Bringing people and

resources together to

build a better world

Annual Report 2026

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 Annual Report covers functions and assets (including those under

exploration, projects in development or execution phases, sites and

operations that are closed or in the closure phase) that have been wholly

owned and operated by BHP or that have been owned as a BHP‑operated

joint venture

(referred to in this Report as ‘operated assets’ or ‘operations’)

from 1 July 2025 to 30 June 2026 unless otherwise stated. Certain sections

of this Report present data for comparative periods, which in relation to

the Daunia and Blackwater mines (divested during FY2024) is shown up to

completion on 2 April 2024, unless stated otherwise.

BHP also holds interests in assets that are owned as a joint venture but not

operated by BHP (referred to in this Report as ‘non‑operated joint ventures’

or ‘non‑operated assets’). Notwithstanding that this Report may include

production, financial and other information from non‑operated assets,

non‑operated assets are not included in the BHP Group and, as a result,

statements regarding our operations, assets and values apply only to our

operated assets unless stated otherwise.

BHP Group Limited has a primary listing on the Australian Securities

Exchange. BHP holds an international secondary listing on the London

Stock Exchange, a secondary listing on the Johannesburg Stock

Exchange and an ADR program listed on the New York Stock Exchange.

Forward‑looking statements

This Annual Report contains forward‑looking statements, which involve

risks and uncertainties. Forward‑looking statements include all statements,

other than statements of historical or present facts, including: statements

regarding trends in commodity prices and currency exchange rates;

demand for commodities; global market conditions; reserves and resources

estimates; recoveries, mine plans, processing performance and other

technical assumptions; development and production forecasts; guidance;

expectations, plans, strategies and objectives of management; climate

scenarios; sustainability, decarbonisation, social value and other targets,

goals, pathways and related assumptions; approval of projects and

consummation of transactions; closure, divestment, acquisition or integration

of certain assets, ventures, operations or facilities (including associated costs

or benefits); commodity streaming, offtake, funding or similar arrangements

(including associated costs or benefits); anticipated production or construction

commencement dates; capital costs and scheduling, ramp‑up and project

execution; operating costs and availability of materials and skilled employees;

anticipated productive lives of projects, mines and facilities; the availability,

implementation and adoption of new technologies, including artificial

intelligence; provisions and contingent liabilities; and tax, legal and other

regulatory developments.

Forward‑looking statements may be identified by the use of terminology,

including, but not limited to, ‘aim’, ‘ambition’, ‘anticipate’, ‘aspiration’, ‘believe’,

‘commit’, ‘continue’, ‘could’, ‘desire’, ‘ensure’, ‘estimate’, ‘expect’, ‘forecast’,

‘goal’, ‘guidance’, ‘intend’, ‘likely’, ‘may’, ‘milestone’, ‘must’, ‘need’, ‘objective’,

‘outlook’, ‘pathways’, ‘plan’, ‘project’, ‘schedule’, ‘seek’, ‘should’, ‘strategy’,

‘target’, ‘trend’, ‘will’, ‘would’, or similar words. These statements discuss future

expectations or performance, or provide other forward‑looking information.

Examples of forward‑looking statements contained in this Report include,

without limitation, statements describing (i) our strategy, Our Values and

how we define our success; (ii) our expectations regarding future demand

for certain commodities, in particular copper, iron ore, steelmaking coal,

potash and nickel and our intentions, commitments or expectations

with respect to our supply of certain commodities, including copper, iron

ore, steelmaking coal, potash, nickel, uranium, silver and gold; (iii) our

future exploration and partnership plans and perceived benefits and

opportunities, including our focus to grow our copper and potash assets;

(iv) our business outlook, including our outlook for long‑term economic

growth and other macroeconomic and industry trends; (v) our projected

and expected production and performance levels and development projects;

(vi) our expectations regarding our investments and strategic transactions,

including in potential growth options and technology and innovation, and

perceived benefits and opportunities; (vii) our reserves and resources

estimates; (viii) our plans for our major projects and related budget and capital

allocations; (ix) our expectations, commitments and objectives with respect

to sustainability, decarbonisation, natural resource management, climate

change and portfolio resilience and timelines and plans to seek to achieve or

implement such objectives, including our approach to equitable change and

transitions, our Climate Transition Action Plan, climate change adaptation

strategy and goals, targets, pathways and strategies to seek to reduce or

support the reduction of greenhouse gas emissions (GHG), and related

perceived costs, benefits and opportunities for BHP; (x) the assumptions,

beliefs and conclusions in our climate change‑related statements

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.

and strategies, for example, in respect of future temperatures, energy

consumption and greenhouse gas emissions, and climate‑related impacts;

(xi) our commitment to social value and our 2030 goals; (xii) our commitments

to improve or maintain safe tailings storage management; and (xiii) our social

value, sustainability reporting, inclusion and diversity, Indigenous peoples

and communities, water, health and safety commitments, goals, targets,

aspirations and outcomes.

Forward‑looking statements are based on management’s expectations

and reflect judgements, assumptions, estimates and other information

available, as at the date of this Report. These statements do not represent

guarantees or predictions of future financial or operational performance

and involve known and unknown risks, uncertainties and other factors,

many of which are beyond our control and which may cause actual results

to differ materially from those expressed in the statements contained in this

Report. Investors are strongly cautioned that forward‑looking statements

are subject to significant uncertainties and may not prove to be correct.

For example, our future revenues from our assets, projects or mines

described in this Report will be based, in part, on the market price of the

commodities produced, which may vary significantly from current levels

or those reflected in our reserves and resources estimates. These variations,

if materially adverse, may affect the timing or the feasibility of the development

of a particular project, the expansion of certain facilities or mines, or the

continuation of existing assets.

Other factors that may affect our future operations and performance,

including the actual construction or production commencement dates,

revenues, costs or production output and anticipated lives of assets, mines

or facilities include: (i) our ability to profitably produce and deliver the products

extracted to applicable markets; (ii) the development and use of new

technologies and related risks; (iii) the impact of economic and geopolitical

factors, including foreign currency exchange rates on the market prices of the

commodities we produce and competition in the markets in which we operate;

(iv) activities of government authorities in or impacting the countries where we

sell our products and in the countries where we are exploring or developing

projects, facilities or mines, including increases in taxes and royalties or

implementation or expansion of trade or export restrictions, sanctions,

tariffs or export controls; (v) changes in environmental and other regulations;

(vi) political or geopolitical uncertainty and conflicts; (vii) labour unrest;

(viii) weather, climate variability or other manifestations of climate change;

(ix) logistics, transport and supply chain constraints or disruptions; (x) legal

and regulatory proceedings and stakeholder engagement; and (xi) other

factors identified in the risk factors set out in OFR 6.

This Report also discusses scenario analysis. There are limitations with

respect to scenario analysis, including any climate‑related scenario analysis,

and it is difficult to predict which, if any, of the scenarios might eventuate.

Scenario analysis is not an indication of probable outcomes and relies on

assumptions that may or may not prove to be correct or eventuate, and

may not reflect BHP’s own expectations. Scenarios may be impacted by

additional factors to the assumptions disclosed.

Except as required by applicable regulations or by law, BHP does not

undertake to publicly update or review any forward‑looking statements,

whether as a result of new information or future events.

Past performance cannot be relied on as a guide to future performance.

Emissions and energy consumption data

Due to the inherent uncertainty and limitations in measuring GHG emissions

and operational energy consumption under the calculation methodologies

used in the preparation of such data, all GHG emissions and operational

energy consumption data or references to GHG emissions and operational

energy consumption volumes (including ratios or percentages) in this Report

are estimates. There may also be differences in the manner that third parties

calculate or report GHG emissions or operational energy consumption data

compared to BHP, which means third‑party data may not be comparable to

our data. Our methodologies for measuring or quantifying GHG emissions

and operational energy consumption may also evolve as market practices

continue to develop and data quality and quantity continue to improve.

For information on how we calculate our GHG emissions refer to

Sustainability Report 7.6 Methodology for calculating Scopes 1, 2

and 3 GHG emissions

Information prepared by third parties

This Report contains market, industry and statistical information and

estimates that are based on reports and other publications from industry

analysts, market research firms and other independent sources, as well

as management’s own good faith estimates and analyses. We believe

the sources of this information to be reputable, but have not independently

verified the data sources, methodologies or assumptions. Information that

is based on estimates, forecasts, projections, market research or similar

methodologies is inherently subject to uncertainties, and actual events

or circumstances may differ materially from events and circumstances

reflected in this information.

BHP Annual Report 2026

Contents

BHP Group Limited

ABN 49 004 028 077

Chair’s review 2

Chief Executive Officer’s review 3

Our performance summary 4

Operating and

Financial Review (OFR)

1 Safety 5

2 Why BHP 6

3 Strong growth outlook 9

4 Our assets 10

4.1 Copper 10

4.2 Iron ore 12

4.3 Coal 13

4.4 Nickel 14

4.5 Potash 14

5 Financial review 15

Chief Financial Officer’s review 15

5.1 Group overview 16

5.2 Key performance indicators 16

5.3 Financial results 17

5.4 Debt and sources of liquidity 19

6 Risk 21

7 Performance by commodity 28

7.1 Copper 28

7.2 Iron Ore 29

7.3 Coal 29

7.4 Other assets 30

7.5 Impact of changes

to commodity prices 30

8 Non-IFRS financial

information 31

8.1 Definition and

calculation of non‑IFRS

financial information 40

8.2 Definition and calculation

of principal factors 41

9 Sustainability 42

9.1 Our sustainability approach 42

9.2 Material sustainability topics 43

9.3 2030 goals and social

value scorecard 43

9.4 People 46

9.5 Health 47

9.6 Ethics and business conduct 48

9.7 Community 49

9.8 Indigenous peoples 49

9.9 Nature and environmental

performance 50

9.10 Climate change 52

Sustainability Report 55

Independent auditor’s

report to the members

of BHP Group Limited 93

Governance

Corporate Governance

Statement 96

Directors’ Report 109

Remuneration Report 112

Financial Statements 127

Additional Information 197

To view our 2026 Annual Reporting

Suite visit bhp.com

Annual Report 2026

Economic Contribution Report 2026

Modern Slavery Statement 2026

ESG Standards and Databook 2026

Operating and Financial Review Additional InformationFinancial StatementsGovernanceSustainability Report

Dear Shareholders,

I am pleased to provide the BHP Annual

Report 2026. We delivered strong operational

and financial results in FY2026 and continued

to position your business to create value for

you into the future.

Our achievements were overshadowed by the recent loss of our contractor

colleague at BHP Mitsubishi Alliance’s (BMA’s) Peak Downs mine in

Queensland on 24 July 2026. Our thoughts remain with their family and loved

ones. We are determined to eliminate fatalities and serious injuries at BHP.

A Tier 1 portfolio for today and the future

BHP has large, long‑life and low‑cost world‑class assets in attractive

commodities. As our performance in FY2026 has shown, we operate

them exceptionally well. This is a great position to be in – and a great

position to grow from.

We know you have made an active choice to invest in our company.

We steward that investment carefully. Just as you rightly consider what

the best use of your money is, and where it will generate the most value

for you, so does your Board.

BHP has a compelling pipeline of growth options ahead of us in potash,

copper and iron ore and a rigorous Capital Allocation Framework (CAF) to

guide our investment decisions. Under that Framework, each growth option

competes with every dollar we invest. That drives disciplined investment

decisions and ensures every project is focused on generating returns.

The CAF also helps manage our balance sheet and provides for a

minimum dividend payout ratio of 50 per cent of underlying attributable

profit at every reporting period. Your Board determined dividends totalling

172 US cents a share for FY2026, an increase of 62 US cents on FY2025.

This represents a total distribution to shareholders of US$8.7 billion, or

66 per cent of underlying attributable profit.

CEO transition

The year saw the retirement of CEO Mike Henry and the appointment

of Brandon Craig as your new CEO, from 1 July 2026.

Mike’s six‑and‑a‑half‑year tenure leading BHP will be remembered

as among our brightest. Thanks to his leadership, our operational

performance has been second to none among our peers. Mike led with

discipline, dedication and integrity, repositioning our portfolio towards

future‑facing commodities and embedding operational excellence and the

BHP Operating System (BOS) into the way we work. We wish Mike every

success in the future and thank him for making BHP a better company.

Brandon was appointed CEO by your Board after a thorough selection

process. He brings deep experience to the role having worked across

different countries and all our commodities during his 27 years at BHP,

including as President Americas and Asset President of Western Australia

Iron Ore (WAIO). Brandon has a clear vision on how we can accelerate

performance and drive programmatic growth and I am excited for the next

era under his leadership.

Board renewal

Our structured approach to Board renewal continues. On 1 June 2026, we

welcomed Mark Vassella as a Non‑executive Director. Mark has extensive

experience in the global steel industry and brings a strong focus on global

resource development, values‑based leadership and relationships with

people and community.

Our economic contribution

We are proud to make a substantial contribution to the economies in

the countries, regions and communities where we operate. This direct

economic contribution totalled US$50.8 billion globally in FY2026 – an

increase of around US$4 billion from the prior financial year.

BHP remains one of the largest corporate taxpayers in Australia and Chile.

In Australia, taxes, royalties and other payments to governments totalled

US$6.6 billion (approximately A$9.7 billion). This is roughly equivalent to the

Australian Government’s 2026‑27 transport infrastructure package, which will

help fund major road, rail and freight infrastructure projects across Australia.

In Chile, our increased copper output and higher global prices lifted our

tax, royalty and other payments to US$5.5 billion – an increase of around

71 per cent from the prior financial year. This equates to about one dollar

in every 17 in Chile’s most recent national budget.

Social value and sustainability

A key part of our competitive advantage is our focus on working with

others to create a lasting contribution to society.

We increased our spend with Indigenous suppliers, reaching US$1 billion

for the year, a three‑fold increase in three years. Our approach is to develop

multi‑year partnerships that help these businesses build capability and grow.

Your Board and management are determined to continue the pursuit of

our climate ambitions, and we are on track to meet our FY2030 operational

greenhouse gas emissions reduction target. Renewable sources provided

80 per cent of electricity at our operated assets globally in FY2026,³ with

more to come in the years ahead.

Beyond renewables, we are working to establish a credible pathway to safely

and productively displace diesel at scale at the sites where we operate.

We are running proof‑of‑concept trials for battery‑electric haul trucks in the

Pilbara right now, with a battery‑electric locomotives trial also commenced.

This is important work that will not only support technology development, but

also build the knowledge and capability required to operate battery‑electric

equipment in the future.

We expect our electricity demand to increase significantly as diesel‑fuelled

mining and rail equipment is electrified. In support of this, we have begun

the critical work to develop the future power solutions we will need when

the equipment is ready to roll out.

Importantly, we continue to work closely with steelmaking customers

on initiatives to support greenhouse gas emissions reductions in their

operations as well.

Entering FY2027 with confidence

As we enter FY2027, the broader economic picture remains resilient despite

recent commodity market volatility. We continue to see strength in the US

and China, even as the global economy adjusts to evolving trade dynamics.

We remain confident in the demand for our core commodities and the

strength of our growth program, supported by the long‑term trends shaping

the world, including industrialisation, urbanisation, digitalisation, the energy

transition, population growth and food security.

BHP is in great shape and well placed to seize the opportunities ahead. I am

confident we can continue to create value for you for many years to come.

Thank you for your continued support.

Chair’s review

1. 2026–27 Federal Budget released | Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts

2. Based on the 2026 Budget Bill (US$92.5 billion) approved by the National Congress in November 2025. Source: Congress Approves

the 2026 Budget Bill With a Strong Focus on Social Commitment and Fiscal Discipline, the Last of President Gabriel Boric’s Term

3. As evidenced by the surrender of renewable energy certificates. For more information on this calculation refer to the Sustainability Report.

BHP is in great shape and well placed to

seize the opportunities ahead. I am confident

we can continue to create value for you for

many years to come.”

Ross McEwan

Chair

2 BHP Annual Report 2026

Dear Shareholders,

I am pleased to write to you for the first time

as your Chief Executive Officer. I take on

this role with deep respect for BHP’s history,

confidence in our people and portfolio, and

a clear ambition to make our company safer,

simpler, and higher performing, while growing

value with discipline.

Safety is my first priority. The recent loss of one of our colleagues is deeply

felt across BHP and the broader industry. We will act with urgency, learn

from what happened and apply the lessons across the company. No result

is more important than everyone going home safely at the end of each day.

FY2026 demonstrated the strength of our assets and our operating

momentum. My focus is to build on that foundation by accelerating

performance, delivering disciplined growth, and strengthening the

capabilities and relationships that sustain long‑term value creation.

Operational excellence driving strong performance

Our FY2026 performance was underpinned by the growing maturity of

the BHP Operating System, disciplined cost control and reliable execution

across our diversified Tier 1 portfolio. We delivered the high‑quality

materials our customers need and achieved several production records.

Copper contributed more than half of our earnings for the first time, at a

strong 70 per cent EBITDA margin, and we remained the world’s largest

copper producer. Copper South Australia’s Olympic Dam achieved a

20‑year copper production record, while record material moved and

record concentrator throughput at Escondida helped offset the impact

of an anticipated decline in ore grade.

At WAIO, strong operational performance across the supply chain

resulted in record annual iron ore production. WAIO maintained its

position as the world’s lowest cost major iron ore producer, now for the

seventh year, with a greater than US$10 per tonne cost advantage over

its nearest Pilbara competitor.

In coal, BMA’s open‑cut steelmaking coal operations increased

production and achieved their highest stripping volumes in five years.

New South Wales Energy Coal (NSWEC) also performed well – exceeding

its production guidance and lifting earnings.

Cost control was a hallmark across all our operated assets, with every

major asset achieving unit cost guidance. This was despite external cost

pressures from inflation, higher diesel prices and global supply disruptions.

Future-facing commodity growth

We made important progress on our pipeline of copper and potash

growth projects.

Earlier this year we updated shareholders on Jansen’s cost and schedule,

with first potash projected in mid‑CY2027. This will further diversify our

portfolio and provide greater resilience across our mix of commodities.

We believe Jansen is a WAIO‑like asset that can eventually produce

around 10 per cent of global potash supply at an expected earnings

margin greater than 60 per cent. Our immediate priority is disciplined

project execution, with tighter controls and safe delivery of first production.

We also advanced our sector‑leading copper growth pipeline. Our plans

for a new concentrator at Escondida have been submitted to environmental

authorities in Chile, while Copper South Australia’s expansion plans have

progressed to detailed engineering ahead of a final investment decision.

In June, two sustaining growth projects were sanctioned at Spence,

with first production expected from FY2028. We also achieved important

regulatory milestones at our non‑operated joint ventures, Vicuña and

Resolution, and developed further exposure to future copper opportunities

through our investment in Faraday Copper.

Taken together, we aim to deliver compound annual production growth on

a copper‑equivalent basis from our current organic growth plans of around

3–4 per cent a year from FY2027 through to FY2035. That includes growth

in our copper business of around 5 per cent per year to FY2035.

Winning the next decade

We have the people and the portfolio to deliver more of the commodities

the world needs – safely, productively and responsibly, with three strategic

pillars to guide this.

First, accelerating our performance. Making BHP safer and simpler by

pairing the BOS with faster adoption of technology. As those two systems

reinforce each other, we can accelerate the rate of safety and productivity

improvement across every part of BHP.

Second, delivering disciplined, programmatic growth. Our growth options

are deliberately sequenced, which allows us to execute on our capital

priorities and invest through the cycle. We are focused on lifting our

major projects capability, progressing our copper and potash growth

options, and replenishing our resource base for the future. That means

increasing exploration, executing smaller bolt‑on acquisitions where the

value case is clear, and pursuing partnerships, including those that unlock

value in adjacent operations.

Finally, we must strengthen our foundations that underpin our long‑term

value. That means delivering on our social value and sustainability

commitments and deepening our core relationships with governments,

communities and industry partners. This is key to building resilience in our

existing operations and creating new opportunities for growth. We will also

keep investing in the next generation of leadership, capability and talent.

Creating lasting value

After more than 25 years at BHP, I know what our people can achieve

when we are aligned behind clear priorities and execute with discipline.

As much as we have achieved in our long history, I believe our best

chapters are still to be written. I am excited about the value we can

create for you and the world around us.

Thank you for your support.

Chief Executive Officer’s review

FY2026 demonstrated the strength of our

assets and our operating momentum. My focus

is to build on that foundation by accelerating

performance, delivering disciplined growth, and

strengthening the capabilities and relationships

that sustain long‑term value creation.”

Brandon Craig

Chief Executive Officer

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

Our performance summary

Resilience

and growth

Copper contributed more

than half of our Underlying

EBITDA for the first time and we

produced ~2 Mt of copper for

the second consecutive year.

World’s largest

copper producer

WAIO remained the

lowest‑cost major iron ore

producer globally for the

seventh consecutive year.

Record iron

ore production

BMA has steadily improved

operational performance and

value chain stability, with

production increasing ~10 per cent

over the past two years.

Steelmaking coal

production lift

Jansen Stage 1 is 84 per cent

complete. Jansen is a world‑class

asset and is expected to operate

at the low end of the cost curve

when fully ramped up.

First potash on track

for mid‑CY2027

Total economic contribution

US$50.8bn

This includes payments to governments

of US$12.4 billion. BHP remains one of the

largest corporate taxpayers in Australia and Chile.

1. For more information on our total economic contribution, refer to the BHP Economic Contribution Report 2026.

2. For more information on Non‑IFRS Financial Information refer to OFR 8.

3. Baseline year and performance data adjusted (refer to Sustainability Report Table 6a for the basis of our adjustments).

33%

on FY2020 baseline

Operational greenhouse

gas emissions

Attributable

profit

US$9.8bn

FY2025: US$9.0 bn

Dividend

per share

172USc

FY2025: 110 USc

Underlying earnings

per share

260.0USc

FY2025: 200.2 USc

4 BHP Annual Report 2026

1. 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.

2. Frequency rate based on combined total number of employee and contractor injuries/illnesses

(either HPIs, TRIs or occupational recordable illnesses (ORIs)) per 1 million hours worked.

Eliminating fatalities from BHP is

our highest priority.

We are deeply saddened by the loss of our colleague, who was working

for a contracting partner at BMA’s Peak Downs mine in July 2026.

An investigation into the incident is underway and the outcomes will be

used to strengthen our continued efforts to eliminate fatalities and serious

injuries across our operations. This tragedy follows a period of sustained

safety improvements and reinforces that there is always more work to do.

Our health and safety performance

In FY2026, we worked to reinforce our safety foundations through a

safety‑first culture, greater use of technology to help identify and control

risks, and further integration of the BHP Operating System (BOS)

across our operations.

The tragic loss of our colleague in July reinforces why the safety of our

people will always remain our highest priority as we strive to eliminate

fatalities across BHP. In FY2027, our commitment to safety culture and

technology deployment to assist in reducing risk exposure remains

as we also continue to strengthen frontline management of safety risk

by maturing and deepening our BOS capability. We intend to reduce

our exposure further by taking a risk‑based approach to the continued

deployment of autonomous haulage and by expanding the use of

technology‑enabled controls to support and strengthen risk management.

A particular focus in FY2027 will be on strengthening our contractor

management framework to support improvement in contractor

safety performance.

In FY2026:

– High potential injury frequency (HPIF) decreased by 27 per cent,

contributing to a 69 per cent reduction over the past five years.

High potential injuries (HPIs) were primarily associated with lifting

activities, dropped and falling objects, vehicle and mobile equipment

interactions, and electrical risks.

– Total recordable injury frequency (TRIF) was unchanged from FY2025.

The most common recordable injuries related to trips, slips and falls,

contact with objects, and caught‑between incidents.

– The rate of total recordable occupational illnesses (TROIF) was

unchanged from FY2025, with musculoskeletal illnesses remaining

the most commonly reported occupational illnesses.

For more information, including detail on occupational illnesses and coal mine

dust lung disease cases, refer to the BHP ESG Standards and Databook

2026 at bhp.com/ESGSD2026

For more information on the presentation of sustainability‑related data

refer to OFR 9.1

During FY2026 we took targeted actions, to strengthen leadership presence

in the field and continued to build momentum through our Global Field

Leadership program.

We also held our first Global Safety Week. The initiative reinforced our focus

on safety leadership, site‑based risk management and integration with BOS,

while providing an opportunity for our workforce to reflect on critical risks

and share learnings.

Technology continued to play an increasingly important role in supporting

risk identification and control management. We are focused on the use

of technology to help us solve for ongoing risk exposures that rely on

human‑dependent controls as the last line of defence, and in FY2026

we continued to adopt and scale technology‑enabled safety controls.

Key initiatives included:

– the deployment of vehicle proximity detection systems across selected

equipment fleets. We will continue to systematically take a risk‑based

approach to the deployment of this technology across all our operated

assets in FY2027 to further reduce risk around pedestrian and

vehicle interactions

– the introduction of AI‑enabled mobile solutions designed to simplify

hazard reporting, improve access to safety information and support

the early identification of risks. These included a voice‑to‑text hazard

reporting app available in Spanish and English to expand reporting

accessibility and risk visibility and the ‘Ask Safety’ GenAI chatbot to

quickly connect and aggregate field leadership data

1 Safety

Employees 0.01

Contractors 0.02

Fatalities

FY2026: 0

FY2025: 0

FY2026

FY2025

FY2024

FY2023

FY2022

0.07

0.09

0.11

0.18

0.14

Per million hours worked

27%

on FY2025

High potential injury frequency (HPIF)

Total recordable occupational illness frequency (TROIF)

Per million hours worked

FY2026

FY2025

FY2024

FY2023

FY2022

3.0

2.7

3.1

2.5

Employees 5.08

Contractors 1.75

Employees 1.06

Contractors 0.82

Total recordable injury frequency (TRIF)

FY2026

FY2025

FY2024

FY2023

FY2022

4.5

4.8

4.4

4.1

Per million hours worked

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

2 Why BHP

A stronger,

more resilient

BHP

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 stakeholders.

Our strategy

To bring people and

resources together to

build a better world

Our purpose

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 our people deliver

on our purpose.

Our values

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.

6 BHP Annual Report 2026

1. BHP’s EBITDA margin has averaged >50 per cent for over 25 years; net operating cash

flow averaged >US$20 billion a year since FY2010; we have maintained a strong balance

sheet with net debt decreasing to US$8.7 billion at 30 June 2026; and we have returned

more than US$115 billion to shareholders over the past decade.

2. BHP reported copper production on a consolidated basis for the year ended 30 June

2026 (FY2026) relative to competitor reported copper production data for CY2025 on a

consolidated basis compiled from Wood Mackenzie and publicly available information

(company reports). Competitors include: Anglo American, Antofagasta, Codelco,

Freeport, Glencore, Rio Tinto, Southern Copper, Teck.

3. BHP Insights: How copper will shape our future

4. Represents our current aspiration for BHP group attributable production, and is not intended

to be a projection, forecast or production target. Production aspirations include potential

increases in production rates, as well as potential production from BHP’s assets and

non‑operated joint ventures and exploration, and are 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, which factors are uncertain.

5. Copper segment CuEq growth from FY2027 to FY2035 is based on BHP’s attributable

share of production from BHP’s copper assets and from non‑operated joint ventures.

Copper equivalent production for this aspiration includes contribution from by‑products and is

calculated using UBS 2026 long term (real) consensus prices as of May 2026 of US$4.76/lb

for copper, US$3,354/oz for gold, US$45/oz for silver and US$82/lb for uranium.

6. C1 cash costs have been restated to include inventory movements. The comparative

FY2025 C1 unit cost based on this new methodology would be US$16.16/t. Based on

previous methodology, the FY2026 C1 unit cost would be US$18.72/t (FY2025: US$17.29/t).

WAIO remains the lowest‑cost producer (over seven years) under both methodologies based

on BHP internal analysis of WAIO C1 reported unit costs compared to publicly available unit

costs reported by major competitors (including Fortescue, Rio Tinto and Vale), adjusted for

alignment based on publicly available financial information. There may be differences in the

manner that third parties calculate or report unit costs data compared to BHP, which means

third‑party data may not be comparable with our data.

7. BMA on a 100 per cent basis. Source: Wood Mackenzie 2026 Q2 dataset.

8. Refers to US$4.3 billion realised by completing the Antamina silver streaming transaction and

a US$2 billion agreement entered into with Global Infrastructure Partners (GIP) in relation to

BHP’s share of WAIO’s inland power consumption.

BHP’s value proposition is clear and we are

well positioned to lift our performance and

growth to the next level.

We produce commodities essential to global development and modern

life, which we expect will be in strong demand for decades to come.

Our assets are large, long‑life and low cost with options to grow. They are

part of a portfolio that is deliberately diversified to give us resilience through

cycles and exposure to long‑term growth.

We have significant opportunity to further lift performance in our assets and

a clear pathway for growth while maintaining our long‑standing commitment

to operational excellence and financial discipline. We will do this by further

embedding the BHP Operating System (BOS) and using technology as a

productivity accelerator.

Our scale, diversified portfolio of world‑class Tier 1 assets in attractive

and durable commodities and exciting copper and potash growth pipeline

are compelling.

Combined with the quality of our people and culture, our commitment to

responsible stewardship and a differentiated focus on social value, they

form a formidable platform to continue to create value for our shareholders,

now and in the years ahead.

Clear strategy, the right commodities

BHP has a simple and clear strategy that has proven successful.

We are the world’s largest copper producer.

We produced around 2 million

tonnes (Mt) of copper in FY2026 for the second year running as global copper

prices hit record levels and supply remained constrained. Our copper assets

contributed more than half of our Group Underlying EBITDA for the year for the

first time in FY2026. As the world continues to electrify, urbanise and digitalise,

we expect the strong fundamentals for copper to remain. Copper demand

is expected to grow from ~34 Mtpa today to >50 Mtpa by CY2050, driven

by traditional economic growth (home building, electrical equipment and

household appliances), energy transition (renewables and electric vehicles)

and digital (artificial intelligence and data centres). Current expectations are

that copper demand associated with investment in data centres could grow

around sixfold between CY2024 and CY2050, up to around 3 Mtpa.³

We anticipated and planned for this increase in demand and are working to

increase our copper exposure further. We have exciting growth options in

copper

that could help lift our attributable copper equivalent production from

our copper business by around 5 per cent a year from FY2027 to FY2035.

This is growth that we believe will be clear, executable and value accretive.

We remained the world’s lowest‑cost major iron ore producer

over the last

seven years and are focused on extending our industry‑leading cost position

at WAIO. We plan to increase production to >305 Mtpa (100 per cent basis)

by Q4 FY2028 and sustain this level over the medium term. In periods of

high inflation, our leading cost position is a significant competitive advantage

as the cost gap between efficient and less efficient producers grows.

BMA remains one of the largest suppliers of higher‑quality steelmaking

coal in the global seaborne market.

And we are building a significant

potash business in Canada,

with first production expected in mid‑CY2027.

Potash is an exciting new growth market for us that will further diversify

our portfolio, helping make BHP stronger and more resilient.

Operational excellence, disciplined capital allocation

Our global workforce achieves great results, time and again. We continue

to focus on talent development. BOS guides how we work, making

improvement central to everyone’s role, enabling our workforce to make

BHP better every day.

BOS gives us a competitive edge by making continuous improvement part

of how we work every day. Through its tools and practices, it strengthens

our culture and supports ambitious targets. It helps create better planned,

more stable work. Ultimately, BOS shapes how we work together and

how we deliver.

Our Capital Allocation Framework (CAF) underpins disciplined capital

management by ensuring potential uses of capital compete to maximise

value and returns. We continuously seek to unlock additional value from our

capital base and assets, announcing agreements in FY2026 to unlock a total

of US$6.3 billion of capital through a WAIO power infrastructure agreement

and a silver streaming agreement for our share of silver production at the

Antamina mine in Peru.

This combination delivers stable, predictable performance, supporting

industry‑leading margins, high returns and effective use of our balance

sheet and supports more stable and consistent returns for our shareholders.

Leveraging BOS and technology to drive productivity

We believe we can accelerate our performance by pairing BOS with the

faster adoption of technologies such as artificial intelligence (AI) to lift

our rate of improvement, unlocking greater safety and productivity.

Technology is also integral to how our teams explore, plan, operate

and maintain our assets.

Together, they can create a compounding effect to enable stronger safety

outcomes and accelerating rates of productivity improvement.

Continuous improvement of our technology foundations and digital capabilities

is key to our strategy. This includes strengthening the reliability, resilience and

security of our systems, alongside expanding the use of technologies such

as AI, automation and advanced analytics where they can help our teams

address practical challenges and opportunities and work more safely. We are

supporting our workforce to understand and use these tools effectively in their

work, helping us make better decisions, improve reliability and deliver more

consistent outcomes while unlocking value across our operations.

Differentiated focus on social value

A key part of our competitive advantage is our focus on working with

others to create a lasting contribution to society. This builds trust and

connects us to the resources, partners, investors, talent and markets

that drive performance, resilience and growth. Our approach to social

value differentiates BHP and creates long‑term value for stakeholders,

including our shareholders.

For more information on social value refer to OFR 9.3

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.

Sales, marketing and procurement

We maximise value through our centralised marketing and procurement

organisations, commercial expertise, understanding of markets, and

customer and supplier relationships.

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.

Development and mining

We strive to achieve industry‑leading performance in safety, operational

excellence, project management and allocation of capital.

Exploration and acquisition

We seek to add high‑quality resources through our exploration activities

and early‑stage entry and acquisition options.

Our business model

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

1. Includes global income taxes, royalty-related income taxes, royalties and other payments to governments.

2. For more information refer to the BHP Economic Contribution Report 2026 available at bhp.com/ECR2026

3. Based on a ‘point in time’ snapshot of employees as at 30 June 2026, including employees on extended absence. Contractor data

was collected from internal organisation systems and averaged for a 10-month period, July 2025 to April 2026.

4. Includes payments to suppliers for operating costs on an accruals basis and payments to suppliers for capital expenditure on a cash basis.

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

Pampa

Norte

Escondida

Samarco

Antamina

Resolution Copper

Jansen

Tucson

Belo

Horizonte

Iquique

Santiago

Saskatoon

Denver

Vancouver

Toronto

Washington

Lima

Antofagasta

Vicuña

Australia

Chile

Canada

Rest of the world

Where we operate

We are a leading global

resources company.

$12.4bn

Global total

$50.8bn

Global total

Total economic

contribution

(US$)

84,309

Global total

No. of employees

and contractors

$26.0bn

Global total

Payments to

suppliers

(US$)

Total payments to

governments

(US$)

$5.5bn

$239m

$43m

$6.6bn

$13.8bn

$3.6bn

$2.2bn

$31.2bn

$14.1bn

$7.3bn

$2.0bn

$2.6bn

30,892

5,362

3,801

44,254

Non-operated

joint venture

BHP principal

office location

Copper Potash NickelCoalIron ore

8 BHP Annual Report 2026

3 Strong growth outlook

Embracing the technology of the future

BHP Ventures

BHP Ventures is our dedicated venture capital unit. It invests in companies

developing game‑changing technologies with the potential to make BHP’s

global operations safer, more productive and more sustainable.

Investments in FY2026 included technologies advancing robotics and

AI, and mineral processing technologies. Through our investments, we

aim to accelerate the development of technology – such as early‑stage

processing technologies – to benefit not only our business and value

chain, but that of our broader industry.

BHP Invent

BHP Invent discovers, tests and accelerates emerging technologies

to deployment readiness, helping us deliver the commodities the

world needs through new approaches to ore body knowledge, mining,

processing, leaching and tailings.

During the year, we accelerated a range of technologies that aim

to increase copper recovery through processing, aim to accelerate

assessment of complex ore bodies through advanced sensors and

data analytics, and aim to improve mine safety through advanced

underground systems and ventilation innovations. Key technologies

have received endorsement for future implementation by the asset and

have progressed to asset designs, flowsheets and life of asset plans for

future deployment on site.

Growth through exploration, focused on copper

Greenfield exploration

Our greenfield exploration is focused on the discovery of material new

copper resources. In FY2026, we continued to strengthen our exploration

portfolio through advancing existing projects and selectively expanding

into new regions that meet clear value thresholds. Our efforts spanned

early‑stage greenfield exploration, strategic alliances, expansion of our

Xplor accelerator program and value uplift of existing assets.

We advanced greenfield exploration activities in Australia, Botswana,

Canada, Norway, Peru, Serbia and the United States and have

supported value uplift of existing assets in Chile and the United States.

BHP Xplor

Through Xplor, our equity‑free partnership program, we are working

with explorers and technology providers to accelerate novel ideas

in mineral exploration. Xplor extends BHP’s reach into emerging

concepts and in turn shares the benefits of BHP’s expert network

with our partners. To date, Xplor has supported 31 companies, with

several companies advancing to longer‑term commercial arrangements

– demonstrating a clear pathway from concept to partnership.

The FY2026 cohort consisted of 10 participants across exploration,

data and technology, and represented our most diverse cohort to date.

Exploration expenditure

Our total metals exploration and resource assessment expenditure

was US$408 million in FY2026, a 3 per cent increase on FY2025,

and includes greenfield expenditure of US$132 million, a 10 per cent

decrease from FY2025. Commentary in this section refers to greenfield

exploration only.

1. BHP reported copper production on a consolidated basis for the year ended 30 June

2026 (FY2026) relative to competitor reported copper production data for CY2025 on a

consolidated basis compiled from Wood Mackenzie and publicly available information

(company reports). Competitors include: Anglo American, Antofagasta, Codelco,

Freeport, Glencore, Rio Tinto, Southern Copper, Teck.

2. Copper segment CuEq growth from FY2027 to FY2035 is based on BHP’s attributable

share of production from BHP’s copper assets and from non‑operated joint ventures.

Copper equivalent production for this aspiration includes contribution from by‑products and is

calculated using UBS 2026 long term (real) consensus prices as of May 2026 of US$4.76/lb

for copper, US$3,354/oz for gold, US$45/oz for silver and US$82/lb for uranium.

3. BHP Insights: how copper will shape our future – September 2024.

4. Represents our current aspiration for Copper South Australia attributable copper production,

and is not intended to be a projection, forecast or production target. Refer to Note 2 above for

assumptions and qualifications, which apply to this aspiration. Copper equivalent production

for this aspiration includes contribution from by‑products and is calculated using UBS long

term consensus prices as of May 2026 of US$4.76/lb for copper, US$3,354/oz for gold,

US$45/oz for silver and US$82/lb for uranium.

5. CuEq calculation based on the potential Stage 1 production and commodity prices

disclosed in the Vicuña Integrated Technical Report 2026: Copper US$4.60/lb, gold

US$3,300/oz, silver US$40/oz. Refer to Note 2 above for other assumptions and

qualifications, which apply to this aspiration.

6. For more information refer to Additional information 6 ‘Mineral Resources and Ore Reserves’.

BHP is well placed to capitalise

on changes shaping our world.

Growing our leading position in copper

We are the world’s largest copper producer.

We are advancing significant

copper growth options. We estimate these growth options could increase our

attributable copper production to ~2 Mtpa (~2.5 Mtpa in copper equivalent

(CuEq) production) by FY2035, an increase of around 40 per cent on current

attributable copper production levels.

This represents copper equivalent

growth from our copper business of an average 5 per cent a year between

FY2027 and FY2035.²

This is an exciting position to be in. We see solid fundamentals

underpinning the copper price in the decades ahead. We continue

to expect global copper demand to grow to over 50 million tonnes by

CY2050 through traditional economic growth, the energy transition, and

AI‑driven data centre demand.

We also see a looming global copper

supply challenge, as existing copper mines age and with the pipeline

of potential projects less healthy than in previous cycles.

Escondida: We are advancing the Escondida New Concentrator, the

centrepiece of the growth program at Escondida, the world’s biggest copper

mine. In March 2026, we submitted the Environmental Impact Declaration

and a final investment decision for the new concentrator is expected in

CY2027 or CY2028. This new concentrator, which will replace the existing

Los Colorados concentrator, is expected to deliver copper production at

Escondida of 230–270 kilotonnes per annum (ktpa) between CY2031 and

CY2032 from increased ore throughput and improved recoveries from the

use of new technology and reagents, and will have a higher production

capacity than the existing Los Colorados concentrator.

Copper South Australia: In South Australia, we are progressing a

number of projects that have the potential to increase copper production

to ~500 ktpa (~770 ktpa CuEq) in the first phase and contribute to our

strategy to deliver up to 650 ktpa copper production (~1 Mtpa CuEq)

from our 100 per cent‑owned Copper SA in the second phase.

Vicuña: This non‑operated joint venture with Canada’s Lundin Mining

along the Argentina‑Chile border is being developed using a staged

approach. Vicuña remains on track for a potential Stage 1 final investment

decision as early as end of CY2026, with the potential to produce

~200 ktpa copper (~300 ktpa CuEq) on a 100 per cent basis.

Resolution Copper: In the United States, Resolution Copper,

a non‑operated joint venture between Rio Tinto (55 per cent and

operator) and BHP (45 per cent), completed a land exchange in Arizona.

BHP declared an ASX Mineral Resource for Resolution of 1.86 billion

tonnes at 1.52 per cent copper in its Mineral Resources and Ore Reserves

statement for the first time in FY2026, representing one of the largest

untapped, high‑grade copper resources in the world, with the potential

to become a significant copper producer in North America.

Other: To maintain exposure to future copper opportunities, we have

invested in Faraday Copper Corp to support the development by Faraday

of a new copper hub in Arizona. Spence also signed a Memorandum

of Understanding (MoU) with Sierra Gorda SCM to explore commercial

collaboration opportunities aimed at improving the efficiency and

long‑term competitiveness of these two adjacent operations.

First potash production on track for mid-CY2027

Once ramped up our Jansen potash project in Canada is expected to be

a world‑class, low‑cost potash producer. Stage 1 of our Jansen potash

project in Canada is 84 per cent complete and on track for first production

in mid‑CY2027.

Jansen has the potential to operate for more than 60 years and will

establish BHP in a new commodity that is essential to food security.

Potash demand drivers and key customer markets are different from

our other commodities. This means prices are less correlated, increasing

diversification and driving even more stability in earnings and cash flow

generation for the BHP asset portfolio.

WAIO: growing production, lowering costs

WAIO is already the world’s lowest‑cost major iron ore producer,

a position it has maintained for the past seven years. We plan to

increase production to >305 Mtpa (100 per cent basis) by Q4 FY2028

and sustain this level over the medium term through a range of low‑capital,

high‑returning projects. These include the sixth car dumper (CD6)

sanctioned in August 2025, uplifting rail capacity through reduced cycle

times, increasing autonomous haulage and driving further productivity

improvements across the supply chain through the BHP Operating System.

Our cost leadership at WAIO delivers around US$10 per tonne more

free cash flow than our next closest major Pilbara competitor.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial ReviewOperating and Financial Review

4 Our assets

4.1 Copper

Escondida

Ownership

BHP 57.5%, Rio Tinto 30%, JECO Corporation 10%, JECO 2 Ltd 2.5%

Overview

Located in the Atacama Desert in northern Chile, Escondida is a leading

producer of copper concentrate and cathodes, with by‑products including

gold and silver. Escondida’s two open‑cut pits feed three concentrator

plants and two leaching operations.

Key developments in FY2026

During FY2026, Escondida celebrated 35 years since the beginning of its

operations in 1991.

Copper production decreased 3 per cent to 1,261 kilotonnes (kt)

(FY2025: 1,305 kt) due to planned lower concentrator feed grade of

0.90 per cent (FY2025: 1.02 per cent). This was partially offset by

continued strong operational performance and productivity improvements,

with record material mined and record concentrator throughput, as well as

improved recoveries driven by operational enhancements, including the

introduction of new reagents. Cathode production increased, supported

by higher Full SaL recoveries and improved operational performance,

enabling additional sulphide leach pad irrigation.

During FY2026, Escondida continued to make positive progress

on the optimised Escondida Growth Program. In September 2025,

the Antofagasta Environmental Evaluation Committee approved the

Environmental Impact Declaration (DIA) for the Laguna Seca Expansion,

enabling early infrastructure development. In March 2026, the DIA permit

for the Escondida New Concentrator, the centrepiece of the growth

program, was submitted. The new concentrator is expected to require

an investment of between US$5.4 and US$6.3 billion to deliver between

230 and 270 ktpa of copper production capacity, more than offsetting the

existing production capacity of the current Los Colorados plant which it

will replace. Subject to approval of the DIA permit, the project will progress

towards an expected final investment decision (FID) in CY2027–2028, with

potential first production between CY2031–2032.

We continue to study various leaching technologies, with each at different

stages of evaluation.

Production guidance for FY2027 remains unchanged between 1,000 and

1,100 kt. Concentrator feed grade for FY2027 is expected to be ~0.70

per cent.

Pampa Norte

Ownership

BHP 100%

Overview

Pampa Norte comprises two open‑cut mines in the Atacama Desert in

northern Chile – Spence and Cerro Colorado. Spence produces copper

cathodes and copper concentrate, with by‑products including gold, silver

and molybdenum. Cerro Colorado produced copper cathodes until it

entered temporary care and maintenance in December 2023.

Key developments in FY2026

Spence copper production decreased 21 per cent to 213 kt due to ongoing

challenges with ore complexity at the concentrator, and the planned

decline in stacked feed grade at the cathode plant, as we progress deeper

into the hypogene mineralisation of the ore body. The Spence Concentrator

Upgrade Recovery project, which upgrades the flotation circuit to increase

residence time and improve recoveries, was sanctioned in June 2026,

with first production expected during FY2028. Once commissioned, we

expect the project will allow us to more effectively manage Spence’s ore

complexity and variability. The Spence Chalcopyrite Leaching project was

also sanctioned in June 2026, which includes the implementation of BHP’s

sulphide leaching technology, Simple Approach to Leaching 2, to enable

processing of hypogene ores and utilise latent capacity in the cathode

infrastructure, with first production expected in CY2028.

Production at Spence for FY2027 is expected to be between 210 and

230 kt, as Spence continues to manage ore variability via blending at the

concentrator before the concentrator upgrade comes online in FY2028.

CHILE

BOLIVIA

ARGENTINA

PERU

Iquique

Pacific

Ocean

Tocopilla

Antofagasta

Mejillones

Calama

Pica

Spence

Minera Escondida

Cerro

Colorado

Chile

Bolivia

Existing operations

Township

Escondida

and

Pampa Norte

Cerro Colorado which remains in care and maintenance, submitted an

Environmental Impact Assessment (EIA) in June 2026, setting out a plan

to restart operations and extend the mine life for an additional 20 years

through upgrading existing infrastructure and developing a sustainable

water solution. The project aims to leverage existing resources and proven

BHP chloride leaching technology to produce copper cathodes.

Copper South Australia

Ownership

BHP 100%

Overview

Located in South Australia’s Gawler Craton region, Copper South Australia

comprises the Olympic Dam, Carrapateena and Prominent Hill underground

mining and surface operations, and the Oak Dam exploration project.

Olympic Dam has integrated crushing, grinding, concentrating, smelting and

refining operations, and produces copper cathode, gold and silver bullion, and

uranium oxide concentrate. Carrapateena and Prominent Hill use underground

mining and surface grinding and concentrating methods to produce copper

concentrate, with gold and silver by‑products. Oak Dam is a greenfield copper

deposit with a copper and gold mineral resource, with potential silver and

uranium, located between Carrapateena and Olympic Dam.

Key developments in FY2026

Copper South Australia achieved production of 321 kt of payable copper

(FY2025: 316 kt), gold production of 393 thousand troy ounces (ktoz)

(FY2025: 361 ktoz) and 3.6 kt of uranium (FY2025: 3.2 kt).

Production increased due to strong operational performance, including

record material mined and ore milled, as well as the weather‑related power

outage in the prior period which impacted FY2025 production. Olympic Dam

achieved a 20‑year copper production record, while Prominent Hill benefited

from higher feed grades. Carrapateena achieved record material mined and

milled, which partially offset the impact of planned lower grades.

Prominent Hill

Olympic Dam

Oak Dam

Carrapateena

~180km

Existing

operations

Project

Transmission

line

South Australia

Copper South

Australia

10 BHP Annual Report 2026

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

Notable landmarks

Arizona,

USA

Highway

Township

Resolution

Copper

By‑product production volumes were also strong with record gold

production, including record refined gold at Olympic Dam, capitalising

on strong gold prices, while uranium production also increased 16 per cent.

At Prominent Hill, commissioning commenced on the Operations Expansion

project (PHOX), which remains on track for first production in the second

half of FY2027 and is expected to extend mine life into the mid‑2040s.

At Carrapateena, the decline to the base of the block cave was completed, a

key milestone in our plan to expand Carrapateena operations up to 12 million

tonnes per annum (Mtpa). Block cave ramp‑up is scheduled to commence in

FY2030. At Olympic Dam, progress continued on the Southern Mining Area

Decline with lateral development commencing during the year. The project is

expected to unlock up to 2.5 Mtpa of additional vertical capacity and remains

on track for completion in the second half of FY2028.

Progress also continued across the broader growth program, with a design

and supply contract awarded to China Nerin Engineering for key processing

facilities associated with the Smelter and Refinery Expansion. At Oak Dam,

exploration activities advanced in parallel with government approvals for the

twin underground access declines.

Production for FY2027 is expected to be 290–320 kt, reflecting planned anode

inventory build ahead of smelter maintenance scheduled for the first half of

FY2028 and the impact of an unplanned conveyor belt failure at Carrapateena

in July 2026.

Non-operated joint ventures

Antamina

Ownership

BHP 33.75%, Glencore 33.75%, Teck 22.5%, Mitsubishi 10%

Overview

Antamina, located in north central Peru, is a large, low‑cost, open‑cut

copper and zinc mine with by‑products including molybdenum and silver.

It is independently operated by Compañía Minera Antamina S.A.

Key developments in FY2026

Copper production increased 27 per cent to a financial year record

of 152 kt, as a result of higher feed grades and improved operational

performance. Zinc production decreased 11 per cent to 96 kt, primarily

due to lower feed grades.

During FY2026, BHP completed a long‑term silver streaming agreement

with Wheaton Precious Metals International Ltd. relating to BHP’s share

of silver production from Antamina. Under the agreement, BHP received

upfront consideration of US$4.3 billion. In exchange, BHP will deliver silver

to Wheaton calculated by reference to BHP’s share of silver produced

at Antamina, with settlement via metal credits and no physical delivery

of silver. Antamina is not a party to the agreement. The agreement does

not affect BHP’s shareholder rights, obligations under the joint venture

arrangements, existing customer agreements, or exposure to copper,

zinc and lead production from its share of Antamina.

Production for FY2027 is expected to be between 120 and 140 kt for copper

and between 35 and 55 kt for zinc due to planned lower feed grades.

Resolution Copper

Ownership

Rio Tinto 55%, BHP 45%

Overview

Resolution Copper, in Arizona, US, contains a Mineral Resource of

1.86 billion tonnes at 1.52 per cent copper, representing one of the

largest untapped, high‑grade copper resources in the world, with the

potential to become a significant copper producer in North America.

Resolution Copper is operated by Rio Tinto.

Key developments in FY2026

Resolution Copper progressed engineering and permitting activities

during FY2026.

During the period, a key milestone was achieved, with the completion of a

land exchange (LEX) with the US Government. Mandated by federal law,

the LEX secured land critical for the project in exchange for environmentally

sensitive and culturally important land owned by Resolution Copper, which

was transferred to the US Government. This milestone enables the next

phase of technical work and development planning. The LEX remains subject

to ongoing litigation which is not currently impacting ongoing technical work.

The Resolution Copper Project is also required to obtain state and local permits.

As technical studies and permitting activities advance, Resolution Copper

remains committed to engaging with Native American Tribes and other

stakeholders to create shared value and long‑term benefits.

Vicuña

Ownership

BHP 50%, Lundin Mining 50%

Overview

Vicuña is advancing the opportunity for a staged development of the

Josemaria and Filo del Sol deposits as an integrated project located

along the border of San Juan province, Argentina and the Atacama

region of Chile. It is independently operated by Vicuña Corp, a

Canadian‑incorporated joint venture company.

Key developments in FY2026

In February 2026, Vicuña released a Technical Assessment Report

(including an updated mineral resource estimate) on the integrated Vicuña

project, comprising Josemaria and Filo del Sol. The report reinforced the

scale of the resource and the opportunity to develop a top global copper,

gold and silver producing asset.

Vicuña continues to advance work to enable the development of the project

in stages, designed to optimise capital, manage risk, generate early cash

flow and maximise long‑term district value. Development of Stage 1, with

initial production from the Josemaria deposit, would set up the district for

later development of the Filo del Sol deposit in Stages 2 and 3.

An update to the Josemaria Environmental Impact Declaration (DIA)

was approved by the San Juan authorities in March 2026. In June 2026,

Vicuña received approval for the inclusion of the Josemaria and Filo del

Sol deposits to Argentina’s Incentive Regime for Large Investments (RIGI)

under the Long‑Term Strategic Export Projects designation (PEELP).

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

4.2 Iron ore

Western Australia Iron Ore

Ownership

Western Australia Iron Ore (WAIO) BHP ownership: 85% for the four main

joint ventures (JVs): Mt Newman JV, Yandi JV, Mt Goldsworthy JV and

Jimblebar JV (the JVs are unincorporated, except Jimblebar JV); and 65%

for POSMAC, which sells its ore to Mt Goldsworthy JV.

Overview

WAIO is an integrated system of four processing hubs and five open‑cut

operational mines in the Pilbara region of northern Western Australia.

It owns and operates more than 1,000 kilometres of rail infrastructure

and two port facilities.

WAIO’s 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 (which has our beneficiation plant), Yandi

(which will process Ministers North in the future), Mining Area C (our largest

operating iron ore hub, processing ore from Area C and South Flank) and

Jimblebar – to create lump and fines products. These products are then

transported along the Port Hedland–Mt Newman rail line to the Finucane

Island and Nelson Point port facilities at Port Hedland.

Key developments in FY2026

WAIO delivered record production as a result of strong operational

performance across the supply chain. WAIO achieved record material

mined (up 6 per cent), with South Flank exceeding annual nameplate

capacity. A drawdown of inventory at the Central Pilbara Hub (South Flank

and Mining Area C) supported record volumes and provided value chain

resilience. At port, Car Dumper (CD) performance improved following the

completion of the Car Dumper 3 (CD3) rebuild in Q1 FY2026 (4.3 Mt impact,

100 per cent basis), which alongside the planned reduction in tie‑in activity

on the multi‑year Rail Technology Program (RTP1) and combined with

operational improvements across the rail network, generated increased

efficiency, record inflow and record shipments (100 per cent basis).

In June 2026, the execution of the Ministers North project was approved

for an investment of ~US$0.9 billion (100 per cent basis). Ministers North

is a high‑grade Brockman ore deposit and is expected to deliver

Marble Bar

Orebody 18

Newman

East

Yandi

Mining Area C

Ministers North

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

Port

Township

Project

Western Australia

Iron Ore

4 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

Vicuña is the first mining project to be granted the RIGI PEELP status

providing the project with significant economic benefits and fiscal certainty

for up to 40 years.

Vicuña remains on track for a potential Stage 1 final investment decision

as early as end of CY2026.

Operating mines

Vicuña

JV deposits

Argentina

Township

Road

infrastructure

Past-producing

mines

Chile

Josemaria

Filo del Sol

Vicuña JV

Candelaria

Caserones

Maricunga

Aimogasta

Tinogasta

Nonogasta

Veladero

El Indio

ARGENTINA

CHILE

Copiapó

San José de Jáchal

Villa Unión

Belén

Fiambalá

Vicuña

~20 Mtpa once ramped up, supporting sustained production of >305 Mtpa

(100 per cent basis). The project is expected to generate attractive returns

of >30 per cent as a result of utilising existing Yandi infrastructure. First ore

is expected in FY2029.

Production for FY2027 is expected to be between 253 and 264 Mt (286 and

298 Mt on a 100 per cent basis) and includes the renewal of Car Dumper 4

in the first half of FY2027.

Non-operated joint venture

Samarco

Ownership

BHP 50%, Vale 50%

Overview

Samarco comprises an open‑cut mine and three concentrators in Minas

Gerais, Brazil and four pellet plants and a port in Anchieta, Espírito Santo,

Brazil. Three 400‑kilometre pipelines connect the mine to the pelletising

facilities. Samarco is independently operated by Samarco Mineração S.A.

Operations were suspended in November 2015 following the Fundão dam

failure. Since resuming in December 2020, Samarco has implemented

enhanced tailings management practices, enabling operation without a

conventional tailings dam. Samarco has pursued a safe and sustainable

phased restart. The third phase, approved by the Samarco Board

in November 2025, is expected to increase production capacity to

100 per cent, targeting an annual production of approximately 26 Mtpa

(100 per cent basis) by CY2029.

For more information on the Fundão dam failure and response

refer to Additional information 8

12 BHP Annual Report 2026

Key developments in FY2026

Production (iron ore pellets and ore fines) increased 25 per cent to 7.8 Mt

(BHP share) due to better than planned concentrator performance.

Production for FY2027 is expected to be between 7.5 and 8.0 Mt

(BHP share).

Samarco continued the decommissioning of its upstream tailings dam

structures in accordance with Brazilian legislation. Decommissioning of

the Germano Main dam progressed as planned and remains on track for

completion in FY2027. These structures continue to be certified as stable

by independent third parties and are compliant with local stability and

monitoring requirements. Samarco also maintained compliance with the

Global Industry Standard on Tailings Management (GISTM).

Samarco is continuing broader studies to review solutions to operate

without tailings dams beyond FY2030.

4.3 Coal

Steelmaking coal

BHP Mitsubishi Alliance

Ownership

BHP 50%, Mitsubishi 50%

Overview

BHP Mitsubishi Alliance (BMA) operates five steelmaking coal mines

in the Bowen Basin, Queensland – Goonyella Riverside, Broadmeadow,

Peak Downs, Saraji and Caval Ridge. The mines are open cut, except for

the Broadmeadow underground longwall operation. BMA has access to

infrastructure including a multi‑user rail network and owns and operates

its own coal‑loading terminal at Hay Point, near Mackay.

Based on customer requirements, coal from different coal seams is

blended to meet required quality specifications then washed at processing

plants on site at Goonyella Riverside (which also processes Broadmeadow

coal), Saraji, Peak Downs and Caval Ridge.

Key developments in FY2026

Production increased with strong operational performance at the open‑cut

operations, delivering the highest stripping volumes in five years. Improved wet

weather operating performance enabled BMA to partially mitigate the impacts

of higher‑than‑average rainfall including Tropical Cyclone Koji, weather‑related

mine sequencing impacts on yield, and ongoing geotechnical challenges at

the Broadmeadow underground mine. BMA also increased raw coal inventory

levels by around 30 per cent, reflecting the focus on strengthening supply

chain stability and resilience. In December 2025, Saraji South mine was

placed into a period of care and maintenance.

Production for FY2027 is expected to be between 18.5 and 20.5 Mt

(37 and 41 Mt on a 100 per cent basis), weighted to the second half.

