/or duration of intense storms,
drought, flooding, landslides, wildfire and other extreme weather
or weather-related events and patterns (such as extreme heat).
Potential opportunities
Our community, environmental and employee commitments may enhance
resilience, stakeholder trust, talent attraction and access to capital, while
collaboration on industry standards may support our ability to manage
operational risks and identify internal improvement opportunities.
Management’s approach
We continue to focus on improving our management of safety and operational
risks, including through the planning, designing, construction, operation,
maintenance and monitoring of mines, facilities and infrastructure.
FY2025 insights
Our exposure to risks associated with operational events remained
broadly stable in FY2025. However, our exposure to risks associated
with operational events may increase in coming years as we
continue to expand our operations, including at our Jansen potash
project where our first production target date for Stage 1 is currently
estimated to revert to the original schedule of mid-CY2027 (an
update on timing is expected in the second half of FY2026).
For more information refer to
OFR 8 Safety
OFR 9.5 People
OFR 9.6 Health
OFR 9.8 Climate change
OFR 9.9 Nature and environmental
performance
OFR 9.11 Community
OFR 9.12 Indigenous peoples
bhp.com/sustainability
Risk factor: Accessing key markets
Risks associated with market concentration and our ability
to sell and deliver products into existing and future key markets,
impacting our economic efficiency.
Why is this important to BHP?
We rely on the sale and delivery of the commodities we produce to
customers around the world. Changes to laws, international trade
arrangements, contractual terms or other requirements and/or geopolitical
developments could result in physical, logistical or other disruptions
to our operations in or the sale or delivery of our commodities to key
markets. These disruptions could affect sales volumes or prices obtained
for our products, adversely impacting our financial performance, results
of operations and growth prospects. We may face additional challenges
when seeking to access new markets, including in relation to operational
and regulatory matters.
66 BHP Annual Report 2025
Examples of potential threats
– Government actions, including economic sanctions, tariffs or other trade
restrictions, imposed by or on countries where we operate or into which
we sell or deliver our products may slow economic growth and lead to a
fragmented trading environment, which could prevent us from selling our
products, make it more difficult for us to sell our products in key markets
and adversely impact the price and volumes obtained of products sold.
– Physical disruptions to the delivery of our products to customers in
key markets, including due to the disruption of shipping routes, closure
or blockage of ports or land logistics (road or rail), other supply chain
disruptions (including those resulting from geopolitical actions and trade
policy) or armed conflict. In some cases, physical disruptions may be
driven or intensified by weather and climate variability, including as
potentially exacerbated or affected by climate change. Our operations
are located in remote and environmentally sensitive areas, which may
be particularly exposed to climate-related disruptions.
– Legal or regulatory changes (such as new or increased royalties
or taxes; government-mandated price caps; port, export or import
restrictions or customs requirements; shipping/maritime regulatory
changes; restrictions on movements or imposition of quarantines;
or changing environmental restrictions or regulations, including
measures with respect to carbon-intensive industries or imports) and
commercial changes (such as changes to the standards, preferences
and requirements of customers) may adversely impact our ability to sell,
deliver or realise full market value for our products.
– Failure to maintain strong relationships with customers or changes to
customer demands for our products may reduce our market share or
adversely impact our financial performance.
– Increasing geopolitical tensions and volatility (including ongoing
conflicts and the potential impact of tariffs and other trade restrictions)
may adversely affect our strategic and business planning decisions
and/or our ability to access key markets (including the time it takes us
to manage such access), particularly if we fail to detect or anticipate
deviations in the geopolitical environment in a timely manner.
Potential opportunities
By monitoring macroeconomic, societal, geopolitical and policy
developments and trends, we may be able to identify opportunities for new
or existing products and/or to enter into new markets or expand presence
in some markets, develop strategic partnerships and execute our strategy
in ways that enhance value and provide a competitive advantage.
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.
FY2025 insights
Exposure to risks associated with access to key markets increased
in FY2025 due to increasing geopolitical volatility, tariffs and global
trade restrictions impacting global supply chains. Although we
have limited influence over changes in our external environment,
we continue to analyse the impact of global armed conflict, political
tensions, resource and economic nationalism, social instability, and
environmental deterioration.
Risk factor: Optimising growth
and portfolio returns
Risks associated with our ability to position our asset portfolio
to generate returns and value for shareholders, including
through acquisitions, mergers and divestments.
Why is this important to BHP?
We make decisions and take actions in pursuit of our strategy, targeting
a portfolio of high-quality assets in attractive commodities and growth
options in future-facing commodities. We periodically review and adjust
our strategy and make changes to our portfolio. Active portfolio changes
include the formation of our new non-operated joint venture, Vicuña Corp,
and the divestment of the former OZ Minerals’ CentroGold project in Brazil.
Other portfolio changes may also include maturing and developing organic
growth options and supporting innovative early-stage mineral exploration
companies (including through our accelerator program, BHP Xplor).
A strategy that does not support BHP’s objectives and/or a failure to execute
our strategy, or other circumstances, may lead to a loss of value that impacts
our ability to deliver returns to investors and fund our investment and growth
opportunities. Market volatility or failure to optimise our asset portfolio for
structural movements in commodity prices (including those arising from
climate-related risks or geopolitical risks, such as the impact of tariffs) could
adversely affect the results of our operations, financial performance and
returns to investors, including by reducing our cash flow, ability to access
capital or pay dividends or resulting in asset impairments.
Examples of potential threats
– Commodity prices have historically been and may continue to be subject
to significant volatility, including due to global economic and geopolitical
factors (including the adoption and expansion of trade restrictions, such
as tariffs and other controls on imports and exports), industrial activity,
commodity supply (including the development of new resources and
supply chain disruptions) and demand (including inventory levels and
circular economy), technological change, product substitution, interest rate
movements and exchange rate fluctuations. Recent and potential changes
in trade policy, particularly in the United States and China, may elevate the
challenges in predicting long-term economic trends. Our usual policy and
practice is to sell our products at prevailing market prices and, as such,
movements in commodity prices may affect our financial performance.
Long-term price volatility, sustained low prices or increases in costs may
adversely impact our financial performance as we do not generally have
the ability to offset costs through price increases.
– Failure to attract and retain capable talent may lead to poor strategy design
or execution, erode our capabilities and organisational culture, and hinder
our ability to position our asset portfolio effectively, impacting our business
and competitiveness for talent.
– Failure to optimise our portfolio through effective and efficient acquisitions,
exploration, large project delivery, mergers, divestments or expansion
of existing or acquired assets (including due to sub-optimal capital
prioritisation) may adversely impact our performance and/or returns
to investors.
– Failure to identify potential changes in commodity attractiveness and
missed entry or commodity exit opportunities may result in decreased
return on capital spend, overpayment to acquire or invest in new assets
or projects, stranded assets or reduced divestment proceeds.
– Failure to achieve expected commercial objectives from assets or
investments, such as cost savings, increased revenues or improved
operational performance (including as a result of inaccurate commodity
price assumptions or resources and reserves estimates), may result
in returns that are lower than anticipated and loss of value. This could
be exacerbated by impacts from factors such as climate-related risks,
supply chain disruptions (for example, disruption in the energy sector or
as a result of trade restrictions impacting our end-user markets), labour
shortages, inflationary pressures and unfavourable exchange rates,
creating operational headwinds and challenging on-time and on-budget
project delivery.
– Renegotiation or nullification of permits, inability to secure new permits
or approvals, increased royalties, such as the Queensland Government’s
increase in coal royalty tax in June 2022, fiscal or monetary policy instability
or legislative changes may increase our costs or adversely impact our ability
to achieve expected commercial objectives from assets or investments,
access reserves, develop, maintain or operate our assets, enter new
jurisdictions, or otherwise optimise our portfolio. For example, in Australia,
recent significant industrial relations legislative reforms (including ‘Same
Job, Same Pay’ and Secure Jobs Legislation) have introduced changes
to the enterprise bargaining framework and are having an impact on BHP,
including by increasing labour costs in Australia.
– Partnering with companies may also damage our reputation and lead to
increased potential for litigation if those companies or associated activities
are misaligned with Our Values, standards or stakeholder expectations,
particularly in circumstances in which we do not operate the asset or have
a controlling interest in the venture.
Potential opportunities
Our current portfolio of quality assets in attractive commodities positions
us well to capitalise on potential opportunities. The acquisition of new
resources or the acceleration of organic growth options may strengthen
and diversify our portfolio, while our ability to predict economic trends may
enable us to exit from declining commodities and allocate our capital to
focus on higher-returning opportunities.
67Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Management’s approach
We continue to develop strategies, processes and frameworks to grow and
protect 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.
FY2025 insights
Our exposure to risks associated with optimising growth
and portfolio returns remained broadly stable in FY2025.
Exposure is influenced by external factors, including increasing
geopolitical tensions, ESG-related expectations and commodity
attractiveness. The imposition of tariffs across various jurisdictions
in CY2025 and other developments in international trade may also
adversely impact our business. As a supplier of iron ore, copper,
coal and other commodities to end users globally, particularly
in China, we are subject to additional risk from the imposition of
duties, tariffs, import and export controls and other trade barriers
impacting our products and the products our customers produce.
The overall impact of these developments is difficult to predict, but
could adversely impact our costs, our investments, the demand for
and price of our products and the products of our customers.
For more information refer to
OFR 4 Positioning for growth
OFR 12 Performance by commodity
Risk factor: Ethical misconduct
Risks associated with actual or alleged deviation from
societal or business expectations of ethical behaviour
(including breaches of laws or regulations) and wider
or cumulative organisational cultural failings, resulting
in significant reputational, legal and/or regulatory impacts.
Why is this important to BHP?
Actual or alleged conduct of BHP or our people or third-party partners
and providers that deviates from the standard of ethical behaviour required
or expected of us could result in reputational damage or a breach of law
or regulations. Such conduct includes fraud, corruption, anti-competitive
behaviour, money laundering, breaching trade or financial sanctions,
market manipulation, privacy breaches, breaches of various state sensitive
information laws, ethical misconduct, failure to comply with regulatory
requirements and wider organisational cultural failings. A failure to act ethically
or legally may result in negative publicity, investigations, public inquiries,
regulatory enforcement action, litigation or other civil or criminal proceedings,
other forms of compensation or remediation, or increased regulation. It could
also threaten the validity of our tenements or permits, or adversely impact
our reputation, results of operations, financial performance or share price.
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 societal,
partner and stakeholder expectations. Our workplace culture may also be
eroded, adversely affecting our ability to attract and retain talent. 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 potentially conflicting obligations under
different national laws. For example, our Copper growth strategy in higher-risk
jurisdictions and partnerships with entities with less mature compliance
programs could heighten or introduce new exposure to these risks.
Examples of potential threats
– Failing to prevent breaches of international standards, laws, regulations
or other legal, regulatory, ethical, environmental, governance or
compliance obligations, such as external misstatements, inaccurate
financial or operational reporting, data breaches or a breach of our
continuous disclosure obligations.
– Corruption (for example, in connection with the acquisition of
early-stage options in a country with weaker governance standards),
market misconduct or anti-competitive behaviour, including in relation
to our joint venture operations.
– Failing to comply with trade or financial sanctions (which are complex
and subject to rapid change and may potentially result in conflicting
obligations), health, safety and environmental laws and regulations,
native title and other land rights or tax or royalty obligations.
– Failing to protect our people from harm (including to psychological
and physical health) due to misconduct that takes place in connection
with their work, such as discrimination or sexual harassment, or other
psychosocial hazards.
– Failing to uphold BHP’s values or address actual or alleged misconduct
may adversely impact workplace culture and may expose BHP to regulatory
action or litigation, adversely impacting our reputation and ability to
attract and retain talent.
Potential opportunities
Our capability to manage ethical misconduct risks in line with societal,
partner and stakeholder expectations may distinguish BHP from
competitors and enhance our ability to raise capital, attract and retain
talent, engage with governments and communities in new jurisdictions,
obtain permits, partner with external organisations or suppliers, or market
our products to customers.
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 for governance and compliance to support an
appropriate culture and prioritise respectful behaviours at BHP.
FY2025 insights
Our exposure to ethical misconduct risks increased in FY2025 due
to greater regulator and stakeholder expectations, and expansion
of our interests in higher-risk jurisdictions with weaker government
controls and higher corruption risks. Geopolitical tensions also
heightened corruption risks, trade sanctions and market conduct
enforcement in commodities markets, impacting our exposure
through complex and evolving legal frameworks.
For more information refer to
Our Charter and Our Code
OFR 9.5 People
OFR 9.7 Ethics and business conduct
OFR 9.11 Community
OFR 9.12 Indigenous peoples
Corporate Governance Statement
Risk factor: Significant social
or environmental impacts
Risks associated with significant impacts of our operations on
and contributions to communities and environments throughout
the lifecycle of our assets and across our value chain.
Why is this important to BHP?
The long-term viability of our business is closely connected to the wellbeing
of the communities and environments where we have a presence and our
business is subject to increasing, complex and changing regulatory and
stakeholder expectations. At any stage of the asset lifecycle, our activities
and operations may have or be perceived to have significant adverse
impacts on communities and environments. In these circumstances, we
may fail to meet the evolving expectations of our partners and stakeholders
(including investors, governments, employees, suppliers, customers and
Indigenous peoples and other community members) whose support is
needed to realise our strategy and purpose. This could lead to loss of
partner or stakeholder support or regulatory approvals, increased taxes
and regulation, enforcement action, litigation (including class actions), or
otherwise impact our licence to operate and adversely affect our reputation,
ability to attract and retain talent, ability to access capital, operational
continuity and financial performance.
11 Risk factors continued
68 BHP Annual Report 2025
Examples of potential threats
– Engaging in or being associated with activities (including through
non-operated joint ventures and our value chain) that have or are
perceived to have individual or cumulative adverse impacts on nature
(including biodiversity, land, waters and air), climate change, supply
chain or responsible sourcing requirements, human rights or Indigenous
peoples’ rights or cultural heritage.
– Failing to meet evolving partner or stakeholder expectations in
connection with our alignment with global frameworks and societal
goals, our strategic decisions, legal and regulatory obligations,
acceptability of mining activities, relationships with Indigenous peoples,
community wellbeing and the way we invest in communities or our
approach to nature (including biodiversity, land, waters and air), climate
change, supply chain or responsible sourcing requirements, human
rights, Indigenous peoples’ rights or cultural heritage priorities.
– Political, regulatory and judicial developments (such as legislation to
enact policy positions on climate change, nature-related risk or human
rights) could increase uncertainty in relation to our operating context,
and/or require us to adjust our business plans or strategy. For example,
changes to regulations may require us to modify mine plans, limit our
access to reserves and resources, alter the timing or increase costs
associated with exploration and development of and production from,
or closure and rehabilitation of, our assets, increase sourcing costs or
expose BHP to unanticipated environmental or other legacy liabilities.
– Failing to adequately identify or to appropriately manage physical
climate-related risks and/or nature-related risks. For example, loss
of important biodiversity and/or ecosystems as a result of operational
activities (e.g. unauthorised clearing of high value vegetation) could
result in land access restrictions, increase of fines or penalties or limit
our access to new opportunities.
Potential opportunities
Strong social performance and active stakeholder engagement could
generate competitive advantages in the jurisdictions in which we operate,
while the responsible stewardship of natural resources may enhance the
resilience of our industry.
Management’s approach
We have adopted and seek to apply policies and procedures that
include targets, goals, commitments and/or describe our approach
to these matters, which aim to strengthen our social, human rights
and environmental performance and contribute to environmental
and community resilience.
FY2025 insights
In FY2025, BHP’s exposure to risks with significant social or
environmental impacts remained broadly stable. We continue to
monitor and seek to better understand the intersecting social and
environmental risk landscape with intersections between climate
change, nature, Indigenous peoples and human rights continuing
to be a focus for stakeholders and civil society.
For more information refer to
OFR 9.4 2030 goals and social value scorecard
OFR 9.5 People
OFR 9.8 Climate change
OFR 9.9 Nature and environmental performance
OFR 9.11 Community
OFR 9.12 Indigenous peoples
OFR 10 Samarco
bhp.com/sustainability
Risk factor: Adopting technologies
and maintaining digital security
Risks associated with adopting and implementing new
technologies, and maintaining the effectiveness of our
existing digital landscape (including cyber defences)
across our value chain.
Why is this important to BHP?
Our business and operational processes are increasingly dependent
on the effective application and adoption of technology, which we use
as a lever to deliver on our current and future operational, financial and
social objectives. This exposes BHP to risks originating from adopting
or implementing new technologies, or failing to take appropriate action
to position BHP for the digital future, which may impact the capabilities
we require, the effectiveness and efficiency of our operations and our
ability to compete effectively. New technology adopted in our business
may not perform as anticipated and may result in unintended impacts
on our operations. We may also fail to maintain the effectiveness of
our existing and future digital landscape, including cyber defences,
exposing us to technology availability, reliability and cybersecurity risks.
These could lead to operational events, commercial disruption (such as
an inability to process or ship our products), corruption or loss of system
data, misappropriation or loss of funds, unintended loss or disclosure
of commercial or personal information, enforcement action or litigation,
which could also impact the environment and partners, suppliers and
stakeholders across our value chain. Additionally, an inability to adequately
maintain existing technology or effectively implement critical new technology,
including artificial intelligence (AI), or any sustained disruption to our existing
technology may adversely affect our licence to operate, reputation, results
of operations and financial performance.
Examples of potential threats
– Cyber incidents on our information or operational technology systems,
including on third-party partners and providers (such as our cloud service
providers), may result in a failure of business-critical technology systems
at one or more of our assets, which may reduce operational productivity,
result in environmental damage, fines, penalties, litigation, regulatory
or governmental investigations, workforce disruption, prolonged
negative media attention and/or adversely impact safety and financial
performance. We have experienced cybersecurity threats in the
past and may experience them in the future. As our dependence on
information systems (including those of our third-party partners and
providers) grows, we may become more vulnerable to an increasing
threat of continually evolving cybersecurity risks.
– Failure to invest in appropriate technologies or to keep pace with
advancements in technology that support the pursuit of our objectives
may adversely impact the effectiveness or efficiency of our business
and erode our competitive advantage. For example, a failure to implement
appropriate technologies that support our assets to produce higher-grade
commodities or less waste from existing resources (such as ongoing
initiatives to incorporate new technologies and data analytics to leaching
processes) could limit our ability to sell our commodities or reduce costs.
– Failure to identify, access and secure necessary infrastructure and
key inputs (including electricity, internet bandwidth, data, software,
licences or other rights in intellectual property, hardware and talent)
to support new technology innovations and advanced technologies
may adversely affect our ability to adopt, operate or retain access to
those technologies. This includes AI and machine learning, process
automation, robotics, data analytics, cloud computing, smart devices
and remote working solutions. For example, adopting new technology
to reduce GHG emissions using alternative energy sources may
require new infrastructure, while effective implementation of new digital
technologies (such as machine learning) may be heavily dependent
on access to quality data.
– Adopting new technologies like data science, AI and robotics requires
new capabilities across our organisation. This may require re-skilling
of our existing workforce and could replace some tasks and result in
workforce changes. A failure to manage these changes effectively
could lead to adverse impacts, including eroding our workplace culture
and reputation, political and societal dissatisfaction, industrial
action or operational disruptions, thereby posing a threat to our
business continuity.
69Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
– The continued increase in the use of Al and machine learning
may increase our exposure to emerging cybersecurity risks and
additional risks, including those relating to the protection of data (such as
increased exposure of confidential or otherwise protected information
to unauthorised recipients), which could result in liability under or
termination of our contracts with third parties, misuse of intellectual
property, legal disputes or other unintended consequences.
– Failure to adopt or successfully integrate new technology, technology
enhancements or technology acquired through inorganic growth (such
as through acquisition of a company with different types and standards
of security, technologies and systems) may result in impacts to our
business and operations. This could lead to operational stoppage events,
commercial disruption (such as an inability to pay or accept payment),
inability to disclose accurately or an inability to adequately maintain
existing technology.
– Failure or outage of our information or operational technology systems.
Potential opportunities
Technology solutions have the potential to unlock greater productivity and
safety performance within our operations, reduce GHG emissions and/or
better optimise our portfolio through enhancing the identification and
access of previously unknown, inaccessible or uneconomic resources.
Management’s approach
We continue to employ a number of measures designed to protect against,
detect and respond to cyber incidents. More broadly, we monitor regulatory
and industry changes and seek to develop, implement and maintain
technological solutions with appropriate guardrails and controls in place
to support compliance with an evolving regulatory environment and meet
societal expectations.
FY2025 insights
Our exposure to risks associated with adopting technologies
and maintaining digital security remained stable but elevated in
FY2025. This was due to external cybersecurity threat conditions,
with high-profile cyber incidents experienced by other businesses
across Australia and abroad, and the increasing adoption of AI,
machine learning and related technologies. Increasing geopolitical
tensions and conflict continue to impact global cyber threats with
nation-state threat actors targeting non-BHP critical infrastructure,
such as the recent cyber incident disrupting the largest US water
utility company’s operations and on multiple US telecommunications
companies. We continue to monitor and manage the increasing
exposure, including through leveraging next generation 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.
For more information refer to
OFR 3 Our key differentiators
OFR 9.8 Climate change
Risk factor: Low-carbon transition
Risks associated with the transition to a low-carbon economy.
Why is this important to BHP?
Transition risks 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 low-carbon economy.
As a world-leading resources company, BHP is exposed to a range
of transition risks that could affect the execution of our strategy or our
operational efficiency, asset values and growth options, resulting in
a material adverse impact on our financial performance, share price
or reputation, including increased potential for litigation. The complex
and pervasive nature of climate change means transition risks are
interconnected with and may amplify our other risk factors. Additionally,
the inherent uncertainty of potential societal responses to climate change
may create a systemic risk to the global economy and our business.
Examples of potential threats
– Introduction or improvement of low-carbon technologies or changes in
customer preference for products (including the grade of products) that
support the transition to a low-carbon economy may decrease demand
for some of our products, increase our costs or decrease the availability
of key inputs to production. For example:
– Rapid shift to alternative steelmaking technology pathways
(including electric arc furnace (EAF) and direct reduced iron (DRI)
steelmaking) may reduce anticipated demand for our steelmaking
coal and may result in the early closure or divestment of our
steelmaking coal mines.
– Increased recovery and reuse rates of commodities may reduce
demand for our products.
– Adverse macroeconomic changes, such as a decline in global
economic activity and/or security, could be exacerbated by the
transition to a low-carbon economy and reduce anticipated demand
for our future-facing commodities.
– Perceptions of climate-related financial risk and/or social concerns
around climate change may result in investors divesting our securities
or changing their expectations or requirements for investment in our
securities, cause financial institutions not to provide financing or other
products (such as insurance cover) to BHP or to our suppliers or
customers, affect our suppliers’ willingness to provide goods or services,
and affect our customers’ demand to procure our commodities. In turn,
these factors could increase our costs and adversely impact our ability
to optimise our portfolio and pursue growth opportunities.
– Perceived or actual misalignment of BHP’s climate actions (goals,
targets and performance) with societal and investor expectations,
which may diverge across jurisdictions in which we operate, or a
failure to deliver our climate actions, may result in damage to our
reputation, reduced investor confidence, climate-related litigation
(including class actions) or give rise to other adverse regulatory,
legal or market responses.
– Sub-optimal selection, quality, implementation or effectiveness of
technology and related low-carbon supplies that are intended to
contribute towards the delivery of our climate targets, goals and
strategies, or unavailability of that technology and related low-carbon
supplies (including due to the failure of trials of new technology, a failure
of external equipment manufacturers or suppliers to deliver on schedule
or competition for limited supply) could prevent, limit, delay or increase
costs in achieving our plans for operational decarbonisation.
– Changes or ambiguity in laws, regulations, policies, obligations, government
actions and our ability to anticipate and respond to such changes or
accurately interpret the ambiguity, including GHG emission targets
and schemes, restrictive licensing, carbon taxes, carbon offsetting
regulations, border adjustments or the addition or removal of subsidies,
may give rise to adverse regulatory, legal or market responses.
For example, the implementation of regulations intended to reduce
GHG emissions in the steel industry in China could adversely impact
demand for our steelmaking coal or iron ore. In addition, inadequate
market supply of credible carbon credits or price volatility in carbon
markets could increase our operating costs or result in adverse social
value or compliance implications. Inconsistent or developing regulatory
regimes globally may increase the likelihood of an inadvertent failure
or inability to comply with some regulations or to address diverging
interests of stakeholders and exacerbate the impacts of transition risks.
Potential opportunities
We believe our products are well placed to support global trends.
For instance, our copper, iron ore, steelmaking coal and uranium
provide essential building blocks for existing and new renewable energy
infrastructure and alternative power generation and electric vehicles,
while our potash fertiliser options, once operational, have the potential
to promote more efficient and profitable agriculture and help alleviate
the increased competition for arable land.
11 Risk factors continued
70 BHP Annual Report 2025
Management’s approach
We have established climate change targets and goals, which are set out
in OFR 9.8, and have mandatory minimum performance requirements for
managing climate-related risks (threats and opportunities), including the
Environment Global Standard and the Climate Change Global Standard.
We use climate-related scenarios, as well as our planning cases and
monitor themes and signposts (such as emerging policy, regulatory,
legal, technological, market and other societal developments) to evaluate
the resilience of our portfolio, allocate capital, inform our strategy and
other decision-making, and to otherwise support the management of
emerging risks.
FY2025 insights
Our exposure to transition risks remained broadly stable during
FY2025 as recent regulatory developments were implemented,
including the enhanced Safeguard Mechanism in Australia and
new standards for mandatory climate-related financial disclosures
that BHP will be required to comply with in future years, such as
AASB S2 (Australian Sustainability Reporting Standard). The US
withdrawal from the Paris Agreement and its approach to energy
policy may also affect global transition efforts.
For more information refer to
OFR 4 Positioning for growth
OFR 9.4 2030 goals and social value scorecard
OFR 9.8 Climate change
OFR 9.9 Nature and environmental performance
bhp.com/climate
Risk factor: Inadequate business
resilience
Risks associated with unanticipated or unforeseeable
adverse events and a failure of planning and preparedness
to respond to, manage and recover from adverse events
(including potential physical climate-related impacts).
Why is this important to BHP?
In addition to the threats described in our other risk factors, our business
could experience unanticipated, unforeseeable or other adverse events
(internal or external) that could harm our people (both physical and
psychosocial harm), disrupt our operations or value chain or damage our
assets or corporate offices, including our non-operated assets in which
BHP has a non-controlling interest. A failure to identify or understand
exposure, adequately prepare for these events (including maintaining
business continuity plans) or build wider organisational resilience may
inhibit our (or our third-party partners’ and providers’) ability to respond and
recover in an effective and efficient manner. This includes a failure to build
resilience to physical climate-related risks. Material adverse impacts on
our business include reduced ability to access resources, markets and the
operational or other inputs required by our business, reduced production
or sales of or demand for our commodities, or increased regulation,
which could adversely impact our financial performance, share price
or reputation and could lead to litigation (including class actions).
Examples of potential threats
– Geopolitical, global economic, regional or local developments or adverse
events, such as social unrest, strikes, work stoppages, labour disruptions,
social activism, terrorism, bomb threats, economic slowdown, acts of war
or other significant disruptions in areas where we operate or have interests,
including those that affect supply chains and/or end users of our products.
– Extreme weather and climate-related events, such as heatwaves,
extreme precipitation and flooding, hurricanes, cyclones and fires.
For example, production at Olympic Dam was halted for two weeks due
to severe storms in the first half of FY2025, resulting in production loss.
– Other natural events, including earthquakes, tsunamis, wildfires, solar
flares and pandemics.
– Potential physical climate-related impacts, such as acute risks that
are event driven (including increased frequency and severity of
extreme weather events) and chronic risks resulting from longer-term
changes in climate patterns. Climate hazards may include changes
in precipitation patterns, water shortages, rising sea levels, increased
storm intensity, prolonged extreme temperatures and increased drought,
fire and flooding.
– Failure by suppliers, contractors or joint venture partners to perform
existing contracts or obligations (including due to insolvency or supply
chain disruptions), such as construction of large projects or supply
of key inputs to our business (for example, consumables for our
mining equipment).
– Failure of our risk management or other processes (including controls)
to prepare for or manage any of the risks discussed in this risk factors
section may inhibit our (or our third-party partners’ and providers’)
ability to manage any resulting adverse events and may disrupt our
operations or adversely impact our financial performance or reputation.
This includes unknown pre-existing failures in organisations, businesses
or assets that we acquire or invest in through non-organic growth,
as well as any failures that occur during the integration of acquired
businesses to our business (for example, due to different standards or
systems). This also includes the failure of our insurance to sufficiently
cover losses from risks to our business.
Potential opportunities
Building the resilience of our business may enhance our ability to efficiently
identify and manage related risks, supporting proactive, focused and
prioritised deployment of resources to reduce exposure to adverse events.
Management’s approach
We continue to monitor our state of readiness, including through the use
of scenario analysis, and the external environment, including political and
economic factors, to support the identification and management of related
risks. For instance, we continue to implement Group-wide controls that
are designed to enhance business resilience, including BHP’s mandatory
minimum performance requirements for security, crisis and emergency
management and business continuity plans, and seek to maintain an
investment grade credit rating.
FY2025 insights
Our exposure to risks associated with inadequate business
resilience remained broadly stable in FY2025. As a result of
increasing climate-related weather events, we continue to
implement Group-wide controls designed to enhance business
resilience and monitor the external environment to support early
identification of risks to manage associated exposure.
For more information refer to
OFR 8 Safety
OFR 9.6 Health
OFR 9.8 Climate change
OFR 9.9 Nature and environmental performance
bhp.com/sustainability
71
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
12 Performance by commodity
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 13
12.1 Copper
Detailed below is financial and operating information for our Copper assets
comparing FY2025 to FY2024.
Year ended 30 June
US$M 2025 2024
Revenue 22,530 18,566
Underlying EBITDA 12,326 8,564
Net operating assets 40,884 36,368
Capital expenditure 4,392 3,711
Underlying ROCE 17% 13%
Total copper production (kt) 2,017 1,865
Average realised prices
Copper (US$/lb) 4.25 3.98
Unit costs
Escondida (US$/lb) 1.19 1.45
Spence (US$/lb) 2.07 2.13
Copper South Australia (US$/lb) 1.18 1.37
Key drivers of Copper’s financial results
Price overview
Copper was heavily influenced by the threat of tariffs on US copper imports
for much of the second half of FY2025. US prices on COMEX traded
at a significant premium to the London Metal Exchange (LME), which
incentivised much of the world’s available cathode to be shipped to the
United States. Declining copper inventories elsewhere helped lift LME
copper prices above US$10,000/t (US$4.54/lb) at the end of FY2025.
Average prices for the second half of FY2025 were around US$9,400/t
(US4.28/lb), up against the prior half, as well as year-on-year. In July 2025,
the US announced tariffs would exclude copper cathode, largely closing
the COMEX-LME differential. Forward curves suggest the market still sees
a risk of future tariffs, which could continue to influence trade flows.
Chinese copper demand was stronger than expected during FY2025,
with growth in power infrastructure investment and policy support for
domestic consumer durables supplemented by a sharp rise in exports of
manufactured goods. Chinese demand in FY2026 is expected to remain
strong, though growth will decelerate off the current high base.
We maintain our expectation for the copper market to be broadly
balanced in the coming year. Mine supply has seen some challenges in
recent months, with growth expectations downgraded in several regions.
Trade barriers could also hinder the movement of copper scrap, which may
lead to greater demand for primary supply.
In the late 2020s, we expect new, as-yet uncommitted, mine supply to
be required as demand continues to grow and existing supply peaks.
The world is expected to need around 10 Mt of new annual mine supply
over the next 10 years to meet growing demand.
In the longer run, copper fundamentals remain attractive. Demand is
expected to grow from ~33 Mt today to >50 Mt by 2050, with the key
drivers being ‘Traditional’ economic growth (home building, electrical
equipment and household appliances), ‘Energy Transition’ (renewables
and electric vehicles) and ‘Digital’ (Artificial Intelligence and Data
Centres). We anticipate that the cost curve for the mines needed to meet
this demand is likely to steepen as both operational and development
challenges progressively increase. For future mine supply to be
incentivised we believe prices still need to rise from levels seen in
the second half of FY2025.
Production
Total Copper production for FY2025 increased by 8 per cent to 2,017 kt.
Escondida achieved its highest production in 17 years, increasing 16 per
cent due to record concentrator throughput, improved recoveries, higher
concentrator feed grade of 1.02 per cent (FY24: 0.88 per cent) and the
Full SaL leaching project which achieved first production in Q4 FY25.
Pampa Norte, consisting of Spence and Cerro Colorado, copper
production increased by 1 per cent to 268 kt. Spence production
increased 5 per cent to a record 268 kt due to improved stacked feed
grade. Concentrator throughput, feed grade and recovery was broadly in
line with the prior period. Cerro Colorado remains in temporary care and
maintenance, having contributed 11 kt of copper production in FY2024.
Copper South Australia copper production decreased by 2 per cent to
316 kt due to the two-week weather-related power outage in Q2.
Antamina copper production decreased by 17 per cent to 119 kt, reflecting
lower concentrator throughput and a decline in feed grade. Zinc production
was 5 per cent higher at 109 kt, as a result of higher zinc feed grades.
Carajás produced 9.4 kt of copper and 7.3 troy koz of gold.
Financial results
Copper revenue increased by US$4 billion to US$22.5 billion in FY2025
due to higher average realised copper prices and higher production.
Underlying EBITDA for Copper increased by US$3.8 billion to
US$12.3 billion. Price impacts, net of price-linked costs, increased
Underlying EBITDA by US$1.7 billion. Higher volumes increased
Underlying EBITDA by US$2.2 billion.
Controllable cash costs increased by US$0.5 billion, primarily due
to one-off labour related costs combined with higher operational and
maintenance contractor costs to support higher material moved.
Inflation negatively impacted Underlying EBITDA by US$0.3 billion,
however was offset by a decrease in Non-cash costs of US$0.3 billion
related to higher stripping capitalisation at Escondida, reflecting the
phase of the mine plans.
Outlook
Copper production for FY2026 is expected to be between 1,800 and
2,000 kt, reflecting planned lower grade in Chile.
Escondida production of between 1,150 and 1,250 kt is expected in
FY2026, reflecting an expected decrease in concentrator feed grade.
Spence production of between 230 and 250 kt is expected in FY2026
due to expected lower concentrator feed grades and increased volume
of transitional ore processed.
Copper South Australia production of between 310 and 340 kt is expected
in FY2026, weighted to the second half.
Antamina copper production of between 120 to 140 kt and zinc production
of between 90 and 110 kt is expected in FY2026.
Escondida unit costs in FY2026 are expected to be between US$1.20 and
US$1.50 per pound (at an exchange rate of USD/CLP 940).
Spence unit costs in FY2026 are expected to be between US$2.10 and
US$2.40 per pound (at an exchange rate of USD/CLP 940).
Copper South Australia unit costs in FY2026 are expected to be between
US$1.00 and US$1.50 per pound (at an exchange rate of AUD/USD 0.65)
and prices for by-products of gold US$2,900/oz and uranium US$70/lb.
72 BHP Annual Report 2025
12.2 Iron Ore
Detailed below is financial and operating information for our Iron Ore
assets comparing FY2025 to FY2024.
Year ended 30 June
US$M 2025 2024
Revenue 22,919 27,952
Underlying EBITDA 14,396 18,913
Net operating assets 15,252 13,812
Capital expenditure 2,617 2,033
Underlying ROCE 64% 83%
Total iron ore production (Mt) 263 260
Average realised prices
Iron ore (US$/wmt, FOB) 82.13 101.04
Unit costs
WAIO (US$/t) 18.56 18.19
Key drivers of Iron Ore’s financial results
Price overview
Iron ore benchmark prices averaged around US$100/dmt in the second
half of FY2025, similar to the first half. The price was supported by steady
seaborne iron ore demand and relatively weak iron ore supply from the
major seaborne exporters in the March quarter. Chinese demand has
been resilient, benefiting from solid infrastructure investment, healthy
manufacturing particularly for sectors related to the energy transition, and
strong steel exports. These factors offset continued weakness in the real
estate sector. Iron ore demand in the rest of the world was mixed: Demand
from developing Asian economies continued to grow along with new
blast furnace capacity, while Developed Asia and European demand was
impacted by planned blast furnace capacity retirements and maintenance
in response to subdued steel demand.
Looking ahead, rising trade protectionism could weigh on global iron ore
and steel demand in the near term. Seaborne supply is expected to be
higher as production from existing supply basins normalises, and as new
capacity comes onto the market including from Simandou.
Our estimate of cost support continues to sit in the US$80-100/t range
on a 62% Fe CFR basis, formed by approximately 180 Mt of higher cost
supply, mainly from Australian junior miners, Indian fines and some
Chinese domestic mines. Over 60% of this supply sits above the US$90/t
mark for cost support. Export volumes of price-sensitive Indian fines
continued to drop significantly over the second half of FY2025. As the
market turns more competitive, some additional high-cost suppliers may
leave the market in the coming years.
We maintain our view that China’s steel production is likely to maintain its
plateau around the 1 Bt level until the late 2020s. However, Chinese pig
iron production is expected to decline over this period with more scrap
used in steelmaking. In the long run, seaborne iron ore trade is likely
to undergo steady diversification as demand grows in other developing
regions. On the supply side, traditional suppliers may need to weigh
future investment to sustain production in the face of grade decline
and resource depletion.
Production
Total Iron Ore production increased by 1 per cent to a record 263 Mt.
WAIO delivered another full year production record of 257 Mt (290 Mt
on a 100 per cent basis) and record shipments. This strong performance
reflects supply chain excellence with record productive movement, in
addition to improved rail cycle times, and enhanced car dumper and
ship loader performance unlocked by the Port Debottlenecking Project 1
(PDP1). South Flank exceeded nameplate capacity of 80 Mt (100 per cent
basis) in its first year following ramp up, contributing to record Ore for Rail
(OFR) volumes from the Central Pilbara hub (South Flank and Mining Area
C). The record production was delivered despite the impact of Tropical
Cyclone Zelia and Tropical Storm Sean in Q3, and the planned increase
in tie-in activity of the multi-year Rail Technology Programme (RTP1).
Samarco production increased by 34 per cent to 6.4 Mt (BHP share),
following the ramp up of the second concentrator.
Financial results
Total Iron Ore revenue decreased by US$5.0 billion to US$22.9 billion
in FY2025, primarily due to lower average realised prices.
Underlying EBITDA for Iron Ore decreased by US$4.5 billion to
US$14.4 billion primarily due to lower average realised prices, net of
price-linked costs, of US$4.3 billion. Lower net freight recoveries and an
increase in closed sites rehabilitation provision of US$0.2 billion was offset
by favourable foreign exchange rate impacts of US$0.2 billion.
Outlook
WAIO production is expected to be between 251 and 262 Mt (284 and
296 Mt on a 100 per cent basis) in FY2026, incorporating the planned
rebuild of Car Dumper 3 in HY2026 and the ongoing tie-in activities
for RTP1.
WAIO unit costs in FY2026 are expected to be between US$18.25 and
US$19.75 per tonne (based on an exchange rate of AUD/USD 0.65).
Samarco production is expected to be between 7.0 and 7.5 Mt (BHP share)
in FY2026 with the second concentrator now online, somewhat offset by
planned maintenance expected during the financial year.
12.3 Coal
Detailed below is financial and operating information for our Coal assets
comparing FY2025 to FY2024.
Year ended 30 June
US$M 2025 2024
Revenue 5,046 7,666
Underlying EBITDA 573 2,290
Net operating assets 6,357 6,472
Capital expenditure 525 646
Underlying ROCE (1%) 19%
Total steelmaking coal production (Mt) 18 22
Total energy coal production (Mt) 15 15
Average realised prices
Steelmaking coal (US$/t) 193.82 266.06
Hard coking coal (HCC) (US$/t) 193.82 273.03
Weak coking coal (WCC) (US$/t) − 205.54
Energy coal (US$/t) 107.80 121.52
Unit costs
BMA (US$/t) 127.50 119.54
Key drivers of Coal’s financial results
Price overview
Steelmaking coal prices declined in second half of FY2025 as seaborne
demand weakness more than offset ongoing seaborne supply disruptions
in Australia.
Indian pig iron production growth remained strong. Lower demand from
Developed Asia and Europe, and higher domestic coal production in
China weighed on global seaborne steelmaking coal demand. Weak steel
margins outside China also prompted steel mills to reduce their blend
of premium coals.
In the near term, the recovery of Australian supply is likely to continue.
Chinese policy toward domestic coal supply remains a key uncertainty
for global steelmaking coal markets, with Chinese coking coal prices
increasing since July owing to market expectations for supply intervention.
Over the longer term, we expect that higher quality steelmaking coals, such
as those produced by our BMA assets, will be valued for their role in reducing
the greenhouse gas emission intensity of blast furnaces. In addition, robust
hard coking coal imports from developing countries such as India, will
lead to growing and resilient demand for decades to come. With the major
seaborne supply region of Queensland not being conducive to long-life capital
investment owing to the current royalty regime, the scarcity value of higher
quality steelmaking coals may also increase over time.
73Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Production
Steelmaking coal
BMA production decreased by 19 per cent to 18 Mt due to the divestment
of Blackwater and Daunia mines in FY2024. Excluding the divestment,
production increased 5 per cent underpinned by improved truck
productivity that led to increased production across all open cut mines.
Energy coal
NSWEC production decreased by 2 per cent to 15 Mt due to increased
wet weather impacting truck productivity, as well as a higher proportion
of washed coal and reduced truck availability in Q1, partially offset by
a drawdown of inventory.
Financial results
Coal revenue decreased by US$2.6 billion to US$5.0 billion in FY2025
mainly due to lower average realised prices and the divestment of
Blackwater and Daunia in FY2024.
Underlying EBITDA for Coal decreased by US$1.7 billion to US$0.6 billion.
Price impacts, net of price-linked costs, decreased Underlying EBITDA
by US$1.1 billion and the divestment of Blackwater and Daunia in FY2024
reduced EBITDA by US$0.4 billion.
Controllable cash costs increased by US$0.3 billion primarily due to
inventory drawdowns to offset the impact of Broadmeadow geotechnical
characteristics and significant wet weather. Favourable foreign exchange rate
impacts of US$0.1 billion were offset by higher Inflation of US$0.1 billion.
Outlook
BMA production is expected to be between 18 and 20 Mt (36 and 40 Mt
on a 100 per cent basis) in FY2026, weighted to the second half.
BMA unit costs in FY2026 are expected to be between US$116 and
US$128 per tonne (based on an exchange rate of AUD/USD 0.65).
NSWEC production is expected to be between 14 and 16 Mt in FY2026.
12.4 Other assets
Detailed below is an analysis of Other assets’ financial and operating
performance comparing FY2025 to FY2024.
Western Australia Nickel
Key drivers of Western Australia Nickel’s
financial results
Price overview
The nickel market remained in surplus in the second half of FY2025,
with prices trending generally lower across the period. While demand for
electric vehicles in China has grown strongly, sales penetration in OECD
countries has been below expectations. The share of non-nickel battery
chemistries has also risen, weighing on near-term nickel demand growth.
These trends are expected to continue in the near term, suggesting that
the market will remain in surplus. Indonesian supply continues to grow
strongly, though Indonesian government policy remains a key factor for
future growth.
Production
Western Australia Nickel (WAN) production decreased by 63 per cent
to 30 kt, as operations transitioned into temporary suspension in
December 2024.
Financial results
WAN revenue decreased by US$0.7 billion to US$0.8 billion in FY2025,
as operations transitioned into temporary suspension in December 2024.
WAN recorded an Underlying EBITDA loss of US$0.6 billion in FY2025,
including care and maintenance program of works, compared to a loss
of US$0.3 billion in FY2024.
Outlook
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$284 million in FY2025,
compared to a loss of US$255 million in FY2024.
Jansen Stage 1 is 68 per cent complete with estimated date of first production
under review, which may revert to the original schedule of mid-CY2027.
Price overview
Potash prices moved higher during the second half of FY2025 on
strong demand, particularly from India and Southeast Asia, reports of
maintenance at Russian and Belarusian mines, and disruptions in Laos.
In FY2026, we expect the potash market to come closer to balance as
demand adjusts to current market conditions.
In the medium term, potash demand is expected to continue to benefit from
a rising and wealthier population and changing diets, while additional supply
from traditional and emerging basins is also expected to be added to the
market over this period.
Longer term, we believe that potash stands to benefit from the intersection
of several global megatrends: rising population, changing diets and the
need for more sustainable and efficient use of arable land for agriculture.
These attractive long-term demand fundamentals combined with Jansen’s
expected position in the industry as one of the lowest cost producers once
it has ramped up will cement the role of potash within BHP’s portfolio over
the long term.
12.5 Impact of changes to commodity prices
The prices we obtain for our products are a key driver of value for BHP.
Fluctuations in these commodity prices affect our results, including cash
flows and asset values. The estimated impact of changes in commodity
prices in FY2025 on our key financial measures is set out below.
Impact on profit
after taxation
(US$M)
Impact on
Underlying
EBITDA
(US$M)
US¢1/lb on copper price 29 42
US$1/t on iron ore price 162 232
US$1/t on steelmaking coal price 8 11
US$1/t on energy coal price 9 14
12 Performance by commodity continued
74 BHP Annual Report 2025
13 Non-IFRS financial information
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, however 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 reviews the financial performance of the Group with the Board and the
investment community.
Sections 13.1 and 13.2 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.
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Revenue − − −
Other income − 877 −
Expenses excluding net finance costs, depreciation, amortisation and impairments (621) (139) (103)
Depreciation and amortisation − − −
Impairments of property, plant and equipment and intangibles net of reversals 90 (3,800) −
Profit/(loss) from equity accounted investments, related impairments and expenses (245) (3,032) 215
Profit/(loss) from operations (776) (6,094) 112
Financial expenses (458) (506) (452)
Financial income − − −
Net finance costs (458) (506) (452)
Profit/(loss) before taxation (1,234) (6,600) (340)
Income tax (expense)/benefit 96 837 (266)
Royalty-related taxation (net of income tax benefit) − − −
Total taxation (expense)/benefit 96 837 (266)
Profit/(loss) after taxation (1,138) (5,763) (606)
Total exceptional items attributable to non-controlling interests − − (107)
Total exceptional items attributable to BHP shareholders (1,138) (5,763) (499)
Exceptional items attributable to BHP shareholders per share (US cents) (22.4) (113.7) (9.8)
Weighted basic average number of shares (million) 5,073 5,068 5,064
75
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Non-IFRS financial information derived from Consolidated Income Statement
Underlying attributable profit
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Profit after taxation attributable to BHP shareholders 9,019 7,8 97 12,921
Total exceptional items attributable to BHP shareholders
1
1,138 5,763 499
Underlying attributable profit 10,157 13,660 13,420
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
Underlying basic earnings per share
Year ended 30 June
2025
US cents
2024
US cents
2023
US cents
Basic earnings per ordinary share 17 7.8 155.8 255.2
Exceptional items attributable to BHP shareholders per share
1
22.4 113.7 9.8
Underlying basic earnings per ordinary share 200.2 269.5 265.0
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
Underlying EBITDA
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Profit from operations 19,464 17,537 22,932
Exceptional items included in profit from operations
1
776 6,094 (112)
Underlying EBIT 20,240 23,631 22,820
Depreciation and amortisation expense 5,540 5,295 5,061
Impairments of property, plant and equipment and intangibles net of reversals 108 3,890 75
Exceptional items included in depreciation, amortisation and impairments
1
90 (3,800) −
Underlying EBITDA 25,978 29,016 27,956
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
13 Non-IFRS financial information continued
76 BHP Annual Report 2025
Underlying EBITDA – Segment
Year ended 30 June 2025
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
2
Total Group
Profit from operations 9,956 11,826 (33) (2,285) 19,464
Exceptional items included in profit from operations
1
− 321 − 455 776
Depreciation and amortisation expense 2,351 2,098 602 489 5,540
Impairments of property, plant and equipment and
intangibles net of reversals 19 151 4 (66) 108
Exceptional items included in depreciation, amortisation
and impairments
1
− − − 90 90
Underlying EBITDA 12,326 14,396 573 (1,317) 25,978
Year ended 30 June 2024
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
2
Total Group
Profit from operations 6,524 13,759 2,557 (5,303) 17,5 37
Exceptional items included in profit from operations
1
− 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 impairments
1
− − − (3,800) (3,800)
Underlying EBITDA 8,564 18,913 2,290 (751) 29,016
Year ended 30 June 2023
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
2
Total Group
Profit from operations 4,810 14,847 4,295 (1,020) 22,932
Exceptional items included in profit from operations
1
− (176) − 64 (112)
Depreciation and amortisation expense 1,810 1,993 697 561 5,061
Impairments of property, plant and equipment and
intangibles net of reversals 33 28 6 8 75
Underlying EBITDA 6,653 16,692 4,998 (387) 27,956
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
2. Group and unallocated items includes functions, other unallocated operations, including Potash, Western Australia Nickel, legacy assets and consolidation adjustments.
Year ended 30 June 2025
US$M
Profit from
operations
Exceptional
items included
in profit from
operations
1
Depreciation
and
amortisation
Impairments
net of reversals
Exceptional
items included
in depreciation,
amortisation and
impairments
1
Underlying
EBITDA
Potash (286) − 2 − − (284)
Western Australia Nickel (909) 320 − (90) 90 (589)
Other
2
(1,090) 135 487 24 − (444)
Total (2,285) 455 489 (66) 90 (1,317)
Year ended 30 June 2024
US$M
Profit from
operations
Exceptional
items included
in profit from
operations
1
Depreciation
and
amortisation
Impairments
net of reversals
Exceptional
items included
in depreciation,
amortisation and
impairments
1
Underlying
EBITDA
Potash (257) − 2 − − (255)
Western Australia Nickel (4,174) 3,800 72 3,800 (3,800) (302)
Other
2
(872) 108 560 10 − (194)
Total (5,303) 3,908 634 3,810 (3,800) (751)
Year ended 30 June 2023
US$M
Profit from
operations
Exceptional
items included
in profit from
operations
1
Depreciation
and
amortisation
Impairments
net of reversals
Exceptional
items included
in depreciation,
amortisation and
impairments
1
Underlying
EBITDA
Potash (207) − 2 − − (205)
Western Australia Nickel 55 − 105 2 − 162
Other
2
(868) 64 454 6 − (344)
Total (1,020) 64 561 8 − (387)
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
2. Other includes functions, other unallocated operations, legacy assets and consolidation adjustments.
77Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Underlying EBITDA margin
Year ended 30 June 2025
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
1
Total Group
Revenue – Group production 20,685 22,891 5,046 530 49,152
Revenue – Third-party products 1,845 28 − 237 2,110
Revenue 22,530 22,919 5,046 767 51,262
Underlying EBITDA – Group production 12,235 14,392 573 (1,341) 25,859
Underlying EBITDA – Third-party products 91 4 − 24 119
Underlying EBITDA
2
12,326 14,396 573 (1,317) 25,978
Segment contribution to the Group’s Underlying EBITDA
3
45% 53% 2% 100%
Underlying EBITDA margin
4
59% 63% 11% 53%
Year ended 30 June 2024
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
1
Total Group
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 EBITDA
2
8,564 18,913 2,290 (751) 29,016
Segment contribution to the Group’s Underlying EBITDA
3
29% 64% 7% 100%
Underlying EBITDA margin
4
51% 68% 30% 54%
Year ended 30 June 2023
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
1
Total Group
Revenue – Group production 14,164 24,791 10,958 2,009 51,922
Revenue – Third-party products 1,863 21 − 11 1,895
Revenue 16,027 24,812 10,958 2,020 53,817
Underlying EBITDA – Group production 6,635 16,693 4,998 (387) 27,939
Underlying EBITDA – Third-party products 18 (1) − − 17
Underlying EBITDA
2
6,653 16,692 4,998 (387) 27,9 56
Segment contribution to the Group’s Underlying EBITDA
3
23% 59% 18% 100%
Underlying EBITDA margin
4
47% 67% 46% 54%
1. Group and unallocated items includes functions, other unallocated operations, including Potash, Western Australia Nickel, legacy assets and consolidation adjustments.
2. We differentiate sales of our production (which may include third-party product feed) from direct sales of third-party products to better measure our operational profitability as a percentage
of revenue. We may buy and sell third-party products to ensure a steady supply of product to our customers where there is occasional production variability or shortfalls from our assets.
