Leases (Tables)
 12 Months Ended
Jun. 30, 2021
Text block [abstract]  
Summary of Movements in Lease Liabilities
Movements in the Group’s lease liabilities during the year are as follows:
 
                                 
    
2021
     2020  
    
US$M
     US$M  
At the beginning of the financial year
(1)
   
 
3,443
 
     715  
IFRS 16 transition
      –       2,301  
Additions
   
 
1,223
 
     436  
Remeasurements of index-linked freight contracts
   
 
(59
) 
     733  
Lease payments
   
 
(879
) 
     (761 ) 
Foreign exchange movement
   
 
115
 
     (43 ) 
Amortisation of discounting
   
 
109
 
     90  
Transfers and other movements
   
 
(56
) 
     (28 ) 
    
 
 
    
 
 
  
At the end of the financial year
   
 
3,896
 
     3,443  
    
 
 
    
 
 
  
Comprising:
                 
Current liabilities
   
 
889
 
     853  
Non-current
liabilities
   
 
3,007
 
     2,590  
    
 
 
    
 
 
  
 
(1)
 
Lease liability at the beginning of FY2020 relates to existing finance leases under IAS 17/AASB 117 ‘Leases’ (IAS 17) at 1 July 2019.
Summary of Maturity Profile of Lease Liabilities
The maturity profile of lease liabilities based on the undiscounted contractual amounts is as follows:
 
                                 
Lease liability
   
2021
     
2020
  
    
US$M
     
US$M
  
Due for payment:
                  
In one year or less or on demand
   
 
980
 
   
 
927
 
In more than one year but not more than two years
   
 
680
 
   
 
630
 
In more than two years but not more than five years
   
 
1,397
 
   
 
1,335
 
In more than five years
(1)
   
 
1,842
 
   
 
1,043
 
    
 
 
     
 
 
  
Total
   
 
4,899
 
   
 
3,935
 
    
 
 
     
 
 
  
Carrying amount
   
 
3,896
 
   
 
3,443
 
    
 
 
     
 
 
  
 
(1)
 
Include US$878 million (2020: US$302 million) due for payment in more than ten years.
Summary of Movements in Right of Use Assets
Movements in the Group’s
right-of-use
assets during the year are as follows:
 
    
2021
     2020  
    
Land and

buildings
    
Plant and

equipment
    
Total
     Land and
buildings		     Plant and
equipment		     Total  
    
US$M
    
US$M
    
US$M
     US$M     US$M     US$M  
Net book value
                                                 
At the beginning of the financial year
(1)
   
 
689
 
  
 
2,358
 
  
 
3,047
 
     –       492       492  
Assets recognised on adoption of IFRS 16
      –    
 
–
 
  
 
–
 
     754       1,400       2,154  
Additions
   
 
25
 
  
 
1,227
 
  
 
1,252
 
     104       332       436  
Remeasurements of index-linked freight contract
s
   
 
–
 
  
 
(59
) 
  
 
(59
) 
     –       733       733  
Depreciation expensed during the period
   
 
(111
) 
  
 
(670
) 
  
 
(781
) 
     (113 )      (543 )      (656 ) 
Depreciation classified as exploration
   
 
–
 
  
 
(19
) 
  
 
(19
) 
     –       (34 )      (34 ) 
Impairments
   
 
(30
) 
  
 
(2
) 
  
 
(32
) 
     (2 )      (22 )      (24 ) 
Transfers and other movements
   
 
65
 
  
 
(123
) 
  
 
(58
) 
     (54 )      –       (54 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
At the end of the financial year
   
 
638
 
  
 
2,712
 
  
 
3,350
 
     689       2,358       3,047  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
– Cost
   
 
897
 
  
 
4,393
 
  
 
5,290
 
     804       3,349       4,153  
– Accumulated depreciation and impairments
   
 
(259
) 
  
 
(1,681
) 
  
 
(1,940
) 
     (115 )      (991 )      (1,106 ) 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Right-of-use assets at the beginning of FY2020 relates to assets previously held under finance leases under IAS 17 at 1 July 2019.
Summary of Amounts Recorded in Income Statement and Cash Flow Statements
Amounts recorded in the income statement and the cash flow statement for the year were:
 
    
2021
      2020       
    
US$M
      US$M     
Included within
Income statement
                       
Depreciation of
right-of-use
assets
   
 
781
 
      656      Profit from operations
Short-term,
low-value
and variable lease costs
(1)
   
 
895
 
      675      Profit from operations
Interest on lease liabilities
   
 
109
 
      90      Financial expenses
Cash flow statement
                       
Principal lease payments
   
 
770
 
      671      Cash flows from financing activities
Lease interest payments
   
 
109
 
      90      Cash flows from operating activities
 
(1)
Relates to US$546 million of variable lease costs (2020: US$438 million), US$316 million of short-term lease costs (2020: US$211 million) and US$33 million of
low-value
lease costs (2020: US$26 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.