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

Newcastle

Maitland

Singleton

Cessnock

Quirindi

Gunnedah

Tamwor th

Mt Arthur

Muswellbrook

NSW,

Australia

Existing

operations

Port

Rail

Township

New South

Wales Energy

Coal

Energy coal

New South Wales Energy Coal

Ownership

BHP 100%

Overview

New South Wales Energy Coal (NSWEC) comprises the Mt Arthur

Coal open‑cut energy coal mine in the Hunter Valley. It has access to

infrastructure in the Hunter Region, including a multi‑user rail network

and coal loading terminal access at the Port of Newcastle through

Newcastle Coal Infrastructure Group (BHP ownership: 28 per cent) and

Port Waratah Coal Services.

We have approval to continue mining at NSWEC until the end of FY2030.

This will allow time to work with our people and the local community on an

equitable change and transition approach, balancing business, community

and regulatory needs and expectations.

Key developments in FY2026

NSWEC FY2026 production of 16.36 Mt exceeded the top end of the

external guidance range of 14–16 Mt, assisted by increased bypass coal

due to mine sequencing. This was further supported by mining lower strip

ratio areas as we continue to progress our plan to cease mining at the

Mt Arthur Coal mine in June 2030.

Progressive rehabilitation of the site continues, in parallel with land

use studies to consider options for future use of parts of the site and

infrastructure after mining by BHP ceases. In November 2025, the Federal

Net Zero Economy Authority announced funding for a mine land and

infrastructure re‑use pilot project at the Mt Arthur Coal mine, delivered in

partnership with the New South Wales State Government, and the local

Muswellbrook Shire Council, to progress approval pathways required to

repurpose land and realise future employment opportunities. Technical and

related studies are ongoing with third parties to explore a potential pumped

hydro energy storage opportunity that could be progressed by others.

Production for FY2027 is expected to be between 14 and 16 Mt.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

4.5 Potash

Jansen potash project

Ownership

BHP 100%

Overview

The Jansen potash project is located about 140 kilometres east of Saskatoon,

Saskatchewan, Canada. Jansen’s large resource is being developed in

stages, with Jansen Stage 1 (JS1) expected to produce 4.15 Mt of potash

per annum once fully ramped up, while Jansen Stage 2 (JS2) is expected to

produce an additional 4.36 Mtpa. Combined output from the Jansen potash

project is expected to be 8.5 Mtpa once JS1 and JS2 are fully ramped up.

There are further potential brownfield expansions of up to 8 Mtpa.

Jansen is a world‑class asset and is expected to have operating costs at the

low end of the cost curve when fully ramped up. BHP holds mineral leases

covering around 8,600 square kilometres in the Saskatchewan potash basin.

Key developments in FY2026

JS1 was 84 per cent complete as at 30 June 2026. During FY2026, we

progressed underground and surface construction activities, including

structural, mechanical and electrical works across key facilities.

In January 2026, BHP completed a detailed review of JS1’s cost and

schedule estimates and confirmed that the total investment estimate for

JS1 has increased to US$8.4 billion (including contingencies) from the

preliminary updated estimated range of US$7.0 billion to US$7.4 billion

(including contingencies) announced in July 2025, reflecting inflationary

and real cost escalation pressures, design development, scope changes

and lower productivity outcomes. BHP has implemented a response plan

to address cost and schedule risks for JS1 which has improved productivity,

strengthened project management and enhanced oversight of execution

contracts. This plan is supporting sustained efficiency gains in the delivery

of JS1 to completion with first production on track for mid‑CY2027.

JS2 was 16 per cent complete as at 30 June 2026, with progress driven

by engineering, procurement activities and civil works.

During FY2026, BHP completed a detailed review of cost and schedule

estimates for JS2. Total investment for JS2 is estimated to be approximately

US$6.9 billion (including contingencies), reflecting a US$2.0 billion increase

from our previous investment cost estimate of US$4.9 billion when JS2

was approved in October 2023. As a result of higher‑than‑expected capital

intensity for the Jansen potash project, including Stages 1 and 2 and

potential future expansions, a non‑cash impairment charge of US$2.3 billion

(before and after tax) has been recognised in FY2026.

Refer to Financial Statements note 3 and 13 for further information

First production from JS2 is expected in late FY2031, following the

previously announced extension of execution timing.

Saskatchewan,

Canada

BHP mineral rights

Jansen potash project

Township

Melville

Regina

Holdfast

Regina

Boulder

Jansen

Young

Burr

Wolverine

Asquith

Saskatoon

Jansen potash

project

4 Assets continued

4.4 Nickel

Western Australia Nickel

Ownership

BHP 100%

Overview

Western Australia Nickel comprises Nickel West and the West Musgrave

project. It transitioned into temporary suspension at the end of the first

half of FY2025 following oversupply in the global nickel market.

Western Australia Nickel holds the majority of tenements hosting

nickel sulphide mineral resources in the Agnew‑Wiluna belt,

Western Australia. The Nickel West asset consists of open‑cut and

underground mines, concentrators, and a smelter and refinery for

downstream processing. The West Musgrave project is a greenfield

nickel and copper project located in the West Musgrave Ranges

of Western Australia. Project construction has been temporarily

suspended at ~30 per cent completion.

Key developments in FY2026

We intend to review the decision to temporarily suspend Western Australia

Nickel by February 2027. As part of this review, BHP is assessing the

potential divestment of the Western Australia Nickel assets. Any decision

to divest will be subject to an assessment against other options, including

continuing temporary suspension, restart or closure.

During the review process, BHP continues to support the workforce

with a people first approach; ensure the ongoing safety and integrity

of the mines and related infrastructure; work closely with Traditional

Owners, governments and suppliers, and invest in local communities

via the A$20 million Community Fund established in 2024; and invest in

exploration to extend the resource life of Western Australia Nickel and

preserve optionality.

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

14 BHP Annual Report 2026

Dear Shareholders,

I am pleased to report on BHP’s FY2026 financial results.

It has been another strong year for your company. Our deliberately

diversified portfolio achieved sector‑leading profit margins

and

significantly higher cash flow. This allowed us to deliver healthy

shareholder returns and invest in future growth.

We continued to drive operational excellence across our world‑class

assets. We maintained strong cost discipline and applied financial rigour

in our decision‑making through our Capital Allocation Framework (CAF).

This combination enabled us to capture the benefits of higher commodity

prices through the year – particularly the record prices in copper.

Your Board has determined a final dividend of 99 US cents. Together with

the dividend of 73 US cents at the half year, this will bring the total dividend

distribution to 172 US cents a share, equivalent to US$8.7 billion, the

highest in four years. Our payout ratio of 66 per cent is above our minimum

50 per cent set under the CAF as we continue to balance investment in

growth with consistent shareholder returns.

Cash generation a highlight

Cash generation was particularly strong in FY2026, with free cash

flow 83 per cent higher at US$9.8 billion. Our underlying EBITDA was

US$33 billion, up 27 per cent and at a margin of almost 60 per cent.

This was supported by a record 70 per cent margin at our copper business.

As a sign of BHP’s resilience and stability, we have now produced an

average margin of over 50 per cent for well over two decades.

Strong cost control was a significant driver of these results. Despite

headwinds such as inflation and higher diesel prices, our unit costs were

on average 6 per cent lower across our major assets. This is testament

to our strong cost management and operational consistency, which is

underpinned by the growing maturity of our BHP Operating System.

We continued to take an active approach to capital management,

securing US$4.3 billion during the year from the Antamina silver streaming

agreement. This illustrates the additional value that can be unlocked from

our portfolio in an innovative and disciplined way. We have realised a

further US$2 billion in FY2027 from a transaction linked to BHP’s share of

WAIO’s power consumption and see potential to unlock up to an additional

~US$3.5 billion through active capital portfolio and asset management.

Based on our strong operational cash flows and the unlocking of

US$4.3 billion of undervalued capital, the health of our balance sheet

is strong. Net debt was below US$9 billion by year end, more than

US$4 billion lower than a year earlier. This is a little below our US$10 billion

to US$20 billion target range showing we have plenty of room to fund our

exciting growth programs around the globe.

Strong performances across all major commodities

Our copper business generated a record US$18 billion of EBITDA

in FY2026, more than half the Group total for the first time. This was

supported by a US$4.5 billion revenue contribution from by‑products from

our copper production such as gold, silver and uranium, a 45 per cent

increase on FY2025. This important revenue stream helped significantly

reduce the cost of copper production at our Escondida and Copper South

Australia operations.

WAIO achieved record production and remained the world’s lowest‑cost

major iron ore producer, and in steelmaking coal, BMA continued to

improve performance, with production up 10 per cent over the last two

years, and the highest stripping volumes in five years.

Funding our exciting growth program,

centred on copper

The strength of our operational performance – and the free cash flow it

generated – supported our capital expenditure and exploration program,

which reached US$10.3 billion in the year. We now expect capex of around

US$11 billion per year, on average, over the medium term, with more than

a half of this allocated to copper growth projects.

When you add on our expected investment commitments in copper

non‑operated joint ventures Vicuña and Resolution, the bulk of our

growth spend is now copper‑focused. We expect this exciting copper

growth program will deliver copper equivalent production growth of an

average 5 per cent

a year between FY2027 and FY2035.

A key feature of our copper growth program is that we expect it to be

self‑funding.

We are already the world’s biggest copper producer, and

these assets generate significant cash flows that we expect will more than

fund all capital needs into the mid‑2030s. This gives us confidence we can

deliver multiple copper growth projects at the same time. With continued

robust cash flow from our iron ore business, it gives us even more

flexibility to fund growth, keep our balance sheet strong and return

cash to shareholders.

Our economic contribution is important

BHP generates important activity in the countries, regions and

communities where we operate. Our economic contribution totalled

US$50.8 billion globally in FY2026. This includes payments to suppliers,

wages to our global workforce, taxes, royalties and other payments to

governments, and dividends to shareholders.

We remain one of the largest corporate taxpayers in both Australia and

Chile. In Australia, we paid US$6.6 billion to governments during the year,

while in Chile, we made US$5.5 billion in government payments. In total,

payments to governments globally reached US$12.4 billion in FY2026.

Our global adjusted corporate tax rate was 36.5 per cent. Once royalties

are included, this increases to 42.9 per cent.

We are proud of the contribution BHP makes to the world around us.

Well positioned to deliver value

As we look to the future, the strength of our balance sheet puts us

in a good position to fund the significant pipeline of growth we have

ahead and have attractive shareholder returns. Our continued focus

on operational excellence and financial discipline allows us to do so.

This is a strong position to be in. I believe BHP can continue to deliver

value for you well into the future.

Thank you.

Chief Financial Officer’s review

1. BHP underlying EBITDA margin (excluding third party products).

Peer data compiled from publicly available information (e.g. company reports).

Peers include: Anglo American, Glencore (excl. Marketing), Rio Tinto, Vale.

2. Represents our current aspiration for BHP Group attributable copper equivalent

production, and not intended to be a projection, forecast or production target.

Refer to Note 2 in OFR 3 Strong growth outlook for more information.

3. At consensus prices

A key feature of our copper growth program

is that we expect it to be self‑funding.³ We are

already the world’s biggest copper producer,

and these assets generate significant cash

flows that we expect will more than fund all

capital needs into the mid‑2030s.”

Vandita Pant

Chief Financial Officer

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and 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

performance. Non‑IFRS financial information is not defined or specified

under the requirements of IFRS, however is derived from the Group’s

Consolidated Financial Statements prepared in accordance with IFRS.

Non‑IFRS financial information is consistent with how management

reviews financial performance of the Group with the Board and the

investment community. OFR 8 ‘Non‑IFRS financial information’ includes

our non‑IFRS financial information and OFR 8.1 ‘Definition and calculation

of non‑IFRS financial information’ outlines why we believe non‑IFRS

financial information is useful and the relevant calculation methodology.

We believe non‑IFRS financial information provides useful information,

however it should not be considered as an indication of, or as a substitute

for, statutory measures as an indicator of actual operating performance

(such as profit or net operating cash flow) or any other measure of financial

performance or position presented in accordance with IFRS, or as a

measure of a company’s profitability, liquidity or financial position.

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

5 Financial review

Summary of financial measures

Year ended 30 June

US$M 2026 2025

Consolidated Income Statement (Financial Statements 1.1)

Revenue 58,760 51,262

Profit/(loss) after taxation 13,026 11,143

Profit/(loss) after taxation attributable to BHP shareholders 9,833 9,019

Dividends per ordinary share – paid during the period (US cents) 133.0 124.0

Dividends per ordinary share – determined in respect of the period (US cents) 172.0 110.0

Basic earnings/(loss) per ordinary share (US cents) 193.6 177.8

Consolidated Balance Sheet (Financial Statements 1.3)

Total assets 121,387 108,790

Net assets 56,321 52,218

Consolidated Cash Flow Statement (Financial Statements 1.4)

Net operating cash flows 21,778 18,692

Capital and exploration and evaluation expenditure 10,257 9,794

Other financial information (OFR 8)

Net debt 8,694 12,924

Underlying attributable profit 13,204 10,157

Underlying EBITDA 32,947 25,978

Underlying basic earnings per share (US cents) 260.0 200.2

Underlying return on capital employed (per cent) 26.1 20.6

Underlying attributable profit

1,3

US$ billion

Underlying EBITDA

2,3

US$ billion

Net operating cash flows

US$ billion

Underlying return on

capital employed

1,3

Per cent

FY2022 FY2023 FY2024 FY2025 FY2026

23.8

13.4 13.7

10.2

13.2

40.6

28.0

29.0

26.0

32.9

FY2022 FY2023 FY2024 FY2025 FY2026

32.2

18.7

20.7

18.7

21.8

FY2022 FY2023 FY2024 FY2025 FY2026

48.7

28.8

27.2

20.6

26.1

FY2022 FY2023 FY2024 FY2025 FY2026

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 8.

16 BHP Annual Report 2026

Reconciling our financial results to our key performance indicators

Profit Earnings Cash Returns

Measure US$M US$M US$M US$M

Profit after

taxation 13,026 Profit after taxation 13,026

Net operating

cash flows 21,778

Profit after

taxation 13,026

Made

up of

Profit after

taxation

Profit after taxation Cash generated by the

Group’s consolidated

operations, after dividends

received, interest,

proceeds and settlements

of cash management

related instruments,

taxation and royalty‑related

taxation. It excludes cash

flows relating to investing

and financing activities.

Profit after taxation

Adjusted

for

Exceptional items

before taxation

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

3,371

–

3,371

(3,193)

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

3,371

–

6,201

106

855

9,388

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

52,218

12,924

56,321

8,694

3,371

855

(259)

16,993

65,142

65,015

65,079

To reach

our KPIs

Underlying

attributable profit 13,204

Underlying

EBITDA 32,947

Net operating

cash flows 21,778

Underlying return on

capital employed 26.1%

Why do

we use

it?

Underlying attributable profit

allows the comparability of

underlying financial performance

by excluding the impacts of

exceptional items.

Underlying EBITDA is used to

help assess current operational

profitability excluding the impacts

of sunk costs (i.e. depreciation

from initial investment). It is

a measure that management

uses internally to assess the

performance of the Group’s

segments and make decisions on

the allocation of resources.

Net operating cash flows

provide insights into how we are

managing costs and increasing

productivity across BHP.

Underlying return on capital employed

is an indicator of the Group’s capital

efficiency. It is provided on an underlying

basis to allow comparability of underlying

financial performance by excluding the

impacts of exceptional items.

5.3 Financial results

The following table provides more information on the revenue and expenses of the Group in FY2026.

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Revenue

58,760 51,262 55,658

Other income 514 368 1,285

Expenses excluding net finance costs (35,979) (32,319) (36,750)

Profit/(loss) from equity accounted investments, related impairments and expenses 574 153 (2,656)

Profit from operations 23,869 19,464 17,537

Net finance costs

(1,455) (1,111) (1,489)

Total taxation expense (9,388) (7,210) (6,447)

Profit after taxation 13,026 11,143 9,601

Attributable to non‑controlling interests 3,193 2,124 1,704

Attributable to BHP shareholders 9,833 9,019 7,8 97

1. Includes the sale of third‑party products.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

Profit after taxation attributable to BHP shareholders of US$9.8 billion

includes an exceptional loss of US$3.4 billion and compares to

US$9.0 billion, including an exceptional loss of US$1.1 billion in the

prior period. The FY2026 exceptional loss comprises a US$2.3 billion

impairment charge related to the Jansen project and US$1.1 billion relating

to Samarco dam failure impacts.

The FY2025 exceptional loss comprised US$0.9 billion relating to Samarco

dam failure impacts and US$0.2 billion associated with the transition of

Western Australia Nickel (WAN) into temporary suspension.

For more information on Exceptional items refer to

Financial Statements note 3 ‘Exceptional items’

Revenue of US$58.8 billion increased by US$7.5 billion, or 15 per cent

from FY2025. Revenue increased primarily due to higher average realised

prices for copper, iron ore and steelmaking coal, partially offset by lower

sales volumes at Escondida, driven by planned lower concentrator feed

grade, and at Spence, due to ongoing challenges processing complex

ore at the concentrator and the planned decline in stacked feed grade

at the cathode plant.

For information on our average realised prices and

production of our commodities refer to OFR 7

Total expenses (excluding net finance costs) increased US$3.7 billion

(11 per cent) to US$36.0 billion in FY2026, including a US$2.3 billion

Jansen project impairment. Higher third‑party commodity purchases

Principal factors that affect Underlying EBITDA

The following table and commentary describe the impact of the principal factors

that affected Underlying EBITDA for FY2026 compared with FY2025.

US$M

Year ended 30 June 2025 25,978

Net price impact:

Change in sales prices 7,710 Higher average realised prices for copper, iron ore and steelmaking coal.

Price‑linked costs (399) Higher copper, iron ore and coal royalties in line with higher prices.

7,311

Change in volumes (1,167) Escondida record material mined and concentrator throughput, along with improved recoveries driven

by operational enhancements more than offset by lower volumes at Escondida, Spence and Copper SA,

primarily due to planned grade decline and ongoing challenges with processing complex ore at Spence.

Partially offset by higher volumes at NSWEC as a result of increased bypass coal due to mine

sequencing and BMA strong operational performance at open‑cut operations delivering the highest

stripping volumes in five years and improved wet weather operating performance.

WAIO delivered record production as a result of strong operational performance across the supply chain.

Change in controllable cash costs

Operating cash costs 1,118 Escondida, Spence and Copper SA lower costs driven by inventory movements due to timing of

shipments. Lower Escondida costs also reflect non‑recurrence of one‑off labour‑related costs in FY2025.

WAIO costs were lower due to net favourable inventory movements primarily driven by strong operational

performance at the mines, partially offset by a drawdown of inventory at the Central Pilbara Hub.

BMA and NSWEC costs were lower due to favourable net inventory movements reflecting continued

focus on strengthening supply chain stability at BMA and prior period impacts of reduced truck

availability and unfavourable weather conditions at NSWEC.

Exploration and business

development

1,191

Change in other costs:

Exchange rates (798) Impact of movements in the Australian dollar and Chilean peso against the US dollar.

Inflation on costs (675) Impact of inflation on the Group’s cost base.

Fuel, energy, and consumable

price movements

(209) Predominantly higher diesel prices.

Non‑cash 96 Higher stripping capitalisation at Escondida reflecting phase of mine plan.

(1,586)

Change in other:

Asset sales 100

Ceased and sold operations 476 Primarily driven by transition of WAN into temporary suspension in December 2024.

Other 644 Includes higher profits from Antamina driven by increased copper prices.

Year ended 30 June 2026 32,947

1. For information on the method of calculation of the principal factors that affect Underlying EBITDA, refer to OFR 8.2.

(US$1.2 billion) driven by increased copper prices and higher purchase

volumes at Antamina, depreciation from newly capitalised assets

(US$0.7 billion), and inflationary impacts on wages, salaries and

raw materials (US$0.6 billion combined) were the primary drivers.

These increases were partially offset by favourable net inventory

movements of US$1.5 billion.

Profit from equity accounted investments, related impairments and

expenses increased US$0.4 billion to US$0.6 billion, driven by higher

copper prices and production at Antamina.

For more information on impairment charges refer to Financial

Statements note 3 ‘Exceptional items’ and Financial

Statements note 13 ‘Impairment of non-current assets’

respectively

Net finance costs of US$1.5 billion increased by US$0.3 billion or

31 per cent from FY2025 primarily due to the impact of inflation on the

unwind of discounting expense associated with provisions.

For more information on net finance costs refer to

Financial Statements note 23 ‘Net finance costs’

Total taxation expense of US$9.4 billion increased by US$2.2 billion,

or 30 per cent from FY2025 primarily reflecting tax on increased profits

driven by higher commodity prices.

For more information on income tax expense refer to

Financial Statements note 6 ‘Income tax expense’

5 Financial review continued

18 BHP Annual Report 2026

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

2026

US$M

2025

US$M

2024

US$M

Net operating cash flows 21,778 18,692 20,665

Net investing cash flows (12,011) (13,350) (8,762)

Net financing cash flows (3,280) (5,971) (11,669)

Net increase/(decrease) in cash and cash equivalents 6,487 (629) 234

Net operating cash inflows of US$21.8 billion increased by US$3.1 billion. This is primarily due to higher average realised copper, iron ore and

steelmaking coal prices generating higher profits, partially offset by unfavourable foreign exchange movements, inflationary impacts on the Group’s

cost base and working capital movements across the Group.

Net investing cash outflows of US$12.0 billion decreased by US$1.3 billion. This decrease is primarily due to the non‑recurrence of the US$2.1 billion

FY2025 acquisition of a 50 per cent share in the Vicuña joint venture, partially offset by higher capital expenditure of US$0.5 billion and proceeds on the

divestment of Carajás of US$0.2 billion.

For more information on the acquisition of Vicuña refer to Financial Statements note 29 ‘Investments accounted for using the equity method’

Net financing cash outflows of US$3.3 billion decreased by US$2.7 billion reflecting proceeds of US$4.3 billion from the Antamina silver streaming

agreement with Wheaton Precious Metals International Ltd, partially offset by higher dividends paid of US$0.8 billion, and higher repayments of interest

bearing liabilities of US$0.7 billion.

For more information refer to Financial Statements note 21 ‘Net debt’

Underlying return on capital employed (ROCE) of 26.1 per cent increased by 5.5 percentage points (FY2025: 6.6 percentage point decrease) primarily

due to the increase in profit after taxation excluding net finance costs and exceptional items of US$4.3 billion, which was mostly driven by higher realised

commodity prices during FY2026. This was partially offset by higher average capital employed.

For more information on ROCE refer to OFR 8

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 FY2026, Interest bearing liabilities were US$27.1 billion (FY2025: US$24.5 billion) and Cash and cash equivalents were US$18.5 billion

(FY2025: US$11.9 billion), with Net debt of US$8.7 billion (FY2025: US$12.9 billion). The decrease in Net debt of US$4.2 billion is primarily due to

US$21.8 billion operating cash flows combined with US$4.3 billion proceeds from streaming arrangements, partially offset by US$10.3 billion capital

and exploration expenditure, US$9.1 billion of dividend payments and US$2.0 billion of Samarco settlement obligation payments. Gearing, which is

the ratio of Net debt to Net debt plus Net assets, was 13.4 per cent at 30 June 2026, compared with 19.8 per cent at 30 June 2025.

For more information on Net debt and gearing refer to Financial Statements note 21 ‘Net debt’ and OFR 8

Gross debt increased by US$2.6 billion to US$27.1 billion as at 30 June 2026. The increase reflects the issuance of €1.4 billion Euro bonds in August 2025 and

US$1.5 billion US bonds in September 2025 as well as entering a US$850 million five‑year bank loan in January 2026, offset by the repayment of US$1.0 billion

of 4.875 per cent USD senior notes that matured in February 2026 and US$323 million of 6.42 per cent USD senior notes that matured in March 2026.

At the subsidiary level, Escondida repaid US$40 million of debt.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

The following table expands on the net debt, to provide more information on the cash and non‑cash movements in FY2026.

Year ended 30 June

2026

US$M

2025

US$M

Net debt at the beginning of the period (12,924) (9,120)

Net operating cash flows 21,778 18,692

Net investing cash flows (12,011) (13,350)

Net financing cash flows (3,280) (5,971)

Net increase/(decrease) in cash and cash equivalents 6,487 (629)

Carrying value of interest bearing liability net proceeds (1,594) (2,454)

Carrying value of debt related instruments settlements 22 147

Carrying value of cash management related instruments proceeds (96) (195)

Fair value change on hedged loans

367 (263)

Fair value change on hedged derivatives

(292) 290

Foreign currency exchange rate changes on cash and cash equivalents 152 24

Lease additions (excluding leases associated with index‑linked freight contracts) (638) (547)

Other (178) (177)

Non‑cash movements (589) (673)

Net debt at the end of the period (8,694) (12,924)

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’.

Funding sources

In August 2025, the Group issued two tranches of EUR bonds comprising €800 million 3.18 per cent bonds due CY2031 and €600 million 3.643 per cent

bonds due CY2035. The EUR bonds were issued by BHP Billiton Finance Limited, a wholly‑owned finance subsidiary of BHP Group Limited, and are fully

and unconditionally guaranteed by BHP Group Limited.

In September 2025, the Group issued two tranches of USD bonds comprising US$500 million 5.00 per cent bonds due CY2036 and US$1.0 billion

5.750 per cent bonds due CY2055. The USD bonds were issued by BHP Billiton Finance (USA) Limited, a wholly‑owned finance subsidiary of BHP Group

Limited, and are fully and unconditionally guaranteed by BHP Group Limited.

In January 2026, the Group entered into a US$850 million five‑year term loan. The borrower is BHP Billiton Finance Limited, a wholly‑owned subsidiary of

BHP Group Limited, and is fully and unconditionally guaranteed by BHP Group Limited.

Our Group‑level borrowing facilities are not subject to financial covenants. Certain specific financing facilities in relation to specific assets are the subject

of financial covenants that vary from facility to facility, but this would be considered normal for such facilities.

In addition to the Group’s uncommitted debt issuance programs, we hold the following committed standby facility:

Facility

available

2026

US$M

Drawn

2026

US$M

Undrawn

2026

US$M

Facility

available

2025

US$M

Drawn

2025

US$M

Undrawn

2025

US$M

Revolving credit facility

5,500 – 5,500 5,500 – 5,500

Total financing facility 5,500 – 5,500 5,500 – 5,500

1. During the year we completed a one‑year extension of the facility which is now due to mature on 10 July 2031. 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$5.5 billion. As at 30 June 2026, US$ nil

commercial paper was drawn (FY2025: US$ nil), therefore US$5.5 billion of committed facility was available to use (FY2025: 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 margin is 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 2026 is provided in Financial Statements note 11 ‘Property, plant and

equipment’, Financial Statements note 22 ‘Leases’ and Financial Statements note 32 ‘Contingent liabilities’, respectively

In our opinion, working capital is sufficient for our present requirements. The Group’s Moody’s credit rating has remained at A1/P‑1 outlook stable

(long‑term/short‑term). The Group’s Fitch credit rating has remained at A/F1 outlook stable (long‑term/short‑term). Credit ratings are forward‑looking

opinions on credit risk. Moody’s and Fitch’s credit ratings express the opinion of each agency on the ability and willingness of BHP to meet its financial

obligations in full and on time. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or

withdrawal at any time by an assigning rating agency. Any credit rating should be evaluated independently of any other information.

Dividends

Our dividend policy provides for a minimum 50 per cent payout of Underlying attributable profit (Continuing operations) at every reporting period.

The minimum dividend payment for the second half of FY2026 was US$0.69 per share. The Board determined to pay an additional amount of

US$0.30 per share, taking the final dividend to US$0.99 per share (US$5.0 billion). In total, cash dividends of US$8.7 billion (US$1.72 per share)

have been determined for FY2026.

5 Financial review continued

20 BHP Annual Report 2026

Our Risk Framework

1. We do not manage risks and opportunities for non‑operated joint ventures, as they are independently managed and operated. However, we do oversee and manage the financial, legal and

reputational risks to BHP related to its investments in non‑operated joint ventures.

2. The design of our Risk Framework is informed by the International Standard for Risk Management (ISO 31000:2018). Consistent with this International Standard, our mandatory minimum

performance requirements for risk management and associated tools refer to ‘risk’ as comprising, and addressing, both threats and opportunities; however, for better clarity in this OFR,

we use the term ‘risks’ to refer only to ‘threats’ (as distinct from opportunities) and refer expressly to opportunities where appropriate.

Risk approach

BHP uses the ‘three

lines model’ to

define the role of

different teams across

the organisation in

managing risk.

Risk appetite

Our risk appetite is approved by the Board and provides qualitative

guidance to management on risk taking in pursuit of our strategy –

what we encourage, discourage and do not tolerate – with associated

quantitative metrics to support monitoring. It informs the design of our

risk process and is integrated into investment and planning processes.

First line

Our people are

required to follow

standards and use

the risk process to

identify, own and

manage risk within

their day‑to‑day

activities.

Risk process

Our risk process is embedded in business activities by setting out the

steps everyone across BHP is required to take to manage risks:

– Identify risks and opportunities.

– Assess potential impacts and likelihood using internationally‑recognised

techniques, to enable us to determine which are material to BHP.

– Treat each material risk using preventative and mitigating controls.

Controls are also implemented to enable or enhance material opportunities.

– Monitor and review material risks and critical controls at least annually

to evaluate performance. Additional governance and oversight applies

for material risks that are outside our target level of risk.

– Communicate each material risk using BHP’s risk management

system to support management and oversight.

Second line

Our Functional

teams and Centres

of Excellence are

responsible for setting

standards, building

capability, providing

oversight and driving

improvement.

Risk architecture

Our risk architecture helps classify the universe of risks to which BHP is

exposed. It uses categories to organise and support management of our

material risks. These are aligned with BHP’s structure, linking certain

types of risks with our Functional teams and Centres of Excellence to

support appropriate organisational oversight.

Key risk indicators (KRIs)

We assign KRIs to certain risk categories that are considered a priority

to BHP given their importance or potential outcomes, to help monitor

performance. This supports decision‑making and oversight by providing

management and the Board with information about financial and

non‑financial risk exposure at a Group level.

Third line

Our Internal Audit team provide independent and objective assurance to the Board over the effectiveness

of Group‑wide governance, risk management and internal control processes (including risk culture).

Our Internal Audit team is also led by our Chief Risk and Audit Officer. Independence of our Internal

Audit team is maintained through appropriate safeguards.

6 Risk

How we manage risk

Risk management helps us to protect and create value. It’s central to the achievement of our purpose and strategic objectives.

We believe that effective risk management requires a consolidated view of BHP’s full exposure. We therefore apply a single framework (known as the

Risk Framework) to all risks and opportunities

. This supports the prioritisation of activity across our business. For more information about BHP’s risk

management governance structure, refer to the Corporate Governance Statement.

Risk governance

Challenges and

holds management

to account

Shares information

for oversight and

approvals

Risk intelligence

Risk reporting

Our Risk team and other teams

provide the Board, RAC, Sustainability

Committee and senior management with

insights on risk management across

BHP – these include reports that cover:

– Risk appetite

– Strategic and emerging risks

– Priority and other relevant

material risks

The Board, RAC and Sustainability

Committee also receive reports from

other teams 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

– Sustainability reports,

compliance reports and the Chief

Executive Officer’s report

Risk insights dashboard

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.

Board

– Reviews and monitors the

effectiveness of the Group’s systems

of financial and non‑financial risk

management and internal control

– Approves risk appetite and reviews

risk appetite performance on an

annual basis

– Reviews strategic and emerging

risks on an annual basis

Executive

Leadership Team

– Maintains oversight

of the Group’s risk

environment and

performance

– Monitors capability and

resources maintained to

effectively manage risks

Risk and Audit

Committee (RAC) and

Sustainability Committee

– Assist the Board with risk

management oversight

– Review BHP’s priority and

other relevant material risks,

and risk management and risk

appetite performance, at least

twice annually

Risk team

– Defines and governs

the Risk Framework

– Led by our Chief

Risk and Audit

Officer

Risk culture

Our approach to risk management is

underpinned by our risk culture, which

supports decision‑making in line with BHP’s

values, objectives and risk appetite. We

use a common foundation across BHP to

develop the tools and capabilities needed

to understand, monitor and manage our

risk culture. This includes undertaking risk

culture assessments as part of our internal

audit program.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

6 Risk continued

Operational risks

Operational risks encompass risks associated with events

that may impede operational continuity, undermine our

business resilience or result in significant adverse safety

or other impacts to our people, communities, the environment

or our ability to generate returns. Managing operational risks

is essential to sustaining safe, reliable and resilient operations

across our global portfolio and delivering on our strategy.

FY2026 insights

During FY2026, our overall exposure to operational risks remained

broadly stable, excluding risks stemming from elevated geopolitical

risk factors. External conditions have elevated certain risk settings,

including the evolving cybersecurity threat landscape which continues

to increase, and risks associated with the conflicts in the Middle East,

including the potential for disruptions to supply chains. These and other

operational risks continue to influence operational risk complexity and

inform our management approach.

Potential opportunities

The management of operational risks also presents opportunities

to strengthen our business’ resilience, stakeholder trust, talent

attraction and access to capital. Further investments in automation,

predictive analytics and advanced cybersecurity solutions may help

to reduce our people’s exposure to higher‑risk activities and enhance

productivity. Our focus on innovation and collaboration across

industry standards supports safer operations and improved reliability.

Risk factor: Operational events

Our activities inherently involve a broad range of operational event

risks that may harm our people and assets, communities, other

stakeholders and/or the environment. Effective management

of operational event risks is critical to maintaining operational

continuity and performance, and our licence to operate.

Potential risks

– Transportation events (such as aircraft, vehicle, rail, vessel, shipping or

other incidents) during the movement of our people, supplies or products.

These events and any resulting spillages or hydrocarbon releases could

occur in (or result in greater impact if they occur in) areas of cultural

significance or remote and environmentally sensitive areas (including

waterways), such as those in Australia, South America, Asia, the United

States and Canada.

– Unplanned fire or explosion events on the surface or underground.

– Geotechnical instability events, such as failures of underground

excavations, large wall instabilities in open‑pit mines, or interactions

between mining activities and community infrastructure or natural

systems. This includes at our operated and legacy mine sites and

projects in Australia, Chile, the United States and Canada.

– Hazardous materials containment failures, or other occupational

or process safety events or workplace exposures.

– Extreme weather and natural hazards, including intense storms, drought,

flooding, landslides, wildfire and other severe weather patterns such as

extreme heat or cold that disrupt operational continuity. Many of our assets

are located in locations that experience extreme weather. For example,

as has been the case in prior years, tropical storms in FY2026 impacted

production at BMA and WAIO.

– Increasing mine complexity, grade variability and dependence on

specialised technical expertise, including mining in locations where

or using techniques in which we have relatively less experience.

These factors may give rise to resource development‑related risks,

including incorrect resource definitions, suboptimal mine planning and

inadequate operational water management, and may be more relevant

for mines that have declining grades or require techniques with which

we are less familiar.

Risk factors

Our risk factors are described below and may

occur as a result of our activities globally.

The activities of our non‑operated joint ventures, third parties engaged

by BHP and stakeholders through our value chain may also give rise to

financial, legal and reputational risks to BHP.

These risks, individually or collectively, could threaten our strategy,

business model, future performance, solvency or liquidity and

reputation. They could also materially and adversely affect the health

and safety of our people or members of the public, the environment,

communities, or the interests of our partners and stakeholders,

which could in each case lead to litigation, regulatory investigations

or enforcement actions (including class actions or actions arising

from contractual, legacy or other liabilities associated with divested

assets), or a loss of partner, stakeholder and/or investor confidence.

References to ‘financial performance’ include our share price, financial

condition and liquidity, which may be adversely affected by factors

such as decreased profitability or increased operating costs, capital

allocation, remediation costs or contingent liabilities, or insufficient

insurance coverage.

We group our risk factors under three risk themes: operational risks,

strategic risks and sustainability‑related risks. Some risk factors

disclosed in our FY2025 Annual Report have been reframed to align with

these themes, while our previous risk factors on low‑carbon transition

and business resilience are now discussed throughout other risk factors

to better reflect their interconnectivity with BHP’s broader risk profile.

The potential risks, impacts to BHP and management’s approach for

each risk factor below are described at a high level only. The potential

opportunities for our risk themes are also not exhaustive. BHP may

also be exposed to risks that we currently believe to be immaterial, or

which are newly developing or changing such that there is not enough

information to assess their materiality or applicability to our business,

in each case which may materially affect our business if they occur.

BHP does not manage non‑operated joint ventures or third parties,

but remains exposed to risks from the activities of those parties.

BHP seeks to oversee and manage the financial, legal and reputational

risks to BHP related to its investments in non‑operated joint ventures

and relationships with third parties.

22 BHP Annual Report 2026

– Talent attraction and retention challenges, including those associated

with an ageing workforce, the remote locations of our operations,

declining enrolment in mining‑related fields of study and increasing

competition for skilled professionals. These factors could reduce

our ability to manage operational event risks (and our other risk

factors) effectively.

– Failure by suppliers, contractors, joint venture partners or our

non‑operated joint ventures and/or their operators to perform existing

contracts or obligations (including due to insolvency, supply chain

disruptions or other geopolitical or macroeconomic factors), such as

construction of large projects or supply of key inputs to our business

(for example, consumables for our mining equipment). For example,

heightened geopolitical tensions, particularly in the Middle East, have

started to impact supply of ammonia, certain construction materials,

diesel and aviation fuel. A sharp increase in oil and energy prices

and disruptions to global fuel supply chains have resulted in, and

may continue to result in, high volatility in global energy markets,

concerns about energy supplies and increased potential for government

intervention in supply chains.

– Other natural events (such as earthquakes, tsunamis, solar flares and

pandemics) or regional or local adverse events (such as social unrest,

strikes, work stoppages, labour disruptions, social activism, terrorism

and bomb threats). For example, protected industrial action took place

at WAIO during FY2026 following reforms to Australia’s industrial

relations framework.

Potential impacts to BHP

– Harm to our or other people, such as serious injuries, loss of income,

illness or fatalities.

– Damage to or loss of infrastructure, equipment and other physical

assets, resulting in reduced production or delays.

– Adverse impacts on communities and Indigenous peoples, including

loss of amenities, livelihood or culture.

– Environmental impacts, such as contamination, habitat loss or other

nature‑related consequences.

– Inefficiencies in developing reserves, impacting lifecycle value of

our resources.

– Reduced financial performance, including due to operational delays or

stoppages, costs associated with remediation, recovery or regulatory

compliance, or compensation.

– Regulatory enforcement action or litigation.

– Reputational damage and erosion of stakeholder trust impacting

business relationships and our ability to attract and retain talent.

Management’s approach

We continue to focus on improving our management of operational

event risks, including through the planning, design, construction and

maintenance of our mines, supported by mandatory minimum performance

requirements for safety and risk management. Our approach includes

implementing monitoring systems and other technical controls and

emergency response protocols, as well as using technology to reduce

exposure of our people to high‑risk activities. We also collaborate across

industry and with technology partners to strengthen resilience and

continuously improve operational reliability.

Risk factor: Key infrastructure failure

We rely on various equipment, infrastructure and transportation

routes to support the safe and reliable operation of our assets

and the delivery of our products to customers.

This includes tailings storage facilities, water and power supply, processing

plants, rail networks, ports and other logistics infrastructure, much of

which is large scale, long life and, in some cases, shared with third

parties. Failure, damage or prolonged unavailability of key infrastructure or

transportation routes, including due to ageing assets, operational events,

third‑party disruption or climate‑related physical risk impacts, could result

in harm to people and the environment, production and sales disruptions,

and increased costs. Additionally, insurance may not be available on

commercially reasonable terms or may not fully cover losses from risks

to our business, including those posed by our other risk factors.

Potential risks

– Failure of a water or tailings storage facility.

– Failure of our physical fixed plant equipment and infrastructure, including

business critical equipment and infrastructure. For example, structural,

civil, mechanical or electrical defects may occur due to corrosion, fatigue

cracking or other causes and lead to failure of production critical assets

including our concentrators, ship loaders, car dumpers and ore reclaimers.

– Unavailability of shared infrastructure (such as railway lines or ports),

equipment, materials or transportation routes, at all or at commercial

prices, including due to geopolitical events or operational events

experienced by BHP or third parties. For example, a blockage of the

Port Hedland channel, which our WAIO asset relies on to deliver iron

ore to our customers, may occur due to a grounded vessel.

– Key infrastructure failure or other events driven by climate‑related

physical risk impacts. This includes acute risks that are event driven

(including increased frequency and/or 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.

Potential impacts to BHP

– Harm to our or other people, such as serious injuries, illness or fatalities.

– Reduced production or delays, or an inability to deliver our products

to our customers.

– Adverse impacts on communities and Indigenous peoples, including

loss of amenities, livelihood or culture.

– Environmental impacts, such as contamination, habitat loss or other

nature‑related consequences.

– Reduced financial performance, including due to costs associated

with remediation, recovery or regulatory compliance.

– Regulatory enforcement action or litigation.

– Reputational damage and erosion of stakeholder trust impacting

business relationships and our ability to attract and retain talent.

Management’s approach

We focus on preventing and mitigating failures through the planning, design,

construction, operation, maintenance and monitoring of key infrastructure,

as well as working with third parties to ensure continued access to shared

infrastructure and transportation routes. Our approach includes our

mandatory minimum performance requirements for asset integrity and

water and tailings storage facilities, supported by inspections, technical

reviews, audits and other assurance activities, emergency preparedness

and response plans, and a framework for business continuity plans. We also

incorporate consideration of future climate projections into risks associated

with key infrastructure failure through ongoing assessment of climate‑related

physical risks. For more information on how climate‑related physical

risks are assessed and our approach to integration into asset design

and management refer to Sustainability Report 3 Strategy for managing

climate‑related risks and opportunities.

Risk factor: Cybersecurity

Our business and operational processes are increasingly

dependent on the technology we use to support delivery of our

current and future operational, financial and social objectives.

This growing dependence correspondingly elevates BHP’s exposure

to cybersecurity risks, which continue to evolve in frequency, scale and

sophistication. A cybersecurity incident could lead to loss or disclosure

of commercial or personal data, as well as physical safety, infrastructure

or environmental impacts, or production or commercial disruptions

(for example, due to a cybersecurity incident resulting in malfunction or

shutdown of equipment). We have experienced cybersecurity threats in

the past and may do so in the future. As our information and operational

systems expand, and cybersecurity incidents experienced by businesses

globally increase, our exposure to these risks may continue to grow.

Some of our partners and suppliers have also experienced cybersecurity

incidents, as evidenced by public disclosures, and may continue

to experience similar threats in the future, underlining the need for

effective cybersecurity resilience across our value chain.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

6 Risk continued

Strategic risks

Strategic risks encompass risks associated with changes in

global trade, longer‑term economic trends, geopolitical shifts

and evolving stakeholder expectations, and influence our

ability to position and shape our portfolio. Strategic risks

may impact our ability to deliver on our strategy, optimise our

portfolio and access key markets.

FY2026 insights

During FY2026, our exposure to strategic risks increased slightly as

our operating environment continued to be shaped by global dynamics.

Geopolitical volatility, including US–China trade tensions and

escalating conflicts and instability in parts of the Middle East, increased

uncertainty across global markets. These dynamics heighten the

risk of unilateral sovereign actions, trade and investment restrictions,

and policy intervention, reinforcing value‑chain vulnerabilities and

contributing to commodity price volatility. Tariffs, trade restrictions

and weather‑related disruptions contributed to market volatility,

while evolution of steel and iron ore markets may continue to do so.

These factors, as well as energy transition policies, resource security

considerations and evolving ESG expectations, continued to influence

our portfolio decisions.

Potential opportunities

The global landscape also presents opportunities and our current

portfolio of quality assets in attractive commodities positions us

well to capitalise on these. By monitoring macroeconomic, societal,

geopolitical, climate and policy developments and trends, we may

be able to identify opportunities to execute our strategy in ways that

enhance value and provide a competitive advantage. This could

include opportunities to strengthen our portfolio, accelerate our

growth through organic and inorganic options, exit non‑core or

declining assets or commodities, reallocate capital, enhance existing

or develop new products, enter into new markets or expand our

presence in existing markets, or develop strategic partnerships.

Risk factor: Portfolio strategy

In pursuit of our strategy, we target a portfolio of quality assets in

attractive commodities and relevant growth options. We review

and adjust our strategy and make changes to our portfolio.

Examples of recent portfolio actions include our acquisition of OZ Minerals

in FY2023 and the formation of our non‑operated joint venture, Vicuña

Corp, in FY2025. Our ability to identify shifts in commodity attractiveness,

execute timely acquisitions and divestments, and mature organic growth

options is critical to pursuing our portfolio strategy, and failure to do so

could result in a reduced ability to achieve expected commercial objectives

from our assets or investments. Delivery of major projects and growth

options is important to our strategy and long‑term financial performance.

Large projects are complex, capital intensive and often depend on

government approvals, partner alignment, long‑lead infrastructure and the

timely availability of labour, equipment, energy and water. Optimising our

portfolio also increasingly relies on our ability to adopt and scale advanced

technologies, including AI, automation and lower greenhouse gas (GHG)

emissions technologies, to enable accurate insights, efficient use of capital

and improved decision‑making.

Potential risks

– Failure to identify material external and internal signals early, translate

them into strategic insight and adjust our strategy. This includes potential

changes in the geopolitical landscape, commodity attractiveness and

missed entry or commodity exit opportunities, including as a result of

shifts in customer demand, technological change, energy transition

dynamics, trade policy or regulatory developments.

– Commodity price volatility, which has historically been, and may

continue to be, subject to significant fluctuation due to global economic

and geopolitical factors, including trade restrictions and tariffs,

regional unrest, industrial activity, technological change (including new

technologies within the steel sector), product substitution, interest rate

movements and exchange rate fluctuations. Government intervention

in critical mineral markets, driven by national security and supply‑chain

resilience considerations, such as strategic stockpiling, export controls or

state‑backed investment, may also distort markets and increase volatility.

Potential risks

– Cybersecurity incident on our information or operational

technology systems.

– Cybersecurity incident on our third‑party partners and service

providers, such as our cloud service providers or vendors with

authorised access to our systems.

– Evolving cybersecurity risks, including the use of artificial intelligence

(AI) and machine learning by attackers to enable sophisticated

impersonation, phishing, social engineering and deepfake attacks,

and risks arising from compromised, misused or autonomous AI

systems, including frontier large language models and AI agents.

Advanced AI technologies may increase the speed, scale and

sophistication of cyber‑attacks through the exploitation of previously

unknown vulnerabilities and the rapid identification and combination

of weaknesses and misconfigurations that are increasingly difficult to

predict and detect.

Potential impacts to BHP

– Operational or key infrastructure failure events, including those that

result in harm to people or damage to equipment, infrastructure or

the environment.

– Reduced production or commercial disruption, including an inability

to process or ship our products.

– Corruption or loss of system data.

– Unintended loss or disclosure of commercial or personal information,

including market sensitive information or health information.

– Misappropriation or loss of funds.

– Reduced financial performance, including due to liability or

termination of our contracts with third parties.

– Government investigations, regulatory enforcement action

or litigation (including class actions), and associated fines

and penalties.

– Reputational damage and erosion of stakeholder trust impacting

business relationships and our ability to attract and retain talent.

Management’s approach

We continue to employ measures designed to protect against,

detect and respond to cybersecurity incidents. We keep abreast

of potential cybersecurity risks and new methodologies to combat

them. We regularly assess and update critical cybersecurity controls

and their effectiveness in line with the evolving threat landscape.

Collaboration with partners, vendors, government agencies and

industry groups also supports us to respond to the fast‑changing

cybersecurity threat landscape.

For more information on our operational risks refer to OFR 1, OFR 9.5,

OFR 9.10, Sustainability Report and Additional Information 9.8

24 BHP Annual Report 2026

– 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. These risks may amplify

this and our other risk factors, while the inherent uncertainty of potential

societal responses to climate change may create a systemic risk to the

global economy and our business.

– Failure to attract and retain capable talent required for strategy design

or execution, including in a competitive global labour market and for

specialised skills required for major project delivery.

– Failure to optimise our portfolio through effective and efficient

acquisitions, exploration, large project delivery, mergers, divestments,

monetisation transactions or expansion of existing or acquired assets

(including due to sub‑optimal capital prioritisation), particularly in periods

of heightened commodity price volatility, cost inflation or capital market

uncertainty and geopolitical tensions. Where our projects and operations

are developed and operated through joint ventures or other arrangements

with third parties, their success and timing depend on a number of factors

that may be outside our control, including our partners’ interests and

objectives, financial resources and agreement on major decisions.

– Failure to achieve expected commercial and related 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). This risk could be

exacerbated by impacts from factors such as climate‑related transition risks

(including commercial challenges associated with adopting lower GHG

emissions technologies), increased input prices (such as diesel), supply

chain disruptions (including as a result of climate‑related physical risks),

labour shortages or cost increases, inflationary pressures and unfavourable

exchange rates. For more information on BHP’s climate‑related transition

risks refer to Sustainability Report.

– Failure to meet stakeholder expectations (including in key copper

and iron ore regions) that affect long‑term access to land, project

sequencing, asset life‑extension decisions or future growth options.

This includes expectations relating to water stewardship, Traditional

Owner and Indigenous peoples’ rights, cultural heritage and closure.

– Failure to deliver major projects and growth options on expected cost,

schedule, production, quality or return assumptions.

– Renegotiation or nullification of permits, inability to secure new

permits or approvals, increased royalties (such as the Queensland

Government’s increase in coal royalty rates in June 2022), fiscal or

monetary policy instability or legislative changes.

– Industrial relations legislative reforms in Australia, including ‘Same

Job, Same Pay’, ‘Secure Jobs, Better Pay’ and related reforms, have

increased and may continue to increase labour costs, bargaining

activity, union access, compliance obligations and uncertainty for BHP

and certain contracting partners. These reforms may affect workforce

flexibility, contractor arrangements, enterprise bargaining outcomes,

project execution, productivity, operating costs and the risk of protected

industrial action or other labour disruption.

– Partnering with companies that are, or undertake activities that 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.

– Failure to effectively adopt and scale advanced technologies in a

timely manner, including AI, automation, decarbonisation solutions

and digital platforms. Additionally, AI systems could be deployed or

used without appropriate governance or human oversight. These risks

could be exacerbated by inadequate investment in infrastructure,

quality governed data and skilled talent, as well as evolving regulatory

requirements, cybersecurity threats and considerations related to the

responsible, secure and ethical deployment of AI (including the potential

for workforce disruption and societal dissatisfaction).

– Failure or outage of business‑critical technology systems at an enterprise

level or at one or more of our assets, including due to a cybersecurity

incident. Such incidents could exacerbate our other risk factors or cause

them to occur, including operational and key infrastructure failure events.

Potential impacts to BHP

– Loss of value due to asset impairments or stranded assets.

– Reduced financial performance, increased cash flow volatility or

reduced confidence in our business, limiting our ability to access capital,

access other financial products (such as insurance cover), fund growth,

execute portfolio changes or pay dividends to investors.

– Delays or cost overruns in project delivery.

– Loss of competitive advantage and diminished strategic flexibility.

– Reduced share price, including due to divestment of our securities.

– Reputational damage and litigation.

Management’s approach

We continue to develop strategies, processes and frameworks to protect and

shape our portfolio and to assist in delivering ongoing returns to shareholders,

including through planning and monitoring of internal and external settings,

and establishing capital allocation and liquidity frameworks that are designed

to enable us to pursue and consider opportunities in new markets.

Risk factor: Access to markets

Our ability to deliver the commodities we produce to customers

worldwide is critical to our business model. As a major supplier of

iron ore, copper, coal and other commodities, we are increasingly

exposed to a more volatile and fragmented geopolitical

environment, reinforcing the need to strengthen supply chain

resilience across both inbound and outbound routes.

We face heightened risks from duties, tariffs, import and export controls

and other trade barriers impacting our products and those of our

customers. Shifts in policy or legislation, trade agreements, contractual

obligations or geopolitical conditions could disrupt physical and logistical

pathways for selling our products into our key customer markets, which in

turn could affect our sales volumes or require us to accept lower realised

prices. Concentrated customer bases, shifts in geopolitical conditions and

the challenges of entering new or more complex regulatory markets can

amplify commercial exposure and ultimately impact the financial outcomes

of our commodity sales.

Potential risks

– 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.

– 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, including in

Western Australia and Queensland which may be particularly exposed

to climate‑related physical risk impacts.

– Legal or regulatory changes, including new or increased royalties or taxes,

government‑mandated price caps, port, export or import restrictions or

customs requirements, shipping/maritime/transport 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.

– Commercial changes, including changes to the standards,

preferences and requirements of customers involving products and

contract structures.

– Failure to meet customer, investor or regulatory expectations relating to

responsible sourcing, Indigenous peoples’ rights and labour conditions

across supply chains, including those that support our copper, potash

and future‑facing commodity growth pathways.

– Geopolitical tensions and volatility, including ongoing conflicts between

Russia and Ukraine and in the Middle East.

Potential impacts to BHP

– Reduced sales volumes or lower realised prices for our commodities

impacting cash flow and capital allocation, including due to commodity

price volatility.

– Reduced portfolio resilience.

– Increased operating and logistics costs.

– Adverse strategic or business planning decisions, resulting in delays

in accessing new markets or expanding presence.

– Reputational damage and erosion of stakeholder confidence.

– Regulatory enforcement action or litigation.

Management’s approach

We actively monitor and assess key markets and geopolitical and

macroeconomic trends and developments, with the aim of optimising our

portfolio and mitigating disruptions to our ability to access key markets.

For more information on our strategic risks refer to OFR 2, OFR 3, OFR 9.4,

OFR 9.10 and Sustainability Report

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

6 Risk continued

Sustainability‑related risks

Risks associated with our activities that fail to meet

stakeholder expectations, resulting in significant adverse

impacts on our people, communities, the environment or our

business. Sustainability‑related risks may also influence or

exacerbate our strategic and operational risks, particularly

over the medium to long term.

FY2026 insights

During FY2026, our overall exposure to sustainability‑related risks

increased. Evolving sustainability related policy, regulatory and legal

landscapes across our operating jurisdictions, together with changing

stakeholder expectations, continued to shape our risk management

approach as we progressed relevant initiatives. These include our 2030

Healthy environment goal and support for the community at New South

Wales Energy Coal as we continue to progress our plan to cease mining

at the Mt Arthur Coal mine by the end of FY2030. As a global resources

company, we also continued to monitor the increased number of

sanctions globally to support compliance with applicable laws.

Potential opportunities

Strong environmental and social performance, stakeholder

engagement and ethical conduct may differentiate BHP from

competitors, support access to capital and talent, and enhance

our ability to operate, grow and partner in the jurisdictions in which

we operate. Responsible stewardship of the environment may

also strengthen environmental and industry resilience, supporting

long‑term value creation for our stakeholders.

Risk factor: Community and Indigenous peoples

The long‑term viability of our business is closely connected

to the wellbeing and satisfaction of the communities and

Indigenous peoples where we have a presence. At any stage of

the asset lifecycle, our activities and operations may have or be

perceived to have significant adverse impacts on communities,

Indigenous peoples, the environment and other stakeholders.

In these circumstances, we may fail to meet the evolving expectations

of our partners and stakeholders (including investors, governments,

employees, suppliers, customers, Indigenous peoples and other

community members) whose support is needed to realise our strategy

and purpose. Loss of partner or stakeholder support could lead to delays

to growth projects, impacts to operational continuity, reputational damage

and financial loss.

Potential risks

– Engaging in or being associated with activities (including through

non‑operated joint ventures and our value chain, where our ability to

influence outcomes may be limited) that have or are perceived to have

individual or cumulative adverse impacts on human rights (including

the health of community members), Indigenous peoples’ rights, culture,

native title, or supply chain or responsible sourcing requirements.

This includes adverse impacts on water access, culturally significant

landscapes, community safety, access to housing and essential services,

or stakeholder trust in consultation or consent processes, including

in relation to our long‑life assets and growth projects in the Pilbara,

South Australia, South America, the US and Canada.

– Failure to meet evolving investor, partner or other 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 responsible sourcing requirements, human rights,

Indigenous peoples’ rights or cultural heritage priorities.

Potential impacts to BHP

– Loss of partner or stakeholder support or regulatory approvals,

including impacts on our licence to operate.

– Reduced production, or increased taxes or regulation.

– Delays to, or an inability to progress, exploration activities

or growth of other projects.

– Reduced financial performance, including due to lower

production or increased operating costs.

– Regulatory enforcement action or litigation (including class actions).

– Adverse impacts to our reputation, ability to attract and retain talent

(including Indigenous peoples talent) and ability to access capital.

Management’s approach

We have adopted community, social value and human rights policies,

standards and procedures that guide stakeholder engagement, respect

the rights of Indigenous peoples and host communities, and integrate

social value into decision‑making, with the aim of strengthening social

performance, trust and community resilience.

Risk factor: Environment

At all stages of the asset lifecycle, we depend on and interact with the natural

environment. This includes reliance on ecosystem services such as water

availability and quality, land condition and broader ecosystem functioning.

Our activities may have significant adverse impacts on the environment,

including land, water, air, biodiversity and ecosystems. We may also fail

to meet increasing, complex and changing regulatory and stakeholder

expectations in relation to the management and stewardship of the natural

environment. This could lead to loss of partner or stakeholder support or

regulatory approvals, adjustments to our business plans or strategy, increased

costs (including unanticipated environmental liabilities) and enforcement action

or litigation. Environmental impacts may also have consequences for local

communities and Indigenous peoples, including impacts on access to, or

the condition of, land, water and other environmental values that support

livelihoods, cultural practices and community wellbeing. Additionally,

climate‑related and nature‑related risks are interconnected and may amplify

one another – for example, where climate impacts intensify pressures

on ecosystems, water resources or biodiversity, or where ecosystem

degradation reduces resilience to climate variability and extreme events.

Potential risks

– Engaging in or being associated with activities (including through

non‑operated joint ventures and our value chain, where our ability to

influence outcomes may be limited) that have or are perceived to have

individual or cumulative adverse impacts on nature (including land, water,

air, biodiversity and ecosystems), ecosystem services or climate change.

– Failure to meet evolving investor, partner or other stakeholder

expectations in connection with our approach to nature, ecosystem

services or climate change.

– Failure to adequately account for interactions between climate‑related

and nature‑related risks.

– Failure to monitor and adapt to political, regulatory and judicial

developments, such as legislation to enact policy positions on climate

change or nature‑related risk.

– Failure to adequately identify or to appropriately manage climate‑related

physical risks and/or nature‑related risks. This includes loss of important

biodiversity and/or ecosystems as a result of our operational activities,

such as unauthorised clearing of high value vegetation.

For more information on BHP’s climate‑related physical risks refer to

Sustainability Report

Potential impacts to BHP

– Loss of partner or stakeholder support or regulatory approvals,

including impacts on our licence to operate.

– Increased uncertainty in relation to our operating context or adjustment

to our business plans or strategy (such as land access restrictions,

restrictions on access to reserves or resources, or our ability to access

new opportunities).