3. Percentage contribution to Group Underlying EBITDA, excluding Group and unallocated items.
4. Underlying EBITDA margin excludes third-party products.
Effective tax rate
2025 2024 2023
Year ended 30 June
Profit
before
taxation
US$M
Income
tax
expense
US$M %
Profit
before
taxation
US$M
Income
tax
expense
US$M %
Profit
before
taxation
US$M
Income
tax
expense
US$M %
Statutory effective tax rate 18,353 (7,210) 39.3 16,048 (6,447) 40.2 21,401 (7,077) 33.1
Adjusted for:
Exchange rate movements − 21 − (79) − 94
Exceptional items
1
1,234 (96) 6,600 (837) 340 266
Adjusted effective tax rate 19,587 (7,285) 37.2 22,648 (7, 363) 32.5 21,741 (6,717) 30.9
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
13 Non-IFRS financial information continued
78 BHP Annual Report 2025
Non-IFRS financial information derived from Consolidated Cash Flow Statement
Capital and exploration expenditure
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Capital expenditure (purchases of property, plant and equipment) 9,398 8,816 6,733
Add: Exploration and evaluation expenditure 396 457 350
Capital and exploration expenditure (cash basis) 9,794 9,273 7,08 3
Free cash flow
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Net operating cash flows 18,692 20,665 18,701
Net investing cash flows (13,350) (8,762) (13,065)
Free cash flow 5,342 11,903 5,636
Non-IFRS financial information derived from Consolidated Balance Sheet
Net debt and gearing ratio
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Interest bearing liabilities – Current 2,018 2,084 7,173
Interest bearing liabilities – Non-current 22,478 18,634 15,172
Total interest bearing liabilities 24,496 20,718 22,345
Comprising:
Borrowing 21,543 17,602 19,326
Lease liabilities 2,953 3,116 3,019
Less: Lease liability associated with index-linked freight contracts 333 511 287
Less: Cash and cash equivalents 11,894 12,501 12,428
Less: Net debt management related instruments
1
(595) (1,395) (1,572)
Less: Net cash management related instruments
2
(60) (19) 36
Less: Total derivatives included in net debt (655) (1,414) (1,536)
Net debt 12,924 9,120 11,166
Net assets 52,218 49,120 48,530
Gearing 19.8% 15.7% 18.7%
1. Represents the net cross currency and interest rate swaps included within current and non-current other financial assets and liabilities.
2. Represents the net forward exchange contracts related to cash management included within current and non-current other financial assets and liabilities.
79Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Net debt waterfall
Year ended 30 June
2025
US$M
2024
US$M
Net debt at the beginning of the period (9,120) (11,16 6)
Net operating cash flows 18,692 20,665
Net investing cash flows (13,350) (8,762)
Net financing cash flows (5,971) (11,669)
Net (decrease)/increase in cash and cash equivalents (629) 234
Carrying value of interest bearing liability net (proceeds)/repayments (2,454) 2,236
Carrying value of debt related instruments settlements 147 321
Carrying value of cash management related instruments proceeds (195) (361)
Fair value change on hedged loans (263) 214
Fair value change on hedging derivatives 290 (188)
Foreign currency exchange rate changes on cash and cash equivalents 24 (159)
Lease additions (excluding leases associated with index-linked freight contracts) (547) (429)
Divestment of subsidiaries and operations − 60
Other (177) 118
Non-cash movements (673) (384)
Net debt at the end of the period (12,924) (9,120)
Net operating assets
The following table reconciles Net operating assets for the Group to Net assets on the Consolidated Balance Sheet.
Year ended 30 June
2025
US$M
2024
US$M
Net assets 52,218 49,120
Less: Non-operating assets
Cash and cash equivalents (11,894) (12,501)
Trade and other receivables
1
(17) (306)
Other financial assets
2
(1,251) (1,398)
Current tax assets (545) (314)
Deferred tax assets (78) (67)
Add: Non-operating liabilities
Trade and other payables
3
332 297
Interest bearing liabilities 24,496 20,718
Other financial liabilities
4
1,117 1,558
Current tax payable 900 884
Non-current tax payable 3 40
Deferred tax liabilities 3,506 3,332
Net operating assets 68,787 61,363
Net operating assets
Copper 40,884 36,368
Iron Ore 15,252 13,812
Coal 6,357 6,472
Group and unallocated items
5
6,294 4,711
Total 68,787 61,363
1. Represents external finance receivable, accrued interest receivable and receivables related to divestment of subsidiaries and operations included within other receivables.
2. Represents cross currency and interest rate swaps, forward exchange contracts related to cash management, investment in shares, other investments, deferred receivable
from divestment of subsidiaries and operations and associated receivables contingent on outcome of future events relating to realised commodity prices.
3. Represents accrued interest payable included within other payables.
4. Represents cross currency and interest rate swaps and forward exchange contracts related to cash management.
5. Group and unallocated items includes functions, other unallocated operations, including Potash, Western Australia Nickel, legacy assets and consolidation adjustments.
13 Non-IFRS financial information continued
80 BHP Annual Report 2025
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 FY2025 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 13.2
Revenue
US$M
Total expenses,
other income
and profit/(loss)
from equity
accounted
investments
US$M
Profit from
operations
US$M
Depreciation,
amortisation and
impairments and
exceptional
items
US$M
Underlying
EBITDA
US$M
Year ended 30 June 2024
Revenue 55,658
Other income 1,285
Expenses excluding net finance costs (36,750)
(Loss)/profit from equity accounted investments, related impairments
and expenses
(2,656)
Total other income, expenses excluding net finance costs and (loss)/profit
from equity accounted investments, related impairments and expenses
(38,121)
Profit from operations 17,537
Depreciation, amortisation and impairments
1
9,185
Exceptional item included in Depreciation, amortisation and impairments (3,800)
Exceptional items 6,094
Underlying EBITDA 29,016
Change in sales prices (4,580) − (4,580) − (4,580)
Price-linked costs − 875 875 − 875
Net price impact (4,580) 875 (3,705) − (3,705)
Change in volumes 2,540 (325) 2,215 − 2,215
Operating cash costs − (893) (893) − (893)
Exploration and business development − (60) (60) − (60)
Change in controllable cash costs
2
− (953) (953) − (953)
Exchange rates − 354 354 − 354
Inflation on costs − (538) (538) − (538)
Fuel, energy and consumable price movements − 148 148 − 148
Non-cash − 392 392 − 392
One-off items − − − − −
Change in other costs − 356 356 − 356
Asset sales − (40) (40) − (40)
Ceased and sold operations (1,944) 1,222 (722) − (722)
New and acquired operations − − − − −
Other (412) 223 (189) − (189)
Depreciation, amortisation and impairments − (353) (353) 353 −
Exceptional items − 5,318 5,318 (5,318) −
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 impairments
1
5,648
Exceptional item included in Depreciation, amortisation and impairments 90
Exceptional items 776
Underlying EBITDA 25,978
1. Depreciation and impairments that we classify as exceptional items are excluded from depreciation, amortisation and impairments. Depreciation, amortisation and impairments includes
non-exceptional impairments of US$198 million (FY2024: US$90 million).
2. Collectively, we refer to the change in operating cash costs and change in exploration and business development as Change in controllable cash costs. Operating cash costs by definition
do not include non-cash costs. The change in operating cash costs also excludes the impact of exchange rates and inflation, changes in fuel, energy costs and consumable costs, changes
in exploration and evaluation and business development costs and one-off items. These items are excluded so as to provide a consistent measurement of changes in costs across all
segments, based on the factors that are within the control and responsibility of the segment.
81Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
Underlying return on capital employed (ROCE)
Year ended 30 June
2025
US$M
2024
US$M
2023
US$M
Profit after taxation 11,143 9,601 14,324
Exceptional items
1
1,138 5,763 606
Subtotal 12,281 15,364 14,930
Adjusted for:
Net finance costs 1,111 1,489 1,531
Exceptional items included within net finance costs
1
(458) (506) (452)
Income tax expense on net finance costs (224) (303) (342)
Profit after taxation excluding net finance costs and exceptional items 12,710 16,044 15,667
Net assets at the beginning of the period 49,120 48,530 48,766
Net debt at the beginning of the period 9,120 11,166 333
Capital employed at the beginning of the period 58,240 59,696 49,099
Net assets at the end of the period 52,218 49,120 48,530
Net debt at the end of the period 12,924 9,120 11,166
Capital employed at the end of the period 65,142 58,240 59,696
Average capital employed 61,691 58,968 54,398
Underlying return on capital employed 20.6% 27. 2% 28.8%
1. For more information refer to Financial Statements note 3 ‘Exceptional items’.
Underlying return on capital employed (ROCE) by segment
Year ended 30 June 2025
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
1
Total Group
Profit after taxation excluding net finance
costs and exceptional items 5,750 8,541 (42) (1,539) 12,710
Average capital employed 33,906 13,408 6,590 7,787 61,691
Underlying return on capital employed 17% 64% (1%) − 20.6%
Year ended 30 June 2024
US$M Copper Iron Ore Coal
Group and
unallocated
items/
eliminations
1
Total Group
Profit after taxation excluding net finance
costs and exceptional items 4,099 11,877 1,254 (1,186) 16,044
Average capital employed 31,205 14,259 6,529 6,975 58,968
Underlying return on capital employed 13% 83% 19% − 27.2%
1. Group and unallocated items includes functions, other unallocated operations including Potash, Western Australia Nickel (comprising Nickel West and West Musgrave, both transitioned
into temporary suspension in December 2024), legacy assets and consolidation adjustments.
Underlying return on capital employed (ROCE) by asset
Year ended
30 June 2025
US$M
Western
Australia
Iron Ore Escondida Antamina
Pampa
Norte
Copper
South
Australia
BHP
Mitsubishi
Alliance
Western
Australia
Nickel
1
Potash
2
New South
Wales
Energy
Coal
3
Other
Total
Group
Profit after taxation
excluding net finance costs
and exceptional items 8,579 4,144 505 469 846 67 (684) (331) 76 (961) 12,710
Average capital employed 19,890 11,213 1,513 4,353 15,282 6,564 (11) 7,324 (50) (4,387) 61,691
Underlying return on
capital employed 43% 37% 33% 11% 6% 1% − − − − 20.6%
Year ended
30 June 2024
US$M
Western
Australia
Iron Ore Escondida Antamina
Pampa
Norte
Copper
South
Australia
BHP
Mitsubishi
Alliance
Western
Australia
Nickel
1
Potash
2
New South
Wales
Energy
Coal
3
Other
Total
Group
Profit after taxation
excluding net finance costs
and exceptional items 11,939 2,912 440 296 671 1,038 (369) (265) 277 (895) 16,044
Average capital employed 19,732 10,677 1,404 4,224 14,578 6,731 1,269 5,303 (364) (4,586) 58,968
Underlying return on
capital employed 61% 27% 31% 7% 5% 15% − − − − 27.2%
1. Western Australia Nickel ROCE has not been shown following transition into temporary suspension.
2. Potash ROCE has not been shown because it is distorted as the asset is non-producing and in its development phase.
3. NSWEC ROCE has not been shown as it is distorted by negative capital employed due to the rehabilitation provision being the primary balance remaining on Balance Sheet following
previous impairments.
13 Non-IFRS financial information continued
82 BHP Annual Report 2025
Unit costs
Unit costs do not include the re-allocation to assets in FY2024 and FY2025 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 Australia unit costs
US$M FY2025 FY2024 FY2025 FY2024 FY2025 FY2024
Revenue 13,177 10,013 2,726 2,271 4,655 4,085
Underlying EBITDA 8,593 5,759 1,296 961 1,936 1,568
Gross costs 4,584 4,254 1,430 1,310 2,719 2,517
Less: by-product credits 754 523 134 105 1,682 1,354
Less: freight 224 194 51 49 28 57
Less: government royalties 124 54 − − 166 141
Less: re-allocation of costs associated with the
employee entitlements and allowances review − − − − 2 14
Net costs 3,482 3,483 1,245 1,156 841 951
Sales (kt) 1,324 1,087 273 246 324 314
Sales (Mlb) 2,918 2,396 602 543 713 692
Cost per pound (US$)
1
1.19 1.45 2.07 2.13 1.18 1.37
1. FY2025 based on average realised exchange rates of USD/CLP 951 (FY2024 USD/CLP 907) and on an average realised exchange rate of AUD/USD 0.65 (FY2024 AUD/USD 0.66).
The calculation of WAIO unit costs is set out in the table below.
WAIO unit costs
US$M FY2025 FY2024
Revenue 22,767 27,8 05
Underlying EBITDA 14,394 18,964
Gross costs 8,373 8,841
Less: freight 2,004 2,182
Less: government royalties 1,612 1,954
Less: re-allocation of costs associated with the employee entitlements and allowances review 28 48
Net costs 4,729 4,657
Sales (kt, equity share) 254,813 255,977
Cost per tonne (US$)
1
18.56 18.19
1. FY2025 based on an average realised exchange rate of AUD/USD 0.65 (FY2024 AUD/USD 0.66).
The calculation of BMA unit costs is set out in the table below.
BMA unit costs
US$M FY2025 FY2024
Revenue 3,422 5,873
Underlying EBITDA 591 1,914
Gross costs 2,831 3,959
Less: freight 28 29
Less: government royalties 530 1,260
Less: re-allocation of costs associated with the employee entitlements and allowances review 1 5
Net costs 2,272 2,665
Sales (kt, equity share) 17,820 22,294
Cost per tonne (US$)
1
127.50 119.54
1. FY2025 based on an average realised exchange rate of AUD/USD 0.65 (FY2024 AUD/USD 0.66).
83Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
13.1 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).
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, 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).
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.
13 Non-IFRS financial information continued
84 BHP Annual Report 2025
Non-IFRS
financial information
Reasons why we believe the non-IFRS
financial information is useful Calculation methodology
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 FY2024
and FY2025 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 exclude:
– by-product credits being the favourable impact of
by-products (such as gold or silver) to determine the
directly attributable costs of copper production
– 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
13.2 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 (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 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 Change in inflation rate applied to 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.
85
Overview Additional InformationFinancial StatementsGovernanceContents Operating and Financial Review
14.1 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. Those terms do not include non-operated assets.
This 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 BHP-operated joint venture
1
(referred to
in this Report as ‘operated assets’ or ‘operations’) from 1 July 2024 to 30 June
2025 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.
14.2 Forward-looking statements
This 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;
development and production forecasts; guidance; expectations, plans,
strategies and objectives of management; climate scenarios; approval of
projects and consummation of transactions; closure, divestment, acquisition
or integration of certain assets, ventures, operations or facilities (including
associated costs or benefits); anticipated production or construction
commencement dates; capital costs and scheduling; 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.
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, nickel, iron ore, steelmaking
coal, potash and steel and our intentions, commitments or expectations with
respect to our supply of certain commodities, including copper, nickel, iron
ore, potash, uranium 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,
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, and related perceived
14 Other information
1. 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.
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 sustainability
reporting, frameworks, standards and initiatives; (xiii) our commitments to
improve or maintain safe tailings storage management; (xiv) our commitments
to achieve certain inclusion and diversity targets, aspirations and outcomes;
(xv) our commitments to achieve certain targets and outcomes with respect
to Indigenous peoples and the communities where we operate; (xvi) our
commitments to achieve certain water-related targets and outcomes; and (xvii)
our commitments to achieve certain health and safety targets 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. BHP cautions against reliance on any forward-looking statements.
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; (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;
and (ix) other factors identified in the risk factors set out in OFR 11.
In addition, 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.
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.
For information on how we calculate our GHG emissions and operational
energy consumption, refer to the BHP GHG Emissions Calculation
Methodology 2025, available at bhp.com/sustainability
This Report is made in accordance with a resolution of the Board.
Ross McEwan
Chair
Dated: 19 August 2025
86 BHP Annual Report 2025
1. Corporate governance at BHP
Good corporate governance underpins
the way we conduct business.
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
FY2025. 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.
This Corporate Governance Statement is current as at 19 August 2025 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
Corporate Governance Statement
2. FY2025 corporate
governance highlights
2. FY2025 corporate
governance highlights
Our Code of Conduct
The Board approved the refreshed Our Code of
Conduct in FY2025, which was published in March
2025. Our Code of Conduct applies to everyone
who works for BHP, with BHP or on BHP’s behalf
(including employees, directors and contractors).
Our Code of Conduct was streamlined and
updated in FY2025 to reflect changes to the
external environment and our business context
and to include a greater focus on values-driven
decision-making in line with Our Values, which
were refreshed in FY2024.
BHP Chair transition
A key activity during the year was the Chair
succession and transition process. Ken MacKenzie
retired as Chair and a Non-executive Director
on 31 March 2025. Ross McEwan succeeded
Ken MacKenzie as Chair of the Board and Chair
of the Nomination and Governance Committee
on 31 March 2025. The appointment of Ross
McEwan as Chair followed a formal Chair
succession process led by BHP Senior
Independent Director, Gary Goldberg.
Gender balance
In April 2025, we achieved our aspirational
goal to achieve gender balance within our
employee workforce globally by CY2025, with
women comprising 41.3 per cent of our global
employee workforce. 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.
The Board continues to be gender balanced.
Site visits
The Board visited key BHP sites during FY2025,
including Copper South Australia, BMA, legacy
assets and Resolution Copper, and attended
customer site visits. The Board met with a broad
range of stakeholders during these visits, including
workforce, partners, community members and
Indigenous and First Nations representatives.
87Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Corporate Governance Statement continued
3. BHP’s governance structure
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 Chief Executive Officer (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 FY2025.
The matters reserved for the Board as set out in the revised Board
Governance Document include:
– appointing the CEO and determining the terms of the appointment
– approving the appointment of Executive Leadership Team (ELT) members
and material changes to the organisational structure involving direct
reports to the CEO
– succession planning for the CEO and direct reports to the CEO
– monitoring the performance of the CEO and the Group
– monitoring Board composition, processes and performance
– approving the Group’s values, Our Code of Conduct, purpose and
risk appetite
– establishing, approving and assessing measurable objectives for achieving
gender diversity in the composition of the Board, senior executives and
workforce generally and assessing the Group’s progress in achieving
those measurable objectives
– approving strategy, annual budgets, balance sheet management
and funding strategy
– approving commitments, capital and non-capital items, acquisitions
and divestments above specified thresholds
– approving the dividend policy and determining dividends
– approving significant social, community and sustainability policies, including
those related to climate change and public sustainability goals and targets
– reviewing and monitoring the effectiveness of the Group’s systems of
principal and emerging financial and non-financial risk management
and internal control, and making sure there is an appropriate risk
management framework in place
– determining and adopting documents (including the publication of
reports and statements to shareholders) that are required by BHP’s
Constitution, statute or by other external regulation
– determining and approving matters that are required by BHP’s
Constitution, statute or by other external regulation to be determined
or approved by the Board
The Board Governance Document is available at bhp.com/governance
In Q4 FY2025, the Board approved a refreshed risk
appetite statement that is effective from FY2026.
This provides guidance to management on the level
of risk we seek to take in pursuing our objectives.
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.
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.
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 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 extensive 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.
Executive
Leadership
Team
Our People
Risk and Audit
Committee
Sustainability
Committee
Nomination and
Governance Committee
People and Remuneration
Committee
Board
Chief
Executive
Officer
Shareholders
88 BHP Annual Report 2025
4.1 Board of Directors
and Company Secretary
The Board currently has nine
members. The Directors’
qualifications, experience and
special responsibilities are
listed below.
Key to Committee membership
Committee Chair
Committee member
RA
Risk and Audit
NG
Nomination and Governance
PR
People and Remuneration
S
Sustainability
Ross McEwan
Bachelor of Business
NG
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).
Mike Henry
Bachelor of Science (Chemistry)
Appointment
Non-independent Director since
January 2020
Chief Executive Officer since
1 January 2020
Skills and experience
Mike Henry has over 30 years’
experience in the global mining
and petroleum industry, spanning
operational, commercial, safety,
technology and marketing roles.
Mike joined BHP in 2003 and has
been a member of the Executive
Leadership Team since 2011.
Prior to joining BHP, Mike worked
in the resources industry in
Canada, Japan and Australia.
Mike brings deep operational and
market knowledge across a range
of commodities and a strategic
approach to resource and skills
development to implement BHP’s
strategy and future growth options
that will support global economic
growth and decarbonisation.
He is focused on creating a
safe, high-performance culture,
enabled by an inclusive workplace
in which people are empowered
at every level through the BHP
Operating System.
Mike is committed to building strong
relationships with governments,
Indigenous partners, community
stakeholders and business
partners to ensure BHP’s activities
deliver mutual benefit to these
stakeholders while driving strong
value for shareholders. Mike brings
a disciplined approach to the
Board’s considerations of capital
allocation in assets, technology,
commodities and risk management.
Xiaoqun Clever-Steg
Diploma in Computer Science and
International Marketing, MBA
RA
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).
4. Board composition and succession
89Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Corporate Governance Statement continued
Gary Goldberg
Bachelor of Science
(Mining Engineering), MBA
S
NG
Appointment
Independent Non-executive
Director since February 2020
Senior Independent Director
since 21 December 2020
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).
Michelle Hinchliffe
Bachelor of Commerce, FCA, ACA
RA
NG
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 plc and
Santander UK Group Holdings Plc
(since June 2023) and Macquarie
Group Limited and Macquarie Bank
Limited (since March 2022).
Don Lindsay
Bachelor of Science (Hons), MBA
RA
S
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).
Christine O’Reilly
Bachelor of Business
PR
RA
NG
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).
90 BHP Annual Report 2025
Catherine Tanna
Bachelor of Laws, Honorary Doctor
of Business
S
NG
PR
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 at Bechtel Corporation
(since May 2023), Chair of Bechtel
Australia (since December 2023)
and Senior Advisor at McKinsey
& Company Inc (since April 2022).
Dion Weisler
Bachelor of Applied Science
(Computing), Honorary Doctor
of Laws
PR
S
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).
Stefanie Wilkinson
Bachelor of Arts, Bachelor of Laws
(Hons), LLM, FGIA
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.
91Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Corporate Governance Statement continued
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 confirms that it 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. Some Directors hold
or have previously held positions in companies that BHP has commercial
relationships with. The Board has assessed the relationships between
BHP and the companies in which Directors hold or held positions and
has concluded that the relationships do not interfere with the Directors’
capacity to bring an independent judgement to bear on issues before the
Board, or their ability to act in the best interests of BHP as a whole.
Dion Weisler was appointed Non-executive Director of Qantas Airways
Limited in March 2025. Qantas provides BHP with air travel services
including for workers at BHP’s Minerals Australia operations. Dion does
not have any active role in the provision of services by Qantas to BHP.
Catherine Tanna was appointed Non-executive Director at Bechtel
Corporation and Chair of Bechtel Australia in 2023. Bechtel supplies BHP
with engineering and other services at BHP assets in Minerals Australia
and Minerals America. Catherine does not have any active role in the
provision of services by Bechtel to BHP. 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.
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.
Chair transition
Ken MacKenzie retired from the Board on 31 March 2025, having been
an independent Non-executive Director of BHP since September 2016
and the Chair of the Board since September 2017.
The Board elected Ross McEwan to succeed Ken MacKenzie as Chair
of the Board and Ross was appointed as Chair on 31 March 2025. Ross
has been a Non-executive Director of BHP since April 2024.
The appointment of Ross McEwan as Chair followed a formal Chair
succession process led by BHP Senior Independent Director, Gary Goldberg.
The Group Chair succession planning process is the responsibility of
the Board which makes all decisions on Chair succession, including the
appointment of the Chair. The role of the Nomination and Governance
Committee is to support the Board in its decision-making by periodically
reviewing the Chair succession process and undertaking tasks or activities
to prepare for a succession event, at the request of the Board.
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:
– briefings, development sessions and deep dives to provide each Director
with a deeper understanding of the activities, environment, key issues and
direction of BHP assets, along with broader sustainability, climate-related,
geopolitical and cybersecurity considerations
– training on crisis management
– site visits to provide insights into key issues at BHP’s sites and to
provide an opportunity for direct engagement with a cross-section
of our workforce, community members, contractors, Indigenous
and First Nations representatives and other stakeholders
– engagement with external experts to discuss views on current and
emerging trends and risks (threats and opportunities)
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.
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:
– provide the breadth and depth of understanding necessary to effectively
create long-term shareholder value
– protect and promote the interests of BHP and the creation of social value
– ensure the talent, capability and culture of BHP support the long-term
delivery of our strategy
92 BHP Annual Report 2025
Skills and attributes
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.
8
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.
9
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.
7
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.
9
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.
8
Technology
Recent experience and expertise with the development, selection,
and implementation of leading and business transforming technology
and innovation and responding to digital disruption.
7
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.
7
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.
6
Sustainability and decarbonisation transition
Understanding of and experience with the identification and
management of threats and opportunities related to sustainability
and decarbonisation transition.
7
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.
7
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.
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 above.
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 summarised
in OFR 9.5 and available at bhp.com/careers/inclusion-diversity
In April 2025, we achieved our aspirational goal to achieve gender
balance within our employee workforce globally by CY2025. 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.
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 FY2025 Progress in FY2025
Achieve gender-balanced
representation for the employee
workforce to 40 per cent by the end
of FY2025.
Achieved in April 2025.
As at the end of FY2025, our
employee workforce is gender
balanced with 41.3 per cent women.
Maintain gender-balanced
representation for the Board and senior
executives (defined as ELT and direct
reports to the ELT in grade 15 and
above roles).
Our Board continued to be gender
balanced in FY2025.
Our senior executive ranks remain
consistent and represent 41.3 per cent
women in FY2025.
For more information on our focus areas for diversity during FY2025 and
the respective proportions of men and women on the Board, in senior
executive positions and across the employee workforce refer to OFR 9.5
More diversity data is available in the BHP ESG Standards and
Databook 2025 available at bhp.com/ESGSD2025
93
Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Corporate Governance Statement continued
The Board’s composition reflects gender balance and a diversity
of experience, education and geographic background.
As at 30 June 2025, 44 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.
Tenure
44%
22%
33%
0–2 years
2–4 years
5+ years
Region of nationality
Australia/NZ
Europe/UK
North America
Gender diversity
Male
Female
56%
44%
11%
33%
56%
Board tenure and diversity
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 FY2025, 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 FY2025.
5. Board Committees
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 FY2025.
The Charters are available at bhp.com/governance
BHP’s Board and Committee governance structure facilitates a considered
and integrated approach on key matters, for example:
– Climate change is a Board-level issue. The Board is responsible for the
governance and oversight of climate change issues, including in relation
to our strategic approach, risk management and public disclosures.
The Board approves significant social, community and sustainability
policies, including those related to climate change and public sustainability
goals and targets, and oversees performance against our strategy, goals
and targets. The Board is supported by each of its Committees:
– The Nomination and Governance Committee reviews and makes
recommendations to the Board on the Group’s significant social,
community and sustainability policies, including those related
to climate change. The Committee also reviews and makes
recommendations to the Board on the Group’s public sustainability
targets and goals.
– The Risk and Audit Committee is responsible for assisting the Board
in overseeing and reviewing emerging and principal risks facing the
Group, including climate risks. The Risk and Audit Committee also
reviews and recommends to the Board public financial disclosures
regarding sustainability matters.
– The Sustainability Committee reviews and advises the Board on the
adequacy of the Group’s governance and performance in relation to
climate matters. The Committee also reviews and recommends to
the Board disclosures regarding sustainability matters in the Annual
Report and other public documents related to the Group’s reporting
on climate matters.
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 2025. 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 FY2025, an internal evaluation was conducted with the assistance
of external service provider, Lintstock. An external Board evaluation
is conducted approximately every three years and was last conducted
in FY2023.
94 BHP Annual Report 2025
– The People and Remuneration Committee is responsible for
reviewing and recommending to the Board for approval of
performance measures and performance outcomes against those
performance measures for the ELT. In doing so, the Committee
considers recommendations from the Sustainability Committee
in relation to climate measures.
– Sexual harassment is a Board-level issue, supported by the Risk
and Audit Committee on the risk and compliance aspects and the
Sustainability Committee on the safety and operational aspects
and security controls.
– Technology and cybersecurity risk (including artificial intelligence)
are Board-level issues, supported by the Risk and Audit Committee,
which reviews emerging and principal risks facing the Group, including
cybersecurity risk and the Sustainability Committee, which reviews the
current and planned use of technology to improve safety.
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 FY2025 refer to
Directors’ Report 2
5.1 Nomination and Governance Committee
Members
Ross McEwan (Chair from 31 March 2025), Ken MacKenzie (Chair until
31 March 2025), 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:
– significant social, community and sustainability policies, including
those related to climate change, industry associations and
charitable contributions
– public sustainability targets and goals
5.2 Risk and Audit Committee
Members
Michelle Hinchliffe (Chair), Xiaoqun Clever-Steg, Don Lindsay,
Ross McEwan (until 31 March 2025), 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.
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, 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), Ross McEwan (until 31 March 2025),
Catherine Tanna, 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
95
Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
6. Management
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
Edgar Basto Caroline Cox Brandon Craig
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).
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 and Investigations, Compliance
and Human Rights, Global Corporate Affairs and
Communications and Sustainability and Social Value.
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 (now Herbert Smith Freehills Kramer).
President Americas
(BSc Engineering (Mechanical), MBL)
Brandon Craig joined BHP in 1999 and was appointed
President of BHP Americas, effective 1 March 2024.
Brandon is responsible for BHP’s copper operations
in Chile, joint venture interests in the Americas and
potash operations in Canada. Immediately prior to his
appointment as President Americas, Brandon was
Asset President for BHP’s iron ore business in Western
Australia. Brandon’s expertise with BHP extends
more than 20 years, holding various leadership roles
spanning the fields of maintenance, marketing and
human resources.
Vandita
Pant
Catherine
Raw
Geraldine
Slattery
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 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.
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,
mergers and acquisitions and BHP Ventures. 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.
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 operations
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, including as
Vice President Supply (Petroleum) and Asset President
Conventional (Petroleum).
Ragnar Udd
Johan
van Jaarsveld Jad Vodopija
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.
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, Innovation, Value
Engineering and the Centres of Excellence for
Projects, Maintenance, Engineering and Resources
as well as legacy assets. 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.
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.
Corporate Governance Statement continued
96 BHP Annual Report 2025
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.
Senior management succession is viewed from a five-year perspective
that 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.
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 FY2025. For the CEO, 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.
7. Shareholders and reporting
7.1 Shareholder and stakeholder engagement
BHP shareholder engagement practices
BHP engages regularly with our 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 communicate with us and our registrar electronically.
Key activities in BHP’s investor engagement program include:
– BHP’s Annual General Meeting
– release of BHP’s Annual Report concurrently with annual results
– release of BHP’s half-year and full-year financial results
– media and analyst calls with the CEO and CFO following the
release of BHP’s full-year and half-year financial results
– quarterly production and operational updates via BHP’s
operational reviews
– investor site tours at our assets and investor briefings on
key topics
– regular engagement with institutional shareholders,
investor representative organisations, proxy advisers and
retail shareholders
– responding to shareholder and debt investor queries
– maintenance of the company’s website at bhp.com which
contains our exchange announcements and media releases
and information on our operations, governance policies,
dividend distribution, debt investment and social value and
sustainability initiatives
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.
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.
Shareholder engagement practices
97Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
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 FY2025 included Copper South
Australia (August 2024), BMA (October 2024), legacy assets
and Resolution Copper (April 2025) and customer site visits
(June 2025). 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.
In FY2024, we completed an inaugural assessment of the
health of our relationships with a range of our Indigenous
partners in Australia, Canada and Chile and reported the
relationship health assessment results in our 2024 Annual
Report. We plan to report every three years on the health of
our relationships with Indigenous peoples, with the next report
scheduled for FY2027.
The Chair and CEO met with the First Nations Heritage Protection
Alliance (FNHPA) in FY2025 to discuss key cultural heritage
and Indigenous engagement focus areas and initiatives for
BHP and FNHPA.
During FY2025, we conducted community perception research
across our operated assets to gauge community sentiment in
the local communities, including Indigenous peoples, where
we operate. The results of the research are included in the
Community section at OFR 9.11.
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 June 2025, the Board participated in customer site visits.
The site visits provided opportunities 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-events.
In FY2025, this included the Bank of America 2025 Metals
Mining and Steel Conference, BMO Global Metals, Mining
& Critical Minerals Conference and Chilean copper site tour.
Events
Various events are hosted throughout the year, such as
retail shareholder events in Australia and the UK, the AGM,
one-on-one meetings and receptions hosted by the Board
and Chair hosted to provide opportunities for the Board
to engage with a range of partners and stakeholders,
including government officials, community members,
Traditional Owners and other Indigenous partners and
non-government organisations.
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 Market Disclosure and
Communications Policy was updated in FY2025 with effect from 1 October
2024. 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 (such as the prospectus for the Euro or Australian Medium-Term
Notes) and Annual Report documents, which must comply with relevant
regulatory requirements.
More information about these verification processes can be found in
the Disclosure Controls for Periodic Disclosure document available
at bhp.com/governance
8. Culture and conduct
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. During FY2025,
we reviewed and simplified Our Code of Conduct to make sure it remains
relevant to the external environment and our business context. The Board
approved Our Code of Conduct in December 2024 and it became effective
in March 2025.
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 and
our commitment against corruption refer to OFR 9.7
Our Code of Conduct is available at
bhp.com/about/operating-ethically/our-code/
Corporate Governance Statement continued
98 BHP Annual Report 2025
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 9.7
More information on ethics and business conduct is available at
bhp.com/ethics
9. Risk management and assurance
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 7 and OFR 11.
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 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 FY2025, 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 then
communicated to the Board through the report-out process.
During FY2025, 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 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 FY2025, 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 7 and OFR 11.
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 FY2025 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:
– reviewing the terms of engagement of the External Auditor
– considering the external audit plan, in particular to gain assurance that
it is tailored to reflect changes in circumstances from the prior year and
reviewing the plan during the audit engagement
– meeting with the audit partners, particularly the lead audit engagement
partners, throughout the year and without management present
– discussing with the audit engagement partners the skills and experience
of the broader audit team
– considering the quality of the External Auditor’s performance following
the completion of the audit
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.
99Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
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.
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:
– Audit services – work that constitutes the agreed scope of the statutory
audit and includes the statutory audits of BHP and its entities (including
interim reviews). The RAC monitors the audit services engagements and
if necessary, approves any changes in terms and conditions resulting
from changes in audit scope, Group structure or other relevant events.
– Audit-related and other assurance services – work that is outside the
scope of the statutory audit but is consistent with the role of the external
statutory auditor. This category includes work that is reasonably related
to the performance of an audit or review and is a logical extension of
the audit or review scope, is of an assurance or compliance nature and
is work that the external auditors must or are best placed to undertake
and is permissible under the relevant applicable standard.
– Tax services – identification of public subsidies and tax incentives and
support regarding tax inspections by tax authorities, but only when
support from the external auditor or audit firm is required by law.
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 2025 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 FY2025 for audit and other
services were US$14.753 million, of which 74 per cent comprised audit
fees (including in relation to Sarbanes-Oxley Act of 2002 (SOX) matters),
12 per cent for audit-related fees and 14 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’.
Our 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 Controls – Integrated Framework (2013),
issued by the Committee of the Sponsoring Organizations of the Treadway
Commission. Based on this evaluation, management concluded that
internal control over financial reporting was effective as at 30 June 2025.
There were no material weaknesses in BHP’s internal controls over
financial reporting identified by management as at 30 June 2025.
BHP has engaged independent registered public accounting firm, Ernst
& Young, 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 FY2025 that materially affected or were
reasonably likely to materially affect our internal control over financial
reporting. During FY2025, the RAC reviewed our compliance with the
obligations imposed by SOX, including evaluating and documenting
internal controls as required by section 404 of SOX.
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 2025. 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 2025,
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.
10. US requirements
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 New York Stock Exchange (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:
Rule 10A-3 of the Exchange Act requires NYSE-listed companies
to ensure their audit committees are directly responsible for the
appointment, compensation, retention and oversight of the work of the
External Auditor unless the company’s governing law or documents or
other home country legal requirements require or permit shareholders
to ultimately vote on or approve these matters. Under the terms of
our Constitution, our shareholders are ultimately responsible for the
appointment and retention of the External Auditor and are required to
vote on the appointment of the External Auditor from time to time (as
required under Australian law). The RAC remains directly responsible
for the compensation and oversight of the work of the External Auditor.
Under Section 303A.08 of the NYSE Listed Company Manual, shareholders
must be given the opportunity to vote on all equity-compensation plans
and material revisions thereto, with certain exemptions. Under Australian
law, BHP Group Limited is not required to provide for shareholder votes on
all equity-compensation plans or revisions thereto. Shareholder approval
is required for issues of shares to Directors and accordingly is sought only
for certain incentive awards to the CEO. The Remuneration Report voted
on by shareholders at the Annual General Meeting describes Board and
executive remuneration. All incentive programs offered to the Board and/or
Executives are intended to comply with our remuneration framework.
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
applicable insider trading laws, rules and regulations. The Securities
Dealing policy was updated in FY2025 with effect from 1 October 2024.
The Securities Dealing Policy is available at bhp.com/governance
Corporate Governance Statement continued
100 BHP Annual Report 2025
The information presented by the Directors in this Directors’ Report
relates to BHP Group Limited and its subsidiaries. The Operating and
Financial Review (OFR), the Remuneration Report and the 'Lead Auditor's
Independence Declaration' are incorporated by reference into and form
part of this Directors’ Report.
1. Review of operations, principal activities
and state of affairs
A review of the operations of BHP during FY2025, the results of those
operations during FY2025, the expected results of those operations in
future financial years and information on our financial position are set out
in the OFR 1–7, 9 and 11. Information on the likely developments in BHP’s
operations in future years and the expected results of those operations
also appears in that section.
We have excluded certain information from the OFR, to the extent
permitted by Australian law, on the basis that such information relates
to impending developments or matters in the course of negotiation and
disclosure would be seriously prejudicial to the interests of BHP. This is
because such disclosure could be misleading due to the fact it is premature
or preliminary in nature, relates to commercially sensitive contracts, would
undermine confidentiality between BHP and our suppliers and clients, or
would otherwise unreasonably damage BHP. The categories of information
omitted include forward-looking estimates and projections prepared for
internal management purposes, information regarding BHP's assets and
projects that is developing and susceptible to change, and information
relating to commercial contracts and pricing modules.
Our principal activities, including significant changes in the nature
of BHP’s principal activities during FY2025 are outlined in OFR 1–4.
There were no significant changes in BHP’s state of affairs that
occurred during FY2025 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 FY2025 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.
2. Directors
The Directors who served at any time during FY2025 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.
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 FY2025, the Board met
14 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 FY2025
Board
Risk and Audit
Committee
Nomination and
Governance
Committee
People and
Remuneration
Committee
Sustainability
Committee
Attended Held
1
Attended Held
1
Attended Held
1
Attended Held
1
Attended Held
1
Xiaoqun Clever-Steg 14 14 8 8
Gary Goldberg 14 14 5 5 5 5
Mike Henry 14 14
Michelle Hinchliffe 14 14 8 8 5 5
Don Lindsay 13 14 8 8 5 5
Ken MacKenzie
2
11 11 4 4
Ross McEwan
3
14 14 7 7 1 1 3 3
Christine O’Reilly 14 14 8 8 5 5 4 4
Catherine Tanna 14 14 4 4 4 4 5 5
Dion Weisler 13 14 3 4 4 5
1. The number of meetings held during the time the Director was a member of the Board or relevant Committee.
2. Ken MacKenzie served as a Non-executive Director from 22 September 2016 and Chair of the Board from 1 September 2017 and Chair of the Nomination and Governance Committee until
his retirement on 31 March 2025.
3. Ross McEwan was appointed as Chair of the Board and Chair of the Nomination and Governance Committee on 31 March 2025 and was a member of the Risk and Audit and People and
Remuneration Committees until 31 March 2025.
Directors’ Report
101Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
3. Share interests
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 2025.
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 held
1
Xiaoqun Clever-Steg 10,000
Gary Goldberg 24,000
Mike Henry
2
478,035
Michelle Hinchliffe 12,330
Don Lindsay 10,000
Ross McEwan 45,000
Christine O’Reilly 10,620
Catherine Tanna 10,400
Dion Weisler 11,494
1. The number of shares held refers to shares held either directly, indirectly or beneficially
by Directors as at 19 August 2025. Where applicable, the information includes shares held
in the name of a spouse, superannuation fund, nominee and/or other controlled entities.
2. As at 19 August 2025, Mike Henry also holds 954,631 rights and options over shares
in BHP Group Limited. For more information refer to the Equity awards section in the
Remuneration Report.
Executive Key Management Personnel
Interests held by members of the Executive Key Management Personnel
(KMP) under employee equity plans as at 30 June 2025 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 the date of this
Directors’ Report by those senior executives who were Executive KMP
(other than the Executive Director) on that date.
Executive KMP member
Number
of shares held
1
Brandon Craig 36,585
Vandita Pant 211,935
Geraldine Slattery 238,028
1. The number of shares held refers to shares held either directly, indirectly or beneficially
as at 19 August 2025. Where applicable, the information includes shares held in the name
of a spouse, superannuation fund, nominee and/or other controlled entities.
4. Share capital and buy-back programs
During FY2025, 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 FY2025, no shares were purchased on-market for the
Employee Share Ownership Plan Trusts.
Directors’ Report continued
As at the date of this Directors’ Report, there were 15,469,747 unvested
equity awards outstanding in relation to BHP Group Limited ordinary shares
held by 25,322 holders. The expiry dates of these unvested equity awards
range between August 2025 and August 2029 and there is no exercise
price. 4,461,418 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 FY2025. No options over unissued shares or unissued
interests in BHP have been granted during or since the end of FY2025 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 FY2025.
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 FY2025 refer to Financial Statements
note 17 ‘Share capital’.
5. Group Company Secretary
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.
6. Indemnities and insurance
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$12,447,150 excluding taxes during FY2025.
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 FY2025.
102 BH P Annual Report 2025
7. Dividends
A final dividend of 60 US cents per share will be paid on 25 September
2025, resulting in total cash dividends determined in respect of FY2025 of
110 US cents per share.
For information on the dividends paid refer to Financial Statements
note 19 'Dividends'
8. Auditors
A copy of the declaration given by our External Auditor to the Directors in
relation to the auditors’ compliance with the independence requirements
of the Australian Corporations Act 2001 and the Professional Code of
Conduct for External Auditors is set out in Financial Statements 4.
No current Officer of BHP has held the role of director or partner of the
Group’s current External Auditor.
9. Non-audit services
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
10. Exploration, research and development
Companies within the Group carry out exploration and research and
development necessary to support their activities.
For more information refer to OFR 6 ‘Our assets’, OFR 12
‘Performance by commodity’ and Additional information 6
‘Mineral Resources and Ore Reserves’
11. ASIC Instrument 2016/191
BHP Group Limited is an entity to which the Australian Securities and
Investments Commission (ASIC) Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191 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 2016/191.
12. Proceedings on behalf of
BHP Group Limited
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.
13. Performance in relation to
environmental regulation
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 9.6, 8, 9.9
For the purposes of section 299(1)(f) of the Australian Corporations Act
2001, in FY2025 BHP was levied seven fines in relation to environmental
laws and regulations at our operated assets, the total amount payable
being US$8,065,962.
14. Additional information
BHP Group Limited has a branch registered in the United Kingdom.
The Group, through various subsidiaries, has also established branches
in a number of other countries.
The Directors’ Report is approved in accordance with a resolution of
the Board.
Ross McEwan
Chair
Dated: 19 August 2025
Mike Henry
Chief Executive Officer
103Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Letter from the People and Remuneration Committee Chair
Dear Shareholders,
I am pleased to provide BHP’s Remuneration
Report for FY2025.
A strong year of safety, operational
and financial performance
We delivered a strong year of safety, operational
and financial performance in FY2025.
Nothing matters more than the safety of our
people. I am pleased to report that our key safety
measures improved in FY2025, underpinned by
strong safety fundamentals.
It was also a strong year of operational
performance at BHP which generated significant
cash flow. We have determined dividends totalling
US$1.10 a share for the year. This represents a
total distribution to shareholders of US$5.6 billion
and more than US$50 billion in cash dividends
to our shareholders over the past five years.
Our remuneration framework
continues to serve us well
The People and Remuneration Committee
(Committee) continues to oversee the Group’s
people and culture strategy and its alignment
with BHP’s Purpose, Values and performance.
Our remuneration framework is designed to
support the successful delivery of our strategy,
drive the right behaviours for a thriving and
performance-oriented culture and incentivise
long-term value creation. We are a global
company that seeks to be competitive so
that we can attract and retain the best talent.
BHP’s executive remuneration framework provides
a mix of fixed and variable remuneration across
different time horizons to balance the achievement
of near-term strategic deliverables with longer-term
objectives. Our remuneration framework seeks
to align remuneration outcomes with shareholder
value creation and performance on financial,
Group and personal and safety and sustainability
measures, including climate change. There are
three components of our executive remuneration
framework at BHP: fixed remuneration, the Cash
and Deferred Plan (CDP) and the Long Term
Incentive Plan (LTIP). Our higher weighting on
CDP (relative to our LTIP) results in key metrics,
such as fatalities and climate change in the CDP,
having a proportionally significant impact on
executive remuneration outcomes.
Our framework has received strong support
from our shareholders since it was introduced.
In FY2025, I had the pleasure of meeting with
employees covering our operations and offices,
and shareholders and investors covering
Australia, UK, US and Asia, representing a
significant proportion of our issued share capital.
These discussions reinforced that the focus of
our remuneration framework on driving financial,
safety and sustainability performance remains
the right focus areas for BHP.
FY2025 CDP outcomes
The Committee assessed the Chief Executive
Officer (CEO) and other Executive key
management personnel’s (KMP) performance
against the CDP scorecard elements. For the
CEO, this resulted in a FY2025 CDP outcome
of 110 per cent against a target of 100 per cent.
CDP outcomes are assessed annually
against a balanced scorecard comprising
safety and sustainability (S&S), financial and
Group and personal performance measures
(comprising executive-led enterprise-wide
strategic deliverables).
The FY2025 outcome for S&S measures for the
CEO was 34 per cent out of a target of 25 per cent.
These metrics include a 10 per cent measure
for significant health, safety, environment and
community events and the outcome reflects a year
where we had no fatalities and strong progress
on our Fatality Elimination Program. We have
had a 10 per cent climate change measure in
place since FY2020. This is a measure of climate
change performance over the longer term and
we remain on track to meet our operational
greenhouse gas emissions target (Scopes 1 and 2)
by FY2030. Indigenous partnerships are the third
key aspect of our S&S measures and this year
saw record Indigenous procurement spend for the
second year in a row.
The FY2025 outcome for financial measures for the
CEO was 53 per cent out of a target of 50 per cent.
Underlying Return on Capital Employed (ROCE)
is the financial measure used that assesses
our company’s profitability and effective use
of capital. Pleasingly, in FY2025, we delivered
record copper production, the highest production
levels in 17 years at Escondida, record iron ore
production for the third consecutive year and a lift
in steelmaking coal production, despite significant
adverse weather events affecting production.
The FY2025 outcome for Group and personal
measures for the CEO was 23 per cent out of a
target of 25 per cent. These measures included
people, performance and portfolio projects and
initiatives. We pride ourselves on capital delivery.
Disappointingly, in July 2025 we provided an
update on the cost and schedule estimates for
Jansen Stage 1. We estimate capital expenditure
to be in the range of US$7.0 billion to US$7.4 billion
(including contingencies), versus our original
estimate of US$5.7 billion, and first production
to revert to the original schedule of mid-CY2027.
The CDP scorecard performance assessment
for the CEO, together with the Chief Financial
Officer (CFO) and President Americas, included
consideration of these matters when determining
their CDP outcomes. It has also been reflected in
the outcomes for other Executive Leadership Team
(ELT) members, senior executives and employees
with accountability for Jansen.
For other Executive KMP, FY2025 CDP outcomes
resulted in, on average, above target outcomes.
2020 LTIP award
The LTIP seeks to reward sustained, long-term
performance and growth aligned with BHP’s
values and shareholder value creation. The
performance period for the 2020 LTIP award
concluded on 30 June 2025. The vesting outcome
was 33 per cent based on total shareholder return
performance of 85 per cent for BHP over the
five-year period.
Holistic review of performance
over a five-year period
An important aspect of the CDP and LTIP is that
before vesting of the five-year CDP and LTIP
awards each year the Committee undertakes
a holistic review of performance. This extra step
reflects a long-term outlook and focus on driving
shareholder value. In August 2025, when reviewing
the vesting of the FY2020 CDP five-year award and
2020 LTIP award, the Committee considered BHP’s
performance on safety, sustainability (including
climate change), financial, corporate governance
and conduct over the five-year performance period
from 1 July 2020 to 30 June 2025. As a Committee
we are satisfied the outcomes are fair and reflect
the shareholder experience during the period.
Looking ahead
Talent markets continue to be highly competitive.
It is critical we reward our people appropriately
to enable BHP to deliver on our strategy.
When we benchmark our Executive KMP’s
remuneration, we compare against roles in
mining and resource companies and have regard
for globally competitive companies of similar
complexity, reach and scale. These are the
companies that BHP is competing with for talent.
For FY2026, the Board has determined the CEO’s
base salary will increase by four per cent, effective
1 September 2025. In conducting the annual
review of the CEO’s base salary and total target
remuneration, to ensure his package remains
appropriate and market competitive, we considered
the CEO’s ongoing performance, external
benchmark data, and market demand for senior
executive talent. The increase is aligned to the
average FY2025 salary increase applied for other
BHP employees. During FY2025, the Committee
reviewed other Executive KMP remuneration and, to
reflect their ongoing performance and development
in their roles since their appointment in early 2024,
determined an increase of eight per cent for the CFO
and 15 per cent for the President Americas, effective
1 January 2025. For FY2026, the Committee
determined an increase of four per cent for the
President Australia, effective 1 September 2025.
For FY2026 there are no changes to the Group
Chair and Non-executive Director fees.
Our people
We strive to offer an engaging and supportive
workplace, which empowers our people to find
safer and more productive ways of working.
This year we achieved our long-term female
representation aspirational goal and exceeded
our Indigenous workforce participation targets
in Australia, Canada and Chile. The efforts
that have underpinned this achievement have
made BHP a safer, more productive, and better
performing business.
The Committee monitored culture progress 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.
Again, thank you to the shareholders, advisers and
employees I met with during the year. I took away
a lot from these discussions and look forward to
continuing this engagement. As always, I welcome
shareholder feedback and comments on our
FY2025 Remuneration Report.
Christine O’Reilly
Chair, People and Remuneration Committee
The abbreviations used in the following
pages are listed on page 116
104 BHP Annual Report 2025
Remuneration Report
FY2025 CEO CDP outcome
BHP TSR outperformed the 50th percentiles
of the Sector Peer group by 8% and the MSCI
World Index by 14%
33%
LTIP vesting in FY2025
Policy requirement:
5x base salary
Actual
:
CEO MSR
6.6X
base
salary
Key
performance
Total shareholder
return (5 year)
85%
Return on Capital
Employed
20.6%
Dividends per
share (USD)
110USc
Remuneration
outcomes
Remuneration
framework
Remuneration at a glance
Average FY2025 other
Executive KMP CDP outcomes
Safety and sustainability
Financial
Group and personal
Target
Actual
25% 50%
34%
25%
54% 26%
Actual
Target
25% 50%
34%
25%
53% 23%
FY2025 FY2026 FY2027 FY2028 FY2029 FY2030
Fixed remuneration
(Base salary, pension
contributions and other benefits)
CDP cash
1 year
performance
period
(1 Jul 2024 to
30 Jun 2025)
CDP Deferred Rights
(2 Year)
2 Year vesting period
Vesting subject to service
condition
(1 Jul 2025 to 30 Jun 2027)
CDP Deferred Rights
(5 Year)
5 Year vesting period
Vesting subject to a service condition + a holistic
review of performance at the end of the vesting period
(1 Jul 2025 to 30 Jun 2030)
LTIP
Performance Rights
5 year performance period
Vesting subject to a TSR performance condition,
service condition + a holistic review of performance
at the end of the vesting period
(1 Jul 2025 to 30 Jun 2030)
MSR
BHP’s Minimum Shareholding Requirements (MSR) help to align the interests of the KMP and shareholders.
The CEO is required to achieve a MSR of five times annual pre-tax base salary. Other Executive KMP
are required to achieve a MSR of three times annual pre-tax base salary.
Cash paid Vesting confirmed
Vesting underpinned by a holistic review of safety, sustainability, financials,
corporate governance and conduct at the end of the five-year period
paid and declared
in respect of FY2025
105Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
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 are:
Non-executive Directors Executive KMP
Current Term Former Term Current KMP position Term
Ross McEwan Full year
Commenced as
Chair 31 March 2025
Ken MacKenzie Retired
31 March 2025
Mike Henry Chief Executive
Officer and
Executive Director
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
Dion Weisler Full year
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.
Remuneration Report continued
Market
competitive
To attract, motivate
and retain highly
skilled executives
Supports
strategy delivery
To ensure focus on
outcomes that deliver on
BHP’s strategy and purpose
Values-aligned
To be transparent and
foster a culture aligned to
BHP’s values, behaviours
and risk appetite
Rewards
outperformance
To drive long-term
shareholder
wealth creation
How our remuneration
framework is set
106 BHP Annual Report 2025
Board
Oversees the remuneration structure for the Group (including the CEO).
Approves the remuneration framework for Group Chair, CEO and other members of the
ELT on recommendation from the People and Remuneration Committee.
Sustainability
Committee
Provides recommendations to the
Committee in relation to health, safety,
environment, climate and community
performance measures and outcomes
for the CEO and other members of the
ELT, including Executive KMP.
People and Remuneration
Committee
Supports and advises the Board on people and
remuneration matters, including oversight of BHP’s people
and culture strategy.
Makes recommendations to the Board on the remuneration
framework for the Group Chair, CEO and other members of
the ELT, including Executive KMP.
Risk and Audit
Committee
Provides feedback to the Committee
in relation to financial performance
measures and outcomes for the
CEO and other members of the ELT,
including Executive KMP.
Independent remuneration advisers
May be appointed and instructed to advise on the Group’s remuneration strategy, framework and policies.
PwC was appointed to act as an independent remuneration adviser in FY2016 and is currently the only remuneration adviser appointed by the Committee. In that
capacity, PwC may provide remuneration recommendations in relation to our KMP. PwC did not provide any remuneration recommendations in FY2025.
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, such as
continued service, alignment to shareholder value creation and financial,
safety and sustainability (including climate change) performance.
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?
This is the 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 conditions.
How is it delivered?
Base salary
Pension contributions
(10% base salary)
Other benefits
(notional 10% base salary)
The CDP award is delivered in three
equal components:
– CDP annual cash
– CDP Deferred Rights (2 Year)
– CDP Deferred Rights (5 Year)
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,
and encourages retention. It also
aligns behaviours towards Our Values
and to shareholder outcomes.
Rewards sustained, long-term
performance and growth aligned
with Our Values and creation of
shareholder value.
How does it link
to performance?
Fixed remuneration reflects the
global scope and complexity of the
role. It accounts for the location,
skills, performance, qualifications
and experience of the individual.
Fixed remuneration is reviewed
annually by the Committee to
ensure it remains appropriate
and competitive with benchmark
data from BHP’s independent
remuneration advisers as required.
Fixed remuneration increases are
normally aligned to performance,
significant development, changes
in accountabilities and/or external
market movements. They normally
also consider movements applied
to the wider BHP workforce.
Our approach to setting and
benchmarking fixed remuneration,
along with any changes for FY2026,
is set out below.
CDP award outcomes for each
Executive KMP are determined by the
annual assessment of performance
against a balanced scorecard of
metrics linked to the execution of
business strategy weighted as follows:
– 25% Safety and sustainability
(including climate change)
– 50% Financial
– 25% Group and personal measures
One third of the CDP award is paid in
cash and is structured to reward current
year performance in the short term.
The remaining two thirds of the
CDP are deferred into two equity
awards of equal value to encourage
retention and sustained medium and
longer-term performance over two
and five years.
The vesting of the CDP equity awards
are subject to a service condition and
the CDP Deferred Rights (5 Year) is
also underpinned by a holistic review
of performance at the end of the
vesting period, details of which are
outlined on page 108.
Under the LTIP, BHP’s performance
is assessed against the relative TSR
of two comparator groups over the
five-year period to provide an objective
measure of performance.
TSR provides a valuable comparative,
external market performance
benchmark. It also provides a direct
link between Executive KMP reward
and shareholder returns.
Vesting of LTIP Performance Rights
requires BHP’s TSR performance to
meet specific hurdles as outlined on
page 108.
LTIP Performance Rights are also
subject to a five-year service condition
and are underpinned by a holistic
review of performance at the end of
the vesting period, details of which are
outlined on page 108.
Paying competitively
BHP is a global company with employees around the world,
including in Australia, Canada, Chile and the United States.
BHP has a diverse and mobile workforce and we recognise the importance
of offering competitive and equitable remuneration to attract, motivate and
retain the talent required to deliver on our strategy.
To ensure our reward practices remain fit for purpose in a dynamic
and highly competitive global talent market, we apply a disciplined and
data-driven approach. This includes benchmarking our Executive KMP
remuneration against comparable positions in 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.
During FY2025, the Committee reviewed other Executive KMP
remuneration and to reflect their ongoing performance and development
in their roles since their appointment in early 2024, determined an increase
of eight per cent for the CFO and 15 per cent for the President Americas
effective 1 January 2025. For FY2026, the Committee determined
an increase of four per cent for the President Australia, effective
1 September 2025.
For information on where we operate refer to OFR 2.2 of this Report
107
Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
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
vesting period
– The CDP performance period is one year.
– For the FY2025 CDP, the performance period is 1 July 2024
to 30 June 2025.
– CDP cash is paid annually following the end of the
performance period.
– CDP Deferred Rights (2 Year) are rights to receive BHP
shares subject to a two-year service condition from 1 July
2025 to 30 June 2027.
– CDP Deferred Rights (5 Year) are rights to receive BHP
shares subject to a five-year service condition from 1 July
2025 to 30 June 2030 and a holistic review of performance
over the prior five years as an underpin to vesting.
– The LTIP performance period is five years.
– For the 2025 LTIP, the performance period is 1 July 2025
to 30 June 2030, 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 FY2025 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 2025.
– 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 2025 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 2025.
Performance
conditions and
assessment
Towards the end of the annual performance period, a formal
assessment of the Executive KMP’s CDP scorecard is
conducted to determine the CDP award outcome. The Board
approves the CEO’s CDP award outcome and the Committee
approves CDP award outcomes for the other Executive KMP.
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.
Vesting of 2025 LTIP Performance Rights will depend on
BHP’s TSR compared to the following benchmarks:
– 67% for relative TSR performance compared to the MSCI
World 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
The number of LTIP Performance Rights that vest, if any, will
be based on BHP’s TSR performance, compared to the Sector
TSR and World TSR over the performance period, as set out in
the following vesting schedule:
BHP’s TSR performance
% of the LTIP award
that will vest
Below the 50th percentile 0%
Equal to the 50th percentile 25%
Between the 50th percentile and
the weighted 80th percentile
Sliding scale between
25% and 100%
Equal to or exceeds the 80th
percentile (outperformance)
100%
An averaging period of six months is used in the TSR calculations.
If the TSR performance condition is not met, there is no retesting
and awards will lapse.
Vesting
– Vesting of CDP Deferred Rights is subject to the Executive
KMP’s continued employment with BHP until the vesting date.
– CDP Deferred Rights (5 Year) are 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 (DEPs) are
made on vesting of CDP Deferred Rights.
– The Committee retains discretion to settle CDP Deferred
Rights in cash.
– Vesting of LTIP Performance Rights is subject to the Executive
KMP’s continued employment with BHP until the vesting date
and TSR performance conditions.
– LTIP Performance Rights are 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. DEPs are made on vesting of LTIP Performance Rights.
– The Committee retains discretion to settle LTIP Performance
Rights in cash.
Holistic review of
performance as
an underpin to
vesting
Vesting of both 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 (for example, no material incidents, achievements against operational decarbonisation
plans, reduction in GHG emissions against BHP targets, etc)
– financial performance (including profitability, cash flow, balance sheet health, returns to shareholders, etc)
– broader factors such as corporate governance and the Executive KMP’s conduct
Remuneration Report continued
Key terms of our variable remuneration framework and equity plans
Our variable remuneration framework is designed to support BHP’s strategy and reward our people for successful strategy execution. The majority
of remuneration delivered through equity is ‘at risk’, reflecting our commitment to driving long-term growth, performance and value for shareholders.
The key terms of the FY2025 CDP and the 2025 LTIP are outlined below.
108 BHP Annual Report 2025
CDP LTIP
Cessation of
employment
Upon the cessation of Executive KMP employment, unless the Board determines otherwise, the following treatment applies:
– on resignation or termination for cause, all unvested CDP cash and Deferred Rights and LTIP Performance Rights lapse
– where employment ends due to death, serious injury, disability, CDP cash awards are pro-rated based on performance for that year,
and all unvested CDP Deferred Rights and LTIP Performance Rights vest
– where employment ends for any other reason (i.e. a ‘good leaver’), current year CDP cash awards and Deferred Rights (2 years) awards
are pro-rated based on performance for that year (and paid wholly in cash), all unvested CDP Deferred Rights (2 Year) will generally
remain on foot and subject to the original terms of the offer, and a pro-rated portion of unvested CDP Deferred Rights (5 Year) and
LTIP Performance Rights will generally remain on foot and subject to the original terms of the offer, and the remainder will lapse
Malus and
clawback
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 is required by either BHP or the CEO should they wish to terminate
employment. For other Executive KMP, BHP or the relevant Executive
KMP is required to provide six months’ notice should they wish to terminate
employment. 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).
Share ownership guidelines and MSR
Executive KMP are encouraged to hold shares in BHP over the long-term
and a minimum shareholding is required through the MSR. BHP’s share
ownership guidelines and the MSR help to align the interests of the KMP
and shareholders.
The CEO is required to achieve a MSR of five times annual pre-tax base
salary. Other Executive KMP are required to achieve a MSR of three times
annual pre-tax base salary. A two-year post-retirement shareholding
requirement for the CEO applies from the date of retirement, which will be
the lower of the CEO’s MSR or the CEO’s actual shareholding at the date
of retirement.
No Executive KMP sold or purchased shares during FY2025, other than sales
to satisfy tax obligations in connection with an employee equity award. At the
end of FY2025, the Executive KMP met their MSR, except for Brandon Craig,
as he was appointed to the ELT and Executive KMP on 1 March 2024.
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 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 is based on the fair value of the awards, which is
50 per cent of the face value of the CEO’s award (200 per cent of base
salary) and other Executive KMP awards (175 per cent of base salary).
The maximum LTIP value is based on the face value of the awards for
the CEO and other Executive KMP. The potential impact of future share
price movements is not included in the value of CDP or LTIP awards.
Target
Maximum
Minimum
100%
100% Base salary | 10% Pension | notional 10% Benefits
17% 23%
1
17%17%
26%
80% base salary 80% base salary 80% base salary
100% base salary
17% 17% 17% 32%
2
17%
120% base salary 120% base salary 120% base salary 200% base salary
Target
Maximum
Minimum
18% 18% 18%
18% 20%
1
18%18%
28%
2
18%
26%
100%
100% Base salary | 10% Pension | notional 10% Benefits
80% base salary 80% base salary 80% base salary 87.5% base salary
120% base salary 120% base salary 120% base salary 175% base salary
CEO % of total target remuneration
O
ther Executive KMP % of total target remuneration
Fixed remuneration
CDP cash
CDP Deferred Rights 2 Year
LTIP Performance RightsCDP Deferred Rights 5 Year
1. Fair value 2. Face value
109Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Remuneration Report continued
Performance
measure
Weighting
for FY2025 Performance outcome
CEO percentage
outcome
Safety and sustainability 25% 34%
Financial 50% 53%
Group and personal 25% 23%
Total 100%
110%
Remuneration for Executive KMP
FY2025 CDP performance outcomes
The Board and the Committee assessed the Executive KMP’s CDP outcomes in light of the Group’s performance in FY2025 and performance against
the measures in each Executive KMP CDP scorecard.
The level of performance for each scorecard measure is determined based on a range of:
– threshold – the minimum necessary to qualify for any reward outcome
– target – where the performance requirements are met
– maximum – where the performance requirements are significantly exceeded
Summary of CDP outcomes for the CEO (by measure)
For the CEO, the Board’s and the Committee’s assessment against the CDP scorecard measures resulted in a FY2025 CDP outcome of 110 per cent
against the target of 100 per cent (or 73 per cent against maximum). In July 2025, we provided an update on the cost and schedule estimates for Jansen
Stage 1. We estimate capital expenditure to be in the range of US$7.0 billion to US$7.4 billion, versus our original estimate of US$5.7 billion, and first
production to revert to the original schedule of mid-CY2027. Assessments for the CEO included consideration of these updates as part of his Group
and personal measures when determining his CDP outcome.
FY2025 CDP performance outcomes – CEO measures
Safety and sustainability
Scorecard targets Performance outcome
Elimination of significant harm
No significant (actual level 4) health, safety (including fatalities),
environment or community events during the year.
Completion of FY2025 Fatality Elimination Program deliverables and
development of asset-owned vehicle interaction improvement plans.
Outcome: Maximum
– There were no fatalities or other actual significant HSEC events during
FY2025 at our operated assets.
– All operated assets completed the deliverables required to achieve
a maximum outcome relating to the Fatality Elimination Program
and development of asset-owned vehicle interaction improvement plans.
Climate change
Reported Scopes 1 and 2 GHG emissions at our operated assets in
FY2025 are at 9.8 ktCO
2
-e.
Deliver FY2025 actions in the approved climate adaptation work program,
including progressing our nature-positive plans.
Outcome: Between target and maximum
– For FY2025, we bettered our operational GHG emissions scorecard target
by 1% (excluding our Western Australia Nickel operations which entered
temporary suspension in FY2025). Having reviewed actual production levels
at certain operated assets compared to budget targets, performance was
observed to be on target.
– All actions in the approved climate adaptation work program were delivered
during FY2025. While none of the Assets completed climate adaptation work
program deliverables required to achieve a maximum outcome, all required
actions to progress our nature-positive plans were delivered to achieve a
maximum outcome.
Indigenous partnerships
No significant (actual level 4) cultural heritage events during the year.
Achieve direct contracting spend with Indigenous, Traditional Owner and
First Nations suppliers of US$356 million.
Achieve regional Indigenous representation targets by end of FY2025.
Outcome: Maximum
– No significant cultural heritage incidents occurred during FY2025.
– Indigenous, Traditional Owner and First Nations vendor procurement
significantly exceeded the targets required to achieve a maximum outcome
with US$852 million in Indigenous procurement spend in FY2025.
– Our FY2025 overall regional Indigenous representation was at 9.3%,
which was above the target of 8.8%.
The total S&S measures for FY2025 for the CEO was 34% against the target of 25%.
Threshold 0% Target 100% Maximum 150%
110 BHP Annual Report 2025
Financial
ROCE
Target ROCE of 19.7%, with a threshold of 16.4% and a maximum of 22.8%.
ROCE is underlying profit after taxation (excluding after-taxation finance
costs and exceptional items) divided by average capital employed.
When assessing ROCE, adjustments are made to the outcome to
allow for changes in commodity prices, foreign exchange movements
and other material items outside the control of management (from the
levels assumed when setting the targets). This ensures the assessment
appropriately measures outcomes that are within the control and influence
of the Group and our executives. Of these adjustments, changes in
commodity prices have historically been the most material due to volatility
in prices and the impact on Group revenue and ROCE.
When setting the target ROCE, the Committee considers the upside
opportunities and downside risks inherent in BHP’s businesses, and what
outcome the Committee believes would be a level of performance that
shareholders would view positively. The maximum and threshold are an
appropriate range of ROCE outcomes which include an upper limit of
stretch outperformance that would represent the maximum CDP award,
and a lower limit of underperformance below which no CDP award should
be made. The performance range around target is subject to a greater level
of downside risk than there is upside opportunity, mainly due to physical
and regulatory asset constraints. Accordingly, the range between threshold
and target is somewhat greater than that between target and maximum.
For maximum, the Committee takes care not to create leveraged incentives
that encourage executives to push for short-term performance that goes
beyond our risk appetite and current operational capacity.
Outcome: Between target and maximum
ROCE of 20.6% was reported by BHP for FY2025. Adjusted for the factors
outlined below, ROCE is 20.0%, which is above target. The following adjustments
were made to ensure the outcomes appropriately reflect the performance of
management for the year:
– The full elimination of the impacts of movements in commodities prices and
exchange rates decreased ROCE by 0.3 percentage points.
– Adjustments for other items made to ensure the outcomes reflect the
performance of management for the year decreased ROCE by 0.3 percentage
points. This was mainly to ensure the basis of the CDP ROCE outcome was
the same as the basis upon which the ROCE target for FY2025 was set.
Having reviewed the FY2025 exceptional items (as described in Financial
Statements note 3 ‘Exceptional items’), the Committee determined these should
not be considered for the purposes of determining the FY2025 ROCE CDP
outcome and that no further action was required in respect of exceptional items.
The ROCE measure for FY2025 for the CEO was 53% against the target of 50%.
Group and personal
People
Year-on-year reduction in high potential injury frequency.
Increase female representation to 40% across the enterprise.
Increase BHP Employee Perception Survey engagement score.
Progress succession and development activities.
Outcome: Between target and maximum
– High potential injury frequency year-on-year reduced by 18% in FY2025
to 0.09.
– Female representation increased by 4% in FY2025 and finished the year at
41.3%, exceeding the FY2025 target and marking the achievement of BHP’s
long-term female representation aspirational goal.
– Employee Perception Survey engagement score improved in line with target.
– Succession and development activities completed in accordance
with expectations.
Performance
Improvement on Operational Excellence Index (OEI) Assessment
on Assessment (AoA) scores at operational sites.
Asset decarbonisation plans submitted to achieve at least or greater
emissions reductions than prior year.
Deliver the targeted outcome in the Brazil strategy.
Outcome: Target
– BHP Operating System (BOS) target achieved, with 90% of operational sites
improving on the OEI AoA score.
– Asset operational decarbonisation plans progressed, with positive steps
taken towards delivering operational emissions reductions.
– Significant progress made on the Brazil strategy, including a settlement
agreed with the Brazilian Public Authorities and a Liability Sharing Agreement
signed with Vale.
Portfolio
Maximum 15% capital growth across the major projects portfolio.
Minerals Americas and Copper South Australia growth projects to increase
projected copper equivalent production.
Refreshed Nickel strategy agreed.
Outcome: Between target and maximum
– Capital growth across the major projects portfolio kept to well below
the 15% target.
– Good progress made on copper growth pathways across Escondida, Spence
and Copper South Australia, and through entry into the Vicuña joint venture.
– Nickel strategy in place and progressing well.
The Group and personal measure for FY2025 for the CEO was 23% against the target of 25%. The assessment for the CEO included consideration of the
updates on Jansen Stage 1, as described on the prior page, as part of his Group and personal measures outcome.
Summary of outcomes for other Executive KMP
The FY2025 CDP target weightings and performance measures for
other Executive KMP ‘without regional responsibility’ are similar to those
of the CEO outlined above. For the other Executive KMP ‘with regional
responsibility’, their target weightings and performance measures vary
to reflect the focus required on both Group and regional measures.
The Group and personal measures for other Executive KMP is reflective of
their contribution to the delivery of projects and initiatives within the scope
of their role and the overall performance of the Group. The Committee
reviewed the performance of other Executive KMP against these
FY2025 measures and this assessment resulted in overall FY2025
CDP outcomes, each against the target of 100 per cent, of 110 per cent
for the CFO (or 73 per cent against maximum), 118 per cent for the
President Americas (or 79 per cent against maximum), and 115 per cent
for the President Australia (or 77 per cent against maximum). Cost and
schedule estimates for Jansen Stage 1 were updated in July 2025,
with capital expenditure estimated to be in the range of US$7.0 billion
to US$7.4 billion, versus our original estimate of US$5.7 billion, and
first production to revert to the original schedule of mid-CY2027.
Assessments for the CFO and President Americas included consideration
of these updates as part of their Group and personal measures outcome
when determining their CDP outcomes. It has also been reflected in the
outcomes for other ELT members, senior executives and employees with
accountability for Jansen.
The FY2025 CDP weightings and overall average outcomes against the
CDP scorecard for other Executive KMP are in the following diagram.
111Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Remuneration Report continued
FY2020 LTIP performance outcomes
What are the LTIP vesting conditions?
The five-year performance period for the 2020 LTIP Performance Rights
for relevant Executive KMP ended on 30 June 2025. Vesting is subject to
satisfaction of the service condition, the achievement of the relative TSR
performance conditions, underpinned by a holistic review of performance
at the end of the five-year vesting period and any discretion applied by
the Committee.
Why is relative TSR used as the performance condition?
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).
BHP only rewards above average performance against the Sector Group
TSR, weighted at 67 per cent and World TSR, weighted at 33 per cent. BHP’s
TSR performance is required to be at the 50th percentile of these comparator
groups for 25 per cent of the LTIP to vest. Outstanding performance and
Summary of outcomes for other Executive KMP
Performance
categories
Other Executive
KMP with region
responsibility
Other Executive
KMP without region
responsibility Performance outcome
Safety and sustainability
Group 12.5% 25%
Region 12.5% 0%
Financial
Group 25% 50%
Region 25% 0%
Group and personal
25% 25%
BHP
Minerals Australia
Minerals Americas
What is the outcome of the holistic review of performance
at the end of the five-year vesting period of the FY2020
CDP Deferred Rights and 2020 LTIP Performance Rights?
Vesting of both FY2020 CDP Deferred Rights and 2020 LTIP
Performance Rights are underpinned by 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 final 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
full vesting may occur when BHP’s TSR is at or above the 80th percentile
of Sector Group TSR and World TSR.
For the 2020 LTIP Performance Rights to vest in full, BHP’s TSR over
the five-year performance period from 1 July 2020 to 30 June 2025 must
have been at or exceeded the 80th percentile of the Sector Group TSR
and the World TSR.
What is BHP’s relative TSR performance outcome for
the 2020 LTIP?
BHP’s TSR performance was 85 per cent over the 2020 LTIP performance
period. This outcome is:
– Above the 50th percentile of the Sector Group TSR of 77 per cent, but
below the 80th percentile of the Sector Group TSR of 174 per cent, and
– Above the 50th percentile of the World TSR of 71 per cent, but below
the 80th percentile of the World TSR of 157 per cent.
This level of performance results in 33 per cent vesting for the 2020 LTIP
Performance Rights. The value of the CEO’s vested 2020 LTIP Performance
Rights is detailed in FY2025 remuneration received by the CEO.
The graph below shows BHP’s performance relative to comparator groups.
unexpected or unintended remuneration outcomes. The Committee
considers its discretion carefully each year ahead of the scheduled
vesting of CDP Deferred Rights and LTIP Performance Rights.
In respect of the vesting of the FY2020 CDP Deferred Rights and 2020 LTIP
Performance Rights, the Committee undertook a holistic review of performance
over the five-year period (from FY2021 to FY2025). 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 FY2020 CDP Deferred Rights and the 2020
LTIP Performance Rights, the Committee did not identify any reason
to exercise its downwards discretion.
BHP vs. Sector Group and MSCI World TSR over 2020 LTIP cycle
BHP TSR Sector Group 50th percentile TSR Sector Group 80th percentile TSR World 50th percentile TSR World 80th percentile TSR
TSR since 1 July 2020 (%)
Jun-2020
Jun-2021 Jun-2022 Jun-2023 Jun-2024
Jun-2025
BHP TSR Sector Group 50th percentile TSR Sector Group 80th percentile TSR World (MSCI) 50th percentile TSR World (MSCI) 80th percentile TSR
350%
300%
250%
200%
150%
100%
50%
0
Threshold 0% Target 100% Maximum 150%
112 BHP Annual Report 2025
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 FY2025 were A$45.95 and A$34.16, respectively.
FY2025 FY2024 FY2023 FY2022 FY2021
Share price at beginning of year (A$) 43.30 45.26 40.05 48.22 35.82
Share price at end of year (A$) 36.75 42.68 44.99 41.25 48.57
Dividends paid (A$) 1.90 2.35 3.92 10.18
1
2.07
Attributable profit (US$ million, as reported) 9,019 7,897 12,921 30,900 11,304
1. The FY2022 dividends paid includes A$5.38 in respect of the in-specie dividend associated with the merger of the Petroleum business with Woodside.
FY2025 remuneration received by the CEO
The table below is a voluntary non-statutory disclosure of the remuneration
received by the CEO during FY2025 and FY2024. This table is unaudited
and differs from the audited remuneration calculated in accordance with
the Australian Accounting Standards (refer to KMP remuneration table and
Financial Statements note 26 ‘Employee share ownership plans’). This table
aims to provide greater transparency for shareholders and reflect actual
remuneration received.
The difference between the disclosure in the table below and the
remuneration disclosed in KMP remuneration table relates to the CDP and
LTIP awards. The remuneration calculated in accordance with Australian
Accounting Standards requires the fair value of the CDP and LTIP awards
to be calculated at the time of grant and to be amortised over the relevant
vesting periods regardless of the performance outcome. This may not reflect
what the executive receives.
US$(’000) FY2025 FY2024
Mike Henry Base salary 1,881 1,808
Benefits
1
54 35
Pension
2
188 181
CDP
3
4,965 3,113
LTIP
4
1,884 3,329
Total 8,972 8,466
1. Benefits are non-pensionable and include net movements in leave balances, private
health insurance, car parking, fringe benefits tax and personal tax return preparation in
required countries.
2. FY2025 and FY2024 pension contributions were provided based on 10 per cent of
base salary.
3. The values shown are CDP award outcomes earned based on performance against the
CDP scorecard during FY2025 and FY2024. The FY2025 CDP award will be provided one
third in cash in September 2025, one third in CDP Deferred Rights (2 Year) subject to a
service condition vesting at the end of FY2027, and one third in CDP Deferred Rights (5 Year)
subject to a service condition and a holistic review of performance as an underpin to vesting
at the end of FY2030. The FY2024 CDP award was provided on an equivalent basis.
4. The values shown are LTIP outcomes vested during FY2025 and FY2024 in respect of
LTIP Performance Rights granted in 2020 and 2019, respectively. Part of the LTIP outcome
for FY2024 LTIP relates to a period when the Mike Henry was President Operations Minerals
Australia and subject to different remuneration arrangements. The 2020 LTIP Performance
Rights value in FY2025 is an estimate calculated on the average share price for the month
of July 2025 (which will be updated in subsequent disclosures). The 2019 LTIP Performance
Rights value in FY2024 is an updated value from the 2024 Remuneration Report and is
calculated on the actual share price on the vesting date.
Remuneration for Non-executive Directors
Competitive fees and benefits are paid in order 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, the
economic environment 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.
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.
They must maintain at least that level of shareholding throughout their
tenure. At the end of FY2025, each Non-executive Director met the MSR.
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 the Group.
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.
FY2026 fees and allowances
A benchmarking assessment was undertaken during FY2025 and determined
that the base annual fees for the Chair and Non-executive Directors will not
increase in FY2026. It was also determined that there would be no change
to the fees for other Committee roles or other allowances.
The below table sets out the annualised total remuneration and total fixed
fees for FY2025 and FY2026.
Levels of fees and travel allowances
for Non-executive Directors (in US$) FY2025 FY2026
Base annual fee 175,000 175,000
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 27,5 00
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
Group Chair’s base annual fee 962,000 962,000
1. The travel time thresholds relate to a flight time in excess of three hours to travel to the
meeting location (i.e. one-way flight time). Only one travel allowance is paid per round trip.
113Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
Remuneration Report continued
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 FY2025. There were no transactions or loans between
Executive KMP (including their related parties) and the Group or any of our subsidiaries during FY2025.
Share-based payments – estimated value
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$
(‘000)
Short-term
benefits
Post-
employment
benefits
Share-based
payments
Name
Financial
year Base salary CDP cash
1
Other
benefits
2
Pension
CDP
Deferred Rights
(2 and 5Year)
LTIP
Performance
Rights Total reward
Mike Henry FY2025 1,881 1,655 54 188 2,608 2,123 8,509
FY2024 1,808 1,038 35 181 2,177 2,096 7,335
Brandon Craig FY2025 860 811 91 86 512 794 3,154
FY2024 267 173 406 27 33 254 1,16 0
Vandita Pant FY2025 1,060 933 67 106 1,298 773 4,237
FY2024 340 223 29 34 329 228 1,183
Geraldine Slattery FY2025 1,087 999 26 109 1,470 990 4,681
FY2024 1,013 592 323 101 1,182 1,049 4,260
Ceased as Executive KMP before FY2025
Edgar Basto FY2024 673 425 – 67 668 617 2,450
David Lamont FY2024 673 425 1 67 649 641 2,456
Ragnar Udd FY2024 665 431 48 67 644 575 2,430
1. The FY2025 CDP cash component will be paid in September 2025.
2. Other short-term benefits include non-monetary items such as health insurance, car parking, fringe benefits tax, relocation costs, and personal tax return preparation in required countries.
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 FY2025.
US$
(‘000) Short-term Post-employment
Name
Financial
year
Base and
committee fees
Other
benefits
1
Pension Total reward
Xiaoqun Clever-Steg FY2025 195 76 13 284
FY2024 188 77 13 278
Gary Goldberg FY2025 274 75 – 349
FY2024 284 99 – 383
Michelle Hinchliffe FY2025 259 75 – 334
FY2024 235 45 – 280
Don Lindsay FY2025 227 52 8 287
FY2024 38 – – 38
Ross McEwan FY2025 400 66 19 485
FY2024 51 45 4 100
Christine O’Reilly FY2025 266 51 5 322
FY2024 263 37 – 300
Catherine Tanna FY2025 246 36 19 301
FY2024 205 44 18 267
Dion Weisler FY2025 211 36 19 266
FY2024 205 22 18 245
Non-executive Directors that retired in FY2025
Ken MacKenzie
2
FY2025 705 23 16 744
FY2024 907 67 18 992
1. Other short-term benefits include travel allowances, fringe benefits tax and personal tax return preparation in required countries.
2. The FY2025 remuneration for Ken MacKenzie relates to part of the year only, as he retired from the Board on 31 March 2025.
114 BHP Annual Report 2025
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.
For Executive KMP that commenced as KMP during the reporting period, the ‘At 1 July 2024’ value reflects the balance at the date they commenced as KMP.
Award
type
1
Date of
grant
At 1 July
2024 Granted Vested
3
Lapsed/
forfeited
At 30 June
2025
Vesting
date
(estimate)
Market
price on
grant
date
2
Market
price on
vesting
date
Gain on
awards
(‘000)
DEP on
awards
(‘000)
Mike Henry
CDP 8 Nov 24 – 35,042 – – 35,042 Aug 29 A$43.40 – – –
CDP 8 Nov 24 – 35,042 – – 35,042 Aug 26 A$43.40 – – –
CDP 8 Nov 23 43,106 – – – 43,106 Aug 28 A$44.70 – – –
CDP 8 Nov 23 43,106 – – – 43,106 Aug 25 A$44.70 – – –
CDP 22 Nov 22 44,335 – – – 44,335 Aug 27 A$43.48 – – –
CDP 22 Nov 22 44,335 – 44,335 – – 31 Oct 24 A$43.48 A$42.64 A$1,890 A$331
CDP 23 Nov 21 55,246 – – – 55,246 Aug 26 A$38.05 – – –
CDP 20 Oct 20 49,692 – – – 49,692 Aug 25 A$35.90 – – –
LTIP 8 Nov 24 – 127, 84 8 – – 127,8 48 Aug 29 A$43.40 – – –
LTIP 8 Nov 23 125,124 – – 125,124 Aug 28 A$44.70 – – –
LTIP 22 Nov 22 118,853 – – – 118,853 Aug 27 A$43.48 – – –
LTIP 23 Nov 21 120,099 – – – 120,099 Aug 26 A$38.05 – – –
LTIP 20 Oct 20 157,13 8 – – – 157,138 Aug 25 A$35.90 – – –
LTIP 20 Nov 19 172,144 – 86,072 86,072 – 31 Oct 24 A$37. 24 A$42.64 A$3,670 A$1,492
Brandon Craig
CDP 8 Nov 24 – 5,835 – – 5,835 Aug 29 A$43.40 – – –
CDP 8 Nov 24 – 5,835 – – 5,835 Aug 26 A$43.40 – – –
LTIP 8 Nov 24 – 47,276 – – 47,276 Aug 29 A$43.40 – – –
MAP 8 Dec 23 23,600 – – – 23,600 Aug 28 A$47.74 – – –
MAP 8 Dec 23 23,600 – – – 23,600 Aug 27 A$47.74 – – –
MAP 27 Sep 23 23,600 – – – 23,600 Aug 26 A$43.49 – – –
MAP 21 Sep 22 19,938 – – – 19,938 Aug 25 A$37.96 – – –
MAP 29 Sep 21 19,945 – 19,945 – – 31 Oct 24 A$36.39 A$42.64 A$850 –
Vandita Pant
CDP 8 Nov 24 – 20,470 – – 20,470 Aug 29 A$43.40 – – –
CDP 8 Nov 24 – 20,470 – – 20,470 Aug 26 A$43.40 – – –
CDP 8 Nov 23 22,682 – – – 22,682 Aug 28 A$44.70 – – –
CDP 8 Nov 23 22,682 – – – 22,682 Aug 25 A$44.70 – – –
CDP 22 Nov 22 17,834 – – – 17,834 Aug 27 A$43.48 – – –
CDP 22 Nov 22 17,834 – 17,834 – – 31 Oct 24 A$43.48 A$42.64 A$760 A$133
CDP 23 Nov 21 20,347 – – – 20,347 Aug 26 A$38.05 – – –
LTIP 8 Nov 24 – 60,277 – – 60,277 Aug 29 A$43.40 – – –
LTIP 8 Nov 23 45,632 – – –
45,632 Aug 28 A$44.70 – – –
LTIP 22 Nov 22 43,296 – – – 43,296 Aug 27 A$43.48 – – –
LTIP 23 Nov 21 34,440 – – – 34,440 Aug 26 A$38.05 – – –
MAP 20 Oct 20 27,731 – – – 27,731 Aug 25 A$35.90 – – –
MAP 20 Nov 19 26,197 – 26,197 – – 31 Oct 24 A$37. 24 A$42.64 A$1,117 A$454
Geraldine Slattery
CDP 8 Nov 24 – 19,981 – – 19,981 Aug 29 A$43.40 – – –
CDP 8 Nov 24 – 19,981 – – 19,981 Aug 26 A$43.40 – – –
CDP 8 Nov 23 22,870 – – – 22,870 Aug 28 A$44.70 – – –
CDP 8 Nov 23 22,870 – – – 22,870 Aug 25 A$44.70 – – –
CDP 22 Nov 22 23,784 – – – 23,784 Aug 27 A$43.48 – – –
CDP 22 Nov 22 23,784 – 23,784 – – 31 Oct 24 A$43.48 A$42.64 A$1,014 A$178
CDP 23 Nov 21 28,258 – – – 28,258 Aug 26 A$38.05 – – –
CDP 20 Oct 20 28,562 – – – 28,562 Aug 25 A$35.90 – – –
LTIP 8 Nov 24 – 65,004 – – 65,004 Aug 29 A$43.40 – – –
LTIP 8 Nov 23 61,359 – – – 61,359 Aug 28 A$44.70 – – –
LTIP 22 Nov 22 58,237 – – – 58,237 Aug 27 A$43.48 – – –
LTIP 23 Nov 21 52,543 – – – 52,543 Aug 26 A$38.05 – – –
LTIP 20 Oct 20 60,660 – – – 60,660 Aug 25 A$35.90 – – –
LTIP 20 Nov 19 117,371 – 58,686 58,686 – 31 Oct 24 A$37.24 A$42.64 A$2,502 A$1,017
1. BHP senior management who are not KMP receive long-term incentive awards under BHP’s MAP (Management Award Plan). This table reflects MAP awards received by Executive KMP
prior to commencement as KMP. More information on the MAP can be found in Financial Statements note 26 ‘Employee share ownership plans’ section of the Financial Report.
2. The IFRS fair value on the grant date in FY2025 for the CDP Deferred Rights was A$44.51 and LTIP Performance Rights was A$26.37.
3. The percentage that vested during FY2025 are as follows: CDP Deferred Rights 100% and LTIP Performance Rights 50%.
115Operating and Financial ReviewOverview Additional InformationFinancial StatementsContents Governance
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
Remuneration Report continued
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. No interests under BHP’s
employee equity plans are held by related parties of Executive KMP.
BHP’s shareholders approved the grant of FY2024 CDP Deferred Rights
and 2024 LTIP Performance Rights to the CEO in accordance with ASX
Listing Rule 10.14 at the 2024 AGM.
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
2024’ 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
2025’ value reflects the shares held at the date they ceased being KMP.
At 1 July 2024 Purchased
Received as
remuneration Sold At 30 June 2025
Executive KMP
Mike Henry 410,001 – 130,407 62,373 478,035
Brandon Craig 25,665 – 19,945 9,025 36,585
Vandita Pant 170,688 – 44,031 2,784 211,935
Geraldine Slattery
1
195,011 – 82,470 39,453 238,028
Non-executive Directors
Xiaoqun Clever-Steg 8,539 1,461 – – 10,000
Gary Goldberg
2
18,000 6,000 – – 24,000
Michelle Hinchliffe 10,107 2,223 – – 12,330
Don Lindsay – 10,000 – – 10,000
Ken MacKenzie
3
58,446 – – – 58,446
Ross McEwan – 45,000 – – 45,000
Christine O’Reilly 9,420 1,200 – – 10,620
Catherine Tanna 10,400 – – – 10,400
Dion Weisler 7,5 44 3,950 – – 11,494
1. 2,042 of Geraldine Slattery’s shares were held in the form of American Depositary Shares.
2. 12,000 of Gary Goldberg’s shares were held in the form of American Depositary Shares.
3. Shares shown as held by Ken MacKenzie at 30 June 2025 is the balance held at the date of his retirement from the Board on 31 March 2025.
This Remuneration Report was approved by the Board
on 19 August 2025 and signed on its behalf by:
Christine O’Reilly
Chair, People and Remuneration Committee
19 August 2025
116 BHP Annual Report 2025
1 Consolidated Financial Statements
1.1 Consolidated Income Statement 118
1.2 Consolidated Statement of Comprehensive Income 118
1.3 Consolidated Balance Sheet 119
1.4 Consolidated Cash Flow Statement 120
1.5 Consolidated Statement of Changes in Equity 121
1.6 Notes to the Financial Statements 124
2 Consolidated entity disclosure statement 177
3 Directors’ declaration 181
4 Lead auditor’s independence declaration under
Section 307C of the Australian Corporations Act 2001 182
5 Independent auditor’s report to the members of
BHP Group Limited 183
Notes to the Financial Statements
Performance
1 Segment reporting 124
2 Revenue 126
3 Exceptional items 126
4 Significant events – Samarco dam failure 129
5 Expenses and other income 135
6 Income tax expense 136
7 Earnings per share 138
Working capital
8 Trade and other receivables 139
9 Trade and other payables 139
10 Inventories 139
Resource assets
11 Property, plant and equipment 140
12 Intangible assets 142
13 Impairment of non-current assets 143
14 Deferred tax balances 145
15 Closure and rehabilitation provisions 146
16 Climate change 148
Capital structure
17 Share capital 152
18 Other equity 152
19 Dividends 153
20 Provisions for dividends and other liabilities 154
Financial management
21 Net debt 154
22 Leases 156
23 Net finance costs 158
24 Financial risk management 159
Employee matters
25 Key management personnel 165
26 Employee share ownership plans 165
27 Employee benefits, restructuring and post-retirement
employee benefits provisions 167
Group and related party information
28 Subsidiaries 169
29 Investments accounted for using the equity method 169
30 Interests in joint operations 172
31 Related party transactions 172
Unrecognised items and uncertain events
32 Contingent liabilities 173
33 Subsequent events 173
Other items
34 Auditor’s remuneration 174
35 BHP Group Limited 174
36 Deed of Cross Guarantee 175
37 New and amended accounting standards and
interpretations and changes to accounting policies 176
Financial Statements
117Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements
1.1 Consolidated Income Statement
for the year ended 30 June 2025
Notes
| 2025 | 2024 | 2023 | ||
| US$M | US$M | US$M | ||
Revenue | 2 | |||
Other income | 5 | |||
Expenses excluding net finance costs | 5 | ( | ( | ( |
Profit/(loss) from equity accounted investments, related impairments and expenses | 29 | ( | ||
Profit from operations | ||||
Financial expenses | ( | ( | ( | |
Financial income | ||||
Net finance costs | 23 | ( | ( | ( |
Profit before taxation | ||||
Income tax expense | ( | ( | ( | |
Royalty-related taxation (net of income tax benefit) | ( | ( | ( | |
Total taxation expense | 6 | ( | ( | ( |
Profit after taxation | ||||
Attributable to non-controlling interests | ||||
Attributable to BHP shareholders | ||||
Basic earnings per ordinary share (cents) | 7 | |||
Diluted earnings per ordinary share (cents) | 7 |
The accompanying notes form part of these Financial Statements.
1.2 Consolidated Statement of Comprehensive Income
for the year ended 30 June 2025
Notes
| 2025 | 2024 | 2023 | ||
| US$M | US$M | US$M | ||
Profit after taxation | ||||
| Other comprehensive income | ||||
| Items that may be reclassified subsequently to the income statement: | ||||
| Hedges: | ||||
Gains/(losses) taken to equity | ( | |||
(Gains)/losses transferred to the income statement | ( | ( | ||
Loss transferred to initial carrying amount of hedged item | ||||
Tax recognised within other comprehensive income | 6 | ( | ||
Total items that may be reclassified subsequently to the income statement | ( | ( | ||
| Items that will not be reclassified to the income statement: | ||||
Re-measurement (losses)/gains on pension and medical schemes | ( | ( | ||
Equity investments held at fair value | ( | |||
Tax recognised within other comprehensive income | 6 | ( | ||
Total items that will not be reclassified to the income statement | ( | |||
Total other comprehensive (loss)/income | ( | ( | ||
Total comprehensive income | ||||
Attributable to non-controlling interests | ||||
Attributable to BHP shareholders |
The accompanying notes form part of these Financial Statements.
118
BHP Annual Report 2025
1.3 Consolidated Balance Sheet
as at 30 June 2025
Notes
| 2025 | 2024 | ||
| US$M | US$M | ||
| ASSETS | |||
| Current assets | |||
Cash and cash equivalents | 21 | ||
Trade and other receivables | 8 | ||
Other financial assets | 24 | ||
Inventories | 10 | ||
Current tax assets | |||
Other | |||
Total current assets | |||
| Non-current assets | |||
Trade and other receivables | 8 | ||
Other financial assets | 24 | ||
Inventories | 10 | ||
Property, plant and equipment | 11 | ||
Intangible assets | 12 | ||
Investments accounted for using the equity method | 29 | ||
Deferred tax assets | 14 | ||
Other | |||
Total non-current assets | |||
Total assets | |||
| LIABILITIES | |||
| Current liabilities | |||
Trade and other payables | 9 | ||
Interest bearing liabilities | 21 | ||
Other financial liabilities | 24 | ||
Current tax payable | |||
Provisions | 4,15,20,27 | ||
Deferred income | |||
Total current liabilities | |||
| Non-current liabilities | |||
Trade and other payables | 9 | ||
Interest bearing liabilities | 21 | ||
Other financial liabilities | 24 | ||
Non-current tax payable | |||
Deferred tax liabilities | 14 | ||
Provisions | 4,15,20,27 | ||
Deferred income | |||
Total non-current liabilities | |||
Total liabilities | |||
Net assets | |||
| EQUITY | |||
Share capital | 17 | ||
Treasury shares | 17 | ( | ( |
Reserves | 18 | ( | ( |
Retained earnings | |||
Total equity attributable to BHP shareholders | |||
Non-controlling interests | 18 | ||
Total equity |
The accompanying notes form part of these Financial Statements.
119Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
1.4 Consolidated Cash Flow Statement
for the year ended 30 June 2025
Notes
| 2025 | 2024 | 2023 | ||
| US$M | US$M | US$M | ||
| Operating activities | ||||
Profit before taxation | ||||
| Adjustments for: | ||||
Depreciation and amortisation expense | ||||
| Impairments of property, plant and equipment, financial assets and intangibles net | ||||
of reversals | ||||
Net finance costs | ||||
(Profit)/loss from equity accounted investments, related impairments and expenses | ( | ( | ||
Other Changes in assets and liabilities: | ( | |||
Trade and other receivables | ( | |||
Inventories | ( | ( | ||
Trade and other payables | ( | ( | ( | |
Provisions and other assets and liabilities | ( | ( | ||
Cash generated from operations | ||||
Dividends received | ||||
Interest received | ||||
Interest paid | ( | ( | ( | |
Proceeds from cash management related instruments | ||||
Net income tax and royalty-related taxation refunded | ||||
Net income tax and royalty-related taxation paid | ( | ( | ( | |
Net operating cash flows | ||||
| Investing activities | ||||
Purchases of property, plant and equipment | ( | ( | ( | |
Exploration and evaluation expenditure | ( | ( | ( | |
Exploration and evaluation expenditure expensed and included in operating cash flows | ||||
Investment in subsidiaries, operations and joint operations, net of cash | ( | |||
Net investment and funding of equity accounted investments | 29 | ( | ( | ( |
Proceeds from sale of assets | ||||
Proceeds from sale of subsidiaries, operations and joint operations, net of their cash | ||||
Other investing | ( | ( | ( | |
Net investing cash flows | ( | ( | ( | |
| Financing activities | ||||
Proceeds from interest bearing liabilities | ||||
Settlements of debt related instruments | ( | ( | ( | |
Repayment of interest bearing liabilities | ( | ( | ( | |
Distributions to non-controlling interests | ( | ( | ||
Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts | ( | |||
Dividends paid | ( | ( | ( | |
Dividends paid to non-controlling interests | ( | ( | ( | |
Net financing cash flows | ( | ( | ( | |
Net (decrease)/increase in cash and cash equivalents | ( | ( | ||
Cash and cash equivalents, net of overdrafts, at the beginning of the financial year | ||||
Foreign currency exchange rate changes on cash and cash equivalents | ( | ( | ||
Cash and cash equivalents, net of overdrafts, at the end of the financial year | 21 |
The accompanying notes form part of these Financial Statements.
120
BHP Annual Report 2025
1.5 Consolidated Statement of Changes in Equity
for the year ended 30 June 2025
| Attributable to BHP shareholders | |||||||
| Total equity | |||||||
| attributable | Non- | ||||||
| Share | Treasury | Retained | to BHP | controlling | Total | ||
| US$M | capital | shares | Reserves | earnings | shareholders | interests | equity |
Balance as at 1 July 2024 | ( | ( | |||||
Total comprehensive income | ( | ||||||
| Transactions with owners: | |||||||
Shares issued | ( | ||||||
Purchase of shares by ESOP Trusts | |||||||
Employee share awards exercised net of employee contributions net of tax | ( | ( | |||||
Vested employee share awards that have lapsed, been cancelled or forfeited | ( | ||||||
Accrued employee entitlement for unexercised awards net of tax | |||||||
Dividends | ( | ( | ( | ( | |||
Distribution to non-controlling interests | ( | ( | |||||
Balance as at 30 June 2025 | ( | ( | |||||
Balance as at 1 July 2023 | ( | ||||||
Total comprehensive income | ( | ||||||
| Transactions with owners: | |||||||
Shares issued | ( | ||||||
Purchase of shares by ESOP Trusts | |||||||
Employee share awards exercised net of employee contributions net of tax | ( | ( | |||||
Vested employee share awards that have lapsed, been cancelled or forfeited | ( | ||||||
Accrued employee entitlement for unexercised awards net of tax | |||||||
Dividends | ( | ( | ( | ( | |||
Distribution to non-controlling interests | ( | ( | ( | ( | |||
Balance as at 30 June 2024 | ( | ( | |||||
Balance as at 1 July 2022 | ( | ||||||
Total comprehensive income | |||||||
| Transactions with owners: | |||||||
Shares issued | ( | ||||||
Purchase of shares by ESOP Trusts | ( | ( | ( | ||||
Employee share awards exercised net of employee contributions net of tax | ( | ( | |||||
Vested employee share awards that have lapsed, been cancelled or forfeited | ( | ||||||
Accrued employee entitlement for unexercised awards net of tax | |||||||
Dividends | ( | ( | ( | ( | |||
Balance as at 30 June 2023 | ( |
The accompanying notes form part of these Financial Statements.
121
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
122 BHP Annual Report 2025
| 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 |
29 | Investments accounted for using the |
| equity method |
123Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
1.6 Notes to the Financial Statements
Performance
1 Segment reporting
Reportable segments
The Group operated three reportable segments during FY2025, which are aligned with the commodities that are extracted and marketed and reflect the
structure used by the Group’s management to assess the performance of the Group.
Reportable segment | Principal activities |
Copper | 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 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.
| Group and | |||||
| unallocated | |||||
| Year ended 30 June 2025 | items/ | ||||
US$M | Copper | Iron Ore | Coal | eliminations | Group total |
Revenue | 22,530 | 22,919 | 5,046 | 767 | 51,262 |
Inter-segment revenue | − | − | − | − | − |
Total revenue | 22,530 | 22,919 | 5,046 | 767 | 51,262 |
Underlying EBITDA | 12,326 | 14,396 | 573 | (1,317) | 25,978 |
Depreciation and amortisation | (2,351) | (2,098) | (602) | (489) | (5,540) |
Impairment losses 1 | (19) | (151) | (4) | (24) | (198) |
Underlying EBIT | 9,956 | 12,147 | (33) | (1,830) | 20,240 |
Exceptional items 2 | − | (321) | − | (455) | (776) |
Net finance costs | (1,111) | ||||
Profit before taxation | 18,353 | ||||
Capital expenditure (cash basis) | 4,392 | 2,617 | 525 | 1,864 | 9,398 |
Profit/(loss) from equity accounted investments, related impairments and expenses | 464 | (245) | − | (66) | 153 |
Investments accounted for using the equity method | 4,084 | − | − | 23 | 4,107 |
Total assets | 46,694 | 26,320 | 10,067 | 25,709 | 108,790 |
Total liabilities | 5,810 | 11,068 | 3,710 | 35,984 | 56,572 |
| Group and | |||||
| unallocated | |||||
| Year ended 30 June 2024 | items/ | ||||
US$M | Copper | Iron Ore | Coal | eliminations | Group total |
Revenue | 18,566 | 27,952 | 7,666 | 1,474 | 55,658 |
Inter-segment revenue | − | − | − | − | − |
Total revenue | 18,566 | 27,952 | 7,666 | 1,474 | 55,658 |
Underlying EBITDA | 8,564 | 18,913 | 2,290 | (751) | 29,016 |
Depreciation and amortisation | (2,023) | (2,027) | (611) | (634) | (5,295) |
Impairment losses 1 | (17) | (61) | (2) | (10) | (90) |
Underlying EBIT | 6,524 | 16,825 | 1,677 | (1,395) | 23,631 |
Exceptional items 2 | − | (3,066) | 880 | (3,908) | (6,094) |
Net finance costs | (1,489) | ||||
Profit before taxation | 16,048 | ||||
Capital expenditure (cash basis) | 3,711 | 2,033 | 646 | 2,426 | 8,816 |
Profit/(loss) from equity accounted investments, related impairments and expenses | 377 | (3,032) | − | (1) | (2,656) |
Investments accounted for using the equity method | 1,573 | − | − | 89 | 1,662 |
Total assets | 42,145 | 25,569 | 9,528 | 25,120 | 102,362 |
Total liabilities | 5,777 | 11,757 | 3,056 | 32,652 | 53,242 |
124
BHP Annual Report 2025
| Group and | |||||
| unallocated | |||||
| Year ended 30 June 2023 | items/ | ||||
US$M | Copper | Iron Ore | Coal | eliminations | Group total |
Revenue | 16,027 | 24,812 | 10,958 | 2,020 | 53,817 |
Inter-segment revenue | − | − | − | − | − |
Total revenue | 16,027 | 24,812 | 10,958 | 2,020 | 53,817 |
Underlying EBITDA | 6,653 | 16,692 | 4,998 | (387) | 27,956 |
Depreciation and amortisation | (1,810) | (1,993) | (697) | (561) | (5,061) |
Impairment losses 1 | (33) | (28) | (6) | (8) | (75) |
Underlying EBIT | 4,810 | 14,671 | 4,295 | (956) | 22,820 |
Exceptional items 2 | − | 176 | − | (64) | 112 |
Net finance costs | (1,531) | ||||
Profit before taxation | 21,401 | ||||
Capital expenditure (cash basis) | 2,698 | 1,966 | 657 | 1,412 | 6,733 |
Profit/(loss) from equity accounted investments, related impairments and expenses | 383 | 215 | − | (4) | 594 |
Investments accounted for using the equity method | 1,530 | − | − | 90 | 1,620 |
Total assets | 39,864 | 25,527 | 11,087 | 24,818 | 101,296 |
Total liabilities | 5,635 | 8,571 | 3,821 | 34,739 | 52,766 |
1. Impairment losses exclude impairment related exceptional items: reversal of impairment of US$90 million (2024: exceptional impairment of US$3,800 million; 2023: exceptional impairment
of US$ nil).