– Changes to or increased costs associated with exploration,

development, production, closure and rehabilitation of our assets,

including modification to mine plans and environmental commitments.

26 BHP Annual Report 2026

– Reduced financial performance, including due to increased sourcing costs

and unanticipated environmental remediation or other legacy liabilities.

– Regulatory enforcement action or litigation (including class actions).

– Adverse impacts to our reputation, ability to attract and retain talent

and ability to access capital.

Management’s approach

We have adopted environmental policies, standards and mandatory

minimum performance requirements that set out our approach to

managing environmental risks across the asset lifecycle, including nature,

climate, closure and legacy management, with the aim of strengthening

environmental performance and operational resilience over time.

Risk factor: Ethics and compliance

BHP, our people and our third‑party partners and providers (including

suppliers) may engage or be alleged to engage in conduct that deviates

from the standard required or expected of us. A failure to act ethically or

legally may result in a breach of our legal obligations or the expectations

of our stakeholders, leading to negative publicity, regulatory enforcement

action, litigation or other civil or criminal proceedings. Impacts may be

amplified if our senior leaders fail to uphold BHP’s values or address actual

or alleged misconduct in a way that is consistent with our commitments

or stakeholder expectations. Risks and impacts are also heightened by

increasing geopolitical tensions, the complex and continuously evolving

legal and regulatory frameworks that apply to the jurisdictions where we

operate, and conflicting obligations under different national laws.

Potential risks

– Breach of international standards, laws, regulations or other legal,

regulatory, ethical, environmental, governance or compliance

obligations, such as external misstatements, inaccurate financial

or operational reporting, a breach of data privacy or state sensitive

information laws, or a breach of our continuous disclosure obligations.

– Fraud, corruption, money laundering, market manipulation or

misconduct, or anti‑competitive behaviour, including in relation to our

joint venture operations. Our exposure to this risk may increase as we

pursue early‑stage options (including for copper growth), new market

sourcing strategies and strategic partnerships in jurisdictions where

labour rights, Indigenous rights or third‑party governance controls are

less mature than in our core operating regions.

– Breach of trade or financial sanctions or export controls (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.

– Failure to protect our people from harm (including to mental and

physical health) that takes place in connection with their work, such

as discrimination or sexual harassment, or other psychosocial hazards.

– Failure to uphold BHP’s values or address actual or alleged misconduct,

including systemic organisational cultural failings.

Potential impacts to BHP

– Reputational damage, including due to negative publicity, investigations

and public inquiries.

– Regulatory enforcement action, litigation or other civil or criminal

proceedings, including class actions.

– Reduced financial performance, including due to damages and costs

associated with civil or criminal proceedings, and other forms of

compensation or remediation.

– Increased regulation or adverse impacts to the validity of our

tenements or permits.

– Erosion of our workplace culture, which may adversely affect our

ability to attract and retain talent.

Management’s approach

Our Charter describes our purpose and values and sets the ‘tone from

the top’. We seek to design and implement internal policies, standards,

systems and processes (including internal investigations) for governance

and compliance to support an appropriate culture and prioritise respectful

behaviours at BHP.

For more information on our sustainability‑related risks refer to OFR 9

and Sustainability Report

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

Management believes the following information presented by commodity

provides a meaningful indication of the underlying financial and operating

performance of the assets, including equity accounted investments, of

each reportable segment. Information relating to assets that are accounted

for as equity accounted investments is shown to reflect BHP’s share,

unless otherwise noted, to provide insight into the drivers of these assets.

For more information as to the statutory determination of our reportable

segments, refer to Financial Statements note 1 ‘Segment reporting’

Unit costs is one of our non‑IFRS financial measures used to monitor the

performance of our individual assets and is included in the analysis of each

reportable segment.

For the definition and method of calculation of our non‑IFRS financial

measures, including Underlying EBITDA and Unit costs, refer to OFR 8

7.1 Copper

Detailed below is financial and operating information for our Copper assets

comparing FY2026 to FY2025.

Year ended 30 June

US$M 2026 2025

Revenue 29,031 22,530

Underlying EBITDA 18,187 12,326

Net operating assets 43,469 40,884

Capital expenditure 4,556 4,392

Underlying ROCE 26% 17%

Total copper production (kt) 1,953 2,017

Average realised prices

Copper (US$/lb) 5.74 4.25

Unit costs

Escondida (US$/lb) 1.07 1.19

Spence (US$/lb) 2 .15 2.07

Copper South Australia (US$/lb) 0.32 1.18

Key drivers of Copper’s financial results

Price overview

Spot copper prices on average were 26 per cent higher in FY2026, with

the second half of FY2026 experiencing increases of nearly 40 per cent as

copper moved to >US$13,000/t (US$5.90/lb). The copper price continues

to be supported by strong fundamentals on the demand and supply side,

driven by a compelling narrative for copper‑intensive sectors, particularly

electrification and data centres and the risk of future supply deficits.

Global demand is expected to grow at around 2.8 per cent in CY2026, a

little slower than previously expected due to the impact of the Middle East

conflict, but at a greater pace than the 2.1 per cent growth experienced

in CY2025. Multiple countries have seen copper consumption negatively

impacted due to the Middle East conflict, this includes indirect impacts due

to the integrated nature of global supply‑chains – for example, a lack of

gas to heat copper for fabrication, or a lack of plastics for wire insulation.

In the United States however, copper demand growth is accelerating as

unprecedented investment into data centres boosts requirements for power

networks, cabling, and electrical equipment.

Recovery in production from previously disrupted mining operations and

new supply additions are expected to lead to solid production growth.

However, given the robust demand outlook, the market is likely to remain

tight and require additional copper units to remain in balance. These units

could be supplied through increased scrap recovery and novel sources,

such as pyrites and gold concentrates, while substitution and thrifting act to

reduce the quantity of copper required. However, supply risks remain, with

further disruptions, the slow development pipeline, grade declines, trade

barriers, fragmented scrap supply‑chains, and rising scrap collection costs

all substantial headwinds.

Copper fundamentals remain attractive. Demand is expected to grow from

~34 Mtpa today to >50 Mtpa by CY2050, driven by traditional economic

growth (home building, electrical equipment and household appliances),

energy transition (renewables and electric vehicles) and digital (artificial

intelligence and data centres). Current expectations are that copper demand

associated with investment in data centres could grow around sixfold

between 2024 and 2050, up to around 3 Mtpa.

Operational and project development challenges will place upward

pressure on industry costs, potentially resulting in a higher and steeper

copper cost curve.

Production

Total Copper production for FY2026 decreased by 3 per cent to 1,953 kt.

Escondida production decreased by 3 per cent to 1,261 kt due to planned

lower concentrator feed grade of 0.90 per cent (FY2025: 1.02 per cent).

This was partially offset by continued strong operational performance and

productivity improvements, with record material mined, record concentrator

throughput and improved recoveries, driven by operational enhancements,

including the introduction of new reagents. Cathode production increased,

supported by higher Full SaL recoveries and improved operational

performance enabling additional sulphide leach pad irrigation.

Pampa Norte, consisting of Spence and Cerro Colorado, copper production

decreased by 21 per cent to 213 kt. Spence production decreased due to

ongoing challenges with processing complex ore at the concentrator and the

planned decline in stacked feed grade at the cathode plant, as we progress

deeper into the hypogene mineralisation of the ore body. The Spence

Concentrator Upgrade Recovery project, which upgrades the flotation circuit

to increase residence time and improve recoveries, was sanctioned in June

2026, with first production expected during FY2028. Once commissioned,

we expect the project will allow us to more effectively manage Spence’s ore

complexity and variability. The Spence Chalcopyrite Leaching project was

also sanctioned in June 2026, which includes the implementation of BHP’s

sulphide leaching technology, Simple Approach to Leaching 2, to enable

processing of hypogene ores and to utilise latent capacity in the cathode

infrastructure, with first production expected in CY2028.

Copper South Australia copper production increased by 2 per cent to 321 kt

due to strong operational performance, including record material mined and

ore milled, as well as the weather‑related power outage in the prior period

which impacted FY2025 production. Olympic Dam achieved a 20‑year copper

production record, while Prominent Hill benefited from higher feed grades.

Carrapateena achieved record material mined and milled, which partially offset

the impact of planned lower grades. By‑product volumes were also strong with

record gold production, including record refined gold, capitalising on strong

prices, while uranium production also increased 16 per cent.

Antamina copper production increased by 27 per cent to a financial year

record of 152 kt as a result of higher feed grades and improved operational

performance. Zinc production decreased to 96 kt due to lower feed grades.

Financial results

Copper revenue increased by US$6.5 billion to US$29.0 billion

in FY2026 mainly due to higher average realised copper prices.

Underlying EBITDA for Copper increased by US$5.9 billion to

US$18.2 billion, with higher prices the primary driver. Price impacts,

net of price‑linked costs, increased Underlying EBITDA by US$6.7 billion,

partly offset by a US$1.4 billion decrease from lower volumes.

Controllable cash costs improved by US$0.7 billion, primarily due to

favourable inventory movements from the timing of shipments and the

non‑recurrence of one‑off labour‑related costs in FY2025.

Inflation and unfavourable foreign exchange reduced Underlying EBITDA

by US$0.6 billion.

Other movements increased Underlying EBITDA by US$0.3 billion,

primarily reflecting improved Antamina profitability driven by higher

copper prices and increased production.

Outlook

Copper production for FY2027 is expected to be between 1,650 and 1,800 kt

predominately as a result of the forecast grade decline at Escondida.

Escondida production for FY2027 is expected to be between 1,000 and 1,100

kt. Concentrator feed grade for FY2027 is expected to be ~0.70 per cent.

Spence production for FY2027 is expected to be between 210 and 230 kt

as we continue to manage ore variability via blending at the concentrator

before the concentrator upgrades come online in FY2028.

Copper South Australia production of between 290 and 320 kt is expected

in FY2027, as we plan to increase anode inventory in FY2027 to supply the

refinery during the (six‑yearly) smelter campaign maintenance scheduled

for the first half of FY2028.

Antamina production for FY2027 is expected to be between 120 and 140 kt for

copper and between 35 and 55 kt for zinc due to planned lower feed grades.

Escondida unit costs in FY2027 are expected to be between US$1.20 and

US$1.50 per pound (at an exchange rate of USD/CLP 890).

Spence unit costs in FY2027 are expected to be between US$2.40 and

US$2.70 per pound (at an exchange rate of USD/CLP 890).

Copper South Australia unit costs in FY2027 are expected to be between

US$0.30 and US$0.80 per pound (at an exchange rate of AUD/USD 0.70

and prices for by‑products of gold US$4,300/oz and uranium US$80/lb).

7 Performance by commodity

28 BHP Annual Report 2026

7. 2 Iron Ore

Detailed below is financial and operating information for our Iron Ore

assets comparing FY2026 to FY2025.

Year ended 30 June

US$M 2026 2025

Revenue 23,883 22,919

Underlying EBITDA 14,529 14,396

Net operating assets 17,119 15,252

Capital expenditure 3,048 2,617

Underlying ROCE 55% 64%

Total iron ore production (Mt) 265 263

Average realised prices

Iron ore (US$/wmt, FOB) 84.56 82.13

Unit costs

WAIO (US$/t) 19.66 18.56

Key drivers of Iron Ore’s financial results

Price overview

Iron ore prices (Argus 62% Fe iron ore fines CFR China) averaged

US$105/dmt in FY2026, up 4 per cent, supported by resilient Chinese

demand and elevated cost support from higher energy and freight costs due

to the Middle East conflict. In response to the changing quality of mainstream

mid‑grade iron ore fines, Price Reporting Agencies (PRAs) introduced new

61% Fe indices. The Argus 61% Fe index averaged US$104/dmt in the

second half of FY2026, up 3 per cent from the first half of FY2026.

Chinese iron ore demand remains resilient, with seaborne iron ore net

imports increasing 6 per cent (an annualised rate of ~1.2 Btpa in the second

half of FY2026) in response to weaker domestic iron ore supply and scrap.

Domestic iron ore production has been constrained by environmental and

safety restrictions, while scrap availability is limited amid subdued construction

activity. Elsewhere, iron ore demand was more mixed, with consumption

continuing to expand in India and emerging Asian economies, following the

commissioning of new Blast Furnace capacity. Developed Asian economies

and Europe also showed signs of recovery, the latter driven by the Carbon

Border Adjustment Mechanism (CBAM) incentivised domestic steel

production. In contrast, imports into the Middle East fell sharply, although

a gradual recovery is likely if conflict‑related tensions ease.

Looking ahead, we maintain our view that China’s real steel production

will plateau around the 1 Bt level for the rest of the decade. In the

medium‑term, scrap will play an increasingly important role in steelmaking

and result in a declining profile for Chinese pig iron production. In the long

run, the seaborne iron ore trade is likely to undergo steady diversification

as demand grows in emerging economies.

India, historically a major iron ore exporter, saw imports grow to 12 Mt in

CY2025 and this has continued into CY2026 with imports rising further.

This trend reinforces the view that India is undergoing a structural shift towards

net imports, as domestic iron ore supply lagging behind steel capacity growth

– with some market expectations of imports above 80 Mt by 2030.

Seaborne supply is expected to rise as production from existing supply

basins normalises and new capacity comes online, including Simandou

in Guinea. However, declining grades and resource depletion will require

significant investment from incumbent producers simply to maintain current

output and could support future fundamentals.

Production

Total Iron Ore production increased by 1 per cent to a record 265 Mt.

WAIO delivered record production increasing by 0.3 Mt to 257 Mt as a result

of strong operational performance across the supply chain. WAIO achieved

record material mined (up 6 per cent), with South Flank exceeding annual

nameplate capacity. A drawdown of inventory at the Central Pilbara Hub

(South Flank and Mining Area C) supported record volumes and provided

value chain resilience. At port, Car Dumper (CD) performance improved

following the completion of the CD3 rebuild in Q1 FY2026 (4.3 Mt impact,

100 per cent basis), which alongside the planned reduction in tie‑in activity

on the multi‑year Rail Technology Program (RTP1) and combined with

operational improvements across the rail network, generated increased

efficiency, record inflow and record shipments (100 per cent basis).

Samarco production increased by 25 per cent to 7.8 Mt (BHP share),

due to better than planned concentrator performance.

Financial results

Total Iron Ore revenue increased by US$1.0 billion to US$23.9 billion

in FY2026, primarily due to higher average realised prices.

Underlying EBITDA for Iron Ore increased by US$0.1 billion to

US$14.5 billion. Price impacts, net of price‑linked costs, increased

Underlying EBITDA by US$0.4 billion and controllable cash costs improved

by US$0.2 billion, reflecting net favourable inventory movements primarily

driven by strong mine performance, partially offset by an inventory

drawdown at the Central Pilbara Hub. These benefits were largely offset by

a US$0.5 billion impact from inflation and unfavourable foreign exchange.

Outlook

WAIO production for FY2027 is expected to be between 253 and 264 Mt

(286 and 298 Mt on a 100 per cent basis) and includes the renewal of CD4

in the first half of FY2027.

WAIO unit costs in FY2027 are expected to be between US$20.25 and

US$21.75 per tonne (based on an exchange rate of AUD/USD 0.70),

subject to movements in the Singapore 10ppm Gasoil benchmark.

Every US$10/bbl change in the benchmark price is estimated to have an

~US$0.15 per tonne impact on unit costs.

Samarco production for FY2027 is expected to be between 7.5 and 8.0 Mt.

7.3 Coal

Detailed below is financial and operating information for our Coal assets

comparing FY2026 to FY2025.

Year ended 30 June

US$M 2026 2025

Revenue 5,590 5,046

Underlying EBITDA 832 573

Net operating assets 6,104 6,357

Capital expenditure 415 525

Underlying ROCE 0% (1%)

Total steelmaking coal production (Mt) 18.6 18.0

Total energy coal production (Mt) 16.4 15.0

Average realised prices

Steelmaking coal (US$/t) 210.21 193.82

Energy coal (US$/t) 104.28 107.8 0

Unit costs

BMA (US$/t) 134.05 127.5 0

Key drivers of Coal’s financial results

Price overview – Steelmaking coal

Steelmaking coal prices (PLV FOB Aus) rebounded by 28 per cent in

second half of FY2026, supported by a recovery in seaborne demand and

supply shocks.

Indian pig iron production growth remained robust, sustaining the country’s

position as the largest seaborne coal importer.

The Middle East conflict temporarily impacted steelmaking coal markets

through higher energy prices and gas shortages, encouraging the

diversion of semi‑soft coking coals into power generation and reducing

supply available to steelmakers.

In May, a tragic mine accident in China triggered widespread coal mine

suspensions, causing a domestic shortage of Premium Hard Coking

Coal (PHCC) and creating a regional price differential whereby seaborne

PHCC imports were cheaper than domestic coal. Given China’s scale in

coal production and demand, policy developments in China remain a key

determinant for seaborne coal dynamics.

Outside of China, supply increased through restarts and new mine

ramp‑ups in Australia, United States and Russia. Barring any adverse

impact from conflicts and abnormal weather, and in a supportive price

environment, this trend is likely to continue in the near term.

Over the longer term, we expect that higher quality steelmaking coals,

such as those produced by our BMA assets, will attract a premium due to

their greater ability to reduce greenhouse gas emission intensity of blast

furnaces. In addition, robust hard coking coal imports from emerging

Asian countries such as India, will lead to growing and resilient demand

for decades to come. The scarcity value of higher quality steelmaking coals

may increase over time, particularly given the restrictive royalty regime

in the major seaborne supply region of Queensland is not supportive of

long‑term capital investment in steelmaking coal assets in Queensland.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

Production

Steelmaking coal

BMA production increased by 3 per cent to 18.6 Mt with strong operational

performance at the open‑cut operations, delivering the highest stripping

volumes in five years. Improved wet weather operating performance enabled

BMA to partially mitigate the impacts of higher‑than‑average rainfall including

Tropical Cyclone Koji, weather‑related mine sequencing impacts on yield,

and ongoing geotechnical challenges at Broadmeadow. BMA also increased

raw coal inventory levels by ~30 per cent, reflecting BMA’s continuing focus

on strengthening supply chain stability and resilience.

Energy coal

NSWEC production increased by 9 per cent to 16.4 Mt, primarily as a

result of increased bypass coal due to mine sequencing. This was further

supported by mining lower strip ratio areas as we continue to progress our

plan to cease mining at the Mt Arthur Coal mine in June 2030.

Financial results

Coal revenue increased by US$0.5 billion to US$5.6 billion in FY2026 due

to higher average realised prices and higher volumes.

Underlying EBITDA for Coal increased by US$0.3 billion to US$0.8 billion,

supported by price impacts, net of price‑linked costs, and higher volumes,

which each contributed US$0.2 billion.

Controllable cash costs improved by US$0.2 billion, primarily reflecting

the non‑recurrence of prior‑period NSWEC impacts from reduced

truck availability and unfavourable weather, and favourable raw coal

inventory movements at BMA. These benefits were partially offset by a

US$0.4 billion impact from inflation and unfavourable foreign exchange.

Outlook

BMA production for FY2027 is expected to be between 18.5 and 20.5 Mt

(37 and 41 Mt on a 100 per cent basis), weighted to the second half.

BMA unit costs in FY2027 are expected to be between US$126 and

US$137 per tonne (based on an exchange rate of AUD/USD 0.70),

subject to movements in the Singapore 10ppm Gasoil benchmark.

Every US$10/bbl change in the benchmark price is estimated to have

an ~US$1.10 per tonne impact on unit costs.

NSWEC production for FY2027 is expected to be between 14 and 16 Mt.

7.4 Other assets

Detailed below is an analysis of Other assets’ financial and operating

performance comparing FY2026 to FY2025.

Western Australia Nickel

Western Australia Nickel (WAN) recorded an Underlying EBITDA loss

of US$255 million in FY2026, compared to a loss of US$589 million

in FY2025 as operations transitioned into temporary suspension in

December 2024.

As previously announced, BHP intends to review the decision to

temporarily suspend WAN by February 2027. As part of this review, BHP

is assessing the potential divestment of the WAN assets. Any decision to

divest will be subject to an assessment against other options, including

continuing temporary suspension, restart or closure.

Potash

Potash recorded an Underlying EBITDA loss of US$326 million in FY2026,

compared to a loss of US$284 million in FY2025.

Jansen Stage 1 is 84 per cent complete with an estimated date of first

production of mid CY2027. Jansen Stage 2 is 16 per cent complete with an

estimated date of first production of late FY2031.

Price overview

In FY2026, potash spot prices have moved 23 per cent higher to US$342/t

Vancouver FOB. This increase was supported by strong demand,

driven by biofuel mandates in Southeast Asia, a re‑stocking cycle in

China and improving demand in Brazil. This has been underpinned by

early settlement of the CY2026 Chinese annual contract and India settling

their CY2026 contract at a multi‑year high.

Fertiliser markets were heavily affected by the Middle East conflict,

particularly nitrogen and phosphate, owing to their exposure to natural

gas, urea and sulphuric‑acid feedstocks. Muriate of Potash (MOP) is not

directly impacted by these feedstocks and therefore the impact has mostly

been limited to increasing freight costs, resulting in delivered prices moving

higher in response. The relative price movements across the fertiliser

complex have further consolidated potash’s affordability, reinforcing its

value proposition for growers and supporting demand resilience. However,

farmers continue to face elevated overall input costs despite potash’s

relative affordability.

The recent price rally is expected to be tempered in CY2027 amidst

moderating demand in price‑sensitive regions and sufficient supply.

Longer term, we continue to believe that potash will benefit from durable

trends: rising population, improving diets, reduced availability of arable land,

and the need to correct the persistent global potassium deficit in agricultural

soils. These attractive demand fundamentals will cement the role of potash

as a commodity pillar within BHP’s portfolio over the long term.

7.5 Impact of changes to commodity prices

The prices we obtain for our products are a key driver of value for BHP.

Fluctuations in these commodity prices affect our results, including cash

flows and asset values. The estimated impact of changes in commodity

prices in FY2026 on our key financial measures is set out below.

Impact on profit

after taxation

US$M

Impact on

Underlying

EBITDA

US$M

US¢1/lb on copper price 27 39

US$1/t on iron ore price 161 230

US$1/t on steelmaking coal price 8 12

US$1/t on energy coal price 10 15

7 Performance by commodity continued

30 BHP Annual Report 2026

We use various non‑IFRS financial information to reflect our underlying financial performance.

Non‑IFRS financial information is not defined or specified under the requirements of IFRS, but is derived from the Group’s Consolidated Financial

Statements prepared in accordance with IFRS. The non‑IFRS financial information and the below reconciliations included in this document are unaudited.

The non‑IFRS financial information presented is consistent with how management review financial performance of the Group with the Board and the

investment community.

Sections 8.1 and 8.2 outline why we believe non‑IFRS financial information is useful and the calculation methodology. We believe non‑IFRS financial

information provides useful information, however it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator

of actual operating performance (such as profit or net operating cash flow) or any other measure of financial performance or position presented in

accordance with IFRS, or as a measure of a company’s profitability, liquidity or financial position.

The following tables provide reconciliations between non‑IFRS financial information and their nearest respective IFRS measure.

Exceptional items

To improve the comparability of underlying financial performance between reporting periods, some of our non‑IFRS financial information adjusts

the relevant IFRS measures for exceptional items.

For more information on exceptional items refer to Financial Statements note 3 ‘Exceptional items’

Exceptional items are those gains or losses where their nature, including the expected frequency of the events giving rise to them, and impact is

considered material to the Group’s Consolidated Financial Statements. The exceptional items included within the Group’s profit for the financial

years are detailed below.

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Revenue − – −

Other income 64 − 877

Expenses excluding net finance costs, depreciation, amortisation and impairments (215) (621) (139)

Depreciation and amortisation − − −

Impairments of property, plant and equipment and intangibles net of reversals (2,300) 90 (3,800)

Profit/(loss) from equity accounted investments, related impairments and expenses (320) (245) (3,032)

Profit/(loss) from operations (2,771) (776) (6,094)

Financial expenses (600) (458) (506)

Financial income − − −

Net finance costs (600) (458) (506)

Profit/(loss) before taxation (3,371) (1,234) (6,600)

Income tax (expense)/benefit − 96 837

Royalty‑related taxation (net of income tax benefit) − − −

Total taxation (expense)/benefit − 96 837

Profit/(loss) after taxation (3,371) (1,138) (5,763)

Total exceptional items attributable to non‑controlling interests − − −

Total exceptional items attributable to BHP shareholders (3,371) (1,138) (5,763)

Exceptional items attributable to BHP shareholders per share (US cents) (66.4) (22.4) (113.7)

Weighted basic average number of shares (million) 5,078 5,073 5,068

8 Non-IFRS financial information

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

8 Non-IFRS financial information continued

Non-IFRS financial information derived from Consolidated Income Statement

Underlying attributable profit

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Profit after taxation attributable to BHP shareholders 9,833 9,019 7,8 97

Total exceptional items attributable to BHP shareholders

3,371 1,13 8 5,763

Underlying attributable profit 13,204 10,157 13,660

1. For more information refer to Financial Statements note 3 ‘Exceptional items’.

Underlying basic earnings per share

Year ended 30 June

2026

US cents

2025

US cents

2024

US cents

Basic earnings per ordinary share 193.6 177.8 155.8

Exceptional items attributable to BHP shareholders per share

66.4 22.4 113.7

Underlying basic earnings per ordinary share 260.0 200.2 269.5

1. For more information refer to Financial Statements note 3 ‘Exceptional items’.

Underlying EBITDA

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Profit from operations 23,869 19,464 17,537

Exceptional items included in profit from operations

2,771 776 6,094

Underlying EBIT 26,640 20,240 23,631

Depreciation and amortisation expense 6,201 5,540 5,295

Impairments of property, plant and equipment and intangibles net of reversals 2,406 108 3,890

Exceptional items included in depreciation, amortisation and impairments

(2,300) 90 (3,800)

Underlying EBITDA 32,947 25,978 29,016

1. For more information refer to Financial Statements note 3 ‘Exceptional items’.

32 BHP Annual Report 2026

Underlying EBITDA – Segment

Year ended 30 June 2026

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

Total Group

Profit from operations 15,661 11,949 58 (3,799) 23,869

Exceptional items included in profit from operations

− 365 − 2,406 2,771

Depreciation and amortisation expense 2,500 2,186 754 761 6,201

Impairments of property, plant and equipment and intangibles

net of reversals 26 29 20 2,331 2,406

Exceptional items included in depreciation, amortisation and impairments

− − − (2,300) (2,300)

Underlying EBITDA 18,187 14,529 832 (601) 32,947

Year ended 30 June 2025

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

Total Group

Profit from operations 9,956 11,826 (33) (2,285) 19,464

Exceptional items included in profit from operations

– 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

– – – 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

Total Group

Profit from operations 6,524 13,759 2,557 (5,303) 17, 537

Exceptional items included in profit from operations

– 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

– – – (3,800) (3,800)

Underlying EBITDA 8,564 18,913 2,290 (751) 29,016

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 2026

US$M

Profit from

operations

Exceptional

items included

in profit from

operations

Depreciation

and

amortisation

Impairments

net of reversals

Exceptional

items included

in depreciation,

amortisation and

impairments

Underlying

EBITDA

Potash (2,628) 2,300 2 2,300 (2,300) (326)

Western Australia Nickel (283) − − 28 − (255)

Other

(888) 106 759 3 − (20)

Total (3,799) 2,406 761 2,331 (2,300) (601)

Year ended 30 June 2025

US$M

Profit from

operations

Exceptional

items included

in profit from

operations

Depreciation

and

amortisation

Impairments

net of reversals

Exceptional

items included

in depreciation,

amortisation and

impairments

Underlying

EBITDA

Potash (286) – 2 – – (284)

Western Australia Nickel (909) 320 – (90) 90 (589)

Other

(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

Depreciation

and

amortisation

Impairments

net of reversals

Exceptional

items included

in depreciation,

amortisation and

impairments

Underlying

EBITDA

Potash (257) – 2 – – (255)

Western Australia Nickel (4,174) 3,800 72 3,800 (3,800) (302)

Other

(872) 108 560 10 – (194)

Total (5,303) 3,908 634 3,810 (3,800) (751)

1. For more information refer to Financial Statements note 3 ‘Exceptional items’.

2. Other includes functions, other unallocated operations, legacy assets and consolidation adjustments.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

8 Non-IFRS financial information continued

Underlying EBITDA margin

Year ended 30 June 2026

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

Total Group

Revenue – Group production 26,035 23,864 5,590 6 55,495

Revenue – Third‑party products 2,996 19 − 250 3,265

Revenue 29,031 23,883 5,590 256 58,760

Underlying EBITDA – Group production 18,119 14,528 832 (626) 32,853

Underlying EBITDA – Third‑party products 68 1 − 25 94

Underlying EBITDA

18,187 14,529 832 (601) 32,947

Segment contribution to the Group’s Underlying EBITDA

54% 43% 3% 100%

Underlying EBITDA margin

70% 61% 15% 59%

Year ended 30 June 2025

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

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

12,326 14,396 573 (1,317) 25,978

Segment contribution to the Group’s Underlying EBITDA

45% 53% 2% 100%

Underlying EBITDA margin

59% 63% 11% 53%

Year ended 30 June 2024

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

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

8,564 18,913 2,290 (751) 29,016

Segment contribution to the Group’s Underlying EBITDA

29% 64% 7% 100%

Underlying EBITDA margin

51% 68% 30% 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

Year ended 30 June

2026 2025 2024

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 22,414 (9,388) 41.9 18,353 (7,210) 39.3 16,048 (6,447) 40.2

Adjusted for:

Exchange rate movements − (24) – 21 – (79)

Exceptional items

3,371 − 1,234 (96) 6,600 (837)

Adjusted effective tax rate 25,785 (9,412) 36.5 19,587 (7,2 8 5) 37. 2 22,648 (7, 363) 32.5

1. For more information refer to Financial Statements note 3 ‘Exceptional items’.

34 BHP Annual Report 2026

Non-IFRS financial information derived from Consolidated Cash Flow Statement

Capital and exploration expenditure

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Capital expenditure (purchases of property, plant and equipment) 9,849 9,398 8,816

Add: Exploration and evaluation expenditure 408 396 457

Capital and exploration expenditure (cash basis) 10,257 9,794 9,273

Free cash flow

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Net operating cash flows 21,778 18,692 20,665

Net investing cash flows (12,011) (13,350) (8,762)

Free cash flow 9,767 5,342 11,9 03

Non-IFRS financial information derived from Consolidated Balance Sheet

Net debt and gearing ratio

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Interest bearing liabilities – Current 2,684 2,018 2,084

Interest bearing liabilities – Non‑current 24,437 22,478 18,634

Total interest bearing liabilities 27,121 24,496 20,718

Comprising:

Borrowing 23,625 21,543 17,6 02

Lease liabilities 3,496 2,953 3,116

Less: Lease liability associated with index‑linked freight contracts 735 333 511

Less: Cash and cash equivalents 18,532 11,89 4 12,501

Less: Net debt management related instruments

(1,067) (595) (1,395)

Less: Net cash management related instruments

227 (60) (19)

Less: Total derivatives included in net debt (840) (655) (1,414)

Net debt 8,694 12,924 9,120

Net assets 56,321 52,218 49,120

Gearing 13.4% 19.8% 15.7%

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.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

8 Non-IFRS financial information continued

Net debt waterfall

Year ended 30 June

2026

US$M

2025

US$M

Net debt at the beginning of the period (12,924) (9,120)

Net operating cash flows 21,778 18,692

Net investing cash flows (12,011) (13,350)

Net financing cash flows (3,280) (5,971)

Net increase/(decrease) in cash and cash equivalents 6,487 (629)

Carrying value of interest bearing liability net proceeds (1,594) (2,454)

Carrying value of debt related instruments settlements 22 147

Carrying value of cash management related instruments proceeds (96) (195)

Fair value change on hedged loans 367 (263)

Fair value change on hedging derivatives (292) 290

Foreign currency exchange rate changes on cash and cash equivalents 152 24

Lease additions (excluding leases associated with index‑linked freight contracts) (638) (547)

Other (178) (177)

Non‑cash movements (589) (673)

Net debt at the end of the period (8,694) (12,924)

Net operating assets

The following table reconciles Net operating assets for the Group to Net assets on the Consolidated Balance Sheet.

Year ended 30 June

2026

US$M

2025

US$M

Net assets 56,321 52,218

Less: Non‑operating assets

Cash and cash equivalents (18,532) (11,89 4)

Trade and other receivables

(87) (17)

Other financial assets

(1,062) (1,251)

Current tax assets (33) (545)

Non‑current tax assets (37) –

Deferred tax assets (114) (78)

Add: Non‑operating liabilities

Trade and other payables

383 332

Interest bearing liabilities 27,121 24,496

Other financial liabilities

5,583 1,117

Current tax payable 1,049 900

Non‑current tax payable 37 3

Deferred tax liabilities 3,101 3,506

Net operating assets 73,730 68,787

Net operating assets

Copper 43,469 40,884

Iron Ore 17,119 15,252

Coal 6,104 6,357

Group and unallocated items

7,038 6,294

Total 73,730 68,787

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, forward exchange contracts related to cash management and streaming arrangement liability.

5. Group and unallocated items includes functions, other unallocated operations, including Potash, Western Australia Nickel, legacy assets and consolidation adjustments.

36 BHP Annual Report 2026

Other non-IFRS financial information

Principal factors that affect Revenue, Profit from operations and Underlying EBITDA

The following table describes the impact of the principal factors that affected Revenue, Profit from operations and Underlying EBITDA for FY2026 and

relates them back to our Consolidated Income Statement.

For information on the method of calculation of the principal factors that affect Revenue, Profit from operations and Underlying EBITDA refer to OFR 8.2

Revenue

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 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

5,648

Exceptional item included in Depreciation, amortisation

and impairments 90

Exceptional items 776

Underlying EBITDA 25,978

Change in sales prices 7,710 – 7,710 – 7,710

Price‑linked costs – (399) (399) – (399)

Net price impact 7,710 (399) 7,311 – 7,311

Change in volumes (1,242) 75 (1,167) – (1,167)

Operating cash costs – 1,118 1,118 – 1,118

Exploration and business development – 73 73 – 73

Change in controllable cash costs

– 1,191 1,191 – 1,191

Exchange rates – (798) (798) – (798)

Inflation on costs – (675) (675) – (675)

Fuel, energy and consumable price movements – (209) (209) – (209)

Non‑cash – 96 96 – 96

Change in other costs – (1,586) (1,586) – (1,586)

Asset sales − 100 100 – 100

Ceased and sold operations (534) 1,010 476 – 476

Other 1,564 (920) 644 – 644

Depreciation, amortisation and impairments – (569) (569) 569 –

Exceptional items – (1,995) (1,995) 1,995 –

Year ended 30 June 2026

Revenue 58,760

Other income 514

Expenses excluding net finance costs (35,979)

Profit/(loss) from equity accounted investments, related impairments

and expenses

574

Total other income, expenses excluding net finance costs and

profit/(loss) from equity accounted investments, related impairments

and expenses (34,891)

Profit from operations 23,869

Depreciation, amortisation and impairments

8,607

Exceptional item included in Depreciation, amortisation

and impairments (2,300)

Exceptional items 2,771

Underlying EBITDA 32,947

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$106 million (FY2025: US$198 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.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

8 Non-IFRS financial information continued

Underlying return on capital employed (ROCE)

Year ended 30 June

2026

US$M

2025

US$M

2024

US$M

Profit after taxation 13,026 11,143 9,601

Exceptional items

3,371 1,13 8 5,763

Subtotal 16,397 12,281 15,364

Adjusted for:

Net finance costs 1,455 1,111 1,489

Exceptional items included within net finance costs

(600) (458) (506)

Income tax expense on net finance costs (259) (224) (303)

Profit after taxation excluding net finance costs and exceptional items 16,993 12,710 16,044

Net assets at the beginning of the period 52,218 49,120 48,530

Net debt at the beginning of the period 12,924 9,120 11,166

Capital employed at the beginning of the period 65,142 58,240 59,696

Net assets at the end of the period 56,321 52,218 49,120

Net debt at the end of the period 8,694 12,924 9,120

Capital employed at the end of the period 65,015 65,142 58,240

Average capital employed 65,079 61,691 58,968

Underlying return on capital employed 26.1% 20.6% 27.2 %

1. For more information refer to Financial Statements note 3 ‘Exceptional items’.

Underlying return on capital employed (ROCE) by segment

Year ended 30 June 2026

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

Total Group

Profit after taxation excluding net finance costs and exceptional items 9,643 8,393 (15) (1,028) 16,993

Average capital employed 37,165 15,211 6,205 6,498 65,079

Underlying return on capital employed 26% 55% (0%) − 26.1%

Year ended 30 June 2025

US$M Copper Iron Ore Coal

Group and

unallocated

items/

eliminations

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%

1. Group and unallocated items includes functions, other unallocated operations including Potash, Western Australia Nickel, legacy assets and consolidation adjustments.

Underlying return on capital employed (ROCE) by asset

Year ended

30 June 2026

US$M Antamina Escondida

Western

Australia

Iron Ore

Pampa

Norte

Copper

South

Australia

BHP

Mitsubishi

Alliance

Western

Australia

Nickel ¹ Potash²

Ne w South

Wales

Energy

Coa l ³ Other

Total

Group

Profit after taxation

excluding net finance

costs and exceptional

items 971 6,390 8,545 751 1,714 127 (283) (337) (6) (879) 16,993

Average capital

employed 1,651 12,125 20,901 4,680 16,069 6,360 (219) 8,623 (162) (4,949) 65,079

Underlying return on

capital employed 59% 53% 41% 16% 11% 2% − − − − 26.1%

Year ended

30 June 2025

US$M Antamina Escondida

Western

Australia

Iron Ore

Pampa

Norte

Copper

South

Australia

BHP

Mitsubishi

Alliance

Western

Australia

Nickel ¹ Potash²

New South

Wales

Energy

Coal ³ Other

Total

Group

Profit after taxation

excluding net finance

costs and exceptional

items 505 4,144 8,579 469 846 67 (684) (331) 76 (961) 12,710

Average capital

employed 1,513 11,213 19,890 4,353 15,282 6,564 (11) 7,3 24 (50) (4,387) 61,691

Underlying return on

capital employed 33% 37% 43% 11% 6% 1% − − − − 20.6%

1. Western Australia Nickel ROCE has not been shown following transition into temporary suspension in December 2024.

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.

38 BHP Annual Report 2026

Unit costs

Unit costs do not include the re‑allocation to assets in FY2025 and FY2026 of the costs associated with the employee entitlements and allowances review

conducted in FY2023, which were reported in Group and Unallocated in that period.

The calculation of Escondida, Spence and Copper South Australia unit costs are set out in the table below.

US$M

Escondida unit costs Spence unit costs

Copper South

Australia unit costs

FY2026 FY2025 FY2026 FY2025 FY2026 FY2025

Revenue 17,054 13,177 2,857 2,726 6,011 4,655

Underlying EBITDA 12,440 8,593 1,619 1,296 3,203 1,936

Gross costs 4,614 4,584 1,238 1,430 2,808 2,719

Less: by‑product credits 1,328 754 191 134 2,316 1,682

Less: freight 226 224 50 51 30 28

Less: government royalties 158 124 − − 242 166

Less: re‑allocation of costs associated with the

employee entitlements and allowances review

− − − − 3 2

Net costs 2,902 3,482 997 1,245 217 841

Sales (kt) 1,232 1,324 210 273 303 324

Sales (Mlb) 2,715 2,918 464 602 669 713

Cost per pound (US$)

1.07 1.19 2.15 2.07 0.32 1.18

1. FY2026 based on average realised exchange rates of USD/CLP 920 (FY2025 USD/CLP 951) and on an average realised exchange rate of AUD/USD 0.68 (FY2025 AUD/USD 0.65).

The calculation of WAIO and BMA unit costs are set out in the table below.

US$M

WAIO unit costs BMA unit costs

FY2026 FY2025 FY2026 FY2025

Revenue 23,726 22,767 3,876 3,422

Underlying EBITDA 14,667 14,394 702 591

Gross costs 9,059 8,373 3,174 2,831

Less: freight 2,357 2,004 63 28

Less: government royalties 1,696 1,612 609 530

Less: re‑allocation of costs associated with the employee entitlements and allowances review 6 28 3 1

Net costs 5,000 4,729 2,499 2,272

Sales (kt, equity share) 254,377 254,813 18,642 17,8 20

Cost per tonne (US$)

19.66 18.56 134.05 127. 5 0

1. FY2026 based on an average realised exchange rate of AUD/USD 0.68 (FY2025 AUD/USD 0.65).

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

8 Non-IFRS financial information continued

8.1 Definition and calculation of non‑IFRS financial information

Non-IFRS

financial information

Reasons why we believe the non-IFRS

financial information is useful Calculation methodology

Underlying attributable profit Allows the comparability of underlying financial performance

by excluding the impacts of exceptional items and is also the

basis on which our dividend payout ratio policy is applied.

Profit after taxation attributable to BHP shareholders excluding

any exceptional items attributable to BHP shareholders.

Underlying basic earnings

per share

On a per share basis, allows the comparability of underlying

financial performance by excluding the impacts of

exceptional items.

Underlying attributable profit divided by the weighted basic

average number of shares.

Underlying EBITDA Used to help assess current operational profitability

excluding the impacts of sunk costs (i.e. depreciation from

initial investment). Each is a measure that management

uses internally to assess the performance of the Group’s

segments and make decisions on the allocation of resources.

Earnings before net finance costs, depreciation, amortisation

and impairments, taxation expense, Discontinued operations

and exceptional items. Underlying EBITDA includes BHP’s

share of profit/(loss) from investments accounted for using

the equity method, including net finance costs, depreciation,

amortisation and impairments and taxation expense/(benefit).

Underlying EBITDA margin Underlying EBITDA excluding third‑party product EBITDA,

divided by revenue excluding third‑party product revenue.

Underlying EBIT Used to help assess current operational profitability

excluding net finance costs and taxation expense (each

of which are managed at the Group level) as well as

Discontinued operations and any exceptional items.

Earnings before net finance costs, taxation expense,

Discontinued operations and any exceptional items.

Underlying EBIT includes BHP’s share of profit/(loss)

from investments accounted for using the equity method,

including net finance costs and taxation expense/(benefit).

Profit from operations Earnings before net finance costs, taxation expense and

Discontinued operations. Profit from operations includes

Revenue, Other income, Expenses excluding net finance

costs and BHP’s share of profit/(loss) from investments

accounted for using the equity method, including net finance

costs and taxation expense/(benefit).

Capital and exploration

expenditure

Used as part of our Capital Allocation Framework to assess

efficient deployment of capital. Represents the total outflows

of our operational investing expenditure.

Purchases of property, plant and equipment and exploration

and evaluation expenditure.

Free cash flow It is a key measure used as part of our Capital Allocation

Framework. Reflects our operational cash performance

inclusive of investment expenditure, which helps to highlight

how much cash was generated in the period to be available

for the servicing of debt and distribution to shareholders.

Net operating cash flows less net investing cash flows.

Net debt Net debt shows the position of gross debt less index‑linked

freight contracts offset by cash immediately available to

pay debt if required and any associated derivative financial

instruments. Liability associated with index‑linked freight

contracts, which are required to be remeasured to the

prevailing freight index at each reporting date, are excluded

from the net debt calculation due to the short‑term volatility

of the index they relate to not aligning with how the Group

uses net debt for decision‑making in relation to the Capital

Allocation Framework. Net debt includes the fair value of

derivative financial instruments used to hedge cash and

borrowings to reflect the Group’s risk management strategy

of reducing the volatility of net debt caused by fluctuations in

foreign exchange and interest rates.

Net debt, along with the gearing ratio, is used to monitor the

Group’s capital management by relating net debt relative to

equity from shareholders.

Interest bearing liabilities less liability associated with

index‑linked freight contracts less cash and cash equivalents

less net cross currency and interest rate swaps less net

cash management related instruments for the Group at the

reporting date.

Gearing ratio Ratio of Net debt to Net debt plus Net assets.

Net operating assets Enables a clearer view of the assets deployed to generate

earnings by highlighting the net operating assets of the

business separate from the financing and tax balances.

This measure helps provide an indicator of the underlying

performance of our assets and enhances comparability

between them.

Operating assets net of operating liabilities, including

the carrying value of equity accounted investments and

predominantly excludes cash balances, loans to associates,

interest bearing liabilities, derivatives hedging our net debt,

streaming arrangement liability, assets held for sale, liabilities

directly associated with assets held for sale and tax balances.

Underlying return on capital

employed (ROCE)

Indicator of the Group’s capital efficiency and is provided

on an underlying basis to allow comparability of underlying

financial performance by excluding the impacts of

exceptional items.

Profit after taxation excluding exceptional items and net finance

costs (after taxation) divided by average capital employed.

Profit after taxation excluding exceptional items and net

finance costs (after taxation) is profit after taxation excluding

exceptional items, net finance costs and the estimated

taxation impact of net finance costs. These are annualised

for a half year end reporting period.

The estimated tax impact is calculated using a prima facie

taxation rate on net finance costs (excluding any foreign

exchange impact).

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.

40 BHP Annual Report 2026

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 FY2025 and FY2026 of

the costs associated with the employee entitlements and

allowances review in FY2023 are excluded in asset unit

costs as these costs were already recognised in Group

and Unallocated in FY2023.

Escondida, Spence and Copper South Australia unit costs are

adjusted to:

– include by‑product credits being the favourable impact

of by‑products (such as gold or silver) to determine the

directly attributable costs of copper production

– exclude government royalties, as these are costs that are

not deemed to be under the Group’s control and the Group

believes exclusion provides a similar basis of comparison

to our peer group

WAIO and BMA unit costs exclude:

– government royalties, as these are costs that are not

deemed to be under the Group’s control and the Group

believes exclusion provides a similar basis of comparison

to our peer group

8.2 Definition and calculation of principal factors

The method of calculation of the principal factors that affect the period on period movements of Revenue, Profit from operations and Underlying EBITDA

are as follows:

Principal factor Method of calculation

Change in sales prices Change in average realised price for each operation from the prior period to the current period, multiplied by current period

sales volumes.

Price‑linked costs Change in price‑linked costs per sales volume (mainly royalties) for each operation from the prior period to the current

period, multiplied by current period sales volumes.

Change in volumes Change in sales volumes for each operation multiplied by the prior year average realised price less variable unit cost.

Controllable cash costs Total of operating cash costs and exploration and business development costs.

Operating cash costs Change in total costs, other than price‑linked costs, exchange rates, inflation on costs, fuel, energy and consumable price

movements, non‑cash costs and one‑off items as defined below for each operation from the prior period to the current period.

Exploration and evaluation and

business development

Exploration and evaluation and business development expense in the current period minus exploration and evaluation and

business development expense in the prior period.

Exchange rates Change in exchange rate multiplied by current period local currency revenue and expenses.

Inflation on costs Current year inflation rate applied to prior year expenses, other than depreciation and amortisation, price‑linked costs,

exploration and business development expenses, expenses in ceased and sold operations and expenses in new and

acquired operations.

Fuel, energy and consumable

price movements

Fuel and energy expense and price differences above inflation on consumables in the current period minus fuel and energy

expense in the prior period.

Non‑cash Change in net impact of capitalisation and depletion of deferred stripping from the prior period to the current period.

One‑off items Change in costs exceeding a pre‑determined threshold associated with an unexpected event that had not occurred in the last

two years and is not reasonably likely to occur within the next two years.

Asset sales Profit/(loss) on the sale of assets or operations in the current period minus profit/(loss) on sale of assets or operations in the

prior period.

Ceased and sold operations Underlying EBITDA for operations that ceased (including temporary suspension) or were sold in the current period minus

Underlying EBITDA for operations that ceased (including temporary suspension) or were sold in the prior period.

New and acquired operations Underlying EBITDA for operations that were acquired in the current period minus Underlying EBITDA for operations that

were acquired in the prior period.

Share of profit/(loss) from equity

accounted investments

Share of profit/(loss) from equity accounted investments for the current period minus share of profit/(loss) from equity

accounted investments in the prior period.

Other Variances not explained by the above factors.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

9.1 Our sustainability approach

Our sustainability approach is defined by our purpose and

our values and governed by our relevant Global Standards.

These standards outline minimum mandatory requirements

and underpin sustainability performance across our operated

assets and functions.

External versions of these Global Standards and BHP’s

sustainability website pages are available at bhp.com

Sustainability-related standards and disclosures

We have implemented the Australian Accounting Standards Board’s

Australian Sustainability Reporting Standard AASB S2: Climate-related

Disclosures (AASB S2) in FY2026 reporting (in our Sustainability

Report included in this Annual Report). This builds on our existing

sustainability disclosures including the Taskforce on Climate‑related

Financial Disclosures (TCFD) required under UK Listing Rules.

Our sustainability‑related disclosures in this Annual Report, in the

BHP ESG Standards and Databook 2026 and on our website also

support our commitments as members of the International Council

on Mining and Metals (ICMM), including reporting with reference

to the Global Reporting Initiative (GRI).

BHP continues to be assured against comprehensive sustainability

performance standards. In FY2026, all applicable in‑scope assets in

Australia completed external validation against the relevant standards set

out by the ICMM, Towards Sustainable Mining (Australia) and the Copper

Mark. We also released our fourth set of key disclosures against the

Global Industry Standard for Tailings Management (GISTM). BHP remains

actively engaged in the Consolidated Mining Standard Initiative (CMSI)

to consolidate and improve existing industry performance standards.

For more information on the standards we have reported against, our approach

to sustainability standards and our tailings disclosures, see our Value chain

sustainability and Tailings storage facility pages at bhp.com/sustainability

and the BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026

Presentation of sustainability-related data and

information for acquisitions and divestments

For comparative period sustainability‑related data and information

included in the OFR, unless expressly stated otherwise in the relevant

section (i) FY2024 data and information includes the former OZ Minerals

operations that form part of our Copper South Australia asset and

the West Musgrave Project (acquired as part of BHP’s acquisition of

OZ Minerals on 2 May 2023); (ii) data and information for pre‑FY2024

comparative periods has not been adjusted and restated in relation to

the former OZ Minerals’ operations and functions; and (iii) data and

information for pre‑FY2025 comparative periods has been adjusted and

restated to exclude the Daunia and Blackwater mines, which were divested

by BMA on 2 April 2024. Where comparative sustainability‑related data

and information in the OFR section of this Annual Report is provided

for FY2022, unless expressly stated otherwise, it has been adjusted

and restated to exclude our interest in BHP Mitsui Coal (divested on

3 May 2022) and our Petroleum business (merger with Woodside

completed on 1 June 2022).

While some of the land and tenements related to the Daunia and

Blackwater mines were held by BMA pending transfer following

completion, and certain land areas overlapping Blackwater remain held

by BMA subject to transfer, given the Daunia and Blackwater mines were

not under BMA’s control or operated for BMA’s benefit (except for periods

prior to completion or where expressly stated in the relevant section),

FY2025 and FY2026 data related to the land and tenements has been

excluded from the OFR (as well as from pre‑FY2025 comparative periods,

as described above).

Sustainability‑related data and information relating to the OZ Minerals

Brazil assets has been excluded from the OFR unless expressly stated

otherwise in the relevant section. Where data from OZ Minerals Brazil

assets is included as required to meet legal and regulatory requirements

or as necessary to meet applicable voluntary standards and benchmarks,

that data has been prepared in accordance with former OZ Minerals

standards (i) for the Centro Gold assets until completion of their divestment

on 20 December 2024 and such data is included up until that date only;

and (ii) for the Carajás assets until completion of their divestment on

2 April 2026 and such data is included up until that date only.

9 Sustainability

42 BHP Annual Report 2026

9.2 Material sustainability topics

As a member of the ICMM, BHP undertakes an impact

materiality assessment (aligned with the GRI) to determine

which sustainability topics are most material to our

business, partners and stakeholders for inclusion in our

sustainability‑related reporting. Separately, BHP is required

to report climate‑related financial information in accordance

with the Australian Corporations Act 2001 and AASB S2.

The FY2026 material sustainability topics identified for disclosure are

largely consistent with FY2025, except that tailings storage facilities

and value chain sustainability are not included for FY2026.

We recognise the importance of these topics to our business and

stakeholders, and we disclose information about these topics on the

BHP website. This includes a standalone report on our conformance

with GISTM and our performance against the responsible sourcing and

production standards we assess against such as Towards Sustainable

Mining and the Copper Mark. This also includes the independent

assurance reports detailing our performance against select criteria.

Additionally, economic contribution was identified as a new material

sustainability topic for FY2026.

For more information on tailings storage facilities, value chain sustainability

and economic contribution see our Value chain sustainability and

Tailings storage facility pages at bhp.com/sustainability, the BHP

Responsible Minerals Program Report 2026 at bhp.com/RMPR2026,

the BHP Group Modern Slavery Statement 2026 at bhp.com/MSS2026

and the BHP Economic Contribution Report 2026 at bhp.com/ECR2026

For more information on BHP’s reporting on climate‑related financial

information under the Australian Corporations Act 2001 and AASB S2

refer to Sustainability Report

For more information on the process by which we identify and manage

risk at BHP and our risk factors refer to OFR 6

Respecting human rights

We recognise that respect for human rights is interconnected across

the material sustainability topics identified in our impact materiality

assessment. We have the potential to cause, contribute to or be directly

linked to human rights impacts through our activities and business

relationships, and we are committed to conducting human rights due

diligence across our own operations and in our supply chain.

Following our FY2025 assessment against the ICMM Human Rights

Due Diligence Guidance Maturity Matrix, we established a three‑year

strategic improvement plan to strengthen our human rights approach.

As a foundational element, in FY2026 we commenced an enterprise‑wide

Human Rights Saliency Assessment to identify and prioritise the most

severe risks to people across our growth, operated assets and commercial

portfolios. This was supported by a more targeted workforce diagnostic

and community and Indigenous peoples human rights risk assessments

at our operated assets (referenced in FY2025 as community and human

rights impact and opportunity assessments). Once complete, these

initiatives are intended to provide a structured basis for human rights risk

prioritisation and inform our forward program to manage these risks.

For more information on our approach to human rights and managing

modern slavery risks in our operations and supply chain refer to

the BHP Group Modern Slavery Statement 2026 available at

bhp.com/MSS2026

For more information on due diligence under our Responsible Minerals

Program refer to the BHP Responsible Minerals Program Report 2026

at bhp.com/RMPR2026

9.3 2030 goals and social value scorecard

Our social value scorecard

Our FY2026 scorecard performance, updates to metrics, and short‑term

milestones for FY2027 for all the pillars are provided on pages 44 and 45.

For more information on our progress and pathway to our 2030 goals

for each pillar refer to the relevant sections of OFR 9

For more information on how the key metrics and milestones support

progress towards our 2030 goals and the methods we use to measure

progress refer to the BHP ESG Standards and Databook 2026 available

at bhp.com/ESGSD2026

Material topics and impacts for sustainability reporting

Social value pillar Material topics For more information

Climate

change

OFR 6

OFR 9.10

Sustainability Report

Decarbonisation

Nature and

environmental

performance

OFR 9.9

Healthy

environment

Indigenous

peoples

OFR 9.8

Indigenous

partnerships

Safety

People

Health

OFR 1, OFR 6

OFR 6, OFR 9.4

OFR 6, OFR 9.5

Safe, inclusive

and future‑ready

workforce

Community

OFR 9.7

Thriving,

empowered

communities

Responsible Minerals

Program Report 2026

bhp.com/RMPR2026

Modern Slavery

Statement 2026

bhp.com/MSS2026

Responsible

supply chains

Other

Economic

contribution

Economic Contribution

Report 2026

bhp.com/ECR2026

OFR 6

Ethics and

business

conduct

OFR 9.6

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

9 Sustainability continued

2030 goals Key metrics Key metrics from FY2027

Short-term milestones

FY2026 progress

Short-term milestones

FY2027

33%

reduction in operational GHG emissions

(Scopes 1 and 2 emissions from our operated

assets) from FY2020

46%

reduction in GHG emissions intensity

of BHP‑chartered shipping of our products

from CY2008

$186m

committed in steelmaking partnerships

and ventures to date (US$)

reduction in operational GHG emissions

(Scopes 1 and 2 emissions from our operated

assets) from FY2020

reduction in GHG emissions intensity of

BHP‑chartered shipping of our products

from CY2008

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

Continue to progress execution

of proof‑of‑concept trials for

battery‑electric equipment

at WAIO

Achieve 100% renewable

electricity at BMA based

on forecasted operational

electricity demand

Complete the Escondida Boiler

Diesel Displacement project

Progress modified blast furnace

and direct reduced iron‑electric

smelting furnace pathways 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

OFR 9.10 Climate change,

Sustainability Report

246k Ha (3.8%

)

area under stewardship

that has a formal

management plan that includes conservation,

restoration or regenerative practices

assets with natural capital account

#Ha (%

)

area under stewardship

that has a formal

management plan that includes conservation,

restoration or regenerative practices

assets with natural capital account

Deliver 95% of the FY2026 actions

in the water stewardship priorities

– water quality and context‑based

water targets

42% of Healthy environment

goal hectares in plan

or under

conservation, restoration or

regenerative practices.

6 Healthy environment goal

projects (in total) with formal

Indigenous and/or community

engagement or partnership plans

3 assets (in total) with natural

capital accounts

Healthy environment

Contribute to global nature‑positive

action

by having at least 2 million hectares of land

and water we steward

6,7

under conservation,

restoration or regenerative practices. This is

an area approximately equivalent to 30% of the

land and water we stewarded

as at FY2023.

In doing so we will take into account areas of

highest ecosystem value both within and outside

our own operational footprint, in partnership

with Indigenous peoples and local communities.

OFR 9.9 Nature and environmental

performance

Indigenous employee participation

9.3% Australia

20.2% Canada

11.7% Chile

$1,007m Indigenous procurement spend (US$)

Progress to plan

Australia Canada Chile

Present relationship health

Indigenous employee participation

% Australia

% Canada

% Chile

$ Indigenous procurement spend (US$)

Progress to plan

Australia Canada Chile

Present relationship health

Deliver FY2026 commitments

outlined in Australian

Reconciliation Action Plan

and Canada Indigenous

Partnership Plan

Deliver commitments outlined

in the co‑designed Australia

Reconciliation Action Plan,

the Canada Indigenous

Partnerships Plan and the

Chile Indigenous Peoples 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 9.8 Indigenous peoples

88%

Engagement and Perception

Survey wellbeing score

41.5%

female employee

representation

Engagement and Perception

Survey Inclusion Index

female employee

representation

Improvement on high potential

injury frequency rate from

FY2025

Establish cultural diversity

baseline

High potential injury frequency

rate year‑on‑year improvement

Safe, inclusive and

future-ready workforce

A thriving workforce that is safe, healthy,

gender balanced at every level, culturally

diverse

and inclusive and skilled for

the future.