2. Exceptional items reported in Group and unallocated include Samarco dam failure related costs of US$135 million (2024: US$105 million; 2023: US$64 million). Refer to note 3 ‘Exceptional
items’ for further information.
| Revenue by location of customer | |||
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
Australia | 2,545 | 2,393 | 1,702 |
Europe | 1,121 | 1,702 | 1,961 |
China | 32,083 | 34,752 | 31,205 |
Japan | 4,177 | 4,557 | 6,971 |
India | 2,661 | 3,371 | 3,447 |
South Korea | 2,664 | 3,069 | 2,997 |
Rest of Asia | 3,331 | 3,749 | 3,583 |
North America | 2,251 | 1,601 | 1,382 |
South America | 429 | 464 | 569 |
51,262 | 55,658 | 53,817 |
| Non-current assets by location of assets | |||
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
Australia | 50,619 | 48,991 | 51,961 |
North America | 9,459 | 6,979 | 5,081 |
South America | 23,940 | 19,927 | 19,047 |
Rest of world | 742 | 831 | 685 |
Unallocated assets 1 | 1,200 | 1,296 | 1,171 |
85,960 | 78,024 | 77,9 45 |
125Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
Escondida | 13,177 | 10,013 | 8,847 |
Pampa Norte | 2,726 | 2,375 | 2,491 |
Copper South Australia 1 | 4,655 | 4,085 | 2,806 |
Third-party products | 1,845 | 2,021 | 1,863 |
Other | 127 | 72 | 20 |
Total Copper 2 | 22,530 | 18,566 | 16,027 |
Western Australia Iron Ore | 22,767 | 27,8 05 | 24,678 |
Third-party products | 28 | 25 | 21 |
Other | 124 | 122 | 113 |
Total Iron Ore | 22,919 | 27,952 | 24,812 |
BHP Mitsubishi Alliance 3 | 3,422 | 5,873 | 7,6 52 |
New South Wales Energy Coal | 1,624 | 1,793 | 3,306 |
Other | − | − | − |
Total Coal 4 | 5,046 | 7,666 | 10,958 |
Group and unallocated items 5 | 767 | 1,474 | 2,020 |
Inter-segment adjustment | − | − | − |
Total revenue | 51,262 | 55,658 | 53,817 |
| Gross | Tax | Net | |
| Year ended 30 June 2025 | US$M | US$M | US$M |
| Exceptional items by category | |||
Samarco dam failure | (914) | − | (914) |
Western Australia Nickel (WAN) temporary suspension | (320) | 96 | (224) |
Total | (1,234) | 96 | (1,138) |
Attributable to non-controlling interests | − | − | − |
Attributable to BHP shareholders | (1,234) | 96 | (1,138) |
126
BHP Annual Report 2025
Samarco Mineração S.A. (Samarco) dam failure
The loss of US$914 million (after tax) relates to the Samarco dam failure, which occurred in November 2015, and comprises the following:
Year ended 30 June 2025 | US$M |
| Expenses excluding net finance costs: | |
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure | (211) |
| Profit/(loss) from equity accounted investments, related impairments and expenses: | |
Samarco dam failure provision | (659) |
Fair value change on forward exchange derivatives | 414 |
Net finance costs | (458) |
Income tax expense | − |
Total 1 | (914) |
1. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
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$224 million (after tax) associated with the transition of operations into temporary suspension. Pre-tax costs of
US$320 million included US$410 million related to employee redundancies, contract termination costs and inventory adjustments, offset by US$90 million
impairment reversals of certain non-current assets from Nickel West operations to be redeployed to other operations within the Group.
The exceptional items relating to the years ended 30 June 2024 and 30 June 2023 are detailed below.
30 June 2024
| Gross | Tax | Net | |
| Year ended 30 June 2024 | US$M | US$M | US$M |
| Exceptional items by category | |||
Samarco dam failure | (3,677) | (85) | (3,762) |
Impairment of Western Australia Nickel assets | (3,800) | 1,125 | (2,675) |
Blackwater and Daunia gain on divestment | 877 | (203) | 674 |
Total | (6,600) | 837 | (5,763) |
Attributable to non-controlling interests | − | − | − |
Attributable to BHP shareholders | (6,600) | 837 | (5,763) |
Samarco Mineração S.A. (Samarco) dam failure
The loss of US$3,762 million (after tax) related to the Samarco dam failure, which occurred in November 2015, and comprised the following:
Year ended 30 June 2024 | US$M |
| Expenses excluding net finance costs: | |
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure | (139) |
| (Loss)/profit from equity accounted investments, related impairments and expenses: | |
Samarco dam failure provision | (2,833) |
Fair value change on forward exchange derivatives | (199) |
Net finance costs | (506) |
Income tax expense | (85) |
Total 1 | (3,762) |
1. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
Western Australia Nickel impairment
The Group recognised an impairment charge of US$2,675 million (after tax) in relation to the Western Australia Nickel assets. The impairment charge
reflected the oversupply in the global nickel market that had seen a sharp decline in forward nickel prices in the short to medium term, escalation in
capital costs for Western Australia Nickel, and changes to development plans including the Group’s decision, announced on 11 July 2024, to temporarily
suspend Nickel West operations and the West Musgrave project at Western Australia Nickel. Refer to note 13 ‘Impairment of non-current assets’ for
further information.
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 50% interest in BMA.
Whitehaven Coal paid a US$100 million deposit on signing of the Asset Sale Agreement on 18 October 2023 and a further US$2 billion cash on
completion plus a preliminary completion adjustment of US$44.1 million for working capital and other agreed adjustments (100% interest basis).
US$1.1 billion in cash remained payable over 3 years after completion and a potential additional amount up to US$0.9 billion in a price-linked earnout may
also be payable over 3 years (100% interest basis). The price-linked earnout is subject to a cap of US$350 million each year and depends on average
realised pricing exceeding agreed thresholds for each of the 3 years following completion on 2 April 2024. US$0.5 billion of this deferred and contingent
consideration has been paid by Whitehaven Coal as at 30 June 2025.
127Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
3 Exceptional items continued
The total cash consideration for the transaction could be up to US$4.1 billion plus the final completion adjustment amount (100% interest basis).
Details of the gain on divestment was as follows:
| US$M | |
Net assets disposed | 820 |
Cash consideration – BHP share | 1,072 |
Deferred and contingent consideration 1 | 690 |
Transaction and other directly attributable costs | (65) |
Income tax expense | (203) |
Gain on divestment | 674 |
1. Includes the fair value of contingent payments based on 35% revenue share to BMA, subject to average realised prices achieved by the Assets exceeding thresholds of US$159/tonne in
the 12 month period 12 months post completion, US$134/tonne in the 12 month period 24 months post completion and US$134/tonne in the 12 month period 36 months post completion.
30 June 2023
| Gross | Tax | Net | |
| Year ended 30 June 2023 | US$M | US$M | US$M |
| Exceptional items by category | |||
Samarco dam failure | (340) | 17 | (323) |
Chilean tax reform | − | (283) | (283) |
Total | (340) | (266) | (606) |
Attributable to non-controlling interests | − | (107) | (107) |
Attributable to BHP shareholders | (340) | (159) | (499) |
Samarco Mineração S.A. (Samarco) dam failure
The loss of US$323 million (after tax) related to the Samarco dam failure, which occurred in November 2015, and comprised the following:
Year ended 30 June 2023 | US$M |
| Expenses excluding net finance costs: | |
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure | (103) |
| (Loss)/profit from equity accounted investments, related impairments and expenses: | |
Samarco dam failure provision | (256) |
Fair value change on forward exchange derivatives | 471 |
Net finance costs | (452) |
Income tax benefit | 17 |
Total 1 | (323) |
1. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.
Chilean tax reform
On 17 May 2023, the Chilean Lower House approved a Royalty Bill which would implement a 1 per cent royalty on revenues, a margin based tax with
rates ranging between 8 per cent and 26 per cent, and a 46.5 per cent cap to the overall Chilean tax burden of mining companies.
The President of the Lower House formally declared the legislative process complete on 12 June 2023, following receipt of the Chilean President’s formal
confirmation that he had waived his veto power to oppose any of the provisions of the Royalty Bill. On 13 July 2023, the Constitutional Court finalised its
review of certain aspects of the Royalty Bill, relating only to the distribution of proceeds.
Applying judgement, it was determined that the proposed tax rates were substantively enacted prior to 30 June 2023, as the scope of the Constitutional
Court review did not extend to reviewing the tax rates.
While the timing of when the Group’s operations will be impacted by the reform depends on existing stability agreements, relevant deferred tax positions
were remeasured by US$283 million in the Group’s FY2023 Financial Statements.
128 BHP Annual Report 2025
4 Significant events – Samarco dam failure
On 5 November 2015, the Samarco Mineração S.A. (Samarco) iron ore operation in Minas Gerais, Brazil, experienced a tailings dam failure that resulted
in a release of mine tailings, flooding the communities of Bento Rodrigues, Gesteira and Paracatu de Baixo and impacting other communities downstream
(the Samarco dam failure). Refer to section on ‘Samarco’ in the Operating and Financial Review.
Samarco is jointly owned by BHP Billiton Brasil Ltda. (BHP Brasil) and Vale S.A. (Vale). BHP Brasil’s 50 per cent interest is accounted for as an equity
accounted joint venture investment. BHP Brasil does not separately recognise its share of the underlying assets and liabilities of Samarco, but instead
records the investment as one line on the balance sheet. Each period, BHP Brasil recognised its 50 per cent share of Samarco’s profit or loss and
adjusted the carrying value of the investment in Samarco accordingly. Such adjustment continued until the investment carrying value was reduced to
US$ nil, with any additional share of Samarco losses only recognised to the extent that BHP Brasil has an obligation to fund the losses. After applying
equity accounting, any remaining carrying value of the investment is tested for impairment.
Any charges relating to the Samarco dam failure incurred directly by BHP Brasil or other BHP entities are recognised 100 per cent in the Group’s results.
The financial impacts of the Samarco dam failure on the Group’s income statement, balance sheet and cash flow statement for the year ended 30 June
2025 are shown in the tables below and have been treated as an exceptional item.
| 2025 | 2024 | 2023 | |
| Financial impacts of Samarco dam failure | US$M | US$M | US$M |
| Income statement | |||
| Expenses excluding net finance costs: | |||
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure 1 | (211) | (139) | (103) |
| Profit/(loss) from equity accounted investments, related impairments and expenses | |||
Samarco dam failure provision 2 | (659) | (2,833) | (256) |
Fair value change on forward exchange derivatives 3 | 414 | (199) | 471 |
(Loss)/profit from operations | (456) | (3,171) | 112 |
Net finance costs 4 | (458) | (506) | (452) |
Loss before taxation | (914) | (3,677) | (340) |
Income tax (expense)/benefit 5 | − | (85) | 17 |
Loss after taxation | (914) | (3,762) | (323) |
| Balance sheet movement | |||
Other financial assets/(liabilities) 6 | 441 | (280) | 337 |
Trade and other payables | 29 | (4) | (6) |
Tax liabilities | − | (85) | 17 |
Provisions | 656 | (2,824) | (260) |
Net decrease/(increase) in liabilities | 1,126 | (3,193) | 88 |
| 2025 | 2024 | 2023 | ||||
| US$M | US$M | US$M | ||||
| Cash flow statement | ||||||
Loss before taxation | (914) | (3,677) | (340) | |||
| Adjustments for: | ||||||
Samarco dam failure provision 2 | 659 | 2,833 | 256 | |||
Fair value change on forward exchange derivatives 3 | (414) | 199 | (471) | |||
(Settlement of)/proceeds from cash management related instruments | (17) | 218 | 134 | |||
Net finance costs 4 | 458 | 506 | 452 | |||
| Changes in assets and liabilities: | ||||||
Trade and other payables | (29) | 4 | 6 | |||
Net operating cash flows | (257) | 83 | 37 | |||
Net investment and funding of equity accounted investments 7 | (1,773) | (640) | (448) | |||
Net investing cash flows | (1,773) | (640) | (448) | |||
Net decrease in cash and cash equivalents | (2,030) | (557) | (411) |
1. Includes legal and advisor costs incurred.
2. US$540 million (2024: US$3,700 million; 2023: US$(33) million) change in estimate and US$119 million (2024: US$(867) million; 2023: US$289 million) exchange translation.
3. The Group enters into forward exchange contracts to limit the Brazilian reais exposure on the dam failure provision. While not applying hedge accounting, the fair value changes in the
forward exchange instruments are recorded within Profit/(loss) from equity accounted investments, related impairments and expenses in the Income Statement.
4. Amortisation of discounting of provision.
5. Includes tax on forward exchange derivatives and other taxes incurred during the period.
6. Includes forward exchange contracts described in 3 above, and Senior notes issued by Samarco as part of its Judicial Reorganisation in September 2023.
7. Current period reflects US$(1,773) million utilisation of the Samarco dam failure provision including payments under the Settlement Agreement ratified on 6 November 2024.
Comparative periods comprise utilisation of the Samarco dam failure provision (2024: US$(515) million; 2023: US$(448) million) and in FY2024 US$(125) million provided to Samarco
following approval of the Judicial Reorganisation.
129Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
4 Significant events – Samarco dam failure continued
Equity accounted investment in Samarco
BHP Brasil’s investment in Samarco remains at US$ nil. No dividends have been received by BHP Brasil from Samarco during the period and Samarco
currently does not have profits available for distribution.
| 2025 | 2024 | |||
| US$M | US$M | |||
At the beginning of the financial year | 6,505 | 3,681 | ||
Movement in provision | (656) | 2,824 | ||
| Comprising: | ||||
Utilised | (1,773) | (515) | ||
| Adjustments charged to the income statement: | ||||
Change in cost estimate | 540 | 3,700 | ||
Amortisation of discounting impacting net finance costs | 458 | 506 | ||
Exchange translation | 119 | (867) | ||
At the end of the financial year | 5,849 | 6,505 | ||
| Comprising: | ||||
Current | 2,958 | 1,500 | ||
Non-current | 2,891 | 5,005 | ||
At the end of the financial year | 5,849 | 6,505 |
Samarco dam failure provision and contingencies
As at 30 June 2025, 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 (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.
130 BHP Annual Report 2025
The following table summarises the current status of significant ongoing matters relating to the Samarco dam failure, along with developments during the
financial year, and the associated treatment in the Financial Statements:
| Contingent | |||
Item | Provision | liability | |
| Samarco dam failure – Settlement Agreement | |||
On 2 March 2016, BHP Brasil, Samarco and Vale S.A. (Vale) (the Companies) entered into a Framework Agreement with the Federal Government of Brazil, the states of Espirito Santo and Minas Gerais, and certain other public authorities to establish a foundation (Fundação Renova) to develop and execute environmental and socio-economic programs (Programs) to remediate and provide compensation for damage caused by the Samarco dam failure (the Framework Agreement). Key Programs included those for financial assistance and compensation of impacted persons and those for remediation of impacted areas and resettlement of impacted communities. | |||
| On 3 May 2016, the Brazilian Federal Public Prosecution Office brought a civil claim against BHP Brasil and others seeking | |||
| R$155 billion for reparation, compensation and moral damages in relation to the Samarco dam failure. Since the lodgement | |||
of the claim, the Federal Court had issued a number of interim decisions, certain of which were subject to ongoing appeal at 30 June 2024. | |||
On 25 October 2024, the Companies entered into an agreement with the Federal Government of Brazil, State of Minas Gerais, State of Espirito Santo, public prosecutors and public defenders (Public Authorities) that delivers full and final settlement of the Framework Agreement obligations, the Federal Public Prosecution Office civil claim and other claims by the Public Authorities | |||
| relating to Samarco’s Fundão 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. | |||
| The Settlement Agreement provides compensation and reparation for the impacts of the dam failure, and builds on the existing | |||
remediation and compensation work already performed by Fundação Renova. The Settlement Agreement was announced as having a financial value of R$170 billion (approximately US$31.7 billion¹) on a 100% basis, including amounts already spent plus | |||
| future payments and obligations as follows: | |||
– | R$38 billion (approximately US$7.9 billion 1 ) in amounts already spent to 30 September 2024 on remediation and compensation | ||
| since 2016. | |||
– | R$100 billion (approximately US$18.0 billion 1 ) in instalments over 20 years to the Public Authorities, the relevant municipalities | ||
| and Indigenous peoples and traditional communities (Obligation to Pay). | |||
– | Additional performance obligations for an estimated financial value of approximately R$32 billion (approximately US$5.8 billion 1 ) | ||
| that will 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 largely 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 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. | |||
| 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$1 billion for the period CY2024 to CY2030. Notwithstanding this cap, and subject to certain conditions, to the extent that Samarco each year has a positive cash balance after meeting its various obligations, during this period Samarco’s shareholders are able to direct 50 per cent of Samarco’s year end excess cash balance to fund remediation obligations, including those arising from the Settlement Agreement. | |||
| 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 US$5,849 million at 30 June 2025. The provision reflects 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. This decision is subject to any appeal that may be filed. |
1. USD amounts reflect those included in the announcement of the settlement agreement calculated based on actual transactional (historical) exchange rates related to funding provided to
Fundação Renova for investment to date with future spend calculated using the 28 June 2024 BRL/USD exchange rate of 5.56.
131Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
| Contingent | ||
Item | Provision | liability |
| Australian class action complaint | ||
BHP Group Limited is 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. | ||
| The amount of damages sought is unspecified. A trial is scheduled to commence in September 2025. | ||
| United Kingdom group action claim and Vale and Samarco’s Netherlands collective action claim | ||
| 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 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 compensation under the Settlement Agreement. | ||
The amount of damages sought in these claims is unspecified. The BHP Defendants subsequently filed a contribution claim against Vale, which was withdrawn after reaching the agreement in July 2024 described below. A trial in relation to the BHP Defendants’ | ||
| liability for the dam failure concluded in March 2025 and a ruling on liability is pending. In the event that the BHP Defendants | ||
are found liable, a second trial has been listed to commence in October 2026, directed to generic issues of causation and quantification. Subject to the outcome of that trial, a further trial may be necessary to determine the amount of any damages and compensation owed to the claimants. The outcome of these proceedings, including the extent of any liability or damages, remains | ||
| uncertain and therefore a present obligation in relation to this matter is yet to be determined. | ||
| 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 the outcome of the liability trial referred to above. | ||
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. | ||
| BHP is not a defendant in the Netherlands proceedings. | ||
In July 2024, the BHP Defendants, BHP Brasil and Vale entered into an agreement – without any admission of liability in any proceedings – whereby: (i) Vale will pay 50% 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 agreement); and (ii) BHP Brasil will pay 50% 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 agreement). The agreement reinforced the terms of the Framework Agreement | ||
| entered into in 2016 and is consistent with the aforementioned Settlement Agreement entered into in October 2024, which requires | ||
| BHP Brasil and Vale to each contribute 50% to the funding of the settlement obligations where Samarco is unable to contribute | ||
that funding. While the Settlement Agreement did not resolve the English and Netherlands proceedings, certain claimants in those proceedings are eligible to receive payments under the Settlement Agreement if they choose to do so. | ||
| 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, allowing the contempt proceedings to continue. The BHP Defendants have sought permission to appeal that decision. The contempt proceedings remain ongoing and the outcome | ||
| is uncertain at this stage. |
4 Significant events – Samarco dam failure continued
132 BHP Annual Report 2025
| Contingent | ||
Item | Provision | liability |
| Criminal charges | ||
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 filed an appeal, and a ruling is pending. | ||
| Civil public action 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 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. | ||
| Other claims | ||
BHP Brasil is among the Companies named as defendants in a number of legal proceedings initiated by individuals, non- governmental organisations, corporations and 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 addition, actions for alleged damages, fees and/or expenses related to claims concerning the Samarco dam failure have been, 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 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 50% each.
BHP Brasil has approved preliminary funding of up to US$2.9 billion to Samarco for the Settlement Agreement obligations during calendar year 2025.
133Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
4 Significant events – Samarco dam failure continued
134 BHP Annual Report 2025
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
| Employee benefits expense: | |||
Wages and salaries | 5,017 | 4,633 | 4,539 |
Employee share awards | 127 | 112 | 97 |
Social security costs | 5 | 5 | 4 |
Pension and other post-retirement obligations | 399 | 374 | 339 |
Less employee benefits expense classified as exploration and evaluation expenditure | (61) | (49) | (35) |
Changes in inventories of finished goods and work in progress | 433 | (289) | 301 |
Raw materials and consumables used | 5,950 | 6,536 | 6,710 |
Freight and transportation | 2,029 | 2,270 | 2,299 |
External services | 5,726 | 5,795 | 4,768 |
Third-party commodity purchases | 1,991 | 1,977 | 1,878 |
Net foreign exchange losses/(gains) | 85 | 23 | (197) |
Fair value change on derivatives 1 | (58) | 84 | 135 |
Government royalties paid and payable | 2,608 | 3,571 | 3,841 |
Exploration and evaluation expenditure incurred and expensed in the current period | 346 | 399 | 294 |
Depreciation and amortisation expense | 5,540 | 5,295 | 5,061 |
| Impairment net of reversals: | |||
Property, plant and equipment | 106 | 3,833 | 73 |
Goodwill and other intangible assets | 2 | 57 | 2 |
All other operating expenses | 2,074 | 2,124 | 1,764 |
Total expenses | 32,319 | 36,750 | 31,873 |
Loss/(gain) on disposal of subsidiaries and operations 2 | 117 | (915) | (8) |
Other income 3 | (485) | (370) | (386) |
Total other income | (368) | (1,285) | (394) |
135Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
6 Income tax expense
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
| Total taxation expense comprises: | |||
Current tax expense | 7,033 | 7,4 35 | 6,690 |
Deferred tax expense/(benefit) | 177 | (988) | 387 |
Total taxation expense | 7, 210 | 6,447 | 7,077 |
| 2025 | 2024 | 2023 | |
| US$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 | 18,353 | 16,048 | 21,401 |
Tax on profit at Australian prima facie tax rate of 30 per cent | 5,506 | 4,814 | 6,420 |
Derecognition of deferred tax assets and current year tax losses | 1,036 | 666 | 526 |
Tax on remitted and unremitted foreign earnings | 354 | 224 | 137 |
Tax effect of profit/(loss) from equity accounted investments, related impairments and expenses 1 | 78 | 737 | (37) |
Foreign exchange adjustments | 21 | (79) | 94 |
Amounts (over)/under provided in prior years | (57) | (25) | (18) |
Recognition of previously unrecognised tax assets | (127) | (110) | (109) |
Impact of tax rates applicable outside of Australia | (1,132) | (556) | (558) |
Other | 451 | 344 | 236 |
Income tax expense | 6,130 | 6,015 | 6,691 |
Royalty-related taxation (net of income tax benefit) 2 | 1,080 | 432 | 386 |
Total taxation expense | 7, 210 | 6,447 | 7,077 |
1. This item removes the prima facie tax effect on profit/(loss) from equity accounted investments, related impairments and expenses that are net of tax, with the exception of the Samarco
forward exchange derivatives described in note 4 ‘Significant events – Samarco dam failure’, which are taxable.
2. Includes the revaluation of deferred tax balances in the year ended 30 June 2023, following the substantive enactment of the Chilean Royalty Bill, as presented in note 3 ‘Exceptional items’.
Income tax recognised in other comprehensive income is as follows:
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
| Income tax effect of: | |||
| Items that may be reclassified subsequently to the income statement: | |||
| Hedges: | |||
Gains/(losses) taken to equity | (104) | 10 | (29) |
(Gains)/losses transferred to the income statement | 118 | (15) | 45 |
Others | − | − | (11) |
Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement | 14 | (5) | 5 |
| Items that will not be reclassified to the income statement: | |||
Re-measurement (losses)/gains on pension and medical schemes | 3 | (13) | 7 |
Income tax credit/(charge) relating to items that will not be reclassified to the income statement | 3 | (13) | 7 |
Total income tax credit/(charge) relating to components of other comprehensive income 1 | 17 | (18) | 12 |
1. Included within total income tax relating to components of other comprehensive income is US$17 million relating to deferred taxes and US$ nil relating to current taxes (2024: US$(18) million
and US$ nil; 2023: US$12 million and US$ nil).
136 BHP Annual Report 2025
Current tax | Deferred tax | Royalty-related taxation | |
| Current tax is the | Deferred tax is the tax expected to be payable or recoverable on differences between the carrying | Royalties are treated as | |
| expected tax on the | amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the | taxation arrangements | |
| taxable income for the | computation of taxable profit, and is accounted for in accordance with IAS 12/AASB 112 ‘Income Taxes’ | (impacting income tax | |
| year, using tax rates | (IAS 12). | expense/(benefit)) when | |
| and laws enacted or | Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available | they are imposed under | |
| substantively enacted | against which the temporary differences can be utilised. | government authority and | |
| at the reporting date, | the amount payable is | ||
| and any adjustments to | Deferred tax is not recognised for temporary differences relating to: | calculated by reference | |
| tax payable in respect | – | initial recognition of goodwill | to revenue derived (net of |
| of previous years. | – | initial recognition of assets or liabilities in a transaction that is not a business combination and that affects | any allowable deductions) |
| neither accounting nor taxable profit, except where the transaction gives rise to equal and offsetting | after adjustment for | ||
| taxable and deductible temporary differences | temporary differences. | ||
| Obligations arising from | |||
– | investment in subsidiaries, associates and jointly controlled entities where the Group is able to control | royalty arrangements | |
| the timing of the reversal of the temporary difference and it is probable that they will not reverse in the | that do not satisfy these | ||
| foreseeable future | criteria are recognised | ||
| Deferred tax is measured at the tax rates that are expected to be applied when the asset is realised or the | as current liabilities and | ||
| liability is settled, based on the laws that have been enacted or substantively enacted at the reporting date. | included in expenses. | ||
| 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. | |||
137Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
2025 | 2024 | 2023 | ||
Earnings attributable to BHP shareholders (US$M) | 9,019 | 7,897 | 12,921 | |
| Weighted average number of shares (Million) | ||||
– | Basic | 5,073 | 5,068 | 5,064 |
– | Diluted | 5,083 | 5,077 | 5,073 |
| Earnings per ordinary share (US cents) | ||||
– | Basic | 17 7.8 | 155.8 | 255.2 |
– | Diluted | 177.4 | 155.5 | 254.7 |
| Headline earnings per ordinary share (US cents) | ||||
– | Basic | 182.4 | 195.9 | 256.1 |
– | Diluted | 182.0 | 195.6 | 255.7 |
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
Earnings attributable to BHP shareholders | 9,019 | 7,897 | 12,921 |
| Adjusted for: | |||
(Gain)/loss on sales of property, plant and equipment, intangibles and investments | (3) | (29) | (9) |
Impairments of property, plant and equipment and intangibles net of reversals | 154 | 3,905 | 75 |
Loss/(gain) on disposal of subsidiaries and operations | 117 | (915) | − |
Tax effect of above adjustments | (34) | (928) | (17) |
Subtotal of adjustments | 234 | 2,033 | 49 |
Headline earnings | 9,253 | 9,930 | 12,970 |
Diluted headline earnings | 9,253 | 9,930 | 12,970 |
138 BHP Annual Report 2025
Working capital
| 2025 | 2024 | |
| US$M | US$M | |
Trade receivables | 3,081 | 3,687 |
Other receivables | 1,172 | 1,652 |
Total | 4,253 | 5,339 |
| Comprising: | ||
Current | 4,116 | 5,169 |
Non-current | 137 | 170 |
9 Trade and other payables
| 2025 | 2024 | |
| US$M | US$M | |
Trade payables | 5,082 | 5,338 |
Other payables | 1,588 | 1,426 |
Total | 6,670 | 6,764 |
| Comprising: | ||
Current | 6,637 | 6,719 |
Non-current | 33 | 45 |
| 2025 | 2024 | ||
| US$M | US$M | Definitions | |
Raw materials and consumables | 2,677 | 2,305 | Spares, consumables and other supplies yet to be utilised in the production |
| process or in the rendering of services. | |||
Work in progress | 3,186 | 3,516 | Commodities currently in the production process that require further processing |
| by the Group to a saleable form. | |||
Finished goods | 1,115 | 1,218 | Commodities ready-for-sale and not requiring further processing by the Group. |
Total 1 | 6,978 | 7,039 | |
Comprising: | Inventories classified as non-current are not expected to be utilised or sold | ||
Current | 5,538 | 5,828 | within 12 months after the reporting date or within the operating cycle of |
| the business. | |||
Non-current | 1,440 | 1,211 |
139Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
Resource assets
| Land and | Plant and | Other mineral | Assets under | Exploration and | |||
| buildings | equipment | assets | construction | evaluation | Total | ||
| US$M | US$M | US$M | US$M | US$M | US$M | ||
| Net book value – 30 June 2025 | |||||||
At the beginning of the financial year | 7,565 | 34,504 | 12,227 | 17,097 | 236 | 71,629 | |
Additions 1 | 28 | 1,653 | 1,066 | 8,703 | 50 | 11,500 | |
Remeasurements of index-linked freight contracts 2 | − | (210) | − | − | − | (210) | |
Depreciation for the year | (578) | (4,441) | (410) | − | − | (5,429) | |
Net impairments for the year 3 | (7) | (76) | (23) | − | − | (106) | |
Disposals | (1) | (19) | − | − | − | (20) | |
Divestment of subsidiaries and operations | − | (1) | (42) | − | − | (43) | |
Transfers and other movements | 404 | 5,143 | (581) | (5,754) | (76) | (864) | |
At the end of the financial year 4 | 7,411 | 36,553 | 12,237 | 20,046 | 210 | 76,457 | |
– | Cost | 15,617 | 93,385 | 20,359 | 22,002 | 223 | 151,586 |
– | Accumulated depreciation and impairments | (8,206) | (56,832) | (8,122) | (1,956) | (13) | (75,129) |
| Net book value – 30 June 2024 | |||||||
At the beginning of the financial year | 8,140 | 36,654 | 13,304 | 13,481 | 239 | 71,818 | |
Additions 1 | 27 | 1,206 | 795 | 8,840 | 58 | 10,926 | |
Remeasurements of index-linked freight contracts 2 | − | 230 | − | − | − | 230 | |
Depreciation for the year | (637) | (4,287) | (264) | − | − | (5,188) | |
Net impairments for the year 3 | (88) | (1,440) | (930) | (1,365) | (10) | (3,833) | |
Disposals | (1) | (15) | − | − | − | (16) | |
Divestment of subsidiaries and operations 5 | (293) | (1,093) | (23) | (44) | − | (1,453) | |
Transfers and other movements | 417 | 3,249 | (655) | (3,815) | (51) | (855) | |
At the end of the financial year 4 | 7,565 | 34,504 | 12,227 | 17,0 97 | 236 | 71,629 | |
– | Cost | 15,180 | 86,989 | 19,900 | 19,106 | 1,035 | 142,210 |
– | Accumulated depreciation and impairments | (7,615) | (52,485) | (7,673) | (2,009) | (799) | (70,581) |
140 BHP Annual Report 2025
| 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 | When the benefits of stripping activities are realised in the form | When the benefits of stripping activities are improved access to | ||
| measurement criteria | of inventory produced; the associated costs are recorded in | future ore; production costs are capitalised when all the following | ||
| accordance with the Group’s inventory accounting policy. | 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 | Other mineral assets within property, plant and equipment. | Inventory | ||
Depreciation basis | Not applicable | On a component-by-component basis using the units of | ||
| production method based on proven and probable reserves. | ||||
141Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
11 Property, plant and equipment continued
Asset category | Plant and equipment |
Buildings – Mine related property | UoP based upon reserves, otherwise SL over 25–50 years |
Plant and equipment | UoP based upon reserves, otherwise SL over 3–30 years |
Mineral rights | UoP based upon reserves |
Capitalised exploration, evaluation and development expenditure | UoP based upon reserves |
2025 | 2024 | ||||||
| Other | Other | ||||||
| Goodwill | intangibles | Total | Goodwill | intangibles | Total | ||
| US$M | US$M | US$M | US$M | US$M | US$M | ||
| Net book value | |||||||
At the beginning of the financial year | 1,341 | 377 | 1,718 | 1,389 | 221 | 1,610 | |
Additions | − | 160 | 160 | − | 101 | 101 | |
Amortisation for the year | − | (111) | (111) | − | (107) | (107) | |
Impairments for the year 1 | − | (2) | (2) | (50) | (7) | (57) | |
Disposals | − | (17) | (17) | − | (12) | (12) | |
Divestment of subsidiaries and operations 2 | − | − | − | − | (45) | (45) | |
Transfers and other movements | − | 176 | 176 | 2 | 226 | 228 | |
At the end of the financial year | 1,341 | 583 | 1,924 | 1,341 | 377 | 1,718 | |
– | Cost | 1,391 | 2,127 | 3,518 | 1,391 | 1,798 | 3,189 |
– | Accumulated amortisation and impairments | (50) | (1,544) | (1,594) | (50) | (1,421) | (1,471) |
142 BHP Annual Report 2025
| 2025 | |||||
| Property, | Goodwill | Equity- | |||
| plant and | and other | accounted | |||
| equipment | intangibles | investment 1 | Total | ||
Cash generating unit | Segment | US$M | US$M | US$M | US$M |
Other | Various | 196 | 2 | 63 | 261 |
Total impairment of non-current assets | 196 | 2 | 63 | 261 | |
Western Australia Nickel 2 | Group and unallocated | (90) | − | − | (90) |
Reversal of impairment | (90) | − | − | (90) | |
Net impairment of non-current assets | 106 | 2 | 63 | 171 |
| 2024 | |||||
| Property, | Goodwill | Equity- | |||
| plant and | and other | accounted | |||
| equipment | intangibles | investment | Total | ||
Cash generating unit | Segment | US$M | US$M | US$M | US$M |
Western Australia Nickel | Group and unallocated | 3,744 | 56 | – | 3,800 |
Other | Various | 89 | 1 | – | 90 |
Total impairment of non-current assets | 3,833 | 57 | – | 3,890 | |
Reversal of impairment | – | – | – | – | |
Net impairment of non-current assets | 3,833 | 57 | – | 3,890 |
| global nickel market that saw a sharp decline in forward nickel prices in the short to medium term, escalation in capital costs for Western Australia Nickel, |
143Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
13 Impairment of non-current assets continued
| 2025 | 2024 | |
| Cash generating unit | US$M | US$M |
Copper SA | 1,154 | 1,154 |
Other | 187 | 187 |
Total goodwill | 1,341 | 1,341 |
| Copper SA goodwill | |
| Impairment | The Group performed an impairment test of the Copper SA Group of CGUs, including goodwill, as at 30 June 2025 and an |
| test conclusion | impairment charge was not required. |
| How did the | Goodwill of US$1,010 million and US$144 million in relation to the acquisitions of WMC Resources Ltd (2005) and OZ Minerals Ltd |
| goodwill arise? | (2023), respectively. |
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 | The valuation of Copper SA exceeded its carrying amount by approximately US$10.5 billion (2024:US$8.4 billion) and is most |
| and sensitivities | sensitive to changes in copper commodity price, production volumes, operating costs and discount rates. It is considered that there |
| are no reasonably possible changes in these key assumptions that would, in isolation, result in the estimated recoverable amount | |
| being equal to the carrying amount. The valuation applied a post-tax real discount rate of 7.0 per cent (2024: 7.0 per cent). | |
| Key judgements and estimates that have been applied in the FVLCD valuation are disclosed further below. |
144 BHP Annual Report 2025
14 Deferred tax balances
The movement for the year in the Group’s net deferred tax position is as follows:
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
| Net deferred tax (liability)/asset | |||
At the beginning of the financial year | (3,265) | (4,243) | (3,007) |
Acquisition of subsidiaries and operations 1 | − | – | (867) |
Income tax (charge)/credit recorded in the income statement 2,3 | (177) | 988 | (387) |
Income tax (charge)/credit recorded directly in equity | (17) | (6) | 6 |
Divestment of subsidiaries and operations | 14 | (3) | – |
Other movements | 17 | (1) | 12 |
At the end of the financial year | (3,428) | (3,265) | (4,243) |
1. Relates to the acquisition of OZL on 2 May 2023.
2. Includes US$1,125 million income tax credit in the year ended 30 June 2024 as a result of an impairment of Western Australia Nickel Assets.
3. Includes US$(283) million revaluation of deferred tax balances in the year ended 30 June 2023, following the substantive enactment of the Chilean Royalty Bill. Refer to note 3 ‘Exceptional
items’ for more information.
For recognition and measurement of deferred tax assets and liabilities, refer to note 6 ‘Income tax expense’. The 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 2025.
The composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense charged/(credited)
to the income statement is as follows:
Deferred tax assets | Deferred tax liabilities | Charged/(credited) to the income statement | |||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | US$M | US$M | US$M | US$M | |
| Type of temporary difference | |||||||
Depreciation 1 | (893) | (756) | 5,284 | 5,221 | 213 | (894) | 452 |
Exploration expenditure | 17 | 14 | − | − | (2) | (2) | (2) |
Employee benefits | 35 | 23 | (477) | (407) | (78) | 6 | (94) |
Closure and rehabilitation | 195 | 155 | (1,826) | (1,770) | (96) | (29) | (296) |
Other provisions | 47 | 55 | (202) | (196) | 2 | 23 | 4 |
Deferred income | − | − | (9) | (23) | 14 | (9) | 37 |
Deferred charges | (31) | (55) | 551 | 522 | 5 | (148) | 85 |
Investments, including foreign tax credits | 281 | 274 | 516 | 411 | 96 | (6) | (54) |
Foreign exchange gains and losses | (14) | (9) | 85 | 80 | 9 | (115) | 42 |
Tax losses | 491 | 364 | (38) | (84) | (80) | 40 | 37 |
Lease liability 1 | 23 | 9 | (735) | (730) | (19) | 45 | (83) |
Other | (73) | (7) | 357 | 308 | 113 | 101 | 259 |
Total | 78 | 67 | 3,506 | 3,332 | 177 | (988) | 387 |
1. Includes deferred tax associated with the recognition of right-of-use assets and lease liabilities on adoption of IFRS 16. Refer to note 22 ‘Leases’.
| 2025 | 2024 | |
| US$M | US$M | |
| Unrecognised deferred tax assets | ||
Tax losses and tax credits 1 | 10,159 | 9,126 |
Investments in subsidiaries 2 | 1,681 | 1,533 |
Mineral rights 3 | 3,224 | 3,216 |
Other deductible temporary differences 4 | 1,965 | 1,978 |
Total unrecognised deferred tax assets | 17,029 | 15,853 |
| Unrecognised deferred tax liabilities | ||
Investments in subsidiaries 2 | 2,349 | 2,307 |
Total unrecognised deferred tax liabilities | 2,349 | 2,307 |
145
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
14 Deferred tax balances continued
| 2025 | 2024 | |
| Year of expiry | US$M | US$M |
| Income tax losses | ||
Not later than one year | 14 | 28 |
Later than one year and not later than two years | 16 | 10 |
Later than two years and not later than five years | 46 | 43 |
Later than five years and not later than 10 years | 872 | 652 |
Later than 10 years and not later than 20 years | 623 | 1,003 |
Unlimited | 5,752 | 5,620 |
7,323 | 7,356 | |
| Capital tax losses | ||
Not later than one year | − | − |
Later than two years and not later than five years | − | − |
Unlimited | 13,371 | 13,494 |
Gross amount of tax losses not recognised | 20,694 | 20,850 |
Tax effect of total losses not recognised | 5,621 | 5,589 |
| 2025 | 2024 | |
| US$M | US$M | |
At the beginning of the financial year | 9,837 | 9,887 |
| Capitalised amounts for operating sites: | ||
Change in estimate | 548 | 463 |
Exchange translation | (61) | (58) |
| Adjustments charged/(credited) to the income statement: | ||
Change in estimate | 112 | 85 |
Exchange translation | (11) | (47) |
| Other adjustments to the provision: | ||
Amortisation of discounting impacting net finance costs | 510 | 556 |
Divestment of subsidiaries and operations 1 | − | (652) |
Expenditure on closure and rehabilitation activities | (468) | (395) |
Other movements | 1 | (2) |
At the end of the financial year | 10,468 | 9,837 |
| Comprising: | ||
Current | 662 | 610 |
Non-current | 9,806 | 9,227 |
Operating sites | 6,908 | 6,349 |
Closed sites | 3,560 | 3,488 |
| 2025 | 2024 | |
| Proportion of the Group’s undiscounted forecast cashflows | % | % |
In one year or less | 4 | 3 |
In more than one year but not more than two years | 3 | 3 |
In more than two years but not more than five years | 10 | 8 |
In more than five years but not more than ten years | 15 | 15 |
In more than ten years | 68 | 71 |
Total | 100 | 100 |
146
BHP Annual Report 2025
Initial recognition and measurement | Subsequent measurement | |
| Closure and rehabilitation provisions | The closure and rehabilitation asset, recognised within property, plant and equipment, is depreciated over the life of | |
| are initially recognised when an | the operations. The value of the provision is progressively increased over time as the effect of discounting unwinds, | |
| environmental disturbance first occurs. | resulting in an expense recognised in net finance costs. | |
| The individual site provisions are an | The closure and rehabilitation provision is reviewed at each reporting date to assess if the estimate continues to reflect | |
estimate of the expected value of future cash flows required to close the | the best estimate of the obligation. If necessary, the provision is remeasured to account for factors such as: | |
| relevant site using current standards | – | additional disturbance during the period |
| and techniques and taking into account | – | revisions to estimated reserves, resources and lives of operations including any changes to expected operating |
| risks and uncertainties. Individual site | lives arising from the Group’s latest assessment of the potential impacts of climate change and the transition to a | |
| provisions are discounted to their present | low-carbon economy | |
| value using currency specific discount | – | developments in technology |
rates aligned to the estimated timing of cash outflows. | – | changes to regulatory requirements and environmental management strategies |
| When provisions for closure and | – | changes in the estimated extent and costs of anticipated activities, including the effects of inflation and movements |
| rehabilitation are initially recognised, the | in foreign exchange rates | |
| corresponding cost is capitalised as an | – | movements in interest rates affecting the discount rate applied |
| asset, representing part of the cost of | Changes to the closure and rehabilitation estimate for operating sites are added to, or deducted from, the related | |
acquiring the future economic benefits of the operation. | 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. | ||
147
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
Phase | Area of potential Financial Statement impact | |
Exploration and acquisition | – | Portfolio decisions |
Development and mining/process and logistics | – | Transition risks and asset carrying values |
– | Physical risks and asset carrying values | |
– | Application of carbon pricing assumptions on asset valuations | |
– | 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 |
148 BHP Annual Report 2025
CY2040 | Price | CY2050 | Price | |
| Price source | (real, US$/tonne) | (real, US$/tonne) | ||
| Wood Mackenzie Net Zero (1.5°C) | 171 | 162 | ||
| Scenario (July 2025) |
149Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
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:
– Inventory – where the intended use is uncertain or the carbon credit is
available for trading purposes (either separately or ‘bundled’ with sale
of a commodity) (FY2025: nil, FY2024: nil); or
– Intangible asset – held for regulatory or voluntary surrender
(FY2025: US$19 million, FY2024: US$23 million)
The Group has also recognised a prepayment of US$32 million for the
future delivery of carbon credits.
Obligations arising from GHG emission schemes, such as the Australian
Safeguard Mechanism are recognised as a liability at the reporting date
when the Group has an obligation (FY2025: US$8 million, FY2024:
US$17 million).
During FY2025, the Group surrendered approximately US$17 million in
carbon credits (~724,000 tCO
2
-e) to satisfy Australian operated assets’
FY2024 Safeguard Mechanism obligations (FY2024: US$1 million,
47,000 tCO
2
-e). There were no voluntary surrenders.
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 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.
A key component of the Group’s operational decarbonisation strategy
is the displacement of diesel within the Group’s operations, particularly
the haul truck fleet. The Group is supporting the development of new
equipment by original equipment manufacturers (OEMs), including
entering into partnerships focused on the development and trialling of
electric locomotives and haul trucks. In FY2025, the pace of development
of some decarbonisation technology has slowed, particularly relating to
delays in the displacement of diesel used for materials movement.
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 estimated remaining useful lives of the
Group’s existing fleet assets in FY2025.
Expenditure on operational decarbonisation
The Group set a medium-term target to reduce its operational GHG
emissions (Scopes 1 and 2 from the Group’s operated assets) by at
least 30 per cent from the Group’s FY2020 baseline levels by FY2030
and a long-term goal to achieve net zero operational GHG emissions
by CY2050. The FY2020 baseline for the medium-term target and
subsequent performance is adjusted for acquisitions, divestments
and methodology changes.
Operational decarbonisation activities during FY2025 continued to focus
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.
In addition to operational expenditure on renewable energy, the Group
recognised the following in relation to power purchase agreements as
at 30 June 2025:
– US$43 million of lease liabilities (2024: US$44 million)
– financial derivatives with a fair value of approximately US$37 million
(2024: US$92 million)
Following the slowdown in the pace of development of diesel displacement
projects for materials movement, the Group now expects that the majority
of expenditure associated with the introduction of diesel displacement
technologies will be delayed into the 2030s. Considering these delays, the
estimated spend to execute the Group’s operational decarbonisation plans
over the decade to FY2030 is US$0.5 billion (reflecting capital expenditure
and lease payments). This amount reflects the incremental cost to facilitate
the Group’s reduction in operational GHG emissions.
The Group remains on track to meet its medium-term target to reduce
operational GHG emissions by at least 30 per cent by FY2030.
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’.
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.
16 Climate change continued
150 BHP Annual Report 2025
Expenditure to support value chain decarbonisation
The Group continues to invest, including through partnership with others,
in potential GHG emissions reduction opportunities in its value chain through
technology innovation and development to support GHG emissions reductions
by steelmaking customers and in the maritime industry.
While the Group seeks to influence reduction opportunities, Scope 3
emissions occur outside of the Group’s direct control. Reduction pathways
are dependent on the development, and upstream or downstream
deployment of, solutions and/or supportive policy and improvements in
Scope 3 emissions measurement. Where possible, the financial impact of
the Group’s activities in support of the development of Scope 3 emissions
reduction pathways is reflected in these Financial Statements. In FY2025,
this included expenditure of approximately US$60 million to support
collaborative partnerships, consortiums, research and development
and BHP Ventures investments.
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 physical and transition climate-related 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:
– Acknowledging the wide range of potential energy transition impacts
for steelmaking coal demand and the impact of any significant changes
in demand on mine lives, for illustrative purposes only, a one-year
change in the mine life of the Group’s steelmaking coal assets would,
in isolation, change the closure and rehabilitation provisions for those
assets by approximately US$40 million.
– The Group received approval to continue mining at NSWEC for an
additional four years, as part of the planned closure of the site in
June 2030. As such, while the provision is subject to estimation and
assumptions, the timing of closure is no longer considered materially
susceptible to potential long-term climate-related transition risks.
Further, while the Group is evaluating the approach to the closure
of NSWEC and potential expenditure relating to an equitable change
and transition for its workforce, the Group continues to engage with
its employees and the community to understand and develop the most
appropriate transition plan. As the Group’s approach is currently under
development with impacted parties, it is not yet supported by a detailed,
formal plan or commitment and therefore no provision relating to equitable
change and transition costs can be recognised as at 30 June 2025.
More detail on the key judgements and estimates impacting the Group’s
closure and rehabilitation provisions is presented in note 15 ‘Closure
and rehabilitation provisions’.
151Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
Capital structure
| 2025 | 2024 | 2023 | |
| shares | shares | shares | |
| Share capital issued – BHP Group Limited | |||
Opening number of shares | 5,071,530,817 | 5,065,820,556 | 5,062,323,190 |
Issue of shares | 4,461,418 | 5,710,261 | 3,497,366 |
Purchase of shares by ESOP Trusts | (4,438,680) | (5,687,667) | (6,442,571) |
Employee share awards exercised following vesting | 4,994,832 | 5,841,767 | 6,081,843 |
Movement in treasury shares under Employee Share Plans | (556,152) | (154,100) | 360,728 |
Closing number of shares | 5,075,992,235 | 5,071,530,817 | 5,065,820,556 |
| Comprising: | |||
Shares held by the public | 5,075,290,713 | 5,070,273,143 | 5,064,408,782 |
Treasury shares | 701,522 | 1,257,674 | 1,411,774 |
| 2025 | 2024 | 2023 | ||
| US$M | US$M | US$M | Recognition and measurement | |
Common control reserve | (1,603) | (1,603) | (1,603) | 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 | 188 | 166 | 171 | 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. | ||||
| Once exercised, the difference between the accumulated fair value of | ||||
| the awards and their historical on-market purchase price is recognised | ||||
| in retained earnings. | ||||
Cash flow hedge reserve | (16) | 27 | 10 | 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 | 4 | (7) | (1) | 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 | (14) | (14) | (14) | The foreign currency translation reserve represents exchange |
| translation reserve | differences arising from the translation of non-US dollar functional | |||
| currency operations within the Group into US dollars. | ||||
Equity investments reserve | 2 | (21) | 9 | 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 | 1,437 | 1,437 | 1,441 | The non-controlling interest contribution reserve represents the excess |
| contribution reserve | of consideration received over the book value of net assets attributable | |||
| to equity instruments when acquired by non-controlling interests. | ||||
Total reserves | (2) | (15) | 13 |
152
BHP Annual Report 2025
2025 | 2024 | |||||
| Other | Other | |||||
| Minera | individually | Minera | individually | |||
| Escondida | immaterial | Escondida | immaterial | |||
| US$M | Limitada | subsidiaries | Total | Limitada | subsidiaries | Total |
Group share (per cent) | 57.5 | 57.5 | ||||
Current assets | 3,630 | 3,683 | ||||
Non-current assets | 13,939 | 12,639 | ||||
Current liabilities | (2,074) | (2,484) | ||||
Non-current liabilities | (5,917) | (4,989) | ||||
Net assets | 9,578 | 8,849 | ||||
Net assets attributable to NCI | 4,071 | 482 | 4,553 | 3,761 | 548 | 4,309 |
Revenue | 13,177 | 10,013 | ||||
Profit after taxation | 4,237 | 2,894 | ||||
Other comprehensive income | (9) | 13 | ||||
Total comprehensive income | 4,228 | 2,907 | ||||
Profit after taxation attributable to NCI | 1,801 | 323 | 2,124 | 1,230 | 474 | 1,704 |
Other comprehensive income attributable to NCI | (4) | (1) | (5) | 6 | (2) | 4 |
Net operating cash flow | 6,263 | 4,180 | ||||
Net investing cash flow | (2,390) | (1,806) | ||||
Net financing cash flow | (3,413) | (2,415) | ||||
Dividends paid to NCI | 1,488 | 385 | 1,873 | 993 | 431 | 1,424 |
19 Dividends
Year ended 30 June 2025 | Year ended 30 June 2024 | Year ended 30 June 2023 | ||||
| Per share | Total | Per share | Total | Per share | Total | |
| US cents | US$M | US cents | US$M | US cents | US$M | |
| Dividends paid during the period | ||||||
Prior year final dividend | 74 | 3,749 | 80 | 4,065 | 175 | 8,858 |
Interim dividend | 50 | 2,537 | 72 | 3,647 | 90 | 4,562 |
124 | 6,286 | 152 | 7,712 | 265 | 13,420 |
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. Proceeds of US$107 million were received on derivative instruments
as part of the funding of the dividend paid during the period and disclosed in ‘Proceeds from cash management related instruments’ in the Consolidated
Cash Flow Statement.
Each American Depositary Share (ADS) represents two ordinary shares of BHP Group Limited. Dividends determined on each ADS represent twice the
dividend determined on each BHP Group Limited ordinary share.
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 19 August 2025, BHP Group Limited determined a final dividend of 60 US cents per share
(US$3,045 million), which will be paid on 25 September 2025 (30 June 2024: final dividend of 74 US cents per share – US$3,752 million; 30 June 2023:
final dividend of 80 US cents per share – US$4,052 million).
BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent.
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
Franking credits as at 30 June | 10,089 | 9,165 | 7,953 |
Franking credits arising on the future (refund)/payment of taxes relating to the period | (275) | 83 | (261) |
Total franking credits available 1 | 9,814 | 9,248 | 7,692 |
| 1. The payment of the final 2025 dividend determined after 30 June 2025 will reduce the franking account balance by US$1,305 million. |
153Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
| 2025 | 2024 | |
| US$M | US$M | |
At the beginning of the financial year | 710 | 769 |
Dividends determined | 6,286 | 7,712 |
| Charge/(credit) for the year: | ||
Underlying | 185 | 180 |
Discounting | 7 | 2 |
Exchange variations | 103 | (42) |
Released during the year | (73) | (120) |
Utilisation | (90) | (92) |
Dividends paid | (6,403) | (7,675) |
Transfers and other movements | (19) | (24) |
At the end of the financial year | 706 | 710 |
| Comprising: | ||
Current | 310 | 220 |
Non-current | 396 | 490 |
Financial management
21 Net debt
The Group seeks to maintain a strong balance sheet and deploys its capital with reference to the Capital Allocation Framework.
The Group monitors capital using the net debt balance and the gearing ratio, being the ratio of net debt to net debt plus net assets.
The net debt definition includes the fair value of derivative financial instruments used to hedge cash and borrowings which reflects the Group’s risk
management strategy of reducing the volatility of net debt caused by fluctuations in foreign exchange and interest rates.
Under IFRS 16/AASB 16 ‘Leases’, certain vessel lease contracts are required to be remeasured at each reporting date to the prevailing freight index.
While these liabilities are included in the Group interest bearing liabilities, they are excluded from the net debt calculation as they do not align with how
the Group assesses net debt for decision making in relation to the Capital Allocation Framework. In addition, the freight index has historically been volatile
which creates significant short-term fluctuation in these liabilities.
2025 | 2024 | |||
US$M | Current | Non-current | Current | Non-current |
| Interest bearing liabilities | ||||
Bank loans | 40 | 3,691 | 540 | 2,070 |
Notes and debentures | 1,316 | 16,337 | 848 | 14,084 |
Lease liabilities | 641 | 2,312 | 686 | 2,430 |
Bank overdraft and short-term borrowings | 1 | − | 3 | − |
Other | 20 | 138 | 7 | 50 |
Total interest bearing liabilities | 2,018 | 22,478 | 2,084 | 18,634 |
Less: Lease liability associated with index-linked freight contracts | 185 | 148 | 267 | 244 |
| Less: Cash and cash equivalents | ||||
Cash | 7,2 44 | − | 8,150 | − |
Short-term deposits | 4,650 | − | 4,351 | − |
Less: Total cash and cash equivalents | 11,894 | − | 12,501 | − |
| Less: Derivatives included in net debt | ||||
Net debt management related instruments 1 | 13 | (608) | (171) | (1,224) |
Net cash management related instruments 2 | (60) | − | (19) | − |
Less: Total derivatives included in net debt | (47) | (608) | (190) | (1,224) |
Net debt | 12,924 | 9,120 | ||
Net assets | 52,218 | 49,120 | ||
Gearing | 19.8% | 15.7% |
154 BHP Annual Report 2025
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
Total cash and cash equivalents | 11,894 | 12,501 | 12,428 |
Bank overdrafts and short-term borrowings | (1) | (3) | (5) |
Total cash and cash equivalents, net of overdrafts | 11,893 | 12,498 | 12,423 |
Interest bearing liabilities | Cash and cash equivalents | |||
| 2025 | 2024 | 2025 | 2024 | |
| US$M | US$M | US$M | US$M | |
USD | 19,292 | 15,203 | 4,507 | 4,445 |
EUR | 2,505 | 2,440 | 8 | 5 |
AUD | 1,163 | 1,265 | 3,611 | 3,840 |
GBP | 1,080 | 1,613 | 25 | 711 |
CAD | 3 | 5 | 3,369 | 3,259 |
Other | 453 | 192 | 374 | 241 |
Total | 24,496 | 20,718 | 11,894 | 12,501 |
155Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
21 Net debt continued
| Bank loans, | Expected | Derivatives | Other | Obligations | Trade | ||
| 2025 | debentures | future interest | related to | financial | under lease | and other | |
| US$M | and other loans | payments | debentures | liabilities | liabilities 1 | payables 2 | Total |
| Due for payment: | |||||||
In one year or less or on demand | 1,380 | 1,062 | 129 | 214 | 787 | 6,547 | 10,119 |
In more than one year but not more than two years | 1,757 | 960 | 56 | 82 | 603 | 11 | 3,469 |
In more than two years but not more than five years | 7,316 | 2,267 | 151 | 253 | 938 | 19 | 10,944 |
In more than five years | 11,959 | 4,751 | 1,229 | − | 1,665 | 3 | 19,607 |
Total | 22,412 | 9,040 | 1,565 | 549 | 3,993 | 6,580 | 4 4,139 |
Carrying amount | 21,543 | − | 1,056 | 522 | 2,953 | 6,580 | 32,654 |
| Bank loans, | Expected | Derivatives | Other | Obligations | Trade | ||
| 2024 | debentures | future interest | related to | financial | under lease | and other | |
| US$M | and other loans | payments | debentures | liabilities | liabilities 1 | payables 2 | Total |
| Due for payment: | |||||||
In one year or less or on demand | 1,402 | 884 | 485 | 333 | 836 | 6,618 | 10,558 |
In more than one year but not more than two years | 1,362 | 827 | 171 | 67 | 591 | 15 | 3,033 |
In more than two years but not more than five years | 4,960 | 1,923 | 377 | 233 | 1,012 | 27 | 8,532 |
In more than five years | 10,999 | 4,784 | 1,131 | 163 | 1,761 | 3 | 18,841 |
Total | 18,723 | 8,418 | 2,164 | 796 | 4,200 | 6,663 | 40,964 |
Carrying amount | 17,602 | − | 1,513 | 758 | 3,116 | 6,663 | 29,652 |
22 Leases
Movements in the Group’s lease liabilities during the year are as follows:
| 2025 | 2024 | |
| US$M | US$M | |
At the beginning of the financial year | 3,116 | 3,019 |
Additions | 870 | 593 |
Remeasurements of index-linked freight contracts | (297) | 230 |
Lease payments | (881) | (837) |
Foreign exchange movement | (13) | (16) |
Amortisation of discounting | 169 | 181 |
Divestment of subsidiaries and operations 1 | − | (60) |
Transfers and other movements | (11) | 6 |
At the end of the financial year | 2,953 | 3,116 |
| Comprising: | ||
Current liabilities | 641 | 686 |
Non-current liabilities | 2,312 | 2,430 |
1. Relates to the divestment of the Blackwater and Daunia mines completed on 2 April 2024.
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 10 years and vessels from four to 10 years. Other leases include port facilities, various equipment and vehicles.
The lease contracts contain a wide range of different terms and conditions including extension and termination options and variable lease payments.
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 2025, commitments for leases not yet commenced based on undiscounted contractual amounts were US$844 million (2024: US$1,170 million).
156 BHP Annual Report 2025
2025 | 2024 | ||||||
| Land and | Plant and | Land and | Plant and | ||||
| buildings | equipment | Total | buildings | equipment | Total | ||
| US$M | US$M | US$M | US$M | US$M | US$M | ||
| Net book value | |||||||
At the beginning of the financial year | 490 | 2,218 | 2,708 | 573 | 2,236 | 2,809 | |
Additions | 26 | 844 | 870 | 26 | 567 | 593 | |
Remeasurements of index-linked freight contracts | − | (210) | (210) | – | 230 | 230 | |
Depreciation expensed during the period | (75) | (642) | (717) | (79) | (638) | (717) | |
Impairments for the year | − | − | − | – | (140) | (140) | |
Divestment of subsidiaries and operations 1 | − | − | − | (30) | (40) | (70) | |
Transfers and other movements | (2) | 4 | 2 | – | 3 | 3 | |
At the end of the financial year | 439 | 2,214 | 2,653 | 490 | 2,218 | 2,708 | |
– | Cost | 764 | 4,690 | 5,454 | 742 | 4,479 | 5,221 |
– | Accumulated depreciation and impairments | (325) | (2,476) | (2,801) | (252) | (2,261) | (2,513) |
Right-of-use assets are included within the underlying asset classes in Property, plant and equipment. Refer to note 11 ‘Property, plant and equipment’.
Amounts recorded in the income statement and the cash flow statement for the year were:
| 2025 | 2024 | 2023 | ||
| US$M | US$M | US$M | Included within | |
| Income statement | ||||
Depreciation of right-of-use assets | 717 | 717 | 533 | Profit from operations |
Short-term, low-value and variable lease costs 1 | 844 | 916 | 795 | Profit from operations |
Interest on lease liabilities | 169 | 181 | 130 | Financial expenses |
| Cash flow statement | ||||
Principal lease payments | 712 | 656 | 576 | Cash flows from financing activities |
Lease interest payments | 169 | 181 | 130 | Cash flows from operating activities |
1. Relates to US$777 million of variable lease costs (2024: US$792 million; 2023: US$714 million), US$43 million of short-term lease costs (2024: US$96 million; 2023: US$47 million) and
US$24 million of low-value lease costs (2024: US$28 million; 2023: US$34 million). Variable lease costs include contracts for hire of mining service equipment, drill rigs and transportation
services. These contracts contain variable lease payments based on usage and asset performance.
157Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
22 Leases continued
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
| Financial expenses | |||
| Interest expense using the effective interest rate method: | |||
Interest on bank loans, overdrafts and all other borrowings | 1,325 | 1,467 | 997 |
Interest capitalised at 5.97% (2024: 6.82%; 2023: 5.71%) 1 | (595) | (530) | (271) |
Interest on lease liabilities | 169 | 181 | 130 |
Discounting on provisions and other liabilities | 975 | 1,064 | 1,293 |
| Other gains and losses: | |||
Fair value change on hedged loans | 263 | (214) | (803) |
Fair value change on hedging derivatives | (290) | 188 | 691 |
Exchange variations on net debt | (94) | 27 | 9 |
Other | 18 | 15 | 14 |
Total financial expenses | 1,771 | 2,198 | 2,060 |
| Financial income | |||
Interest income | (603) | (709) | (529) |
Other | (57) | − | − |
Total financial income | (660) | (709) | (529) |
Net finance costs | 1,111 | 1,489 | 1,531 |
158 BHP Annual Report 2025
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 | Execution of transactions within | |
| investments or capital projects will be executed if necessary to support the Group’s strategic objectives. | 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 | Measuring and reporting the | |
| where a relevant derivatives market exists, financial instruments may be executed as an economic hedge to align the | exposure in customer commodity | |
| revenue price exposure with the index target and US dollars. | contracts and issued debt | |
| instruments. | ||
| 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 | Executing hedging derivatives | |
| may be executed to align the debt exposure with the Group’s functional currency of US dollars and/or to swap to a floating | to align the total group exposure | |
| interest rate. | to the index target. | |
| Where short-term cash deposits and other monetary items are denominated in a currency other than US dollars, | Execution of transactions within | |
| derivative financial instruments may be executed to align the foreign exchange exposure to the Group’s functional | approved mandates. | |
| currency of US dollars. | ||
3 | Strategic financial transactions | |
| Opportunistic transactions may be executed with financial instruments to capture value from perceived market over/ | Execution of transactions within | |
| under valuations. | approved mandates. |
159Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
24 Financial risk management continued
| 2025 | 2024 | |
| Net financial (liabilities)/assets – by currency of denomination | US$M | US$M |
AUD | (4,181) | (3,850) |
CLP | (924) | (150) |
CAD | (361) | (543) |
EUR | (89) | 239 |
GBP | (28) | 323 |
BRL | 337 | (29) |
Other | 123 | 72 |
Total | (5,123) | (3,938) |
160 BHP Annual Report 2025
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 |
IFRS 13 Fair value hierarchy | Level 1 | Level 2 | Level 3 |
Valuation inputs | Based on quoted prices (unadjusted) | Based on inputs other than quoted | Based on inputs not observable in the |
| in active markets for identical financial | prices included within Level 1 that are | market using appropriate valuation | |
| assets and liabilities. | observable for the financial asset or | models, including discounted cash | |
| liability, either directly (i.e. as unquoted | flow modelling. | ||
| prices) or indirectly (i.e. derived | |||
| from prices). |
161
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
24 Financial risk management continued
| IFRS 13 Fair value | 2025 | 2024 | ||||
hierarchy Level 1 | IFRS 9 Classification | US$M | US$M | |||
Current cross currency and interest rate swaps 2 | 2 | Fair value through profit or loss | 13 | 5 | ||
Current other derivative contracts 3 | 2,3 | Fair value through profit or loss | 275 | 118 | ||
Current other financial assets 4 | Amortised cost | 236 | 234 | |||
Current other investments 5 | 1,2 | Fair value through profit or loss | 37 | 24 | ||
Non-current cross currency and interest rate swaps 2 | 2 | Fair value through profit or loss | 448 | 113 | ||
Non-current other derivative contracts 3 | 2,3 | Fair value through profit or loss | 158 | 103 | ||
Non-current other financial assets 6 | 3 | Fair value through profit or loss | 122 | 195 | ||
Non-current other financial assets 4,7 | Amortised cost | 191 | 398 | |||
Non-current investment in shares | 1,3 | Fair value through other comprehensive income | 64 | 201 | ||
Non-current other investments 5 | 1,2 | Fair value through profit or loss | 139 | 219 | ||
Total other financial assets | 1,683 | 1,610 | ||||
Cash and cash equivalents | Amortised cost | 11,894 | 12,501 | |||
Trade and other receivables 8 | Amortised cost | 1,195 | 1,597 | |||
Provisionally priced trade receivables | 2 | Fair value through profit or loss | 2,581 | 3,250 | ||
Total financial assets | 17,35 | 3 | 18,958 | |||
Non-financial assets | 91,437 | 83,404 | ||||
Total assets | 108,790 | 102,362 | ||||
Current cross currency and interest rate swaps 2 | 2 | Fair value through profit or loss | − | 176 | ||
Current other derivative contracts | 2 | Fair value through profit or loss | 130 | 241 | ||
Current other financial liabilities 9 | Amortised cost | 84 | 95 | |||
Non-current cross currency and interest rate swaps 2 | 2 | Fair value through profit or loss | 1,056 | 1,337 | ||
Non-current other derivative contracts | 2 | Fair value through profit or loss | − | 54 | ||
Non-current other financial liabilities 9 | Amortised cost | 308 | 368 | |||
Total other financial liabilities | 1,578 | 2,271 | ||||
Trade and other payables 10 | Amortised cost | 6,087 | 6,049 | |||
Provisionally priced trade payables | 2 | Fair value through profit or loss | 493 | 614 | ||
Bank overdrafts and short-term borrowings 11 | Amortised cost | 1 | 3 | |||
Bank loans 11 | Amortised cost | 3,731 | 2,610 | |||
Notes and debentures 11 | Amortised cost | 17,65 | 3 | 14,932 | ||
Lease liabilities 12 | 2,953 | 3,116 | ||||
Other 11 | Amortised cost | 158 | 57 | |||
Total financial liabilities | 32,654 | 29,652 | ||||
Non-financial liabilities | 23,918 | 23,590 | ||||
Total liabilities | 56,572 | 53,242 | ||||
162 BHP Annual Report 2025
| Carrying | Fair value of derivatives | |||||||||
| amount | Hedged | |||||||||
| of hedged | Foreign | Recognised | Recognised | Recognised | value | |||||
| loans, | De- | exchange | in cash flow | in cost of | in the | Accrued | of loans, | |||
| 2025 | notes and | designated | notional at | Interest | hedging | hedging | income | and other | notes and | |
| US$M | debentures | hedges 1 | spot rates | rate risk | reserve | reserve | statement 2 | cash flows | Total | debentures 3 |
A | B | C | D | E | F | G | H | C to H | A + B + C + D | |
USD | 15,120 | 49 | − | 249 | − | − | (19) | (51) | 179 | 15,418 |
GBP | 1,062 | 40 | 251 | 258 | (19) | 5 | (64) | 37 | 468 | 1,611 |
EUR | 2,481 | 97 | 122 | 50 | 41 | (11) | (51) | (203) | (52) | 2,750 |
Total | 18,663 | 186 | 373 | 557 | 22 | (6) | (134) | (217) | 595 | 19,779 |
| Fair value of derivatives | ||||||||||
| Carrying | Foreign | Recognised | Recognised | Recognised | Hedged | |||||
| amount of | De- | exchange | in cash flow | in cost of | in the | Accrued | value of | |||
| 2024 | notes and | designated | notional at | Interest | hedging | hedging | income | and other | notes and | |
| US$M | debentures | hedges 1 | spot rates | rate risk | reserve | reserve | statement 2 | cash flows | Total | debentures 3 |
A | B | C | D | E | F | G | H | C to H | A + B + C + D | |
USD | 10,928 | 52 | − | 446 | − | − | − | 6 | 452 | 11,426 |
GBP | 1,595 | 43 | 521 | 204 | (13) | 3 | (72) | 30 | 673 | 2,363 |
EUR | 2,409 | 125 | 367 | 134 | (27) | 7 | 2 | (213) | 270 | 3,035 |
Total | 14,932 | 220 | 888 | 784 | (40) | 10 | (70) | (177) | 1,395 | 16,824 |
163Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
24 Financial risk management continued
| 2025 | Cash flow hedging reserve | Cost of hedging reserve | |||||
| US$M | Gross | Ta x | Net | Gross | Tax | Net | Total |
At the beginning of the financial year | 40 | (13) | 27 | (10) | 3 | (7) | 20 |
Add: Change in fair value of hedging instrument recognised in OCI | 330 | (99) | 231 | 16 | (5) | 11 | 242 |
| Less: Reclassified from reserves to financial expenses – | |||||||
recognised through OCI | (392) | 118 | (274) | − | − | − | (274) |
At the end of the financial year | (22) | 6 | (16) | 6 | (2) | 4 | (12) |
| 2024 | Cash flow hedging reserve | Cost of hedging reserve | |||||
| US$M | Gross | Tax | Net | Gross | Tax | Net | Total |
At the beginning of the financial year | 15 | (5) | 10 | (1) | – | (1) | 9 |
Add: Change in fair value of hedging instrument recognised in OCI | (24) | 7 | (17) | (9) | 3 | (6) | (23) |
| Less: Reclassified from reserves to financial expenses – | |||||||
recognised through OCI | 49 | (15) | 34 | – | – | – | 34 |
At the end of the financial year | 40 | (13) | 27 | (10) | 3 | (7) | 20 |
| Derivatives | |||||||
| (assets)/ | |||||||
| Interest bearing liabilities | liabilities | ||||||
| Bank | Cross | ||||||
| overdraft and | currency | ||||||
| 2025 | Bank | Notes and | Lease | short-term | and interest | ||
| US$M | loans | debentures | liabilities | borrowings | Other | rate swaps | Total |
At the beginning of the financial year | 2,610 | 14,932 | 3,116 | 3 | 57 | 1,395 | |
Proceeds from interest bearing liabilities | 1,150 | 2,979 | − | − | − | − | 4 ,129 |
Settlements of debt related instruments | − | − | − | − | − | (147) | (147) |
Repayment of interest bearing liabilities | (40) | (894) | (712) | − | (29) | − | (1,675) |
Change from Net financing cash flows | 1,110 | 2,085 | (712) | − | (29) | (147) | 2,307 |
| Other movements: | |||||||
Interest rate impacts | 11 | 252 | − | − | − | (265) | |
Foreign exchange impacts | 7 | 369 | (13) | − | − | (369) | |
Lease additions | − | − | 870 | − | − | − | |
Remeasurement of index-linked freight contracts | − | − | (297) | − | − | − | |
Other interest bearing liabilities/derivative related changes | (7) | 15 | (11) | (2) | 130 | (19) | |
At the end of the financial year | 3,731 | 17,653 | 2,953 | 1 | 158 | 595 | |
| 2024 | |||||||
| US$M | |||||||
At the beginning of the financial year | 7,502 | 11,819 | 3,019 | 5 | − | 1,572 | |
Proceeds from interest bearing liabilities | 400 | 4,691 | − | − | − | − | 5,091 |
Settlements of debt related instruments | − | − | − | − | − | (321) | (321) |
Repayment of interest bearing liabilities | (5,319) | (1,338) | (656) | − | (14) | − | (7,327) |
Change from Net financing cash flows | (4,919) | 3,353 | (656) | − | (14) | (321) | (2,557) |
| Other movements: | |||||||
Divestment of subsidiaries and operations | − | − | (60) | − | − | − | |
Interest rate impacts | − | (214) | − | − | − | 188 | |
Foreign exchange impacts | 24 | (35) | (16) | − | − | 35 | |
Lease additions | − | − | 593 | − | − | − | |
Remeasurement of index-linked freight contracts | − | − | 230 | − | − | − | |
Other interest bearing liabilities/derivative related changes | 3 | 9 | 6 | (2) | 71 | (79) | |
At the end of the financial year | 2,610 | 14,932 | 3,116 | 3 | 57 | 1,395 |
164
BHP Annual Report 2025
Employee matters
25 Key management personnel
Key management personnel compensation comprises:
| 2025 | 2024 | 2023 | |
| US$ | US$ | US$ | |
Short-term employee benefits | 12,794,925 | 12,687,272 | 13,599,217 |
Post-employment benefits | 589,573 | 634,005 | 659,020 |
Share-based payments | 10,569,238 | 11,143,944 | 11,455,666 |
Total | 23,953,736 | 24,465,221 | 25,713,903 |
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 no purchases by key management personnel from the Group during FY2025 (2024: US$ nil; 2023: US$ nil).
There were no amounts payable by key management personnel at 30 June 2025 (2024: US$ nil; 2023: US$ nil).
There were no loans receivable from or payable to key management personnel at 30 June 2025 (2024: US$ nil; 2023: US$ nil).
26 Employee share ownership plans
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 a 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.
The table below provides a description of each of the plans.
Plan | CDP | LTIP and MAP | Shareplus |
Type | Short and long term incentive | Long term incentive | All-employee share |
| purchase plan | |||
Overview | The CDP is an annual cash and equity-based | The LTIP is a long term incentive plan for Executive KMP and members of the Executive | Employees may |
| incentive plan for Executive KMP and | Leadership Team, who are not Executive KMP. Awards are granted annually and delivered | contribute up to | |
| members of the Executive Leadership | in performance rights, which are conditional rights to receive BHP shares. Awards vest | US$5,000 to acquire | |
| Team who are not Executive KMP. | after five years, subject to service and performance conditions. | shares in any plan | |
| CDP awards are split into three equal parts | The MAP is a long term incentive plan for BHP senior management who are not Executive | year. On the third | |
| – a cash component paid annually, and | KMP. The number of share rights awarded is determined by a participant’s role and grade | anniversary of | |
| two awards of deferred rights to receive | and generally vest in three years. Awards of share rights may also be granted to members | the start of a plan | |
| BHP Group Limited shares subject to | of the Executive Leadership Team as additional retention awards with vesting periods of | year, the Group will | |
| service conditions and a holistic review | between one and five years. | match the number of | |
| of performance. | acquired shares still | ||
| The two awards of deferred rights are | held by the participant. | ||
| the equivalent value of the CDP cash | |||
| award, vesting between two and five years | |||
| respectively. Awards of deferred rights | |||
| may also be granted to members of the | |||
| Executive Leadership Team as additional | |||
| retention awards with vesting periods of up | |||
| to five years. | |||
| Vesting | Service conditions only for the | LTIP: Service and performance conditions. | Service |
| conditions | two-year award. | From FY2023 BHP’s performance is assessed over the five-year period against the relative | conditions only. |
| Vesting of the four-year awards are | Total Shareholder Return (TSR) of two comparator groups – Morgan Stanley Capital | ||
| subject to service and individual | International (MSCI) market indices, the MSCI World Metals and Mining Index (‘Sector | ||
| performance conditions. | Group TSR’) and the MSCI World Index (‘World TSR’). The Sector Group TSR determines | ||
| Vesting of the five-year awards are subject | the vesting of 67 per cent of the awards, while performance relative to the World TSR | ||
| to a service condition and underpinned | determines the vesting of 33 per cent of the awards. For awards granted prior to FY2023, | ||
| by a holistic review of performance | TSR performance relative to a bespoke sector peer group and the MSCI World Index | ||
| encompassing safety and sustainability | determines the vesting of 67 per cent and 33 per cent of the award, respectively. | ||
| including climate, financial, corporate | 25 per cent of the award will vest where BHP’s TSR is equal to the median TSR of the | ||
| governance and conduct at the end of the | relevant comparator group(s), as measured over the five-year performance period. | ||
| five-year period. | Where TSR is below the median, awards will not vest. Vesting occurs on a sliding scale | ||
| when BHP’s TSR is between the median TSR of the relevant comparator group(s) up | |||
| to a nominated level of TSR outperformance over the relevant comparator group(s), as | |||
| determined by the Committee, above which 100 per cent of the award will vest. | |||
| 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 | Between 2 and 5 years | LTIP – 5 years | 3 years |
| period | MAP – 1 to 5 years | ||
| Dividend | Yes | LTIP – Yes | No |
| Equivalent | MAP – Varies | ||
| Payment | |||
| Exercise | None | None | None |
| period |
165Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
26 Employee share ownership plans continued
| Weighted | |||||||
| Number of | Number | Number of | average | Weighted | |||
| awards at the | Number of | of awards | Number | awards at the | remaining | average | |
| beginning of the | awards issued | vested and | of awards | end of the | contractual | share price at | |
| 2025 | financial year | during the year | exercised | lapsed | financial year | life (years) | exercise date |
CDP awards | 1,211,489 | 386,252 | 206,336 | 4 3,114 | 1,348,291 | 1.8 | A$42.47 |
LTIP awards | 2,425,706 | 658,392 | 204,151 | 282,324 | 2,597,623 | 2.2 | A$42 .10 |
MAP awards 1 | 5,987,197 | 2,419,935 | 2,135,906 | 560,361 | 5,710,865 | 1.2 | A$41.08 |
Shareplus | 4,512,886 | 4,669,013 | 2,485,511 | 539,913 | 6,156,475 | 1.3 | A$35.69 |
| Weighted average | ||||||
| fair value of | ||||||
| awards granted | Estimated | |||||
| during the year | Risk-free | Estimated life | Share price | volatility of | Dividend | |
| 2025 | US$ | interest rate | of awards | at grant date | share price | yield |
CDP awards | 29.53 | n/a | 2–5 years | A$43.40 | n/a | n/a |
LTIP awards | 17.49 | 4.17% | 5 years | A$43.40 | 33.70% | n/a |
MAP awards 1 | 26.47 | n/a | 1–3 years | A$44.58/A$36.37 | n/a | 4.95% |
Shareplus | 21.55 | n/a | 3 years | A$40.25 | n/a | 5.28% |
166 BHP Annual Report 2025
| 2025 | 2024 | |
| US$M | US$M | |
Employee benefits 1 | 1,879 | 1,698 |
Restructuring 2 | 83 | 45 |
Post-retirement employee benefits 3 | 336 | 300 |
Total provisions | 2,298 | 2,043 |
| Comprising: | ||
Current | 1,893 | 1,677 |
Non-current | 405 | 366 |
| Post-retirement | ||||
| Employee | employee | |||
| benefits | Restructuring | benefits 3 | Total | |
| 2025 | US$M | US$M | US$M | US$M |
At the beginning of the financial year | 1,698 | 45 | 300 | 2,043 |
| Charge/(credit) for the year: | ||||
Underlying | 1,511 | 275 | 56 | 1,842 |
Discounting | − | − | 28 | 28 |
Yield on defined benefit scheme assets | − | − | (11) | (11) |
Exchange variations | (11) | − | 5 | (6) |
Released during the year | (5) | (13) | − | (18) |
Remeasurement losses taken to retained earnings | − | − | 8 | 8 |
Utilisation | (1,314) | (224) | (51) | (1,589) |
Transfers and other movements | − | − | 1 | 1 |
At the end of the financial year | 1,879 | 83 | 336 | 2,298 |
167Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
27 Employee benefits, restructuring and post-retirement employee benefits provisions continued
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 | ||
168
BHP Annual Report 2025
Group and related party information
| Group’s interest | ||||
| Country of | 2025 | 2024 | ||
| Significant subsidiaries | incorporation | Principal activity | % | % |
| Coal | ||||
Hunter Valley Energy Coal Pty Ltd | Australia | Coal mining | 100 | 100 |
| Copper | ||||
BHP Olympic Dam Corporation Pty Ltd | Australia | Copper, uranium and gold mining | 100 | 100 |
Compañia Minera Cerro Colorado Limitada | Chile | Copper mining | 100 | 100 |
Minera Escondida Ltda 1 | Chile | Copper mining | 57.5 | 57.5 |
Minera Spence SA | Chile | Copper mining | 100 | 100 |
OZ Minerals Carrapateena Pty Ltd | Australia | Copper and gold mining | 100 | 100 |
OZ Minerals Prominent Hill Operations Pty Ltd | Australia | Copper and gold mining | 100 | 100 |
| Iron Ore | ||||
BHP Iron Ore (Jimblebar) Pty Ltd 2 | Australia | Iron ore mining | 85 | 85 |
BHP Iron Ore Pty Ltd | Australia | Service company | 100 | 100 |
BHP (Towage Services) Pty Ltd | Australia | Towing services | 100 | 100 |
| Marketing | ||||
BHP Billiton Freight Singapore Pte Limited | Singapore | Freight services | 100 | 100 |
BHP Billiton Marketing AG | Switzerland | Marketing and trading | 100 | 100 |
BHP Billiton Marketing Asia Pte Ltd | Singapore | Marketing support and other services | 100 | 100 |
| Group and Unallocated | ||||
BHP Billiton Finance B.V. | The Netherlands | Finance | 100 | 100 |
BHP Billiton Finance Limited | Australia | Finance | 100 | 100 |
BHP Billiton Finance (USA) Limited | Australia | Finance | 100 | 100 |
BHP Canada Inc. | Canada | Potash development | 100 | 100 |
BHP Group Operations Pty Ltd | Australia | Administrative services | 100 | 100 |
BHP Nickel West Pty Ltd 3 | Australia | Nickel mining, smelting, refining and | 100 | 100 |
| administrative services | ||||
OZ Minerals Musgrave Operations Pty Ltd 3 | Australia | Nickel and copper development | 100 | 100 |
WMC Finance (USA) Limited | Australia | Finance | 100 | 100 |
| Ownership interest | ||||||
| Significant associates | Country of incorporation/ | Associate or | 2025 | 2024 | ||
| and joint ventures | principal place of business | joint venture | Principal activity | Reporting date | % | % |
| Compañía Minera Antamina S.A. | Peru | Associate | Copper and | 31 December | 33.75 | 33.75 |
| (Antamina) | zinc mining | |||||
| Samarco Mineração S.A. | Brazil | Joint venture | Iron ore mining | 31 December | 50.00 | 50.00 |
| (Samarco) | ||||||
Vicuña Corp (Vicuña) | Canada/Argentina/Chile | Joint venture | Copper | 31 December | 50.00 | – |
| development |
169Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
29 Investments accounted for using the equity method continued
| Total equity | |||
| Year ended 30 June 2025 | Investment in | Investment in | accounted |
| US$M | associates | joint ventures | investments |
At the beginning of the financial year | 1,662 | − | 1,662 |
Profit/(loss) from equity accounted investments, related impairments and expenses 1 | 397 | (244) | 153 |
Investment in equity accounted investments 2 | 67 | 2,355 | 2,422 |
Dividends received from equity accounted investments | (375) | − | (375) |
Other 1 | − | 245 | 245 |
At the end of the financial year | 1,751 | 2,356 | 4,107 |
Associates | Joint ventures | ||||||
| 2025 | Individually | Individually | |||||
US$M | Antamina | immaterial 1 | Samarco 2 | Vicuña | immaterial | Total | |
Current assets | 1,773 | 877 3 | 5 4 ³ | ||||
Non-current assets | 6,944 | 6,485 | 4,570 | ||||
Current liabilities | (970) | (6,180) 4 | (61) 4 | ||||
Non-current liabilities | (2,599) | (20,404) 5 | (3) 5 | ||||
Net assets/(liabilities) – 100% | 5,148 | (19,222) | 4,560 | ||||
Net assets/(liabilities) – Group share | 1,737 | (9,611) | 2,280 | ||||
Adjustments to net assets related to accounting policy adjustments | (76) | − | 76 | ||||
Investment in Samarco | − | 516 6 | − | ||||
Impairment of the carrying value of the investment in Samarco | − | (1,041) 7 | − | ||||
Recognised additional share of losses, net of capital contributions | − | 7,254 | − | ||||
Unrecognised losses | − | 2,882 8 | − | ||||
Carrying amount of investments accounted for using the equity method | 1,661 | 90 | − | 2,356 | − | 4,107 | |
Revenue – 100% | 4,627 | 1,598 | − | ||||
Profit/(loss) | – 100% | 1,609 | (4,032) 9 | 2 10 | |||
Share of profit/(loss) of equity accounted investments | 543 | (2,016) | 1 | ||||
| Adjustments to share of profit/(loss) related to accounting | |||||||
policy adjustments | (5) | − | − | ||||
Impairment of the carrying value of the investment in Samarco | − | − | − | ||||
Additional share of Samarco losses | − | 458 | − | ||||
Fair value change on forward exchange derivatives | − | 414 | − | ||||
Movement in unrecognised losses | − | 899 8 | − | ||||
| Profit/(loss) from equity accounted investments, related impairments | |||||||
and expenses | 538 | (141) | (245) | 1 | − | 153 | |
Comprehensive income – 100% | 1,609 | (4,032) | 2 | ||||
| Share of comprehensive income/(loss) – Group share in equity | |||||||
accounted investments | 538 | (141) | (245) | 1 | − | 153 | |
Dividends received from equity accounted investments | 375 | − | − | − | − | 375 |
170
BHP Annual Report 2025
Associates | Joint ventures | ||||
| 2024 | Individually | Individually | |||
US$M | Antamina | immaterial 1 | Samarco 2 | immaterial | Total |
Current assets | 1,699 | 564 3 | |||
Non-current assets | 6,325 | 7, 214 | |||
Current liabilities | (987) | (3,266) 4 | |||
Non-current liabilities | (2,389) | (23,211) 5 | |||
Net assets/(liabilities) – 100% | 4,648 | (18,699) | |||
Net assets/(liabilities) – Group share | 1,569 | (9,349) | |||
Adjustments to net assets related to accounting policy adjustments | (71) | – | |||
Investment in Samarco | − | 516 6 | |||
Impairment of the carrying value of the investment in Samarco | − | (1,041) 7 | |||
Recognised additional share of losses, net of capital contributions | − | 7,891 | |||
Unrecognised losses | − | 1,983 8 | |||
Carrying amount of investments accounted for using the equity method | 1,498 | 164 | – | – | 1,662 |
Revenue – 100% | 4,381 | 1,553 | |||
Profit/(loss) – 100% | 1,353 | (6,726) 9 | |||
Share of profit/(loss) of equity accounted investments | 457 | (3,363) | |||
Adjustments to share of profit/(loss) related to accounting policy adjustments | 8 | (6) 11 | |||
Impairment of the carrying value of the investment in Samarco | − | – | |||
Additional share of Samarco losses | − | 506 | |||
Fair value change on forward exchange derivatives | − | (199) | |||
Movement in unrecognised losses | − | 30 8 | |||
Profit/(loss) from equity accounted investments, related impairments and expenses | 465 | (89) | (3,032) | – | (2,656) |
Comprehensive income – 100% | 1,353 | (6,726) | |||
Share of comprehensive (loss)/income – Group share in equity accounted investments | 465 | (89) | (3,032) | – | (2,656) |
Dividends received from equity accounted investments | 397 | − | – | – | 397 |
Associates | Joint ventures | ||||
| 2023 | Individually | Individually | |||
US$M | Antamina | immaterial | Samarco 2 | immaterial | Total |
Revenue – 100% | 4,350 | 1,554 | |||
Profit/(loss) – 100% | 1,571 | (3,018) 9 | |||
Share of profit/(loss) of equity accounted investments | 530 | (1,509) | |||
Adjustments to share of profit/(loss) related to accounting policy adjustments | (79) | 23 11 | |||
Impairment of the carrying value of the investment in Samarco | − | – | |||
Additional share of Samarco losses | − | 452 | |||
Fair value change on forward exchange derivatives | − | 471 | |||
Movement in unrecognised losses | − | 778 8 | |||
Profit/(loss) from equity accounted investments, related impairments and expenses | 451 | (72) | 215 | − | 594 |
Comprehensive income – 100% | 1,571 | (3,018) | |||
Share of comprehensive income/(loss) – Group share in equity accounted investments | 451 | (72) | 215 | – | 594 |
Dividends received from equity accounted investments | 327 | 1 | – | – | 328 |
171Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
30 Interests in joint operations
Significant joint operations of the Group are those with the most significant contributions to the Group’s net profit or net assets. The Group’s interest in the
joint operations results are listed in the table below.
| Group’s interest | ||||
| 2025 | 2024 | |||
Significant joint operations | Country of operation | Principal activity | % | % |
Mt Goldsworthy 1 | Australia | Iron ore mining | 85 | 85 |
Mt Newman 1 | Australia | Iron ore mining | 85 | 85 |
Yandi 1 | Australia | Iron ore mining | 85 | 85 |
Central Queensland Coal Associates | Australia | Coal mining | 50 | 50 |
1. These contractual arrangements are controlled by the Group and do not meet the definition of joint operations. However, as they are formed by contractual arrangement and are not
entities, the Group recognises its share of assets, liabilities, revenue and expenses arising from these arrangements.
Assets held in joint operations subject to significant restrictions are as follows:
| Group’s share | ||
| 2025 | 2024 | |
| US$M | US$M | |
Current assets | 1,967 | 1,928 |
Non-current assets | 25,275 | 25,307 |
Total assets 1 | 27,242 | 27,235 |
1. While the Group is unrestricted in its ability to sell a share of its interest in these joint operations, it does not have the right to sell individual assets that are used in these joint operations
without the unanimous consent of the other participants. The assets in these joint operations are also restricted to the extent that they are only available to be used by the joint operation
itself and not by other operations of the Group.
Joint ventures | Associates | |||
| 2025 | 2024 | 2025 | 2024 | |
| US$M | US$M | US$M | US$M | |
Sales of goods/services | − | – | − | − |
Purchases of goods/services | − | – | 1,702.477 | 1,606.639 |
Interest income | − | – | − | − |
Interest expense | − | – | − | − |
Dividends received | − | – | 374.972 | 396.856 |
Net loans made to/(repayments from) related parties | − | – | − − |
Joint ventures | Associates | |||
| 2025 | 2024 | 2025 | 2024 | |
| US$M | US$M | US$M | US$M | |
Trade amounts owing to related parties | − | – | 224.091 | 246.764 |
Loan amounts owing to related parties | − | – | − | – |
Trade amounts owing from related parties | − | – | 1.557 | 0.249 |
Loan amounts owing from related parties | − | – | − | – |
172
BHP Annual Report 2025
Unrecognised items and uncertain events
| 2025 | 2024 | |
| US$M | US$M | |
Associates and joint ventures 1 | 1,664 | 1,492 |
Subsidiaries and joint operations 1 | 911 | 859 |
Total | 2,575 | 2,351 |
| Uncertain tax and | The Group is subject to a range of taxes and royalties across many jurisdictions, the application of which is uncertain in some |
| royalty matters | regards. Changes in tax law, changes in interpretation of tax law, periodic challenges and disagreements with tax authorities, and |
| legal proceedings result in uncertainty of the outcome of the application of taxes and royalties to the Group’s business. | |
| To the extent uncertain tax and royalty matters give rise to a contingent liability, an estimate of the potential liability is included within | |
| the table above, where it is capable of reliable measurement. | |
| Samarco contingent | The table above includes contingent liabilities related to the Group’s equity accounted investment in Samarco to the extent they are |
| liabilities | capable of reliable measurement. Details of contingent liabilities related to Samarco are disclosed in note 4 ‘Significant events – |
| Samarco dam failure’. | |
| Divestments | Where the Group divests or demerges entities, it is generally agreed to provide certain indemnities to the acquiring or demerged |
| and demergers | entity. Such indemnities include those provided as part of the demerger of South32 Ltd in May 2015, divestment of Group’s Onshore |
| US assets in September 2018 and October 2018, divestment of BMC in May 2022 and the merger of the Group’s Petroleum business | |
| with Woodside in June 2022. No material claims have been made pursuant to these indemnities as at 30 June 2025. |
33 Subsequent events
On 15 August 2025, the Group entered into a binding agreement for the divestment of the Carajás assets in Brazil to a wholly-owned subsidiary of CoreX
Holding for total consideration of up to US$465 million. Subject to the satisfaction of customary closing conditions (including regulatory approvals), the
transaction is expected to complete in early calendar year 2026. The Group does not expect a material income statement impact as a result of the
divestment in FY2026.
Other than the matters outlined above or elsewhere in the Financial Statements, no matters or circumstances have arisen since the end of the financial
year that have significantly affected, or may significantly affect, the operations, results of operations or state of affairs of the Group in subsequent
accounting periods.
173Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
Other items
34 Auditor’s remuneration
| 2025 | 2024 | 2023 | |
| US$M | US$M | US$M | |
| Fees payable to the Group’s auditors for assurance services | |||
Audit of the Group's Annual Report | 10.295 | 10.558 | 9.700 |
Audit of the accounts of subsidiaries, joint ventures and associates | 0.551 | 0.534 | 0.551 |
Audit-related assurance services required by legislation to be provided by the auditor | 1.814 | 1.871 | 1.808 |
Other assurance and agreed-upon procedures under legislation or contractual arrangements | 2.093 | 2.261 | 1.991 |
Total assurance services | 14.753 | 15.224 | 14.050 |
| Fees payable to the Group's auditors for non-assurance services | |||
Other services | − | 0.498 | 0.180 |
Total other services | − | 0.498 | 0.180 |
Total fees | 14.753 | 15.722 | 14.230 |
All amounts were paid to EY or EY affiliated firms with fees determined, and predominantly billed, in US dollars.
Fees payable to the Group’s auditors for assurance services
Audit of the Group’s Annual Report comprises fees for auditing the statutory financial report of the Group and includes audit work in relation to compliance
with section 404 of the US Sarbanes-Oxley Act.
Audit-related assurance services required by legislation to be provided by the auditors mainly comprises review of the half-year report.
Other assurance services comprise assurance in respect of the Group’s sustainability reporting, economic contribution reporting, and other non-
statutory reporting.
Fees payable to the Group’s auditors for other services
No amounts were payable for other services in FY2025. Other services provided in FY2024 and FY2023 primarily relate to an independent assessment of
technology project governance.
35 BHP Group Limited
BHP Group Limited does not present unconsolidated parent company Financial Statements. Selected financial information of the BHP Group Limited
parent company is as follows:
| 2025 | 2024 | |
| US$M | US$M | |
| Income statement information for the financial year | ||
Profit after taxation for the year | 10,602 | 13,696 |
Total comprehensive income | 10,600 | 13,695 |
| Balance sheet information as at the end of the financial year | ||
Current assets | 7, 497 | 9,026 |
Total assets | 49,677 | 45,443 |
Current liabilities | 1,340 | 1,531 |
Total liabilities | 1,525 | 1,734 |
Share capital | 4,727 | 4,611 |
Treasury shares | (18) | (36) |
Reserves | 184 | 161 |
Retained earnings | 43,259 | 38,973 |
Total equity | 48,152 | 43,709 |
Parent company guarantees
BHP Group Limited has guaranteed certain financing arrangements available to subsidiaries of US$5,331 million at 30 June 2025 (2024: US$4,856 million).
BHP Group Limited and its wholly owned subsidiary BHP Group (UK) Ltd (formerly BHP Group Plc) have severally, fully and unconditionally guaranteed
the payment of the principal and premium, if any, and interest, including certain additional amounts that may be payable in respect of the notes issued
by 100 per cent owned finance subsidiary, BHP Billiton Finance (USA) Ltd. BHP Group Limited and BHP Group (UK) Ltd have guaranteed the payment
of such amounts when they become due and payable, whether on an interest payment date, at the stated maturity of the notes, by declaration or
acceleration, call for redemption or otherwise. The guaranteed liabilities at 30 June 2025 amounted to US$3,500 million (2024: US$3,500 million).
In addition, BHP Group Limited and BHP Group (UK) Ltd have severally guaranteed a Group Revolving Credit Facility of US$5,500 million (2024:
US$5,500 million), which remains undrawn. The facility was refinanced on 10 July 2025 and has a 5-year maturity, with two one-year extension options.
BHP Group Limited will be the sole guarantor for the refinanced facility.
BHP Group Limited has severally, fully and unconditionally guaranteed the payment of principal and premium, if any, and interest related to
US$10,500 million (2024: US$7,500 million) of US Global bonds issued by BHP Billiton Finance (USA).
174 BHP Annual Report 2025
36 Deed of Cross Guarantee
BHP Group Limited together with certain wholly owned subsidiaries set out below have entered into a Deed of Cross Guarantee (Deed) dated 6 June
2016 or have subsequently joined the Deed by way of an Assumption Deed. The effect of the Deed is that BHP Group Limited has guaranteed to pay any
outstanding liabilities upon the winding up of any wholly owned subsidiary that is party to the Deed. Wholly owned subsidiaries that are party to the Deed
have also given a similar guarantee in the event that BHP Group Limited or another party to the Deed is wound up.
The following companies are parties to the Deed and members of the Closed Group as at 30 June 2025:
BHP (Towage Services) Pty Ltd 1 | OS ACPM Pty Ltd 1 |
BHP Direct Reduced Iron Pty Limited | OS MCAP Pty Ltd 1 |
BHP Iron Ore Pty Ltd 1 | UMAL Consolidated Pty Ltd 1 |
BHP Minerals Pty Ltd 1 | BHP Freight Pty Ltd |
BHP WAIO Pty Ltd 1 | BHP Group Operations Pty Ltd 1 |
Pilbara Gas Pty Limited | BHP Innovation Pty Ltd |
BHP Coal Pty Ltd 1 | BHP Lonsdale Investments Pty Ltd |
BHP MetCoal Holdings Pty Ltd 1 | BHP Minerals Holdings Proprietary Limited 1 |
Broadmeadow Mine Services Pty Ltd | BHP Nickel West Pty Ltd 1 |
Central Queensland Services Pty Ltd | BHP Olympic Dam Corporation Pty Ltd 1 |
Hay Point Services Pty Limited | The Broken Hill Proprietary Company Pty Ltd 1 |
BHP Yakabindie Nickel Pty Ltd 1 | OZ Minerals Brazil (Holdings) Pty Ltd 1 |
OZ Minerals Pty Ltd 1 | OZ Minerals Musgrave Holdings Pty Ltd |
OZ Minerals Prominent Hill Pty Ltd 1 | OZ Minerals Prominent Hill Operations Pty Ltd 1 |
Carrapateena Pty Ltd 1 | OZM Carrapateena Pty Ltd |
Minotaur Resources Holdings Pty Ltd 1 | Avanco Resources Pty Ltd 1 |
OZ Minerals Carrapateena Pty Ltd 1 | OZ Minerals Musgrave Operations Pty Ltd |
1. For the year ended 30 June 2025, these companies have relied on relief from the Corporations Act 2001 (Cth) requirements for preparation, audit and lodgement of financial reports and
directors’ reports pursuant to the ASIC Instrument and the Deed.