OFR 1 Safety, OFR 9.4 People,

OFR 9.5 Health

education and skills programs supported

$50.8bn

total economic contribution (US$)

education and skills programs supported

total economic contribution (US$)

Develop and implement training

and tools on community co‑creation

Develop outcomes‑based

indicators for local community

programs in key themes

Thriving, empowered communities

Partner with communities and stakeholders

to co‑create and implement plans that

deliver jointly defined economic, social

and environmental outcomes.

OFR 9.7 Community

100%

of producing

BHP operated assets assessed

with external verification against a credible

responsible production and sourcing standard

verification and assurance activities conducted

by third parties in relation to BHP’s ethical trade

audit program

supplier participating in BHP’s pilot

impact project

of in scope

BHP operated assets assessed

with external verification against a credible

responsible production and sourcing standard

verification and assurance activities conducted

by third parties in relation to BHP’s ethical trade

audit program

suppliers participating in BHP’s pilot impact project

All in‑scope BHP operated assets

assessed and complete external

verification against the relevant

Towards Sustainable Mining (TSM)

Protocols

Progress Consolidated

Mining Standard Initiative

(CMSI) transition at in scope

operated assets

Expand impact project to

cover greater representation

of high‑risk suppliers

Responsible supply chains

Together with our partners, we create

sustainable, ethical and transparent

supply chains.

BHP Group Modern Slavery

Statement 2026

BHP Responsible Minerals

Program Report 2026

Indicators:

On trackImproved

No change/data not available

Not on track

Complete

New/revised

Partially met

PLANET PEOPLE PROSPERITY Social value scorecard

44 BHP Annual Report 2026

Not met

Social value scorecard footnotes

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,

GHG emissions boundaries, measurement approach and adjustments for our targets

and goals, refer to Sustainability Report 5.2 Climate‑related targets and 7 Basis

of preparation, interpretation and GHG emissions calculation methodology.

3. Baseline year and performance data adjusted; for the adjustments we make,

refer to Sustainability Report 5.2 Climate‑related targets.

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 adjusted; for

the adjustments we make, refer to Sustainability Report 5.2 Climate‑related targets.

5. Excluding in‑kind contributions. For more information on removal of this metric from

the key metrics for FY2027, refer to the BHP ESG Standards and Databook 2026

Social value scorecard tab available at bhp.com/ESGSD2026

6. It may include areas we stewarded for a period between FY2023 and FY2030 but

have relinquished to a third party with the requisite expertise, and under conditions that

create a high likelihood of durability of ongoing conservation, restoration or regenerative

management practice.

7. Excludes areas held under greenfield exploration licences (or equivalent tenements),

which are outside the area of influence of our existing mine operations.

8. During FY2026, BHP updated the wording of the Healthy environment goal and one

associated key metric. This scorecard includes the revised wording for the goal and

metric (including for our FY2026 scorecard performance). For more information on

the updates and the reason for them refer to OFR 9.9.

9. The percentage metric measures progress towards having an area approximately

equivalent to 30 per cent of the land and water stewarded by BHP as at FY2023

(excluding areas held under greenfield exploration licences (or equivalent tenements),

which are outside the area of influence of our existing mine operations) under

conservation, restoration or regenerative practices by FY2030. For more information

refer to the BHP ESG Standards and Databook 2026 Social value scorecard tab

available at bhp.com/ESDG2026

10. 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.

11. ‘In plan’ refers to Healthy environment goal hectares that have progressed from

opportunity identification into project development, including management planning

and Indigenous and/or community engagement. These hectares are not yet under

a formal management plan. For more information refer to OFR 9.9.

12. Point in time data at 30 June 2026.

13. 9.3 per cent refers to Indigenous employee participation at Minerals Australia

operations. Total Indigenous employee participation in Australia, including

non‑operational roles, was 8.5 per cent at 30 June 2026.

14. 20.2 per cent refers to Indigenous employee participation at Minerals Americas

potash operations in Canada.

15. 11.7 per cent refers to Indigenous employee participation at Minerals Americas

operations in Chile.

16. We have published regional Indigenous Peoples Plans in Australia, Canada and Chile.

For more information refer to OFR 9.8.

17. 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.

18. Cultural diversity in our workforce will be measured based on our substantive

progress towards reflecting the cultural diversity of the societies where we operate.

19. 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.

20. Community programs delivered in partnership with local communities and focused on

the education and skills required to enable communities to remain resilient beyond our

direct involvement, including workforce and vocational pathways as well as community

leadership, self‑governance and co‑creation capability. Some program participants may

join the BHP workforce on completion of the program.

21. This includes contribution to suppliers, wages and benefits for employees, dividends,

taxes, royalties, other payments to governments and our voluntary social investment.

For more information refer to the BHP Economic Contribution Report 2026 available

at bhp.com/ECR2026

22. A ‘credible responsible production and sourcing standard’ refers to one that is

internationally recognised spanning multiple regions as outlined in our Value chain

sustainability webpage available at bhp.com/sustainability/value‑chain‑sustainability.

All of BHP’s applicable producing operated assets have been assessed with external

verification against a credible responsible production and sourcing standard, noting

NSWEC, Western Australia Nickel and former OZ Minerals Assets are not in the scope

of this metric for FY2026.

23. 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 2026 available at bhp.com/MSS2026

24. 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.

25. ‘In‑scope’ BHP operated assets (relating to the FY2026 milestone) refers 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. This excludes Western Australia Nickel operations, which

remained in temporary suspension in FY2026 and so did not go through assessment

and verification. For more information refer to the BHP ESG Standards and Databook

2026 Mining Standards tab available at bhp.com/ESGSD2026

26. ‘In scope’ BHP operated assets (relating to the FY2027 milestone) refers to BHP

operated assets in production excluding BHP operated assets under care and

maintenance or planned for closure which would not go through assessment and

verification. For more information refer to the BHP ESG Standards and Databook

2026 Mining Standards tab available at bhp.com/ESGSD2026

2030 goals Key metrics Key metrics from FY2027

Short-term milestones

FY2026 progress

Short-term milestones

FY2027

33%

reduction in operational GHG emissions

(Scopes 1 and 2 emissions from our operated

assets) from FY2020

46%

reduction in GHG emissions intensity

of BHP‑chartered shipping of our products

from CY2008

$186m

committed in steelmaking partnerships

and ventures to date (US$)

reduction in operational GHG emissions

(Scopes 1 and 2 emissions from our operated

assets) from FY2020

reduction in GHG emissions intensity of

BHP‑chartered shipping of our products

from CY2008

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

Continue to progress execution

of proof‑of‑concept trials for

battery‑electric equipment

at WAIO

Achieve 100% renewable

electricity at BMA based

on forecasted operational

electricity demand

Complete the Escondida Boiler

Diesel Displacement project

Progress modified blast furnace

and direct reduced iron‑electric

smelting furnace pathways 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

OFR 9.10 Climate change,

Sustainability Report

246k Ha (3.8%

)

area under stewardship

that has a formal

management plan that includes conservation,

restoration or regenerative practices

assets with natural capital account

#Ha (%

)

area under stewardship

that has a formal

management plan that includes conservation,

restoration or regenerative practices

assets with natural capital account

Deliver 95% of the FY2026 actions

in the water stewardship priorities

– water quality and context‑based

water targets

42% of Healthy environment

goal hectares in plan

or under

conservation, restoration or

regenerative practices.

6 Healthy environment goal

projects (in total) with formal

Indigenous and/or community

engagement or partnership plans

3 assets (in total) with natural

capital accounts

Healthy environment

Contribute to global nature‑positive

action

by having at least 2 million hectares of land

and water we steward

6,7

under conservation,

restoration or regenerative practices. This is

an area approximately equivalent to 30% of the

land and water we stewarded

as at FY2023.

In doing so we will take into account areas of

highest ecosystem value both within and outside

our own operational footprint, in partnership

with Indigenous peoples and local communities.

OFR 9.9 Nature and environmental

performance

Indigenous employee participation

9.3% Australia

20.2% Canada

11.7% Chile

$1,007m Indigenous procurement spend (US$)

Progress to plan

Australia Canada Chile

Present relationship health

Indigenous employee participation

% Australia

% Canada

% Chile

$ Indigenous procurement spend (US$)

Progress to plan

Australia Canada Chile

Present relationship health

Deliver FY2026 commitments

outlined in Australian

Reconciliation Action Plan

and Canada Indigenous

Partnership Plan

Deliver commitments outlined

in the co‑designed Australia

Reconciliation Action Plan,

the Canada Indigenous

Partnerships Plan and the

Chile Indigenous Peoples 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 9.8 Indigenous peoples

88%

Engagement and Perception

Survey wellbeing score

41.5%

female employee

representation

Engagement and Perception

Survey Inclusion Index

female employee

representation

Improvement on high potential

injury frequency rate from

FY2025

Establish cultural diversity

baseline

High potential injury frequency

rate year‑on‑year improvement

Safe, inclusive and

future-ready workforce

A thriving workforce that is safe, healthy,

gender balanced at every level, culturally

diverse

and inclusive and skilled for

the future.

OFR 1 Safety, OFR 9.4 People,

OFR 9.5 Health

education and skills programs supported

$50.8bn

total economic contribution (US$)

education and skills programs supported

total economic contribution (US$)

Develop and implement training

and tools on community co‑creation

Develop outcomes‑based

indicators for local community

programs in key themes

Thriving, empowered communities

Partner with communities and stakeholders

to co‑create and implement plans that

deliver jointly defined economic, social

and environmental outcomes.

OFR 9.7 Community

100%

of producing

BHP operated assets assessed

with external verification against a credible

responsible production and sourcing standard

verification and assurance activities conducted

by third parties in relation to BHP’s ethical trade

audit program

supplier participating in BHP’s pilot

impact project

of in scope

BHP operated assets assessed

with external verification against a credible

responsible production and sourcing standard

verification and assurance activities conducted

by third parties in relation to BHP’s ethical trade

audit program

suppliers participating in BHP’s pilot impact project

All in‑scope BHP operated assets

assessed and complete external

verification against the relevant

Towards Sustainable Mining (TSM)

Protocols

Progress Consolidated

Mining Standard Initiative

(CMSI) transition at in scope

operated assets

Expand impact project to

cover greater representation

of high‑risk suppliers

Responsible supply chains

Together with our partners, we create

sustainable, ethical and transparent

supply chains.

BHP Group Modern Slavery

Statement 2026

BHP Responsible Minerals

Program Report 2026

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

9.4 People

Our global workforce is central to our performance and

long‑term success.

Building capability and an enabled culture

We invest in our people to build capability and drive stronger performance.

We provide early career and training pathways, including maintenance

and production traineeships and apprenticeships, and continue to invest

in professional talent through our intern and graduate programs. We also

deliver leadership development programs and forums to strengthen

leadership capability across our business.

We seek regular feedback from our employees and contractors through

twice‑yearly engagement and perception surveys. In March 2026,

we had an 87 per cent employee response rate, with 83 per cent of

surveyed employees responding favourably to engagement questions

(FY2025: 83 percent). For wellbeing questions, 88 per cent of surveyed

employees responded favourably (FY2025: 88 per cent). Over 11,000

contractors also provided feedback, with 84 per cent of surveyed contractors

responding that they feel safe working at BHP (FY2025: 86 per cent).

Safe, inclusive and respectful workplaces

We believe inclusion is the foundation of a safe, respectful and

high‑performing workplace, and we value diversity for the breadth of

perspectives and experience it brings. Our Inclusion Position Statement

reflects this commitment and guides our approach.

For more information on BHP’s Inclusion Position Statement refer to

our Inclusion and diversity page at bhp.com/careers/inclusion‑diversity

Gender representation

1,2,3

At 30 June 2026, women represented 41.5 per cent of our employee

workforce, an increase of 0.2 percentage points compared to the end

of FY2025. In FY2026, 47.4 per cent of new hires were women.

We are also committed to improving the gender representation at all

levels of BHP taking into account applicable local law. In FY2026, we set

a measurable objective for achieving a year‑on‑year increase of women

in leadership roles in Minerals Australia operations. At 30 June 2026,

women represented 32.5 per cent of leadership roles in Minerals Australia,

an increase of 3.5 percentage points compared to the end of FY2025.

Across BHP, 39.3 per cent of people leaders were women, while senior

executives included 42.1 per cent women.

Equitable pay is critical to achieving gender equality. We continue efforts

to reduce the risk of systemic bias and deliver equitable pay for like‑for‑like

roles. Employee remuneration data, including gender breakdowns,

is disclosed in the BHP ESG Standards and Databook 2026, available

at bhp.com/ESGSD2026.

1. Based on a ‘point in time’ snapshot of employees as at 30 June 2026, including employees on extended absence. Contractor data is collected from internal

organisation systems and averaged for a 10‑month period, July 2025 to April 2026.

2. Based on a ‘point in time’ snapshot of employees as at 30 June 2026, including employees on extended absence, as used in internal management reporting.

3. New hires are based on a 12‑month period from 1 July 2025 to 30 June 2026. ‘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.

Gender composition of employees, leaders and the Board

1,2,3

FY2025

FY2024

FY2026

Male

Female

Employees People leaders

Executive Leadership Team

Board members

58.5%

41.5%

58.7%

41.3 %

62.9%

37.1%

39.3%

60.7%

63.5%

36.5%

68.3%

31.7%

50%

60%

40%

56%

44%

60%

40%

9 Sustainability continued

Indigenous employment

Indigenous employee participation is a key commitment we have made

in every significant operating region. In FY2026, Minerals Americas

operations in Chile increased their Indigenous employee participation to

11.7 per cent, having achieved their target of 10 per cent in FY2024, and in

our Canada potash operations, Indigenous employee participation reached

20.2 per cent, achieving the FY2026 target of 20 per cent. In Minerals

Australia operations, we achieved the measurable objective set for FY2026

of 9.3 per cent and we are progressing towards our FY2027 target of

9.7 per cent (see the below infographic).

Indigenous employee participation

1,2

Time period

Target

30 June 2026

YoY increase

Minerals Americas operations employees in Chile

By end of FY2025

10.0 11.7 1.2

Minerals Australia operations employees in Australia

By end of FY2027

9.7 9.3 0.3

Canada potash operations employees in Canada

By end of FY2026

20.0 20.2 2.4

1. Point in time data at 30 June 2026.

2. Indigenous employee participation overall in Australia at 30 June 2026 was 8.5 per cent,

including Minerals Australia operations at 9.3 per cent Indigenous, and non‑operational

locations at 2.4 per cent Indigenous.

Disability

Globally, we continued to progress our Disability Action Plan 2025–2027.

In Chile, people with a disability represented 2.8 per cent of our

workforce (as at 30 June 2026). Chilean legislation requires at least

1 per cent representation.

For more information on BHP’s Disability Action Plan refer to our case

study at bhp.com/news/case‑studies/2025/08/empowering‑abilities

Employee relations

In Australia, recent industrial relations legislative reforms, including

changes to enterprise bargaining and regulated labour hire arrangement

orders, continued to impact BHP during FY2026.

Enterprise bargaining and union activity increased during FY2026,

particularly in the Pilbara. Negotiations commenced for an enterprise

agreement covering BHP’s operations at Port Hedland in Western

Australia. Unions also lodged five Majority Support Determination

applications, and union officials exercised rights of entry to workplaces

at high levels. No production or operational time was lost as a result

of protected industrial action during FY2026.

46 BHP Annual Report 2026

Subsequent to 30 June 2026, a small number of employees at Port Hedland

exercised their right to participate in protected industrial action, organised

by the Australian Manufacturing Workers’ Union, the Electrical Trades Union

and the Australian Workers’ Union. Bargaining remains underway into

FY2027 and progress continues to be made.

During the year, the Fair Work Commission issued Regulated Labour

Hire Arrangement Orders requiring Operations Services to pay no less

than BMA Enterprise Agreement 2022 rates of pay at BMA’s Goonyella

Riverside, Peak Downs and Saraji mines. BHP sought judicial review of

the decision and in April 2026 the High Court of Australia refused special

leave to appeal, concluding the appeal process in respect of the matter.

Payments to affected employees are being made in accordance with the

Fair Work Commission Orders.

BHP was also served with a representative proceeding in the Federal

Court of Australia regarding work arrangements for public holidays.

The claim was filed on behalf of Operations Services employees who

performed shiftwork between 23 December 2019 and 31 March 2023

across Minerals Australia. The proceeding remains at an early stage.

Minerals Australia participated in seven collective bargaining processes

in total and concluded one enterprise agreement. As at 30 June 2026,

25 enterprise agreements were in operation, with four subject to

bargaining, including the BMA Enterprise Agreement 2022 which covers

employees at BMA’s Goonyella Riverside, Peak Downs and Saraji mines.

Bargaining also commenced for three new agreements.

For more information on bargaining refer to the BHP ESG Standards

and Databook 2026 available at bhp.com/ESGSD2026

Companies in Minerals Americas participated in one collective bargaining

process in FY2026. We also continued to monitor and implement

applicable labour reforms, including pension reform and the gradual

transition to the 40‑hour work week. Further major labour reforms are

expected to stall in Congress following the change of government resulting

from the December 2025 election.

In October 2025, the BHP union federation (FESIN‑BHP) was formed

bringing together Union No.1 of Minera Escondida and Spence Workers,

and Union No. 2 of Supervisors and Staff of Minera Escondida and Minera

Spence. In April 2026, BHP CAS Union (representing specialists at the

Santiago remote operations centre) also joined the BHP union federation.

In addition, Union No 1 is seeking a declaration from the Chilean Labour

Court that certain of our employing entities be treated as a single employer

for labour law purposes. We continue to defend that proceeding, which

remains at an early stage.

Payroll review

Remediation of identified pay issues

In FY2023, we identified and disclosed two issues with certain allowances and

entitlements affecting some current and former employees in Australia. We are

sorry that this happened and we remain committed to making this right.

The first issue involved certain employees having leave incorrectly

deducted on public holidays. Remediation of affected employees is more

than 95 per cent complete and we expect to close out remediation of this

issue in FY2027.

The second issue involved certain employees at WAIO in Port Hedland

who are entitled to additional allowances. We have completed remediation

for this issue.

In 2023, we self‑reported these issues to Australia’s Fair Work

Ombudsman (FWO). In April 2026, BHP received a Notification of

Outcome confirming the FWO has completed its investigation into

these two issues and does not intend to take any further action at this

time. BHP has been issued with a caution and the FWO has advised the

matter regarding the two issues is now finalised.

For more information refer to bhp.com/payroll‑review

During the year, we continued to improve our global pay governance

and control environment, aligned with the Pay Compliance Standard we

launched in May 2025. We delivered enhancements across end‑to‑end

pay processes, systems and data.

We are also continuing our historical pay assurance work across

our Australian operations and are conducting further remediation

where necessary.

Based on currently available information, remediation costs remain as

reflected in the Group’s FY2023 financial results.

Our engagement with the FWO and other relevant government agencies

will continue as this program progresses.

9.5 Health

We set minimum standards to identify, assess and manage

health risks and their potential impacts on our workforce.

Occupational exposures

BHP seeks to eliminate or reduce occupational exposures so far as

reasonably practicable through a structured health risk management

approach. Health hazards are identified and risks assessed having

regard to exposure limits protective of workers health. This is supported

by a comprehensive program of personal monitoring and the ongoing

implementation and verification of controls as we continue to optimise

exposure reduction.

Control implementation is guided by the hierarchy of controls, with

priority given to source‑based exposure reduction before reliance

on administrative controls and personal protective equipment (PPE).

We continue to actively seek opportunities to verify and strengthen

the effectiveness of controls through innovation and optimisation.

Recent initiatives include trials of microbial binding agents at Spence to

agglomerate dust and reduce potential respirable crystalline silica (RCS)

exposure, the increased use of real‑time air monitoring to verify RCS

control effectiveness at Spence and the optimisation of welding fume

capture through on‑torch extraction and local exhaust ventilation at BMA.

While current control arrangements, including mandatory powered air

purifying respirators use, are designed to reduce welding fume exposure,

the focus remains on the optimisation of higher‑order engineering controls

that capture or reduce welding fume at the source.

In FY2026, the number of employees and contractors potentially exposed

to diesel particulate matter (DPM) and respirable crystalline silica (RCS)

decreased by 26 per cent compared with FY2025 (see below infographic).

This was primarily due to monitoring‑led refinement of exposure groups

at Copper South Australia operations, reducing the number of workers

potentially exposed above the occupational exposure limit (OEL) for RCS

by 44 percent and DPM 9 per cent. At Escondida, RCS potential exposure

was reduced by approximately 21 per cent through a series of engineering

and operational controls, including water and air line standardisation,

dust suppression upgrades, and increased use of remote operations.

At Spence, RCS potential exposure decreased by approximately

31 per cent following engineering improvements to the dust collection

system and administrative changes to work allocation.

No employees or contractors were potentially exposed to coal mine dust

above the OEL in FY2026 as has been the case since FY2021.

Exposure numbers reflect potential exposure and do not account for

protection provided by appropriate respiratory protective equipment (RPE).

Potential exposure reduction trend over time

1,2

900

600

300

1,200

1,500

FY2022 FY2023 FY2024 FY2025 FY2026

Coal mine dust exposuresSilica exposures DPM (diesel) exposures

1. Occupational exposure data is presented without considering the protection provided by

the use of respiratory protective equipment (where required as outlined in the Health and

Hygiene Global Standard). The data excludes business and asset projects.

2. As of FY2021, the OEL limit for coal dust was reduced to 1.5 mg/m³ compared to

2.0mg/m³ in previous years.

For more information on BHP’s occupational illness health metrics, including

TROIF, refer to OFR 1 Safety.

For supporting data, including on coal mine dust lung disease cases and

potential occupational exposures, refer to the BHP ESG Standards and

Databook 2026 at bhp.com/ESGSD2026

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

9.6 Ethics and business conduct

Our conduct

Our Code of Conduct (Our Code) applies to everyone who works for us,

with us or on our behalf, including suppliers. Regular mandatory training

on Our Code is undertaken by employees and contractors. Breaching Our

Code is considered misconduct and grounds for disciplinary action, up to

and including termination of employment.

BHP treats reports of business conduct concerns with appropriate

confidentiality and prohibits any kind of retaliation against people who

make or may make a report (including reports to regulators), or who

cooperate with an investigation. All forms of retaliation are considered

misconduct. We have policy and process documents to support a ‘safe

to speak up’ culture, including our BHP Whistleblower Policy.

Our Code is available in five languages and available

at bhp.com/about/operating‑ethically/our‑code

Our BHP Whistleblower Policy sets out additional information,

including protections available to people who make eligible disclosures

under Australian law, and is available at bhp.com/‑media/documents/

ourapproach/operatingwithintegrity/taxandtranspa/rency/240523_

bhpwhistleblowerpolicy

Employees and contractors can raise their concerns through a number of

channels (including anonymously) or through leaders. Anyone, including

external partners, stakeholders and the public, can lodge a concern in the

form of a report, either online in our channels to raise misconduct concerns

or via a 24‑hour, multilingual call service.

In FY2026, 2,563 reports were received into BHP’s channels for raising

misconduct concerns.

1,4

Of these:

– 40 per cent were raised by leaders on behalf of someone else.

– Of the cases raised directly, 43 per cent were made anonymously.

Of the reports closed during FY2026, 36 per cent contained one or

more established allegations.

For more information on BHP’s Minimum requirements for suppliers

refer to bhp.com/suppliers

Business conduct concerns raised in FY2026

1,4

Disrespectful behaviours (including

harassment and bullying) (1,139) 44.4%

Health, safety or environment

breach (430) 16.8%

Sexual harassment (380) 14.8%

Fraud (279) 10.9%

Cybersecurity, data privacy or

intellectual property breach (127) 5.0%

Racial harassment (86) 3.4%

Discrimination (74) 2.9%

Other* (48) 1.8%

* Other: This includes issues such as retaliation for speaking up; failure to report Code of

Conduct breach; consensual relationship with power imbalance; Attempting to identify an

anonymous reporter, ask a question; improper political or governmental conduct.

Anti-corruption

We are committed to contributing to the global fight against corruption

in the resources industry. Group Compliance operates independently of

our assets and regions. Our Vice President of Group Compliance reports

quarterly to the Board Risk and Audit Committee on compliance issues

and meets at least annually with the Risk and Audit Committee Chair.

We manage corruption risk through our anti‑corruption framework and

allocate resources based on risk. Our Group Compliance team conducts

third‑party due diligence and training, performs transaction monitoring

utilising data analytics and AI, provides subject matter‑specific input and

support for non‑operated joint ventures through relevant joint governance

processes consistent with BHP’s role as a shareholder, and conducts risk

assessments for our operated assets and functions. Identifying, assessing

and managing corruption risk associated with growth opportunities

remains a significant focus area.

For more information on our ethics and business conduct refer to

bhp.com/ethics

For more information on how BHP manages anti‑corruption risk

refer to the BHP ESG Standards and Databook 2026 available

at bhp.com/ESGSD2026

Psychosocial harm

BHP has embedded psychosocial risk management within its broader

approach to risk management. Our ongoing focus is on prevention,

early intervention, and sustaining cultural performance.

Psychosocial risks are managed locally by our assets and functions,

supported by overarching enterprise governance and assurance.

We take a prevention‑focused approach with an emphasis on eliminating

psychosocial risks so far as reasonably practicable. We focus on the

early identification and management of psychosocial risks arising from

hazards related to work design or management (such as workload,

fatigue, leadership and organisational change), workplace interactions and

behaviours (including bullying, racial and sexual harassment and assault),

work environment, and plant and equipment.

In FY2026, we:

– uplifted our identification and management of psychosocial risks.

– established a global forum to build internal capability through shared

learnings and improvement opportunities to help strengthen our

management of psychosocial risk

– tested the effectiveness of our psychosocial risk controls through

a range of assurance activities.

Reports of sexual and racial harassment

Reports of sexual harassment and racial harassment are investigated by our

Ethics and Investigations team, a business unit independent of our operations.

There was an 11 per cent decrease of reports of sexual harassment

from 429 in FY2025 to 380 in FY2026, and a 17 per cent decrease of

reports of racial harassment from 103 in FY2025 to 86 in FY2026.

In FY2026, 56 per cent of sexual harassment reports and 57 per cent

of racial harassment reports received through BHP’s misconduct reporting

channels were logged by managers or leaders on behalf of the workforce.

During FY2026, 113 reports of sexual harassment,

compared to 102 in

FY2025 were established following investigation across BHP’s global

operations, including conduct on‑site, off‑site and in offices.

In addition,

27 reports of racial harassment, compared to 24 in FY2025 were

established. 109 individuals responsible for sexual harassment and

22 responsible for racial harassment had their employment terminated

(or were removed from site if a contractor) or resigned.

Of the 113 established sexual harassment cases:

– nil involved sexual assault

– 38 involved sexualised and indecent touching

– 18 involved sexually aggressive comments, stalking, grooming

or image‑based harassment

– 56 involved other forms of sexual harassment, including sexualised

conversations or jokes

– 1 also involved gender‑based harassment

– nil also involved creating a hostile work environment based on sex

People who may have been impacted by sexual harassment or racial

harassment are offered specialised support by the Ethics Support

Service. The response is guided by the impacted person’s preferences

and the nature and severity of the alleged misconduct and may include

investigation, training, mediation, facilitated conversations and line leader

intervention. In FY2026, 71 sexual harassment and 25 racial harassment

reports were resolved through non‑investigative resolution pathways.

A further 104 sexual harassment and 21 racial harassment reports

were not investigated due to insufficient information or the wishes of the

impacted person, including anonymous reports or where the impacted

person chose not to participate.

Senior leadership and the Risk and Audit Committee of the Board

receive reports with de‑identified data on the number of complaints,

nature of complaints, investigations and other resolution pathways,

outcomes and timelines.

1. FY2025 and FY2026 data includes all former OZ Minerals Australian assets and

OZ Minerals Brazil assets.

2. Sexual harassment is, as defined in the Australian 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 FY2026 or earlier and closed in FY2026.

4. This excludes reports not containing a business conduct concern.

5. This excludes reports logged by leaders on behalf of others.

9 Sustainability continued

48 BHP Annual Report 2026

9.7 Community

We strive to make a positive contribution to the communities

where we operate and to understand, minimise and manage

any adverse impacts from our activities.

In FY2026, we continued to build our understanding of co‑creation across

our business, a milestone in our social value scorecard. Co‑creation brings

partners together to integrate resources, knowledge and networks to address

shared challenges and achieve improved outcomes for all. More than

100 BHP employees across our operated assets and functions participated in

a co‑creation training program to understand how they can incorporate more

inclusive engagement and strengthen community participation in their work.

As our co‑creation capability matures, measurement under the Thriving,

empowered communities pillar of our social value scorecard is shifting

from co‑creation processes to outcomes focused on the education and

skills required to enable communities to remain resilient beyond our direct

involvement. Over time, this is expected to support stronger workforce and

vocational pathways, enhanced community leadership, self‑governance

and co‑creation capability.

To strengthen our management of impacts on communities and Indigenous

peoples, in FY2026 we implemented a globally consistent methodology

to assess risks across our operated assets. Referred to in FY2025 as

community and human rights impact and opportunity assessments, and

completed across all operated assets in FY2026, these assessments

provide a comparable view of risk exposure and support earlier

identification and prioritisation of adverse impacts. As the results are

progressively integrated into asset‑ and Group‑level risk frameworks, they

are expected to support more informed and consistent decision‑making,

strengthen control effectiveness and improve impact prevention.

Community concerns, complaints and grievances

In FY2026, our operated assets globally received 95 concerns, complaints

and grievances from communities. This represents a 14 per cent decrease

compared with FY2025. This decrease was due to reductions at BMA and

Metals Exploration due to reduced activity and the focus at our Jansen

potash project on responding to blasting and road and rail complaints.

The most frequent themes in FY2026 continued to be blasting, road and

rail, and employee and contractor conduct and behaviour.

We seek to resolve and, where appropriate, remedy adverse impacts

on community members that we have caused or contributed to through

our operations. In FY2026, we continued to improve the accessibility of

grievance mechanisms, and the consistency of reporting and investigation,

through clearer guidance, targeted training and system enhancements.

These improvements are designed to enable community members to raise

concerns more easily, support more timely and consistent resolution and

improve visibility of root causes to help prevent recurrence.

Community concerns, complaints and grievances

29 20 13 12344577

Total 95

Conduct/behaviour Infrastructure Noise

Blasting Water Environment

Road/rail Lighting Spill/contamination

Dust Other

Additionally, in FY2026, BHP received an enquiry from the United Nations

Office of the High Commissioner for Human Rights (OHCHR) Special

Procedures relating to our investment in Antamina, a non‑operated joint

venture, to which we have responded. The enquiry raised certain human

rights and community matters associated with Antamina’s operations.

For more information on our social value scorecard refer to OFR 9.3

For more information on the results of community risk assessments,

engagement with communities and our management of impacts on

communities where we operate refer to the BHP ESG Standards

and Databook 2026 available at bhp.com/ESGSD2026

9.8 Indigenous peoples

Operating on or near Indigenous peoples’ traditional lands

brings responsibility and opportunity. We respect Indigenous

peoples’ right to consultation and recognise ‘free, prior and

informed consent’ (FPIC) as an important process to safeguard

their collective rights.

Indigenous partnerships

In FY2026, we continued to pursue our Indigenous Peoples Policy

Statement commitments, including seeking FPIC for proposed

new operations and capital projects that may potentially impact

Indigenous peoples.

As reported in FY2025, we ‘partially met’ our FY2025 short‑term

milestone that ‘Indigenous voices and perspectives are incorporated

into co‑designed priorities in each region’, with two of the three countries

in which we operate (Australia and Canada) publishing a co‑designed

regional Indigenous Peoples Plan (IPP) that incorporates the voices

and perspectives of Indigenous peoples. In FY2026, we achieved this

milestone through the development and implementation of the Chile

IPP for FY2026–FY2030.

To support this development, we established an Indigenous Advisory Panel

in Chile of seven external members to provide strategic and technical input

into plan development and implementation. The Chile IPP is structured

around the strategic pillars of community governance, transparency and

participation, employability and economic empowerment and strengthening

cultural heritage. We also introduced co‑created social performance

indicators and targeted engagement with communities, employees and

industry to enable systematic monitoring of the effectiveness of the Chile

IPP and ongoing feedback.

In Minerals Australia, we continued to implement our sixth Reconciliation

Action Plan (RAP) during FY2026, with progress achieved across

Indigenous employment pathways, leadership development, procurement

and cultural capability. All targets under each RAP pillar are on track for

delivery by FY2027.

In Canada, we continued to implement our Canada IPP during FY2026,

with progress through structured, agreement‑based engagement with six

First Nations communities. Formal Opportunity Agreements and ongoing

partnership mechanisms with participating First Nations communities

support structured engagement, economic participation and long‑term

community development, with outcomes including housing, education

and culture initiatives and strengthened relationships as Jansen transitions

towards operations.

Regional FPIC Implementation Plans were developed during FY2026 as

the primary mechanism to operationalise the processes through which

we seek FPIC. These plans are specific to proposed new operations

and capital projects and complement the broader partnership objectives

of the IPPs. We are strengthening governance for these plans through

clearer integration into our business processes related to capital projects.

We also continue to strengthen internal standards, tools and governance to

support effective identification, assessment, response and assurance with

respect to Indigenous peoples’ risks and impacts across capital projects

and operations. This includes the Indigenous Peoples Risk Assessment

process referenced in FY2025, which continues to be piloted and refined.

Agreement‑making remains a central component of our approach to

respecting Indigenous peoples’ interests and rights, while recognising that

its effectiveness depends fundamentally on the strength, continuity and

quality of our underlying relationships with Indigenous peoples. In FY2026,

we continued to improve our approach by embedding FPIC principles more

consistently in agreements, including greater use of co‑design consultation

protocols, clearer governance pathways, and mechanisms to support

ongoing consent over time. We are also progressing a more consistent

approach to how agreements are implemented and integrated into broader

business processes. This work is ongoing, and we continue to advance

negotiations with Indigenous peoples.

In our plans, partnerships and agreements, we continue to respond to the

feedback received from the FY2024 inaugural assessment of the health of

our relationships with a range of Indigenous partners. Since this assessment

we have focused on deepening and strengthening our engagement and

incorporating Indigenous partner feedback into our plans. While progress

has been made, challenges remain, including navigating complex and

diverse Indigenous rights and governance contexts, addressing historical

issues and trust deficits, and working through evolving expectations and

tensions that can arise during agreement negotiations and implementation.

The next assessment is scheduled for FY2027.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

In FY2026, we maintained partnerships with Indigenous businesses

across all operating regions. Compared with FY2025, our direct global

spend with Indigenous businesses increased by 18 per cent and

totalled US$1,007 million across 285 vendors, comprising Australia

US$583 million, Canada US$381 million and Chile US$41 million.

For more information on Indigenous engagement and agreements for our

operated assets and our management of impacts on Indigenous peoples

where we operate refer to the BHP ESG Standards and Databook 2026

at bhp.com/ESGSD2026

For more information on Indigenous employee participation refer

to OFR 9.4

For more information on our regional Indigenous Peoples Plans

refer to bhp.com/sustainability/Indigenous‑peoples

9.9 Nature and environmental performance

Managing nature‑related risks and opportunities, including

biodiversity and environmental performance, is an important

strategic issue for BHP, and supports our nature‑related and

social value goals, and ability to create long‑term value.

For more information on oversight of nature and environmental

performance by management and the Board refer to the Nature

and environmental performance page at bhp.com

For more information on environmental risk refer to OFR 6

Nature-related goal and targets

Our 2030 Healthy environment goal is to contribute to global nature‑positive

action by having at least 2 million hectares of land and water we steward

1,2

under conservation, restoration or regenerative practices by FY2030.

This is an area approximately equivalent to 30 per cent of the land and water

we stewarded

as at FY2023. In doing so we will take into account areas

of highest ecosystem value both within and outside our own operational

footprint, in partnership with Indigenous peoples and local communities.

To support delivery of the Healthy environment goal, projects will

typically progress through three phases: opportunity identification,

project development (where projects are considered ‘in plan’) and formal

management, where areas are managed under a formal management

plan that includes conservation, restoration or regenerative practices.

Project development includes engagement and partnership planning with

Indigenous peoples and/or local communities, recognising that establishing

shared objectives and stewardship approaches is an important foundation

for supporting durable outcomes over time.

Voluntary action on nature is a dynamic and fast‑evolving area, and we

continue to monitor developments. Since we set our Healthy environment

goal in 2022, the concept of ‘nature positive’ has continued to develop,

including through updates to external definitions, such as the Nature

Positive Initiative definition adopted by the Taskforce on Nature‑related

Financial Disclosures (TNFD) and through the publication of relevant

industry frameworks, such as the ICMM Nature Position Statement.

We have updated the wording of our Healthy environment goal and one

of its metrics to reflect this evolution, including recognition that ‘nature

positive’ is a global, collective effort to which BHP can contribute.

We have also made our Healthy environment goal more transparent by

setting a fixed area of at least 2 million hectares under conservation,

restoration or regenerative practices as the goal, replacing the less

tangible wording of ‘at least 30 per cent’. We selected this figure as

the equivalent to approximately 30 per cent of the land and water we

stewarded in FY2023, being the first performance year of our 2030 goals.

The FY2023 stewardship footprint, used as the basis for this equivalency,

includes former OZ Minerals Australian assets (acquired in May 2023) and

BMA’s Daunia and Blackwater operations (divested in April 2024). We have

updated the wording of one of the key metrics for the Healthy environment

goal in our social value scorecard to reflect this change. Our overarching

objective remains to contribute to global nature‑positive action, with the

level of ambition reflected by our goal unchanged.

While BHP currently stewards all lands and waters that contribute

towards our Healthy Environment goal, we recognise that the optimal

outcomes for nature in some circumstances may be achieved where an

area is transferred to its most appropriate stewards of the conservation,

restoration or regenerative practices, such as Indigenous groups,

1. It may include areas we stewarded for a period between FY2023 and FY2030 but have relinquished to a third party with the requisite expertise, and under conditions

that create a high likelihood of durability of ongoing conservation, restoration or regenerative management practice.

2. Excludes areas held under greenfield exploration licences (or equivalent tenements), which are outside the area of influence of our existing mine operations.

9 Sustainability continued

government bodies or specialist conservation organisations. Accordingly,

in pursuing the Healthy environment goal, we may relinquish land or

water stewarded by BHP between FY2023 and FY2030 where this

would support stronger and more durable long‑term conservation,

restoration and regenerative practices. We have also adjusted the focus

in the original wording of the goal on areas of ‘highest ecosystem values’

to taking into account those values to enhance opportunities for Indigenous

and community participation.

Our context‑based water targets (CBWTs) are informed by independent

Water Resource Situational Analyses (WRSAs), which identify shared

water challenges and priority water‑related risks at a catchment level,

together with our own risk assessments. CBWTs are developed at an

asset level and include milestones to track their achievement by FY2030.

We released the WRSA for one of our legacy assets, Elliot Lake, in FY2026.

The Western Australia Nickel (WAN) CBWT and milestones have been

removed due to changes in regional catchment governance since the CBWT

was set in FY2023. The Tjiwarl Aboriginal Corporation has entered into an

Indigenous Land Use Agreement with the Western Australian Government,

which includes the establishment of the Tjiwarl Water Study and a framework

to develop a Tjiwarl Water Plan. As a result, the opportunity for WAN is to

support governance initiatives led by the Tjiwarl Aboriginal Corporation

rather than lead those initiatives as envisaged by the CBWT. Given WAN’s

operations remain temporarily suspended, BHP has not established an

alternative public CBWT for WAN at this time. WAN intends to continue to

contribute to regional water stewardship through participation in the Northern

Goldfields water working group, and by providing relevant data and technical

input to support Tjiwarl‑led water planning processes.

Delivery of the Copper South Australia FY2030 CBWT milestone to cease

abstraction from Wellfield A is dependent on the timing of the Northern

Water Project, which is now expected to become operational from 2032.

BHP continues to engage constructively with the South Australian

Government to support delivery of Northern Water, which is expected to

provide a long‑term water supply solution for the region and support future

Copper South Australia growth options.

Our CBWTs and WRSAs can be found on the Shared water challenges

page at bhp.com

Key actions taken in FY2026

– In FY2026, the area under conservation, restoration or regenerative

practices increased by approximately 148,000 hectares compared to

FY2025, to reach approximately 246,000 hectares. The increase was

driven by the Jackboot nature project in South Australia.

– We also advanced selected Healthy environment goal project opportunities,

through project development, working towards formal, adaptive

management arrangements and on‑ground action.

– We continued engagement with Traditional Owners on opportunities to

progress Healthy environment goal projects. This included work on the

Jackboot nature project in South Australia, where Arabana Rangers

monitor feral animal activity and inform management planning.

– We delivered our first preliminary baseline natural capital account at BMA

and developed a natural capital workflow, independently peer reviewed

by Australia’s national science agency, CSIRO, to support consistent

consideration of nature‑related information in decision‑making.

– Progress on FY2026 CBWT milestones is described in the table below.

– Water quality reviews have been completed across all operated assets

to assess potential impacts to groundwater quality in surrounding

aquifers. Findings are expected to be reviewed in FY2027.

– In FY2026, we focused on policy engagements aimed at improving

environmental outcomes while supporting economic growth, investment

and job creation. This included engaging directly, and through the

Minerals Council of Australia and Business Council of Australia, with the

Australian Government on reforms to the Environment Protection and

Biodiversity Conservation Act 1999. We remain actively engaged.

For information on the Jackboot nature project refer to the Copper

South Australia, Healthy environment goal partnership case study

at bhp.com/news/case‑studies and the BHP ESG Standards

and Databook 2026 available at bhp.com/ESGSD2026

50 BHP Annual Report 2026

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.

2. 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 FY2026, with approximately 630 ML extracted and reinjected.

A small amount of terrestrial water (~5 ML during FY2026 or approximately 12 kL per day) has been supplied to the Cerro Colorado site for drinking water, sanitation and hygiene purposes

by a local water utility since Cerro Colorado entered temporary care and maintenance in December 2023.

3. Data used for Spence’s FY2022 baseline has been restated in the BHP ESG Standards and Databook 2026 available at bhp.com/ESGSD2026, to incorporate validated volumes from the

commissioning period for a new concentrator, which was not fully captured in the original FY2022 reporting.

4. Beneficial use is water used in ways that contribute to environmental resilience, social benefit or economic growth. For example, water returned to aquifers to reduce pressure on regional

groundwater resources; or transfer of surplus water to another operational use to avoid or reduce the need for additional natural water resources.

Progress against FY2026 context-based water target milestones

FY2030 target Milestone and due date Progress

BMA

Support equitable access to water

in the Fitzroy Basin by making more

water available for other users

FY2024, ongoing

Make available unutilised

BMA water

allocations to the temporary water

trading market for each year from FY2024

This milestone was completed in FY2024

and continued in FY2025 and FY2026.

0.8 GL of water allocations was traded on the

temporary water trading market in FY2026.

Copper

South

Australia

Contribute to conservation of the

ecosystem function of the Great

Artesian Basin (GAB) mound springs

FY2024, ongoing

Implement a permanent daily abstraction

limit on Wellfield A at 5 ML/d

This milestone was completed in FY2024

and continued in FY2025 and FY2026.

Daily abstraction from Wellfield A remained below

5 ML/d throughout FY2026.

Contribute to conservation of the

ecosystem function of the GAB mound

springs through direct conservation

and research programs in the Arid

Lands region

FY2026

Increase public knowledge of the GAB

by contributing BHP data to a South

Australian centralised public GAB

springs database

This milestone was completed in FY2026.

A South Australian centralised public GAB springs database

was not pursued by the South Australian Government and

instead BHP contributed to other available public databases –

including the Biological Database of South Australia, with data

flowing from this database on to the Atlas of Living Australia.

Escondida

Improve the water efficiency in mining

operations by 10 per cent at Escondida

from the FY2022 baseline, aiming

to optimise marine water use

FY2026

Improve the water efficiency by 5 per cent

at Escondida from the FY2022 baseline

This milestone was completed in FY2026.

Water efficiency was improved by 8 per cent

at Escondida from the FY2022 baseline.

Pampa

Norte

Contribute to the collective

preservation and restoration of the

aquifers and associated wetlands in

northern Chile through cessation of

operational use of terrestrial water

sources from water scarce areas

FY2024, ongoing

Cease extraction of terrestrial water

for Cerro Colorado operational use

This milestone was completed in FY2024

and continued in FY2025 and FY2026.

Improve the water efficiency in mining

operations by 10 per cent at Pampa

Norte from the FY2022 baseline,

aiming to optimise marine water use

FY2026

Improve the water efficiency by 5 per cent

at Spence from the FY2022 baseline

This milestone was completed in FY2026.

Water efficiency was improved by 7 per cent

at Spence from the FY2022 baseline.

Western

Australia

Iron Ore

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

FY2026

Install and commission additional capacity

in the Central Pilbara for beneficial use

of surplus water (milestone is subject to

external approvals)

This milestone was partially met in FY2026.

Additional technical and environmental studies required

to support regulatory approvals have been completed, and

the environmental impact assessment has been submitted.

Approval is anticipated in Q1 FY2027, following which

installation and commissioning activities are expected

to commence.

While the overall project is progressing later than originally

planned, partial benefits have been realised through

commissioning of some scopes of work, increasing our surplus

water for beneficial use

(returning water to nearby groundwater

aquifers via recharge).

Completion of this milestone is now expected in FY2029. This

revised timing is not expected to impact WAIO’s ability to meet

its FY2030 CBWT for beneficial use of surplus water.

By FY2026, in collaboration with

others, we will establish a regional

water data sharing solution to support

catchment scale planning and

management for the Pilbara

FY2026

Establish a data sharing solution that

supports catchment scale planning

and management

This milestone was completed in FY2026.

Delivery was enabled via the Shared Environment Analytics

Facility (SEAF) project developed in partnership with the

Western Australia Biodiversity Science Institute.

The platform enables multiple mining operators to

securely store, share and manage environmental data to

support regional and catchment‑scale planning and water

management in a Pilbara catchment.

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

Environmental settlement agreements

In Chile, specific environmental settlement agreements relate to historical

groundwater extraction activities at the Monturaqui, Lagunillas and Salar

de Punta Negra systems. The implementation of these environmental

settlements is ongoing, in accordance with court‑approved frameworks

and applicable regulatory processes. Delivery is overseen by the

established governance bodies, and progress is periodically reported

to the environmental court and relevant stakeholders. Specific actions

delivered in FY2026 regarding the Monturaqui‑Negrilar‑Tilopozo settlement

agreement include the establishment of the governance body overseeing the

implementation of the agreement and conversion of Escondida’s water rights

in the Monturaqui aquifer to a non‑extractive (conservation) use.

Under the Salar de Puntas Negras (SPN) settlement agreement progress

was made during FY2026 on the implementation of Phase 1 activities,

including the continued operation of the governance board and progress

in the environmental, hydrological, ecological, and socio‑cultural studies

required to support the long‑term management of the SPN Salt Flat.

Phase 2 has been initiated within the governance board and is focused

on the development of the SPN management plan, which will guide

the implementation, monitoring and continuous improvement of the

agreement’s conservation and restoration measures.

FY2026 key actions under the Lagunillas settlement agreement included

completion of field studies to support understanding of wetland evolution

under climate change scenarios, progress on the carbon compensation

program, advancement of the high‑Andean wetland conservation

initiative through the selection and assessment of potential sites, and

implementation of a public environmental data platform to support

transparency and stakeholder access to information.

For information on the Samarco non‑operated joint venture and financial

impacts related to the tailings dam failure, refer to Financial Statements

note 4 ‘Significant events – Samarco dam failure’

Key FY2026 nature and environmental

performance insights

– As at 30 June 2026, BHP owned, leased or managed approximately

7.3 million hectares of land. Approximately 2 per cent (approximately

154,500 hectares) of this area is disturbed for mining operation purposes

and approximately 13 per cent (approximately 22,600 hectares) of land

we have disturbed is under rehabilitation.

– Total operational water withdrawals increased by 7 per cent in FY2026,

from 429,660 ML in FY2025 to 461,520 ML. The increase was primarily

driven by higher Type 3 desalinated seawater withdrawals at Escondida

and higher Type 1 surface water withdrawals at BMA, reflecting

increased runoff due to high intensity rainfall.

– Seawater, including third‑party desalinated seawater supplied to Pampa

Norte, continued to be the largest source of water withdrawn, representing

57 per cent of total withdrawals. This reflects our continued focus on

reducing reliance on terrestrial water resources in Chile.

– At Pampa Norte, BHP’s only operated asset in a high or very high

water‑stressed area, withdrawals represented 7 per cent of total BHP

withdrawals, consistent with FY2025. Absolute withdrawals were largely

unchanged at 30,890 ML, compared with 30,790 ML in FY2025, and water

reused or recycled increased by 15 per cent compared with FY2025.

– Total operational water discharges increased by 37 per cent in FY2026,

driven by higher desalination‑related discharges at Escondida and

increased surface water discharges at BMA following significant

rainfall events and the release of previously stored water.

For more information on BHP’s environmental performance data,

including progress on areas under conservation, restoration

or regenerative practices, air emissions and fines, refer to the

BHP ESG Standards and Databook 2026 at bhp.com/ESGSD2026

9.10 Climate change

Global warming presents both physical and transition risks to our

operations, value chain and the communities where we operate.

Scientific evidence indicates that warming of the climate is

unequivocal and human influence is clear, with impacts

expected to intensify over time. We recognise our important

role in supporting the transition to a lower carbon economy.

Our current climate change strategy focuses on developing a portfolio of

commodities to support the major global shifts shaping our world, reducing

operational greenhouse gas (GHG) emissions (Scopes 1 and 2 emissions

from our operated assets), supporting value chain GHG emissions

(Scope 3 emissions) reductions, and managing climate‑related

risks and opportunities.

Our disclosures and approach to reporting

In August 2024, we published our second Climate Transition Action Plan

(CTAP 2024) that included our GHG emissions targets and goals and

strategy to pursue them, while recognising that our progress would not be

linear. Certain aspects of our assumptions and plans have been updated,

as outlined in our Annual Report 2025 and our Sustainability Report

included in this Annual Report.

The Sustainability Report, on pages 55 to 92 contains disclosures in

accordance with the Australian Corporations Act 2001 and AASB S2.

In accordance with the UK Listing Rules as set by the UK Financial

Conduct Authority, we believe our disclosures are consistent with the four

recommendations and 11 recommended disclosures of the Task Force on

Climate‑related Financial Disclosures (TCFD). The Navigating our TCFD

disclosures table on page 53 sets out the TCFD’s recommended disclosures,

grouped under the four recommendations, and where our aligned disclosures

can be found within this Annual Report and the BHP ESG Standards and

Databook 2026 available at bhp.com/ESGSD2026 (refer to the Our response

column). The TCFD recommended disclosures for FY2026 that have been

published in our ESG Standards and Databook is one metric used to meet

two instances related to TCFD All Sector Guidance on Metrics and Targets

paragraphs (a) and (b). This content has not been provided in this Annual

Report as we use our ESG Standards and Databook to provide the more

granular data related to our annual GHG emissions inventories.

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

by 43 per cent by 2030 and by 62–70 per cent by 2035, relative to 2005

levels, 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.

Operational GHG emissions (Scopes 1 and 2

emissions from our operated assets)

We have a medium‑term target to reduce operational GHG emissions by

at least 30 per cent by FY2030 from a FY2020 baseline, and a long‑term goal

to achieve net zero operational GHG emissions by CY2050. Progress against

both our medium‑term target and long‑term goal will be measured on

an absolute basis. Our medium‑term target aims for a gross reduction

in GHG emissions, while the long‑term goal aims for a net reduction.

For more information on our use of carbon credits refer to Sustainability

Report 2 Performance against our operational and value change

GHG emissions targets and goals and Sustainability Report 5

Metrics and targets

For FY2026, operational GHG emissions were 9.4 MtCO

‑e, representing

a 33 per cent reduction from FY2020 baseline emissions (baseline year

and performance data adjusted) and a 1 per cent increase compared to

our FY2025 emissions (both adjusted

We have transitioned to using a national residual mix factor (RMF) to

calculate Scope 2 emissions at our Australian assets as we are required

to do where an RMF is available.² The change resulted in an adjustment

to our historical operational GHG emissions inventory by applying the

RMF to the non‑renewable grid electricity consumption for the Australian

assets; applying this adjustment to our FY2025 emissions inventory results

in a 34 per cent reduction compared to the FY2020 baseline (previously

reported as 36 per cent).

9 Sustainability continued

1. 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. Where applied,

such adjustments are intended to facilitate more meaningful comparability of performance

across multiple years to enable a ‘like for like’ comparison. For our unadjusted GHG

emissions data, see Sustainability Report 5 Metrics and targets.

2. Use of an RMF is required (if available) under the GHG Protocol Scope 2 Guidance that

BHP refers to for the calculation of our market‑based Scope 2 emissions, used in the

measurement of our operational GHG emissions target and goal.

52 BHP Annual Report 2026

Table 1 – Navigating our TCFD disclosures

TCFD recommended disclosures

Our response

This Annual Report:

BHP ESG Standards

and Databook 2026

Operating and

Financial Review

Corporate Governance

Statement and

Remuneration Report

Sustainability

Report

Governance: Disclose the organisation’s governance around climate-related risks and opportunities

a) Describe the board’s oversight of

climate‑related risks and opportunities

– Page 101 Pages 85 to 86 –

b) Describe management’s role in assessing

and managing climate‑related risks and

opportunities

– – Page 86 –

Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses,

strategy, and financial planning where such information is material

a) Describe the climate‑related risks and

opportunities the organisation has identified

over the short, medium, and long term

Page 54 – Pages 64 to 71 –

b) Describe the impact of climate‑related

risks and opportunities on the organisation’s

businesses, strategy, and financial planning

Page 54 – Pages 64 to 71 –

c) Describe the resilience of the organisation’s

strategy, taking into consideration different

climate‑related scenarios, including a 2°C

or lower scenario

– – Pages 72 to 75 –

Risk Management: Disclose how the organisation identifies, assesses, and manages climate-related risks

a) Describe the organisation’s processes for

identifying and assessing climate‑related risks

Page 22 – Pages 64 to 65 –

b) Describe the organisation’s processes

for managing climate‑related risks

Page 22 – Pages 66 to 75 –

c) Describe how processes for identifying,

assessing, and managing climate‑related

risks are integrated into the organisation’s

overall risk management

Page 22 – Page 76 –

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 52 to 54 Pages 114 to 126 Pages 64 to 76 Tab ‘Energy and GHG’ in

BHP ESG Standards and

Databook 2026

b) Disclose Scope 1, Scope 2, and, if

appropriate, Scope 3 GHG emissions,

and the related risks

Pages 52 to 54 – Page 77 Tab ‘Energy and GHG’ in

BHP ESG Standards and

Databook 2026

c) Describe the targets used by the organisation

to manage climate‑related risks and

opportunities and performance against targets

Pages 52 to 54 – Pages 76 to 84 –

In FY2026, we had stable emissions performance at WAIO and Escondida

and lower emissions at Western Australia Nickel compared to FY2025 due

to it being in temporary suspension. Higher emissions at BMA were driven

by higher material movement and more methane‑intensive mining areas.

At NSWEC operational GHG emissions increased relative to FY2025

reflecting higher production and a revised emissions model at NSWEC.

For more information on our FY2026 social value scorecard milestones,

performance highlights and GHG emissions calculation methodology

refer to Sustainability Report 2 Performance against our

operational and value change GHG emissions targets and goals,

Sustainability Report 5 Metrics and targets and Sustainability

Report 7 Basis of preparation, interpretation and GHG emissions

calculation methodology

Based on our current operational GHG emissions forecast for FY2030 and

methodologies for GHG emissions accounting, we are on track to achieve

our medium‑term target through a combination of structural abatement

initiatives and renewable electricity procured through PPAs. The majority

of reductions required to meet our medium‑term target are expected to

be delivered through Scope 2 electricity emissions abatement. Our approach

to meeting our medium‑term target and our long‑term goal remains aligned

with the areas of focus we set out in CTAP 2024. Our assessment of

progress against the medium‑term target is subject to uncertainties and

varies depending on underlying assumptions. Our analysis shows that

we still have much to do, and we continue to expect progress towards

our medium‑term target and long‑term goal to be non‑linear.

For more information on the essential definitions, assumptions, GHG

emissions boundaries, measurement approach and adjustments for

our operational GHG emissions inventory, targets and goals refer to

Sustainability Report 5 Metrics and targets and Sustainability

Report 7 Basis of preparation, interpretation and GHG emissions

calculation methodology

Operational GHG emission reduction projects are incorporated into our

corporate planning processes, including mining plan reviews. For FY2026,

our incremental capital expenditure, operating expenditure and lease

payments on initiatives associated with operational GHG emission

reductions was approximately US$65 million.

For more information on initiatives impacting our operational GHG

emissions and FY2026 actions and performance against our targets

and goals refer to Sustainability Report 2 Performance against our

operational and value chain GHG emissions targets and goals

For more information on the current and anticipated financial effects of

BHP’s strategy for managing climate‑related risks and opportunities refer

to Sustainability Report 3 Strategy for managing climate-related risks

and opportunities. For more information on capital expenditure and other

financial effects relating to climate change, refer to Financial Statements

note 16 – ‘Climate change’

Additional InformationFinancial StatementsGovernanceSustainability ReportOperating and Financial Review

Transition risk 1 Policy, legal and reputational

BHP is exposed to increasing scrutiny and evolving climate‑related policy, regulatory and legal risks associated with GHG emissions. Key risks include stricter

government decarbonisation policies, increased potential for climate‑related litigation and other legal risks, and changing and divergent climate change‑related

policy settings across relevant jurisdictions. This risk could give rise to higher costs associated with carbon pricing, regulatory compliance, mitigation activities

and legal matters, which may reduce future profitability and cash flows and potentially increase the risk of impairment. It may also impact BHP’s licence to

operate, access to capital and ability to maintain stakeholder trust.

Transition risk 2 Availability and commercial viability of operational decarbonisation technology

BHP’s ability to achieve its operational GHG emissions (Scopes 1 and 2 emissions from its operated assets) Group‑level climate‑related targets, goals and

strategies is dependent on the timely availability, selection, and effective and safe implementation of enabling technologies and low‑carbon inputs and their

commercial viability. Delays, failed trials, supply constraints or suboptimal technology options could slow operational decarbonisation, impact our ability to

achieve our operational GHG emission medium‑term target and long‑term net zero goal and increase our operational decarbonisation and/or operating costs.

This risk is focused on our operational GHG emissions reduction and excludes technologies relating to value chain decarbonisation.

Transition risk 3 Accelerated decrease in steelmaking coal demand

This risk reflects a potential acceleration of timeline for long‑term decline in steelmaking coal demand arising from earlier‑than‑assumed uptake of lower GHG

emissions technology in the steelmaking sector. BHP continues to expect demand for steelmaking coal to remain robust for decades but the potential exists for blast

furnace iron making, which depends on coke made from steelmaking coal, to be displaced at scale by emergent technologies faster than we expect, which presents

a strategic risk that could further impact the demand outlook for steelmaking coal and prospects of our steelmaking coal business and the Group’s portfolio.