A Consolidated Statement of Comprehensive Income and Retained Earnings and Consolidated Balance Sheet, comprising BHP Group Limited and the
wholly owned subsidiaries that are party to the Deed for the years ended 30 June 2025 and 30 June 2024 are as follows:
| 2025 | 2024 | |
| Consolidated Statement of Comprehensive Income and Retained Earnings | US$M | US$M |
Revenue | 28,032 | 34,404 |
Other income | 2,933 | 4,508 |
Expenses excluding net finance costs | (20,604) | (26,369) |
Net finance costs | (1,174) | (1,466) |
Total taxation expense | (2,395) | (2,640) |
Profit after taxation | 6,792 | 8,437 |
Total other comprehensive income | (3) | − |
Total comprehensive income | 6,789 | 8,437 |
Retained earnings at the beginning of the financial year | 39,374 | 38,667 |
Net effect on retained earnings of entities added to/removed from the Deed | − | 14 |
Profit after taxation for the year | 6,792 | 8,437 |
Transfers to and from reserves | 2 | (32) |
Dividends | (6,286) | (7,712) |
Retained earnings at the end of the financial year | 39,882 | 39,374 |
175
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Consolidated Financial Statements continued
36 Deed of Cross Guarantee continued
| 2025 | 2024 | ||
| Consolidated Balance Sheet | US$M | US$M | |
| ASSETS | |||
| Current assets | |||
Cash and cash equivalents | 7 | 9 | |
Trade and other receivables | 1,941 | 2,380 | |
Loans to related parties | 13,505 | 12,494 | |
Other financial assets | 196 | 215 | |
Inventories | 2,639 | 2,869 | |
Current tax assets | 323 | − | |
Other | 106 | 101 | |
Total current assets | 18,717 | 18,068 | |
| Non-current assets | |||
Trade and other receivables | 27 | 37 | |
Other financial assets | 183 | 464 | |
Inventories | 574 | 545 | |
Property, plant and equipment | 42,128 | 41,430 | |
Intangible assets | 1,494 | 1,368 | |
Investments in Group companies | 30,477 | 27,552 | |
Other | 1 | 2 | |
Total non-current assets | 74,884 | 71,398 | |
Total assets | 93,601 | 89,466 | |
| LIABILITIES | |||
| Current liabilities | |||
Trade and other payables | 3,771 | 4,126 | |
Loans from related parties | 21,675 | 28,306 | |
Interest bearing liabilities | 219 | 216 | |
Other financial liabilities | 4 | 13 | |
Current tax payable | – | 39 | |
Provisions | 2,152 | 1,913 | |
Deferred income | 3 | 4 | |
Total current liabilities | 27,82 | 4 | 34,617 |
| Non-current liabilities | |||
Trade and other payables | 36 | 47 | |
Loans from related parties | 14,498 | 4,041 | |
Interest bearing liabilities | 677 | 783 | |
Other financial liabilities | 7 | 1 | |
Deferred tax liabilities | 539 | 596 | |
Provisions | 4,803 | 4,788 | |
Deferred income | – | 2 | |
Total non-current liabilities | 20,560 | 10,258 | |
Total liabilities | 48,384 | 44,875 | |
Net assets | 45,217 | 44,591 | |
| EQUITY | |||
Share capital – BHP Group Limited | 5,015 | 4,899 | |
Treasury shares | (18) | (36) | |
Reserves | 338 | 354 | |
Retained earnings | 39,882 | 39,374 | |
Total equity | 45,217 | 44,591 |
37 New and amended accounting standards and interpretations and changes to accounting policies
176 BHP Annual Report 2025
2 Consolidated entity disclosure statement
In accordance with the requirements of Subsection 295(3A) of the Australian Corporations Act 2001 (Cth), set out below is the consolidated entity
disclosure statement disclosing information in respect of BHP Group Limited and entities it controlled at 30 June 2025.
| Body corporates | ||||
| Place | Percentage | |||
| Body corporate, | incorporated | of share | Tax | |
| Entity name | partnership or trust | or formed | capital held | residency 1 |
BHP Group Limited | Body corporate | Australia | N/A | Australia |
Agnew Pastoral Company Pty Ltd | Body corporate | Australia | 100% | Australia |
Albion Downs Pty Limited 2 | Body corporate | Australia | 100% | Australia |
Avanco Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
Avanco Resources Pty Ltd | Body corporate | Australia | 100% | Australia |
AVB Brazil Pty Ltd | Body corporate | Australia | 100% | Australia |
AVB Carajas Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
AVB Copper Pty Ltd | Body corporate | Australia | 100% | Australia |
AVB Minerals Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP (AUS) DDS Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP (Towage Services) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Aluminium Australia Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Billiton Finance (USA) Limited | Body corporate | Australia | 100% | Australia |
BHP Billiton Finance Limited | Body corporate | Australia | 100% | Australia |
BHP Billiton SSM Development Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Capital No. 20 Pty Limited | Body corporate | Australia | 100% | Australia |
BHP Coal Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Direct Reduced Iron Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Energy Coal Australia Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Freight Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Group Operations Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Innovation Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP IO Mining Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP IO Workshop Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Iron Ore (Jimblebar) Pty Ltd | Body corporate | Australia | 85% | Australia |
BHP Iron Ore Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Iron Ore Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Lonsdale Investments Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Manganese Australia Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Marine & General Insurances Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Metals Exploration Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP MetCoal Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Minerals Holdings Proprietary Limited | Body corporate | Australia | 100% | Australia |
BHP Minerals Pty Ltd 3 | Body corporate | Australia | 100% | Australia |
BHP Nickel Operations Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Nickel West Pty Ltd 2 | Body corporate | Australia | 100% | Australia |
BHP Olympic Dam Corporation Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Queensland Coal Investments Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Shared Business Services Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP SSM Indonesia Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP SSM International Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Titanium Minerals Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Boodarie) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Brolga) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Corella) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Ibis) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Kestrel) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Osprey) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Quail) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Robin) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Whistler) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Wren) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Mallina) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (RT Atlantis) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (RT Clerke) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Dove) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (RT Discovery) Pty Ltd | Body corporate | Australia | 100% | Australia |
177
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
2 Consolidated entity disclosure statement continued
| Body corporates | ||||
| Place | Percentage | |||
| Body corporate, | incorporated | of share | Tax | |
| Entity name | partnership or trust | or formed | capital held | residency 1 |
BHP Towage Services (RT Endeavour) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (RT Enterprise) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (RT Imperieuse) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (RT Inspiration) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Towage Services (Iron Finch) Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP WAIO Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Western Mining Resources International Pty Ltd | Body corporate | Australia | 100% | Australia |
BHP Yakabindie Nickel Pty Ltd | Body corporate | Australia | 100% | Australia |
Billiton Australia Finance Pty Ltd | Body corporate | Australia | 100% | Australia |
BM Alliance Coal Marketing Pty Limited | Body corporate | Australia | 50% | Australia |
BM Alliance Coal Operations Pty Limited | Body corporate | Australia | 50% | Australia |
Broadmeadow Mine Services Pty Ltd | Body corporate | Australia | 100% | Australia |
Carrapateena Pty Ltd | Body corporate | Australia | 100% | Australia |
Cassini Resources Pty Ltd | Body corporate | Australia | 100% | Australia |
Central Queensland Services Pty Ltd | Body corporate | Australia | 100% | Australia |
Coal Mines Australia Pty Ltd | Body corporate | Australia | 100% | Australia |
Crossbow Resources Pty Ltd | Body corporate | Australia | 100% | Australia |
CTP Assets Pty Ltd | Body corporate | Australia | 100% | Australia |
CTP Operations Pty Ltd | Body corporate | Australia | 100% | Australia |
Estrela Metals Pty Ltd | Body corporate | Australia | 100% | Australia |
Hay Point Services Pty Limited | Body corporate | Australia | 100% | Australia |
Hunter Valley Energy Coal Pty Ltd | Body corporate | Australia | 100% | Australia |
Minotaur Resources Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
Mt Arthur Coal Pty Limited | Body corporate | Australia | 100% | Australia |
Mt Arthur Underground Pty Ltd | Body corporate | Australia | 100% | Australia |
OS ACPM Pty Ltd | Body corporate | Australia | 100% | Australia |
OS MCAP Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Exploration Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Brazil (Holdings) Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Carrapateena Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Equity Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Group Treasury Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals International (Holdings) Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Investments Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Musgrave Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Musgrave Operations Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Prominent Hill Operations Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Prominent Hill Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Services Pty Ltd | Body corporate | Australia | 100% | Australia |
OZ Minerals Zinifex Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
OZM Carrapateena Pty Ltd | Body corporate | Australia | 100% | Australia |
Pilbara Gas Pty Limited | Body corporate | Australia | 100% | Australia |
Pilbara Pastoral Company Pty Limited 4 | Body corporate | Australia | 25% | Australia |
The Broken Hill Proprietary Company Pty Ltd | Body corporate | Australia | 100% | Australia |
UMAL Consolidated Pty Ltd | Body corporate | Australia | 100% | Australia |
United Iron Pty Ltd | Body corporate | Australia | 100% | Australia |
Wirraway Metals & Mining Pty Ltd | Body corporate | Australia | 100% | Australia |
WMC Finance (USA) Limited | Body corporate | Australia | 100% | Australia |
ZRUS Holdings Pty Ltd | Body corporate | Australia | 100% | Australia |
Ethel Creek Company Partnership | Partnership | N/A | N/A | Australia |
Mt Keith Pastoral Partnership | Partnership | N/A | N/A | Australia |
ARL Holdings Ltd | Body corporate | Bermuda | 100% | Bermuda |
ARL South America Exploration Ltd | Body corporate | Bermuda | 100% | Bermuda |
Araguaia Participações Ltda | Body corporate | Brazil | 100% | Brazil |
Avanco Resources Mineracao Ltda | Body corporate | Brazil | 100% | Brazil |
AVB Mineracao Ltda | Body corporate | Brazil | 100% | Brazil |
BHP Billiton Brasil Ltda | Body corporate | Brazil | 100% | Brazil |
BHP Internacional Participacoes Ltda | Body corporate | Brazil | 100% | Brazil |
178
BHP Annual Report 2025
| Body corporates | ||||
| Place | Percentage | |||
| Body corporate, | incorporated | of share | Tax | |
| Entity name | partnership or trust | or formed | capital held | residency 1 |
Consórcio Santos Luz de Imóveis Ltda | Body corporate | Brazil | 90% | Brazil |
Jenipapo Recursos Naturais Ltda. | Body corporate | Brazil | 100% | Brazil |
Mineracao Aguas Boas Ltda | Body corporate | Brazil | 100% | Brazil |
SLM Santa Lucia Mineracao Ltda | Body corporate | Brazil | 100% | Brazil |
WMC Mineracao Ltda. | Body corporate | Brazil | 100% | Brazil |
BHP Billiton UK Holdings Limited | Body corporate | British | 100% | United Kingdom |
| Virgin Islands | ||||
BHP Billiton UK Investments Limited | Body corporate | British | 100% | United Kingdom |
| Virgin Islands | ||||
BHP Canada Inc. 5 | Body corporate | Canada | 100% | Canada |
BHP Investments Canada Inc | Body corporate | Canada | 100% | Canada |
BHP SaskPower Carbon Capture and Storage (CCS) Knowledge Centre Inc. | Body corporate | Canada | 50% | Canada |
BHP World Exploration Inc. | Body corporate | Canada | 100% | Canada |
Rio Algom Exploration Inc. | Body corporate | Canada | 100% | Canada |
Rio Algom Investments (Chile) Inc | Body corporate | Canada | 100% | Canada |
Rio Algom Limited | Body corporate | Canada | 100% | Canada |
Global BHP Copper Ltd. | Body corporate | Cayman Islands | 100% | N/A |
RAL Cayman Inc. | Body corporate | Cayman Islands | 100% | N/A |
Riocerro Inc | Body corporate | Cayman Islands | 100% | N/A |
Riochile Inc | Body corporate | Cayman Islands | 100% | N/A |
BHP Chile Inversiones Limitada | Body corporate | Chile | 100% | Chile |
BHP Exploration Chile SpA | Body corporate | Chile | 100% | Chile |
Compania Minera Cerro Colorado Limitada | Body corporate | Chile | 100% | Chile |
Kelti S.A. | Body corporate | Chile | 57.50% | Chile |
Minera Escondida Ltda | Body corporate | Chile | 57. 50% | Chile |
Minera Spence SA | Body corporate | Chile | 100% | Chile |
Operation Services Chile SpA | Body corporate | Chile | 100% | Chile |
Tamakaya Energía SpA | Body corporate | Chile | 100% | Chile |
BHP Billiton International Trading (Shanghai) Co., Ltd. | Body corporate | China | 100% | China |
BHP Minerals (Shanghai) Co., Ltd | Body corporate | China | 100% | China |
Cerro Quebrado S.A. | Body corporate | Ecuador | 100% | Ecuador |
Stein Insurance Company Limited | Body corporate | Guernsey | 100% | Guernsey |
BHP Marketing Services India Pvt Ltd | Body corporate | India | 100% | India |
BHP Minerals India Pvt Limited | Body corporate | India | 100% | India |
Billiton Investments Ireland Limited | Body corporate | Ireland | 100% | Ireland |
OZ Minerals Jamaica Limited | Body corporate | Jamaica | 100% | Jamaica |
BHP Japan Limited | Body corporate | Japan | 100% | Japan |
BMA Japan KK | Body corporate | Japan | 50% | Japan |
BHP Billiton Services Jersey Limited | Body corporate | Jersey | 100% | Jersey |
BHP Group Limited Employee Equity Trust | Trust | N/A | N/A | Jersey |
The BHP Group Employee Share Ownership Trust | Trust | N/A | N/A | Jersey |
Avanco Lux S.ar.l | Body corporate | Luxembourg | 100% | Luxembourg |
Avanco Lux I S.C.S. | Body corporate | Luxembourg | 100% | Luxembourg |
BHP Shared Services Malaysia Sdn. Bhd. | Body corporate | Malaysia | 100% | Malaysia |
BHP Billiton Company B.V. | Body corporate | Netherlands | 100% | Netherlands |
BHP Billiton Finance B.V. | Body corporate | Netherlands | 100% | United Kingdom, |
Netherlands 6 | ||||
BHP Billiton International Metals B.V. | Body corporate | Netherlands | 100% | Netherlands |
Billiton Development B.V. | Body corporate | Netherlands | 100% | Netherlands |
Billiton Guinea B.V. | Body corporate | Netherlands | 100% | United Kingdom, |
Netherlands 6 | ||||
Billiton Investment 3 B.V. | Body corporate | Netherlands | 100% | United Kingdom, |
Netherlands 6 | ||||
Billiton Investment 8 B.V. | Body corporate | Netherlands | 100% | United Kingdom, |
Netherlands 6 | ||||
Billiton Marketing Holding B.V. | Body corporate | Netherlands | 100% | Netherlands |
Billiton Suriname Holdings B.V. | Body corporate | Netherlands | 100% | United Kingdom, |
Netherlands 6 | ||||
Marcona International, S.A. | Body corporate | Panama | 100% | Panama |
BHP Billiton (Philippines) Inc. | Body corporate | Philippines | 99.99% | Philippines |
BHP Shared Services Philippines Inc. | Body corporate | Philippines | 99.99% | Philippines |
QNI Philippines Inc | Body corporate | Philippines | 99.99% | Philippines |
179
Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
| Body corporates | |||||
| Place | Percentage | ||||
| Body corporate, | incorporated | of share | Tax | ||
| Entity name | partnership or trust | or formed | capital held | residency 1 | |
BHP Metals Exploration d.o.o. Beograd | Body corporate | Serbia | 100% | Serbia | |
BHP Billiton Freight Singapore Pte Limited | Body corporate | Singapore | 100% | Singapore | |
BHP Billiton Marketing Asia Pte Ltd. | Body corporate | Singapore | 100% | Singapore | |
BM Alliance Marketing Pte Ltd | Body corporate | Singapore | 50% | Singapore | |
OZ Minerals Insurance Pte Ltd | Body corporate | Singapore | 100% | Singapore | |
Westminer Insurance Pte Ltd | Body corporate | Singapore | 100% | Singapore | |
Consolidated Nominees (Proprietary) Limited | Body corporate | South Africa | 100% | South Africa | |
Phoenix Mining Finance Company Proprietary Limited | Body corporate | South Africa | 100% | South Africa | |
BHP Midgard A.B. | Body corporate | Sweden | 100% | Sweden | |
BHP Billiton Marketing AG | Body corporate | Switzerland | 100% | Switzerland | |
BHP Billiton (UK) DDS Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton (UK) Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton Finance PLC | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton Group Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton Holdings Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton International Services Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton Marketing UK limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton Petroleum Great Britain Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Billiton Sustainable Communities | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP BK Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Finance Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Group (UK) Ltd | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Group Holdings Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Holdings Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP International Services Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Marketing UK Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
BHP Minerals Europe Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
Billiton Executive Pension Scheme Trustee Limited | Body corporate | United Kingdom | 100% | United Kingdom | |
141 | Union Company | Body corporate | United States | 100% | United States |
BHP Chile Inc. | Body corporate | United States | 100% | United States | |
BHP Copper Inc | Body corporate | United States | 100% | United States | |
BHP Escondida Inc. 7 | Body corporate | United States | 100% | United States | |
BHP Finance (International) Inc. | Body corporate | United States | 100% | United States | |
BHP Foreign Holdings Inc. | Body corporate | United States | 100% | United States | |
BHP Foundation | Body corporate | United States | 0% | United States | |
BHP Holdings (International) Inc. | Body corporate | United States | 100% | United States | |
BHP Holdings (USA) Inc. | Body corporate | United States | 100% | United States | |
BHP Holdings International (Investments) Inc. | Body corporate | United States | 100% | United States | |
BHP International Finance Corp. | Body corporate | United States | 100% | United States | |
BHP Marketing North America Inc. | Body corporate | United States | 100% | United States | |
BHP Mineral Resources Inc. | Body corporate | United States | 100% | United States | |
BHP Minerals Exploration Inc. | Body corporate | United States | 100% | United States | |
BHP Minerals International Exploration Inc. | Body corporate | United States | 100% | United States | |
BHP Minerals International LLC | Body corporate | United States | 100% | United States | |
BHP Minerals Service Company | Body corporate | United States | 100% | United States | |
BHP New Mexico Coal Inc. | Body corporate | United States | 100% | United States | |
BHP Peru Holdings Inc. | Body corporate | United States | 100% | United States | |
BHP Queensland Coal Limited | Body corporate | United States | 100% | Australia, | |
| United States | |||||
BHP Resolution Holdings LLC | Body corporate | United States | 100% | United States | |
BHP Ventures US Inc | Body corporate | United States | 100% | United States | |
Carson Hill Gold Mining Corporation | Body corporate | United States | 100% | United States | |
Rio Algom Mining LLC | Body corporate | United States | 100% | United States | |
WMC Corporate Services Inc. | Body corporate | United States | 100% | United States |
1. Whether an entity was an Australian resident within the meaning of the Income Tax Assessment Act 1997 has been determined in accordance with the Commissioner of Taxation’s public
guidance, including TR 2018/5 and PCG 2018/9.
2. Entity is a partner in the Mt Keith Pastoral Partnership.
3. Entity is a participant in the BHP Iron Ore (Jimblebar) Pty Ltd joint venture and partner in the Ethel Creek Company Partnership.
4. Entity is a partner in the Ethel Creek Company Partnership.
5. Entity is a participant in the BHP SaskPower Carbon Capture and Storage (CCS) Knowledge Centre Inc. joint venture.
6. Entity is a tax resident of the United Kingdom for the purposes of the United Kingdom-Netherlands double tax agreement.
7. Entity is a participant in the Minera Escondida Ltda joint venture.
2 Consolidated entity disclosure statement continued
180 BHP Annual Report 2025
3 Directors’ declaration
In accordance with a resolution of the Directors of BHP Group Limited, the Directors declare that:
(a) in the Directors’ opinion the Financial Statements and notes are in accordance with the Australian Corporations Act 2001 (Cth), including:
(i) complying with the applicable Accounting Standards and the Australian Corporations Regulations 2001 (Cth); and
(ii) giving a true and fair view of the assets, liabilities, financial position and profit or loss of BHP Group Limited and the Group as at 30 June 2025 and
of their performance for the year ended 30 June 2025
(b) in the Directors’ opinion the consolidated entity disclosure statement required by Subsection 295(3A) of the Australian Corporations Act 2001 (Cth), as
disclosed in section 2 ‘Consolidated entity disclosure statement’, is true and correct
(c) the Financial Statements comply with International Financial Reporting Standards, as disclosed in the Basis of preparation to the Financial Statements
(d) to the best of the Directors’ knowledge, the management report (comprising the Operating and Financial Review and Directors’ Report) includes a fair
review of the development and performance of the business and the position of BHP Group Limited and the undertakings included in the consolidation
taken as a whole, together with a description of the principal risks and uncertainties that the Group faces
(e) in the Directors’ opinion there are reasonable grounds to believe that BHP Group Limited will be able to pay its debts as and when they become due
and payable
(f) as at the date of this declaration, there are reasonable grounds to believe that BHP Group Limited and each of the members of the Closed Group
identified in note 36 to the Financial Statements will be able to meet any liabilities to which they are, or may become, subject because of the Deed
of Cross Guarantee between BHP Group Limited and those group entities pursuant to ASIC Corporations (Wholly-owned Companies) Instrument
2016/785
(g) the Directors have been given the declarations required by Section 295A of the Australian Corporations Act 2001 (Cth) from the Chief Executive
Officer and Chief Financial Officer for the financial year ended 30 June 2025
Signed in accordance with a resolution of the Board of Directors.
Ross McEwan
Chair
19 August 2025
Mike Henry
Chief Executive Officer
181Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
4 Lead auditor’s independence declaration under
Section 307C of the Australian Corporations Act 2001
Auditor’s independence declaration to the directors of BHP Group Limited
As lead auditor for the audit of the financial report of BHP Group Limited for the financial year ended 30 June 2025,
I declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
b) no contraventions of any applicable code of professional conduct in relation to the audit; and
c) no non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.
This declaration is in respect of BHP Group Limited and the entities it controlled during the financial year.
Ernst & Young
Rodney Piltz
Partner
Melbourne
19 August 2025
A member firm of Ernst & Young Global Limited
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182 BHP Annual Report 2025
5 Independent auditor’s report to the members
of BHP Group Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of BHP Group Limited (the Company) and its subsidiaries (collectively the Group), which comprises
the consolidated balance sheet as at 30 June 2025, the consolidated income statement, consolidated statement of comprehensive income,
consolidated statement of changes in equity and consolidated cash flow statement for the year then ended, notes to the financial statements,
including material accounting policy information, the consolidated entity disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a. Giving a true and fair view of the consolidated financial position of the Group as at 30 June 2025 and of its consolidated financial
performance for the year ended on that date; and
b. Complying with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB),
Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards (ASAs) and International Standards on Auditing issued by
the International Auditing and Assurance Standards Board (ISAs). Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Group in accordance with the
auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant
to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our consideration of climate change
The Group has assessed climate-related risks as threats and opportunities that have the potential to impact the financial statements as outlined
in Note 16 of the financial report. These threats and opportunities include both transition risks and physical risks arising from climate change and
the transition to a low carbon economy (climate change).
Our audit, with the assistance of our climate change specialists, considered the climate-related threats and opportunities that have the potential
to materially impact the basis of preparation, including the key judgements and estimates exercised by the Group in the preparation of the
financial report.
The Group has incorporated its current climate change strategy, including Board approved commitments and actions in the basis of preparation
of the financial report, reflecting the Group’s best estimate of the potential impact to the financial statements as at 30 June 2025.
The impacts of climate change are most material to the judgements and estimates involved in the assessment of the carrying value of property,
plant and equipment and the determination of closure and rehabilitation provisions.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the
current year. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon,
but we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter
is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial report section of our report, including
in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks
of material misstatement of the financial report. The results of our audit procedures, including the procedures performed to address the matters
below, provide the basis for our audit opinion on the accompanying financial report.
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5 Independent auditor’s report to the members of BHP Group Limited continued
Assessment of the carrying value of property, plant and equipment
Why significant How our audit addressed the key audit matter
Refer to Note 11 ‘Property, plant and equipment’ and Note 13
‘Impairment of non-current assets’.
Accounting standards require an assessment of indicators of
impairment and impairment reversal annually, or more frequently if
indicators of impairment exist, for each cash generating unit (CGU).
The Group’s assessment of indicators of impairment and impairment
reversal included an evaluation of geo-political risks, regulatory
and legislative changes, macro-economic disruptions, commodity
price forecasts, reserve estimates, forecast operating and capital
expenditure and asset performance. The Group focused on the CGUs
that were the most susceptible to changes in key input assumptions.
The key input assumptions in the Group’s determination of indicators
of impairment or impairment reversal, which influence whether or not
an estimate of the recoverable amount of a CGU is required were
as follows:
– Commodity prices: assumptions in relation to commodity price
forecasts are inherently uncertain. There is a risk that the
assumptions are not reasonable and may not appropriately
reflect changes in supply and demand, including the impact
of climate change.
– Future production volumes: estimation of future production volumes
to be extracted from estimated reserves involves detailed mine
planning. Assessing the estimation of future production volumes
and reserve quantities is complex as there is significant estimation
uncertainty in assessing the quantities of reserves.
– Discount rates: given the long life of the Group’s assets, CGU
recoverable amounts are sensitive to the discount rate applied.
Determining the appropriate discount rate to apply to a CGU
is judgemental.
The assessment of the indicators of impairment or impairment
reversal and recoverable amount of the CGU was considered
to be a key audit matter as it involved significant judgement.
Auditing the recoverable amount of a CGU is complex and
subjective due to the use of forward-looking estimates, which are
inherently difficult to determine with precision. There is also a level
of judgement applied by the Group in determining the key inputs into
these forward-looking estimates.
The Group’s current climate change strategy continues to assess
climate-related risks, including transition and physical risks.
The Group’s current understanding of the potential financial impacts
of climate change have been incorporated into the assessment of
indicators of impairment and impairment reversal, the results of
which are disclosed in Notes 13 and 16 of the financial report.
The primary audit procedures we performed, amongst others, included
the following:
– We evaluated the design of, and tested the operating effectiveness
of, the Group’s controls over the assessment for indicators of
impairment and impairment reversal.
– We performed an analysis for indicators of impairment and
impairment reversal, which included considering the performance
of the assets and external market conditions. Our procedures
involved assessing the key inputs such as commodity price
forecasts, discount rates, future production volumes, operating
and capital expenditure, comparable market data and
asset performance.
– We evaluated the historical accuracy of prior year’s forecast
cash flows by comparing to current year’s actual cash flows.
– We considered the impact of geo-political risks, regulatory and
legislative changes and macro-economic disruptions as part of
our evaluation of indicators of impairment and impairment reversal.
– We involved our valuation specialists to assist in evaluating,
amongst other matters, the discount rates applied and commodity
price forecasts.
– We assessed commodity price forecasts assumed by the Group
against comparable market data.
The Group uses internal and external experts to provide geological,
metallurgical, mine planning and commodity price forecast information
to support key assumptions in the assessment of indicators of
impairment or impairment reversal.
With assistance from our mining reserves specialists, we examined the
information provided by the Group’s experts, including assessment of
the reserve estimation methodology against the relevant industry and
regulatory guidance. We also assessed the qualifications, competence
and objectivity of the internal and external experts.
Climate change related procedures:
With the assistance of our climate change and valuation specialists
we undertook the following procedures:
– Evaluated how the impact of climate change, as outlined in Note 16
of the financial report, was reflected in commodity price forecasts
and carbon price assumptions.
– Assessed how strategies to mitigate transition and physical risks,
such as the Group’s committed expenditure on decarbonisation
activities, were reflected into the forecast cashflows used
in the Group’s assessment of indicators of impairment and
impairment reversal.
– Assessed the accuracy of the Group’s disclosure regarding
climate-related risks that have the potential to adversely impact
long term steelmaking coal pricing and the carrying value of the
Group’s steelmaking coal CGU.
– Considered the consistency of Other Information reported by
the Group in relation to its climate change strategy, with the key
estimates adopted in the Group’s assessment of indicators of
impairment and impairment reversal.
– Assessed the adequacy of the Group’s climate change disclosures
in Note 16 of the financial report.
We assessed the adequacy of the disclosures included in Notes 11, 13
and 16 of the financial report.
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184 BHP Annual Report 2025
Closure and rehabilitation provisions
Why significant How our audit addressed the key audit matter
Refer to Note 15 ‘Closure and rehabilitation provisions’.
The Group has closure and rehabilitation obligations to restore
and rehabilitate environmental disturbances created by its operations
and related sites.
These obligations arise from regulatory and legislative requirements
across multiple jurisdictions.
The key inputs used to determine the required closure and
rehabilitation provisions are:
– Life of the operation or site;
– Estimated cost of future closure and rehabilitation activities;
– Timing of the closure and rehabilitation activities;
– Discount rates; and
– Current regulatory and legislative requirements.
As a result of these inputs and the evaluation of climate-related
risks and strategies, closure and rehabilitation provisions have a
high degree of estimation uncertainty with a wide potential range
of reasonably possible outcomes.
Closure and rehabilitation provisions were considered to be a key audit
matter as the estimation of these provisions is complex, involves a high
degree of judgement including the impacts of climate change and often
requires specialist expertise to estimate the costs required to satisfy
closure and rehabilitation obligations.
The Group’s current understanding of the potential financial impacts
of climate change have been incorporated into the related estimates,
to the extent they can be reliably measured, in the determination of the
closure and rehabilitation provisions, the results of which are disclosed
in Notes 15 and 16 of the financial report.
The primary audit procedures we performed, amongst others,
included the following:
– We evaluated the design of, and tested the operating effectiveness
of, the Group’s controls related to the determination of closure and
rehabilitation provision estimates.
– We evaluated the Group’s legal and regulatory obligations for
closure and rehabilitation, life of operation, future rehabilitation
costs, discount rates and timing of future cashflows.
– We assessed whether the future rehabilitation costs were consistent
with the closure plans prepared by the Group’s internal experts.
– We tested the mathematical accuracy of the closure and
rehabilitation provision calculations.
– We assessed the discount rates adopted to calculate the closure
and rehabilitation provisions, including benchmarking to comparable
market data.
– With the assistance of our rehabilitation subject matter specialists,
we evaluated a sample of closure and rehabilitation provisions for
operating and closed sites within the Group, including:
– Evaluation of the closure and rehabilitation plans with regard
to applicable regulatory and legislative requirements;
– Evaluation of the methodology used by the Group’s internal
mine closure engineers against industry practice and our
understanding of the business; and
– Assessment of the reasonableness of the timing of cash flows
and cost estimates against the closure and rehabilitation plan
and industry practice.
– The Group has used internal and external experts to support
the estimation of the mine closure and rehabilitation provisions.
With the assistance of our rehabilitation subject matter specialists,
we assessed the qualifications, competence and objectivity
of the internal and external experts and that the information
provided by the Group’s internal and external experts has been
appropriately reflected in the calculation of the closure and
rehabilitation provisions.
Climate change related procedures:
With the assistance of our climate change and rehabilitation subject
matter specialists, we undertook the following procedures:
– Evaluated how physical risk has been incorporated into the
closure and rehabilitation provision estimates, such as the Group’s
current understanding of changes to long-term weather outlooks
and the potential to impact site closure designs and post-closure
monitoring activities.
– Evaluated the consistency of Other Information reported by the
Group in relation to its climate change strategy with the key inputs
used to determine the closure and rehabilitation provisions.
– For the Group’s steelmaking coal assets, we evaluated the potential
for climate change to shorten mine operating lives and therefore
impact the timing of closure activities.
– Assessed the reasonableness of the Group’s disclosure of the
Timing, scope and expected cost of closure and rehabilitation
activities included in Note 16 of the financial report and the impact
of a one-year acceleration to the Group’s steelmaking coal closure
and rehabilitation provisions included in Note 16.
We assessed the adequacy of the disclosures included in Notes 15
and 16 of the financial report.
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5 Independent auditor’s report to the members of BHP Group Limited continued
Samarco dam failure provisions recognised and contingent liabilities disclosures
Why significant How our audit addressed the key audit matter
Refer to Note 3 ‘Exceptional items’, Note 4 ‘Significant events –
Samarco dam failure’ and Note 32 ‘Contingent liabilities’.
As at 30 June 2025, BHP 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 reached with the
Brazilian Public Authorities in October 2024.
Significant uncertainty remains around the delivery of the obligations
under the Settlement Agreement, including the risk of changes to
the eligibility parameters of the Settlement Agreement, and there is
a risk that outcomes may be materially higher or lower than amounts
reflected in the provision for the Samarco dam failure.
There were a number of significant judgements and disclosures made
by the Group in relation to the Samarco dam failure, including:
– Quantifying the costs to deliver all obligations under the
Settlement Agreement;
– Assessing the extent to which Samarco is able to directly fund
any future obligations relating to the Settlement Agreement;
– Determining the status, accounting treatment and quantification
(if applicable) of the legal claims against BHP Group Limited,
BHP Group (UK) Ltd, BHP Billiton Brasil Ltda and Samarco; and
– Disclosures relating to the contingent liabilities from the various
legal claims and other circumstances that represent exposures
to the Group.
We identified the Samarco dam failure provisions recognised, and
contingent liabilities disclosures, as a key audit matter as auditing these
estimates is complex. There is a high degree of estimation uncertainty,
together with a wide range of reasonable outcomes. Significant judgement
was required in relation to assessing the completeness and measurement
of the estimated cash outflows related to the provisions and contingent
liabilities, including the probability of the outflows.
The primary audit procedures we performed, amongst others, included
the following:
– We assessed the design of, and tested the operating effectiveness
of, the Group’s controls over the Samarco dam failure accounting
and disclosure process. This included testing controls over:
– The determination of the provision for the delivery of the obligations
under the Settlement Agreement, including significant assumptions
in the estimate of amounts payable for the obligations to perform
ongoing programs in relation to reparation and compensation;
– The determination of the amount of funding Samarco is able
to directly contribute to fund any future obligations; and
– The Group’s assessment of the legal claims and determination of
the associated provision and related contingent liability disclosures.
– We assessed the key assumptions used to determine the provision
recorded by the Group in relation to obligations by:
– Inquiring with the Group’s subject matter experts regarding
the cost estimate to deliver on the obligations under the
Settlement Agreement;
– Evaluating the qualifications, competence and objectivity of the
Group’s subject matter experts that contribute to the determination
of the cash flow estimates by considering their qualifications,
scope of work and remuneration structure;
– Comparing the nature and extent of obligations under the
Settlement Agreement to the activities included in the cash
flow forecasts;
– Selecting a sample of cost estimates included in the provision
and considering the underlying supporting documentation;
– Assessing the extent to which Samarco is able to directly fund the
obligations relating to the Settlement Agreement by:
– Comparison to Samarco’s business plan and our understanding
of the operations; and
– Performance of sensitivity analysis to evaluate the impact
of reasonably possible changes in key assumptions;
– Testing the mathematical accuracy of the provision model;
– Evaluating the historical accuracy of prior year’s forecasted cash
flows with respect to the Group’s current year actual cash flows; and
– Considering the claims and assessing their status and whether they
now represent liabilities through:
– Inquiries with the Group’s internal legal advisors, senior
management, Group finance, and members of the Executive
Leadership Team;
– Inspection of correspondence with external legal advisors; and
– Independent confirmation letters received from external
legal advisors.
We assessed the disclosures regarding the environmental and
legal contingent liabilities as included in Note 32, and the relevant
disclosures regarding the significant events relating to Samarco dam
failure as included in Note 4 against the disclosure requirements of the
relevant Australian Accounting Standards.
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186 BHP Annual Report 2025
Information other than the financial report and
auditor’s report thereon
The directors are responsible for the other information. The other
information comprises the information included in the Company’s
2025 annual report, but does not include the financial report and
our auditor’s report thereon.
Our opinion on the financial report does not cover the other information
and accordingly we do not express any form of assurance conclusion
thereon, with the exception of the Remuneration Report and our
related assurance opinion.
In connection with our audit of the financial report, our responsibility
is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears
to be materially misstated.
If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
a) the financial report (other than the consolidated entity disclosure
statement) that gives a true and fair view in accordance with
International Financial Reporting Standards as issued by the IASB,
Australian Accounting Standards and the Corporations Act 2001; and
b) the consolidated entity disclosure statement that is true and correct
in accordance with the Corporations Act 2001, and
for such internal control as the directors determine is necessary
to enable the preparation of:
(i) the financial report (other than the consolidated entity disclosure
statement) that gives a true and fair view and is free from material
misstatement, whether due to fraud or error; and
(ii) the consolidated entity disclosure statement that is true and correct
and is free of misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible
for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters relating to going concern and
using the going concern basis of accounting unless the directors
either intend to liquidate the Group or to cease operations, or have
no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financial report
Our objectives are to obtain reasonable assurance about whether
the financial report as a whole is free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted in
accordance with the ASAs and ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the ASAs and ISAs, we
exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
– Identify and assess the risks of material misstatement of the financial
report, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
– Obtain an understanding of internal control relevant to the audit
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Group’s internal control.
– Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures
made by the directors.
– Conclude on the appropriateness of the directors’ use of the going
concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue
as a going concern.
– Evaluate the overall presentation, structure and content of the financial
report, including the disclosures, and whether the financial report
represents the underlying transactions and events in a manner
that achieves fair presentation.
– Plan and perform the Group audit to obtain sufficient appropriate
audit evidence regarding the financial information of the entities
or business units within the Group as a basis for forming an opinion
on the Group financial report. We are responsible for the direction,
supervision and review of the audit work performed for the purposes
of the Group audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters,
the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify
during our audit.
We also provide the directors with a statement that we have complied
with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where
applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated to the directors, we determine those
matters that were of most significance in the audit of the financial
report of the current year and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated
in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of
such communication.
Report on the audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in the Directors’
Report for the year ended 30 June 2025.
In our opinion, the Remuneration Report of BHP Group Limited
for the year ended 30 June 2025, complies with section 300A of the
Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and
presentation of the Remuneration Report in accordance with section
300A of the Corporations Act 2001. Our responsibility is to express
an opinion on the Remuneration Report, based on our audit conducted
in accordance with ASAs and ISAs.
Ernst & Young
Rodney Piltz
Partner
Melbourne
19 August 2025
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
187Operating and Financial ReviewOverview Additional InformationGovernanceContents Financial Statements
1 Information on mining operations 188
2 Financial information summary 198
3 Financial information by commodity 199
4 Production 201
5 Major projects 203
6 Mineral Resources and Ore Reserves 204
7 People – performance data 217
8 Legal proceedings 218
9 Shareholder information 221
9.1 History and development 221
9.2 Markets 221
9.3 Organisational structure 221
9.4 Constitution 221
9.5 Share ownership 223
9.6 Dividends 224
9.7 American Depositary Receipts fees and charges 224
9.8 Supplemental cybersecurity disclosures for US reporting 225
9.9 Government regulations 225
10 Glossary 227
Additional information 1 Information on mining operations
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 6.2 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
of ownership
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; iron-rich detrital material is also present
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)
(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
188
BHP Annual Report 2025
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
of property
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)
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
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
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; iron-rich detrital material is also present
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 loadout,
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
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
Type and amount
of ownership
BHP Minerals 85%
Mitsui Iron Ore Corporation 7%
ITOCHU Minerals and Energy of Australia 8%
Operator BHP
189
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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; iron-rich detrital material
is also present
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
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
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 2025.
This table should be read in conjunction with OFR 6.3 and the production
table and reserves and resources tables in Additional information 4 and 6.
Mine & location
BHP Mitsubishi
Alliance (BMA)
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
Goonyella mine commenced in 1971, merged with
adjoining Riverside mine in 1989
Operates as Goonyella Riverside
Production commenced at:
– Peak Downs in 1972
– Saraji in 1974
– Norwich Park in 1979
– Broadmeadow (longwall operations) in 2005
– Caval Ridge in 2014
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
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 and medium ash thermal coal as
a secondary product
1 Information on mining operations continued
190 BHP Annual Report 2025
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
Energy Coal
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
of ownership
BHP 100%
Operator BHP
Title, leases
or options and
acreage involved
New South Wales Energy Coal holds 10 mining leases,
2 subleases and 1 exploration licence
Total mining leases approximately 8,750 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 FY2025, BHP
gained 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
Nickel mining operations
The following table contains additional details of our mining operations.
This table should be read in conjunction with OFR 6.5 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 2036
First renewal of 21 years is as a right. Further renewals
at government 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:
Six Mile Well and Goliath, both in full production
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
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 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 (ILUA), 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
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
Mining leases granted by Western Australian Government
Key leases expire between 2025 and 2040
Renewals of principal mineral lease in accordance
with State Agreement ratified by the Nickel (Agnew)
Agreement Act 1974
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
3 Mtpa of ore
191
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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 (ILUA), 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
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 government 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 (ILUA), 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 government 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
style
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)
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 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
1 Information on mining operations continued
192 BHP Annual Report 2025
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
22 kt–24 kt nickel)
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 6.1 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
Copper cathode trucked to port
Uranium oxide trucked to ports
Gold bullion transported by road and plane
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
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 Power
Purchase Agreement with Iberdrola
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
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) trucked
to ports
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
2011 – OZ Minerals acquired Carrapateena
exploration project
2019 – First saleable concentrate produced
2020 – 4.25 Mtpa ramp up achieved
2020 – Block Cave expansion approved
2020 – New 270 km transmission line to Prominent Hill
via Carrapateena commissioned
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
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
Nominal milling capacity of ~7 Mtpa
193
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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 and 119 to 122) 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 11,401 hectares across all 51 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
2019 – Prominent Hill expansion study commenced
2021 – Wira shaft mine expansion investment approved
2022 – Decision to increase the electric hoisting shaft’s
capacity from 6 Mtpa to 6.5 Mtpa
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.
Minerals Americas
Copper mining operations
The following table contains additional details of our mining operations.
This table should be read in conjunction with OFR 6.1 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, 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)
1 Information on mining operations continued
194 BHP Annual Report 2025
Mine & location
Pampa Norte
Spence
Atacama Desert
162 km northeast of Antofagasta, Chile
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,
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 and
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
December 2023
Mining concessions (exploitation): approximately
34,000 hectares
History and stage
of property
Production stage
Commercial production commenced in 1994
Expansions in 1996 and 1998
Cerro Colorado entered temporary care and
maintenance stage in December 2023
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,
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 FY2024, the National Environmental Certification
Service (SENACE) approved Antamina’s Modification of
the Environmental Impact Assessment (MEIA 1), allowing
the extension of the mine’s operational life from CY2028
to CY2036, within its current operational footprint as at the
date of this report. In FY2025, Antamina advanced the
implementation of the commitments outlined in MEIA 1
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
Processing
plants and other
available facilities
Primary crusher, concentrator, copper and zinc flotation
circuits, bismuth/moly cleaning circuit
Nominal milling capacity 145 ktpd
304 km concentrate pipeline
Port facilities at Huarmey
195
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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)
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
The Resolution Copper project is subject to a
federal permitting process pursuant to the National
Environmental Policy Act (NEPA) and other US
legislation, including requirements for consultation,
coordination and collaboration with Native
American Tribes
The NEPA process is led by the US Forest Service.
The Final Environmental Impact Statement (FEIS)
required by NEPA was published in June 2025 and is
subject to an objection process prior to a final Record
of Decision being published, expected late 2025
(subject to any legal challenges)
The publication of the FEIS was also a prerequisite
for the land exchange (LEX) with the US Government
to secure land critical for the project, under the 2014
Land Exchange Act. The FEIS and LEX remain under
ongoing litigation
The Resolution Copper Project is also required to obtain
several state and local permits, including air quality and
groundwater protection 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 and reverse osmosis plant, 2 active
underground shafts with associated support infrastructure,
including hoisting, ventilation and cooling, and a rail corridor
connecting the site to the national rail network
Mine & location
Vicuña San Juan Province of Argentina and Atacama Region
of Chile
150 km southeast of Copiapó, Chile
Means of access Private road
Type and amount
of ownership
50% BHP
50% Lundin Mining
Operator Vicuña Corp.
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
of property
Exploration stage
The Vicuña project is targeting the integrated
development of the Josemaria and the Filo del Sol
copper-gold-silver deposits
The Filo del Sol deposit is located predominantly in
the San Juan Province of Argentina, extending into the
Atacama Region of Chile. 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 Social
Impact Assessment 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
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
1,000-person camp established on-site at Batidero
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 6.2 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
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
1 Information on mining operations continued
196 BHP Annual Report 2025
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
style
Open-cut
Itabirites (metamorphic quartz-hematite rock) and friable
hematite ores
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
plants and other
available facilities
Facilities currently operating include 2 concentrators,
a system of tailings disposal combining a confined pit
and filtration plant for dry stacking of sandy tailings,
beneficiation plants, pipelines, 2 pellet plants
Nominal milling capacity 93 ktpd (for 2 concentrators)
400 kms 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 6.4 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 the
port at Westshore Terminal in Delta, British Columbia,
Canada
Type and amount
of ownership
BHP 100%
Operator BHP
Title, leases
or options and
acreage involved
Total area of the Jansen lease is approximately 1,120km
2
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
Mill, buildings and other facilities and infrastructure are
under construction
Mine & location
Pedra Branca Água Azul do Norte, Pará
Approximately 160 km from Marabá and 900 km from
Belém in the state of Pará, Brazil
Means of access Public road
From Água Azul to Parauapebas from highway (PA 150)
to be transported by train to the port of Itaqui in São
Luiz, state of Maranhão, Brazil
Type and amount
of ownership
BHP 100%
Operator OZ Minerals Brasil
Title, leases
or options and
acreage involved
Property belongs to OZ Minerals Brasil
History and stage
of property
2018 – OZ Minerals acquired mine operator Avanco
Resources, including projects in the Carajás Copper
Region and the Gurupi Greenstone Belt
2019 – Construction commenced
2020 – First developmental ore sent to Antas
for processing
2021 – Commencement of underground mining in
Pedra Branca and inaugural resource identification
announcement in Santa Lúcia
2022 – Ramped up to full production
2023 – Acquisition of OZ Minerals by BHP
2024 – Santa Lucia project permitting process granted
by SEMAS – environment agency of Pará State
2024 – Sale of gold assets (Gurupi Greenstone Belt) to
G Mining Ventures Corp.
2025 – BHP continued strategic review of OZ Minerals’
copper assets in the Carajás region of Brazil
Key permit
conditions
Closure plan to be updated in accordance with
requirements of ANM (n° 68/2021) when the life of mine
changes
Annual environmental report (RIAA) required to be
submitted in accordance with the activities developed for
the mine production
Mine type &
mineralisation
style
Underground
Iron oxide copper gold deposit. High-grade zones
of semi-massive and breccia style mineralisation.
Dominant chalcopyrite (copper mineralisation)
Power source Electricity supplied via a 5 MW transmission line
Processing
plants and other
available facilities
Material is processed in Antas Norte Plant, located in
the municipality of Curionópolis
Plant capacity is 800 ktpa and tailings are deposited
in the exhausted mine existing on-site
Mill, buildings and other facilities and infrastructure are
in the Curionópolis municipality
197Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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
US$M 2025 2024 2023 2022 2021
Consolidated Income Statement (Financial Statements 1.1)
Revenue 51,262 55,658 53,817 65,098 56,921
Profit from operations 19,464 17,537 22,932 34,106 25,515
Profit after taxation from Continuing operations 11,143 9,601 14,324 22,400 13,676
Profit/(loss) after taxation from Discontinued operations – – – 10,655 (225)
Profit after taxation from Continuing and Discontinued operations
attributable to BHP shareholders (Attributable profit) 9,019 7,897 12,921 30,900 11,304
Profit after taxation from Continuing operations attributable
to BHP shareholders
9,019
7,897 12,921 20,245 11,529
Dividends per ordinary share – paid during the period (US cents) 124.0 152.0 265.0 350.0 156.0
Dividends per ordinary share – determined in respect of the
period (US cents) 110.0 146.0 170.0 325.0 301.0
In specie dividend on merger of Petroleum with Woodside
(US cents) – – – 386.4 −
Basic earnings per ordinary share (US cents)
1
17 7.8 155.8 255.2 610.6 223.5
Diluted earnings per ordinary share (US cents)
1
17 7.4 155.5 254.7 609.3 223.0
Basic earnings from Continuing operations per ordinary share
(US cents)
1
17 7.8
155.8 255.2 400.0 228.0
Diluted earnings from Continuing operations per ordinary share
(US cents)
1
17 7.4 155.5 254.7 399.2 227.5
Number of ordinary shares (million)¹
– At period end 5,076 5,072 5,066 5,062 5,058
– Weighted average 5,073 5,068 5,064 5,061 5,057
– Diluted 5,083 5,077 5,073 5,071 5,068
Consolidated Balance Sheet (Financial Statements 1.3)²
Total assets 108,790 102,362 101,296 95,16 6 108,927
Net assets 52,218 49,120 48,530 48,766 55,605
Share capital (including share premium) 5,015 4,899 4,737 4,638 2,686
Total equity attributable to BHP shareholders 47,665 44,811 44,496 44,957 51,264
Consolidated Cash Flow Statement (Financial Statements 1.4)
Net operating cash flows
3
18,692 20,665 18,701 32,174 27,234
Capital and exploration expenditure
4,5
9,794 9,273 7,08 3 7,545 7,120
Other financial information (OFR 13)
Net debt
5
12,924 9,120 11,166 333 4,121
Underlying attributable profit
5
10,157 13,660 13,420 23,815 17,077
Underlying attributable profit – Continuing operations
5
10,157 13,660 13,420 21,319 16,985
Underlying EBITDA
5
25,978 29,016 27,956 40,634 35,073
Underlying EBIT
5
20,240 23,631 22,820 34,436 29,853
Underlying basic earnings per share (US cents)
5
200.2 269.5 265.0 470.6 337.7
Underlying basic earnings per share
– Continuing operations (US cents)
5
200.2 269.5 265.0 421.2 335.9
Underlying return on capital employed (per cent)
5
20.6 27.2 28.8 48.7 32.5
1. For more information on earnings per share refer to Financial Statements note 7 ‘Earnings per share’.
2. The Consolidated Balance Sheet for comparative periods includes the associated assets and liabilities in relation to Blackwater and Daunia mines (disposed in FY2024), Petroleum
(merger with Woodside in FY2022), BMC and Cerrejón (both disposed in FY2022) as IFRS 5 ‘Non-current Assets Held for Sale and Discontinued Operations’ does not require the
Consolidated Balance Sheet to be restated for comparative periods.
3. Net operating cash flows are after dividends received, net interest paid, proceeds and settlements of cash management related instruments, net taxation paid and includes Net operating
cash flows from Discontinued operations.
4. Capital and exploration and evaluation expenditure is presented on a cash basis and represents purchases of property, plant and equipment plus exploration and evaluation expenditure
from the Consolidated Cash Flow Statement and includes purchases of property, plant and equipment plus exploration and evaluation expenditure from Discontinued operations.
Exploration and evaluation expenditure is capitalised in accordance with our accounting policies, as set out in Financial Statements note 11 ‘Property, plant and equipment’.
5. We use non-IFRS financial information to reflect the underlying performance of the Group. Underlying attributable profit, Underlying basic earnings per share and Underlying return on
capital employed includes Continuing and Discontinued operations. Refer to OFR 13 for a reconciliation of non-IFRS financial information to their respective IFRS measure. Refer to
OFR 13.1 for the definition and method of calculation of non-IFRS financial information. Refer to Financial Statements note 21 ‘Net debt’ for the composition of Net debt.
2 Financial information summary
198 BHP Annual Report 2025
3 Financial information by commodity
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 13
For the definition and method of calculation of non-IFRS financial information refer to OFR 13.1
For more information as to the statutory determination of our reportable segments refer to Financial Statements note 1 ‘Segment reporting’
Year ended
30 June 2025
US$M Revenue
2
Underlying
EBITDA
3
Underlying
EBIT
3
Exceptional
items
4
Net
operating
assets
3
Capital
expenditure
Exploration
gross
Exploration
to profit
5
Copper
Escondida 13,177 8,593 7,558 14,093 2,390
Pampa Norte
6
2,726 1,270 696 5,051 675
Antamina
7
1,562 1,002 827 1,661 395
Copper South Australia
8
4,655 1,936 1,247 17,337 1,205
Other
7
127 (100) (174) 2,742 201
Total Copper from Group production 22,247 12,701 10,15 4 − 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
investments
7
(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
Samarco
9
− − − (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 Coal
10
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
investments
10
(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 Nickel
11
758 (589) (589) (210) 176 28 28
Other
12
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
199
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Year ended
30 June 2024
US$M Revenue
2
Underlying
EBITDA
3
Underlying
EBIT
3
Exceptional
items
4
Net
operating
assets
3
Capital
expenditure
Exploration
gross
Exploration
to profit
5
Copper
Escondida 10,013 5,759 4,821 13,113 1,806
Pampa Norte
6
2,375 896 468 4,843 721
Antamina
7
1,478 968 746 1,498 437
Copper South Australia
8
4,085 1,568 928 16,498 1,048
Other
7
72 (176) (228) 416 136
Total Copper from Group production 18,023 9,015 6,735 − 36,368 4,148
Third-party products 2,021 74 74 − − −
Total Copper 20,044 9,089 6,809 − 36,368 4,148 216 215
Adjustment for equity accounted
investments
7
(1,478) (525) (285) − − (437) (3) (2)
Total Copper statutory result 18,566 8,564 6,524 − 36,368 3,711 213 213
Iron Ore
Western Australia Iron Ore 27,805 18,964 16,902 20,597 2,026
Samarco
9
− − − (6,606) −
Other 122 (48) (74) (179) 7
Total Iron Ore from Group production 27,927 18,916 16,828 (3,066) 13,812 2,033
Third-party products 25 (3) (3) − − −
Total Iron Ore 27,952 18,913 16,825 (3,066) 13,812 2,033 86 41
Adjustment for equity accounted
investments − − − − − − − −
Total Iron Ore statutory result 27,952 18,913 16,825 (3,066) 13,812 2,033 86 41
Coal
BHP Mitsubishi Alliance
13
5,873 1,914 1,394 6,725 533
New South Wales Energy Coal
10
1,945 502 408 (211) 100
Other − (27) (50) (42) 14
Total Coal from Group production 7,818 2,389 1,752 880 6,472 647
Third-party products − − − − − −
Total Coal 7,818 2,389 1,752 880 6,472 647 14 3
Adjustment for equity accounted
investments
10
(152) (99) (75) − − (1) − −
Total Coal statutory result 7,666 2,290 1,677 880 6,472 646 14 3
Group and unallocated items
Potash − (255) (257) 6,138 1,090 1 1
Western Australia Nickel
11
1,473 (302) (374) (6) 1,254 50 58
Other
12
1 (194) (764) (1,421) 82 93 93
Total Group and unallocated items 1,474 (751) (1,395) (3,908) 4,711 2,426 144 152
Inter-segment adjustment − − − − − − − −
Total Group 55,658 29,016 23,631 (6,094) 61,363 8,816 457 409
1. Group profit before taxation comprised Underlying EBITDA of US$25,978 million (FY2024: US$29,016 million), exceptional items, depreciation, amortisation and impairments of
US$6,514 million (FY2024: US$11,479 million) and net finance costs of US$1,111 million (FY2024: US$1,489 million).
2. Total revenue from energy coal sales, including BMA and NSWEC, was US$1,652 million (FY2024: US$1,873 million).
3. For more information on the reconciliation of non-IFRS financial information to our statutory measures, reasons for usefulness and calculation methodology, please refer OFR 13
‘Non-IFRS financial information’ in the Annual Report.
4. Excludes exceptional items relating to Net finance costs US$458 million and Income tax benefit US$96 million (FY2024: Net finance costs US$506 million and Income tax benefit
US$837 million).
5. Includes US$ nil (FY2024: US$10 million) of exploration expenditure previously capitalised, written off as impaired (included in depreciation and amortisation).
6. Includes Spence and Cerro Colorado. Cerro Colorado entered temporary care and maintenance in December 2023.
7. Antamina, SolGold, Vicuña and Resolution (the latter three included in Other) are equity accounted investments and their financial information presented above reflects BHP Group’s
share, with the exception of net operating assets that represents the Group’s carrying value of investments accounted for using the equity method. Group and Copper level information is
reported on a statutory basis which reflects the application of the equity accounting method in preparing the Group financial statements – in accordance with IFRS. Underlying EBITDA of
the Group and the Copper segment, includes D&A, net finance costs and taxation expense of US$466 million (FY2024: US$525 million) related to equity accounted investments.
8. Includes Olympic Dam, Prominent Hill and Carrapateena.
9. Samarco is an equity accounted investment. All financial impacts following the Samarco dam failure have been reported as exceptional items in both reporting periods and net operating
assets represents predominantly the Group’s carrying value of the provision related to the Samarco dam failure.
10. Includes Newcastle Coal Infrastructure Group (NCIG) which is an equity accounted investment and its financial information presented above, with the exception of net operating assets,
reflects BHP Group’s share. Total Coal statutory result excludes the contribution related to NCIG until future profits exceed accumulated losses.
11. Western Australia Nickel is comprised of the Nickel West operations and the West Musgrave project, both of which transitioned into temporary suspension in December 2024.
12. Other includes functions, other unallocated operations including legacy assets 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.
13. On 2 April 2024 BHP and Mitsubishi Development Pty Ltd (MDP) completed the divestment of the Blackwater and Daunia mines (which were part of BMA) to Whitehaven Coal.
The Group’s share of Revenue, Underlying EBITDA, D&A, Underlying EBIT and Capital expenditure is included within BMA in the comparative period.
3 Financial information by commodity continued
200 BHP Annual Report 2025
The table below details our mineral and derivative product production for all operations for the three years ended 30 June 2025, 2024 and 2023.
Unless otherwise stated, the production numbers represent our share of production and include 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.
For information on minerals pricing during the past three years refer to OFR 9
BHP interest
%
BHP share of production
1
Year ended 30 June
2025 2024 2023
Copper
2
Payable metal in concentrate (kt)
Escondida, Chile
3
57.5 1,127.2 926.7 832.7
Pampa Norte, Chile
4
100 150.6 150.3 125.3
Copper South Australia, Australia
5
100 101.9 106.3 19.9
Antamina, Peru
6
33.75 118.9 143.9 138.4
Carajás, Brazil
7
100 9.4 8.2 1.6
Total 1,508.0 1,335.4 1,117.9
Cathode (kt)
Escondida, Chile
3
57.5 177.7 198.6 222.6
Pampa Norte, Chile
4
100 117.0 115.3 163.5
Copper South Australia, Australia
5
100 214.0 215.7 212.5
Total 508.7 529.6 598.6
Total copper (kt) 2,016.7 1,865.0 1,716.5
Lead
Payable metal in concentrate (t)
Antamina, Peru
6
33.75 2,232 332 657
Total 2,232 332 657
Zinc
Payable metal in concentrate (t)
Antamina, Peru
6
33.75 108,607 103,392 125,048
Total 108,607 103,392 125,048
Gold
Payable metal in concentrate (troy oz)
Escondida, Chile
3
57.5 169,075 181,061 189,095
Pampa Norte, Chile
4
100 12,980 13,280 26,811
Copper South Australia, Australia
5
100 172,565 163,061 32,736
Carajás, Brazil
7
100 7,306 5,558 1,153
Total 361,926 362,960 249,795
Refined gold (troy oz)
Copper South Australia, Australia
5
100 188,658 207,123 186,029
Total 188,658 207,123 186,029
Total gold (troy oz) 550,584 570,083 435,824
Silver
Payable metal in concentrate (troy koz)
Escondida, Chile
3
57.5 6,858 5,446 5,074
Pampa Norte, Chile
4
100 1,823 1,654 1,318
Copper South Australia, Australia
5
100 913 1,13 4 201
Antamina, Peru
6
33.75 4,162 3,359 3,885
Total 13,756 11,593 10,478
Refined silver (troy koz)
Copper South Australia, Australia
5
100 1,017 995 1,089
Total 1,017 995 1,089
Total silver (troy koz) 14,773 12,588 11,567
Uranium
Payable metal in concentrate (t)
Copper South Australia, Australia
5
100 3,154 3,603 3,406
Total 3,15 4 3,603 3,406
Molybdenum
Payable metal in concentrate (t)
Pampa Norte, Chile
4
100 694 794 990
Antamina, Peru
6
33.75 2,279 1,822 1,172
Total 2,973 2,616 2,162
4 Production
201Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
BHP interest
%
BHP share of production
1
Year ended 30 June
2025 2024 2023
Iron Ore
Production (kt)
8
Newman Joint Venture, Australia 85 54,218 58,102 56,945
Area C Joint Venture, Australia 85 119,110 105,868 107,375
Yandi Joint Venture, Australia 85 15,890 17,855 21,410
Jimblebar, Australia
9
85 67,381 73,111 66,801
Total Western Australia Iron Ore 256,599 254,936 252,531
Samarco, Brazil
6
50 6,382 4,748 4,512
Total iron ore 262,981 259,684 257,043
Steelmaking coal
Production (kt)
10
Blackwater, Australia
11
50 0 3,572 5,055
Goonyella Riverside, Australia 50 5,837 6,434 8,310
Peak Downs, Australia 50 4,574 4,217 5,480
Saraji, Australia 50 4,073 3,287 4,596
Daunia, Australia
11
50 0 1,513 1,989
Caval Ridge, Australia 50 3,526 3,252 3,590
Total BHP Mitsubishi Alliance (BMA) 18,010 22,275 29,020
Total steelmaking coal 18,010 22,275 29,020
Energy coal
Production (kt)
New South Wales Energy Coal, Australia 100 15,036 15,368 14,172
Total energy coal 15,036 15,368 14,172
Nickel
Saleable production (kt)
Western Australia Nickel, Australia
12,13
100 30.2 81.6 80.0
Total 30.2 81.6 80.0
Cobalt
Saleable production (t)
Western Australia Nickel, Australia
12,13
100 450 734 752
Total 450 734 752
Throughout this table figures in italics indicate that this figure has been adjusted since it was previously reported.
1. BHP share of production includes the Group’s share of production for which profit is derived from our equity accounted investments, unless otherwise stated.
2. Metal production is reported on the basis of payable metal.
3. Shown on 100 per cent basis. BHP interest in saleable production is 57.5 per cent.
4. The year ended 30 June 2025 includes production from Spence only. The year ended 30 June 2024 includes 11kt from Cerro Colorado, which entered temporary care and maintenance
in December 2023. The year ended 30 June 2023 includes production from both Spence and Cerro Colorado.
5. The years ended 30 June 2025 and 30 June 2024 include Olympic Dam, Prominent Hill and Carrapateena. The year ended 30 June 2023 includes Olympic Dam and two months of
production from Prominent Hill and Carrapateena from 1 May 2023, following the acquisition of OZ Minerals on 2 May 2023.
6. For statutory financial reporting purposes, this is an equity accounted investment. We have included production numbers from our equity accounted investments as the level of production
and operating performance from these operations impacts Underlying EBITDA of the Group. Our use of Underlying EBITDA is explained in OFR 4.3.
7. The year ended 30 June 2023 includes two months of production from 1 May 2023, following the acquisition of OZ Minerals on 2 May 2023.
8. Iron ore production is reported on a wet tonnes basis.
9. Presented on 100 per cent basis. BHP interest in saleable production is 85 per cent.
10. Steelmaking coal production is reported on the basis of saleable product. Production figures may include some thermal coal.
11. BHP completed the sale of the Blackwater and Daunia mines on 2 April 2024. Production reported until their divestment on 2 April 2024.
12. Nickel contained in matte and refined nickel metal, including briquette, powder, nickel sulphate and by-product streams.
13. Western Australia Nickel ramped down and entered temporary suspension in December 2024.
4 Production continued
202 BHP Annual Report 2025
5 Major projects
We continue to make progress at Jansen with Jansen Stage 1 (JS1) now 68 per cent complete. We estimate capital expenditure for JS1 to increase
from US$5.7 billion to be in the range of US$7.0 billion to US$7.4 billion (including contingencies) and first production to revert to the original schedule
of mid-CY2027. The estimated cost increase is driven by inflationary and real cost escalation pressures, design development and scope changes, and
our current assessment of lower productivity outcomes over the construction period. We expect to update the market on JS1’s timing and optimised capital
expenditure estimate in the second half of FY2026. In FY2026, underground and surface construction works will continue, including structural, mechanical
and electrical activities for the dry and wet mill areas.
Jansen Stage 2 (JS2) is 11 per cent complete. We have decided to extend the execution of JS2 by two years, shifting first production from FY2029 to
FY2031, as part of our regular review of capex sequencing under the Capital Allocation Framework.
JS2’s capital expenditure remains under review and we expect to update the market on JS2’s optimised capital expenditure estimate in the second half
of FY2026.
Commodity
Project
and ownership
Project scope/capacity
Capital expenditure
US$M
First production
target date
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
Currently under
review
Expected range
is 7,000 – 7,400
Currently under
review
Expected date may
revert to original
project timeline of
mid-CY2027
Approved in
August 2021
Project is 68%
complete
1
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
Currently under
review
Currently under
review
Expected date may
extend by two years
to FY2031
Approved in
October 2023
Project is 11%
complete
1. Jansen Stage 1 completion percentage has been re-baselined since our Q3 FY25 Operational Review.
203Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Resources are the estimated quantities of material that can potentially be
commercially recovered from BHP’s properties. Reserves are a subset
of resources that can be demonstrated to be able to be economically and
legally extracted. 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 prices and
exchange rates. The statement of Mineral Resources and Ore Reserves
presented in this Annual Report has been produced in accordance with
the Australian Securities Exchange (ASX) Listing Rules Chapter 5 and the
Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves, December 2012 (JORC Code).
Predicted sales prices, based on supply and demand forecast and current
and long-term historical average price trends, have been used. The Ore
Reserves tabulated are held within existing, permitted mining tenements.
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. Ore Reserves
may include areas where some additional approvals remain outstanding,
however it is anticipated such approvals will be obtained within the
timeframe required by the current life-of-mine schedule.
Declaration tables
– All Mineral Resources and Ore Reserves presented are reported in
100 per cent terms (unless otherwise stated) and represent estimates
as at 30 June 2025.
– Tonnes are reported as dry metric tonnes (unless otherwise stated).
All tonnes and grade/quality information have been rounded, so small
differences may be present in the totals.
– The Measured and Indicated Mineral Resources are inclusive of those
Mineral Resources modified to produce the Ore Reserves.
Other reporting jurisdictions
The information contained in this document is expected to differ from that
reported to the United States Securities and Exchange Commission (SEC)
in our Annual Report on Form 20-F for the year ended 30 June 2025.
Mineral resources and mineral reserves reporting requirements for SEC
filings in the United States are set forth in S-K 1300. S-K 1300 requires
resources estimates to be reported exclusive of reserves estimates and both
reported only for the portion attributable to our interest in such resources
or reserves. In addition, specific disclosure requirements pertaining to
economic assumptions and interpretation of reasonable prospects of
economic extraction are expected to result in further differences between
the resources and reserves estimates presented in this document and those
to be reported in our Annual Report on Form 20-F.
Key differences 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 and JORC Code (2012) 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 a reasonable and justifiable
commodity price selected by a qualified person. Further, the prices must
provide a reasonable basis for establishing the prospects of economic
extraction for mineral resources. The estimates reported in accordance
with S-K 1300 are generally based on the historical average costs and
prices over a timeframe of three years for production stage properties or,
for development stage properties, costs determined from first principles.
Our resources and reserves estimates to be reported in our Annual Report
on Form 20-F are therefore not directly comparable to those presented
in this document and should be considered in relation to the differing
reporting and disclosure requirements of the jurisdiction under which they
are presented.
Assurance and verification
BHP has internal controls over our Mineral Resources and Ore Reserves
estimation efforts that are designed to produce reasonable and reliable
estimates aligned with industry practice and our regulatory 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 Competent
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 Ore Reserves estimations and
the compiling of the estimates to be reported in accordance with the
ASX Listing Rules and JORC Code (2012).
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
Ore 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 Ore Reserves estimations, are managed by our operating
assets with assurance provided by the Resource Centre of Excellence.
These include procedures and standards defining minimum requirements of
critical aspects to support exploration and resource development programs,
spatial quality control checks on measurement points (e.g. collar, down-hole
survey), quality control checks on samples, including laboratory data quality
checks, geological database reviews and back-up routines and technical
peer review across the data gathering, integration and estimation processes.
Our internal controls for Mineral Resources and Ore Reserves estimations
include, but are not limited to:
– source data review from database extracts, using exploratory data statistical
analysis prior to use in the estimation of Mineral Resources. Identification of
data to exclude outliers and visual checks against estimation domains
– peer reviews of the estimation inputs based on statistical studies and
estimation parameters as applied in industry standard estimation software
– visual and statistical validation of the estimates against source data and
where available reconciliation to previous models, operational models
and production data
– peer review of the classification applied, considering quantitative
measures and qualitative considerations
– peer review of assumptions applied that convert resources to reserves
– independent audits or reviews for new or materially changed Mineral
Resources and Ore Reserves
For non-operated assets that we have an economic interest in, 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 assets in which we have an economic interest.
Operating assets manage internal risk registers relating to uncertainties in
the Mineral Resources and Ore Reserves estimates to direct future work
programs or estimation updates. These may include but are not limited to:
– areas of uncertainty in the estimates impacting local interpretations
– bulk density assumptions, based on sample testwork or operational results
– metallurgical recovery assumptions, based on testwork or
plant performance
– changes in commodity prices, costs and exchange rate assumptions
– geotechnical and hydrogeological considerations impacting on
underground or open-cut mining assumptions
– ore loss and dilution, mining selectivity and production rate assumptions
– cut-off value changes to meet product specifications
– changes in environmental, permitting and social licence to
operate assumptions
Further to assurance activities by the assets specifically relating to the
estimation of resources and reserves, the Resource Centre of Excellence
with subject matter experts has developed standards and guidelines
across BHP for reviewing and documenting the information supporting our
Mineral Resources and Ore Reserves estimates, describing the methods
used and verifying the reliability of such estimates. These activities are
supported by the following controls:
– The reporting of Mineral Resources and Ore Reserves estimates are
required to follow BHP’s standard procedures for public reporting in
accordance with current regulatory requirements.
– Annual risk reviews are conducted with Competent Persons and BHP
employees on all Mineral Resources and Ore Reserves to be reported,
including a year-on-year change impact assessment, reconciliation
performance metrics for the operating mines and a control assessment for
the estimation inputs. The information and supporting documentation are
prepared by the Competent Persons relating to the estimates and evaluated
for compliance with BHP’s internal controls. Based on these reviews,
recommendations of endorsement are provided to our senior management
for the use and reporting of the Mineral Resources and Ore Reserves.
6 Mineral Resources and Ore Reserves
204 BHP Annual Report 2025
– Periodic internal technical ‘deep dive’ assessments of Mineral
Resources and Ore Reserves are conducted on a frequency that is
informed by asset materiality and outcomes of the annual risk reviews.
– Management and closure reviews of actions assigned to Competent
Persons and BHP employees resulting from the annual risk reviews and
technical ‘deep dive’ assessments are conducted.
– Assurance is undertaken over the reporting documentation provided by
Competent Persons for public release and management and verification
of inputs into the BHP Resources and Reserves reporting database.
The Resource Centre of Excellence also provides an annual update on
assurance activities and changes relating to our resources and 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 Ore Reserves
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 may not necessarily be indicative
of future results. The assumptions and interpretations used to estimate our
Mineral Resources and Ore 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 Ore Reserves, such estimates may change from
period to period or may need to be revised. No assurance can be given that
our Mineral Resources and Ore Reserves presented in this Annual Report
will be recovered at the grade, quality or quantities presented.
There are numerous uncertainties inherent in the estimation of Mineral
Resources and Ore Reserves. Areas of uncertainty that may materially
impact our Mineral Resources and Ore 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 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 applicable to
the assumed underground or open-pit mining methods used to constrain
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 licence assumptions in the jurisdictions where we
operate; and (xii) changes in capital or operating costs.
Estimates of Mineral Resources are subject to further exploration and
evaluation of development and operating costs, grades, recoveries
and other material factors, and therefore, are subject to uncertainty.
Mineral Resources do not meet the threshold for Ore Reserves modifying
factors, such as engineering, legal or economic feasibility, that would
allow for the conversion to Ore Reserves. Accordingly, no assurance can
be given that our Mineral Resources not included in Ore Reserves will
become recoverable Proved and Probable Ore Reserves.
This statement is based on and fairly represents information and supporting
documentation compiled by Competent Persons (as defined in the JORC
Code). All Competent Persons have, at the time of reporting, sufficient
experience relevant to the style of mineralisation and type of deposit
under consideration and to the activity they are undertaking to qualify as a
Competent Person.
Each Competent Person listed is an employee of BHP or a company in
which BHP has a controlling interest (unless otherwise stated) and declares
they have no issues that could be perceived by investors as a material
conflict of interest in preparing the reported information. All Competent
Persons are a Member or Fellow of the Australasian Institute of Mining and
Metallurgy (AusIMM) or the Australian Institute of Geoscientists (AIG) or a
Recognised Professional Organisation. Each Competent Person consents to
the inclusion in this Annual Report of the matters based on their information
in the form and context in which it appears.
Competent Persons
Copper
Mineral
Resources
Escondida: R Maureira (MAusIMM) employed by Minera
Escondida Limitada
Cerro Colorado and Spence: R Guerrero Roman (MAusIMM)
Pampa Escondida, Pinta Verde and Chimborazo: E Mulet Cortes
(MAusIMM) employed by Minera Escondida Limitada
Pantera: G Lyall (FAusIMM), employed by Snowden Optiro
Succoth: M Cortes (FAusIMM)
Pedra Branca: F Araújo (MAusIMM-CP) employed by SRK
Consulting (Brazil)
Carrapateena and Fremantle Doctor: S Light (MAusIMM)
Prominent Hill: B Whittaker (MAusIMM)
Olympic Dam and Oak Dam: L Macdonald (MAusIMM)
Filo del Sol: L Evans (P.Eng., PEO) employed by SLR Consulting
(Canada) Ltd
Josemaria: P Daigle (P.Geo., PGO) employed by AGP Mining
Consultants and S Horan (P.Geo., PGO) employed by Resource
Modeling Solutions Ltd
Antamina: L Canchis Perez (FAusIMM) employed by Compañía
Minera Antamina S.A.
Ore
Reserves
Escondida: P Castillo (MAusIMM) employed by Minera
Escondida Limitada
Spence: M F Rubilar (MAusIMM)
Pedra Branca: J Moura (MAusIMM)
Carrapateena: C Chauvier (MAusIMM)
Prominent Hill: C Warren (MAusIMM)
Olympic Dam: N Kinthada (MAusIMM)
Antamina: F Angeles Beron (P.Eng., PEGBC) employed by
Compañía Minera Antamina S.A.
Iron Ore
Mineral
Resources
WAIO: C Allison (MAusIMM), M Furness (MAusIMM),
E Maidens (MAIG), S Whittaker (MAusIMM)
Samarco: L Bonfioli (MAusIMM) employed by Samarco
Mineração S.A.
Ore
Reserves
WAIO: A Balueva (MAusIMM), J Frewen (MAusIMM),
R Fuentes Acosta (MAusIMM), T Cockerill (MAusIMM)
Samarco: E Baeta (MAusIMM) employed by Samarco
Mineração S.A.
Coal
Coal
Resources
Goonyella Complex: D James (MAusIMM)
Peak Downs: J L Young (MAusIMM)
Caval Ridge: C Williams (MAusIMM-CP)
Saraji: B Wesley (MAusIMM)
Saraji South: J Robin (MAusIMM)
Mt Arthur Coal: J James (MAusIMM)
Togara South: R Saha (MAusIMM)
Coal
Reserves
Goonyella Complex: V Grajdan (MAusIMM) and
D Walker (MAusIMM)
Peak Downs: P Gupta (MAusIMM)
Caval Ridge and Saraji South: G Bustos (MAusIMM-CP)
Saraji: N Mohtaj (MAusIMM)
Mt Arthur Coal: D Perkins (MAusIMM)
Potash
Mineral
Resources
Jansen: B Németh (MAusIMM)
Ore
Reserves
Jansen: J Sondergaard (MAusIMM)
Nickel
Mineral
Resources
Leinster, Mt Keith, Yakabindie, Honeymoon Well, Cliffs, Jericho,
Nebo and Babel: G Merello (MAusIMM)
Annual Report compilation
F Bodycoat (MAusIMM-CP), Resource Centre of Excellence – BHP
205
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
6 Mineral Resources and Ore Reserves continued
Copper
Mineral Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1
Material type
Measured Resources Indicated Resources
Inferred Resources Total Resources BHP
interest %
Total Resources
Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu
Copper operations
Escondida
2
Oxide 83 0.58 – – 14 0.54 – – 2.0 0.51 – – 98 0.57 – – 57.5 106 0.56 – –
Mixed 47 0.48 – – 37 0.48 – – 20 0.45 – – 104 0.47 – – 107 0.47 – –
Sulphide 4,890 0.57 – – 4,000 0.53 – – 9,060 0.53 – – 17,90 0 0.55 – – 18,100 0.55 – –
Cerro Colorado
3
Oxide 68 0.61 – – 113 0.62 – – 5.7 0.58 – – 187 0.62 – – 100 187 0.62 – –
Supergene Sulphide 48 0.58 – – 97 0.58 – – 22 0.64 – – 167 0.59 – – 167 0.59 – –
Transitional Sulphide 72 0.45 – – 104 0.41 – – 29 0.42 – – 205 0.43 – – 205 0.43 – –
Hypogene Sulphide – – – – – – – – 1,700 0.36 – – 1,700 0.36 – – 1,700 0.36 – –
Spence
4
Oxide 10 0.55 – – 1.6 0.59 – – – – – – 12 0.56 – – 100 16 0.63 – –
Supergene Sulphide 67 0.52 – – 29 0.45 – – 0.3 0.42 – – 96 0.50 – – 111 0.52 – –
Transitional Sulphide 13 0.57 80 – 0.2 0.47 50 – – – – – 13 0.57 80 – 16 0.58 100 –
Hypogene Sulphide 706 0.45 150 – 696 0.43 130 – 786 0.39 90 – 2,190 0.42 120 – 2,220 0.43 130 –
Copper projects
Pampa Escondida Sulphide 294 0.53 – 0.07 1,150 0.55 – 0.10
5,400 0.44 – 0.04 6,840 0.46 – 0.06 57.5 6,840 0.46 – 0.06
Pinta Verde Oxide 104 0.59 – – 64 0.52 – – 15 0.54 – – 183 0.56 – – 57.5 188 0.56 – –
Sulphide – – – – 23 0.50 – – 37 0.45 – – 60 0.47 – – 60 0.47 – –
Chimborazo Sulphide – – – – 135 0.50 – – 80 0.60 – – 215 0.54 – – 57.5 215 0.54 – –
Pantera
5
OC Sulphide – – – – 32 1.15 – 0.14 4.6 1.03 – 0.13 36 1.14 – 0.14 100 20 1.21 – 0.17
Succoth OC Sulphide – – – – 61 0.57 – – 57 0.52 – – 120 0.54 – – 100 120 0.54 – –
Copper gold operations Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg
Pedra Branca
6
UG Sulphide 2.4 1.68 0.47 – 12 1.41 0.40 – 11 1.29 0.40 – 26 1.38 0.41 – 100 16 1.53 0.40 –
Carrapateena UG Sulphide 130 1.00 0.42 4 470 0.61 0.26 3 310 0.28 0.14 2 910 0.55 0.24 3 100 900 0.55 0.24 3
Prominent Hill
7
UG Sulphide 44 1.18 0.60 3 48 0.96 0.85 3 53 0.87 1.02 2 144 1.00 0.84 3 100 158 0.93 0.81 3
SP Sulphide 0.1 0.44 0.65 1 1.6 0.11 0.57 0.3 – – – – 1.7 0.13 0.58 0.4 1.9 0.24 0.57 0.7
SP Low-grade – – – – – – – – – – – – – – – – 2.2 0.16 0.34 0.6
Copper gold projects
Oak Dam
8
UG Sulphide – – – – – ` – – 1,340 0.66 0.33 – 1,340 0.66 0.33 – 100 – – – –
Fremantle Doctor UG Sulphide – – – – – – – – 100 0.51 0.33 1 100 0.51 0.33 1 100 100 0.51 0.33 1
Filo del Sol
9
Sulphide – – – – 1,19 0 0.54 0.39 8 6,080 0.37 0.20 3 7,270 0.40 0.23 4 50 – – – –
Copper Oxide – – – – 434 0.34 0.28 2 331 0.25 0.21 2 765 0.30 0.25 2 – – – –
Gold Oxide – – – – 288 – 0.29 3 673 – 0.21 3 961 – 0.23 3 – – – –
Silver Oxide – – – – 77 0.34 0.37 91 72 0.10 0.17 26 149 0.22 0.27 60 – – – –
Josemaria
9
Sulphide 654 0.33 0.25 1 992 0.25 0.14 1 736 0.22 0.11 1 2,382 0.26 0.16 1 50 – – – –
Copper uranium gold operation Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg
Olympic Dam
10
OC Sulphide 3,850 0.63 0.20 0.32 1 3,430 0.58 0.20 0.23 1 2,880 0.58 0.20 0.23 1 10,160 0.60 0.20 0.26 1 100 9,720 0.59 0.20 0.26 1
UG Sulphide 790 1.58 0.46 0.62 3 480 1.54 0.47 0.54 3 280 1.53 0.42 0.66 3 1,550 1.56 0.46 0.60 3 1,650 1.51 0.45 0.57 3
Copper zinc operation Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo
Antamina
11
Sulphide Cu only 273 0.77 0.11 8 240 335 0.85 0.14 9 260 587 0.88 0.14 8 240 1,200 0.85 0.13 8 240 33.75 1,150 0.84 0.13 8 250
Sulphide Cu-Zn 62 0.85 1.59 21 100 165 1.05 1.85 19 80 197 1.03 1.62 16 80 424 1.01 1.70 18 80 473 1.01 1.65 17 80
UG Sulphide Cu only – – – – – – – – – – 282 1.23 0.20 11 170 282 1.23 0.20 11 170 268 1.28 0.21 11 170
UG Sulphide Cu-Zn – – – – – – – – – – 150 1.11 1.50 15 60 150 1.11 1.50 15 60 166 1.12 1.33 15 60
206 BHP Annual Report 2025
Copper
Mineral Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1
Material type
Measured Resources Indicated Resources
Inferred Resources Total Resources BHP
interest %
Total Resources
Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu Mt %Cu ppmMo g/tAu
Copper operations
Escondida
2
Oxide 83 0.58 – – 14 0.54 – – 2.0 0.51 – – 98 0.57 – – 57.5 106 0.56 – –
Mixed 47 0.48 – – 37 0.48 – – 20 0.45 – – 104 0.47 – – 107 0.47 – –
Sulphide 4,890 0.57 – – 4,000 0.53 – – 9,060 0.53 – – 17,90 0 0.55 – – 18,100 0.55 – –
Cerro Colorado
3
Oxide 68 0.61 – – 113 0.62 – – 5.7 0.58 – – 187 0.62 – – 100 187 0.62 – –
Supergene Sulphide 48 0.58 – – 97 0.58 – – 22 0.64 – – 167 0.59 – – 167 0.59 – –
Transitional Sulphide 72 0.45 – – 104 0.41 – – 29 0.42 – – 205 0.43 – – 205 0.43 – –
Hypogene Sulphide – – – – – – – – 1,700 0.36 – – 1,700 0.36 – – 1,700 0.36 – –
Spence
4
Oxide 10 0.55 – – 1.6 0.59 – – – – – – 12 0.56 – – 100 16 0.63 – –
Supergene Sulphide 67 0.52 – – 29 0.45 – – 0.3 0.42 – – 96 0.50 – – 111 0.52 – –
Transitional Sulphide 13 0.57 80 – 0.2 0.47 50 – – – – – 13 0.57 80 – 16 0.58 100 –
Hypogene Sulphide 706 0.45 150 – 696 0.43 130 – 786 0.39 90 – 2,190 0.42 120 – 2,220 0.43 130 –
Copper projects
Pampa Escondida Sulphide 294 0.53 – 0.07 1,150 0.55 – 0.10
5,400 0.44 – 0.04 6,840 0.46 – 0.06 57.5 6,840 0.46 – 0.06
Pinta Verde Oxide 104 0.59 – – 64 0.52 – – 15 0.54 – – 183 0.56 – – 57.5 188 0.56 – –
Sulphide – – – – 23 0.50 – – 37 0.45 – – 60 0.47 – – 60 0.47 – –
Chimborazo Sulphide – – – – 135 0.50 – – 80 0.60 – – 215 0.54 – – 57.5 215 0.54 – –
Pantera
5
OC Sulphide – – – – 32 1.15 – 0.14 4.6 1.03 – 0.13 36 1.14 – 0.14 100 20 1.21 – 0.17
Succoth OC Sulphide – – – – 61 0.57 – – 57 0.52 – – 120 0.54 – – 100 120 0.54 – –
Copper gold operations Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg
Pedra Branca
6
UG Sulphide 2.4 1.68 0.47 – 12 1.41 0.40 – 11 1.29 0.40 – 26 1.38 0.41 – 100 16 1.53 0.40 –
Carrapateena UG Sulphide 130 1.00 0.42 4 470 0.61 0.26 3 310 0.28 0.14 2 910 0.55 0.24 3 100 900 0.55 0.24 3
Prominent Hill
7
UG Sulphide 44 1.18 0.60 3 48 0.96 0.85 3 53 0.87 1.02 2 144 1.00 0.84 3 100 158 0.93 0.81 3
SP Sulphide 0.1 0.44 0.65 1 1.6 0.11 0.57 0.3 – – – – 1.7 0.13 0.58 0.4 1.9 0.24 0.57 0.7
SP Low-grade – – – – – – – – – – – – – – – – 2.2 0.16 0.34 0.6
Copper gold projects
Oak Dam
8
UG Sulphide – – – – – ` – – 1,340 0.66 0.33 – 1,340 0.66 0.33 – 100 – – – –
Fremantle Doctor UG Sulphide – – – – – – – – 100 0.51 0.33 1 100 0.51 0.33 1 100 100 0.51 0.33 1
Filo del Sol
9
Sulphide – – – – 1,19 0 0.54 0.39 8 6,080 0.37 0.20 3 7,270 0.40 0.23 4 50 – – – –
Copper Oxide – – – – 434 0.34 0.28 2 331 0.25 0.21 2 765 0.30 0.25 2 – – – –
Gold Oxide – – – – 288 – 0.29 3 673 – 0.21 3 961 – 0.23 3 – – – –
Silver Oxide – – – – 77 0.34 0.37 91 72 0.10 0.17 26 149 0.22 0.27 60 – – – –
Josemaria
9
Sulphide 654 0.33 0.25 1 992 0.25 0.14 1 736 0.22 0.11 1 2,382 0.26 0.16 1 50 – – – –
Copper uranium gold operation Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg
Olympic Dam
10
OC Sulphide 3,850 0.63 0.20 0.32 1 3,430 0.58 0.20 0.23 1 2,880 0.58 0.20 0.23 1 10,160 0.60 0.20 0.26 1 100 9,720 0.59 0.20 0.26 1
UG Sulphide 790 1.58 0.46 0.62 3 480 1.54 0.47 0.54 3 280 1.53 0.42 0.66 3 1,550 1.56 0.46 0.60 3 1,650 1.51 0.45 0.57 3
Copper zinc operation Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo
Antamina
11
Sulphide Cu only 273 0.77 0.11 8 240 335 0.85 0.14 9 260 587 0.88 0.14 8 240 1,200 0.85 0.13 8 240 33.75 1,150 0.84 0.13 8 250
Sulphide Cu-Zn 62 0.85 1.59 21 100 165 1.05 1.85 19 80 197 1.03 1.62 16 80 424 1.01 1.70 18 80 473 1.01 1.65 17 80
UG Sulphide Cu only – – – – – – – – – – 282 1.23 0.20 11 170 282 1.23 0.20 11 170 268 1.28 0.21 11 170
UG Sulphide Cu-Zn – – – – – – – – – – 150 1.11 1.50 15 60 150 1.11 1.50 15 60 166 1.12 1.33 15 60
207
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Copper
Mineral Resources continued
Footnotes related to Copper Mineral Resources and Ore Reserves:
1. Cut-off criteria:
Deposit Material type Mineral Resources Ore Reserves
Escondida Oxide ≥ 0.20%SCu −
Full SaL − Variable cut-off grade (V_COG): oxide ≥ 0.20%SCu and sulphide
≥0.30%Cu.
Mixed ≥ 0.30%Cu −
Sulphide ≥0.25%Cu or ≥0.30%Cu depending
on processing
≥ 0.30%Cu and greater than V_COG of the concentrator. Sulphide ore
is processed in the concentrator plants as a result of an optimised
mine plan with consideration of technical and economical parameters
in order to maximise net present value.
Sulphide Leach − ≥ 0.25%Cu and lower than V_COG and with >30% of copper carried by
more leachable copper minerals. Sulphide Leach ore is processed by
dump leaching as an alternative to the concentrator process.
Cerro Colorado Oxide & Supergene Sulphide ≥ 0.25%Cu −
Transitional Sulphide
&Hypogene Sulphide
≥ 0.20%Cu
Spence All material types ≥ 0.20%Cu ≥ 0.20%Cu
Pampa Escondida Sulphide ≥ 0.30%Cu −
Pinta Verde Oxide ≥ 0.20%SCu −
Sulphide ≥ 0.30%Cu −
Chimborazo Sulphide ≥ 0.30%Cu −
Pantera OC Sulphide ≥ 0.17%Cu −
Succoth OC Sulphide Net smelter return (NSR) cut-off of A$19/t which
represents the mill limited break-even cut-off
inclusive of processing, ore re-handling and
material handling costs per total tonne mined.
−
Pedra Branca UG Sulphide Cut-off based on NSR value of US$78.73/t. Cut-off based on NSR for two regions of the mine: US$78.73/t above
mining level 810 and US$84.20/t below the 810 mining level.
Carrapateena UG Sulphide Cut-off based on NSR value of A$25/t to
generate a continuous shape in which all
material has the potential to be mined by block
cave mining method.
Cut-off based on NSR value of A$43/t for block cave mining area.
Cut-off in the SLC varies by block between NSR A$60-110/t.
Prominent Hill UG Sulphide Cut-off based on NSR value of A$85/t, being
life of mine break-even cut-off excluding
offsite overheads.
Cut-off based on NSR value of A$92 except for upper western mine
area which uses A$65/t.
SP Sulphide Cut-off based on NSR value of A$29/t which is
inclusive of re-handling and processing costs.
Cut-off based on NSR value of A$29/t which is inclusive of re-handling
and processing costs.
Oak Dam UG Sulphide Mineral resource contains all material within
a continuous shape designed to capture
material generally above 0.2%Cu and assumes
non-selective block cave mining method.
−
Fremantle Doctor UG Sulphide Cut-off based on NSR value of A$25/t used
to generate a continuous shape in which all
material has the potential to be mined by block
cave mining method.
−
Filo del Sol All material types Net smelter return (NSR) cut-offs which
incorporate various metallurgical recoveries,
smelter terms, refining costs and long-term
consensus metal price forecasts from banks,
financial institutions and other sources.
Sulphide: US$10.39/t; Copper Oxide & Silver
Oxide: US$15.59/t; Gold Oxide: US$10.23/t.
−
6 Mineral Resources and Ore Reserves continued
208 BHP Annual Report 2025
Deposit Material type Mineral Resources Ore Reserves
Josemaria Sulphide Net smelter return (NSR) cut-off of US$7.30/t
which incorporates various metallurgical
recoveries, smelter terms, refining costs and
long-term consensus metal price forecasts
from banks, financial institutions and
other sources.
−
Olympic Dam OC Sulphide Variable between 0.1%Cu and 0.3%Cu −
UG Sulphide Variable between 0.6%Cu and 1.0%Cu Variable cut-off between 1.0% and 1.7%Cu
Low-grade – ≥ 0.6%Cu
Antamina Sulphide Cu only Net value per concentrator hour (US$/h)
incorporating all material revenue and
cost factors and includes metallurgical
recovery (see footnote 14 for averages).
Mineralisation at the US$0/hr limit is
approximately equivalent to 0.17%Cu, 2.0g/
tAg, 140ppmMo with 7,055t/hr mill throughput.
Net value per concentrator hour (US$/h) incorporating all material
revenue and cost factors and includes metallurgical recovery (see
footnote 14 for averages). Mineralisation at the US$6,000/hr limit
is approximately equivalent to 0.16%Cu, 1.6g/tAg, 174ppmMo with
7,032t/hr mill throughput.
Sulphide Cu-Zn Net value per concentrator hour (US$/h)
incorporating all material revenue and cost
factors and includes metallurgical recovery
(see footnote 14 for averages). Mineralisation
at the US$0/hr limit is approximately equivalent
to 0.08%Cu, 0.75%Zn, 4.1g/tAg with 6,286t/hr
mill throughput.
Net value per concentrator hour (US$/h) incorporating all material
revenue and cost factors and includes metallurgical recovery (see
footnote 14 for averages). Mineralisation at the US$6,000/hr limit
is approximately equivalent to 0.10%Cu, 0.87%Zn, 4.5g/tAg with
6,284t/hr mill throughput.
UG Sulphide Cu only NSR value incorporating all material
revenue and includes metallurgical recovery.
Only sub-level stoping mining method at
US$53.8/t break-even cut-off was applied,
equivalent to 0.78%Cu, 7.1g/tAg and
180ppmMo. Predicted metallurgical recoveries
of 92% for Cu, 79% for Ag and 46% for Mo.
−
UG Sulphide Cu-Zn NSR value incorporating all material
revenue and includes metallurgical recovery.
Only sub-level stoping mining method at
US$53.8/t break-even cut-off was applied,
equivalent to 0.64%Cu, 0.86%Zn and 8.8g/tAg.
Predicted metallurgical recoveries of 83% for
Cu, 84% for Zn and 60% for Ag.
−
2. Escondida – The decrease in Oxide material type was due to depletion.
3. Cerro Colorado – Remained on care and maintenance.
4. Spence – The decrease in Oxide, Supergene Sulphide and Transitional Sulphide material types was due to depletion.
5. Pantera – The increase in Mineral Resources was mainly due to updated macro-economics and a change in cut-off grade applied to the updated resource estimate which was informed
by additional drilling.
6. Pedra Branca – The increase in Mineral Resources was due to a resource estimate update informed by additional drilling and updated macroeconomics partially offset by depletion.
7. Prominent Hill – The decrease in UG Sulphide material type was mainly due to a change in cut-off grade and depletion. The decrease in SP Sulphide and SP Low-grade material types
was due to depletion.
8. Oak Dam - Mineral Resource was announced 27 August 2024.
9. Josemaria and Filo del Sol - First-time reporting of Josemaria and Filo del Sol deposits.
10. Olympic Dam – The decrease in UG Sulphide material type was due to a resource estimate update informed by additional drilling.
11. Antamina – The decrease in Sulphide Cu-Zn material type was mainly due to depletion and a resource estimate update informed by additional drilling. An increase in UG Sulphide Cu only
material type was due to a resource estimate update informed by additional drilling. A decrease in UG Sulphide Cu-Zn material type was due to a resource estimate update informed by
additional drilling.
209Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Copper
Ore Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,12,13
Material type
Proved Reserves Probable Reserves
Total Reserves
BHP
interest %
Total Reserves
Mt %Cu ppmMo Mt %Cu ppmMo Mt %Cu ppmMo Mt %Cu ppmMo
Copper operations
Escondida
14,16
Full SaL 165 0.81 – 35 0.61 – 200 0.78 – 57.5 216 0.77 –
Sulphide 3,230 0.61 – 1,400 0.54 – 4,630 0.59 – 4,770 0.60 –
Sulphide Leach 1,210 0.38 – 238 0.37 – 1,450 0.38 – 1,500 0.38 –
Spence
14,15,17
Oxide 9.2 0.54 – 0.6 0.53 – 9.8 0.54 – 100 13 0.63 –
Supergene Sulphide 29 0.57 – 37 0.51 – 66 0.54 – 81 0.56 –
Transitional Sulphide 7.3 0.53 120 0.2 0.41 96 7.5 0.53 120 11 0.55 120
Hypogene Sulphide 360 0.57 190 385 0.50 130 745 0.53 160 775 0.54 160
Copper gold operations Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg
Pedra Branca
15,18
UG Sulphide 1.3 1.80 0.48 – 2.5 1.85 0.49 – 3.8 1.83 0.49 – 100 2.9 2.03 0.52 –
Carrapateena
14,19
UG Sulphide – – – – 162 1.02 0.42 4 162 1.02 0.42 4 100 185 1.03 0.41 4
Prominent Hill
14,20
UG Sulphide 26 1.07 0.59 3 20 0.84 0.79 2 46 0.97 0.68 2 100 49 0.97 0.63 3
SP Sulphide 0.1 0.44 0.65 1 1.6 0.11 0.57 0.3 1.7 0.13 0.58 0.4 1.9 0.24 0.57 0.7
SP Low-grade – – – – – – – – – – – – 2.2 0.16 0.34 0.6
Copper uranium gold operation Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg
Olympic Dam
14,21
UG Sulphide 345 1.90 0.59 0.73 4 246 1.71 0.55 0.60 4 591 1.82 0.57 0.68 4 100 558 1.85 0.59 0.67 4
Low-grade – – – – – 43 0.84 0.28 0.34 2 43 0.84 0.28 0.34 2 42 0.84 0.28 0.33 2
Copper zinc operation Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo
Antamina
14,22
Sulphide Cu only 189 0.82 0.12 8 280 185 0.91 0.15 9 300 375 0.86 0.13 9 290 33.75 137 0.95 0.15 9 340
Sulphide Cu-Zn 45 1.00 1.76 19 110 107 1.08 1.96 19 80 151 1.06 1.90 19 90 61 0.98 1.89 18 90
12. Approximate drill-hole spacings used to classify the reserves were:
Deposit Proved Reserves Probable Reserves
Escondida Full SaL: 30m x 30m Full SaL: 45m x 45m
Sulphide: 50m x 50m Sulphide: 90m x 90m
Sulphide Leach: 60m x 60m Sulphide Leach: 115m x 115m
Spence Oxide 50m x 50m
100m x 100m for all material types
Supergene Sulphide, Transitional Sulphide & Hypogene
Sulphide: 70m x 70m
Pedra Branca <25m <50m
Carrapateena – 25m to 100m
Prominent Hill <35m 35m to 75m
Olympic Dam 20m to 35m 35m to 70m
Antamina 25m to 55m 40m to 80m
13. Ore delivered to process plant.
14. Metallurgical recoveries for the operations were:
Deposit Metallurgical recovery
Escondida Full SaL: 76%
Sulphide: 85%
Sulphide Leach: 42%
Spence Oxide: 84%
Supergene Sulphide: 81%
Carrapateena Cu 92%, Au 77%, Ag 74%
Prominent Hill UG Sulphide and SP Sulphide: Cu 88%, Au 72%, Ag 72%
Olympic Dam Cu 94%, U3O8 65%, Au 71%, Ag 63%
Antamina Sulphide Cu only: Cu 92%, Zn 0%, Ag 79%, Mo 46%
Sulphide Cu-Zn: Cu 83%, Zn 84%, Ag 60%, Mo 0%
15. Metallurgical recoveries based on testwork:
Deposit Metallurgical recovery
Spence Transitional Sulphide and Hypogene Sulphide: Cu 82%, Mo 55%
Pedra Branca Cu 83-95%, Au 53-72%
16. Escondida – The decrease in Full SaL material type was due to depletion.
17. Spence – The decrease in Ore Reserves was due to depletion.
18. Pedra Branca – The increase in Ore Reserves was due to an updated resource estimate informed by additional drilling partially offset by depletion.
19. Carrapateena – The decrease in Ore Reserves was due to an updated mine plan, changes in macro economics and depletion.
20. Prominent Hill – The decrease in UG Sulphide material type was due to an updated resource estimate, updated modifying factors and depletion. The decrease in SP Sulphide and SP
Low-grade material types was due to depletion.
21. Olympic Dam – The increase in UG Sulphide material type was due to an updated resource estimate and updated modifying factors partially offset by depletion.
22. Antamina – The increase in Ore Reserves was due to upgrades in the infrastructure based on recent government approvals.
6 Mineral Resources and Ore Reserves continued
210 BH P Annual Report 2025
Copper
Ore Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,12,13
Material type
Proved Reserves Probable Reserves
Total Reserves
BHP
interest %
Total Reserves
Mt %Cu ppmMo Mt %Cu ppmMo Mt %Cu ppmMo Mt %Cu ppmMo
Copper operations
Escondida
14,16
Full SaL 165 0.81 – 35 0.61 – 200 0.78 – 57.5 216 0.77 –
Sulphide 3,230 0.61 – 1,400 0.54 – 4,630 0.59 – 4,770 0.60 –
Sulphide Leach 1,210 0.38 – 238 0.37 – 1,450 0.38 – 1,500 0.38 –
Spence
14,15,17
Oxide 9.2 0.54 – 0.6 0.53 – 9.8 0.54 – 100 13 0.63 –
Supergene Sulphide 29 0.57 – 37 0.51 – 66 0.54 – 81 0.56 –
Transitional Sulphide 7.3 0.53 120 0.2 0.41 96 7.5 0.53 120 11 0.55 120
Hypogene Sulphide 360 0.57 190 385 0.50 130 745 0.53 160 775 0.54 160
Copper gold operations Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg
Pedra Branca
15,18
UG Sulphide 1.3 1.80 0.48 – 2.5 1.85 0.49 – 3.8 1.83 0.49 – 100 2.9 2.03 0.52 –
Carrapateena
14,19
UG Sulphide – – – – 162 1.02 0.42 4 162 1.02 0.42 4 100 185 1.03 0.41 4
Prominent Hill
14,20
UG Sulphide 26 1.07 0.59 3 20 0.84 0.79 2 46 0.97 0.68 2 100 49 0.97 0.63 3
SP Sulphide 0.1 0.44 0.65 1 1.6 0.11 0.57 0.3 1.7 0.13 0.58 0.4 1.9 0.24 0.57 0.7
SP Low-grade – – – – – – – – – – – – 2.2 0.16 0.34 0.6
Copper uranium gold operation Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg Mt %Cu kg/tU
3
O
8
g/tAu g/tAg
Olympic Dam
14,21
UG Sulphide 345 1.90 0.59 0.73 4 246 1.71 0.55 0.60 4 591 1.82 0.57 0.68 4 100 558 1.85 0.59 0.67 4
Low-grade – – – – – 43 0.84 0.28 0.34 2 43 0.84 0.28 0.34 2 42 0.84 0.28 0.33 2
Copper zinc operation Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo
Antamina
14,22
Sulphide Cu only 189 0.82 0.12 8 280 185 0.91 0.15 9 300 375 0.86 0.13 9 290 33.75 137 0.95 0.15 9 340
Sulphide Cu-Zn 45 1.00 1.76 19 110 107 1.08 1.96 19 80 151 1.06 1.90 19 90 61 0.98 1.89 18 90
211
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Iron Ore
Mineral Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,2
Material
type
Measured Resources Indicated Resources
Inferred Resources Total Resources BHP
interest
%
Total Resources
Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI
Iron ore operations
WAIO
3,4,5,6
BKM 3,190 60.6 0.14 4.6 2.7 5.4 5,110 59.4 0.14 5.4 2.6 6.2 11,400 58.9 0.14 5.7 2.6 6.7 19,700 59.3 0.14 5.5 2.6 6.3 85 19,830 59.3 0.14 5.4 2.6 6.4
CID 310 55.7 0.05 6.4 2.3 11.0 340 56.2 0.06 6.4 2.3 10.3 870 54.7 0.06 6.8 3.0 11.1 1,520 55.2 0.06 6.6 2.7 10.9 1,540 55.2 0.06 6.6 2.7 10.9
DID – – – – – – 190 62.0 0.06 3.5 3.3 3.5 100 60.1 0.06 4.5 4.0 4.8 290 61.3 0.06 3.9 3.5 4.0 280 61.2 0.06 4.1 3.7 3.8
MM 1,500 61.3 0.07 3.5 1.8 6.4 1,480 59.9 0.06 4.6 2.1 6.8 4,280 59.3 0.07 5.0 2.4 7.1 7,260 59.8 0.07 4.6 2.2 6.9 7,870 59.6 0.07 4.8 2.2 7.0
Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc
Samarco ROM 3,020 39.3 0.05 1,720 37.7 0.05 420 37.4 0.06 5,160 38.6 0.05 50 5,190 38.6 0.05 –
Ore Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,7
Material
type
Proved Reserves Probable Reserves
Total Reserves BHP
interest
%
Total Reserves
Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI
Iron ore operations
WAIO
3,4, 8,9,10,11,12
BKM 1,170 62.2 0.13 3.4 2.3 4.6 1,270 61.8 0.13 3.6 2.2 5.0 2,440 62.0 0.13 3.5 2.3 4.8 85 2,560 62.0 0.13 3.5 2.3 4.8
CID – – – – – – – – – – – – – – – – – – 25 56.9 0.05 5.6 1.8 10.8
MM 670 62.3 0.06 2.9 1.6 5.9 950 61.3 0.07 3.4 1.8 6.5 1,610 61.7 0.06 3.2 1.7 6.3 1,740 61.7 0.06 3.2 1.7 6.3
Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc
Samarco ROM 78 40.3 0.07 748 43.0 0.05 826 42.7 0.06 50 849 42.7 0.06
1. The Mineral Resources and Ore Reserves qualities listed refer to in situ mass percentage on a dry weight basis. Wet tonnes are reported for WAIO deposits and Samarco, including
moisture contents for WAIO: BKM - Brockman 3%, CID - Channel Iron Deposits 8%, DID - Detrital Iron Deposits 4%, MM - Marra Mamba 4% and Samarco: ROM 6.5%.
2. A single cut-off grade was applied in WAIO per deposit ranging from 50-58%Fe with an additional threshold of <6%Al203 applied to the DID material type. For Samarco the cut-off
grade was 22%Fe.
3. WAIO – Mineral Resources and Ore Reserves are reported on a Pilbara basis by material type to align with our production of blended lump products which comprises BKM and
MM material types and blended fines products including CID. This also reflects our single logistics chain and associated management system.
4. WAIO – BHP interest is reported as Pilbara Ore Reserves tonnes weighted average across all joint ventures which can vary from year to year. BHP ownership varies between
85% and 100%.
5. WAIO – Mineral Resources are restricted to areas which have been identified for inclusion based on a risk assessment, including heritage sites.
6. WAIO – The decrease in the MM material type was due to a change in cut-off grade, depletion and sterilisation partially offset by resource estimate updates informed by additional drilling.
Steelmaking Coal
Coal Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,2
Mining
method Coal type
Measured Resources Indicated Resources
Inferred Resources Total Resources
BHP
interest %
Total Resources
Mt %Ash %VM %S Mt %Ash %VM %S Mt %Ash %VM %S Mt %Ash %VM %S Mt %Ash %VM %S
Metallurgical coal operations
BMA
Goonyella Complex
3
OC Met 434 8.7 21.9 0.51 10 9.3 22.0 0.53 11 12.4 24.8 0.59 455 9.0 22.1 0.52 50 765 9.0 22.1 0.52
UG Met 1,750 9.8 20.8 0.53 405 10.3 19.4 0.54 522 9.3 18.9 0.51 2,680 9.7 20.0 0.52 2,495 9.7 20.0 0.52
Peak Downs
4
OC Met 953 10.6 19.2 0.61 548 11.6 19.0 0.66 310 12.6 20.1 0.74 1,810 11.3 19.3 0.64 50 1,958 10.9 19.4 0.65
Caval Ridge
5
OC Met 364 12.4 22.1 0.57 82 11.8 22.8 0.59 43 12.4 23.6 0.58 488 12.3 22.3 0.58 50 640 12.1 20.7 0.54
Saraji
6
OC Met/Th 1,100 10.0 17.4 0.64 453 10.8 17.1 0.71 500 10.7 16.9 0.70 2,060 10.4 17.2 0.67 50 2,075 11.0 16.4 0.65
UG Met/Th 1 10.9 16.4 0.57 74 9.5 16.1 0.55 93 9.1 16.3 0.57 169 9.3 16.2 0.56 445 11.7 16.2 0.59
Saraji South
7
OC Met 281 9.4 17.2 0.68 104 9.9 17.3 0.75 52 10.6 17.2 0.75 437 9.7 17.2 0.70 50 490 9.7 17.1 0.69
1. Tonnages are reported on an in situ moisture basis. Coal qualities are for a potential product on an air-dried basis.
2. Cut-off criteria:
Deposit Mining method Coal Resources Coal Reserves
Goonyella Complex OC ≥ 0.5m seam thickness, coke yield ≥50% and ≤35% raw ash ≥ 0.5m seam thickness
UG ≥ 2.0m seam thickness, coke yield ≥50% and ≤35% raw ash ≥ 3.5m seam thickness
Peak Downs OC ≥ 0.4m seam thickness and ≤35% raw ash ≥ 0.4m seam thickness
Caval Ridge OC ≥ 0.3m seam thickness and coke yield ≥30% ≥ 0.4m seam thickness
Saraji OC ≥ 0.5m seam thickness, coke yield ≥50% and ≤50% raw ash ≥ 0.5m seam thickness
UG ≥ 2.0m seam thickness, coke yield ≥50% and ≤50% raw ash –
Saraji South OC ≥ 0.5m seam thickness, coke yield ≥50% and ≤50% raw ash ≥ 0.5m seam thickness
3. Goonyella Complex – The decrease in OC Coal Resources was due to updated modifying factors, mine design and economic assessment. The increase in UG Coal Resources was due
to updated mine design to incorporate some OC Coal Resources.
4. Peak Downs – The decrease in Coal Resources was due to updated modifying factors.
5. Caval Ridge – The decrease in Coal Resources was due to updated modifying factors and economic assessment.
6. Saraji – The decrease in UG Coal Resources was due to updated cut-off criteria, economic assessment and mine plan.
7. Saraji South – The decrease in Coal Resources was due to updated modifying factors.
6 Mineral Resources and Ore Reserves continued
212 BHP Annual Report 2025
Iron Ore
Mineral Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,2
Material
type
Measured Resources Indicated Resources
Inferred Resources Total Resources BHP
interest
%
Total Resources
Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI
Iron ore operations
WAIO
3,4,5,6
BKM 3,190 60.6 0.14 4.6 2.7 5.4 5,110 59.4 0.14 5.4 2.6 6.2 11,400 58.9 0.14 5.7 2.6 6.7 19,700 59.3 0.14 5.5 2.6 6.3 85 19,830 59.3 0.14 5.4 2.6 6.4
CID 310 55.7 0.05 6.4 2.3 11.0 340 56.2 0.06 6.4 2.3 10.3 870 54.7 0.06 6.8 3.0 11.1 1,520 55.2 0.06 6.6 2.7 10.9 1,540 55.2 0.06 6.6 2.7 10.9
DID – – – – – – 190 62.0 0.06 3.5 3.3 3.5 100 60.1 0.06 4.5 4.0 4.8 290 61.3 0.06 3.9 3.5 4.0 280 61.2 0.06 4.1 3.7 3.8
MM 1,500 61.3 0.07 3.5 1.8 6.4 1,480 59.9 0.06 4.6 2.1 6.8 4,280 59.3 0.07 5.0 2.4 7.1 7,260 59.8 0.07 4.6 2.2 6.9 7,870 59.6 0.07 4.8 2.2 7.0
Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc
Samarco ROM 3,020 39.3 0.05 1,720 37.7 0.05 420 37.4 0.06 5,160 38.6 0.05 50 5,190 38.6 0.05 –
Ore Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,7
Material
type
Proved Reserves Probable Reserves
Total Reserves BHP
interest
%
Total Reserves
Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI Mt %Fe %P %SiO
2
%Al
2
O
3
%LOI
Iron ore operations
WAIO
3,4, 8,9,10,11,12
BKM 1,170 62.2 0.13 3.4 2.3 4.6 1,270 61.8 0.13 3.6 2.2 5.0 2,440 62.0 0.13 3.5 2.3 4.8 85 2,560 62.0 0.13 3.5 2.3 4.8
CID – – – – – – – – – – – – – – – – – – 25 56.9 0.05 5.6 1.8 10.8
MM 670 62.3 0.06 2.9 1.6 5.9 950 61.3 0.07 3.4 1.8 6.5 1,610 61.7 0.06 3.2 1.7 6.3 1,740 61.7 0.06 3.2 1.7 6.3
Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc
Samarco ROM 78 40.3 0.07 748 43.0 0.05 826 42.7 0.06 50 849 42.7 0.06
7. Approximate drill-hole spacings used to classify the reserves were:
Deposit Proved Reserves Probable Reserves
WAIO 50m x 50m 150m x 50m
Samarco 100m x 100m 200m x 200m
8. WAIO – Recovery was 100% for all material types (tonnage basis).
9. WAIO – Iron ore is marketed for WAIO as Lump (direct blast furnace feed) and Fines (sinter plant feed).
10. WAIO – Cut-off grades used to estimate Ore Reserves range from 50–62%Fe for all material types. Ore delivered to process facility.
11. WAIO – Ore Reserves are all located on State Agreement mining leases that guarantee the right to mine. Across WAIO, State Government approvals (including environmental and
heritage clearances) are required before commencing mining operations in a particular area. Included in the Ore Reserves are select areas where one or more approvals remain
outstanding, but where, based on the technical investigations carried out as part of the mine planning process and company knowledge and experience of the approvals process, it is
expected that such approvals will be obtained as part of the normal course of business and within the time frame required by the current mine schedule.
12. WAIO – The decrease in CID material type was due to depletion and changes in the mine plan. The decrease in MM material type was due to depletion.