Transition opportunity 1 Copper demand

The more the global economy progresses in a transition toward net zero, the more important the composition of BHP’s commodity portfolio will become,

reflecting its suitability to support the expected increase in demand for certain commodities arising from global decarbonisation and the energy transition.

Specifically, copper is a key contributor in electrification and decarbonisation trends across the global economy.

Physical risk 1 Physical climate-related risks

A changing climate could exacerbate and trigger physical climate‑related risks for BHP’s operations and assets and non‑operated joint venture investments,

workforce, communities, supply chains, customers and other third‑party partners. These risks arise from both the increasing severity and/or frequency of

acute events (extreme climatic events, such as floods, cyclones and heatwaves) and chronic changes (such as prolonged drought, rising temperatures, and

incremental increases in extreme heat days). The potential effects of these events on our business model and value chain may be both direct and indirect.

For more information on climate‑related risks and opportunities including current and anticipated financial effects, and our strategy

and management actions refer to Sustainability Report 3 Strategy for managing climate-related risks and opportunities

For more information on the process by which we identify and manage risk at BHP and our risk factors refer to OFR 6

Table 2 – Identified climate-related risks and opportunity

Value chain GHG emissions (Scope 3 emissions)

We have a long‑term goal of net zero Scope 3 GHG emissions by CY2050.

Achievement of this goal is uncertain, particularly given the challenges

of a net zero pathway for our customers in steelmaking and we cannot

ensure the outcome alone. Accordingly, we seek to influence progress

through collaboration, technology development and customer engagement.

We have medium‑term goals for CY2030: for steelmaking, to 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; and for shipping, to support

40 per cent GHG emissions intensity reduction of BHP‑chartered shipping of

BHP products, from a CY2008 baseline. We have long‑term targets to achieve

net zero by CY2050 for the GHG emissions from all shipping of BHP products;

and to achieve net zero by CY2050 for the operational GHG emissions

(Scopes 1 and 2 emissions) of our direct suppliers.

For FY2026, our reported Scope 3 emissions, used as a proxy for tracking

performance against our long‑term value chain 2050 net zero goal totalled

383.8 MtCO

e, which is 2 per cent higher than in FY2025 (both adjusted

The processing of iron ore and steelmaking coal products represented

the largest share of our Scope 3 emissions followed by the combustion of

energy coal. Emissions associated with our direct suppliers and upstream

and downstream shipping are the next most significant contributors

to Scope 3 emissions.

The adjusted Scope 3 GHG emissions stated in this OFR reflect the

organisational reporting boundaries of our goals and targets, which differ from

the organisational boundaries of our unadjusted Scope 3 GHG emissions

inventory as disclosed in Sustainability Report 5 Metrics and targets.

This is because our Scope 3 goals and targets were set to reflect the

different degrees of BHP’s potential capacity to affect outcomes, which

varies across the value chain.

For more information on the essential definitions, assumptions, GHG

emissions boundaries, measurement approach and adjustments for

our value chain GHG emissions inventory, goals and targets, refer to

Sustainability Report 5 Metrics and targets and Sustainability

Report 7 Basis of preparation, interpretation and GHG emissions

calculation methodology

For FY2026, operating expenditure on initiatives associated with potential

value chain GHG emission reductions was approximately US$36 million.

For more information on initiatives impacting value chain GHG emissions

and FY2026 actions and performance against our goals and targets refer

to Sustainability Report 2 Performance against operational and value

chain emissions targets and goals

For more information on BHP’s strategy supporting our value chain

GHG emissions goals and targets refer to Sustainability Report

5 Metrics and targets

Climate-related risks and opportunities

BHP has applied judgement in identifying the climate‑related transition and

physical risks and opportunity outlined in Table 2 below. This disclosure

includes the risks and opportunity that BHP has determined could

reasonably be expected to affect its cash flows, its access to finance or

cost of capital over the short, medium or long term and our related strategy

and management actions.

9 Sustainability continued

This Report is made in accordance with a resolution of the Board.

Ross McEwan

Chair

Dated: 18 August 2026

54 BHP Annual Report 2026

Sustainability Report

Progressing decarbonisation

through technology and

investment 55

1 Introduction 58

2 Performance against our

operational and value chain

GHG emissions targets

and goals 58

2.1 Operational GHG emissions

(Scopes 1 and 2 emissions

from our operated assets) 58

2.2 Value chain GHG emissions

(Scope 3 emissions) 62

3 Strategy for managing

climate-related risks

and opportunities 64

3.1 How we resource our

response to climate‑related

risks and opportunities 64

3.2 Climate‑related risks

and opportunities 64

3.3 Scenario analysis

and resilience 72

3.4 Equitable change and

transition – New South

Wales Energy Coal 75

4 Risk management 76

4.1 Approach to risk

management 76

5 Metrics and targets 76

5.1 Climate‑related metrics 77

5.2 Climate‑related targets 77

6 Governance 85

6.1 Board oversight 85

6.2 Board committees 86

6.3 Management 86

7 Basis of preparation,

interpretation and GHG

emissions calculation

methodology 87

7.1 Overview 87

7.2 Basis of preparation 87

7.3 Forward‑looking statements 88

7.4 Use and interpretation of

terms, defined terms and

abbreviations 88

7.5 Application of reliefs 88

7.6 Methodology for calculating

Scopes 1, 2 and 3 GHG

emissions 89

Progressing decarbonisation

through technology and

investment

This is our first Sustainability Report containing our climate‑related

disclosures in accordance with the Australian Corporations Act 2001

(Cth) (Corporations Act) and the Australian Accounting Standards Board’s

Australian Sustainability Reporting Standard AASB S2: Climate-related

Disclosures (AASB S2).

BHP is a leading producer of commodities vital in supporting global decarbonisation. We are

the world’s largest producer of copper,

essential for electrification and for the energy transition.

We are a major producer of iron ore and steelmaking coal for steel required for decarbonisation

infrastructure. In addition, we expect to begin producing potash from the middle of CY2027, which

can assist with more sustainable farming and food production as the world’s population grows.

We believe demand for these materials will continue to grow.

BHP is steadfast in our commitment to pursue the decarbonisation of our operations. We do so

from a strong position. Our operated assets are already among the lower greenhouse gas (GHG)

emission intensity mines in the world.

1. BHP reported copper production on a consolidated basis for the year ended 30 June 2026 (FY2026) relative to competitor

reported copper production data for CY2025 on a consolidated basis compiled from Wood Mackenzie and publicly available

information (company reports). Competitors include: Anglo American, Antofagasta, Codelco, Freeport, Glencore, Rio Tinto,

Southern Copper, Teck.

2. For CY2025, the GHG emissions intensity of our production of our commodities is estimated to rank in the first quartile for our iron

ore and copper and sitting across first and second quartiles for steelmaking coal mines of global mining operations analysed by

CRU. This analysis is based on CY2025 data from CRU (as CRU data is prepared on a calendar year basis) and includes CRU’s

assumptions and estimates of BHP’s operations. For more information on the calculation refer to the BHP ESG Standards and

Databook 2026 available at bhp.com/ESGSD2026

3. Based on our current operational GHG emissions forecast for FY2030 and methodologies for GHG emissions accounting.

For more information refer to our assumptions and further details in 2.1.2 Pathway to our medium-term target on page 58.

4. Baseline year and performance data adjusted (refer to Table 6a on page 79 for the basis of our adjustments).

5. As evidenced by the surrender of renewable energy certificates (RECs) (refer to 7.6.3 Scope 2 emissions on page 89).

It includes both voluntary surrender of RECs and RECs surrendered to meet renewable energy‑related compliance obligations

such as those associated with the Australian Renewable Energy Target scheme. This approach is consistent with our

transition from FY2026 to using a national residual mix factor (RMF) at our Australian assets (refer to the first footnote 1 on

page 57). Applying this to our renewable electricity usage in FY2025 results in 77 per cent (previously reported as 73 per cent,

prior to our transition to use of the national RMF for our Australian assets).

6. Based on forecast electricity demand.

Towards net zero operational GHG emissions

BHP is on track to meet our FY2030 operational GHG emissions

(Scopes 1 and 2 emissions from our operated assets) target

with

our FY2026 emissions 33 per cent below our FY2020 baseline.

Today, 80 per cent of electricity sourced across BHP operated assets globally is renewable:

▪ 100 per cent renewable power at our Chilean mines

▪ from July 2026, 100 per cent renewable power at BMA mines in Queensland

▪ Copper South Australia operations use 35 per cent renewable power and have

signed further renewable agreements to expand this in the years to come

▪ up to 30 per cent renewable power at Port Hedland in Western Australia

We still have much to do to reach our target in FY2030. Our pathway will not be

linear because our business is growing, delivering commodities the world needs

to decarbonise, digitalise and urbanise.

We are doing the work now to progress activities required to decarbonise our operations as we

work towards our CY2050 net zero goal.

In FY2026, we commenced trials of what we consider to be the most advanced battery‑electric

heavy haulage technologies available globally and trials to assess novel methane abatement

technologies. These activities aim to help solve some of the industry’s most complex

decarbonisation challenges, reduce uncertainty and build confidence in the

technologies, systems and capabilities required to decarbonise our operations.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Sustainability Report continued

What we have

achieved so far

Working with original equipment manufacturers

(OEMs) and technology partners to solve the

challenges for large‑scale diesel displacement

Through targeted trials and pilot projects, we aim to build

confidence in the technologies, systems and capabilities

required for safe, reliable and productive deployment at scale.

80%

Renewable electricity usage across

BHP operated assets globally

Moving away from diesel at our operations

Following significant progress in reducing emissions from electricity,

diesel displacement is the largest lever to reduce operational GHG

emissions across BHP in the future. Electrification remains our preferred

long‑term pathway to displace diesel.

Like other miners around the world, BHP’s operations have relied on diesel

for material movements for over 50 years. Battery‑electric mining systems

required for large‑scale operations are still being developed and validated.

While significant progress has been made, successful deployment of

electrified solutions requires the integration of:

▪ battery‑electric equipment

▪ workforce capabilities

▪ charging infrastructure

▪ mine planning practices

▪ power management systems

▪ maintenance processes

▪ safety controls

into an operating system capable of delivering safe, reliable and

productive outcomes at scale to meet BHP requirements.

We currently do not expect deployment across our operations until after

FY2030. To address these challenges, we are working with OEMs and

technology partners through a structured program of proof‑of‑concept

trials and pilot projects.

These activities are designed to test technology performance in real

mining environments. They strengthen our understanding, support

ongoing technology development and build the knowledge and

capability required for future deployment decisions.

In Western Australia, we commenced proof-of-concept trials

of battery-electric equipment in collaboration with OEMs.

At Jimblebar, we are testing two Caterpillar Early Learner

battery‑electric haul trucks, one of the first trials of Caterpillar’s

battery‑electric haul truck technology in a mining environment.

A key industry challenge is maintaining battery‑electric truck

productivity while managing charging requirements. In FY2027,

we expect to commission high-power static charging

infrastructure and Caterpillar’s Dynamic Energy Transfer

(DET) technology at the Jimblebar test facility. Caterpillar’s DET

and other forms of innovative dynamic charging could enable haul

trucks to receive power while operating on haul roads. We are

evaluating both static and dynamic charging because a combination

of these technologies could help address some of the current

limitations of battery chemistries and charging downtime to improve

the viability of large battery‑electric truck fleets.

While the Early Learner truck and energy transfer solutions remain

under development and are not yet commercially available, these

trials will test key components associated with electrifying a mine

in the Pilbara, one of the harshest and most demanding operating

environments in the world. As with any new technology, we don’t

expect progress to be in a straight line, and we will learn as we go.

Escondida continues to evaluate the integration of 360‑tonne

battery‑electric haul trucks and supporting charging infrastructure

as part of assessing potential pathways to displace diesel. However,

battery‑electric models for this class of truck, which are larger than

those deployed in the Pilbara, are not yet available for trials.

We also commenced a trial involving two Wabtec FLXdrive

battery-electric locomotives in Port Hedland and took delivery

in Perth of two Progress Rail battery-electric locomotives for

commissioning and testing in FY2027. BHP expects to be one of

the first miners globally to be trialling two suppliers’ technologies

for these locomotives side by side.

Reduced value chain GHG emissions

(Scope 3 emissions) intensity of BHP‑

chartered shipping of BHP products,

from our CY2008 baseline.

Conducted pilot to trial pure biodiesel with lower GHG emissions

abatement potential, produced from two waste feedstocks.

Widened the suite of alternative fuel options, which includes

biodiesel, LNG, methanol and ammonia.

46%

Shipping

Collecting product‑level GHG emissions data from key direct

suppliers to improve our Scope 3 GHG emissions visibility.

Four strategic suppliers were included in FY2026.

Suppliers

Collaborated with 13 steelmakers, who

together produce approximately a quarter

of the world’s reported steel production.

Progressed trials, pilots and studies to reduce

GHG emissions intensity from steelmaking.

Steelmaking

~25%

Reduced operational GHG

emissions from our FY2020 baseline

(Scope 1 and Scope 2 emissions from our

operated assets)

This compares to a 34% reduction in FY2025. BHP remains

on track to meet our operational GHG emissions target.

33%

For footnotes for this page refer to page 57.

56 BHP Annual Report 2026

Footnotes for previous page

1. Baseline year and performance data adjusted to track against our medium‑term target and long‑term net zero goal (refer to Table 6a and Table 6b on pages 79 and 80). FY2020 baseline

includes operational GHG emissions for Western Australia Nickel, which transitioned into temporary suspension at the end of the first half of FY2025 and so has a much lower emissions

inventory in FY2026 contributing towards this percentage. We have transitioned to using a national residual mix factor at our Australian assets, which drove an adjustment to our operational

GHG emissions. Applying this adjustment to our FY2025 emissions inventory results in a 34 per cent reduction compared with the FY2020 baseline (previously reported as 36 per cent).

2. Based on our current operational GHG emissions forecast for FY2030 and methodologies for GHG emissions accounting. For more information refer to our assumptions and further details

in 2.1.2 Pathway to our medium-term target on page 58.

3. Refer to footnote 5 on page 55.

4. From BHP‑chartered shipping of our products. 2008 baseline year and performance data adjusted (refer to Table 6d on page 81).

5. Based on CY2025 data sourced from World Steel Association.

Footnotes for this page

1. From BHP‑chartered shipping of our products. 2008 baseline year and performance data adjusted (refer to Table 6d on page 81).

Our future electricity demand

We expect electricity demand to increase significantly as

diesel‑fuelled mining and rail equipment is electrified across our

operations. Our approach is to develop future power solutions in

alignment with timing for the deployment of electrification technologies

and to work collaboratively with industry and government to progress the

development of the broader energy ecosystem.

For example, WAIO’s inland mines are our only non‑grid connected

operations, with electricity supplied by a highly efficient combined gas

cycle turbine plant. To meet expected future electricity demand, we are

progressing long‑lead‑time work, establishing partnerships to explore

large‑scale energy solutions for future mining, rail and port electrification

and participating in the Pilbara Electricity Transition Plan to explore

potential common user transmission solutions. Work like this aims to build

confidence in the power infrastructure, systems and partnerships required

to support operational decarbonisation at scale in the Pilbara.

Managing methane

In FY2026, methane accounted for 12 per cent of our Scope 1 and

Scope 2 emissions. At BMA’s sole underground steelmaking coal

mine, drainage methane is already captured and abated when safe

and practicable. However, abating fugitive methane from open‑cut

mines presents a greater challenge, with no currently proven technologies

available at scale. To address this gap, we commenced a proof‑of‑concept

trial of novel methane gas drainage at an operating open‑cut mine,

which will continue into FY2027. In FY2026, gas exploration drilling

was completed at Saraji, with the remainder of the program on track

for completion in FY2027. The aim of this drilling program is to enhance

our understanding of methane concentrations and gas reservoir

characteristics. Together, the purpose of this work is to deepen our

understanding of methane emissions and to build confidence in potential

future abatement solutions.

Learning through collaboration

We continue to monitor industry developments closely, collaborate with

OEMs, suppliers and industry peers, and assess the potential role of

complementary and bridging technologies as part of developing our

longer‑term pathway to net zero operational GHG emissions.

In addition to our existing technology development activities, we

are establishing relationships with a broader range of equipment

manufacturers and technology providers to explore alternative or additional

potential pathways to reduce operational GHG emissions. So far, we have

signed a Global Framework Agreement with XCMG and Memorandums of

Understanding (MoUs) with Siemens Mobility, BYD and CATL.

We also collaborate through the International Council on Mining and

Metals’ (ICMM) Innovation for Cleaner, Safer Vehicles (ICSV) initiative

and CharIN to help accelerate the development and deployment of lower

GHG emissions mining equipment. Through these collaborations, we

contribute to industry efforts to address common technical and operational

challenges associated with the transition to electrified mining fleets.

Through these forums, BHP is also helping advance consistent industry

approaches to testing, safety, engineering controls and risk management

for high‑energy battery‑electric systems, to support the safe and efficient

deployment of electrified mining equipment.

Investing in the next phase of operational

decarbonisation

Our spend on operational decarbonisation remains aligned to our program

of work. Our Climate Transition Action Plan (CTAP) 2024 contemplated

significant advances in electrification before FY2030. However, as

technologies have progressed and operational experience has increased,

our understanding of the deployment requirements has consequently

improved. As stated in our Q3 FY2025 Operational Review and Annual

Report 2025, development of relevant technologies has been slower

than previously expected. As technology readiness progresses, BHP

anticipates our continued decarbonisation efforts will result in spend of at

least US$4 billion (incremental, nominal) in the 2030s. Further expenditure

is subject to greater uncertainty, reflecting lower technology readiness for

electrification of some diesel displacement equipment and the additional

abatement technologies required to address residual GHG emissions.

For more information refer to Transition risks 1 and 2 in Table 1 on page 66.

We continue to assess decarbonisation projects and associated spend

through our Capital Allocation Framework and our commitment to safe

and productive operations.

Reduction of value chain GHG emissions

While we work to decarbonise our operations, we continue to support our

customers, suppliers and shippers to do the same.

To support our steelmaking customers, we are:

– supporting development of multiple pathways to a lower GHG emissions

future in steelmaking

– working with and investing alongside customers, such as ArcelorMittal,

China Baowu, JFE, HBIS, POSCO, JSW and Zenith, on projects to help

support future reductions in steelmaking’s GHG emissions intensity

– investing in innovative technologies, including through our BHP Ventures

portfolio companies Boston Metal and Electra, that have the potential to

enable near zero emissions steelmaking in the future

– involved in the NeoSmelt opportunity, a consortium of leading

resources, energy and manufacturing companies designing a pilot

project that would test ways to produce lower GHG emissions steel from

Pilbara iron ore

We are focused on our top 500 direct suppliers by spend, and our strategy

encompasses three areas of focus: selective purchasing, supportive

engagements, and measurement and monitoring of GHG emissions from

our direct suppliers.

We are on track to meet our medium‑term goal to reduce shipping emissions

intensity, with our performance in FY2026 being 46 per cent below the

baseline.

We aim to build on our progress to date through more efficient

vessels, new technologies, such as wind‑assisted propulsion, and alternative

fuels, such as biofuels, LNG, low‑carbon methanol and ammonia.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

1 Introduction

This Sustainability Report is prepared on a consolidated basis in respect

of BHP Group Limited (BHP or the Company) together with our controlled

entities (Group) for the year ended 30 June 2026. Both current and

anticipated financial effects represent BHP share, aligned to Financial

Statement presentation, unless otherwise noted. Defined terms are

used in this Sustainability Report (without capital letters), including

terms defined by AASB S2. Significant judgements have been made

in producing the disclosures within this Sustainability Report. We identify

the information that is subject to uncertainty and/or limitations and where

BHP has elected to apply reliefs and/or exemptions in producing this

Sustainability Report. Further details associated with defined terms

and these judgements, uncertainties and interpretations are outlined

in 7.2 Basis of preparation on page 87.

For information on the essential definitions, assumptions, GHG emissions

boundaries, measurement approach and adjustments for our GHG

emissions inventory, targets and goals, including the potential use

of offsetting, refer to section 5 Metrics and targets on page 76

In August 2024, we published our second Climate Transition Action

Plan (CTAP 2024), available at bhp.com/CTAP2024, that provided an

overview of our climate change strategy, commitments, targets, goals

and forward‑looking plans. Our climate‑related targets and goals were

approved by the Board and are reviewed by the Board and its Committees

through at least annual performance updates, the Cash and Deferred Plan

(CDP) scorecard and the social value scorecard.

The climate‑related targets and goals published in the BHP Annual Report

2025, our CTAP 2024 and in this Sustainability Report are unchanged

(see section 5 Metrics and targets on page 76). Certain aspects of our

assumptions and plans relating to decarbonisation since our CTAP 2024

have been updated, as outlined in our Annual Report 2025 and in the

following section.

2 Performance against our operational and

value chain GHG emissions targets and goals

2.1 Operational GHG emissions (Scopes 1 and 2

emissions from our operated assets)

2.1.1 FY2026 performance and highlights

– In FY2026, our operational GHG emissions, measured for performance

against our target and goal, were 9.4 MtCO

‑e, 33 per cent below

our FY2020 emissions (baseline and performance data adjusted

In FY2026, we had stable emissions performance at WAIO and

Escondida and lower emissions at Western Australia Nickel compared

to FY2025 due to it being in temporary suspension. Higher emissions

at BMA were driven by higher material movement and more

methane‑intensive mining areas. At NSWEC, operational GHG

emissions increased relative to FY2025 reflecting higher production

and a revised methane emissions model at NSWEC.

– We have transitioned to using a national residual mix factor (RMF) to

calculate Scope 2 emissions at our Australian assets as we are required

to do where an RMF is available.

The change resulted in an adjustment

to our historical operational GHG emissions inventory by applying the

RMF to the non‑renewable grid electricity consumption for the Australian

assets. Applying this adjustment to our FY2025 emissions inventory

results in a 34 per cent reduction compared to the FY2020 baseline

(previously reported as 36 per cent).

– We met our FY2026 social value scorecard milestone to progress

proof‑of‑concept (PoC) trials for battery‑electric equipment in

collaboration with original equipment manufacturers.

– The PoC trial of two Caterpillar Early Learner battery‑electric haul

trucks at WAIO commenced in March 2026, in collaboration with

Caterpillar and Rio Tinto.

Sustainability Report continued

1. Refer to Table 6a and 6b on pages 70 to 80 for the basis of our adjustments. The FY2020

baseline year (and reference year for our goal) includes operational GHG emissions for

Western Australia Nickel, which transitioned into temporary suspension at the end of the

first half of FY2025 and so had a much lower emissions inventory in FY2026, contributing

towards this percentage.

2. Use of an RMF is required (if available) under the GHG Protocol Scope 2 Guidance that

BHP refers to for the calculation of our market‑based Scope 2 emissions, used in the

measurement of our operational GHG emissions target and goal.

3. We define regulatory carbon credits to mean those used for compliance under regulatory

schemes, such as the Safeguard Mechanism in Australia.

4. 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).

5. We use the market‑based method for measuring Scope 2 emissions for our target

and goal, enabling us to reflect the renewable energy we procure.

– We commenced the PoC trial of two Wabtec FLXdrive battery‑electric

locomotives received at WAIO’s Port Hedland operations in

November 2025. Commissioning activities are now underway following

accreditation approval from the Office of the National Rail Safety

Regulator (ONRSR) for the operation of battery‑electric locomotives.

– We also received in Perth two battery‑electric locomotives from

Progress Rail that will be transported to Port Hedland for testing

as part of the trial in FY2027.

– We announced MoUs with BYD, CATL and Siemens Mobility and

have worked with these OEMs and XCMG in FY2026 to define

opportunities for collaboration.

– The following power purchase agreements (PPAs) became operational

during FY2026:

– the APA‑operated solar farm and battery energy storage system

in the Pilbara, which will supply up to 30 per cent of the current

electricity demand for WAIO’s Port Hedland operations

– the Neoen‑operated Goyder South Wind Farm and Blythe Battery in

South Australia, which supply 70 megawatts of renewable electricity

to Copper South Australia

– We increased future renewable energy supply through the following:

– We signed the largest PPA for Copper South Australia to date,

partnering with Neoen.

– We entered into an agreement with Sungrow to develop on‑site

renewable electricity self‑generation and storage projects at Escondida

and Spence, adding capacity to help maintain 100 per cent renewable

electricity supply as demand associated with copper production grows.

– The methane management program at BMA progressed with the

following activities:

– The gas exploration drilling program completed at the Saraji complex

and remains on track to complete the program in FY2027.

– The PoC trial of a methane gas extraction drainage technique

in an open‑cut setting commenced and will continue in FY2027.

We did not meet our social value scorecard FY2026 milestone to complete

the Escondida Boiler Diesel Displacement project and begin construction

of its counterpart project at Spence. Construction delays mean the

Escondida project is now expected to be completed in FY2027 and the

Spence project is also delayed. The delays are not anticipated to impact

BHP’s FY2030 medium‑term target for operational GHG emissions.

2.1.2 Pathway to our medium-term target

Based on our current operational GHG emissions forecast for FY2030 and

methodologies for GHG emissions accounting (see 7.6 Methodology for

calculating Scopes 1, 2 and 3 GHG emissions on page 89), we are on track

to achieve 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 a FY2020 baseline. Our assessment of progress against

the medium‑term target is subject to uncertainties and varies depending on

underlying assumptions. We monitor our annual emissions and percentage

reduction relative to the FY2020 baseline. Our analysis shows that we

still have much to do, and we continue to expect progress towards our

medium‑term target and long‑term goal to be non‑linear. We also measure

our medium‑term target on a cumulative GHG emissions basis against

an overall carbon budget (which we aim to be at or below), defined by

a hypothetical straight line between our operational GHG emissions in

the FY2020 baseline year and a 30 per cent reduction to that baseline in

FY2030. Our approach to meeting our medium‑term target remains aligned

with our CTAP 2024 and we continue to use the milestones in our social

value scorecard to help track progress against our medium‑term target.

We will not use regulatory carbon credits

to meet our medium‑term target.

While we intend to achieve the target through structural abatement, if an

unexpected shortfall arises, we may use voluntary carbon credits

that

meet our integrity standards to address the remaining gap.

To achieve our operational GHG emissions medium‑term target (without

offsetting), we require the following actions, which we are actively pursuing:

– Procuring renewable electricity.

Given that most of our operated assets

are located in grid‑connected regions with access to renewable energy,

we continue to seek to secure low to zero GHG emissions power in the

near term and at scale through PPAs.

Our Chilean assets have operated on 100 per cent renewable electricity

since CY2022 and BMA reached 100 per cent from July 2026 (based

on current forecast demand). These assets are expected to maintain

100 per cent renewable power consumption through to FY2030.

We have a pathway to achieve 100 per cent renewable electricity for

Copper South Australia, including new PPAs commencing in FY2028

and for the start of FY2030.

58 BHP Annual Report 2026

Starting in FY2026, our WAIO Port Hedland operation sources up

to 30 per cent of its electricity from renewable energy. Power for our

WAIO inland operations is primarily supplied by our highly efficient

Yarnima combined‑cycle gas turbine power station, operating within

an islanded grid. We intend to incorporate renewable and/or other

low to zero GHG emissions energy as the power demand increases

with our electrification program. Jansen is expected to transition to

renewable energy after FY2030.

A key dependency in our renewable electricity pathway is the extent

to which contracted PPAs deliver renewable electricity in line with

future consumption requirements, particularly as demand increases

through our growth program. We will monitor and assess the optimal

pathway to mitigate this risk, including, if required, with renewable

energy certificates.

– Minimising fugitive methane emissions to the greatest extent technically

and commercially viable. For example, at BMA’s Broadmeadow

underground mine, where methane is captured primarily for safety

reasons, the methane is flared to convert it into less harmful carbon

dioxide when safe and practicable.

– Advancing Scope 1 emissions abatement initiatives, including the

execution of the boiler diesel displacement project at Escondida.

This project will replace diesel‑fired boilers in copper cathode plants

with a zero‑emission solution.

– Commissioning the Jansen potash project with a GHG emissions

intensity of approximately 50 per cent lower Scope 1 emissions

per tonne of product compared to the average potash mine in

Saskatchewan. This outcome is largely enabled by the electrification

of approximately 80 per cent of the mining equipment. This is possible

because the electrically powered borer and conveyor systems and

underground battery‑electric equipment suitable for a potash orebody

and our mining configuration are already commercially available.

– Assessing viable lower GHG emissions options in those of our major

capital projects that are expected to either sustain or increase production.

As outlined in our CTAP 2024 and noted above, our GHG emissions

trajectory toward the FY2030 medium‑term target is not expected to be

linear as the business grows, including through investments in our copper

assets and our Jansen potash project. As indicated in Figure 2, our

projected pathway to FY2030 for our operational GHG emissions includes

the potential for emissions abatement to fall below 30 per cent relative

to the FY2020 baseline as growth projects commence and production

increases, before returning to a reduction of at least 30 per cent by FY2030

to meet our medium‑term target.

1. GHG emissions are presented on an adjusted basis (refer to Table 6a on page 79 for the basis of our adjustments). Future GHG emission estimates are based on current annual business

plans. ‘Other changes’ refers to changes in GHG emissions from energy consumption other than electricity and lower GHG emissions from Western Australia Nickel for the period of its

temporary suspension from the end of the first half of FY2025 until the end of FY2027 (assumed restart from FY2028 for illustrative purposes only; BHP intends to review the decision

to temporarily suspend Western Australia Nickel by February 2027). ‘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

and methane emissions, natural gas, coal and coke, fuel oil, liquefied petroleum gas or other sources. ‘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. Refer to 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89 for the methodologies used to calculate our GHG emissions.

Future GHG emissions calculation methodology changes may affect the information presented in this chart.

Figure 1: Projected pathway to our medium-term target for operational GHG emissions

Scopes 1 and 2 emissions from our operated assets (million tonnes of carbon dioxide equivalent (MtCO

‑e))

FY2020 Electricity:

Chile

Electricity:

Australia

Other

changes

FY2026 Organic

growth

New

PPAs

Other

sources

Diesel FY2030

Forecast

Other sources

Organic growth

Other changes

Electricity

Diesel

Range of uncertainty

2.1.3 Strategy for our long-term goal

We have a long‑term goal to achieve net zero operational GHG emissions

(Scopes 1 and 2 emissions from our operated assets) by CY2050.

Our objective is to achieve our CY2050 net zero goal by prioritising

structural abatement in our operational GHG emissions where technologies

are technologically mature, commercially available and commercially

viable. We expect carbon credits will be used only to address residual

emissions that cannot be eliminated through structural abatement measures.

To progress towards structural abatement for our long‑term goal, we

are taking the following actions for each of our key emissions sources.

Electricity

Beyond FY2030, we intend to continue to pursue opportunities to procure

additional renewable and other low to zero GHG emissions electricity with

the aim to transition the remaining grid‑connected sites at our operated

assets to 100 per cent zero GHG emissions electricity, where available

and commercially viable. Additional renewable (and/or other low to zero

GHG emissions) electricity will be required to support the increased

demand associated with production growth and electrifying mining

and rail equipment to displace diesel.

For our WAIO inland operations that currently source electricity from our own

islanded grid, we are progressing studies to introduce renewable generation

aligned with future demand growth. Power requirements at WAIO are

expected to increase to three to four times the current generation upon the

adoption of electrified mining equipment and locomotives. Our strategy is

to scale renewable supply in step with this phased deployment.

Diesel

Following significant progress in reducing emissions from electricity,

diesel displacement is the largest lever to reduce operational GHG

emissions across BHP in the future.

Electrification remains our preferred pathway to displace diesel across

our operations. Battery‑electric equipment, supported by renewable and/or

other low to zero GHG emissions electricity and associated infrastructure,

has the potential to significantly reduce operational emissions while

maintaining productivity and operational performance. The transition

is complex and requires more than replacing diesel equipment. It also

requires new charging and power infrastructure, updated operating and

maintenance practices, and, importantly, the skills and capabilities needed

to operate these technologies safely and reliably at scale. To support this

transition, we are working with original equipment manufacturers through

a staged program of trials and pilot projects. These programs help us

better understand technology performance in our operating environments,

build organisational capability and reduce risk before broader deployment.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Battery-electric haul trucks

At Jimblebar, we commenced a PoC trial of two ~220 tonne class

Caterpillar 793 XE Early Learner battery‑electric haul trucks in March

2026, in collaboration with Caterpillar and Rio Tinto.

The trial is designed to evaluate not only truck performance, but also the

broader systems required to support battery‑electric haulage, including

charging infrastructure, energy management, maintenance requirements

and operating practices.

A key industry challenge is maintaining productivity while managing

charging requirements. In FY2027, we expect to commission high‑power

static charging infrastructure and Caterpillar’s Dynamic Energy Transfer

(DET) technology at the Jimblebar test facility. DET and other innovative

charging technologies are an emerging charging system that enables

haul trucks to receive power while operating on haul roads and remains

under development.

We are evaluating both static and dynamic charging with multiple OEMs

because we believe a combination of these technologies may provide a

pathway to large‑scale battery‑electric haulage. Dynamic charging has

the potential to complement static charging by supplying power during

normal operations, reducing charging downtime, improving truck utilisation

and lowering battery energy storage requirements. This phase of the

trial will help us understand whether an integrated charging approach

can deliver the safety, productivity and economic performance required

for battery‑electric haulage at scale.

Insights from the trial are expected to support future truck development and

improve our understanding of the infrastructure, systems and operational

changes required to deploy battery‑electric haul trucks safely, reliably and

productively across our operations in the future.

Diversifying our OEMs

To help de‑risk future diesel displacement pathways, in addition to

the Global Framework Agreement we signed with XCMG in FY2025,

in FY2026 we signed MoUs with CATL, BYD and Siemens Mobility to

explore opportunities. Under our agreement with XCMG, we are exploring

opportunities to trial a range of battery‑electric mining equipment, including

haul trucks and ancillary equipment, across our operations. Through our

collaboration with BYD, we are assessing battery‑electric light vehicle

designs for mining applications and battery cell technologies suitable for

large‑scale mining equipment. We placed an order with BYD for a battery

energy storage system to support a renewable solar power solution at

WAIO’s Redmont Camp.

This is just the beginning. We are developing these relationships to

diversify opportunities to support the development of and potential

access to future market‑leading technologies and innovation for lower

and low to zero GHG emissions technologies, such as next‑generation

battery systems, charging infrastructure, electrified fleet options

and complementary energy‑management solutions. Through these

partnerships, we expect to gain valuable insights into battery performance,

charging approaches and manufacturing models, which may help inform

alternative pathways and technology choices as electrification solutions

for heavy haul mining equipment, including haul trucks and locomotives,

continue to evolve and mature.

Battery-electric locomotives

In FY2026, we commenced a PoC trial with two Wabtec FLXdrive

battery‑electric locomotives. The trial is planned to expand in FY2027

to include two battery‑electric locomotives from Progress Rail.

Once commissioning is complete and the locomotives are ready for

mainline operations, each battery‑electric locomotive is to be added to

a train for mainline testing during FY2027. Once locomotives from both

OEMs are in trial, we expect to be one of the first mining companies

globally to conduct side‑by‑side evaluations of battery‑electric heavy

haul locomotive technologies from two suppliers within the same

operating environment.

These locomotives incorporate different battery technologies and

equipment configurations, with the dual trial designed to enable us to

maintain optionality and de‑risk exposure to uncertainty around technology

readiness. The trial will assess the suitability of battery‑electric designs

for WAIO’s rail network, taking into account its specific topography,

environmental conditions and route distances. Insights from the trial will

inform optimal battery sizing and the associated electrical infrastructure

required for a future battery‑electric locomotive investment.

Ancillary and auxiliary equipment

To support longer‑term decarbonisation and technology readiness, we

plan to trial and deploy certain commercially available electric ancillary

and auxiliary equipment across our Australian operations prior to

FY2030. We have arrangements in place with OEMs to explore options

for electrified equipment, such as graders, water trucks and loaders.

We are commencing a second stage of the trial of the Liebherr 9400E

electric excavator in FY2027 and are installing charging infrastructure to

support the deployment of battery‑electric light vehicles in our Australian

operations from FY2027.

Timelines

Our projected pathway outlined in our CTAP 2024 contemplated the

commencement of deployment of certain battery‑electric equipment prior

to FY2030. As outlined in our Annual Report 2025, progress towards the

battery‑electric haul truck and locomotive technologies that meet our

scale and performance requirements is slower than anticipated, and so

we do not expect to deploy this technology, along with the interdependent

renewable and/or other low to zero GHG emission electricity investments

for the associated power requirements, until post‑FY2030.

Whilst deployment of diesel displacement technologies and supporting

infrastructure is expected post‑FY2030, we are already progressing

enabling activities to support this transition, including pursuing regulatory

approvals, electrical infrastructure planning, forming strategic partnerships

and developing workforce capability. Over the next few years, data and

learnings from our trials will help inform the design, development and

validation of next generation equipment. Sequencing these long‑lead‑time

activities is critical to reducing uncertainty, preserving future optionality and

ensuring BHP is positioned to deploy diesel displacement technologies at

scale as solutions reach commercial readiness.

We intend to adopt battery‑electric haul trucks in our business in a staged

manner to learn from each deployment. We currently expect WAIO to

be the first operation to adopt battery‑electric haul trucks, using the

~220 tonne class of truck. The sequence of deployment across BHP,

including at WAIO, will be informed by factors including when the truck

classes we require become available, asset operating conditions and

the fleet replacement cycles. This may include progressively redeploying

existing fleet across an asset to enable a phased and safe, site‑by‑site

transition, leveraging our portfolio to redeploy fleet and optimise

utilisation across operations.

Sustainability Report continued

60 BHP Annual Report 2026

Alternative technologies

While preserving future optionality is important, not all interim technologies

necessarily accelerate electrification. Some pathways may require

significant capital, infrastructure and organisational change while offering

limited alignment with the long‑term electrification solution. BHP’s approach

is to prioritise investments that maximise long‑term decarbonisation value

while managing operational risk and avoiding potential regret capital.

Consistent with this approach, we continue to evaluate technologies, such

as trolley assist and hybrid solutions for ultra‑class haul fleets, where the

optimal pathway to electrification is still evolving. We continue to monitor the

availability, sustainability and cost of biofuels for potential deployment as

an interim decarbonisation measure and, where appropriate, a longer‑term

solution for hard‑to‑abate diesel equipment.

Fugitive methane

Fugitive methane emissions arise from BMA and NSWEC, but our strategy

is focused on BMA, as BHP plans to cease mining at NSWEC by the end

of FY2030.

BMA is developing a comprehensive methane management strategy

to identify sites and seams that may be viable for prevention measures

(to avoid the release of methane emissions during mining), alongside the

advancement of technologies to prevent or mitigate the quantity of fugitive

methane emissions, particularly for open‑cut coal mining.

Gas resource drilling

Current work is focused on the drilling and analysis program commenced

at BMA during FY2025. The program aims to improve understanding

and forecasting of future methane emissions through better resource

and reservoir characterisation, including methane quality and quantity,

in future mining areas. Data analysis and gas resource modelling will need

to continue into FY2028 due to the time required for laboratory analysis

of samples and the subsequent updating of the gas resource model.

This information will help inform BMA’s methane management strategy.

Methane extraction

We are trialling a novel drilling technology to capture and treat methane

from coal seams closer to the timing of coal extraction than traditional

gas drainage methods. This approach presents a potential opportunity

for flexible, cost‑effective gas drainage, providing closer alignment

between gas drainage activities and coal extraction, reducing the risk

of unnecessary methane extraction and cost if mine plans change.

The trial is designed to test the operability in an active mining environment,

technical viability (gas drainage effectiveness) and commercial viability.

In some of our open‑cut mine locations, fugitive methane concentrations

are too low for drainage to be effective and will require new or emerging

technologies to overcome this barrier. Based on current technology and

operational constraints, BMA does not expect to be able to fully eliminate

fugitive methane emissions by CY2050, as disclosed in our CTAP 2024.

Reaching our net zero emissions position

‘Our GHG emissions reduction pathway’ illustrated by the purple

line in Figure 2 (which is a potential pathway from FY2030) results in

CY2050 abatement in line with our CTAP 2024. While we are trialling

new technologies today, structural abatement for our CY2050 net zero

operational GHG emissions goal remains uncertain as it is dependent on

the technology readiness, commercial availability and commercial viability

of the low to zero GHG emissions technology needed (refer to Transition

risk 2 in Table 1). As technology evolves, we will continue to assess

options, explore partnerships and refine our potential pathway(s) and

associated emissions figure estimates to CY2050.

We have identified additional options that may enable faster or more

substantive decarbonisation, which is represented in the ‘Range of

uncertainty’ under the ‘Our GHG emissions pathway’ line in Figure 2.

That ‘Range of uncertainty’ would result in up to around 80 per cent

structural abatement in CY2050 (based on the FY2020 reference

year), which compares to up to around 85 per cent in our CTAP 2024.

The difference is due to evolving planning assumptions across our

operations and decarbonisation projects between planning cycles.

These planning ranges are based on decarbonisation technologies we are

aware of today, noting this is an evolving landscape, and new options for

decarbonisation may become available in subsequent years.

The potential remaining emissions in CY2050, currently estimated to be

3 to 5 MtCO

‑e, would need to be offset with carbon credits to achieve our

net zero goal, noting that this is subject to change if and when new options

or technologies become available.

Figure 2: Projected (to FY2030) and potential (beyond FY2030) pathway(s) for our operational GHG emissions long-term

net zero goal

Scopes 1 and 2 greenhouse gas emissions from our operated assets (MtCO

‑e)

FY2020 FY2025 FY2030 FY2035 FY2040 FY2045 FY2050

Electricity

DieselNatural gasFugitivesOther sources Range of uncertainty

Organic growth with no GHG emissions reduction

Our GHG emissions reduction pathway

BMA

CleanCo power purchase

agreement (PPA)

Escondida and Spence

Enel PPA and Colbun PPA

Copper SA

Iberdrola PPA

Broadmeadow at BMA

Destruction of drained methane

BMA open-cut pit methane pre-drainage trial

WAIO

Biofuel trial

WAIO

Progress Rail electric

locomotive trials commence

Escondida

Boiler diesel displacement

BMA

CleanCo

PPA 3

WAIO

APA PPA

BMA

CleanCo

PPA 2

Copper SA

Neoen PPA

Copper SA

Neoen PPA 2

Escondida

and Spence

Behind the

Meter

Escondida

and Spence

New PPA

Copper SA

Iberdrola PPA 2

Organic growth with no

GHG emissions reduction

Our GHG emissions

reduction pathway

WAIO

Electric truck

trials commence

Wabtec electric

locomotive trials

commence

WAIO

Electric truck

trials commence

Wabtec FLXdrive

electric locomotive

trials commence

WAIO

Electric

excavator trials

commence

Refer to section 5 Metrics and targets on page 76 for more information on our climate‑related targets and goals, and Transition risk 2 in Table 1 on page 66

for more information on our current and anticipated direct and indirect mitigation efforts

1. Future GHG emissions estimates are based on current annual business plans. Historical GHG emissions are presented on an adjusted basis (refer to Tables 6a and 6b on pages 79 to

80 for the basis of our adjustments). ‘Organic growth with no GHG emissions reduction’ represents business as usual GHG emissions forecast without abatement projects. ‘Our GHG

emissions reduction pathway’ represents planned decarbonisation activities to reach our operational GHG emissions medium‑term target and further structural abatement towards our

long‑term net zero goal (noting that activities to FY2030 comprise our GHG emissions reduction projected pathway and beyond FY2030 indicates our GHG emissions reduction potential

pathway(s), reflecting the different degrees of certainty across the timeframes). Delivery of this pathway depends on these technologies becoming available, being deployed in the

anticipated sequence and achieving the assumed emissions reductions. ‘Range of uncertainty’ refers to higher risk options currently identified that may enable faster or more substantive

decarbonisation than our GHG emissions reduction potential pathway(s). Refer to 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89 for the methodologies

used to calculate our GHG emissions. Future GHG emissions calculation methodology changes may affect the information presented in this chart. Western Australia Nickel is not

represented in the asset‑level activities shown in the chart, reflecting its temporary suspension of operations.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

2.2 Value chain GHG emissions (Scope 3 emissions)

For FY2026, our total reported Scope 3 emissions inventory, measured

for performance against our long‑term net zero goal, was 383.8 MtCO

‑e,

which is 9 per cent higher than in FY2020 (reference year and performance

data adjusted

Our plan to cease mining at the Mt Arthur Coal mine in FY2030 is expected

to reduce the 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) to an immaterial source of our

reported Scope 3 emissions inventory.

Aside from the closure of Mt Arthur Coal mine, we do not currently

anticipate significant reductions in our reported Scope 3 emissions

inventory in upcoming years. The challenges associated with the reduction

of GHG emissions across our value chain include decarbonising in

sectors where technologies and transition pathways are still developing,

and overcoming limitations in the methodologies used to estimate certain

Scope 3 emissions categories. For example, Category 10 emissions

from the processing of sold products are currently estimated using

non‑customer‑specific data and therefore cannot reflect actual GHG

emissions reductions achieved by individual customers. As we advance

initiatives to support reductions in Scope 3 emissions associated

with the processing of sold products, adopting a more granular and

customer‑specific reporting methodology would allow us to better capture

GHG emissions reductions. These reductions may result from changes

to product quality or the use of lower GHG emissions processing routes,

including those enabled by our investments in the development of lower

GHG emissions steelmaking pathways.

We have a long‑term goal of net zero Scope 3 emissions by CY2050.

Our key focus areas for reducing our Scope 3 emissions have not changed

since we published our CTAP 2024 and remain those associated with

steelmaking, shipping and our suppliers. 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. Achievement of our long‑term net zero

goal is uncertain, particularly given the challenges of a net zero pathway for

our customers in steelmaking, and we cannot ensure the outcome alone.

2.2.1 Steelmaking

We have a medium‑term goal for CY2030 to support industry to develop

technologies capable of 30 per cent lower GHG emissions intensity relative

to conventional blast furnace steelmaking with widespread adoption

expected post‑CY2030. Our approach to achieving this goal is to identify

1. Refer to Table 6c on page 80 for the basis of our adjustments.

2. CY2025 data sourced from the World Steel Association.

3. Relative to conventional blast furnace steelmaking at the respective testing sites.

4. Raw materials flexibility indicates whether the process route can use variable iron ore and scrap grades (indicated by the full bar) or is sensitive to ore and scrap quality (as, for example, is

the electric arc furnace). We expect technologies with wider raw material flexibility to be more attractive options for steelmakers. The blast furnace process route GHG emissions intensity

‘today’ value has been calculated using a baseline reference of 2.2 tonnes of CO

‑e per tonne of crude steel, as sourced from the IEA Iron and Steel Technology Roadmap (October 2020).

The ‘end state’ value assumes a blast furnace basic oxygen furnace steel plant with electrolytic hydrogen injection, top gas recycling and carbon capture utilisation and storage (CCUS)

applied to key point sources (coke ovens underfiring, blast furnace hot stoves and on‑site power plant), utilising raw materials. The electric arc furnace route GHG emissions intensity

‘today’ value is sourced from an average of a sample of natural gas‑based direct reduced iron electric arc furnace sites utilising up to 25 per cent scrap, as well as the CRU Steel Cost

Model and BHP analysis. All other GHG emissions intensity values are sourced from BHP analysis.

Figure 3: Potential ore-based (integrated) steelmaking technology pathways

These pathways offer the greatest potential for steel decarbonisation with sufficient flexibility, scalability and efficiency.

Raw materials

flexibility

Current state End state

Primary

reductant

Emissions

2,3

(t-CO

/t-steel)

Primary

reductant

Emissions

(t-CO

/t-steel)

Modified blast

furnace (BF)

Blast furnace –

basic oxygen

furnace (BOF)

BF – BOF pathway

very high

Carbon

2.2

Carbon

0.4

Direct reduced

iron (DRI)

– electric

steelmaking

DRI – ESF pathway

high

Carbon

(natural gas)

1.2

Hydrogen

0.4

DRI – EAF pathway

very low

Carbon

(natural gas)

1.3

Hydrogen

0.3

Electrochemical

reduction (ER)

Electrolysis pathway

high

Electricity

2.6

Renewable

electricity

<0.1

Sustainability Report continued

and focus our efforts on the technologies with the strongest potential

to enable near zero emissions steelmaking. Figure 3 outlines the three

ore‑based steelmaking process routes with the strongest potential to enable

near zero emissions intensity that we consider most likely to be viable

for widespread adoption due to their flexibility, scalability and efficiency.

These process routes are consistent with those outlined in our CTAP 2024

and encompass the modification of existing blast furnace technology, which

is expected to remain important in global steel production for decades to

come, and the development of alternative, lower GHG emissions steelmaking

processes using direct reduced iron (DRI) and electric furnaces (EF), such as

the electric smelting furnace (ESF), or using electrochemical reduction (ER).

Our approach is underpinned by targeted research and development (R&D),

feasibility studies, pilots and demonstration projects, and collaborative

partnerships. Our collaborations include 13 steelmakers. Together, these

steelmakers accounted for approximately 25 per cent of reported global

steel production in CY2025

and, given their scale and role in the industry,

could play an important role in the future deployment of successful

lower GHG emissions steelmaking technologies. We also provide direct

funding into R&D, pilots and demonstrations and have made early-stage

investments in the emerging electrochemical pathway for steel production

through BHP Ventures, our dedicated venture capital unit.

As we progress towards our goal for CY2030, we will continue exploring

options to support modified blast furnace abatement demonstrations,

scale up and optimisation for the application of carbon capture in blast

furnace steel plant sites and complete further trials using BHP’s Pilbara

iron ores under the DRI‑EF and ER pathways.

FY2026 highlights

In our modified blast furnace process route:

– With our partners Zenith Steel, we progressed into testing campaigns for

injecting hydrogen‑rich byproduct gas into the blast furnace to partially

replace pulverised coal injection and coke. These trials demonstrated a

2–3 per cent CO

emissions intensity reduction on crude steel basis

and

ongoing operations will explore further improvements.

– We advanced carbon capture trials on blast furnace gas across multiple

technologies and sites, to potentially enable at least 20–30 per cent CO

emissions intensity reduction when applied at scale.

Pilot campaigns

completed in FY2026 tested MHI’s amine‑based CO

capture technology

at ArcelorMittal Ghent (Belgium, along with partner MDP) and HBIS’s

vacuum pressure swing absorption in Hebei (China). Both campaigns

demonstrated key performance metrics in operating time, CO

capture

rate and purity.

62 BHP Annual Report 2026

– We partnered with steelmakers and other value chain participants in a

consortium to develop a first‑of‑its‑kind Carbon Capture, Utilisation and

Storage Hub Study. In April 2026, the consortium completed Phase 1 of

the study, identifying five potential hub locations across India, Indonesia,

Malaysia and Australia. Detailed feasibility work is planned for FY2027.

In our Direct Reduction Iron – Electric Smelting Furnace (DRI‑ESF)

steelmaking process route:

– The design phase for the Neosmelt DRI‑ESF demonstration‑scale plant,

with BlueScope, Mitsui Iron Ore Development, Rio Tinto and Woodside,

is 90 per cent complete. The pilot is expected to be commissioned in

CY2029, subject to a Final Investment Decision (FID) in Q4 CY2026.

– We progressed enabling the use of our iron ores in pellet‑shaft DRI

via commercial scale pellet trials with Zenith Steel in China achieving

>50 per cent of our Pilbara iron ore in the feed blend. We continue to

work to optimise pelletising of Pilbara ores and better understand the

operational trade‑offs towards the shaft DRI‑ESF pathway, which offers

greater than 80 per cent CO

‑e reduction potential compared with

conventional blast furnace.

– We signed an MoU with POSCO to partner in their innovative HyREX

project trials with hydrogen fluidised bed DRI‑ESF, which complements

our pellet‑shaft DRI project and Neosmelt demonstration‑scale plant.

In our Electrochemical Reduction (ER) process route:

– We continued working with BHP Ventures portfolio companies Boston

Metal and Electra to test and trial BHP’s Pilbara ores in their pilot

plants, supplying iron ore samples and technical support for scale‑up

and assessment of iron ore performance. Notably, Electra reported a

pilot campaign, including BHP’s Pilbara iron ore fines, in a 1,400‑hour

continuous run test, and has begun construction on a larger

demonstration plant targeting 500–1,000 tpa metal production.

2.2.2 Direct suppliers

We have a long‑term target to achieve net zero by CY2050 for the

operational GHG emissions (Scopes 1 and 2 emissions) of our direct

suppliers. Our strategy to progress towards this target focuses on our

top 500 direct suppliers by spend, which contributed 78 per cent of our

FY2026 total spend on suppliers, and encompasses three areas of focus

– selective purchasing, supportive engagements and measurement and

monitoring of GHG emissions from our direct suppliers.

Our immediate area of focus is on the measurement and monitoring

of GHG emissions from our direct suppliers as we seek to improve

the accuracy of our Scope 3 emissions data. This will mean we are

progressively better able to capture the improvements being implemented

by our suppliers and identify areas that require greater focus. We continue

to improve our procurement processes and mechanisms to better reflect

climate‑related requirements in our sourcing processes and contracts and

enable us to track our suppliers’ progress over time.

FY2026 highlights

– Following a pilot in FY2025, we have successfully incorporated

product‑level GHG emissions data from four strategic suppliers into our

FY2026 reported Scope 3 GHG emissions inventory. Data provided by

these strategic suppliers improved measurement accuracy. This data

accounted for 5 per cent of our Scope 3, Category 1 emissions

(data adjusted).

– We transitioned from using emission factors for our Scope 3 Category

1 reporting (which includes our direct suppliers’ operational GHG

emissions) sourced from Quantis to ones sourced from Watershed’s

Comprehensive Environmental Data Archive (CEDA), which provide

more granular, country‑ and industry‑specific emission factors that are

updated annually and take into account more current data for relevant

industries (taken as a whole) as they progressively decarbonise.

2.2.3 Shipping

We have a 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, and a long‑term target to achieve net

zero by CY2050 for the GHG emissions for all shipping of BHP products.

Additionally, we have made a 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 emission

fuels.

This commitment is subject to the availability of technology, supply,

safety standards and the establishment of reasonable thresholds for price

premiums. Our aims align with the International Maritime Organization’s

mid‑ and long‑term climate ambitions.

As one of the world’s largest dry bulk charterers, our decarbonisation

strategy encompasses improving operational efficiency through voyage

optimisation and technology improvements on vessels we charter in

collaboration with vessel owners, supporting the adoption of lower and

low to zero GHG emission alternative fuels, and strengthening our carbon

accounting practices. This remains consistent with the strategy set out in

our CTAP 2024.

We remain on track to meet our medium‑term goal. For FY2026, the

GHG emissions intensity of BHP‑chartered shipping, measured for

goal performance, was 46 per cent below the baseline year of CY2008

(baseline year and performance data adjusted

For FY2026, our Scope 3, Categories 4 and 9 emissions from shipping,

measured for long‑term net zero target performance, continued their

downward trend resulting in a 1.7 per cent reduction compared to FY2025,

despite a 2.2 per cent increase in voyages.

FY2026 highlights

– As described in our Annual Report 2025, we have retrofitted a

wind‑assisted propulsion system (a Flettner Rotor) on the shipping

vessel M/V Koryu, which delivers our copper concentrates from Chile

to Japan. During FY2026, we validated that the system can produce an

average gross fuel savings of 5.2 per cent on a round voyage between

Chile and Japan, depending on actual wind conditions and optimised

vessel and rotor operations.

– We continued to advance the usage of lower GHG emissions fuels,

such as LNG and biodiesel, across our trade routes. In FY2026, we

expanded biodiesel bunker availability to include the ports of Zhou

Shan, Las Palmas and Pasir Gudang.

– We collaborated with the Global Centre for Maritime Decarbonisation

(of which we are a Founding Member) and HAMR Energy to co‑lead a

pilot that trials a biodiesel blend produced from tallow (waste animal fat)

and used cooking oil on a BHP‑chartered vessel owned by Berge Bulk

transporting iron ore from Western Australia to China. The biodiesel

blend provided 79 per cent emissions abatement as compared to

conventional fuel oil, on an equivalent energy and well‑to‑wake

basis. This pilot seeks to demonstrate the viability of a new fatty acid

methyl ester (FAME) feedstock as marine fuel, expanding potential

supply options.

– In partnership with shipping company NYK, we trialled low‑carbon

bio‑methanol on one of our chartered voyages, transporting copper

concentrates from Chile to China, resulting in a 65 per cent reduction in

well‑to‑wake GHG emissions, compared to the equivalent quantity (by

energy) of conventional fuel oil.

– To prepare for the delivery of our time‑chartered ammonia dual‑fuelled

vessels, expected from FY2029, we continued to work with regulatory

bodies, shipyards and other key stakeholders to address the challenges

for use of ammonia onboard vessels. We also continued to engage with

ammonia fuel supply chain stakeholders across technical, commercial

and supply assurance aspects to ready the supply of low GHG

emissions ammonia.

1. Definition of zero GHG emission fuels is aligned to the proposed IMO Net‑Zero Framework: reduce well‑to‑wake GHG emissions by 80 per cent or more relative to a fossil heavy fuel oil.

First Movers Coalition will assess and align with IMO’s lifecycle analysis methodologies, standards and overall guidance once it is released.

2. Refer to Table 6d on page 81 for the basis of our adjustments.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

3 Strategy for managing climate‑related

risks and opportunities

This section provides information about BHP’s strategy

for managing climate‑related risks and opportunities.

3.1 How we resource our response to climate-related

risks and opportunities

BHP resources our plans and response to climate‑related risks and

opportunities where capital allocation is required through the Capital

Allocation Framework (CAF). The CAF provides flexibility to adjust capital

spending and project phasing to accommodate evolving risks, market

dynamics and cash flow generation.

Operational GHG emission reduction projects are included in the

‘maintenance capital category’ within the CAF, along with other forms of

risk reduction, asset integrity, compliance and major, minor and sustaining

projects intended to preserve the ability to generate value at our operated

assets. The CAF prioritises critical operational GHG emission reduction

projects prior to organic development and other options for excess

cash flow, including those that contribute to our medium‑term target.

Individual projects must also justify the investment based on abatement

efficiency, technology readiness, maturity, operational impact, and

relative economics.

BHP assesses whether capital allocation is needed to strengthen

resilience to climate‑related physical risks by embedding climate

considerations in our asset planning and operational investment decisions.

This includes investment in infrastructure resilience, such as flood

protection and water security, and the consideration of climate‑related

physical risks within both sustaining capital and major project approvals.

In addition to capital expenditure, the Group resources our response

to manage and respond to climate‑related risks and opportunities

through operating costs (e.g. renewable energy consumption) and

human resourcing, which is managed through annual budgeting

and planning processes.

Information on financial effects, including capital and operating

expenditure, is outlined in Table 1, disaggregated for the climate‑related

risks and opportunity BHP has identified. For more information on our

climate transition strategy, our climate‑related reduction targets and goals

and GHG emissions performance, see section 2 Performance against our

operational and value chain GHG emissions targets and goals on page 58

and section 5 Metrics and targets on page 76.

3.1.1 Internal carbon prices

We embed carbon prices within operational asset planning, asset

valuations and operational decision‑making, including through the CAF

and in the prioritisation of operational GHG emission reduction projects.

Investment decisions and asset valuations used for the purposes of

impairment testing consider carbon price assumptions in relevant regions

by applying a carbon price to estimated unmitigated Scopes 1 and 2

GHG emissions over the life of the respective operation.

Our internal carbon prices are derived from internal analysis, which is

reviewed regularly and incorporates the latest regional policy, regulatory

and market developments. In determining BHP’s strategy and carbon

price forecast, factors including a country’s current and announced climate

policies and targets, and societal factors, such as public acceptance and

demographics, are considered. As national‑level climate ambition differs

by country or region and will likely evolve over time, we use regional carbon

price trajectories from today to FY2050. Carbon prices are expected to

rise over time, with BHP’s internal carbon prices ranging from US$0 to

US$100 per tCO

‑e

in FY2026, US$0 to US$146 per tCO

‑e in FY2030

and US$0 to US$250 per tCO

‑e by FY2050

. All prices stated are in real

terms (July 2026) and the range considers the different regions where BHP

and our key customers operate (see Transition risks 1 and 2 in Table 1 on

page 66 for additional information).

Future carbon prices are a significant area of judgement and subject to

inherent uncertainty driven by a range of external factors, including the

pace of policy implementation, the development of compliance carbon

markets and the deployment of lower GHG emissions technologies.

3.2 Climate-related risks and opportunities

BHP has applied judgement in identifying the climate‑related risks

and opportunities outlined in Table 1 below. For the purposes of this

Sustainability Report, BHP refers to these as identified climate‑related

risks and opportunity. This disclosure does not represent an exhaustive list

of all climate‑related risks and opportunities facing BHP. Rather, Table 1

includes those risks and opportunities that BHP has determined could

reasonably be expected to affect our cash flows, access to finance or

cost of capital over the short, medium or long term.

For non‑operated joint venture investments (Antamina, Vicuña, Resolution

Copper and Samarco) (NOJVs), we periodically undertake a process with

respect to our investment in each NOJV to define, review and update key

focus areas potentially material to our investment. We have not identified

any climate‑related risks and opportunities relevant only to an NOJV

investment that could reasonably be expected to affect BHP’s cash flows,

access to finance or cost of capital over the short, medium or long term.

We have otherwise considered potentially material information for our

NOJV investments with respect to our identified climate‑related risks

and opportunity based on information we have available (e.g. via NOJV

governance structures) for our key focus areas review and assessed based

on BHP’s economic exposure as an investor in the NOJVs. This is reflected

in our identified climate‑related opportunity, as described in Table 1.

The climate‑related risks and opportunity listed in Table 1 were identified

from a combination of internal and external inputs. An initial set of

climate‑related risks and opportunities were identified primarily drawing

from BHP’s Risk Framework (see How we manage risk in OFR 6 on

page 21) and associated material

risk profile (for risks) and strategic

planning processes (for opportunities). At BHP, we take an enterprise

approach to risk management and operate under one Risk Framework for

all risks and opportunities (see How we manage risk in OFR 6 on page 21),

including climate‑related transition and physical risks and opportunities

that may impact delivery of our strategy, our operations or our value chain.

This ‘long list’ was then aggregated thematically to create the identified

risks and opportunities representing broad areas of climate‑related risk

or opportunity. Elements from the ‘long list’ of risks and opportunities

were used to identify additional information regarding the nature of each

risk and opportunity, and sources of exposure to provide context and

detail for users of this Sustainability Report. Our identified climate‑related

risks and opportunity were reviewed against external benchmarking

and BHP’s historical reporting, alongside engagement with our Investor

Relations team and other relevant subject‑matter experts to consider

external perspectives, including expectations of primary users of our

general‑purpose financial reports. The outcomes of our climate‑related

scenario analysis were also considered as a subsequent cross‑check to

test the suitability of our identified climate‑related risks and opportunity

(see 3.3 Scenario analysis and resilience on page 72). Aspects of our

identified climate‑related risks and opportunity are also incorporated into

our risk factors described in OFR 6 on page 22. Further detail regarding

how identification, assessment and monitoring of climate‑related risks

and opportunities is incorporated into our Risk Framework is described

in section 4 Risk management on page 76.

1. The low end of each range is anchored by the low‑case carbon prices for regions without legislated carbon prices, such as the US and parts of Southeast Asia. The high end of each range

is anchored by the high‑case carbon prices for regions with higher current and projected carbon price trajectories, such as the EU and the UK.

2. Material as assessed under BHP’s Risk Framework.

Sustainability Report continued

64 BHP Annual Report 2026

Demand‑related risks and opportunities for the Group’s commodities

were considered in determining the identified climate‑related risks and

opportunity. While steelmaking coal (risk) and copper (opportunity)

were included, other commodities did not meet the criteria for inclusion.

Energy coal demand risk was considered in the ‘long list’ of potential

climate‑related risks, however given BHP’s plan to cease mining at Mt Arthur

Coal in FY2030 and the relatively small contribution of NSWEC to the

Group’s EBITDA, we determined it was not reasonably expected to affect

our prospects and so have not included it as an identified climate‑related

risk for the purposes of this Sustainability Report (see 3.4 Equitable Change

and Transition – New South Wales Energy Coal on page 75 for information

regarding equitable change and transition at NSWEC). Similarly, potential

opportunity associated with increased uranium demand was considered but

not included, as uranium is a by‑product of the Group’s copper operations

and not a core commodity. Increased demand for potash was also

considered, however we consider potash demand to be primarily driven by

population growth and land competition, and while there are climate‑related

factors, these are considered less material drivers relative to the identified

copper opportunity. Finally, increased demand for nickel was considered but

not identified as a climate‑related opportunity at this point in time, reflecting

the current temporary suspension of Western Australia Nickel operations.

Our identified climate‑related risks and opportunity detailed in Table 1 are:

– Transition risk 1: Policy, legal and reputational

– Transition risk 2: Availability and commercial viability of operational

decarbonisation technology

– Transition risk 3: Accelerated decrease in steelmaking coal demand

– Transition opportunity 1: Copper demand

– Physical risk 1: Physical climate‑related risks

Table 1 provides information on the nature of each identified climate‑related

risk and opportunity, the related time horizons and actual or potential

impacts, and the associated current and anticipated financial effects.

Refer to 7.4 .3 Time horizons on page 88 for how we define our short‑,

medium‑ and long‑term time horizons referenced in this Sustainability

Report, which are aligned to our strategic planning and risk management.

Refer to 7.4.4 Current and anticipated financial effects on page 88 for how

we define the current and anticipated financial effects referenced in this

Sustainability Report.

Changes to BHP’s climate change strategy, global decarbonisation

trends or developments in climate modelling (including in relation to

climate‑related physical risks) may impact BHP’s significant judgements

or key estimates in addition to financial results, cash flows and the

carrying values of certain assets and liabilities in future reporting periods.

Based on current information, none of the identified climate‑related

risks or opportunity are expected to result in a material adjustment to

the carrying amounts of assets and liabilities disclosed in the Group’s

Financial Statements within the next annual reporting period. Refer to

Financial Statements note 16 ‘Climate change’ on pages 157 to 159 for

more information. BHP’s strategy to continue to manage climate‑related

risks and opportunities, including any investment and disposal plans and

planned sources of funding, and their effects on our financial position

may evolve over time. Material anticipated financial effects over the short,

medium and long term, as currently assessed, including potential impacts

on future investment and capital expenditure, are outlined in Table 1.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Table 1 – Our identified climate-related risks and opportunities

Transition risk 1 Policy, legal and reputational

Time horizon

Medium term 1–5 years Long term 5–30 years

Related risk factor (see OFR 6): Portfolio strategy, Access to markets, Environment

Context

BHP is exposed to increasing scrutiny and evolving climate‑related policy,

regulatory and legal risks associated with GHG emissions. Key risks include:

– stricter government decarbonisation policies (e.g. Australia’s Safeguard

Mechanism (SGM))

– increased potential for climate‑related litigation and other legal risks

– changing and divergent climate change‑related policy settings across

relevant jurisdictions

This risk could give rise to higher costs associated with carbon pricing, regulatory

compliance, mitigation activities and legal matters, which may reduce future

profitability and cash flows and potentially increase the risk of impairment. It may

also impact BHP’s licence to operate, access to capital and ability to maintain

stakeholder trust. Our mining operations in Australia, Chile and Canada, as well

as other growth‑focused jurisdictions, may be exposed under this risk.

Assets or business activities most vulnerable to this risk and associated metric

– The FY2026 carrying value of property, plant and equipment, intangible assets and goodwill within the groups of cash generating units (CGUs) that include

facilities covered by the Australian SGM (the most material GHG emission reduction policy relevant to BHP) and that were considered as part of BHP’s impairment

assessment was US$51.4 billion, representing 63 per cent of the Group’s total carrying value of property, plant and equipment, intangible assets and goodwill.

Strategy and management actions

– Progress towards and delivery of our operational and value chain GHG emissions targets and goals (see section 2 Performance against our operational

and value chain GHG emissions targets and goals on page 58).

– Active engagement in policy advocacy to support the development of effective climate policies. BHP’s Climate Policy Principles are available at

bhp.com/sustainability/climate‑change/advocacy‑on‑climate‑policy

– Consideration of carbon pricing within investment decisions and asset valuations used for the purposes of impairment testing (see section 5

Metrics and targets on page 76).

Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159)

– Climate‑related transition risks and opportunities and asset carrying values

– Acquisition and use of carbon credits

– Expenditure on operational decarbonisation

– Expenditure to support value chain decarbonisation

Current financial effects (30 June 2026)

– No impairments were recognised as a result of this risk in the current

reporting period.

– Current year SGM obligation, to be settled in the following reporting period:

US$23 million (BHP share), US$33 million (100 per cent basis).

– Carbon credit assets comprising prepayments and intangible assets:

US$71 million, which are expected to be used to satisfy SGM obligations.

– Incremental operational GHG emissions reduction spend (capital

expenditure, operating expenditure and lease payments): US$65 million.

– Operational expenditure on renewable energy (which represents

80 per cent of BHP’s total electricity consumption) is embedded within raw

materials and consumables in Financial Statements note 5 ‘Expenses and

other income’ on page 144.

– Balance sheet amounts related to renewable electricity power purchase

agreements:

– Lease liabilities: US$43 million

– Financial derivatives: US$49 million

– Incremental value chain decarbonisation spend (operational expenditure):

US$36 million.

– No material current financial effects were identified with respect to

climate‑related litigation.

Anticipated financial effects

– Carbon credits:

– Credits will continue to be purchased and/or generated to satisfy

regulatory liabilities, with the SGM liability expected to remain under

US$75 million per annum (BHP share, nominal), under US$100 million

per annum (100 per cent basis, nominal) in the short to medium term

(between FY2027 and FY2030).

– Post‑FY2030 obligations will be contingent upon the Australian

Government’s approach to the future of the SGM, which is due to be

reviewed in FY2027. BHP has not quantified anticipated financial effects

beyond FY2030 as the level of measurement uncertainty involved in

estimating those effects is so high and any estimation (both qualitative

and quantitative) would be speculative in nature (and therefore not

decision useful) given the outcomes of the review of the SGM are not

yet known. The nature of any potential financial effects, being an annual

liability for acquisition and/or application of carbon credits to satisfy the

obligation, is not expected to change.

– Anticipated expenditure:

– Incremental operational GHG emissions reduction capital expenditure

and lease payments: approximately US$50 million in FY2027 and

approximately US$0.5 billion over the medium term (between FY2028

and FY2031), weighted towards the end of the period. Expenditure in

the latter years of the medium term is dependent on the availability and

commercial viability of relevant decarbonisation technologies.

– Annual incremental value chain decarbonisation spend is expected to be

uneven in nature, driven by the timing of investment cash calls and the

structure of underlying agreements. Based on historical trends and known

commitments, spend in the short to medium term is expected to remain

broadly consistent with current levels and recent periods.

– In the long term (FY2032 onwards), the level of measurement uncertainty

involved in estimating total potential expenditure, driven primarily by

uncertainty in technology readiness, commercial availability and commercial

viability for relevant decarbonisation technologies and associated measures,

is so high that BHP has not provided quantification of the total potential spend

for this period. Refer to 2.1.3 Strategy for our long-term goal on page 59 and

Transition risk 2 for more information on the drivers of this uncertainty.

– Our use of renewable and/or other low to zero GHG emissions energy is

anticipated to increase in the future, however the nature and quantum of

any financial effects will be dependent on future commercial arrangements.

– We do not consider there to be a reasonable basis at this stage on which to

estimate the anticipated financial effects of climate‑related litigation or other

potential legal actions in future reporting periods on the Group.

– This risk may give rise to reputational impacts, for example if the Group

does not achieve our operational and/or value chain GHG emissions targets

and goals within expected timeframes. Such impacts are inherently indirect,

interdependent and subject to an extended time horizon, and therefore cannot

be reliably estimated.

Sustainability Report continued

66 BHP Annual Report 2026

Transition risk 2 Availability and commercial viability of operational decarbonisation technology

Time horizon

Medium term 1–5 years Long term 5–30 years

Related risk factor (see OFR 6): Portfolio strategy

Context

BHP’s ability to achieve our operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) Group‑level climate‑related targets, goals

and strategies is dependent on the timely availability, selection, safe and effective implementation of enabling technologies and low‑carbon inputs and their

commercial viability. Delays, failed trials, supply constraints or suboptimal technology options could slow operational decarbonisation, impact our ability to

achieve our operational GHG emission medium‑term target and long‑term net zero goal and increase our operational decarbonisation and/or operating costs.

This risk is focused on our operational GHG emissions reduction and excludes technologies relating to value chain decarbonisation.

Assets or business activities that are most vulnerable to this risk and associated metric

– This risk is most concentrated in assets with hard‑to‑abate operational emissions, primarily diesel consumption (e.g. higher use of rail and haul trucks)

and fugitive methane emissions that could require material operational decarbonisation capital expenditure, which in turn could influence strategies for

our Group‑level climate‑related target and goal.

– The business activity most vulnerable to this risk is the nature, timing and amount of future operational decarbonisation capital expenditure. In FY2026,

operational decarbonisation capital expenditure was US$30 million, representing less than 1 per cent of the Group’s total capital expenditure for the year.

Refer to Current and anticipated financial effects below in this table for more information on the potential future financial exposure and associated uncertainty.

Strategy and management actions

– Partnerships and technology trials to advance electric fleet solutions

Electrification of mining equipment and locomotives remains BHP’s

preferred solution to abate diesel emissions. Given these technologies

are still emerging, BHP is implementing a structured program of PoC trials

and pilots to test developing technologies in our operating environments,

in collaboration with OEMs and peers.

We are also working with OEMs and peers through groups such as

the International Council on Mining and Metals to help accelerate the

availability of mining equipment and vehicles that are safe and reliable.

– OEM diversification

We have expanded relationships with global OEMs, including XCMG, BYD,

CATL and Siemens Mobility to support development and access to future

lower and low to zero GHG emissions technologies that could potentially

be deployed in the future, including next‑generation battery systems,

charging infrastructure, electrified fleet options and complementary

energy‑management solutions.

– Assessing alternative pathways

While electrification remains our preferred approach to diesel displacement,

we continue to monitor and evaluate emerging technologies as alternative or

complementary solutions that could potentially be implemented in the future.

– Advancing fugitive emissions abatement

Reducing fugitive methane emissions remains a challenge, particularly in

open‑cut coal mine operations. We seek to abate fugitive emissions to the

greatest extent that is technically and commercially viable. We continue

to engage with industry, research partners and technology providers to

monitor emerging solutions for potential future implementation.

Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159)

– Acquisition and use of carbon credits

– Useful economic lives of property, plant and equipment

– Expenditure on operational decarbonisation

– Timing, scope and expected cost of closure and rehabilitation activities

Current financial effects (30 June 2026)

– Refer to operational GHG emissions reduction expenditure in Transition Risk 1.

– No other material current financial effects identified.

Anticipated financial effects

– Refer to operational GHG emissions reduction expenditure and to potential

reputational impacts in Transition Risk 1.

– Potential use of carbon credits to meet our operational GHG emissions

(Scopes 1 and 2 emissions from our operated assets) target and goal:

– Based on our current operational GHG emissions forecast for FY2030

and methodologies for GHG emissions accounting (see 7.6 Methodology

for calculating Scopes 1, 2 and 3 GHG emissions on page 89), we are

on track to meet our medium‑term target (FY2030) through structural

abatement

and we do not intend to use voluntary carbon credits. We will

not use regulatory carbon credits (i.e. those used for compliance under

regulatory schemes, such as the Safeguard Mechanism in Australia)

to meet our medium‑term target (see section 2 Performance against

our operational and value chain GHG emissions targets and goals on

page 58 and section 5 Metrics and targets on page 76).

– The extent to which carbon credits may be required to meet our CY2050

net zero goal is subject to uncertainty arising from the non‑linearity of

potential abatement pathways due to factors including future growth and

the availability and commercial viability of decarbonisation technology

(refer to 2.1.3 Strategy for our long-term goal on page 59). Additional

drivers of uncertainty include carbon prices (refer to 3.1.1 Internal carbon

prices on page 64) and policy developments in the jurisdictions in which

we operate. Given the level of measurement uncertainty is too high for

an estimate to be decision useful, BHP has not provided quantification of

the potential long‑term anticipated financial effects relating to the use or

purchase of carbon credits.

– BHP does not expect the adoption of decarbonisation technologies to

materially impact the estimated useful lives of our existing fleet assets.

It is expected that haul trucks and other diesel‑powered equipment will

continue to be replaced at the end of their existing useful lives, in line

with regular fleet renewal programs. Existing fleet assets may also be

redeployed across operations to maximise utilisation and support continued

use over their estimated useful lives as part of a phased transition. Once

we know we can safely and reliably deploy battery‑electric equipment in

closure activities, their use will also be reflected in closure cost estimates

as appropriate.

1. For more information refer to our assumptions and further details in 2.1.2 Pathway to our medium-term target on page 58.

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Transition risk 3 Accelerated decrease in steelmaking coal demand

Time horizon

Long term 5–30 years

Related risk factor (see OFR 6): Portfolio strategy, Access to markets

Context

This risk reflects a potential acceleration of timeline for long‑term decline in steelmaking coal demand arising from earlier‑than‑assumed uptake of lower GHG

emissions technology in the steelmaking sector, such as hydrogen‑based direct reduction, electric smelting furnaces and electrolysis. BHP continues to expect

demand for steelmaking coal to remain robust for decades but the potential exists for blast furnace iron making, which depends on coke made from steelmaking

coal, to be displaced at scale by emergent technologies faster than we expect, which presents a strategic risk that could further impact the demand outlook for

steelmaking coal and prospects of our steelmaking coal business and the Group’s portfolio.

Assets or business activities that are most vulnerable to this risk and associated metrics

– BMA contribution to FY2026 Underlying EBITDA: US$0.7 billion,

representing 2 per cent of the Group total.

– BMA FY2026 net operating assets: US$6.4 billion, representing 9 per cent

of the Group total.

Strategy and management actions

We believe a feasible GHG emissions intensity reduction trajectory for

steelmaking will involve a combination of conventional blast furnace assets

(modified to reduce their GHG emission intensities), as well as the progressive

introduction of near zero emission process routes.

– Through divestment of our interest in BHP Mitsui Coal (BMC) in FY2022

and the divestment of the Blackwater and Daunia mines by BMA in FY2024,

we have reshaped our portfolio to focus on producing higher‑quality

steelmaking coal to support conventional blast furnaces, which we

expect will continue operating, with a preference for using higher‑quality

steelmaking coal to enable greater efficiency and lower GHG emissions

intensity steelmaking, into the long term.

– We are supporting the development and adoption of modifications

to lower GHG emissions intensity of existing blast furnace technology

in steelmaking.

See section 2 Performance against our operational and value chain

GHG emissions targets and goals on page 58 for detail on our approach

to steelmaking decarbonisation and FY2026 actions.

Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159)

– Portfolio decisions

– Climate‑related transition risks and opportunities and asset carrying values

– Timing, scope and expected cost of closure and rehabilitation activities

Current financial effects (30 June 2026)

– Financial performance of BMA is influenced by a range of factors,

including climate‑related factors, which cannot be fully isolated from other

operational and market drivers. The climate‑related factor considerations,

including assumptions regarding commodity demand, pricing, costs, policy

settings and closure timing are incorporated into the cash flow forecasts

and key assumptions supporting valuations used for the purposes of BHP’s

impairment assessments. No impairment has been recognised in relation to

BMA in the current reporting period.

– While sustaining capital continues to be deployed to maintain safe

operations and reduce operational risk, no growth capital was spent

at BMA in FY2026.

Anticipated financial effects

– BHP continues to expect demand for steelmaking coal to remain robust

in the long term, reflecting ongoing reliance on the significant component

of global steelmaking capacity provided by blast furnace steelmaking, the

relatively young blast furnace fleet in China and the new blast furnace

capacity expected to come online in India and Southeast Asia in the

coming decade.

– While climate‑related policy and transition dynamics represent a source

of uncertainty, BHP’s steelmaking coal production and financial effects,

including but not limited to EBITDA, carrying value of assets, and closure

costs are anticipated to be influenced by factors such as mine life depletion,

coal seam characteristics and operational considerations. These factors

interact in ways that make the climate‑related financial effects not

separately identifiable from other underlying drivers.

However, for illustrative purposes only of potential impacts, a US$1/t

change in steelmaking coal price would result in an approximate impact

of US$12 million on FY2026 Underlying EBITDA.

– There is no growth capital expenditure currently planned at BMA over the

short to medium term. Any future expenditure would be subject to BHP’s

Capital Allocation Framework, which we use to assess the most efficient

and effective way to deploy capital.

1. Percentage contribution to Group Underlying EBITDA, excluding Group and unallocated items.

2. EBITDA sensitivities: assumes total volume exposed to prices; determined on the basis of BHP’s existing portfolio.

Sustainability Report continued

68 BHP Annual Report 2026

Transition opportunity 1 Copper demand

Time horizon

Short term up to 1 year Medium term 1–5 years Long term 5–30 years

Related risk factor (see OFR 6): Portfolio strategy

Context

The more the global economy progresses in a transition toward net zero, the more important the composition of BHP’s commodity portfolio will become,

reflecting its suitability to support the expected increase in the demand for certain commodities arising from global decarbonisation and the energy transition.

Specifically, copper is a key contributor in the following trends:

– increased electrification across end‑use sectors, driving higher copper usage due to its essential role in electrical infrastructure

– electrified products, such as electric vehicles, require significantly more copper

– expansion of distributed energy grids to meet growing electricity demand, particularly from renewable sources, increases copper requirements

– renewable generation technologies, such as wind farms generally have a high copper intensity

Additionally, copper is essential to building the backbone for the digital transformation and deployment of AI globally.

This opportunity is relevant to commodity attractiveness for our copper‑related NOJV investments in addition to our copper producing operated assets.

Assets or business activities that are most aligned to this opportunity and associated metric

– Copper contribution to FY2026 Underlying EBITDA: US$18.2 billion,

representing 54 per cent of the Group total.

– Copper contribution to FY2026 net operating assets: US$43.5 billion,

representing 59 per cent of the Group total.

Strategy and management actions

BHP continues to strengthen our position in copper through a diversified

portfolio of existing operations and strategic investments in emerging options.

Key copper growth and expansion opportunities (subject, as applicable, to

final investment decisions and external approvals) include:

– Copper South Australia

– Escondida Growth Program

– Cerro Colorado restart and mine life extension project

– Vicuña NOJV

– Resolution Copper (NOJV)

Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159)

– Portfolio decisions – Climate‑related transition risks and opportunities and asset carrying values

Current financial effects (30 June 2026)

– Investment in this opportunity through capital expenditure in copper assets

(operated assets): US$4.6 billion.

– Refer to Financial Statements note 29, ‘Investments accounted for using

the equity method’ on pages 177 to 179 for the financial performance of the

Group’s investments in relevant copper‑related NOJVs.

Anticipated financial effects

– Planned capital expenditure to support the growth of copper assets

(operated assets): estimated to be approximately US$1.4 billion in FY2027,

US$1.9 billion in FY2028 and US$3 billion on average per year (nominal)

across FY2029 to FY2031, subject to the outcomes of BHP’s capital

allocation processes.

– Longer‑term expenditure has not been quantified as the level of

measurement uncertainty associated with estimating future cash outflows

is currently too high for the information to be considered decision useful.

Future expenditure will be subject to BHP’s Capital Allocation Framework,

which provides flexibility to prioritise projects as required in the short and

medium term. Longer‑term investment and projects are also subject to

commercial sensitivity.

– Potential further investment in copper‑related NOJVs is expected to form

part of the Group’s broader copper growth strategy. However, the approval

requirements, timing and quantum of any such investments are subject to

commercial sensitivities and have therefore not been disclosed.

– The financial performance of BHP’s copper business is influenced by a

variety of external drivers, including economic growth, the energy transition

and data centres. Future copper demand, pricing and cost structures are

subject to significant uncertainty driven by macroeconomic conditions, policy

developments, technology adoption, substitution and recycling rates, together

with supply‑side factors, including permitting outcomes, project execution

and climate‑related factors. These variables interact in ways that mean

climate‑related financial effects cannot be reliably identified separately from

other drivers, such as urbanisation and population growth. As a result, it is

not possible to attribute changes in financial performance to climate‑related

factors on a standalone basis. However, for illustrative purposes only of

combined potential impacts, a US¢1/lb change in copper price would result

in an approximate impact of US$39 million on FY2026 Underlying EBITDA.

1. Percentage contribution to Group Underlying EBITDA, excluding Group and unallocated items.

2. Capital and exploration expenditure guidance is subject to movements in exchange rates.

3. EBITDA sensitivities: assumes total volume exposed to prices; determined on the basis of BHP’s existing portfolio; and excludes impact of equity accounted investments.

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Sustainability Report

Physical risk 1 Physical climate-related risks

Time horizon

Short term up to 1 year Medium term 1–5 years Long term 5–30 years

Related risk factor (see OFR 6): Operational events, Key infrastructure failure, Portfolio strategy, Access to markets, Environment

Context

A changing climate could exacerbate and trigger climate‑related physical risks for BHP’s operations, assets and NOJV investments, workforce, communities,

supply chains, customers and other partners. These risks arise from both the increasing severity and/or frequency of acute events (extreme climatic events,

such as floods, cyclones and heatwaves) and chronic changes (such as prolonged drought, rising temperatures and incremental increases in extreme heat

days). The potential effects of these events on our business model and value chain may be both direct and indirect.

Assets or business activities that are most vulnerable to this risk and associated metric

Figure 4 below illustrates the potential impacts of climate hazards to our operations, workforce and value chain. The ticks reflect where the potential impact is

reflected in a material risk scenario for the asset identified under our Risk Framework (including prior to any further exacerbation by a changing climate). The

figures shown are each asset’s proportion of the Group’s FY2026 revenue and reflect the Group’s assessment that the most material potential financial effects

of climate‑related physical risk would be likely to result from production disruptions under both current and projected climate conditions. These percentages

are illustrative and do not indicate that the entirety of an asset’s revenue is or would be at risk, given the localised nature of climate hazards and the diversity

of the Group’s operations, infrastructure and geographic footprint. BMA and WAIO are in regions where adverse weather impacts production more frequently

compared to our other operated assets.

Figure 4: Potential impacts of climate hazards

Potential impact

Relevant

climate hazards

BMA

Copper South

Australia

NSWEC

WAIO

Escondida

Pampa

Norte

Jansen potash

project

Legacy assets

Management actions in place

(direct and indirect)

Workforce health

and safety, and/or

environmental incidents

Extreme weather events,

including extreme precipitation

and/or flooding, extreme

temperatures (hot and cold),

extreme wind (including

cyclones), extreme fire

weather, storms

Changes in average rainfall,

temperature and/or evaporation

– Monitoring of weather and maritime conditions

– Site‑specific severe weather preparation and

response plans, emergency management

systems etc

– Working in heat policies, work/rest regimes

and scheduling adjustments

– Commitment to GISTM conformance, including

climate‑related requirements

– Incorporation of climate resilience in design

e.g. Port Hedland infrastructure is designed to

withstand Category 5 tropical cyclone winds

(see also the Olympic Dam case study on the

following page)

– Infrastructure to channel, remove, and store

excess surface water

– Detailed contingency planning, including for

inbound and outbound supply chain disruptions

– Engagement with third party infrastructure

operators and surface providers

– Critical spares strategy and inventory

management, including for weather‑sensitive

equipment and utilities

– Stockpile capacity

– Equipment maintenance and inspection routines

– Thermal ratings and design tolerances for

fixed and mobile equipment

– Climate considered in closure planning

– Internal guidance developed and applied on

incorporating climate change projections into

mine water planning, hydrologic assessment

and infrastructure design

Disruption in the supply

of critical production

inputs, and access

to supply chain

infrastructure

Identified as value chain risks

Disruption and/or

damage to key

production and

electrical infrastructure

and equipment

Extreme weather events,

including extreme precipitation

and/or flooding, extreme

temperatures (hot and cold),

extreme wind (including

cyclones), extreme fire

weather, storms

Disruption and/or

damage to water supply

and storage, and

tailings management

infrastructure

Extreme precipitation and/or

flooding

Disruption and/or

damage to port and

coastal infrastructure

and operations

Extreme precipitation and/or

flooding, cyclones, sea swell,

sea level rise, changes

in marine ecosystems

from higher sea surface

temperatures

Water shortages

impacting production

Drought and/or changes in

average rainfall, temperature

and/or evaporation

Revenue (US$M)

3,876 6,011 1,714 23,726 17,0 5 4 2,857 N/A

N/A

Revenue as a percentage of the Group’s total (FY2026)

7% 10% 3% 40% 29% 5% N/A

N/A

1. As non‑operating assets, there is currently no attributable revenue. Financial exposure to climate‑related physical risks for these assets primarily relates to the consideration of weather

conditions and climate projections in asset design and construction (Jansen potash project) and closure and rehabilitation activities (Legacy assets).

2. 6 per cent of Group revenue (not included in the table above) is not attributable to an operating asset and relates to third‑party products, unallocated items, inter‑segment adjustments

and other items, as disclosed in Financial Statements note 2 ‘Revenue’ on page 136.

Strategy and management actions

We have in place a range of existing controls (including direct and indirect adaptation measures) for climate‑related physical risks, captured in Figure 4 above,

with examples illustrated in the case studies on page 71.

To understand how a changing climate may alter the frequency and severity of the climate hazards and associated potential operational and productivity

impacts under different climate‑related scenarios and time horizons, we have undertaken studies to evaluate our operational climate‑related physical risks.

See 3.3 Scenario analysis and resilience assessment on page 72 for more detail.

These studies have been informed by our climate hazard dataset (CHD), which covers the assets in the table above and some key value chain locations,

enabling us to deepen our understanding of our operational climate‑related physical risk exposure, alongside local observational data and other sources

of climate projections. The CHD incorporates climate projections from CMIP6 climate models for the period CY2026 to CY2085 informed by three Shared

Socio‑economic Pathway (SSP) scenarios used by the Intergovernmental Panel on Climate Change (IPCC).

The results of these studies have been incorporated into our risk management routines and we continue to strengthen our embedment of climate‑related

physical risk into other business processes including business planning, capital allocation and closure. Our approach to evaluating our operational

climate‑related physical risks is shown in Figure 5 on page 71.

Sustainability Report continued

70 BHP Annual Report 2026

Physical risk 1 Physical climate-related risks

Figure 5: Our approach to climate-related physical 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 climate‑related physical risk (including value‑at‑risk) into business

planning, risk management and capital allocation, as required

To prioritise safety and mitigate the operational interruption risk from climate hazards, we consider climate‑related physical risks as part of our capital projects

decision‑making process, including, where relevant, the incorporation of weather conditions and climate projections in asset design.

Potential current and anticipated Financial Statement impact areas (see Financial Statements note 16 ‘Climate change’ on pages 157 to 159)

– Climate‑related physical risk and asset carrying values – Timing, scope and expected cost of closure and rehabilitation activities

Current financial effects (30 June 2026)

– The consideration of climate‑related physical risks, including BHP’s current

estimate of potential future operational interruptions, is reflected in business

planning and the valuations that underpin BHP’s impairment assessments.

Further detail on the significant judgements and estimates that inform the

FY2026 impairment assessments is included in Financial Statements note

13 ‘Impairment of non‑current assets’ on pages 152 to 154.

– As adaptation measures are generally embedded within the design and

execution of broader capital projects, any related expenditure is typically

not separately identifiable and is reflected within the ‘Additions’ to property,

plant and equipment shown in the table in Financial Statements note 11

‘Property, plant and equipment’ on pages 149 to 150.

– In FY2026, there were no material updates to BHP’s closure and rehabilitation

provisions arising from cost estimate updates relating to the potential impacts

of climate‑related physical risks. Further detail on the key judgements and

estimates impacting BHP’s closure and rehabilitation provisions is provided in

Financial Statements note 15 ‘Closure and rehabilitation provisions’ on page

pages 155 to 157 and note 16 ‘Climate change’ on pages 157 to 159.

– While the Group continued to experience weather‑related events during

FY2026, operational resilience and mitigation measures helped to manage

the associated impacts, and no material financial effects were identified.

For example, at BMA, improved wet weather operating performance

enabled us to partially mitigate the potential impacts of higher‑than‑

average rainfall including Tropical Cyclone Koji.

Anticipated financial effects

– Our planning assumptions include production disruption allowances that

reflect weather‑related impacts on operations, including those arising from

climate‑related physical risks. These allowances are informed by historical

weather disruption patterns and/or climate outlooks based on an operation’s

geographic region and asset infrastructure. For operations located in

regions where adverse weather is more likely to impact production on a

regular basis (BMA and WAIO), this includes an annual ‘adverse weather

allowance’ embedded within the short‑, medium‑ and long‑term planning

and operational processes. This allowance has historically represented

approximately 2 per cent or less of the Group’s copper equivalent production

and is embedded within the baseline production planning assumptions.

– Capital expenditure associated with climate‑related physical risk

adaptation measures would typically be incorporated within the broader

capital project scope, so any future adaptation capital expenditure is

not separately identifiable. BHP has not provided quantification of the

combined financial effects (total potential additions to property, plant

and equipment), as the resulting information would not be decision useful.

– Quantifying the financial effects of climate‑related physical risks as

potentially exacerbated by a changing climate is inherently complex and

subject to a high degree of measurement uncertainty, especially over

long‑term time horizons where the range of potential climate futures

and associated impacts is inherently wide.

The Group relies on external climate‑related scenarios, which are

periodically updated to reflect the latest scientific understanding of

the actual or potential impacts of climate change on weather patterns.

Future updates to these scenarios may influence risk assessments and

could result in material changes to financial results and the carrying values

of assets and liabilities in future reporting periods. The timing and nature of

any such changes cannot be predicted, however none are expected in the

next annual reporting period (FY2027).

– Under higher global warming temperature pathways, the frequency, severity and

duration of climate hazards, including extreme rainfall, heatwaves and drought,

are expected to escalate, increasing the risk of operational interruptions and

impacts to financial performance (i.e. impacts to revenue and costs). Our

scenario analysis (see 3.3 Scenario analysis and resilience assessment on

page 72) examined the likelihood and consequence of extreme weather events

and changes in weather patterns under future climate scenarios.

continued

Case study: Flood resilience

at Olympic Dam

At Olympic Dam in South Australia, climate‑informed flood

mapping has strengthened operational resilience in the face

of increasing extreme rainfall risk. The underground mine

contains multiple shafts, declines and vent raises that could

act as pathways for surface water ingress during major flood

events. By integrating future climate projections with flood

modelling and dewatering simulations, we assessed whether

existing drainage and pumping systems could safely manage

projected inflows and improved understanding of risks to key

infrastructure. The work has enabled safer and more reliable

operations by improving dewatering planning and illustrated

a method for integrating climate modelling into system

requirements for an underground operation.

Case study: Combatting algal blooms and

jellyfish at Escondida’s desalination plant

Escondida’s Coloso desalination plant enhances resilience to chronic

water scarcity in northern Chile by providing a reliable water supply to the

Escondida operation. This infrastructure is, however, exposed to rising sea

surface temperatures that increase harmful algal blooms and jellyfish activity,

which can damage intake systems, reduce plant efficiency and, in severe

events, potentially interrupt freshwater supply to mining operations, with

associated downtime and repair costs. To address this risk, Escondida has

implemented controls including implementation of a physical ‘exoskeleton’

barrier and a bubble curtain barrier to prevent marine biomass from

entering the seawater intake pipelines. Further adaptation measures include

monitoring of oceanographic conditions, early warning systems, routine

cleaning and maintenance of intake and pretreatment systems, and ongoing

identification of projects aimed at ensuring operational continuity.

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Sustainability Report

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.

2. The data presented in the WM Net Zero column was obtained from Wood Mackenzie’s Energy Transition Outlook: Net Zero Scenario 2025. The data and information provided by Wood

Mackenzie should not be considered advice, be relied upon, copied or used except as expressly permitted by Wood Mackenzie. Wood Mackenzie takes no responsibility for the use of this

data or information except as specified in an agreement with Wood Mackenzie.

3.3 Scenario analysis and resilience

3.3.1 Overview

BHP uses climate‑related scenario analysis to assess the resilience

of our strategy, business model and portfolio under a range of

future climate outcomes. In FY2026, we assessed resilience using

a lower‑warming 1.5°C‑aligned scenario (Wood Mackenzie Net

Zero) and a higher‑warming ~2.7°C scenario (SSP2‑4.5), alongside

consideration of our planning range, which implies a projected

global temperature increase of approximately 2.2–2.5°C by 2100.

The analysis considered our identified climate‑related risks and

opportunity (see Table 1 on page 66). The results indicate that BHP’s

strategy, portfolio and operations remain resilient under the scenarios

assessed, supported by our strategy formation, and capital allocation

and planning processes. No additional climate‑related risks and/

or opportunities or response actions, including investments, were

identified beyond those already incorporated into our business plans

and decision‑making processes.

3.3.2 Scenario analysis

BHP’s planning range

Our strategy formation and our capital allocation and planning processes are

designed to enable deliberate and timely responses to the climate‑related

risks and opportunities for our portfolio.

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. Our planning range comprises a ‘most likely’

base case, used as the basis for judgements and assumptions in the

Financial Statements, with probabilistic upside and downside cases for

commodity prices that are designed to capture uncertainty. The planning

range reflects BHP’s proprietary forecasts for the global economy and

associated sub‑sectors (e.g. energy, transport, agriculture and steel) and

the resulting market outlook for BHP’s core commodities.

Given the complexity and inherent uncertainty of long‑run forecasting,

we periodically review key assumptions underpinning our planning range

to reflect new information, with a process in place to assess the need to

update internal long‑term price outlooks for developments in the periods

between review cycles.

During FY2026, the Group updated the key assumptions underpinning

our planning range to reflect evolving economic and geopolitical conditions.

As a result, BHP’s planning range now implies a projected global average

temperature increase of approximately 2.2–2.5°C by CY2100 (compared

to the FY2025 assumption of a global average temperature increase of

approximately 2°C), reflecting an updated assessment of BHP’s outlook

on the global decarbonisation pathways.

Approach to scenario analysis

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 test business decisions and

portfolio resilience.

Our approach to climate‑related scenario analysis considered what

would provide useful information to users of this Sustainability Report.

We have used an externally derived lower‑warming scenario aligned to

a 1.5°C temperature outcome and a higher‑warming scenario aligned to

a 2.7°C outcome. The outcomes of these analyses were used to inform the

assessment of BHP’s resilience to climate‑related changes, developments

and uncertainties, with consideration of our identified climate‑related

physical and transition risks and opportunity.

We selected the scenarios based on the following criteria:

– sector relevance and ability to reflect our identified climate‑related

transition/physical risks and opportunity

– ability to capture BHP’s strategic, planning and risk management

time horizons so resilience could be assessed over the full lifecycle

of BHP’s assets

– representation, in accordance with the Corporations Act, of at least one

higher (≥2.5°C) and one lower (1.5°C) global warming scenario, with the

lower‑warming scenario aligning with the latest international agreement

on climate change

– inclusion of relevant quantitative data (e.g. carbon prices, energy mix,

demand/supply shifts, physical hazard intensities) and qualitative

assumptions (e.g. regulatory settings, technological adoption, policy

pathways) and, where possible, alignment with credible externally

published sources

Based on these criteria, we selected the 2025 Wood Mackenzie Net Zero

scenario (WM Net Zero) for our lower‑warming scenario and Shared

Socioeconomic Pathway (SSP) 2‑4.5, defined in the Intergovernmental

Sustainability Report continued

Table 2 – Key inputs and global-level assumptions of lower- and higher-warming scenarios

Input/assumptions WM Net Zero

Lower-warming SSP2-4.5 Higher-warming BHP Base Case

Climate outcome

Global temperature

increase by 2100

1.5°C 2.1–3.5°C (best estimate is 2.7°C) 2.2–2.5°C (range reflects post‑2050 pathway

uncertainty)

Global GHG emissions pathway Energy‑related CO

emissions decline

consistent with a 1.5°C‑aligned

carbon‑budget pathway, with residual

emissions offset through carbon removals.

Emissions plateau then decline

slowly post‑2050; net zero is not

reached this century.

Energy‑related CO

emissions peak around

2030 then decline slowly; outcomes beyond

2050 are uncertain.

Policy and carbon pricing

Policy and technology

assumptions

Early, coordinated and stringent global

policy; strong and consistent capital flows

into lower GHG emissions energy.

Uneven and delayed; policy

ambition falls short of what is

needed for deep decarbonisation.

Current and announced policies enacted, but with

some delays. Cost‑competitive options such as

solar and wind scale quickly, while costlier, less‑

mature lower GHG emissions technologies stall.

Global weighted average

carbon price (real US$/t CO

)

~US$171 (2050) ~US$21–113 (2050) Refer to 3.1.1 Internal carbon prices on

page 64.

Macroeconomic drivers

Global population

(CAGR 2020–2050)

0.59% 0.62% 0.68%

Real GDP growth

(CAGR 2020–2050)

~2.5% ~2.8% ~2.1%

Energy system and technology

Electrification and renewables Electrification of end‑use reaches

55% of total energy demand by 2050.

Renewables dominate power supply.

Renewables expand steadily

but do not displace fossil fuels

at pace.

Electrification reaches 35% of total energy

demand by 2050. Renewables dominate

power supply.

Fossil‑fuel share of

primary energy

Falls sharply to ~30% of primary

energy by 2050.

Remains high; fossil fuels retain

a major share.

Remains substantial; ~66% of primary energy

in 2050.

Risk lens (AASB S2)

Transition risk Higher Lower Moderate

Physical risk Lower Higher Moderate

72 BHP Annual Report 2026

Panel on Climate Change’s (IPCC) Sixth Assessment Report, for our

higher‑warming scenario. We consider these two scenarios provide a

sufficient range of diversity from the base case of our planning range

(BHP Base Case) to suitably inform our resilience assessment. This is

based on both their implied projected global average temperature increases

and their divergent inputs and assumptions. While the temperature range of

SSP2‑4.5 (2.1–3.5°C) overlaps with that of the BHP Base Case, SSP2‑4.5’s

best estimate of 2.7°C exceeds the 2.5°C upper limit of the BHP Base

Case, and is in accordance with the Corporations Act requirement for a

higher‑warming scenario, considered to be met by a ≥2.5°C scenario.

We consider SSP2‑4.5’s broader temperature range and assumptions

to vary sufficiently from the BHP Base Case to enable assessment of

BHP’s resilience to potential climate‑related changes, developments and

uncertainties, with this assessment supported by more detailed information

on potential impacts under SSP2‑4.5 available from our asset‑level and

value chain physical risk studies (as described below). Table 2 shows the

key inputs and assumptions of our selected climate‑related scenarios.

A note on SSP5-8.5: The scenarios selected for our climate‑related

scenario analysis and resilience assessment are relevant across the range

of our identified climate‑related risks and opportunity. In contrast, SSP5‑8.5,

a ~4.4°C scenario, was not selected as a higher‑warming scenario for

portfolio‑level resilience assessment because, as a high GHG emissions

scenario predicated on fossil fuel‑based development, it was deemed less

relevant for climate‑related transition risks. Further, the emissions levels

assumed by SSP5‑8.5 are no longer widely considered plausible by climate

scientists, with the 2100 temperature outcome not represented in the next

generation of climate scenarios (CMIP7) to be used by the IPCC for its

Seventh Assessment Report.

As described below with respect to our higher‑warming climate‑related

scenario analysis, our asset‑level and value chain physical risk studies, which

informed the group‑level resilience assessment, examined SSP5‑8.5 (or its

predecessor RCP8.5), however we do not consider it to be a reasonable or

decision‑useful scenario for portfolio‑level analysis and resilience assessment,

for the aforementioned reasons. Rather, the results of physical risk studies

under SSP5‑8.5 (or RCP8.5) were used for supplementary purposes, such

as consideration in assessment inputs and to inform associated disclosures

where appropriate (e.g. where the potential impact materially diverged from

SSP2‑4.5, or SSP2‑4.5 results were not available), and as a consideration

incorporated into routine annual risk evaluations under our Risk Framework.

Lower-warming climate-related scenario analysis

To inform BHP’s assessment of climate resilience under a lower‑warming

scenario, scenario analysis was undertaken in FY2026 using an externally

sourced 1.5°C scenario, WM Net Zero.

WM Net Zero is one of many hypothetical pathways for the future based on

different assumptions relating to worldwide economies, associated global

energy systems and policy landscapes (key inputs and assumptions are

shown in Table 2). Indicators such as policy settings and technological

change show the appropriate measures are not in place globally to drive

decarbonisation pathways at a pace or scale required to limit the global

average temperature increase to 1.5°C above pre‑industrial levels (particularly

in hard‑to‑abate sectors such as steelmaking), and Wood Mackenzie

highlights WM Net Zero is a challenging outcome that would require significant

changes to achieve (see also Areas of uncertainty and limitations on page 74).

The scenario analysis involved qualitative evaluation of risk exposure

and opportunities at a Group‑level (based on commodities), followed

by quantitative analysis for higher risk, greatest potential benefit or

largest financial effects to individual commodities, focusing on 2030 and

2050 timeframes (noting these differ from the time horizons outlined in

7.4. 3 Time horizons on page 88). This quantitative analysis assessed the

commodity and carbon price‑only sensitivity of enterprise net present value

(NPV) and free cash flow under the WM Net Zero scenario relative to the

BHP Base Case. While energy coal, potash and uranium were included in

our enterprise NPV, they were not subject to detailed analysis given they

were not identified as material aspects of identified climate‑related risks

and opportunities (see Table 1 on page 66).

Rather than taking the WM Net Zero commodity price paths at face value,

the relative difference between WM Net Zero and Wood Mackenzie’s base

case (WM Base) prices was applied to the BHP Base Case. Scaling the WM

Net Zero prices in this way preserves the key assumptions in terms of the

commodity price impact of a 1.5°C outcome, while allowing for differences

in our assumptions in terms of the underlying cost curves. This approach

assumes that BHP’s cost curves will have a proportional shift similar to what is

seen by Wood Mackenzie between its WM Base and WM Net Zero scenarios.

This sensitivity assumes that other factors in the asset valuations, such as

production and sales volumes, capital and operating expenditures and the

discount rate, remain unchanged from those used in the Group’s FY2026

impairment assessments.

The sensitivity also does not consider the actions BHP could take in respect of

operating and investment plans to mitigate the cash flow and valuation impacts

that may arise in a 1.5°C scenario (though BHP’s capability and flexibility to

take relevant actions are considered in the resilience assessment).

Outcomes of lower-warming scenario analysis

Under the WM Net Zero scenario analysis described above, BHP cash

flows remain positive across all timeframes and enterprise NPV is

materially consistent with the BHP Base Case, supporting the resilience

of our strategy and business model. The potential implications of the

lower‑warming scenario on our identified climate‑related risks and

opportunity are shown in Table 3. These implications also considered

national, regional and technology‑related qualitative assumptions aligned

with WM Net Zero, such as more stringent climate policies and higher

carbon prices in BHP’s operating and customer jurisdictions, and

decreased use of blast‑furnace steelmaking.

Table 3 – Potential changes to exposure for BHP’s identified climate-related risks and opportunity under WM Net Zero

Identified climate-related

risk or opportunity Potential change in timing and significance under our lower-warming scenario (WM Net Zero)

Policy, legal and reputational

Transition risk 1

– Exposure to GHG emissions limiting regulation, carbon pricing and legal risk increases in the short to medium term,

extending into the long term.

– May result in higher compliance and operating costs.

Availability and commercial

viability of operational

decarbonisation technology

Transition risk 2

– Availability of lower GHG emissions technology may improve, but development may not keep pace with required

decarbonisation trajectory.

– Exposure timeframe is unchanged (i.e. remains medium‑ to long‑term) given lead time for technology development.

– May result in elevated implementation risks and elevated short‑ to medium‑term capital costs.

Accelerated decrease in

steelmaking coal demand

Transition risk 3

– Blast‑furnace steelmaking may decrease alongside increase in alternative lower GHG emissions pathways, including

CCUS adoption.

– Exposure timeframe shifts earlier, commencing in the medium term, but the most significant impacts remain long term.

– May affect the relative competitiveness of assets within the portfolio, potentially influencing the timing of individual site

closures over the longer term.

Increased copper demand

Transition opportunity 1

– Scale of opportunity increases, as does commodity substitution risk.

– Increased price enhances economic viability of ore bodies.

– Opportunity exists over all timeframes, but mostly in the medium term.

– BHP's existing position as largest copper producer is favourable, and a lower‑warming scenario could enhance growth

opportunities and potential operational life extensions.

Physical climate‑related risks

Physical risk 1

– Exposure remains widespread due to the nature of physical risks, varying based on geography, vulnerability, and

adaptive capacity.

– Severity of climate hazards would be lower in the long term compared to current expectations.

– Requires continued focus on embedment of climate‑related physical risk resilience considerations into decision‑making

to minimise potential safety, production or cost impacts.

1. Although a >4°C temperature outcome is noted to remain possible beyond 2100 or in unanticipated circumstances.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

1. In some cases, our studies used data from older RCP4.5 and RCP8.5 scenarios. RCP4.5 is treated as broadly equivalent to SSP2‑4.5, as is RCP8.5 to SSP5‑8.5, as scenarios in each

pair share an equivalent level of radiative forcing, and similar temperature pathways well into the 2030s.

Table 4 – Summary of asset-level quantitative physical risk study scopes and approaches

Climate hazard Asset Scope and approach

Flooding or extreme

precipitation (inland)

BMA Levee breach of inland pits, 1% Annual Exceedance Probability (AEP) event

Copper SA Mine, surface operations, airports and roads, Olympic Dam and Carrapateena, 1% AEP event

Escondida Tailings storage facility (TSF), mine and transport infrastructure, 1% AEP event

Pampa Norte TSF, production, water supply, transport and power infrastructure, Spence and Cerro Colorado, 1% AEP event

Potash* Stage 1, Stage 2, tailings management area, rail, 10% and 1% AEP events

WAIO Rail flooding (inland network) (scaled for future climate‑related scenarios) and pit inundation (10% AEP event)

Coastal flooding

BMA* Flood modelling at Hay Point Coal Terminal, incorporating extreme precipitation, storm surge and sea level rise

Escondida Statistical analysis of disruptions to Coloso port operations from sea swells, 1% AEP event

WAIO Rail flooding (coastal network) (scaled for future climate‑related scenarios)

WAIO* Flood modelling at Port Hedland, incorporating extreme precipitation, storm surge and sea level rise

Extreme temperature

BMA De‑rating of critical infrastructure and equipment on days >40°C

Copper SA Equipment breakdowns on days >40°C, based on historical breakdown data, Olympic Dam and Carrapateena

WAIO De‑rating of critical infrastructure and equipment on days >45°C

Sea surface temperature

increase

Escondida Assessment of the impacts of red tides, jellyfish and algae on the desalination system, 1% AEP event

Water stress (chronic

climate change)

BMA Impact on water availability of changing climate conditions (FY2025–FY2040)

WAIO* Review of water availability and groundwater recharge

Extreme fire weather

WAIO Baseline delays scaled using increase in Fire Weather Index indicator

Wind

WAIO* Change in annual average dust events

* These studies did not quantify production impacts as the underlying technical analysis suggested inconsequential incremental impact under the climate scenarios assessed.

In addition to the scenario analysis described above, a commodity price

sensitivity analysis has been performed to provide further analysis of the

risk of potential impairment under WM Net Zero for assets in commodities

more likely to be impacted in an accelerated decarbonisation scenario (i.e.

steelmaking coal). This analysis is distinct from the enterprise‑level scenario

analysis described above as it utilises published WM Net Zero commodity

prices rather than scaling BHP Base Case commodity prices based on the

relative difference between the WM Net Zero and WM Base scenarios.

The sensitivity for the steelmaking coal assets reflects WM Net Zero

commodity prices and consensus foreign exchange assumptions while

assuming that other factors in the asset valuations, such as production and

sales volumes, capital and operating expenditures, carbon pricing and the

discount rate, remain unchanged from those used in the Group’s FY2026

impairment assessments (other than an assumption that mining operations will

cease at the point at which the assets begin to generate negative cash flows).

As such, the sensitivity does not attempt to assess all potential impacts,

including those on asset valuations, that may arise under a 1.5°C scenario

and does not consider all the actions BHP could take in respect of

operating and investment plans to mitigate the cash flow and valuation

impacts that may arise in a 1.5°C scenario.

Under WM Net Zero, reflecting the commodity prices outlined below and

acknowledging that we consider a 1.5°C temperature outcome unlikely based

on current indicators, this analysis would result in an indicative illustrative

impairment of approximately US$2.5 billion for BHP’s steelmaking coal assets.

Price source

CY2040 price

(real, US$/tonne

steelmaking coal)

CY2050 price

(real, US$/tonne

steelmaking coal)

WM Net Zero scenario (July 2025) 171 162

Areas of uncertainty and limitations

BHP’s lower‑warming scenario analysis is based on inputs, assumptions

and models that are subject to inherent uncertainty arising from the dynamic

nature of the global macroeconomic environment, climate system and

model variability. The accuracy of results is influenced by the data used and

assumptions made. Outputs represent plausible, unmitigated conditions for

the specific scope assessed, rather than forecasts or expected outcomes.

The analysis considers relevant commodities and does not fully account

for interdependencies and the interaction of broad macroeconomic drivers.

As such, the results inherently cannot provide a complete or definitive analysis

of our climate‑related risks and opportunities, anticipated effects or resilience.

We continue to monitor global decarbonisation signposts and periodically

update our planning range, associated price outlooks and cost of carbon

assumptions. If in the future such signposts indicated the appropriate

measures were in place for achievement of a 1.5°C outcome, we would

reflect this in our planning range.

Higher-warming climate-related scenario analysis

We have conducted our higher‑warming scenario analysis under

SSP2‑4.5, informed by:

– quantitative asset‑level physical risk studies

– quantitative value chain physical risk studies

– qualitative scenario analysis with consideration of our identified

climate‑related risks and opportunity

The quantitative studies focused on climate‑related physical risk were

undertaken between FY2022 and FY2026. The studies assessed specific

climate hazards reflected in material risk scenarios under our Risk Framework

(see Figure 4) on page 70) and what the potential impacts of these hazards

would look like under SSP2‑4.5 (~2.7°C) and SSP5‑8.5 (~4.4°C).

Studies

were conducted at asset level, reflecting a detailed ‘bottom up’ approach to

consider each asset’s geographic region, asset infrastructure and operational

processes. They included risk and impact transmission channel analysis

and quantification of impacts informed by technical studies such as flood

modelling, water balance modelling and various quantitative assessments.

The outputs included the number of incremental production days or volume

lost due to a changing climate at BHP’s producing assets (excluding NSWEC),

assuming no mitigating actions are implemented. Table 4 provides further

detail on the asset‑level studies applying this methodology.

NSWEC and legacy assets conducted qualitative multi‑hazard assessments,

exploring if and how existing material risks under our Risk Framework could

be exacerbated by climate change, including under SSP5‑8.5 (which in most

instances provided the ‘worst case’ datapoint).

We also conducted analysis in FY2023 and FY2024 to assess how a

changing climate may exacerbate selected existing risks within our value

chain, such as for the delivery and storage of critical production inputs and

the ability to get our products to market. Our assessment used a climate data

mapping exercise to understand which key roads, railways, warehouses,

load and discharge ports and supplier locations are most at risk of exposure

to climate hazards under SSP5‑8.5. We applied natural catastrophe models

to quantify the projected annual downtime for certain flood‑ and wind‑related

risks along our value chain under RCP4.5 and RCP8.5.

Both the asset‑level and value chain studies considered 20‑year future

time horizons centred around CY2035, CY2055 and CY2075. These time

horizons differ from our short‑, medium‑ and long‑term horizons otherwise

applied in this Sustainability Report, reflecting the availability of climate

hazard data and to allow for greater characterisation of how physical risks

may change over the long term.

Outcomes of higher-warming scenario analysis

We disclose outcomes of our physical risk studies and higher‑warming

scenario analysis qualitatively due to the complexity of the nature of

Sustainability Report continued

74 BHP Annual Report 2026

the risks and associated assessments (see also Areas of uncertainty

and limitations on this page).

The results of the asset‑level quantitative studies, including potential

production impact and associated value‑at‑risk, were considered in

relation to the scale of potential risk already managed at our operations

through our Risk Framework. Generally, no material incremental impact

was identified under either SSP2‑4.5 or SSP5‑8.5 up to the end of BHP’s

long‑term time horizon as defined in 7.4.3 Time horizons on page 88.

The exception is the potential incremental impact of inland rail flooding at

WAIO under SSP5‑8.5 (if unmitigated), which the WAIO study indicated

could be material toward the end of the long‑term time horizon. However,

as noted earlier, the emissions levels assumed by SSP5‑8.5 are no longer

widely considered plausible by climate scientists. This flooding risk, as with

other physical risks, continues to be monitored under our Risk Framework.

Given this outcome, we consider existing regular review and management

through our Risk Framework remains sufficient alongside consideration of

climate resilience within relevant business processes.

The results of our value chain climate‑related physical risk studies were

similarly incorporated into routine annual risk evaluations under our Risk

Framework, with no material change to risk levels identified. We expect

to continue to update risk profiles and adaptation plans as the latest

knowledge of climate‑related risks and potential impacts further evolves.

The outcomes of our qualitative SSP2‑4.5 scenario analysis specific to

our identified climate‑related risks and opportunity are shown in Table 5.