Steelmaking Coal
Coal Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,2
Mining
method Coal type
Measured Resources Indicated Resources
Inferred Resources Total Resources
BHP
interest %
Total Resources
Mt %Ash %VM %S Mt %Ash %VM %S Mt %Ash %VM %S Mt %Ash %VM %S Mt %Ash %VM %S
Metallurgical coal operations
BMA
Goonyella Complex
3
OC Met 434 8.7 21.9 0.51 10 9.3 22.0 0.53 11 12.4 24.8 0.59 455 9.0 22.1 0.52 50 765 9.0 22.1 0.52
UG Met 1,750 9.8 20.8 0.53 405 10.3 19.4 0.54 522 9.3 18.9 0.51 2,680 9.7 20.0 0.52 2,495 9.7 20.0 0.52
Peak Downs
4
OC Met 953 10.6 19.2 0.61 548 11.6 19.0 0.66 310 12.6 20.1 0.74 1,810 11.3 19.3 0.64 50 1,958 10.9 19.4 0.65
Caval Ridge
5
OC Met 364 12.4 22.1 0.57 82 11.8 22.8 0.59 43 12.4 23.6 0.58 488 12.3 22.3 0.58 50 640 12.1 20.7 0.54
Saraji
6
OC Met/Th 1,100 10.0 17.4 0.64 453 10.8 17.1 0.71 500 10.7 16.9 0.70 2,060 10.4 17.2 0.67 50 2,075 11.0 16.4 0.65
UG Met/Th 1 10.9 16.4 0.57 74 9.5 16.1 0.55 93 9.1 16.3 0.57 169 9.3 16.2 0.56 445 11.7 16.2 0.59
Saraji South
7
OC Met 281 9.4 17.2 0.68 104 9.9 17.3 0.75 52 10.6 17.2 0.75 437 9.7 17.2 0.70 50 490 9.7 17.1 0.69
213
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Steelmaking Coal
Coal Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1, 2,8, 9,10,11
Mining
method Coal type
Proved
Reserves
Probable
Reserves
Total
Reserves
Proved
Marketable
Reserves
Probable
Marketable
Reserves
Total Marketable Reserves
BHP
interest
%
Total Marketable Reserves
Mt Mt Mt Mt Mt Mt %Ash %VM %S Mt %Ash %VM %S
Metallurgical coal operations
BMA
Goonyella Complex
12
OC Met 433 9.7 443 316 6.7 323 9.8 22.4 0.53 50 332 8.9 22.5 0.52
UG Met 23 – 23 17 – 17 9.2 23.9 0.54 19 9.0 22.9 0.54
Peak Downs
13,14
OC Met/Th 682 211 893 379 124 503 10.5 21.8 0.64 50 546 10.5 21.9 0.64
Caval Ridge
15
OC Met 199 37 236 108 20 128 10.5 22.4 0.58 50 174 10.5 22.4 0.57
Saraji
13,16
OC Met/Th 239 22 261 154 12 166 10.6 18.6 0.67 50 245 10.5 18.0 0.64
Saraji South
17
OC Met 51 2.0 53 33 1.0 34 9.8 17.5 0.63 50 47 9.6 17.6 0.65
8. Geophysically logged, laboratory analysed, cored drillholes with a coal sample linear recovery greater than 90% are used to classify Coal Reserves. Drill-hole spacings vary between
seams and geological domains, as determined by geostatistical analysis where possible. The range of maximum drill-hole spacings used to classify the Coal Reserves were:
Deposit Proved Reserves Probable Reserves
Goonyella Complex 900m to 1,250m 1,750m to 2,400m
Peak Downs 200m to 2,250m 400m to 4,300m
Caval Ridge 300m to 1,750m 550m to 2,950m
Saraji 350m to 1,800m 700m to 3,450m
Saraji South 500m to 2,650m 1,000m to 4,200m
9. Product recoveries for the operations were:
Deposit Product recovery
Goonyella Complex 73% OC, 74% UG
Peak Downs 56%
Caval Ridge 54%
Saraji 64%
Saraji South 64%
Energy Coal
Coal Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,2
Mining
method
Coal
type
Measured Resources Indicated Resources
Inferred Resources Total Resources
BHP
interest
%
Total Resources
Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV
Energy coal operation
Mt Arthur Coal
3
OC Th 77 19.3 29.2 0.61 6,200 31 18.5 30.0 0.55 6,260 4.8 19.3 28.3 0.50 6,210 113 19.1 29.4 0.59 6,220 100 124 19.5 29.4 0.61 6,110
Energy coal project
Togara South
4
UG Th – – – – – – – – – – – – – – – – – – – 100 1,620 14.0 29.0 0.31 6,510
Coal Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
Mining
method
Coal
type
Proved
Reserves
Probable
Reserves
Total
Reserves Proved Marketable Reserves
Probable Marketable Reserves Total Marketable Reserves
BHP
interest
%
Total Marketable Reserves
Mt Mt Mt Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV
Energy coal operation
Mt Arthur Coal
1,2,5,6,7,8
OC Th 79 21 100 62 16.1 30.2 0.53 5,780 16 16.1 30.2 0.53 5,780 78 16.1 30.2 0.53 5,780 100 77 15.5 30.4 0.51 5,910
1. Cut-off criteria:
Deposit Coal Resources Coal Reserves
Mt Arthur Coal ≥ 0.3m seam thickness and ≤35% raw ash ≥ 0.3m seam thickness, ≤50% raw ash, ≤50% product ash and ≤32%ROM ash
2. Qualities are reported on an air-dried in situ basis. Tonnages are reported as in situ.
3. Mt Arthur Coal – The decrease in Coal Resources was due to depletion partially offset by a resource estimate update informed by additional drilling.
4. Divestment of Togara South was completed in FY25.
5. Mt Arthur Coal – Approximate drill-hole spacings used to classify the reserves were:
Deposit Coal Resources Coal Reserves
Mt Arthur Coal 200m to 800m (geophysical logged, ≥95% core recovery) 400m to 1,550m (geophysical logged, ≥95% core recovery)
6. Mt Arthur Coal – Overall product recovery for the operation was 70%.
7. Mt Arthur Coal – Moisture content when mined is 8.1%. Moisture content for Marketable Reserves is 10.4%.
8. Mt Arthur Coal – Coal delivered to handling plant where it may be washed through a coal handling and preparation plant or sold as raw product.
6 Mineral Resources and Ore Reserves continued
214 BHP Annual Report 2025
Steelmaking Coal
Coal Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1, 2,8, 9,10,11
Mining
method Coal type
Proved
Reserves
Probable
Reserves
Total
Reserves
Proved
Marketable
Reserves
Probable
Marketable
Reserves
Total Marketable Reserves
BHP
interest
%
Total Marketable Reserves
Mt Mt Mt Mt Mt Mt %Ash %VM %S Mt %Ash %VM %S
Metallurgical coal operations
BMA
Goonyella Complex
12
OC Met 433 9.7 443 316 6.7 323 9.8 22.4 0.53 50 332 8.9 22.5 0.52
UG Met 23 – 23 17 – 17 9.2 23.9 0.54 19 9.0 22.9 0.54
Peak Downs
13,14
OC Met/Th 682 211 893 379 124 503 10.5 21.8 0.64 50 546 10.5 21.9 0.64
Caval Ridge
15
OC Met 199 37 236 108 20 128 10.5 22.4 0.58 50 174 10.5 22.4 0.57
Saraji
13,16
OC Met/Th 239 22 261 154 12 166 10.6 18.6 0.67 50 245 10.5 18.0 0.64
Saraji South
17
OC Met 51 2.0 53 33 1.0 34 9.8 17.5 0.63 50 47 9.6 17.6 0.65
10. Total Coal Reserves include allowances for diluting materials and for losses that occur when coal is mined and reported at 4% moisture. Marketable Coal Reserves is the product
available at the specific moisture content (10% Goonyella Complex; 10.5% Peak Downs and Caval Ridge; 10.1% Saraji, 10-11% Saraji South) and at an air-dried quality basis for sale after
the beneficiation of the Total Coal Reserves.
11. Coal delivered to handling plant.
12. Goonyella Complex – The decrease in UG Coal Reserves was mainly due to depletion offset by input model updates.
13. Percentage of secondary thermal products for Reserves with coal type Met/Th are: Peak Downs 6% and Saraji 1%. Contributions may vary year on year based on market demand.
14. Peak Downs – The decrease in Coal Reserves was due to updated modifying factors, depletion and macroeconomics.
15. Caval Ridge – The decrease in Coal Reserves was due to updated macroeconomics, updated mine plan and depletion.
16. Saraji – The decrease in Coal Reserves was mainly due to updated modifying factors, depletion and updated macro-economics.
17. Saraji South – The decrease in Coal Reserves was mainly due to updated macroeconomics, updated modifying factors and depletion.
Energy Coal
Coal Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1,2
Mining
method
Coal
type
Measured Resources Indicated Resources
Inferred Resources Total Resources
BHP
interest
%
Total Resources
Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV
Energy coal operation
Mt Arthur Coal
3
OC Th 77 19.3 29.2 0.61 6,200 31 18.5 30.0 0.55 6,260 4.8 19.3 28.3 0.50 6,210 113 19.1 29.4 0.59 6,220 100 124 19.5 29.4 0.61 6,110
Energy coal project
Togara South
4
UG Th – – – – – – – – – – – – – – – – – – – 100 1,620 14.0 29.0 0.31 6,510
Coal Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
Mining
method
Coal
type
Proved
Reserves
Probable
Reserves
Total
Reserves Proved Marketable Reserves
Probable Marketable Reserves Total Marketable Reserves
BHP
interest
%
Total Marketable Reserves
Mt Mt Mt Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV Mt %Ash %VM %S
Kcal/
kg CV
Energy coal operation
Mt Arthur Coal
1,2,5,6,7,8
OC Th 79 21 100 62 16.1 30.2 0.53 5,780 16 16.1 30.2 0.53 5,780 78 16.1 30.2 0.53 5,780 100 77 15.5 30.4 0.51 5,910
215
Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Potash
Mineral Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
Material
type
Measured Resources Indicated Resources Inferred Resources Total Resources
BHP
interest
%
Total Resources
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Potash project
Jansen
1,2,3,4,5
LPL 5,230 25.6 7.7 0.08 – – – – 1,280 25.6 7.7 0.08 6,510 25.6 7.7 0.08 100 6,510 25.6 7.7 0.08
Ore Reserves
As at 30 June 2025 As at 30 June 2024
Commodity
deposit Material type
Proved Resources Probable Reserves Total Reserves
BHP
interest
%
Total Reserves
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Mt
%K
2
O
%Insol.
%MgO
Potash project
Jansen
1,4,5,6
LPL – – – – 1,070 24.9 7.5 0.10 1,070 24.9 7.5 0.10 100 1,070 24.9 7.5 0.10
1. Mineral Resources and Ore Reserves are stated for the Lower Patience Lake (LPL) potash unit.
2. Mineral Resources are reported using a seam thickness of 3.96m from the top of 406 clay seam.
3. Measured Resources grade has been assigned to Inferred Resources.
4. %K
2
O grade is equivalent to %KCl content using a mineralogical conversion factor of 1.583.
5. Tonnages are reported on an in situ moisture content basis, estimated to be 0.3%.
6. Ore Reserves are based on an expected metallurgical recovery of 88%.
Nickel
Mineral Resources
As at 30 June 2025 As at 30 June 2024
Commodity
deposit
1
Material type
Measured
Resources
Indicated
Resources
Inferred
Resources
Total
Resources
BHP
interest
%
Total
Resources
Mt %Ni Mt %Ni Mt %Ni Mt %Ni Mt %Ni
Nickel West operations
Leinster
2
OC Disseminated Sulphide 3.9 0.69 73 0.57 52 0.63 129 0.60 100 133 0.60
OC Massive Sulphide 0.12 4.0 0.63 5.1 0.30 5.0 1.0 4.9 1.6 4.8
UG Disseminated Sulphide 16 1.8 14 1.5 6.8 1.3 37 1.6 36 1.6
UG Massive Sulphide 0.72 5.7 2.1 5.5 1.2 4.4 4.1 5.2 4.1 5.2
Oxide – – – – – – – – 5.1 1.8
SP Oxidised – – – – – – – – 1.9 1.7
Mt Keith OC Disseminated Sulphide 132 0.54 67 0.52 24 0.52 223 0.53 100 223 0.53
Cliffs
3
UG Disseminated Sulphide – – – – – – – – 100 5.3 0.89
UG Massive Sulphide – – – – – – – – 2.1 3.7
Yakabindie OC Disseminated Sulphide 146 0.61 86 0.61 148 0.61 380 0.61 100 384 0.61
Nickel West projects
Honeymoon Well OC Disseminated Sulphide – – 138 0.62 6.5 0.66 144 0.62 100 144 0.62
UG Disseminated Sulphide 9.6 0.69 18 0.75 3.9 0.72 31 0.73 31 0.73
UG Massive Sulphide 0.47 5.6 0.82 6.2 0.15 6.7 1.4 6.1 1.4 6.1
Jericho
4
OC Disseminated Sulphide – – 26 0.54 82 0.53 108 0.53 100 98 0.56
Nickel copper projects Mt %Ni %Cu Mt %Ni %Cu Mt %Ni %Cu Mt %Ni %Cu Mt %Ni %Cu
Nebo OC Sulphide – – – 49 0.34 0.32 1.1 0.35 0.38 50 0.34 0.32 100 50 0.34 0.32
Babel OC Sulphide 91 0.31 0.36 190 0.28 0.31 58 0.32 0.35 340 0.30 0.33 100 340 0.30 0.33
1. Cut-off criteria:
Deposit Material type Mineral Resources
Leinster OC Disseminated Sulphide ≥ 0.40%Ni
OC Massive Sulphide Stratigraphic
UG Disseminated Sulphide Variable between stratigraphic for block cave and ≥1.0%Ni
UG Massive Sulphide Stratigraphic
Mt Keith OC Disseminated Sulphide Variable between 0.35%Ni and 0.40%Ni based on mineralogy
Yakabindie OC Disseminated Sulphide ≥ 0.35%Ni
Honeymoon Well OC Disseminated Sulphide ≥ 0.35%Ni
UG Disseminated Sulphide ≥ 0.40%Ni
UG Massive Sulphide Stratigraphic
Jericho OC Disseminated Sulphide ≥ 0.40%Ni
Nebo & Babel OC Sulphide Cut-off based on NSR value of A$13/t which represents mill-limited break-even cut-off inclusive of processing and
re-handling costs per total tonne mined
2. Leinster – The decrease in OC Massive Sulphide was due to sterilisation from partial pit backfill. The decrease in Oxide and SP Oxidised material types was due to updated
metallurgical assumptions.
3. Cliffs – The decrease in Cliffs Mineral Resource was due to an updated economic assessment.
4. Jericho – The increase in OC Disseminated Sulphide material type was mainly due to a resource estimate update informed by additional drilling.
6 Mineral Resources and Ore Reserves continued
216 BHP Annual Report 2025
7 People – performance data
1,2,3
Table 1 – Workforce data and diversity by region FY2025
Region
Number and
% of employees
Average number
and % of contractors
2
Employees by gender number and %
Employees Employees % Contractors Contractors % Male Male % Female Female %
Asia 1,631 3.9 3,774 7.6 615 37.7 1,016 62.3
Australia 31,191 75.2 15,631 31.4 19,092 61.2 12,099 38.8
Europe 97 0.2 6 <0.1 39 40.2 58 59.8
North America 749 1.8 2,145 4.3 390 52.1 359 47.9
South America 7,795 18.8 28,284 56.7 4,192 53.8 3,603 46.2
Total 41,463 100 49,841 100 24,328 58.7 17,135 41.3
Table 2 – Employees by category and diversity for FY2025
Gender Region
Employment
category Total % of total Male Female Asia Australia Europe
North
America
South
America
Full time 39,369 94.9 23,723 15,646 1,609 29,413 92 725 7,530
Part time 1,279 3.1 464 815 3 1,268 3 5 0
Fixed term full time 589 1.4 97 492 19 284 2 19 265
Fixed term part time 79 0.2 16 63 0 79 0 0 0
Casual 147 0.4 28 119 0 147 0 0 0
Total 41,463 100 24,328 17,135 1,631 31,191 97 749 7,795
Table 3 – Employees by category and diversity for FY205
Gender Gender % Age Group %
Category Total Male Female Male % Female % Under 30 30–39 40–49 50+
Senior leaders 246 147 99 59.8 40.2 0.4 7.3 50.8 41.5
Managers 1,354 787 567 58.1 41.9 0.4 22.8 50.8 26
Supervisory and
professional 18,012 10,084 7,928 56.0 44.0 9 38.7 33.8 18.5
Operators and
general support 21,851 13,310 8,541 60.9 39.1 21.3 29.3 24.3 25.2
Total 41,463 24,328 17,135 58.7 41.3 15.1 33.1 29.4 22.4
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 2025.
Gender identity
Number of
Board members
Percentage
of the Board
Number of senior
positions on the Board
(CEO, CFO, SID
and Chair)
4
Number in executive
management
5
Percentage of executive
management
5
Men 5 56% 3 5 45%
Women 4 44% – 6 55%
Not specified/
prefer not to say 0 0% – 0 0%
Ethnic background
Number of
Board members
Percentage
of the Board
Number of senior
positions on the Board
4
Number in executive
management
5
Percentage of executive
management
5
White British or other
White (including
minority-white groups) 7 78% 2 7 64%
Mixed/Multiple
ethnic groups 1 11% 1 3 27%
Asian/Asian British 1 11% – 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%
1. Based on a ‘point-in-time’ snapshot of employees as at 30 June 2025, including employees on extended absence, which was 1,124 in FY2025. There is no significant seasonal variation in
employment numbers.
2. Contractor data is collected from internal organisation systems. Contractor data is averaged for a 10-month period, July 2024 to April 2025.
3. Figures reported do not include employees and contractors of the operations located in Brazil, that were acquired as part of the OZ Minerals acquisition completed during FY2023.
4. These tables are set out in the format prescribed by the UK Listing Rules. For BHP, the senior Board positions are the CEO, Senior Independent Director (SID) and Chair as the CFO is not
a member of the Board, in line with market practice for Australian listed companies.
5. In accordance with the UK Listing Rules, executive management includes the Executive Leadership Team (the most senior executive body below the Board) and the Group Company
Secretary, excluding administrative and support staff.
217Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
8 Legal proceedings
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.
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 decision that ratified the Settlement Agreement
became final and unappealable.
The Settlement Agreement delivers a full and final settlement of the
Framework Agreement obligations, as well as the R$20 billion Public
Civil claim, the R$155 billion Federal Public Prosecutors’ Office claim and
other claims by the Public Authorities relating to the Samarco dam failure,
described below.
– The public civil action brought by the Federal Government of Brazil,
States of Espírito Santo and Minas Gerais and other public authorities
against the Companies in November 2015, seeking their joint liability
for the full reparation of environmental and socioeconomic damages
arising from the Samarco dam failure, in the amount of R$20 billion
(approximately US$3.7 billion)
1
(the R$20 billion Public Civil claim).
– The public civil action brought by the Brazilian Federal Public
Prosecutors’ Office against the Companies, as well as other
public entities in May 2016, seeking R$155 billion (approximately
US$28.4 billion)
1
for reparation, compensation and social, individual
and collective moral damages in relation to the Samarco dam failure
(the R$155 billion Federal Public Prosecutors’ Office claim).
– The public civil action brought by the State Prosecutors’ Office of
Minas Gerais against the Companies in December 2015 claiming
indemnification for moral and material damages to an unspecified
group of individuals affected by the Samarco dam failure, including the
payment of costs for housing and social, economic assistance (CPA
Mariana I) and related enforcement proceedings, and other public civil
actions against the Companies related to damages that, according to the
State Prosecutors, were not covered by CPA Mariana I.
Over the years, Samarco, Vale, BHP Brasil, and public authorities have
entered into agreements for the remediation of damages resulting from the
Samarco dam failure.
– In March 2016, the Companies entered into a Framework Agreement
with the Federal Government of Brazil, the States of Espírito Santo
and Minas Gerais and certain other public authorities to establish a
foundation (Renova Foundation) maintained by the Companies to
develop and execute environmental and socioeconomic programs
(Programs) to remediate and provide compensation for damages
caused by the Samarco dam failure.
– In June 2018, the Companies, the other parties to the Framework
Agreement, the Public Prosecutors’ Office
2
and the Public Defense
Office
3
entered into a Governance Agreement, which settled the
merits phase of the R$20 billion Public Civil claim and established
a process to renegotiate the Programs to progress settlement
of the R$155 billion Federal Public Prosecutors’ Office claim.
The obligations provided for in the previous agreements in the context
of the Samarco dam failure, including the Framework Agreement and
the Governance Agreement were extinguished and replaced by the
Settlement Agreement.
The financial value of the Settlement Agreement, as at the announcement
date, was R$170 billion (approximately US$31.7 billion)
4
on a 100 per
cent basis, including amounts spent as at the announcement date plus
subsequent payments and obligations as follows:
– R$38 billion (approximately US$7.9 billion)
4
in amounts spent to
30 September 2024 on remediation and compensation since 2016.
– R$100 billion (approximately US$18 billion)
4
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).
– Additional performance obligations for an estimated financial value of
approximately R$32 billion (approximately US$5.8 billion)
4
that will 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 largely
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:
– compensation to programs for the benefit of people, communities
and the environment in the affected regions, including R$11 billion
(approximately US$2 billion)
4
for universal water sanitation, R$12 billion
(approximately US$2.2 billion)
4
for health programs, R$6.5 billion
(approximately US$1.2 billion)
4
for economic recovery programs,
R$4.3 billion (approximately US$770 million)
4
for improvements to road
and infrastructure, R$2 billion (approximately US$360 million)
4
for a flood
response fund, R$2.4 billion (approximately US$432 million)
4
to foster
fishing and biodiversity, R$1 billion (approximately US$180 million)
4
for
a program to support women, R$5.7 billion (approximately US$1 billion)
4
for a social participation fund for investment in education, culture, sports
and food security, and R$3.75 billion (approximately US$674 million)
4
for
an income assistance program to support the most vulnerable people
– provision of R$8 billion (US$1.44 billion
4
) to eligible Indigenous
peoples and Traditional communities with the allocation of funds to
be determined by Indigenous and Traditional communities following a
consultation process to be conducted by the Federal Government
– compensation 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
– establishment of 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
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$155 billion Federal Public Prosecutors’ Office
claim, the 14 enforcement proceedings linked to the referred civil public
actions (CPAs), and the CPA concerning alleged gender discrimination.
The Settlement Agreement provides that the collective socioenvironmental
and socioeconomic damages of any nature (including social, moral and
non-economic damages) arising from the dam failure are compensated and
remediated by the Obligations to Perform and Obligation to Pay and that no
additional obligations will be required for the reparation and compensation
of the collective damages.
1. Based on the exchange rate as at 30 June 2025 BLR/US$ of 5.46.
2. The Public Prosecutors’ Office includes the Federal, State of Minas Gerais and State of Espírito Santo public prosecutors’ offices.
3. The Public Defense Office includes the Federal, State of Minas Gerais and State of Espírito Santo public defense offices.
4. US$ amounts for amounts already spent is calculated based on actual transactional (historical) exchange rates related to funding provided to Renova. Future spends is calculated using
BRL/US$ exchange rate of 5.56. All future financial obligations are presented on a real, undiscounted basis and will accrue inflation at the IPCA inflation rate. Payments will be made in
Brazilian Reais.
218 BHP Annual Report 2025
Pursuant to the Settlement Agreement, the Renova Foundation’s
governance body ceased on signing of the Settlement Agreement and the
Renova Foundation’s Programs will be completed or transferred to Samarco
or to the Federal or State Governments of Brazil within 12 months of signing
of the Settlement Agreement.
The Settlement Agreement did not resolve all claims related to the
Samarco dam failure. For instance, the Settlement Agreement did not
resolve the Australian class action complaint, UK group action complaint,
the group action claim brought against certain Vale and Samarco entities
in the Netherlands, criminal charges against the Companies and certain
individuals, certain CPAs commenced by 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 application thereof has been the subject of
claims that seek to, among other things, 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, 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’
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 due to procedural reasons. The judgement 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 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
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 a number of proceedings related to
claims involving Indigenous communities. In February 2024, the Federal
Prosecutor’s Office filed a collective lawsuit against the Companies,
alleging that the settlement agreements entered into between Renova
Foundation and the Indigenous communities of Tupiniquim Guarani,
Mboapy Pindó and Comboios contain nullities regarding the release of
monthly Emergency Subsistence Aid (ASE), and requested an injunction
ordering the Companies to continue to pay ASE to the Indigenous
peoples of the Tupiniquim, Comboios and Caieiras Velha II, in the
Indigenous Lands of Aracruz, State of Espírito Santo in Brazil, following
certain new rules, including an increase in the monthly payment amount.
On 4 March 2024, the Federal Court granted the Federal Prosecutor’s
request for a preliminary injunction, which was later overturned in April
2024. On 31 October 2024, the Federal Court granted the Federal
Prosecutor’s Office’s request to nullify the clauses in the agreements
with the Tupiniquim Guarani, Comboios and Mboapy Pindó communities
regarding releases of ASE, but suspended the terms of its own rule until
the Companies’ appeal against the injunction relief previously granted was
ruled on, acknowledging that the Settlement Agreement had provisions
concerning the Indigenous communities. On 27 March 2025, the
Companies appealed the decision. A decision on the appeal is pending.
Following the Settlement Agreement, the Companies filed a request for the
suspension of the lawsuit.
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, non-governmental
organisations, corporations and 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.
For more information on the Samarco dam failure refer to OFR 10
As of 30 June 2025, Samarco had been named as a defendant in more
than 88,000 small claims for moral damages in which people argue their
public water service was interrupted for between five and 10 days, of which
approximately 29,000 claims are still active. BHP Brasil is a co-defendant
in more than approximately 25,400 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 2025, Samarco has reached
settlement in more than 1,100 individual cases, including 350 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 judgement 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$336
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. The decision was
challenged before the Superior Court of Justice and a decision on the
matter is pending.
1. Based on the exchange rate as at 30 June 2025.
219Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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, to the extent
that Samarco each year has a positive cash balance after meeting its
various obligations, during this period Samarco’s shareholders are able
to direct 50 per cent of Samarco’s year-end excess cash balance to fund
remediation obligations, including those arising from the Settlement
Agreement. On 11 August, 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.
– BHP Group Limited is named as a defendant in a shareholder class
action in the Federal Court of Australia 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. The amount of damages sought in the class action
is unspecified. A trial is scheduled to commence in September 2025.
– 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 on behalf of certain individuals, municipalities, businesses
and communities in Brazil allegedly impacted by the Samarco dam
failure. The amount of damages sought in these claims is unspecified.
The BHP Defendants subsequently filed a contribution claim against
Vale, which was withdrawn after reaching the agreement in July 2024
described below. A trial in relation to the BHP Defendants’ liability
for the dam failure concluded in March 2025 and a ruling on liability
is pending. In the event that the BHP Defendants are found liable, a
second trial has been listed to commence in October 2026, directed to
generic issues of causation and quantification. Subject to the outcome
of those trials, a further trial may be necessary to determine the amount
of any damages and compensation owed to the claimants. The outcome
of these proceedings, including the extent of any liability or damages,
remains uncertain.
– 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 the outcome
of the liability trial referred to above.
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. BHP is not
a defendant in the Netherlands proceedings.
In July 2024, the BHP Defendants, BHP Brasil and Vale entered into
an 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 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 agreement).
The agreement reinforces the terms of the Framework Agreement
entered into in 2016, which require BHP Brasil and Vale to each contribute
50 per cent to the funding of the Renova Foundation for compensation of
persons impacted by the Samarco dam failure where Samarco is unable
to contribute that funding. While the Settlement Agreement, referred to
above, did not resolve the English and Netherlands proceedings, certain
claimants in those proceedings are eligible to receive payments under the
Settlement Agreement if they choose to do so.
In October 2024, certain Brazilian municipalities, who are claimants in
the UK group action claims referred to in the previous column, 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, allowing the contempt
proceedings to continue. The BHP Defendants have sought permission to
appeal that decision. The contempt proceedings remain ongoing and the
outcome is uncertain at this stage.
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 and a decision by the Federal
Court of Appeals is pending.
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 and Seriti Power (Proprietary) Limited.
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.
8 Legal proceedings continued
220 BHP Annual Report 2025
9 Shareholder information
9.1 History and development
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.
9.2 Markets
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.
9.3 Organisational structure
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.
9.4 Constitution
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:
– the issue does not affect any special rights of shareholders
– if required, the issue is approved by shareholders
– if the issue is of a class other than ordinary shares, the rights attaching
to the class are expressed at the date of issue
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:
– arises because the Director is a shareholder of BHP and is held in
common with the other shareholders of BHP
– arises in relation to the Director’s remuneration as a Director of BHP
– relates to a contract BHP is proposing to enter into that is subject to
approval by the shareholders and will not impose any obligation on
BHP if it is not approved by the shareholders
– arises merely because the Director is a guarantor or has given an
indemnity or security for all or part of a loan, or proposed loan, to BHP
– arises merely because the Director has a right of subrogation in relation
to a guarantee or indemnity referred to above
– relates to a contract that insures or would insure the Director against
liabilities the Director incurs as an officer of BHP, but only if the contract
does not make BHP or a related body corporate the insurer
– relates to any payment by BHP or a related body corporate in respect of
an indemnity permitted by law, or any contract relating to or containing
such an indemnity, or
– is in a contract or proposed contract with or for the benefit of or on behalf
of a related body corporate and arises merely because the Director is a
director of the related body corporate
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:
– a shareholder provides a valid written and signed notice of
the nomination
– the person nominated by the shareholder satisfies candidature for the
office and provides written and signed notice of their willingness to be
elected as a Director
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.
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.
221Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
9 Shareholder information continued
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:
– The holders of any preference shares will be entitled, in priority to any
payment of dividend to the holders of any other class of shares, to a
preferred right to participate as regards dividends up to but not beyond
a specified amount in distribution.
– Any surplus remaining after payment of the distributions above will be
payable to the holders of ordinary shares in equal amounts per share.
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:
– the right (on redemption and on a winding-up) to payment in cash in
priority to any other class of shares of (i) the amount paid or agreed to
be considered as paid on each of the preference shares; and (ii) the
amount, if any, equal to the aggregate of any dividends accrued but
unpaid and of any arrears of dividends
– the right, in priority to any payment of dividend on any other class of
shares, to the preferential dividend
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.
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:
– the company as a special resolution, and
– the holders of the issued shares of the affected class, either by a special
resolution passed at a separate meeting of the holders of the issued
shares of the class affected, or with the written consent of members
with at least 75 per cent of the votes of that class
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.
222
BHP Annual Report 2025
9.5 Share ownership
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 8 July 2025.
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 8 July 2025.
Date of last notice
Title of class
Identity of
person or group Date received Date of change Number owned
% of total
voting rights
1
Ordinary shares State Street Corporation 3 February 2025 30 January 2025 361,526,566 7.13%
Ordinary shares BlackRock Group
2
03 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%
1. The percentages quoted are based on the voting rights provided in the last substantial shareholders’ notice.
2. In addition, on 3 February 2022, BlackRock Group notified that, as of 31 January 2022, it owned 4,152,969 American Depositary Receipts, with a voting power of 0.08 per cent.
Each American Depositary Receipt represents two fully paid ordinary shares in BHP Group Limited.
Twenty largest shareholders as at 8 July 2025 (as named on the Register of Shareholders)
1
BHP Group Limited
Number of fully
paid shares
% of issued
capital
1. HSBC Custody Nominees (Australia) Limited
2
1,505,458,857 29.66
2. J P Morgan Nominees Australia Pty Limited 87 7,830,070 17.29
3. Citicorp Nominees Pty Ltd 426,995,047 8.41
4. Citicorp Nominees Pty Limited <Citibank NY ADR DEP A/C> 247,550,949 4.88
5. Computershare Clearing Pty Ltd <CCNL DI A/C>
3
164,786,389 3.25
6. South Africa Control A/C\C
4
151,225,339 2.98
7. BNP Paribas Nominees Pty Ltd <Agency Lending A/C>
5
89,225,270 1.76
8. BNP Paribas Noms Pty Ltd 72,150,040 1.42
9. National Nominees Limited 53,504,139 1.05
10. HSBC Custody Nominees (Australia) Limited <Nt-Comnwlth Super Corp A/C> 36,568,252 0.72
11. Citicorp Nominees Pty Limited <Colonial First State Inv A/C> 33,182,779 0.65
12. BNP Paribas Nominees Pty Ltd <Clearstream> 25,260,593 0.50
13. BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd> 24,183,029 0.48
14. Computershare Nominees CI Ltd <ASX Shareplus Control A/C> 23,724,947 0.47
15. HSBC Custody Nominees (Australia) Limited 19,088,716 0.38
16. Netwealth Investments Limited <Wrap Services A/C> 18,753,431 0.37
17. Australian Foundation Investment Company Limited 13,413,159 0.26
18. Argo Investments Limited 10,432,564 0.21
19. HSBC Custody Nominees (Australia) Limited – A/C
2
9,504,644 0.19
20. UBS Nominees Pty Ltd 8,615,944 0.17
3,811,454,158 75.09
1. Many of the 20 largest shareholders shown for BHP Group Limited hold shares as a nominee or custodian. In accordance with the reporting requirements, the tables reflect the legal
ownership of shares and not the details of the underlying beneficial holders.
2. HSBC Custody Nominees (Australia) Limited is listed four times in the above table as they are registered separately under the same name on the share register.
3. Computershare Clearing Pty Ltd <CCNL DI A/C> represents the Depositary Interest Register (UK).
4. South Africa Control A/C\C represents the South African branch register.
5. BNP Paribas Nominees Pty Ltd is listed three times in the above table as they are registered separately under the same name on the share register.
US share ownership as at 8 July 2025
Classification of holder
BHP Group Limited
Number of
shareholders %
Number of
shares %
Registered holders of voting securities 1,699 0.27 4,188,116 0.08
ADR holders 1,756 0.28 246,640,678
1
4.86
1. The number of shares corresponds to 123,320,339 ADRs.
223Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
9 Shareholder information continued
Distribution of shareholdings by size as at 8 July 2025
Size of holding
BHP Group Limited
Number of
shareholders %
Number of
shares
1
%
1–500
2
309,397 48.95 58,260,896 1.15
501–1,000 107,5 58 17.02 82,14 4,386 1.62
1,001–5,000 169,323 26.79 381,585,943 7.52
5,001–10,000 27,749 4.39 195,541,010 3.85
10,001–25,000 13,828 2.19 207,604,417 4.09
25,001–50,000 2,879 0.46 98,246,082 1.94
50,001–100,000 891 0.14 61,219,949 1.21
100,001–250,000 319 0.05 45,811,573 0.90
250,001–500,000 68 0.01 22,342,597 0.44
500,001– and over 68 0.01 3,923,235,382 7 7.29
Total 632,080 100 5,075,992,235 100
1. One ordinary share entitles the holder to one vote.
2. The number of BHP Group Limited shareholders holding less than a marketable parcel (A$500) based on the market price of A$38.24 as at 8 July 2025 was 13,871.
9.6 Dividends
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 FY2025 refer to OFR 5.2 and OFR 13
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 3.
In FY2025, 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 must
provide valid direct credit details to receive their dividend payment.
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.
9.7 American Depositary Receipts fees
and charges
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 a BHP net reimbursement of US$5,084,445.29
in FY2025 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 FY2025, amounting to US$14,535.35, 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 8 July 2025, there were 123,320,339 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.
224 BHP Annual Report 2025
9.8 Supplemental cybersecurity disclosures
for US reporting
Our approach to managing material risks from cyber threats is integrated
into our overall risk management framework. Cybersecurity risks are
addressed by BHP’s Risk Framework, a system of control for identifying
and managing risks, implemented by the CEO.
For information on our Risk Framework refer to OFR 7
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 the 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
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. 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 leverage latest 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 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 third-party reviews of our information technology
security program conducted on a periodic basis. We have processes in
place to consider and remediate any findings from these reviews and
assessments as required. We also have processes to oversee and identify
material cybersecurity risks associated with our use of third-party service
providers, including performing diligence on certain third parties that have
access to our systems, data or facilities that store or process sensitive
data and we continually monitor cybersecurity risks identified through such
diligence. We also utilise contractual clauses to manage cybersecurity and
data privacy risks, including by requiring certain agreements to be subject
to periodic cybersecurity audits.
We have experienced targeted and non-targeted cybersecurity threats in
the past; however, no prior cybersecurity incident has materially affected
our business strategy, results of operations or financial condition.
For information on our risk factors refer to OFR 11
Governance
The Board, supported by the Risk and Audit Committee (RAC), is
responsible for oversight of emerging and principal risks facing the Group.
The Board and the RAC receive updates on the Group’s cybersecurity
position, and the Group has policies in place through the Group’s
disclosure process that are designed to escalate material incidents.
For information on other Board Committee activities that support risk
governance at BHP refer to risk governance in 9.1 and the Corporate
Governance Statement 5
The CEO is responsible for the effectiveness of BHP’s Risk Framework
with oversight from the Board. Primary responsibility for Technology and
Innovation risks (which includes cybersecurity risks), rests with the Chief
Technical Officer under authority delegated by the CEO.
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 earlier.
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 25 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.
9.9 Government regulations
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. 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 royalties laws have recently been adopted. 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 to minimise or remediate the environmental impact of our
assets and to ensure the safety and/or wellbeing of our employees,
contractors and the communities where we operate.
In many of the jurisdictions where we or our suppliers or customers
operate, legislation and regulations are increasingly being 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 emissions (GHG).
225Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
Further, the governments in a number of regions where we or our suppliers
or customers operate have advanced targets and goals to reduce GHGs.
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 GHGs 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, 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. Australia is due to submit its next round of
Nationally Determined Contributions for the five years to 2035 during CY2025.
Facilities that exceed their progressively declining legislated baselines may
apply credits to meet the compliance obligations.
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 have a substantial impact, both directly and indirectly, on
the markets for these products, with flow-on impacts on our costs.
A number of governments and regulators in relevant jurisdictions for BHP
have implemented or otherwise proposed disclosure rules that would require
enhanced climate-related and broader sustainability-related disclosures.
For example, in Australia, the Federal Government legislation implementing
a new mandatory annual climate-related financial disclosure regime and
associated auditing and assurance requirements was passed into law in
September 2024 and is being phased in from 1 January 2025, with BHP’s
first reporting period under this regime commencing 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 which is anticipated to be
phased in from 1 July 2028, 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’ chain of activities (noting
that these requirements are subject to potential simplification amendments
currently being considered by the EU Commission).
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 9.5
and 9.6.
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, that may restrict
our ability to sell or the market for extracted minerals or other products
to and/or our ability to purchase goods or services from, these countries,
entities or individuals.
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:
– BHP Group Limited remains an Australian resident company,
incorporated under the Corporations Act, that is listed on the ASX
under the name ‘BHP Group Limited’ and trades under that name.
– BHP Group Limited remains the ultimate holding company of and
continues to ultimately manage and control the companies conducting
the businesses that are presently conducted by the subsidiaries of BHP
Group Limited, including the Minerals and Services businesses, for so
long as those businesses form part of the BHP Group.
– The headquarters of BHP Group Limited (including the BHP Group’s
corporate head offices) are in Australia.
– The Chief Executive Officer of BHP Group Limited has their principal
office in Australia.
– The centre of administrative and practical management of BHP Group
Limited is in Australia and BHP Group Limited’s corporate head office
activities, of the kind presently carried on in Australia, continue to be
managed in Australia.
– The headquarters of BHP Group Limited is publicly acknowledged
as being in Australia in significant public announcements and in all
public documents.
– The Chief Executive Officer of BHP Group Limited has their principal
place of residence in Australia .
– The majority of all regularly scheduled Board meetings of BHP Group
Limited in any calendar year occurs in Australia.
9 Shareholder information continued
226 BHP Annual Report 2025
10 Glossary
10.1 Mining-related terms
3D Three dimensional.
AIG The Australian Institute of Geoscientists.
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 Ore Reserves,
but specifically concerning coal.
Coal Resources Equivalent to Mineral
Resources, but specifically concerning coal.
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.
Competent Person A minerals industry
professional who is a Member or Fellow of The
Australasian Institute of Mining and Metallurgy,
or of the Australian Institute of Geoscientists,
or of a ‘Recognised Professional Organisation’
(RPO), as included in a list available on the
JORC and ASX websites. These organisations
have enforceable disciplinary processes,
including the powers to suspend or expel a
member. A Competent Person must have a
minimum of five years’ relevant experience in the
style of mineralisation or type of deposit under
consideration and in the activity that the person
is undertaking (JORC Code, 2012 Edition).
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 A nominated grade above which
an Ore Reserve or Mineral Resource is defined.
For example, the lowest grade of mineralised
material that qualifies as economic for estimating
an Ore Reserve.
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.
FAusIMM Fellow of the Australasian Institute of
Mining and Metallurgy.
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.
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 provident from the copper bearing
mineral chalcopyrite and higher metal
recoveries are achieved via grinding/flotation
concentration processes.
Indicated (Mineral) Resources That part of
a Mineral Resource for which quantity, grade
(or quality), densities, shape and physical
characteristics are estimated with sufficient
confidence to allow the application of Modifying
Factors in sufficient detail to support mine
planning and evaluation of the economic viability
of the deposit (JORC Code, 2012 Edition).
Inferred (Mineral) Resources That part of
a Mineral Resource for which quantity and
grade (or quality) are estimated on the basis
of limited geological evidence and sampling.
Geological evidence is sufficient to imply but not
verify geological and grade (or quality) continuity
(JORC Code, 2012 Edition).
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.
MAIG Member of the Australian Institute
of Geoscientists.
Marketable (Coal) Reserves Represents
beneficiated or otherwise enhanced coal product
where modifications due to mining, dilution and
processing have been considered, must be
publicly reported in conjunction with, but not
instead of, reports of Coal Reserves. The basis
of the predicted yield to achieve Marketable Coal
Reserves must be stated (JORC Code, 2012).
MAusIMM Member of the Australasian Institute
of Mining and Metallurgy.
MAusIMM-CP Member of the Australasian
Institute of Mining and Metallurgy –
Chartered Professional.
Measured (Mineral) Resources That part of
a Mineral Resource for which quantity, grade
(or quality), densities, shape and physical
characteristics are estimated with confidence
sufficient to allow the application of Modifying
Factors to support detailed mine planning and
final evaluation of the economic viability of the
deposit (JORC Code, 2012 Edition).
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 concentration or
occurrence of solid 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 eventual economic extraction.
The location, quantity, grade (or quality),
continuity and other geological characteristics
of a Mineral Resource are known, estimated or
interpreted from specific geological evidence
and knowledge, including sampling (JORC
Code, 2012 Edition).
Mineralisation Any single mineral or
combination of minerals occurring in a mass,
or deposit, of economic interest.
Mixed (material type) Refer to
Transitional Sulphide.
Modifying Factors Considerations used to
convert Mineral Resources to Ore Reserves.
These include, but are not restricted to, mining,
processing, metallurgical, infrastructure,
economic, marketing, legal, environmental,
social and governmental factors.
Open-cut (OC) Surface working in which the
working area is kept open to the sky.
Ore Reserves The economically mineable
part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and
allowances for losses, which may occur when
the material is mined or extracted and is defined
by studies at Pre-Feasibility or Feasibility
level as appropriate that include application of
Modifying Factors. Such studies demonstrate
that, at the time of reporting, extraction
could reasonably be justified (JORC Code,
2012 Edition).
PEGBC Association of Professional
Engineers and Geoscientists of the Province
of British Columbia.
P.Eng. Professional Engineer.
PEO Professional Engineers Ontario.
P.Geo. Professional Geoscientist.
PGO Professional Geoscientists of Ontario.
Probable (Ore) Reserves The economically
mineable part of an Indicated and, in some
circumstances, a Measured Mineral Resource.
The confidence in the Modifying Factors
applying to a Probable Ore Reserve is lower
than that applying to a Proved Ore Reserve.
Consideration of the confidence level of the
Modifying Factors is important in conversion of
Mineral Resources to Ore Reserves. A Probable
Ore Reserve has a lower level of confidence
than a Proved Ore Reserve but is of sufficient
quality to serve as the basis for a decision on
the development of the deposit (JORC Code,
2012 Edition).
Proved (Ore) Reserves The economically
mineable part of a Measured Mineral Resource.
A Proved Ore Reserve implies a high degree of
confidence in the Modifying Factors. A Proved
Ore Reserve represents the highest confidence
category of reserve estimate and implies a
high degree of confidence in geological and
grade continuity, and the consideration of the
Modifying Factors. The style of mineralisation
or other factors could mean that Proved Ore
Reserves are not achievable in some deposits
(JORC Code, 2012 Edition).
227Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
10 Glossary continued
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.
Slag A by-product of smelting after the desired
metal has been extracted from its ore.
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.
SP (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
provident 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.
Total (Mineral) Resources The sum of Inferred,
Indicated and Measured Mineral Resources.
Total (Ore) Reserves The sum of Proved and
Probable Ore Reserves.
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
AI
2
O
3
alumina
Ash inorganic material remaining
after combustion
Au gold
Cu copper
CV calorific value
Fe iron
Insol. insolubles
K
2
O potassium oxide
KCl potassium chloride
LOI loss on ignition
LPL Lower Patience Lake
(stratigraphic unit)
Met metallurgical coal
MgO magnesium oxide
Mo molybdenum
Ni nickel
NSR Net smelter return
P phosphorous
Pc phosphorous in concentrate
S sulphur
SCu soluble copper
SiO
2
silica
Th thermal coal
U
3
O
8
uranium oxide
VM volatile matter
Zn zinc
10.3 Units of measure
% percentage or per cent
CO
2
-e carbon dioxide equivalent
dmt dry metric tonne
GJ gigajoule
g/t grams per tonne
kcal/kg kilocalories per kilogram
kg/t kilograms per tonne
km kilometre
ktoz thousand troy ounces
kt kilotonnes
ktpa kilotonnes per annum
ktpd kilotonnes per day
kV kilovolt
kWh kilowatt hour
lb pound
m metre
m
3
cubic metre
ML megalitre
Mt million tonnes
MtCO
2
-e million tonnes of carbon
dioxide equivalent
Mtpa million tonnes per annum
MW megawatt
oz ounce
PJ petajoule
ppm parts per million
t tonne
tCO
2
-e tonnes of carbon dioxide equivalent
t/h tonnes per hour
toz troy ounce
tpa tonnes per annum
tpd tonnes per day
wmt wet metric tonnes
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.
AASB (Australian Accounting Standards Board)
Accounting standards as 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 FY2025 performance data against it:
– the FY2020 data is presented with Scopes
1 and 2 emissions for operated assets that
have been acquired or divested by BHP
added or removed (respectively), and applying
methodology changes that took effect,
between 1 July 2019 and 30 June 2025; and
– the FY2025 data is presented as though any
acquisitions, divestments and/or methodology
changes that occurred during the year took
effect from the start of the year
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.
228 BHP Annual Report 2025
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). 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.
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.
BHP Healthy environment goal roadmap Our
Group-level framework for our plans to achieve
the 2030 Healthy environment goal under our
social value scorecard, which applies to our
operated assets in Australia, Chile and Canada.
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,
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 (threat and opportunities).
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 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.
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.
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.
Convention of Biological Diversity The
Convention on Biological Diversity (CBD)
is the international legal instrument for ‘the
conservation of biological diversity, the
sustainable use of its components and the fair
and equitable sharing of the benefits arising out
of the utilisation of genetic resources’ that has
been ratified by 196 nations.
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).
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 CO
2
-e
emitted per GJ of fuel consumed, kg CO
2
-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.
229Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
10 Glossary continued
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, President Australia, President
Americas, and the Chief Operating Officer.
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 megatrends
like electrification and decarbonisation.
Currently, the major commodities in the BHP
portfolio that fall within this criterion include
copper, nickel and potash.
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 (CO
2
), methane
(CH
4
), nitrous oxide (N
2
O), hydrofluorocarbons
(HFCs), perfluorocarbons (PFCs) and sulphur
hexafluoride (SF
6
). Nitrogen trifluoride (NF
3
)
GHG emissions are currently not relevant for
BHP reporting purposes. GHG emissions in
this report are presented in tonnes CO
2
-e or
its multiples, unless otherwise stated.
GISTM Global Industry Standards 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) 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 CO
2
. 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.
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.
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.
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 (gCO
2
-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 shipping)
Capable of between 81 per cent to 100 per cent
lower GHG emissions intensity (gCO
2
-e/joule)
on a well-to-wake basis compared to conventional
fossil fuels used in shipping.
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.
Market-based method (in relation to reporting
GHG emissions data) Scope 2 emissions based
on the generators (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. (Adapted from
Díaz, S et al. (2015) The IPBES Conceptual
Framework – Connecting Nature and People).
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.
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.
230 BHP Annual Report 2025
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 2025.
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.
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.
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.
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.
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.
PPA (power purchasing 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.
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.
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.
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 unless otherwise specified.
Scope 3 emissions (GHG emissions) Scope 3
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.
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.
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 Report,
including OFR 8 and OFR 9. Our references
to sustainability (including sustainable and
sustainably) in this 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).
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.
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.
231Operating and Financial ReviewOverview Financial StatementsGovernanceContents Additional Information
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.
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.
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 13.
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 13.
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 13.
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 13.1.
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.
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).
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 holistic assessment of the water
situation where an operated asset operates.
The process is designed to describe the water
challenges that partners and stakeholders share
and the opportunities for collective action to
address those challenges. The WRSA is funded
by BHP and prepared by a credible third party.
It draws on publicly available information and
direct partner and stakeholder input. Within a
defined area that includes the water resources
that BHP interacts with, each WRSA includes
assessment of:
– the ongoing stability of the volume and quality
of the water resources, taking into account
interactions of all other parties and any related
environmental, social or cultural values and
climate change forecasts
– the state of water infrastructure, water access,
sanitation and hygiene of local communities
– the environmental health of the water
catchments that feed the water resources
taking into account the extent of vegetation,
runoff and any conservation of the area
– external water governance arrangements
and their effectiveness
10 Glossary continued
232 BHP Annual Report 2025
BHP Registered Office
BHP Group Limited
Australia
Telephone Australia: 1300 55 47 57
Telephone International: +61 3 9609 3333
Facsimile: +61 3 9609 3015
Group Company Secretary
Stefanie Wilkinson
BHP Corporate Centres
United Kingdom
Nova South, 160 Victoria Street
London, SW1E 5LB, UK
Telephone: +44 20 7802 4000
Facsimile: +44 20 7802 4111
Chile
Cerro El Plomo 6000
Piso 15
Las Condes 7560623
Santiago
Telephone: +56 2 2579 5000
Facsimile: +56 2 2202 6328
Commercial Office
Singapore
10 Marina Boulevard, #18-01
Marina Bay Financial Centre, Tower 2
Singapore 018983
Telephone: +65 6421 6000
Facsimile: +65 6809 4000
Share Registrars and
Transfer Offices
Australia
BHP Group Limited Registrar
Computershare Investor Services Pty Limited
Yarra Falls, 452 Johnston Street
Abbotsford VIC 3067
Postal address – GPO Box 2975
Melbourne VIC 3001
Telephone: 1300 656 780 (within Australia)
+61 3 9415 4020 (outside Australia)
Facsimile: +61 3 9473 2460
Email enquiries: investorcentre.com/bhp
United Kingdom
BHP Group Limited Depositary
Computershare Investor Services PLC
The Pavilions, Bridgwater Road
Bristol BS13 8AE
Postal address (for general enquiries)
The Pavilions, Bridgwater Road
Bristol BS99 6ZZ
Telephone: +44 344 472 7001
Facsimile: +44 370 703 6101
Email enquiries:
webcorres@computershare.co.uk
South Africa
BHP Group Limited Branch Register and
Transfer Secretary
Computershare Investor Services (Pty) Limited
Rosebank Towers
15 Biermann Avenue
Rosebank 2196
South Africa
Postal address – Private Bag X9000
Saxonwold
2132 South Africa
Telephone: +27 11 373 0033
Facsimile: +27 11 688 5217
Email enquiries:
web.queries@computershare.co.za
Holders of shares dematerialised into Strate
should contact their CSDP or stockbroker.
New Zealand
Computershare Investor Services Limited
Level 2/159 Hurstmere Road
Takapuna Auckland 0622
Postal address – Private Bag 92119
Auckland 1142
Telephone: +64 9 488 8777
United States
Computershare Trust Company, N.A.
150 Royall Street
Canton MA 02021
Postal address – PO Box 43006
Providence RI 02940-3006
Telephone: +1 877 373 6374
(toll free within US)
Facsimile: +1 312 601 4331
ADR Depositary, Transfer Agent
and Registrar
Citibank Shareholder Services
PO Box 43077
Providence RI 02940-3077
Telephone +1 781 575 4555 (outside of US)
+1 877 248 4237 (+1-877-CITIADR)
(toll free within US)
Email enquiries:
citibank@shareholders-online.com
Website: citi.com/dr
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