Areas of uncertainty and limitations

BHP’s higher‑warming scenario analysis and quantitative studies focused

on physical risk are based on climate‑related scenarios and models that

are subject to inherent uncertainty arising from the dynamic nature of the

climate system, future GHG trajectories and model variability. The accuracy

of results is influenced by the data used and assumptions made within each

assessment. Outputs represent plausible, unmitigated conditions for the

specific scope assessed, rather than forecasts or expected outcomes.

The studies primarily assess direct physical impacts at asset level and

select value chain locations, and do not fully account for interdependencies

and cascading effects nor the interaction of multiple concurrent hazards.

As such, the results inherently cannot provide a complete or definitive

analysis of our climate‑related risks, anticipated effects or resilience.

We will continue to advance our understanding of climate‑related physical

risks, taking into consideration significant changes to our operations or

assets, or new sources of information.

3.3.3 Climate resilience assessment

The results of our lower‑ and higher‑warming climate‑related scenarios

analyses and our capacity to respond indicate the Group’s strategy

and business model remain resilient to climate‑related changes,

developments and uncertainties, considering our identified climate‑related

risks and opportunity. Similarly, the analysis indicates our portfolio and

operations are resilient under the lower‑warming scenario and the

higher‑warming scenario we analysed. Refer to Areas of uncertainty

and limitations subsections within each of our lower‑ (on page 74) and

higher‑warming (on this page) climate‑related scenario analyses for the

challenges inherent in each scenario analysis.

Our strategy formation, capital allocation and planning processes

enable deliberate and timely responses to the climate‑related risks 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 is designed to give us the flexibility to respond to

changing external factors, including climate‑related risks, as they arise

over the short, medium and long term if BHP were to assess any need

to respond, such as by adapting or upgrading operations, acquiring new

assets or redeploying, repurposing, closing or divesting existing assets

over time. This, coupled with our Capital Allocation Framework, enables

us to execute our portfolio positioning decisions for the benefit of our

stakeholders including shareholders.

Our current and planned investments in copper assets, operational

decarbonisation, value chain decarbonisation, and climate‑related

adaptation support our resilience by helping us to manage our identified

climate‑related risks and leverage our climate‑related opportunity.

Our current and planned investments relevant to resilience are outlined

in Table 1. We did not identify any additional investment or required

responses to effects identified through either our lower‑warming or

higher‑warming scenarios analyses.

3.4 Equitable change and transition –

New South Wales Energy Coal

We continue to progress our plan to cease mining at the Mt Arthur

Coal mine in June 2030, after securing the necessary state and federal

government approvals for the continuation of mining to June 2030 in

CY2025. Progressive rehabilitation of the site continues, in parallel

with land use studies to consider options for future use of parts of the

site and infrastructure after mining by BHP ceases, including exploring

an opportunity for a potential development of a pumped hydro energy

storage project. New South Wales Energy Coal is participating in a

pilot project with the state and federal governments on permissible

planning and rezoning pathways for the Mt Arthur Coal site, to enable

a range of future uses after BHP ceases mining. In October 2025,

BHP entered into an arrangement with Malabar Resources to place

a portion of tailings in an existing mine void at Malabar’s Maxwell

Underground site, eliminating the need for a tailings dam lift at

Mt Arthur Coal and instead delivering a below‑ground tailings storage

solution with improved safety and environmental outcomes. As part

of the arrangement, 3,700 hectares of land at Mt Arthur Coal with

partial exploration and mining licences is being transferred to Malabar,

of which approximately 1,165 hectares was transferred in FY2026.

This arrangement does not affect the ongoing exploration of other

land use opportunities at Mt Arthur Coal.

Table 5 – Potential changes to exposure for BHP’s identified climate-related risks and opportunity under SSP2-4.5

Identified climate-related

risk or opportunity Potential change in timing and significance under our higher-warming scenario (SSP2-4.5)

Policy, legal and reputational

Transition risk 1

– Carbon prices and climate regulations rise only gradually, reducing the risk of sudden, onerous policy shocks to BHP’s operations.

– Exposure may vary across geographies, particularly in the long term, due to uneven or fragmented policy approaches

by different administrations and jurisdictions.

– Could result in higher compliance and operating costs (e.g. carbon price) in the long term in some geographies, and lower

costs in others.

Availability and commercial

viability of operational

decarbonisation technology

Transition risk 2

– Incremental improvements in decarbonisation technologies limit options available for faster decarbonisation and may increase cost.

– Exposure timeframe is unchanged (i.e. remains medium‑ to long‑term) given lead time for technology development.

– Cost or availability of decarbonisation technologies varies, influencing BHP’s GHG emissions reduction pathways.

There may be greater reliance on offsetting if technology does not advance as expected.

Accelerated decrease in

steelmaking coal demand

Transition risk 3

– Steelmaking coal demand largely sustained in the short and medium term due to slower progress on alternative lower

GHG emissions technologies for steelmaking.

– Demand potentially increasing in the long term, reducing risk exposure in this time horizon.

– Requires continued monitoring.

Increased copper demand

Transition opportunity 1

– Substantial electrification keeps short‑ and medium‑term copper demand robust.

– Potential for a slight decrease in the long term due to lower energy transition‑linked copper demand, offset to an extent

by traditional sources of demand.

– Requires continued monitoring.

Physical climate‑related risks

Physical risk 1

– Exposure remains widespread due to the nature of physical risks, varying based on geography, vulnerability, and adaptive capacity.

– Severity of climate hazards would be comparable in the short and medium term, and higher in the long term, compared

to current expectations.

– Requires continued focus on embedment of climate‑related physical risk resilience considerations into decision‑making

to minimise potential safety, production or cost impacts.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

4 Risk management

4.1 Approach to risk management

This section provides information about processes used

by BHP to identify, assess, prioritise, treat, monitor and

review risks and opportunities, including those that are

climate‑related.

This section should be read in conjunction with section 3 Strategy

for managing climate-related risks and opportunities on page 64 which

contains information regarding the process we undertook to identify and

assess the climate‑related risks and opportunity that we determined

could reasonably be expected to affect BHP’s prospects (i.e. those we

refer to in this Sustainability Report as our identified climate‑related

risks and opportunity) and BHP’s associated management responses.

Refer also to Risk factors in OFR 6 on page 22, which outline BHP’s

broader risk environment.

At BHP, we take an enterprise approach to risk management and operate

under one Risk Framework for all risks and opportunities (see How we

manage risk in OFR 6 on page 21), including climate‑related transition

and physical risks and opportunities that may impact delivery of our

strategy, our operations or our value chain. As part of this approach,

we consider existing and emerging regulatory requirements related to

climate change. We have mandatory minimum performance requirements

for risk management (including climate‑related risks and opportunities)

and our Climate Change Global Standard, which we apply across our

operated assets and functions, and to decision‑making processes for

sales, marketing and procurement. BHP does not manage non‑operated

joint ventures or third parties, but remains exposed to risks and

opportunities from the activities of those parties. BHP seeks to oversee

and manage the financial, legal and reputational risks and opportunities

to BHP related to our investments in non‑operated joint ventures and

relationships with third parties.

Our risk process enables us to assess the materiality of all risks and

opportunities identified through our Risk Framework (including climate‑related

risks and opportunities) consistently by considering the likelihood (by reference

to probability and timeframes) and level of potential quantitative and qualitative

impacts (including to health and safety, legal, sustainability, reputation

and financial). This helps us to understand the significance of the risk or

opportunity in the context of BHP’s overall material risk profile and prioritise

controls and decision‑making for investment in risk treatment. Climate change

and climate‑related risks have the potential to influence or exacerbate strategic

risks including those associated with portfolio strategy and operational risks,

such as those associated with key infrastructure failure and operational events

(see Risk factors in OFR 6 on page 22). They are required to be considered

and, where applicable, integrated in accordance with our Risk Framework into

our material risk profile.

Our Risk Framework requires us to implement controls to prevent and

mitigate material risks and enable and enhance material opportunities.

This consistent approach supports climate‑related risks and opportunities

to be considered across our business and integrated through our material

risk profile, and focuses action on the risks and opportunities that are

material. We conduct annual reviews of our climate‑related risk profile

to identify, assess and manage new or evolving climate‑related risks

and opportunities. Our Risk Framework requires individual risks and

opportunities that have been assessed for risk management to be reviewed

at least annually and when events or changes occur that may increase

or decrease the risk exposure or opportunity while critical controls are

reviewed at least annually to evaluate performance.

4.1.1 Use of scenario analysis in climate-related risk

and opportunity identification

Scenario analysis including a lower‑ and a higher‑warming scenario

as described in section 3 Strategy for managing climate-related

risks and opportunities on page 64, was used to review the identified

climate‑related risks and opportunity described in Table 1 on page 66,

which reflect the BHP Base Case, to test for any new or changed areas

of risk or opportunity. We did not identify any new or changed areas of

risk or opportunity. We used the lower‑warming scenario to review our

identification and assessment of transition climate‑related risks and

opportunities, while our higher‑warming scenario was used to review

physical climate‑related risk profiles across our operations and some

areas of our value chain. An overview of how the scenario analyses were

considered against our identified climate‑related risks and opportunity is

provided in 3.3 Scenario analysis and resilience on page 72.

5 Metrics and targets

This section provides information about BHP’s performance in

relation to its climate‑related risks and opportunities, including

key metrics used to measure and manage climate‑related risks

and opportunities and progress towards climate‑related targets

and goals BHP has set.

This section should be read in conjunction with section 2 Performance

against operational and value chain targets and goals on page 58 and

section 3 Strategy for managing climate-related risks and opportunities

on page 64 in which some climate‑related metrics and performance

information regarding our targets and goals, along with our CTAP 2024

progress, are disclosed. While not part of this Sustainability Report,

additional prior year information is provided in the BHP ESG Standards

and Databook 2026 available at bhp.com/ESGSD2026.

Metrics we consider when assessing and managing our identified

climate‑related risks and opportunity:

Cross-industry metrics

(AASB S2) Description

Operational GHG

emissions (Scope 1 and

Scope 2 emissions from

our operated assets)

(location‑based)

Refer to Additional information: Glossary

on page 242 for the definition of Scope

1 emissions and Scope 2 emissions and

7.2.2 Organisational reporting boundary and

GHG emissions methodologies on page 87

for our organisational boundary.

Refer to the operational GHG emissions

inventory in Table 6 for our Scope 1 and

Scope 2 (location‑based) emissions.

Value chain

GHG emissions

(Scope 3 emissions)

Refer to Additional information: Glossary

on page 242 for the definition of Scope 3

emissions and 7.2.2 Organisational reporting

boundary and GHG emissions methodologies

on page 87 for our organisational boundary.

Refer to Scope 3 emissions inventory in

Table 6 for our reported Scope 3 emissions.

Amount and percentage

of assets/business

activities vulnerable

to climate‑related

transition risks

Refer to the metrics under the ‘Assets or

business activities that are most vulnerable

to this risk and associated metric’ section for

Transition risk 1, 2 and 3 in Table 1.

Amount and

percentage of business

activities vulnerable

to climate‑related

physical risks

Refer to the metrics under the ‘Assets or

business activities that are most vulnerable

to this risk and associated metric’ section for

Physical risk 1 in Table 1.

The amount and

percentage of assets

or business activities

aligned with climate‑

related opportunities

Refer to the metrics under the ‘Assets or

business activities that are most aligned to this

opportunity and associated metric’ section for

Transition opportunity 1 in Table 1.

The amount of capital

expenditure, financing

or investment deployed

towards climate‑related

risks and opportunities

Refer to the capital metrics under the ‘Current

financial effects (30 June 2026)’ section of

Table 1. Where a capital metric has not been

referenced for a specific climate‑related risk

or opportunity, the associated information has

not been assessed as material.

Internal carbon price Refer to section 3.1.1 Internal carbon prices

on page 64 for the definition and the internal

carbon prices we use.

Percentage of

executive management

remuneration

linked to climate

related considerations

Refer to Remuneration Report: Overview

of BHP’s remuneration framework, on

page 115 for the percentage of CEO and other

Executive Key Management Personnel (KMP)

total target remuneration.

BHP-developed metrics Description

Climate‑related

target metrics

Metrics used to report against BHP’s

climate‑related targets and goals. See Tables

6a to 6g in 5.2 Climate-related targets on

pages 79 to 84 for individual definition of each

metric used and the baseline year/reference

year and performance years data.

These BHP‑developed metrics have not been

validated by a third party.

Sustainability Report continued

76 BHP Annual Report 2026

We report on other sustainability‑related metrics (e.g. water use, our

operations’ biodiversity‑related intersections) in the BHP ESG Standards

and Databook 2026 available at bhp.com/ESGSD2026 and recognise

their interconnection with climate change. However, we do not currently

use these as our metrics for the assessment and management of

climate‑related risks.

BHP presents our GHG emissions inventory on both an unadjusted

inventory basis (Table 6) in 5.2 Climate-related targets on page 77) and an

adjusted inventory basis for the purposes of tracking performance against

its climate‑related targets and goals (Tables 6a to 6g in 5.2 Climate-related

targets on page 77).

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.

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. Where applied, such adjustments are

intended to facilitate more meaningful comparability of performance across

multiple years. We apply adjustments whenever we present GHG emissions

data for the purpose of assessment of progress against our climate‑related

targets and goals to enable this ‘like for like’ comparison.

5.1 Climate-related metrics

5.1.1 Scopes 1, 2 and 3 GHG emissions performance

Performance for our operational and value chain GHG emissions in

FY2026 on an unadjusted basis (Table 6) is as follows:

– Operational GHG emissions (Scopes 1 and 2 emissions from our

operated assets) for FY2026 were 9.4 MtCO

‑e, representing an

8 per cent increase compared to FY2025. The increase was driven

by a combination of activity‑driven changes and changes to emissions

calculation methodologies. At BMA, higher material movement aligned

with production and more methane‑intensive mining areas led to

increased emissions intensity per unit of production. Operational GHG

emissions at NSWEC increased due to higher production and revised

methane emissions modelling. Performance at BMA and NSWEC was

offset by stable performance at WAIO and Escondida combined with

Western Australia Nickel being in temporary suspension. The transition

to using a national residual mix factor (RMF) at our Australian

assets also drove an adjustment that increased our operational

GHG emissions. For more information refer to section 7.6.3 Scope 2

emissions on page 89.

– Value chain emissions (Scope 3 emissions) for FY2026 were

429 MtCO

‑e, representing a 1 per cent increase compared to FY2025.

The downstream processing of iron ore and steelmaking coal products

represented the largest share of our reported Scope 3 emissions

inventory, accounting for 85 per cent. The combustion of energy coal

contributed a further 10 per cent, GHG emissions associated with our

direct suppliers made up 2 per cent, while upstream and downstream

shipping accounted for 1 per cent. Changes to improve the accuracy of

our Scope 3 Category 1 emission inventory reporting, in combination

with organic change in our spend, drove a reduction of Scope 3

Category 1 emissions for FY2026 by 11 per cent.

Table 6 – Scope 1, Scope 2 and Scope 3 emissions

Unadjusted GHG emissions inventory – operational control boundary

(MtCO

‑e)

FY2026 FY2025

Scope 1 emissions 7.6 7.3

Scope 2 emissions (market‑based) 1.7 1.3

Total operational GHG emissions 9.4 8.7

Scope 1 emissions 7.6 7.3

– Consolidated accounting group

6.2 6.1

– Other investees

1.4 1.2

Scope 2 emissions (location‑based) 3.3 3.1

– Consolidated accounting group

3.0 2.8

– Other investees

0.3 0.3

Scope 3 emissions

Category 1

9.7 10.9

Category 3 2.1 2.6

Category 4 4.6 4.6

Category 6 0.1 0.1

Category 7 0.3 0.3

Category 9 1.8 2.0

Category 10

367. 2 363.8

Category 11

42.5 38.7

Category 15 0.7 0.7

Total Scope 3 GHG emissions

429.0 423.7

5.2 Climate-related targets

5.2.1 Overview

BHP’s climate‑related targets and goals outlined in Tables 6a to 6g apply

definitions of ‘target’ and ‘goal’ as outlined in Additional information:

Glossary on page 238 but are disclosed as ‘climate‑related targets’ in this

Sustainability Report to align with the relevant information required for

AASB S2 disclosures. AASB S2 does not define a climate‑related target

and this approach is not intended to alter the important distinction BHP

draws between our targets and goals (as we define them). Refer to section

2 Performance against our operational and value chain GHG emissions

targets and goals on page 58 for additional information regarding

performance against our operational and value chain GHG emission

targets and goals.

Our operational GHG emission long‑term net zero goal was set in

FY2017. Our operational GHG emissions medium‑term target, and our

value chain GHG emissions shipping medium‑term goal and steelmaking

medium‑term goal were developed in FY2020. Our value chain GHG

emissions long‑term net zero goal and shipping and direct suppliers

long‑term net zero targets were developed in FY2021. Given the global

nature of our business, customers and value chain, the development of

our climate‑related targets and goals considered the goals of the Paris

Agreement and the commitments and policy settings of relevant key

jurisdictions at the time.

1. Data has been rounded to the nearest 0.1 MtCO

‑e and the sum of totals may differ due to rounding.

2. In this table, 50 per cent of BMA’s Scope 1 or Scope 2 emissions (as applicable) is included in the emissions of the consolidated accounting group (in line with BHP’s interest in BMA), and

50 per cent is included in the emissions of other investees. BMA’s GHG emissions are otherwise included at 100 per cent within BHP’s GHG emissions’ inventories in this table and the

rest of this Sustainability Report. For more information refer to 7.2.3 Treatment of BMA on page 87.

3. FY2025 Category 1 emissions have been restated from the previously reported unadjusted inventory to correct an unintended error arising from the inclusion of GHG emissions

associated with Samarco, which is not under BHP’s operational control. This correction reduced FY2025 Category 1 emissions by 1.1 MtCO

‑e (unadjusted).

4. Organisational boundary for FY2025 Category 10 and Category 11 has changed from previously reported inventory. Refer to section 7.6.4 Scope 3 emissions on page 90 for information

about our changed organisational boundary for FY2026 and its impact on our reported Scope 3 emissions inventory.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

5.2.2 Operational GHG emissions medium-term target

and long-term net zero goal

Our FY2030 operational GHG emissions medium‑term target percentage

reduction rate was established in FY2020 by applying the same rate

of reduction to our operational GHG emissions as the rate at which

global GHG emissions would have to reduce in order to meet the Paris

Agreement goal to hold global average temperature increase to well below

2°C above pre‑industrial levels (based on the SBTi absolute contraction

approach at that time, including a carbon budget).

Our operational GHG emissions long‑term net zero goal was influenced

by factors including the Paris Agreement (including its implicit objective

of global net zero in the second half of the century), the Nationally

Determined Contributions (NDCs) at the time of the countries in

which we have significant operations (Australia, Chile and Canada),

and the expectations of our shareholders and key stakeholders.

5.2.3 Value chain GHG emissions medium-term goals

and long-term net zero targets and goal

The aims of the Paris Agreement were an influencing factor when our

Scope 3 emissions goals and targets were first set, together with the broad

scientific, policy and investor alignment at that time around the need for

global net zero by 2050 to support the Paris Agreement. We also considered

the NDCs of the countries in which we had significant operations at the time

and our key customer countries and industry and customer decarbonisation

pathways. Our shipping medium‑term goal is generally consistent with the

CY2030 emissions intensity goal of the International Maritime Organization

(IMO) for the international shipping sector. 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.

5.2.4 Country commitments

The current commitments in the countries in which we have significant

operations include:

– Australia – has a Long‑Term Emissions Reduction Plan and legislated

national targets to reduce Australia’s net GHG emissions to 43 per cent

below its CY2005 levels by CY2030, as well as a CY2035 target to

reduce Australia’s net GHG emissions to 62–70 per cent below CY2005

levels, and to achieve net zero GHG emissions by CY2050.

– Chile – has committed to a GHG emissions maximum (peak) by

2025, absolute GHG emissions levels of 95 MtCO

‑e by 2030, a GHG

emission budget not exceeding 480 MtCO

e between 2031 and 2035,

and achieving carbon neutrality by CY2050.

– Canada – has committed to reducing GHG emissions by 40–45 per cent

below its CY2005 levels by CY2030, 45–50 per cent below CY2005

levels by CY2035 and achieving net zero GHG emissions by CY2050.

5.2.5 Review of our GHG emissions goals and targets

Targets and goals are monitored on an annual basis (or more frequently

if required), with progress reviewed by management and the Board.

An internal GHG emissions target is set for the relevant financial year,

and monitored through our annual reporting processes. 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.

To determine whether we should change our climate‑related targets and

goals in the future, we monitor key factors, that may include:

– advances in knowledge and insight from the scientific community

– government climate policies, and the expectations on the pace of

energy transition

– international developments, such as those arising from the Conference

of the Parties to the United Nations Framework Convention on Climate

Change (COP)

– technology readiness, commercial availability and commercial viability

– the expectations and decarbonisation progress of our mining peers,

suppliers and customers

– the expectations of our shareholders and other stakeholders

and partners

For the definitions of the terms used to express our GHG emissions targets

and goals, including ‘target’, ‘goal’, ‘net zero’, ‘baseline year’, ‘reference year’

and ‘carbon neutral’ refer to Additional information: Glossary on pages

238 to 243

Sustainability Report continued

78 BHP Annual Report 2026

Table 6a: Medium-term operational GHG emissions target

Reduce operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) by at least 30 per cent by FY2030 from a

FY2020 baseline

Performance FY2026 performance: 9.4 MtCO

‑e, 33 per cent below FY2020 baseline.

FY2020: 14.1 MtCO

‑e | FY2021: 14.5 MtCO

‑e | FY2022: 10.9 MtCO

‑e | FY2023: 10.2 MtCO

‑e | FY2024: 10.0 MtCO

‑e |

FY2025: 9.3 MtCO

‑e

Metric Scope 1 and Scope 2 (market‑based) operational GHG emissions.

Scope 1 emissions are calculated as defined in 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89.

Scope 2 emissions are calculated using the market‑based method as defined in section 7.6 Methodology for calculating Scopes 1, 2

and 3 GHG emissions on page 89.

GHGs: CO

, CH

, N

O, HFC, PFC, SF

Boundary: Operational control as defined in section 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89.

Objective Support climate change mitigation

Period FY2020 to FY2030

Base period FY2020 baseline year

Milestones/interim

targets

Progress PoC trials for battery‑electric equipment in collaboration with original equipment manufacturers (FY2026). Complete the

Escondida Boiler Diesel Displacement project and begin construction of its counterpart project at Spence (FY2026).

Absolute/intensity Absolute

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.2 Operational GHG emissions medium-term target and long-term net zero goal on page 78.

Third‑party validation The target and the methodology for setting the target have not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics Six‑month and annual (financial year) Scopes 1 and 2 (market‑based) emissions and percentage reduction (annual) relative to

FY2020 baseline.

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.

Our medium‑term target is also measured on a cumulative GHG emission basis against an overall carbon budget of 132 MtCO

‑e

(FY2020 to FY2030). 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 helps

enable consideration of whether we anticipate potential use of voluntary carbon credits to close any performance gap by FY2030 (which

we do not currently anticipate).

Revisions (adjustments) Baseline year 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) and our acquisition of OZ Minerals (completed on 2 May 2023), excluding the now

divested OZ Minerals Brazil assets.

Adjustments have also been made for methodology changes (use of IPCC Assessment Report 5 (AR5) Global Warming Potential

values 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).

Application of the residual mix factor (RMF) in calculating Scope 2 market‑based emissions for the Australian assets: From FY2024

onward, the RMF used aligns with those published by the Australian Clean Energy Regulator. For FY2020–FY2023, an estimated

national RMF has been derived using publicly available data.

Gross/net Gross reduction. We plan to achieve our medium‑term 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. Based on

our current operational GHG emissions forecast for FY2030 and methodologies for GHG emissions accounting (see 7.6 Methodology

for calculating Scopes 1, 2 and 3 GHG emissions on page 89), we are on track to achieve our medium‑term target without the use of

voluntary carbon credits.

BHP will not use regulatory carbon credits when determining whether we have achieved our FY2030 target.

This includes the Australian Carbon Credit Units (ACCUs) and SMCs surrendered for Australian Safeguard Mechanism compliance.

For further details on our approach to offsetting refer to 5.2.7 Carbon credits on page 85.

Derived using sectoral

decarbonisation

approach

No, our target was derived using the absolute contraction method. Our operational GHG emissions may fluctuate (with some

increases and/or non‑linear decreases) during the period before the target date.

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 ACCUs not used for regulatory compliance).

2. For more information refer to our assumptions and further details in 2.1.2 Pathway to our medium-term target on page 58.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Table 6b: Long-term operational GHG emissions net zero goal

Achieve net zero operational GHG emissions (Scopes 1 and 2 emissions from our operated assets) by CY2050.

Performance FY2026 performance: 9.4 MtCO

‑e, 33 per cent below FY2020 baseline.

FY2020: 14.1 MtCO

‑e | FY2021: 14.5 MtCO

‑e | FY2022: 10.9 MtCO

‑e | FY2023: 10.2 MtCO

‑e | FY2024: 10.0 MtCO

‑e |

FY2025: 9.3 MtCO

‑e

Metric Scope 1 and Scope 2 (market‑based) operational GHG emissions.

Scope 1 emissions are calculated as defined in 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89.

Scope 2 emissions are calculated using the market‑based method as defined in 7.6 Methodology for calculating Scopes 1, 2 and 3

GHG emissions on page 89.

GHGs: CO

, CH

, N

O, HFC, PFC, SF

Boundary: Operational control as defined in 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89.

Objective Support climate change mitigation

Period FY2020 to CY2050

Base period FY2020 reference year

Milestones/interim

targets

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 a FY2020 baseline.

Absolute/intensity Absolute

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.2 Operational GHG emissions medium-term target and long-term net zero goal on page 78.

Third‑party validation The goal and the methodology for setting the goal have not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics Six month and annual (financial year) Scope 1 and 2 emissions and percentage reduction (annual) relative to FY2020 baseline

(refer also to Table 6a).

Revisions (adjustments) Refer to Table 6a for the basis of our adjustments, except replace reference to ‘baseline year’ with ‘reference year’.

Gross/net Net reduction. We intend to structurally reduce our GHG emissions to the extent technologically and commercially viable by CY2050

and use carbon credits to close the gap to our long‑term goal. The potential remaining emissions in CY2050, currently estimated to be

3 to 5 MtCO

‑e, would need to be offset with carbon credits to achieve our net zero goal. While we are trialling new technologies today,

structural abatement for our CY2050 net zero operational GHG emissions goal remains uncertain as it is dependent on the technology

readiness, commercial availability and commercial viability of the low to zero GHG emissions technology needed (refer to Transition risk

2 in Table 1). As technology evolves, we will continue to assess options, explore partnerships and refine our potential pathway(s) and

associated emissions figure estimates to CY2050.

For more information on our approach to offsetting refer to 5.2.7 Carbon credits on page 85.

Derived using sectoral

decarbonisation approach

No. Our operational GHG emissions may fluctuate (with some increases and/or non‑linear decreases) during the period before the

goal date.

Table 6c: Value chain GHG emissions – steelmaking medium-term goal for CY2030

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 FY2026 performance: US$186 million, cumulative spend since FY2020.

FY2022: US$75 million | FY2023: US$114 million | FY2024: US$140 million | FY2025: US$171 million

Metric 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 contributing to 30 per cent lower GHG emissions intensity relative to

conventional blast furnace steelmaking.

Objective Support climate change mitigation

Period FY2020 to CY2030

Base period CY2020 reference year

Milestones/interim

targets

Continue development of the direct reduced iron electric smelting furnace pathway to plan.

Absolute/intensity Not applicable

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.3 Value chain GHG emissions medium-term goals and long-term net zero targets and

goal on page 78.

Third‑party validation The goal and the methodology for setting the goal have not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics 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.

Revisions (adjustments) Not applicable

Gross/net Not applicable

Derived using sectoral

decarbonisation approach

Not applicable

Sustainability Report continued

80 BHP Annual Report 2026

Table 6d: Value chain GHG 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 FY2026 performance: 3.1 gCO

‑e/dwt/nm, 46 per cent below the baseline year of CY2008

CY2008: 5.8 gCO

‑e/dwt/nm | FY2023: 3.5 gCO

‑e/dwt/nm | FY2024: 3.4 gCO

‑e/dwt/nm | FY2025 performance: 3.3 gCO

‑e/dwt/nm

Metric Average gCO

‑e per deadweight tonne per nautical mile (gCO

‑e/dwt/nm), weighted based on IMO defined vessel size ranges utilised by

BHP during the time period, using a well‑to‑wake CO

‑e emission factor from EU Regulation 2023/1805.

GHGs: CO

, CH

, N

Boundary: Scope 3 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.

Exclusions:

The shipping medium‑term goal excludes the following:

– 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

Objective Support climate change mitigation

Period CY2008 to CY2030

Base period CY2008 baseline year

Milestones/interim

targets

By CY2030, 10 per cent of our total products shipped to our customers using our time charter vessels will be using zero GHG emission

fuels. This commitment is subject to the availability of technology, supply, safety standards and the establishment of reasonable thresholds

for price premiums.

Absolute/intensity Intensity

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.3 Value chain GHG emissions medium-term goals and long-term net zero targets

and goal on page 78.

Third‑party validation The goal and the methodology for setting the goal have not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics Annual (financial year) gCO

‑e/dwt/nm and percentage reduction (half‑year and full‑year) relative to CY2008 baseline year.

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.

Revisions (adjustments) 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.

Gross/net Gross reduction. Carbon credit use not planned but will be periodically assessed.

Derived using sectoral

decarbonisation approach

No. The 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 goal date.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Table 6e: Value chain GHG emissions – 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.

Performance FY2026 performance: 383.8 MtCO

‑e

FY2020: 352.6 MtCO

‑e | FY2021: 356.7 MtCO

‑e | FY2022: 364.4 MtCO

‑e | FY2023: 371.6 MtCO

‑e |

FY2024: 376.8 MtCO

‑e | FY2025 performance: 376.7 MtCO

‑e

Metric The metric used to report against this goal is a proxy as data that reflects the boundaries specified for this goal is not currently

available. The proxy metric is an estimate calculated as follows:

– upstream categories and Category 9: in accordance with the calculation methodology specified in 7.6 Methodology for calculating

Scopes 1, 2 and 3 GHG emissions on page 89 reflecting 100 per cent (i.e. operational control) of Scope 3 emissions.

– downstream categories (excluding Category 9): in accordance with the calculation methodology specified in 7.6 Methodology for

calculating Scopes 1, 2 and 3 GHG emissions on page 89, with Category 10, Category 11 and Category 15 reflecting Scope 3

emissions associated with BHP equity share.

GHGs: refer to individual Scope 3 Categories as defined in 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89.

Boundary:

– Scope 3 emissions for downstream Scope 3 categories are based on BHP equity share.

– Category 4 and Category 9 boundaries relating to maritime shipping are defined by the boundary of our Shipping long‑term net

zero target in Table 6f.

– Remainder of upstream Scope 3 categories are defined by the boundary of our Direct suppliers long‑term net zero target in Table 6g.

Exclusions:

Defined per exclusions for our Shipping long‑term net zero target in Table 6f. and Direct suppliers long‑term net zero target in Table 6g.

Objective Support climate change mitigation

Period FY2020 to CY2050

Base period FY2020 reference year

Milestones/interim

targets

Not applicable

Absolute/intensity Absolute

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.3 Value chain GHG emissions medium-term goals and long-term net zero targets

and goal on page 78.

Third‑party validation The goal and the methodology for setting the goal have not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics Annual (financial year) Scope 3 emissions and percentage reduction relative to FY2020 reference year.

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.

Revisions (adjustments) 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) excluding the now divested OZ Minerals Brazil assets. Category 1 GHG emissions in reference

year and performance data have been adjusted using emission factors from CEDA (historically we used emissions factors from Quantis).

Categories 4, 6 and 7 were not adjusted due to the immateriality of the adjustment. Category 3 GHG emissions in reference year and

performance data have been adjusted to include emissions from the production of energy by Tamakaya Energía Spa (Kelar Power Plant)

being reclassified from Category 15 Investments. The remaining categories have not been adjusted due to their immateriality to our

long‑term net zero goal. FY2025 Category 1 emissions have been restated from the previously reported adjusted inventory to correct

an unintended error arising from the inclusion of GHG emissions associated with Samarco, which is not under BHP’s operational control.

This correction reduced FY2025 Category 1 emissions by 0.5 MtCO

‑e (adjusted).

Gross/net Net reduction.

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. We do not plan to acquit carbon credits ourselves to offset value chain emissions and have limited visibility and

high uncertainty with respect to our suppliers’ and customers’ offsetting plans for CY2050 (including uncertainty with respect to who our

suppliers and customers will be at that time). Accordingly, it is not currently possible to quantify the potential remaining emissions that

would need to be offset by our customers, suppliers and other third parties to achieve our net zero goal.

For further details on our approach to offsetting refer to 5.2.7 Carbon credits on page 85.

Derived using sectoral

decarbonisation approach

No. Set as a point in time, i.e. with the specific date of ‘by CY2050’ to reach the 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 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 goal date.

Sustainability Report continued

82 BHP Annual Report 2026

Table 6f: Value chain GHG emissions – shipping long-term net zero target

Achieve 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.

Performance FY2026 performance: 5.7 MtCO

‑e

FY2020: 6.6 MtCO

‑e | FY2021: 7.2 MtCO

‑e | FY2022: 7.1 MtCO

‑e | FY2023: 6.4 MtCO

‑e | FY2024: 6.2 MtCO

‑e |

FY2025: 5.8 MtCO

‑e

Metric The metric used to report against this target is a proxy as data that reflects the boundaries specified for this target is not currently

available. The proxy metric is an estimate calculated as follows:

– Scope 3 emissions from Categories 4 and 9 related to maritime transportation: In accordance with the calculation methodology

specified in 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions on page 89 reflecting 100 per cent (i.e. operational

control) of Scope 3 emissions

GHGs: CO

, CH

, N

Boundary: Scope 3 GHG emissions (Categories 4 and 9, shipping of BHP products only) 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.

Exclusions:

This target excludes the following:

– 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

Objective Support climate change mitigation

Period FY2020 to CY2050

Base period FY2020 reference year

Milestones/interim

targets

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.

Absolute/intensity Absolute

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.3 Value chain GHG emissions medium-term goals and long-term net zero targets

and goal on page 78.

Third‑party validation The target and the methodology for setting the target has not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics Annual (financial year) Scope 3 emissions, Categories 4 and 9, shipping of BHP products only (refer to the ‘Metric’ section in this table

for the current proxy metric used) based on vessel‑ and voyage‑specific GHG emissions calculated using maritime transport emission

factors from EU Regulation 2023/1805.

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.

Revisions (adjustments) 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) excluding the now divested OZ Minerals Brazil assets.

Gross/net Net reduction. Refer Table 6e Value chain long-term net zero goal for explanation of the role we anticipate offsetting potentially will play

in meeting this long‑term net zero target and why it is not currently possible to quantify the potential remaining GHG emissions that would

need to be offset by the use of carbon credits in our value chain to achieve this target.

Derived using sectoral

decarbonisation approach

No. Set as a point in time, i.e. with the specific date of ‘by CY2050’ to reach the target of net zero, while reflecting the challenges and

uncertainty and our inability (as BHP alone) to ensure Scope 3 emission reductions. The target 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 date.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Table 6g: Value chain GHG emissions – direct suppliers long-term net zero target

Achieve 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.

Performance FY2026 performance: 12.2 MtCO

‑e

FY2020: 12.2 MtCO

‑e | FY2021: 12.3 MtCO

‑e | FY2022: 12.1 MtCO

‑e | FY2023: 13.7 MtCO

‑e | FY2024: 14.5 MtCO

‑e |

FY2025: 13.4 MtCO

‑e

Metric The metric used to report against this target is a proxy as data that reflects the boundaries specified for this target is not currently

available. The proxy metric is an estimate calculated as follows:

– Scope 3 emissions from Category 1 purchased goods and services (including capital goods), Category 3 fuel‑ and energy‑related

activities, Category 6 business travel and Category 7 employee commuting defined in 7.6 Methodology for calculating Scopes 1, 2

and 3 GHG emissions on page 89.

GHGs: Refer to Category 1 purchased goods and services (including capital goods), Category 3 fuel‑ and energy‑related activities,

Category 6 business travel and Category 7 employee commuting defined in 7.6 Methodology for calculating Scopes 1, 2 and 3 GHG

emissions on page 89.

Boundary: Scopes 1 and 2 emissions of our direct suppliers included in BHP’s reported Scope 3 emissions reporting categories

of Category 1 purchased goods and services (including capital goods), Category 3 fuel‑ and energy‑related activities, Category 6

business travel and Category 7 employee commuting.

Exclusions:

This target excludes 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.

Objective Support climate change mitigation

Period FY2020 to CY2050

Base period FY2020 reference year

Milestones/interim

targets

Not applicable

Absolute/intensity Absolute

Latest international

agreement on climate

change

Refer to 5.2.1 Overview on page 77 and 5.2.3 Value chain GHG emissions medium-term goals and long-term net zero targets and

goal on page 78.

Third‑party validation The target and the methodology for setting the target have not been validated by a third party.

Review process Refer to section 1 Introduction on page 55 and section 6 Governance on page 85.

Monitoring metrics As a proxy for measurement of the Scopes 1 and 2 emissions of our direct suppliers, progress is currently measured using annual

(financial year) Categories 1, 3, 6 and 7 GHG emissions data using a mix of spend‑based and activity‑based methodology.

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.

Revisions (adjustments) 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) excluding the now divested OZ Minerals Brazil assets. Categories 6 and 7 were not adjusted due to their immateriality

to our long‑term net zero target. Category 1 in reference year and performance data have been adjusted using emission factors

from CEDA (historically we used emissions factors from Quantis). Categories 4, 6 and 7 were not adjusted due to the immateriality

of the adjustment. Category 3 GHG emissions in reference year and performance data have been adjusted to include emissions from

the production of energy by Tamakaya Energía Spa (Kelar Power Plant) being reclassified from Category 15 Investments. FY2025

Category 1 emissions have been restated from the previously reported adjusted inventory to correct an unintended error arising from

the inclusion of GHG emissions associated with Samarco, which is not under BHP’s operational control. This correction reduced

FY2025 Category 1 emissions by 0.5 MtCO

‑e (adjusted).

Gross/net Net reduction. Refer to Table 6e Value chain long-term net zero goal for explanation of the role we anticipate offsetting potentially will play

in meeting this long‑term net zero target and why it is not currently possible to quantify the potential remaining GHG emissions that would

need to be offset by the use of carbon credits in our value chain to achieve this target.

Derived using sectoral

decarbonisation

approach

No. Set as a point in time, i.e. with the specific date of ‘by CY2050’ to reach the target of net zero, while reflecting the challenges and

uncertainty and our inability (as BHP alone) to ensure Scope 3 emission reductions. The target 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 date.

5.2.6 Australian Safeguard Mechanism

The Australian Safeguard Mechanism (SGM) is the Australian

Government’s policy for reducing GHG emissions at Australia’s largest

industrial facilities to support Australia’s GHG emissions reduction targets

of 43 per cent below 2005 levels by 2030 and net zero by 2050. The SGM

is reviewed periodically by the Australian Government, with the next review

due in 2026/27. For the purpose of AASB S2 disclosures, the SGM is

considered a target BHP is ‘required to meet by law or regulation’, however

the SGM is not a target as set, defined or applied by BHP.

The SGM establishes legislated limits (baselines) for facilities that emit

more than 100,000 tCO

‑e of covered emissions per year (Scope 1

emissions of carbon dioxide (CO

), methane (CH

), nitrous oxide (N

and sulphur hexafluoride (SF

), as well as some hydrofluorocarbons and

perfluorocarbons). For BHP, the SGM covers 15 Australian operations

(described as facilities for SGM purposes), four within BMA, three within

Western Australia Nickel, six within Western Australia Iron Ore, one within

Copper South Australia, and one within New South Wales Energy Coal.

The SGM requires covered facilities to maintain net covered emissions

(and/or net emissions intensity) at or below the applicable baseline,

including through the use of ACCUs or Safeguard Mechanism Credit units

(SMCs), and is a form of emissions limiting regulation. Eleven of the 15

SGM‑covered Australian operations exceeded their allocated baseline

in FY2025 (the most recent available reporting year for SGM purposes),

requiring the surrender of ~848,000 carbon credits, including SMCs.

This compares with 13 operations exceeding their allocated baseline in

FY2024, requiring the surrender of ~724,000 carbon credits. The default

decline rate for baselines under the SGM is set at 4.9 per cent per annum

from FY2023–FY2024 through to FY2029–FY2030. The SGM is an

Australian Government regulatory framework administered by the Clean

Energy Regulator (CER). Accordingly, BHP has not sought validation of its

associated methodology or baseline by a third party.

Sustainability Report continued

84 BHP Annual Report 2026

Risks, management actions and financial effects associated with

regulation, including the SGM, are discussed under Transition risk 1

in Table 1. BHP monitors performance against SGM compliance on

an annual basis with progress, including carbon credit plans, demand

forecasts, and relevant Australian Government policy settings, reviewed

by management. While not forming part of this Sustainability Report,

more information on individual facilities, including their baselines, covered

emissions and ACCU and/or SMC surrender can be found on the CER’s

website at https://cer.gov.au/.

5.2.7 Carbon credits

BHP currently acquires carbon credits primarily for regulatory

purposes. BHP may also sell carbon credits, depending on internal use

requirements, or originate carbon credits through project development

or direct investment. In the future, BHP may also acquire carbon credits

for voluntary purposes, including if needed for the purpose of our

medium‑term operational GHG emissions target (not currently expected)

or long‑term operational GHG goal (expected). BHP acquired carbon

credits may include reduction and/or removal credits, and may be sourced

from both nature‑based and technological project types.

We undertake risk‑based screening and/or due diligence to test that carbon

credits sourced by BHP meet our integrity standards. Carbon credits we

intend to source go through a review process that includes technical,

governance, legal and stakeholder aspects, carried out by internal and

external subject matter experts.

Our integrity standards are designed to align to global best practice for

high‑integrity carbon credits (such as the International Carbon Reduction

and Offsetting Alliance’s accreditation Code of Best Practice and its list

of endorsed carbon crediting standards, and the Integrity Council for the

Voluntary Carbon Market’s Core Carbon Principles). We will review and

update alignment over time as practices on carbon credit integrity evolve.

In some cases, the integrity standards of carbon credits may be set

and monitored by government agencies (ACCUs). Where the principles

underpinning their integrity standards are broadly aligned to our own, we

do not apply our review process.

We apply the following integrity standards to voluntary carbon credits that

we source:

– Registered under an internationally recognised standard: Independent

verification and issuance of voluntary carbon credits and/or satisfaction

of national standards for regulatory carbon credits. Carbon credits we

source are predominantly issued under Verra’s and Gold Standard’s

respective standards.

– Adheres to a robust GHG emissions reduction accounting

methodology: Assurance of the volume of atmospheric carbon

that is reduced by a project.

– Demonstrates that the GHG emission reductions are additional:

GHG emissions would not have been reduced in the absence

of a carbon market.

– Has a high likelihood of permanence: GHG emissions reduction

is ongoing and not reversed (e.g. for forestry projects, the trees

are not cut down or destroyed by a natural disaster).

– Provides robust mitigation against leakage: Does not increase GHG

emissions elsewhere (e.g. for forestry projects, another forest area

is not destroyed).

– Demonstrates high environmental and social integrity: Does not

cause broader social or environmental harm (e.g. for forestry projects,

no community displacement occurs) and appropriate engagement

is undertaken with local communities and Indigenous groups, and

the findings incorporated into project design (e.g. equitable benefit

sharing is defined).

– Restricts early vintage years: Not retiring credits with a vintage

greater than five years to avoid concerns regarding unsophisticated

methodologies, non‑additionality and inadequate benefit sharing.

Where third parties offset their GHG emissions that appear in our reported

Scope 3 emissions inventory and for purposes of our net value chain 2050

goal and targets, we plan to recognise and report the net GHG emissions

after offsetting. Carbon credits sourced by third parties in our value chain

and associated with GHG emissions that appear in our reported Scope

3 emissions inventory and against our targets and goals would need to

be high‑integrity (determined having regard to guidance from global best

practice, relevant regulatory standards and the integrity standards we

apply to our sourcing of voluntary carbon credits) before we recognised

that offsetting in our reporting.

6 Governance

This section provides information about BHP’s

governance of climate‑related risks and opportunities,

including Board oversight.

6.1 Board oversight

The BHP Board is responsible for the governance and oversight of climate

change issues, including strategic approach, risk management, investment

decisions, public disclosures and executive remuneration. The Board

approves significant social, community and sustainability policies, including

those related to climate change, and approves and oversees the setting

of and performance against BHP’s climate‑related strategy, goals and

targets. The Board is supported by its four standing Board Committees.

Climate‑related risks and opportunities are considered within the Board’s

broader oversight of portfolio strategy, sustainability and social value

objectives and risk management.

The Board, and its Committees as relevant, considers, reviews and

monitors climate‑related risks and opportunities, including associated

trade‑offs, as part of its decision‑making processes and considerations

for major transactions. For example, in considering portfolio decisions,

the Board assesses climate‑related risks and opportunities alongside other

relevant factors, such as economic and social value considerations, and

makes decisions based on an overall evaluation of these factors and the

trade‑offs between them.

The Board met 13 times during FY2026, with climate‑related matters

(including climate‑related risks and opportunities) regularly included on the

meeting agendas. Key activities included reviewing and approving public

sustainability disclosures (including this Sustainability Report), reviewing

progress against public climate‑related targets and goals, including the

social value scorecard 2030 goals, assessing corporate strategy, portfolio

options, annual budget and business plans, approving material investment

requests and risk and policy settings, and approving recommendations

from the People and Remuneration Committee on the inclusion of climate‑

related metrics in executive remuneration.

The Board, and each of its Committees as relevant, was informed on

climate‑related risks and opportunities through Board and Committee

papers, progress updates from management, material risk reports, briefings

and presentations. In addition, the Board receives updates from the Chair of

each Committee following Committee meetings. Climate‑related topics are

also incorporated into Director induction programs, ongoing training and site

visits to assist Directors in their oversight.

6.1.1 Board composition, skills and knowledge

The Board maintains a skills matrix included in section 4.5 of our Corporate

Governance Statement on page 101 that identifies the skills and experience

the Board needs for the next period of BHP’s development, considering BHP’s

circumstances and the changing external environment. Skills in the current

matrix related to the Board’s capability to assess and monitor climate‑related

risks and opportunities and oversee strategies designed to respond to

those risks and opportunities (including climate transition strategies),

including Sustainability and decarbonisation transition, Strategy, Operating

risk, Commodity value chain and customers, Social value, community

and stakeholder engagement, Technology and Capital allocation and cost

efficiency. The Board collectively possesses the skills and experience set

out in the skills matrix. The Directors also participate in an ongoing training

and development program and receive updates on climate‑related issues

and reporting requirements, including from external experts on evolving

climate‑related developments where required. The Board supplements its

knowledge by seeking the input of senior management, external advisers

and specialists to further inform its decisions.

In FY2026, the Board, supported by the Nomination and Governance

Committee undertook an internal evaluation of Board performance

and reviewed the skills and experience represented by the Directors

and determined that the composition and mix of those skills remains

appropriate to achieve BHP’s purpose and strategy, including those

relating to sustainability and the energy transition. An external service

provider also assessed the skills and experience of the Directors on the

Board for the purposes of the Board skills matrix.

To support the Board’s oversight of climate‑related matters, in FY2026 the

Board received an externally supported session on climate governance

and considerations for the Board in preparing for their responsibilities with

respect to this Sustainability Report.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

6.2 Board committees

The Board has four standing Committees to assist in the discharge of its

responsibilities, including on climate‑related matters. Each Committee’s

key responsibilities for climate‑related risks and opportunities are reflected

in BHP’s Committee Charters available on the BHP website at Corporate

Governance | BHP and summarised below.

The Sustainability Committee assists the Board with overseeing

climate performance including monitoring implementation of BHP’s

climate strategy, policies and processes, and performance against public

targets and goals, and monitoring progress against those targets and

goals. The Committee also makes recommendations to the People and

Remuneration Committee on setting climate performance measures

and evaluating performance against those measures for the CEO and

other members of the ELT. The Sustainability Committee meets at least

three times a year.

The Risk and Audit Committee oversees and assists the Board in

reviewing the emerging and principal risks facing BHP. This includes

business risk, financial reporting risk and climate risk, of which the

climate‑related risks which could reasonably be expected to affect

BHP’s prospects, as identified earlier, are a subset. The Committee

also reviews and recommends to the Board for approval public financial

disclosures regarding sustainability matters, including climate‑related risks

and opportunities, and climate‑related financial information contained

in sustainability reports. The Risk and Audit Committee reviewed the

climate‑related financial disclosures appearing in this Sustainability Report

and the Group’s FY2026 Financial Statements, both prior to the Board’s

approval. The Risk and Audit Committee meets at least four times a year.

The People and Remuneration Committee assists the Board with

reviewing performance measures and performance outcomes for the

CEO and approves performance measures and assesses and determines

performance outcomes against those performance measures for the

ELT. In doing so, the Committee considers recommendations from the

Sustainability Committee in relation to climate performance measures.

For FY2026, 10 per cent of the Cash and Deferred Plan (CDP) metrics

(representing 5.1 per cent of total target remuneration for the CEO and,

on average, 5.4 per cent for other Executive KMP)were weighted towards

decarbonisation, including the progress of our carbon abatement projects.

Further details are provided on page 118 of the Remuneration Report.

The People and Remuneration Committee meets at least three times a year.

The Nomination and Governance Committee assists the Board with

reviewing BHP’s significant social, community and sustainability‑related

policies (including those related to climate change and climate transition

planning), and reviews and makes recommendations to the Board on

BHP’s public sustainability‑related targets and goals. The Committee

also assists with assessing the capability of the Board to deliver on BHP’s

strategy by regularly assessing the Board skills matrix and the collective

skills, experience and knowledge of the Board to be able to discharge its

duties, including on the strategic direction of BHP. The Nomination and

Governance Committee meets at least three times a year.

6.3 Management

Management plays a key role in assessing, monitoring, managing and

overseeing climate‑related risks and opportunities and BHP’s performance

against relevant climate‑related targets and goals.

The CEO is responsible for the management of BHP’s business activities

(including in relation to climate‑related matters), within the delegations of

authority limits approved by the Board, and reports directly to the Board

and Chair. The CEO is supported by the ELT. The ELT is informed about

and monitors climate‑related risks and opportunities.

The strategic nature of climate change means that many different groups

and teams (including Sustainability, Finance, Legal, Governance, Risk,

Compliance, Operational Decarbonisation, Technology and Assets) have

a role to play in the delivery of climate‑related performance. Some specific

roles include:

– the Operating Committee (OpCo), a management sub‑committee

established by the CEO pursuant to the Executive Leadership Team

Charter. OpCo assists the CEO and the ELT to deliver BHP’s operational

commitments and support excellent operational performance, including

with respect to climate matters

– Group Officers, including the Group Sustainability and Social

Value Officer and the Chief Risk Officer, who are direct reports of

ELT members and are responsible for monitoring and driving our

sustainability strategy (including climate‑related considerations) and

monitoring climate‑related risks

– BHP’s assets and function teams, which implement our

decarbonisation strategy

Activities and processes that support the monitoring, managing

and oversight of climate‑related risks and opportunities include:

– incorporating climate and the energy transition into the development

and ongoing monitoring of Company strategy

– setting budgets, a capital allocation framework and investment

decision‑making processes that include the consideration of climate

and energy transition related factors, for example the provision of capital

expenditure to address climate‑related risks and opportunities

– climate transition planning and recommending actions, targets and

goals, and metrics

– consideration of climate‑related risks and opportunities assessed as

material under our Risk Framework and their integration within the risk

management process

– monitoring and updating the Board and ELT on the transition plan and

related internal and external decarbonisation‑related developments

– receiving regular progress and performance reports from asset and

function teams on sustainability and climate change matters, which

includes operational GHG emissions, operational and value chain GHG

emission reduction activities, adaptation strategy‑related activities and

management of climate‑related risks and opportunities

– designing Company‑wide processes to assist business delivery, such

as integrated emissions data system and Company Global Standards

related to climate change and asset decarbonisation plans

– acquiring carbon credits for compliance under regulatory schemes

and carbon credits that meet our integrity standards for potential

voluntary use

– liaising with investors, including on climate‑related matters

Sustainability Report continued

86 BHP Annual Report 2026

7 Basis of preparation, interpretation and

GHG emissions calculation methodology

7.1 Overview

This section provides important information about BHP’s basis

of preparation for this Sustainability Report (including significant

judgements, estimates and uncertainties), the reliefs BHP has applied,

the forward‑looking statements the Report contains, and the use and

interpretation of defined terms and abbreviations, and also contains BHP’s

methodology for calculating Scopes 1, 2 and 3 GHG emissions.

7.2 Basis of preparation

7.2.1 Reporting entity and purpose of this report

This Sustainability Report is prepared on a consolidated basis in respect

of BHP Group Limited (BHP or the Company) together with our controlled

entities (Group) for the year ended 30 June 2026, unless otherwise stated.

This Sustainability Report has been prepared in accordance with the:

– Australian Corporations Act 2001, and

– Australian Sustainability Reporting Standard AASB S2 Climate‑related

Disclosures (AASB S2) as issued by the Australian Accounting

Standard Board

7.2.2 Organisational reporting boundary

and GHG emissions methodologies

This Sustainability Report includes all Scope 1 and Scope 2 emissions

(location‑ and market‑based) from operations and entities over which

BHP has operational control

. Operational control was selected as it is the

organisational boundary for our operational GHG emissions medium‑term

target and net zero goal. It was also the organisational boundary approach

used historically by BHP for consolidating our Scope 1 and Scope 2

emissions. BHP has aligned our Scope 3 emissions reporting to operational

control as well, as required under AASB S2. We also include GHG emissions

for BMA (Scopes 1, 2 and 3 emissions) in this Sustainability Report on a

100 per cent basis (except where expressly stated otherwise), as explained

in 7.2.3 Treatment of BMA on page 87. GHG emissions generated in the

Company value chain are reported as Scope 3 emissions, being emissions

from sources not controlled by the Company. Refer to section 5 Metrics and

targets on page 76 for information about the boundaries for our operational

and value chain GHG emissions targets and goals. We measure GHG

emissions in accordance with the Greenhouse Gas Protocol: A Corporate

Accounting and Reporting Standard (2004) (GHG Protocol) and the Scope

3 measurement framework within AASB S2.

For Scope 1 and Scope 2 emissions and to the extent it is not inconsistent

with the requirements of AASB S2 and the GHG Protocol:

– we use the calculation methodologies specified in the Australian

National Greenhouse and Energy Reporting (Measurement)

Determination 2008, the Chilean Green Tax legislation, and the

Canadian Greenhouse Gas Reporting Program (GHGRP), as applicable

– the measurement of Scope 2 GHG market‑based emissions has been

informed by the additional guidance in the GHG Protocol Scope 2

Guidance (An amendment to the GHG Protocol Corporate Standard)

(Scope 2 Guidance).

To the extent it is not inconsistent with the requirements of AASB

S2 measurement framework for Scope 3 emissions, the measurement

of Scope 3 emissions in accordance with that framework has been

informed by the GHG Protocol Corporate Value Chain (Scope 3)

Accounting and Reporting Standard (2011) (Scope 3 Standard) and the

GHG Protocol Technical Guidance for Calculating Scope 3 Emissions

(Scope 3 Guidance).

For more information on the methodologies we apply refer to

7.6 Methodology for calculating Scopes 1, 2 and 3 GHG emissions

on page 89

BHP has early adopted the amendments to AASB S2 issued by

the Australian Accounting Standards Board in December 2025 (i.e.

AASB S2025-1 Amendments to Greenhouse Gas Emissions Disclosures)

for the FY2026 reporting period. For more information about the implication

of this early adoption refer to 7.5 Application of reliefs on page 88.

Operational GHG emissions for OZ Minerals Brazil assets (acquired by

BHP on 2 May 2023) were immaterial and therefore have been excluded

from BHP’s Scope 1, Scope 2 or Scope 3 GHG emissions inventory.

These assets were divested on 20 December 2024 (Centro Gold assets)

and 2 April 2026 (Carajás assets).

7.2.3 Treatment of BMA

While we account for BMA as a ‘joint operation’ in our Financial

Statements, we include GHG emissions for BMA (Scopes 1, 2 and 3) in

this Sustainability Report on a 100 per cent basis, (as applicable), and

our Sustainability Report disclosures apply to BMA, unless expressly

stated otherwise. We include BMA on this basis as this approach is

consistent with BHP’s prior reporting of Scopes 1 and 2 GHG emissions

and the boundary for our operational GHG emissions medium‑term target

and net zero goal, and as, pursuant to the governance and operational

arrangements agreed by BHP and Mitsubishi Development, BMA has

adopted certain structures, policies, standards and processes of the BHP

Group with respect to BMA’s operations and supply chains. However, to

align to the treatment of BMA in our Financial Statements, we present

50 per cent of BMA’s Scopes 1 and 2 emissions from GHG emissions

for the consolidated accounting group in Table 6 on page 77. The other

50 per cent is included in the emissions of other investees in that table.

7.2.4 Non-operated joint ventures

BHP’s non‑operated joint venture investments (Antamina, Vicuña,

Resolution Copper and Samarco) (NOJVs) fall outside the consolidated

entity reporting boundary for this Sustainability Report. This aligns with

the basis of preparation for our Financial Statements and our established

approach to sustainability reporting. Our Sustainability Report disclosures

do not apply to these NOJVs unless expressly stated otherwise and then

only to the extent necessary to provide a decision‑useful understanding of

our business model and prospects. We have assessed this based on BHP’s

economic exposure as an investor in the NOJVs. How we account for GHG

emissions from BHP’s investment in the NOJVs and other non‑operated

assets is described in 7.2.2 Organisational reporting boundary and GHG

emissions methodology on page 87 and 7.6 Methodology for calculating

Scope 1, 2 and 3 GHG emissions on page 89. Refer to section 5 Metrics and

targets on page 76 for information about the boundaries for our operational

and value chain GHG emissions targets and goals.

7.2.5 Significant judgements, estimates and uncertainties

The analysis and reporting of climate‑related financial information requires

the use of judgements, estimates and assumptions, which are based on

the most current facts and circumstances that BHP has available at the

time of reporting and are reassessed as required for subsequent reporting.

Current financial effects within this Sustainability Report are prepared from

the same data and financial systems used to prepare the Group’s Financial

Statements and inform our key judgements and estimates, as outlined

within Financial Statements from page 128. Specific climate‑related

judgements and estimates are outlined within Financial Statements note 16

‘Climate change’ on pages 157 to 159.

Measurement uncertainty exists, particularly where estimates are derived

from models, scenarios or assumptions about future conditions, or where

data quality and completeness limitations exist. The preparation of this

Sustainability Report requires the use of estimates for certain amounts

(where the uncertainty is not so high as to prevent decision‑useful

quantification), including for historical GHG emissions that cannot be

measured directly (such as some areas of fuel and energy data and value

chain GHG emissions), all forward‑looking data or other information, and

where data limitations otherwise exist.

Our reported GHG emission inventories for Scope 3 emissions are subject

to inherent uncertainties arising from reliance on data obtained from third

parties, or necessarily estimated or assumed, and may not be accurate or

complete (for more information refer to the descriptions of each Scope 3

category outlined in 7.6.4 Scope 3 emissions on pages 90 to 92).

Future carbon prices (see 3.1.1 Internal carbon prices on page 64 and

carbon credit requirements (see 5.2.7 Carbon credits on page 85 and

Table 6b on page 80) are subject to inherent uncertainty driven by a

range of external factors, including the pace of policy implementation, the

development of compliance carbon markets, and the deployment of lower

GHG emissions technologies.

1. 100 per cent of energy consumption and Scopes 1 and 2 emissions from operations over which BHP has operational control (including any one or more subsidiaries in the

BHP group of companies). Excludes energy consumption and GHG emissions from operations in which BHP owns an interest but does not have operational control.

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Areas where the level of measurement uncertainty is so high that any

resulting quantitative information would not be decision useful, and so

quantification has not been provided, or only limited quantification has

been provided, in this Sustainability Report, include estimates dependent

on the availability, cost and scalability of decarbonisation technologies

needed to meet BHP’s operational GHG emissions goal (see 2.1.3

Strategy for our long-term goal on page 59); climate‑related scenario

analysis and resilience assessments (see 3.3.2 Scenario analysis on

page 72 and 3.3.3 Climate resilience assessment on page 75); and the

longer‑term future aspects of BHP’s climate transition plan and associated

operational and value chain GHG emissions strategies (see 2.1.3 Strategy

for our long-term goal on page 59), as well as 2.2 Value chain GHG

emissions (Scope 3 emissions) on page 62 and Tables 6e, 6f, and 6g).

Where relevant, the nature and sources of measurement uncertainty are

explained alongside the sections of this Sustainability Report that contain

the related disclosures.

Anticipated financial effects of climate‑related risks and opportunities

also involve significant judgement and estimation and, in some instances,

including long‑term expenditure and potential reputational impacts,

quantification has not been disclosed as measurement uncertainty

is so high that resulting information would not be decision useful.

All anticipated financial effects are inherently uncertain due to their

forward‑looking nature and reliance on assumptions, estimates and

methodologies that may change over time. Unless otherwise stated,

anticipated financial effects represent management’s best estimate of the

impacts BHP reflects in our planning range, based on current information,

assumptions and available methodologies (see Financial Statements note

16 ‘Climate change’ on pages 157 to 159 for more information). The nature

and sources of measurement uncertainty of quantified and not quantified

anticipated financial effects are explained alongside the related disclosures

(see ‘Anticipated financial effects’ in Table 1 on pages 66, 67, 68, 69, and 71).

Additionally, determining the extent of assets or business activities that

are vulnerable to climate‑related risks or aligned with climate‑related

opportunities requires judgement. ‘Vulnerable’ is not a defined term

under AASB S2 and there are inherent limitations in assessing the extent

to which climate‑related risks or opportunities may eventuate due to

the timing and the nature of impacts. BHP has identified those assets

or business activities that it considers vulnerable to, or aligned with,

specific climate‑related risks and opportunities by evaluating their level of

exposure, together with the mitigating activities embedded within BHP’s

strategy. Refer to section 3 Strategy for managing climate-related risks

and opportunities on page 64 for specific considerations applied to each

identified climate‑related risk and opportunity.

7.3 Forward-looking statements

This Sustainability Report has been prepared to provide stakeholders with

information about BHP’s climate‑related risks and opportunities that could

reasonably be expected to affect our cash flows, access to finance or cost

of capital over the short, medium, or long term. It contains climate‑related

information, as well as forward‑looking statements. Forward‑looking

statements are based on management’s expectations and reflect

judgements, assumptions, estimates and other information available, as at

the date of this Sustainability Report. These statements do not represent

guarantees or predictions of future financial or operational performance

and involve known and unknown risks, uncertainties, and other factors,

many of which are beyond our control, and which may cause actual results

to differ materially from those expressed in the statements contained in this

Sustainability Report.

This Sustainability Report also discusses scenario analysis. There are

limitations with respect to scenario analysis, including any climate‑

related scenario analysis, and it is difficult to predict which, if any, of

the scenarios might eventuate. Scenario analysis is not an indication

of probable outcomes and relies on assumptions that may or may

not prove to be correct or eventuate, and may not reflect BHP’s own

expectations. Scenarios may be impacted by additional factors to the

assumptions disclosed.

This Sustainability Report forms part of this Annual Report and should

be read together with the forward‑looking statements disclaimer under

Forward‑looking statements at the beginning of this Annual Report, which

applies to the climate‑related information and forward‑looking statements

contained in this Sustainability Report. For more information, including

examples of forward‑looking statements and a discussion of external

factors that may affect them, refer to Forward‑looking statements at the

beginning of this Annual Report.

7.4 Use and interpretation of terms, defined terms

and abbreviations

7.4.1 Overview of terminology

This Sustainability Report uses defined terms (without capital letters),

including terms defined or informed by AASB S2 (as described below)

and additional terms which are not defined by AASB S2, and should be

read in conjunction with all terms and abbreviations defined in Additional

information: Glossary on pages 238 to 243 and Company details at the

beginning of this Annual Report.

7.4.2 Material information

AASB S2 requires disclosure of material information about climate‑related

risks and opportunities that could reasonably be expected to affect

BHP’s prospects. Materiality judgements have been made by BHP in

determining the disclosures made in accordance with AASB S2, including

consideration of internal and external expectations. These judgements

have considered whether information could reasonably be expected to

influence decisions that primary users of general purpose financial reports

make on the basis of those reports.

7.4.3 Time horizons

BHP has disclosed material information about our identified climate‑related

risks and opportunity, both physical and transition, across the following

three time horizons, which are aligned to our strategic planning and

risk management:

Short-term up to 1 year

Medium-term 1 to 5 years

Long-term 5 to 30 years (or longer to align with BHP’s asset lives)

The time horizons draw from BHP’s strategic planning, including annual

budget (short‑term), supportive actions and initiatives between short‑term

activities and BHP’s long‑term strategic outlook, supported by our five‑year

planning processes (medium‑ term), and the capital‑intensive nature of the

mining industry, where significant upfront investments are made in assets

with operational lives often exceeding five years, which are considered

in our life of asset plans (long‑term). The time horizons are also informed

by the timeframes used in the assessment of likelihood under BHP’s Risk

Framework (see section 4 Risk management on page 76 for an overview

of the Risk Framework) and take into consideration the useful life of BHP’s

assets and the fact that some climate‑related risks and opportunities may

be more likely to manifest over the medium and longer terms. Different time

horizons have been used for the purposes of certain aspects of our

climate‑related scenario analysis, as explained in 3.3 Scenario analysis

and resilience on page 72.

7.4.4 Current and anticipated financial effects

Financial effects refer to actual and potential impacts to BHP’s financial

position, financial performance and cash flows as relevant for each

identified climate‑related risk or opportunity. Material financial effects,

both qualitative and quantitative, alongside methodologies specific to our

identified climate‑related risks and opportunity are disclosed in section 3

Strategy for managing climate-related risks and opportunities on page 64,

with reference to the Group’s FY2026 Financial Statements where relevant.

Both current and anticipated financial effects represent BHP share, aligned

to Financial Statement presentation, unless otherwise noted.

7.5 Application of reliefs

BHP has elected to exercise the transition relief available with respect to

the provision of comparative information. In some instances, BHP has

voluntarily disclosed comparative information. Comparative information

has not been restated for any difference from an amount previously

disclosed, unless otherwise noted.

BHP has elected to exercise the jurisdictional relief (by early adoption) with

respect to application of Global Warming Potential (GWP) values for the

calculation of our Scope 1 GHG emissions where direct measurement of

GHG emissions is applied (see 7.6.1 Scope 1 emissions for information on

our use of direct measurement, which is currently limited to BHP’s Australian

operations). The Australian National Greenhouse and Energy Reporting

(NGER) legislation uses the Fifth Assessment Report (AR5) Global

Warming Potential (GWP) values for the purpose of calculation of emission

factors where direct measurement is applied. In addition, BHP has applied

the commercial sensitivity relief and has therefore not disclosed certain

commercially sensitive information relating to the identified climate‑related

opportunity, copper demand, as referenced on page 69.

Sustainability Report continued

88 BHP Annual Report 2026

7.6 Methodology for calculating Scopes 1, 2 and 3

GHG emissions

7.6.1 Other information

For the organisational boundary adopted by BHP and the requirements

and standards that inform our calculation of GHG emissions refer

to 7.2.2 Organisational reporting boundary and GHG emissions

methodologies on page 87.

Application of GWP factors: where we use direct measurement to calculate

the operational GHG emissions of our Australian assets, BHP uses

GWP values from the IPCC’s Fifth Assessment Report (AR5). Scope 2

location‑based GHG emissions for our Chilean assets have been calculated

using GWP values from the IPCC’s Sixth Assessment Report (AR6) as they

are embedded in the emission factors published by the Chilean Electric

Coordinator (CEN). For all other emissions calculations, where emission

factors are already converted to CO

‑e values, the factors are applied from

prior IPCC Assessment Reports directly, and calculation methodologies

based on estimated activity data.

The following mandatory reporting programs are applicable to BHP’s

operational GHG emissions reporting:

Asset Location Regulation

BMA

NSWEC

Copper South Australia,

Western Australia Nickel

Western Australia Iron Ore

Australia National Greenhouse and Energy

Reporting (NGER) Scheme

Escondida

Pampa Norte

Chile Green Tax legislation (referencing

IPCC factors)

Jansen Canada Canadian Greenhouse Gas

Reporting Program (GHGRP)

(referencing IPCC factors)

7.6.2 Scope 1 emissions

Scope 1 emissions are measured using methodologies and emission

factors appropriate to each source. Scope 1 emissions are calculated

with emission factors (or methodologies to derive emission factors) from

Australia’s National Greenhouse and Energy Reporting (Measurement)

Determination 2008 (NGER Measurement Determination); the Canadian

Greenhouse Gas Reporting Program (GHGRP); and the Green Tax

legislation (referencing Intergovernmental Panel on Climate Change

(IPCC) factors) in Chile, including as follows:

– GHG emissions from combustion of fossil fuels: These GHG

emissions are calculated by multiplying the quantity of fuel consumed

by the applicable emission factor for the fuel. Energy consumption

quantities by fuel type (e.g. diesel, natural gas) are recorded at asset

level throughout the year, using sources such as supplier invoices,

metering, stockpile changes and other industry standard practices.

All fuel quantities are converted to energy‑based units using energy

content factors specific to each fuel (e.g. gigajoules per kilolitre for

diesel), sourced from appropriate references.

Method 2 from the NGER Measurement Determination is applied when

determining CO

‑e emissions from the combustion of natural gas based

on site‑specific gas composition data at WAIO’s Yarnima Power Station.

– Fugitive methane emissions from extraction of natural

resources: These GHG emissions are either metered directly (e.g.

gas flow measurements from ventilation or drainage systems installed at

underground coal mines) or calculated using source‑specific methodologies

and emission factors based on the specific characteristics of the resource.

The finalisation of open‑cut fugitive methane emissions factors is conducted

after the end of the performance year. Where the emission factor used for

reporting is not finalised, fugitive methane emissions are estimated based

on prior year measured outcomes and mine plans from the current year.

Methods 1, 2 and 4 from the NGER Measurement Determination are used

to measure fugitive methane emissions at our coal mining operations.

BMA (underground) – Broadmeadow

– Gas drainage (flared): Method 1 – Default emission factors applied

to measured quantities of gas flared

– Gas drainage (vented): Method 4 – The direct measurement of

emissions released from the drainage of coal mine gas using

continuous monitoring of the gas stream

– Underground ventilation: Method 4 – The direct measurement

of emissions released from the extraction of coal using continuous

and periodic monitoring of the gas stream

– Post‑mining coal handling: Method 1 – Default emission factor applied

to run of mine coal extraction

BMA (open‑cut) – Caval Ridge, Goonyella Riverside, Peak Downs,

Saraji, Saraji South

– Method 2 – Quantities of methane emissions contained in coal

extracted is calculated based on measured in‑situ gas content

and composition

NSWEC (open‑cut) – Mt Arthur Coal

– Open‑cut Method 2 – Quantities of methane emissions contained in

coal extracted is calculated based on measured in‑situ gas content

and composition

– GHG emissions from use of fossil fuels as a feedstock to a

chemical process: These GHG emissions are calculated using ‘carbon

balance’ methodologies sourced from appropriate references and

involve estimation of the total carbon content of inputs to the process

and total carbon content of products and by‑products from the process.

The difference in carbon content is assumed to be converted to CO

through the process. Methodologies and carbon contents for inputs and

products are sourced from appropriate references.

Scope 1 emissions from land use change‑related activities were estimated

to be immaterial for BHP in FY2026 and are therefore not included in

BHP’s Scope 1 GHG emissions inventory.

7.6.3 Scope 2 emissions

Electricity consumption quantities are recorded at asset level via supplier

invoices or metering. We use two methods for these calculations: the

location‑based method and market‑based method.

Scope 2 location-based emissions

The emission factors we use to calculate location‑based Scope 2

emissions is based on average energy generation emission factors for

defined geographic locations.

Scope 2 market-based emissions

Market‑based reporting of Scope 2 emissions is based on the generator(s)

supplying the electricity (and therefore the generation fuel mix from which

the reporter contractually purchases electricity and/or is directly provided

electricity via a direct line transfer).

For our contracted electricity with low or zero GHG emissions attributes,

we use evidence from renewable energy certificates (RECs) and/or

supplier‑provided documentation in line with the Scope 2 Guidance,

unless otherwise specified.

For residual electricity not covered by contractual arrangements, the use

of a residual mix factor (RMF) is required, under the Scope 2 Guidance, if

available. The emissions factors used for market‑based emissions depend

on the availability of a RMF in the regions where we operate, noting:

– In Australia, a national RMF is available, so our Australian assets

transitioned to using it from FY2026 to comply with the Scope 2

Guidance. For prior years in our adjusted GHG emissions inventory,

the RMF used for years from FY2024 aligns with those published by

the CER. For FY2020 to FY2023, an estimated national RMF has

been derived using publicly available data. Recalculating historical

Scope 2 market‑based emissions using the RMF for the Australian

assets has increased BHP’s emissions, as the RMF was higher than

the location‑based factors previously applied to residual electricity not

covered by contractual arrangements.

– For our non‑Australian operated assets, an RMF that meets the

Scope 2 Guidance definition is currently unavailable in the markets

where we operate. For residual electricity not covered by contractual

arrangements, a default location‑based emission factor is applied, as

published in local regulations or industry frameworks. This may result in

double counting of renewable or other lower GHG emission electricity

contributions across grid‑supplied consumers.

– For our operations in Chile, final validation for surrender of the rights

to claim renewable energy attributes occurs on a calendar year basis,

and for our operations in Australia, surrender of voluntary renewable

energy attributes (large‑scale generation certificates) can occur after

the financial year. Given we report on a financial year basis, we review

our reported Scope 2 emissions after the relevant surrenders have

occurred and restate in disclosures for the following reporting period

if any material variation is found with our Chilean or Australian Scope

2 market‑based emissions.

To help inform users’ understanding of the Scope 2 market‑based method

calculation, Table 7 sets out BHP’s relevant contractual instruments

(renewable electricity power purchase agreements).

Operating and Financial Review Additional InformationFinancial StatementsGovernance

Sustainability Report

Table 7 – Renewable electricity power purchase agreements (PPAs)

Asset Supplier Size (MWh p.a.) Start date

Duration

(years)

Type of renewable

generation

Escondida (Chile) Enel and Colbún Each supplier:

~3,300,000 + 330,000

FY2022 Colbún: 10

Enel: 15

Existing and new – approximately

half from new generation

Spence (Chile)

BHP Mitsubishi

Alliance (Australia)

CleanCo Confidential H2 FY2021 5 New generation

CleanCo PPAs provide 100%

coverage of forecast

demand (from 1 July 2026)

H2 FY2026 5 Existing and new generation

CleanCo FY2027 7 New generation

Copper South Australia Neoen ~613,200 FY2026 Confidential New generation

Neoen 876,000 FY2030 10 New generation

Iberdrola 175,200 FY2028 Confidential Existing generation

Western Australia Nickel SUN Energy ~130,000 FY2022 10 Existing generation

Southern Cross Energy

Partnership – Northern

Goldfields Solar Project

~94,000 FY2023 15+ New generation

Potentia Energy ~315,000 FY2025 14 New generation

Western Australia Iron Ore APA Confidential FY2026 Confidential New generation

1. The key information to inform users’ understanding of BHP’s Scope 2 emissions is provided in the ‘Asset’, ‘Supplier’, ‘Start date’ and ‘Type of renewable generation’ columns.

Additional information about the size and duration of these arrangements is provided where disclosure of that information is not subject to confidentiality.

2. All GHG emissions that occur in the lifecycle of purchased products, up to the point of receipt by BHP (excluding GHG emissions from sources that are owned or controlled by BHP).

Total RECs to be surrendered for FY2026 is 8.4 million, comprising

certificates used to meet renewable energy‑related compliance obligations

(such as those under the Australian Renewable Energy Target scheme)

and voluntary surrenders. These RECs were sourced either from the PPAs

described in Table 7 or purchased on the secondary market.

7.6.4 Scope 3 emissions

Categories

The GHG Protocol Corporate Value Chain (Scope 3) Accounting and

Reporting Standard (2011) (Scope 3 Standard) divides Scope 3 emissions

into upstream and downstream GHG emissions, based on the financial

transactions of the reporting company:

– upstream GHG emissions are indirect GHG emissions related

to purchased or acquired goods and services

– downstream GHG emissions are indirect GHG emissions related

to sold goods and services

Scope 3 GHG emissions are further categorised by the Scope 3 Standard

into 15 distinct categories, as described in the Scope 3 Standard.

The Scope 3 categories included within BHP’s reported Scope 3 GHG

emissions inventory are those outlined in Tables 5 and 6.

Scope 3 GHG emissions categories that are excluded from the inventory

have been assessed as not material or inapplicable. These include

Category 5: Waste generated in operations, Category 8: Upstream leased

assets, Category 12: End‑of‑life treatment of sold products, Category 13:

Downstream leased assets and Category 14: Franchises. Category 2 is

included in Category 1, as described below.

Boundary overlap

While the GHG emission categories defined by the Scope 3 Standard

are designed to be mutually exclusive, for BHP (in common with other

producers of raw materials), there is a degree of overlap in reporting

boundaries due to our involvement at multiple points in the lifecycle of

the commodities we produce and consume. As a result, some double

counting may be inherent due to our position in the value chain and may

inflate our reported total Scope 3 emissions. Some double counting of

GHG emissions in our current reported Scope 3 emissions inventory is

an expected outcome of GHG emissions reporting between the different

Scopes and is not considered to detract from the overall value of our

Scope 3 emissions disclosures.

Organisational boundary

As required under AASB S2, in FY2026 we have changed our

organisational boundary for reporting Scope 3 emissions to operational

control to be consistent with the organisational boundary used to report

our Scope 1 and Scope 2 emissions. As a result of these changes,

Scope 3 emissions associated with assets under our operational control

(together with BMA as described in 7.2.3 Treatment of BMA on page 87)

are accounted for at 100 per cent irrespective of BHP’s equity ownership

in the asset. Scope 3 emissions from our investment in non‑operated joint

ventures (i.e. Scope 1 and Scope 2 emissions of non‑operated assets,

other than BMA) are accounted for under Category 15: Investments

and reflect BHP’s equity ownership of those assets. The primary impact

of this change is an increase in the steelmaking emissions included in

our reported Scope 3 inventory (under Category 10: Processing of sold

products) due to production from WAIO being accounted for at 100 per

cent under the operational control organisational boundary, instead of

85 per cent (reflecting equity ownership).

Boundary of Scope 3 goals and targets

Scope 3 goals and targets set by BHP have individual boundaries that

differ to the organisational boundary for our reported Scope 3 GHG

emissions inventory. This is because our Scope 3 goals and targets were

set to reflect the different degrees of BHP’s potential capacity to affect

outcomes, which varies across the value chain. For specific boundaries

applicable to our Scope 3 goals and targets, and presentation of our Scope

3 emissions inventory to reflect those specific boundaries, refer to 5.2

Climate-related targets on page 77.

Inputs and assumptions for Scope 3 emissions calculation

We prioritise inputs and assumptions based on the Scope 3 measurement

framework within AASB S2. All our Scope 3 GHG emissions are based on

estimation (rather than direct measurement), and this involves approximate

calculations of data based on assumptions and appropriate inputs (subject

to data availability). The majority of the inputs we use to estimate Scope 3

GHG emissions are from secondary data sources (e.g. industry‑average

data provided by third‑party data providers), with primary inputs (e.g.

data reflecting BHP’s own records or obtained from our direct suppliers

or customers) used where available within our value chain. BHP verifies

inputs where practicable based on our own records or where we can

correlate the data with our own activity data. The calculation methodology

for each Scope 3 category included within BHP’s reported Scope 3 GHG

emissions inventory, together with specification of the characteristics of

inputs and assumptions used for each category, are described below.

Category 1: Purchased goods and services (including capital goods)

This category includes upstream (i.e. cradle‑to‑gate

) GHG emissions

from the extraction, production and transportation of goods and services

purchased or acquired by BHP during the year. For BHP, this category

includes GHG emissions associated with purchases of capital goods,

which are classified as a separate category (Category 2) under the

Scope 3 Standard. Purchases of capital goods can be difficult to segregate

from this category, therefore the transport of goods and services to us

may also be included in this category when we do not have a reliable way

to estimate it separately.

As described in section 2 Performance against our operational and value

chain GHG emissions targets and goals on page 58, in FY2026 two key

improvements to Category 1 emissions accounting were implemented:

– We have started using product‑level GHG emissions data sourced

directly from four strategic suppliers.

– We transitioned to using emission factors from CEDA for the remaining

goods and services using the spend‑based method.

Sustainability Report continued

90 BHP Annual Report 2026

1. FY2025 figures also corrected for the unintentional inclusion of Samarco, which is not under BHP’s operational control, as described in 5.1.1 Scopes 1, 2 and 3 GHG emissions

performance on page 77.

The impact of the change to using CEDA data on the Category 1 emissions

in our reference year for our Scope 3 net zero goal and targets (FY2020)

was a change from 9.2 MtCO

‑e (unadjusted) to 9.5 MtCO

‑e (adjusted).

As a result of both improvements our FY2026 emissions are 9.7 MtCO

‑e

(adjusted), compared to 10.6 MtCO

‑e without these improvements,

and FY2025 emissions are 10.4 MtCO

‑e (adjusted), compared to

10.9 MtCO

‑e without these improvements

. The trend towards lower

emissions in FY2025 and FY2026 is consistent with observations from the

industries in which our suppliers operate.

Emissions are estimated using the following inputs and assumptions:

– Supplier invoices, which are considered primary data as sourced from

BHP’s accounting and reporting systems and are verified with internal

reviews to remove non‑emissions related spend.

– GHG emissions and emission factors directly provided by suppliers,

which are considered primary data, and are verified by third parties

for some suppliers but unverified for others.

– For generic goods and services, spend‑based emission factors are

sourced from the verified secondary data source, CEDA and applied

to the spend data.

– For select high‑spend goods and explosives, a combination of

quantity‑based emission factors sourced from CEDA and ecoinvent

(a Life‑Cycle Analysis database also considered a secondary data

source) and supplier emission factors sourced from suppliers’ Life‑Cycle

Analysis reports, which are considered primary data are applied.

– Inflation figures obtained from the US Bureau of Statistics are used

to align the emission factor to the year of the supplier invoices.

– GHGs included: CO

, CH

, N

O, HFC, PFC, HF

, NF

Category 3: Fuel- and energy-related activities

This category includes GHG emissions from the extraction, production

and transportation of fuels and energy purchased by BHP and not already

accounted for in BHP’s Scopes 1 and 2 emissions.

Emissions are estimated using the following inputs and assumptions:

– For generic fuel, natural gas and electricity consumption, supplier

invoices, which are considered primary data as sourced from BHP’s

accounting and reporting systems and are verified with internal reviews.

– GHG emissions data associated with Kelar Power Plant generation is

provided by the operator, Tamakaya Energia SpA, and so considered

primary data and is unverified as it is subject to finalisation for the

reporting year. In FY2026, GHG emissions from Tamakaya Energia SpA

have been reclassified from Category 15 following an internal review of

classification across Scope 3 GHG emissions categories.

– For fuels and energy purchased by BHP for operations located

in Australia, emission factors from the Australian Government

Department of Climate Change, Energy, Environment and Water’s

Australian National Greenhouse Accounts Factors, considered

secondary data, are applied.

– For fuels and energy purchased by BHP for all other operations,

emission factors from the UK Department for Energy Security and

Net Zero as referred to in the United States Environmental Protection

Agency (US EPA) Scope 3 Inventory Guidance, are applied.

– GHGs included: CO

, CH

, N

Category 4: Upstream transportation and distribution

This category includes GHG emissions from the transportation and

distribution of our products where the means of transport is not owned or

controlled by BHP but we cover the freight costs (e.g. under Cost and Freight

(CFR) or similar terms), as well as purchased transport services for process

inputs to our operations. This category includes GHG emissions from road,

rail and marine freight, and the latter makes up the majority of emissions.

Emissions are estimated using the following inputs and assumptions:

– Fuel consumption for maritime transport is derived from a combination

of primary and secondary data sources. Where necessary, we apply

assumptions to estimate fuel consumption based on a range of publicly

and privately available data sources and to appropriately account for our

share of GHG emissions associated with the ‘unused’ carrying capacity

of partially loaded container ships.

– Shipping voyages commenced in FY2025 and FY2026 and ended

in FY2026 are included in FY2026 reporting. Shipping voyages

commenced in FY2026 and ending in FY2027 have not been included

but will be included in FY2027 reporting. Data is collected and validated

on DNV’s Veracity platform and verified with internal reviews.

– For maritime transport, emission factors for standard fuels are sourced

from Regulation (EU) 2023/1805 of the European Parliament and of

the Council (dated 13 September 2023). For non‑standard or emerging

fuels (e.g. biofuels or low‑carbon methanol), emission factors are

sourced from carbon intensity values captured within the fuel’s relevant

sustainability certification.

– For generic non‑maritime transport, we use BHP sale records to

calculate distance covered (which are considered secondary data and

verified with internal reviews) multiplied by emission factors from the UK

Government Department for Energy Security and Net Zero. For select

high‑spend goods, supplier invoices (which are considered primary data

as sourced from BHP’s accounting and reporting systems and verified

with internal reviews) are multiplied by a combination of emission factors

also sourced from CEDA and from the UK Department for Energy

Security and Net Zero.

– Inflation obtained from the US Bureau of Statistics to align the emission

factor to the year of the supplier invoices.

– GHGs included: CO

, CH

, N

O, HFC, PFC, HF

, NF

Category 6: Business travel

This category includes GHG emissions from the transportation of

employees for business‑related activities where the means of transport

is not owned or controlled by BHP.

Emissions are estimated using the following inputs and assumptions:

– For inland transportation, supplier invoices (which are considered

primary data as sourced from BHP’s accounting and reporting systems

and verified with internal reviews) are multiplied by the spend‑based

emission factor sourced from CEDA.

– For air transportation, spend records (which are considered secondary data

as sourced from the third‑party provider of the service and verified with

internal reviews) are multiplied by the spend‑based emission factor sourced

from the UK Government Department for Energy Security and Net Zero.

– Inflation obtained from the US Bureau of Statistics to align the emission

factor to the year of the supplier invoices.

– GHGs included: CO

, CH

, N

Category 7: Employee commuting

This category includes GHG emissions from the transportation of

employees between their homes and their worksites where the means

of transport is not owned or controlled by BHP.

Emissions are estimated using the following inputs and assumptions:

– Supplier invoices (which are considered primary data as sourced from

BHP’s accounting and reporting systems and verified with internal

reviews) are multiplied by the spend‑based emission factor sourced

from CEDA.

– Inflation obtained from the US Bureau of Statistics to align the emission

factor to the year of the supplier invoices.

– GHGs included: CO

, CH

, N

O, HFC, PFC, HF

, NF

Category 9: Downstream transportation and distribution

This category includes GHG emissions from the transportation and

distribution of our products where the freight costs are not covered by

BHP (e.g. under Free on Board (FOB), Ex Works (EXW) or similar terms).

This category includes GHG emissions from road, rail and maritime freight,

and the latter makes up the majority of emissions.

For some FOB cargoes, destination ports are not known, and so AIS

information (i.e. publicly reported geolocational tracking data) is used by

DNV Veracity to derive and validate the first destination port within the

intended destination country.

All other methodology details are as described in the ‘Upstream

transportation and distribution’ category (Category 4).

Due to the availability of data, the operational control inventory is currently

used as a proxy for measurement against our Scope 3 emissions long‑term

net zero shipping target and the shipping portion of our Scope 3 emissions

long‑term net zero goal.

GHGs included: CO

, CH

, N

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92 BHP Annual Report 2026

Category 10: Processing of sold products

This category includes GHG emissions from the processing of intermediate

products sold by downstream companies subsequent to sale by BHP.

The ‘average‑data’ method as described in the Scope 3 Guidance is used

to calculate these GHG emissions, with industry‑average emission factors

applied to production volumes for each commodity to calculate an overall

emissions estimate for this category.

Emissions are estimated using the following inputs and assumptions:

– Production volumes are considered verified primary data as sourced

from the BHP Operational Review for the year.

– For GHG emissions relating to steelmaking:

– The quantity of crude steel equivalent produced from the input

quantity of iron ore is calculated using a conversion factor based

on the average iron (Fe) content of BHP iron ore product and the

average Fe content of crude steel from IEA Iron and Steel CCS

Study (April 2013).

– We use global average emissions intensity factor from the

International Energy Agency (IEA) Iron and Steel Technology

Roadmap (October 2020). The emission factor may not accurately

represent (geographically, technologically or temporally) the actual

emissions intensities of our customers’ facilities. However, it is

considered to be sufficiently representative of average industry

conditions as to provide a meaningful estimation.

– To estimate GHG emissions from the processing of iron ore, all

iron (Fe) content in produced iron ore is assumed to be processed

to crude steel via the blast furnace basic oxygen furnace route.

The crude steel equivalent produced is assumed to be attributable

to iron ore only and not scrap steel.

– The majority of BHP’s steelmaking raw materials portfolio (iron ore and

steelmaking coal) is sold into and processed through the blast furnace

integrated steelmaking route. To resolve the double counting between

the iron ore and steelmaking coal inputs into the steelmaking process,

BHP estimates the total steelmaking emissions in the processing of our

iron ore quantities in steelmaking. The contribution of our steelmaking

coal production and required third‑party steelmaking coal (i.e. as needed

to process our iron ore) to total steelmaking emissions is allocated based

on the global average mass input into the process to produce 1,000 kg of

crude sourced from the World Steel Association (WSA), fact sheet Steel

and raw material (2019). The steelmaking coal portion of the emission

factor is applied to emissions from the crude steel equivalent volume

produced from BHP’s steelmaking coal production. Emissions from

third‑party steelmaking coal necessary to process BHP’s iron ore

quantities not covered by our steelmaking coal are included in the

emissions allocated to iron ore.

– For GHG emissions from the processing of both copper concentrates

and copper cathodes, we apply industry‑wide average emission factors

sourced from recent studies conducted by the International Copper

Association (ICA) and the Copper Council.

– All copper cathode is assumed to be manufactured into semi‑fabricated

products and all copper concentrate is assumed to be manufactured

into semi‑fabricated products.

– GHGs included: CO

, CH

, N

Category 11: Use of sold products

This category includes GHG emissions from the end‑use consumption

by third parties of energy coal we produce. Emissions are estimated for

this category.

Emissions are estimated using the following inputs and assumptions:

– Production volumes are considered verified primary data as sourced

from the BHP Operational Review for the year.

– Emission factors are sourced from the NGER

Measurement Determination.

– GHGs included: CO

, CH

, N

All energy coal is assumed to be combusted and is assumed to be

bituminous (which has a mid‑range energy content among the three

sub‑categories of black coal, the others being sub‑bituminous coal and

anthracite) listed in the NGER Measurement Determination. The emission

factor may not accurately represent (geographically, technologically or

temporally) the actual emissions intensities of our customers’ facilities.

However, it is considered to be sufficiently representative of average

industry conditions as to provide a meaningful estimation.

Our energy coal is mostly produced at NSWEC. Additionally, we have

historically marketed a small portion of BMA products against energy coal

indexes. In FY2026, this portion was approximately 2.94 per cent, up from

2.36 per cent in FY2025. For purposes of enhancing the transparency and

accuracy of our Scope 3 emission reporting, for FY2026 we have once

again estimated the energy coal component of BMA production based on

the percentage of BMA product marketed as energy coal and associated

GHG emissions under this ‘Use of sold products’ category.

Category 15: Investments

This category includes BHP’s equity share of the Scopes 1 and 2 GHG

emissions for assets in which we hold an investment interest but over

which we do not have operational control.

We have worked with the relevant operators of each asset to obtain

operational GHG emissions data for the FY2026 reporting year where

possible. In cases where the most recent available information was based

on a different reporting period (e.g. calendar year), we have used the data

provided to estimate FY2026 emissions based on a review of operational

conditions and activities across the reporting periods.

Emissions are estimated using the following inputs and assumptions:

– Antamina provided data for FY2026, however data remains subject to

finalisation for the reporting year. GHGs included: CO

, CH

, N

– Samarco provided data for CY2025, which is used as a proxy for

the FY2026 reporting year. Data assured by third‑party provider.

GHGs included: CO

, CH

, N

O, HFC, PFC, HF

, NF

– SolGold provided data for FY2026 for the period up to the date

of its divestment in FY2026. Data assured by third‑party provider.

GHGs included: CO

, CH

, N

O, HFC, PCF, SF

, NF

– Filo Corp emissions have been assessed to be immaterial in FY2025

and FY2026, and are therefore not included in BHP’s reported Scope 3

GHG emissions inventory.

For prior year (restated) and performance year data, GHG emissions from

the Kelar Power Plant have been reclassified to Category 3: Fuel‑ and

energy‑related activities to accurately reflect the GHG emissions related

to the production of energy at the power plant that are not already included

in BHP’s operational GHG emissions.

Directors’ declaration on the

Sustainability Report

The Directors of BHP Group Ltd (Company) declare that, in the Directors’

opinion, the Company has taken reasonable steps to ensure that the

substantive provisions of the Sustainability Report for the financial year

ended 30 June 2026 are in accordance with the Corporations Act 2001

(Cth), including:

– section 296C (compliance with Australian Accounting Standard

AASB S2 Climate‑related Disclosures), and

– the disclosure of the matters included in section 296D (climate

statement disclosures)

This declaration is made in accordance with a resolution of the Board.

Ross McEwan

Chair

18 August 2026

Sustainability Report continued

Operating and Financial Review Additional InformationFinancial StatementsGovernanceSustainability Report

Ernst & Young (‘EY’, ‘we’) was engaged by BHP Group Limited (‘BHP’) to undertake a Review as defined by the International Auditing

Standards over Sustainability information reported in the BHP Annual Report 2026 (including the section titled ‘Sustainability Report’)

and the BHP ESG Standards and Databook 2026, including over the ICMM Sustainable Development Framework assurance

requirements (Subject Matters 1–4), and excluding Scopes 1 and 2 greenhouse gas (‘GHG’) emissions. We were also engaged

by BHP to undertake an Audit as defined by the International Auditing Standards over Scopes 1 and 2 GHG emissions in the BHP

Annual Report 2026 section ‘Sustainability Report’ and the ESG Standards and Databook 2026.

Review conclusion on Sustainability Report (excluding Scopes 1 and 2 GHG emissions)

We have conducted a review of the Sustainability Report, excluding Scope 1 and 2 greenhouse gas emissions.

The Sustainability Report comprises the climate statements for the year, notes to the climate statements, any statements required under subsection

296A(5) of the Corporations Act 2001 (Act) and the directors’ declaration for the year ended 30 June 2026 in accordance with Australian Standard on

Sustainability Assurance ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001 (ASSA

5010) issued by the Auditing and Assurance Standards Board (AUASB).

We have not become aware of any matter in the course of our review that makes us believe that the Sustainability Report does not comply

with Division 1 of Part 2M.3 of the Act and the Australian Sustainability Reporting Standard AASB S2 Climate-related Disclosures (‘AASB S2’).

Audit opinion on Scopes 1 and 2 GHG emissions

We have conducted an audit of the following information in the Sustainability Report and the ESG Standards and Databook for the year ended

30 June 2026 (the ‘Scopes 1 and 2 GHG emissions information’) in accordance with ASSA 5010:

Reasonable assurance scope

Criteria: Reporting requirement of AASB S2 Climate-related

Disclosures (AASB S2) (including related general disclosures

required by Appendix D) Location of disclosure

Scopes 1 and 2 GHG emissions Subparagraphs 29(a)(i)(1) to (2) and 29(a)(ii) to (v) Annual Report 2026 section ‘Sustainability

Report’ on pages 55 to 92 and the ESG

Standards and Databook 2026 tabs ‘GHG

targets and goals’ and ‘Energy and GHG‘.

The requirements of AASB S2 identified in the table above form the criteria relevant to the Scopes 1 and 2 GHG emissions information and apply

under Division 1 of Part 2M.3 of the Act.

In our opinion, the Scopes 1 and 2 GHG emissions information specified in the table above is prepared, in all material respects, in accordance with

the Corporations Act 2001, including:

a. Subsection 296A(2) (contents of climate statements); and

b. Section 296C (compliance with Australian Sustainability Reporting Standard S2 Climate-related Disclosures issued by the Australian Accounting

Standards Board and any Ministerial legislative instrument); and

c. Section 296D (climate statement disclosures).

Review conclusion on other sustainability information

We have conducted a review of the following information in the BHP Annual Report 2026 and BHP ESG Standards and Databook 2026 for the year ended

30 June 2026 (‘other sustainability information’) as listed in below.

Other sustainability information Subject Matter Criteria Location of disclosure

BHP’s qualitative disclosures in Sections ‘1 Safety’

and ‘9 Sustainability’ of the BHP Annual Report

2026 and BHP ESG Standards and Databook 2026

– Management’s own publicly disclosed criteria as

disclosed in the Annual Report and ESG Standards

and Databook 2026

Annual Report 2026 on pages 5, 42 to 54

BHP ESG Standards and Databook 2026

at bhp.com/ESGSD2026

BHP’s sustainability policies and standards

as disclosed in the ICMM tab in the BHP ESG

Standards and Databook 2026

– 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 ESG Standards and Databook 2026

tab ‘ICMM Performance Summary’

Supporting disclosures included online

at bhp.com/sustainability

BHP’s identification and reporting of its material

sustainability issues, risks and opportunities described

within Sections ‘1 Safety’ and ‘9 Sustainability’ of the

BHP Annual Report 2026, BHP ESG Standards and

Databook 2026 and on the BHP website

– ICMM Procedure Subject Matter 2 – Global

Reporting Initiative (GRI) Standards 2021 GRI 3:

Material Topics

Annual Report 2026 on page 43

BHP ESG Standards and Databook 2026

tab ‘GRI’ at bhp.com/ESGSD2026

Supporting disclosures included online at

bhp.com/sustainability/approach/materiality‑

assessment

BHP’s implementation of systems and

approaches to manage its material

sustainability risks and opportunities

– ICMM Procedure Subject Matter 3

Annual Report 2026 on pages 42 to 54

BHP ESG Standards and Databook 2026

at bhp.com/ESGSD2026

BHP’s reported performance of its material

sustainability issues, risks and opportunities in

Sections ‘1 Safety’ and ‘9 Sustainability’ of the

BHP Annual Report 2026 and the BHP ESG

Standards and Databook 2026

– ICMM Procedure Subject Matter 4

– Management’s own publicly disclosed criteria, as

informed by the GRI Topic Standards as disclosed

in the Annual Report and ESG Standards and

Databook 2026

– BHP’s Methodology for calculating Scopes 1, 2

and 3 GHG emissions as disclosed in BHP Annual

Report 2026, Sustainability Report. 7.6 Methodology

for calculating Scopes 1, 2 and 3 GHG emissions.

Annual Report 2026 on pages 42 to 54

BHP ESG Standards and Databook 2026

at bhp.com/ESGSD2026

Water stewardship reporting, at an aggregated

Group level, in the BHP Annual Report 2026 and

the BHP ESG Standards and Databook 2026

– ICMM Guidance and minimum disclosure

Standards: Water Reporting: Good practice

guide (2nd edition), 2021

Annual Report 2026 on pages 50 to 52

BHP ESG Standards and Databook 2026

at bhp.com/ESGSD2026

Independent auditor’s report to the members of BHP Group Limited

A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

Based on the procedures we have performed and the evidence we have

obtained, we have not become aware of any matter in the course of our

review that makes us believe that the other sustainability information listed

in the table above for the Group is not prepared, in all material respects,

in accordance with the criteria for the year ended 30 June 2026.

Basis for conclusions and opinion

Basis for conclusions

Our reviews have been conducted in accordance with Australian Standard

on Sustainability Assurance ASSA 5000 General Requirements for

Sustainability Assurance Engagements (ASSA 5000) issued by the

AUASB. Our reviews include obtaining limited assurance about whether

the Sustainability Report and the other sustainability information are free

from material misstatement.

Our conclusions are based on the procedures we have performed and the

evidence we have obtained in accordance with ASSA 5000. The procedures

in a review vary in nature and timing from, and are less in extent than for,

an audit. Consequently, the level of assurance obtained in a review is

substantially lower than the assurance that would have been obtained had an

audit been performed. See the Summary of the Work performed for our review

engagements section of our report.

Basis for opinion

Our audit has been conducted in accordance with ASSA 5000. Our audit

includes obtaining reasonable assurance that the Scopes 1 and 2 GHG

emissions information is free from material misstatement.

Basis for conclusions and opinion

Our review and audit of the Sustainability Report include obtaining limited

and reasonable assurance about whether the Sustainability Report is

presented fairly in accordance with AASB S2.

In applying the relevant criteria, we note that subsection 296C(1) of the

Act includes a requirement to comply with AASB S2. The Act may require

information to be included in the Sustainability Report in addition to the

information required by AASB S2 (for example, s296D(2B) and s1707C(2) of

the Act). Because the fair presentation requirement in AASB S2 only applies

to information in the Sustainability Report prepared in accordance with

AASB S2, the additional information is addressed for compliance with the Act

but is not evaluated against the ‘fair presentation’ requirement of AASB S2.

Our responsibilities under ASSA 5000 are further described in the

Auditor’s responsibilities section of our report.

We are independent of the Group in accordance with the auditor

independence requirements of the Act and the ethical requirements

of APES 110 Code of Ethics for Professional Accountants (including

Independence Standards) issued by the Accounting Professional & Ethical

Standards Board Limited (November 2018 incorporating all amendments

to June 2024) (the Code), that are relevant to reviews and audits of

public interest entities in Australia. We have also fulfilled our other ethical

responsibilities in accordance with these requirements and the Code.

Our firm applies Australian Standard on Quality Management 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 and

procedures regarding compliance with ethical requirements, professional

standards, and applicable legal and regulatory requirements.

We believe that the evidence we have obtained is sufficient and

appropriate to provide a basis for our conclusions and opinion.

Other information

The directors of BHP are responsible for the other information. The other

information comprises BHP Annual Report, including the Financial Report

and the Annual Report Operating and Financial Review Sections ‘1 Safety’

and ‘9 Sustainability’ and BHP ESG Standards and Databook, but does not

include the Sustainability Report and other sustainability information, and

our review and audit report thereon.

Our conclusion and opinion on the Sustainability Report, and our conclusion

on the other sustainability information, does not cover the other information

and we do not express any form of assurance conclusion thereon.

In connection with our review and audit of the Sustainability Report, and our

review of the other sustainability information, our responsibility is to read the

other information identified above and, in doing so, consider whether the

Independent auditor’s report to the members of BHP Group Limited continued

other information is materially inconsistent with the Sustainability Report

and the other sustainability information, or our knowledge obtained when

conducting the reviews and 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 for the Sustainability Report

and the other sustainability information

The Management and directors of the BHP are responsible for:

– The preparation of the Sustainability Report in accordance with the Act; and

– Designing, implementing and maintaining such internal control necessary to

enable the preparation of the Sustainability Report, in accordance with the

Act that is free from material misstatement, whether due to fraud or error.

Management of BHP are responsible for:

– The selection and development of suitable criteria for the other

sustainability information;

– The preparation of the other sustainability information in accordance

with the criteria; and

– Designing, implementing and maintaining such internal control

necessary to enable the preparation of the other sustainability

information, in accordance with the criteria that is free from material

misstatement, whether due to fraud or error.

Inherent limitations

As discussed in section 7 of the Sustainability Report, 7 Basis of

preparation, interpretation and GHG emissions calculation methodology,

climate‑related risk management is an emerging area, and often uses data

and methodologies that are developing and uncertain. The Sustainability

Report contains forward looking statements, including climate‑related

scenarios, targets, assumptions, climate projections, forecasts, statements

of future intentions and estimates and judgements that have not yet

occurred and may never occur. We do not provide assurance on the

achievability of this prospective information.

GHG emissions quantification is subject to significant measurement

uncertainty, which arises because of incomplete scientific knowledge

used to determine emissions factors and the values needed to combine

emissions of different gases. The comparability of sustainability information

between entities and over time may be affected by inconsistencies in the

methods to estimate or measure those emissions, due to different, but

acceptable, methods applied.

Auditor’s responsibilities

Our objectives are to:

– Plan and perform the reviews to obtain limited assurance about whether

the Sustainability Report information and the other sustainability

information, defined in the Review conclusions section of our report, is

free from material misstatement, whether due to fraud or error, and to

issue a review report that includes our conclusions.

– Plan and perform the audit to obtain reasonable assurance about

whether the Scopes 1 and 2 GHG emissions, defined in the Audit

opinion section of our report, is free from material misstatement,

whether due to fraud or error, and to issue an assurance report that

includes our opinion.

Misstatements can arise from fraud or error and are considered material

if, individually or in the aggregate, they could reasonably be expected to

influence decisions of users taken on the basis of the Sustainability Report

and the other sustainability information.

As part of our audit and review in accordance with ASSA 5000, we

exercise professional judgement and maintain professional scepticism

throughout the engagement. We also:

– For a review engagement:

– Perform risk assessment procedures, including obtaining an

understanding of internal control relevant to the engagement, to identify

and assess the risks of material misstatements, whether due to fraud

or error, at the disclosure level but not for the purpose of providing a

conclusion on the effectiveness of the entity’s internal control.

– Design and perform procedures responsive to assessed risks of

material misstatement at the disclosure level. 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.

A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

94 BHP Annual Report 2026

– For an audit engagement:

– Perform risk assessment procedures, including obtaining an

understanding of internal control relevant to the engagement, to identify

and assess the risks of material misstatements, whether due to fraud or

error, at the assertion level for the disclosures but not for the purpose of

providing a conclusion on the effectiveness of the entity’s internal control.

– Design and perform procedures responsive to assessed risks of

material misstatement at the assertion level for the disclosures. 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.

Summary of the work performed for our

review engagements

A review is a limited assurance engagement and involves performing

procedures to obtain evidence about the Sustainability Report information

and the other sustainability information. The nature, timing and extent of

procedures selected depend on professional judgement, including the

assessed risks of material misstatement at the disclosure level, whether

due to fraud or error.

The procedures we performed for the review of information within the

Sustainability Report included, but were not limited to:

– Considered the completeness of the Group’s assessment of

climate‑related risks and opportunities

– Conducted interviews with key personnel to understand the process for

collecting, collating and reporting the sustainability information during

the reporting period

– Read minutes of relevant committees to understand matters discussed

and decisions made with respect to climate‑related disclosures

– Assessed the appropriateness of the reporting boundaries applied

– Undertook analytical review procedures to support the reasonableness

of the Sustainability Report information

– Agreed the sustainability information disclosures made in the

Sustainability Report with the underlying records

– Evaluated the presentation and disclosure of the sustainability

information in the Sustainability Report against the requirements

of AASB S2

The procedures we performed for the review of the other sustainability

information included, but were not limited to:

– Conducted interviews with key personnel to understand the process for

collecting, collating and reporting the other sustainability information

during the reporting period

– Read minutes of relevant committees to understand matters discussed

and decisions made with respect to the other sustainability information

– Assessed the appropriateness of the reporting boundaries applied

– Undertook analytical review procedures to support the reasonableness

of the other sustainability information

– Agreed the other sustainability information disclosures made in the

report with the underlying records

– Evaluated the presentation and disclosure of the other sustainability

information against the requirements of the criteria

Ernst & Young

Rodney Piltz

Partner

Melbourne, Australia

18 August 2026

Meg Fricke

Partner

Melbourne, Australia

18 August 2026

A member firm of Ernst & Young Global Limited

Liability limited by a scheme approved under Professional Standards Legislation

Operating and Financial Review Additional InformationFinancial StatementsGovernanceSustainability Report

2 FY2026 corporate governance highlights

CEO succession

A key activity completed by the Board during FY2026 was the Chief

Executive Officer (CEO) succession and transition process. The Board

approved the appointment of Brandon Craig as CEO and a Director

of BHP effective from 1 July 2026. Brandon succeeded Mike Henry,

who stepped down after six and a half years in the role. The Board

recognises the outstanding contribution of Mike Henry to BHP as CEO.

BHP Board update

The Board welcomed Mark Vassella as a new Non‑executive

Director on 1 June 2026. Mark has over 40 years’ experience,

including deep operational experience in the resources industry

and a strategic approach to commodity and skills development.

Mandatory climate reporting

BHP has released its inaugural Sustainability Report in accordance

with the Australian Corporations Act 2001 sustainability reporting

regime. This is the next phase in climate‑related disclosures

following on from our second Climate Transition Action Plan

published in August 2024. The Sustainability Report provides

disclosure of our identified climate‑related risks and opportunity and

an update on our progress in relation to our climate‑related targets

and goals and decarbonisation strategy.

Gender representation

We continue to maintain a gender balanced global workforce,

Executive Leadership Team and Board. Women comprised 41.5

per cent of our global employee workforce as at the end of FY2026.

We define gender balance as a minimum 40 per cent women and

40 per cent men, in line with the definitions used by entities such as

the International Labour Organization.

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 CEO and the accountability of the CEO for that

authority, and provides guidance on the management of the relationship

between the Board and the CEO. The Board Governance Document is

reviewed by the Board annually and was reviewed in FY2026.

The matters reserved for the Board as set out in the revised Board

Governance Document include:

– 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

Corporate Governance Statement

1 Corporate governance at BHP

Good corporate governance underpins

the way we conduct business.

BHP’s corporate governance framework supports the delivery of our

strategy and long‑term value creation for shareholders.

This Corporate Governance Statement sets out the corporate governance

framework currently in place for the Group, including the key policies

and practices.

BHP was fully compliant with the Recommendations of the fourth edition

of the ASX Corporate Governance Council’s Corporate Governance

Principles and Recommendations (ASX Fourth Edition) throughout

FY2026. The ASX Fourth Edition is available at asx.com.au.

BHP is also subject to governance requirements from our London Stock

Exchange (LSE) and New York Stock Exchange (NYSE) listings and our

registration with the Securities and Exchange Commission (SEC) in the

United States. As BHP has its primary listing on the ASX, which is an

approved exchange in terms of the Johannesburg Stock Exchange (JSE)

Listings Requirements, the JSE Listings Requirements provide that BHP

does not need to comply with the corporate governance requirements of

the JSE and is instead required to comply with the corporate governance

provisions of its primary exchange. As stated above, BHP is in compliance

with the corporate governance requirements of the ASX.

This Corporate Governance Statement is current as at 18 August 2026

and has been approved by the Board.

More information on our corporate governance framework and

practices is available at bhp.com/governance, which includes links to

our Appendix 4G and each of the publicly available documents referenced

in this Corporate Governance Statement

Shareholders

Risk and Audit Committee

Nomination and Governance Committee

People and Remuneration Committee

Sustainability Committee

Board

Chief Executive

Officer

Executive Leadership

Team

Our People

96 BHP Annual Report 2026

– 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

Committees

The Board has established Committees to assist it in exercising

its authority, including monitoring the performance of BHP, to gain

assurance that progress is being made towards our purpose within

the limits delegated by the Board. There are four standing Committees:

the Nomination and Governance Committee, Risk and Audit Committee,

Sustainability Committee and People and Remuneration Committee.

Each Committee is delegated authority by the Board under its Charter.

These Charters are available at bhp.com/governance

For more information on each of the Committees refer to section 5

Chair

The Chair of the Board is responsible for leading the Board and ensuring

it operates to high governance standards. In particular, the Chair

facilitates constructive Board relations and the effective contribution

of all Non‑executive Directors. The Chair must be an independent

Non‑executive Director.

Senior Independent Director

The Senior Independent Director is appointed by the Board and steps

in as Chair if needed. The Senior Independent Director serves as a

sounding board for the Chair and meets with key shareholders to develop

an understanding of their issues and concerns. In FY2025, the Chair

appointment was conducted through a formal Chair succession process

led by the Senior Independent Director, Gary Goldberg.

Group Company Secretary

The Group Company Secretary is accountable to the Board and

advises the Chair, the Board and individual Directors on all matters

of governance process.

Chief Executive Officer

The CEO is accountable to the Board for the authority that is delegated to

the CEO and for the performance of the Group. The CEO, with support of

their direct reports, is responsible for the day‑to‑day management of the

Group. The CEO works in a constructive partnership with the Board and

is required to report regularly to the Board on progress.

Access to management

The Board has access to members of senior management who frequently

attend Board and Committee meetings. Management makes presentations

and engages in discussions with Directors, answers questions

and provides input and perspective on their areas of responsibility.

The Board also engages with members of management at site visits.

The Board also holds discussions in the absence of management

as required.

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governance

Corporate Governance Statement continued

4 Board composition and succession

4.1 Board of Directors and Company Secretary

The Board currently has 10 members. The Directors’ qualifications, experience and special responsibilities are listed below.

Committee Chair

Committee member

Risk and Audit

Nomination and Governance

People and Remuneration

Sustainability

Key to Committee membership

Gary

Goldberg

Bachelor of Science

(Mining Engineering), MBA

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).

Appointment

Independent Non‑executive Director since March 2022

Skills and experience

Michelle Hinchliffe has over 20 years’ experience as a

partner in KPMG’s financial services division.

Michelle was formerly a partner of KPMG and held a

number of roles, including as the UK Chair of Audit, a

member of the KPMG UK Executive Committee, and led

KPMG’s financial services practice in Australia and was

a member of the KPMG Australia Board.

Michelle has expertise and experience in understanding

the complexities of multi‑national firms operating in multiple

reporting and regulatory frameworks across Europe, the

Americas, Asia and Africa. Her financial expertise and audit

experience across a range of industries and businesses,

including in Australia, bring insights to the Board on BHP’s

assessment of risk, returns and its long‑term capital plan to

create financial strength and support BHP’s future growth.

Current appointments

Michelle is a Non‑executive Director of

Santander UK Group Holdings Plc and various

subsidiaries (since June 2023) and Macquarie Group

Limited and Macquarie Bank Limited (since March 2022).

Michelle

Hinchliffe

Bachelor of Commerce,

FCA, ACA

Ross

McEwan

Bachelor of Business

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).

Xiaoqun

Clever-Steg

Diploma in Computer Science

and International Marketing, MBA

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).

Brandon

Craig

Bachelor of Science

Engineering (Mechanical), MBL

Appointment

Executive Director and Chief Executive Officer

since 1 July 2026

President Americas to 30 June 2026

Skills and experience

Brandon Craig has over 25 years’ experience in the mining

industry, spanning operational and corporate leadership

roles at BHP across a diverse portfolio of commodities

and geographies. Brandon joined BHP in 1999 and was

appointed Chief Executive Officer from 1 July 2026.

Brandon brings deep operational and commercial

expertise, with a strategic focus on advancing BHP’s high

quality growth options – particularly in copper and potash

– in line with the Company’s long‑term strategy and its

role in supporting global economic growth, electrification

and food security. Brandon is committed to fostering

a safe, high‑performance culture and an inclusive

workplace where people are empowered at every level

through the BHP Operating System.

Most recently, Brandon was President Americas and was

responsible for BHP’s growth strategy and performance

in future‑facing commodities across Canada, the United

States and South America. Prior to this, as Asset

President of BHP’s Western Australia Iron Ore business,

Brandon strengthened operational performance across

the integrated system of mines, rail and port operations

and increased BHP’s lead as the lowest cost, highest

margin major iron ore producer in the world.

Brandon is committed to building constructive relationships

through engagement with governments, Indigenous

partners, community stakeholders and business partners

in the jurisdictions where BHP operates to deliver mutual

benefit and long‑term value for shareholders.

98 BHP Annual Report 2026

Don

Lindsay

Bachelor of Science (Hons),

MBA

Appointment

Independent Non‑executive Director since May 2024

Skills and experience

Don Lindsay has more than 40 years’ global

experience, including in mining and resource development,

financial markets, transformational leadership, growth

and value creation.

Don was the President and Chief Executive Officer of

Teck Resources Limited (from 2005 to 2022) and prior

to that, worked for almost 20 years with CIBC World

Markets Inc., where he served as President, Head of

Investment and Corporate Banking and Head of the Asia

Pacific Region. Don also served as Chair of the Board of

Governors for Mining and Metals for the World Economic

Forum, Chair of the Business Council of Canada, Chair of

the International Council on Mining and Metals and Chair

of the Invictus Games Vancouver‑Whistler 2025 (from

November 2022 to July 2025).

Don brings extensive experience in global resource

development as well as sustainability, community health,

safety and global education and business forums.

His technical and management experience across a

range of commodities and mining jurisdictions brings

a unique understanding of prospective resources, cost

of development and operations, and the assessment

of opportunities to strengthen the portfolio of

world‑class assets.

Current appointments

Don is Chair of the Board of Manulife Financial

Corporation (since February 2023) and Trans Mountain

Corporation (since February 2026).

Christine

O’Reilly

Bachelor of Business

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).

Catherine

Tanna

Bachelor of Laws, Honorary

Doctor of Business

Appointment

Independent Non‑executive Director since April 2022

Skills and experience

Catherine Tanna has more than 30 years’ experience

in the resources, oil and gas, power generation and

retailing sectors.

Catherine was formerly Managing Director of Energy

Australia between 2014 and 2021. Prior to this, she held

senior executive roles with Shell and BG Group with

responsibility for international operations across Africa,

North Asia, Russia, North America, Latin America and

Australia. Catherine was also a member of the Board of

the Reserve Bank of Australia (from 2011 to 2021), the

Advisory Board of Fujitsu Australia (from February 2022

to April 2025) and a Director of the Business Council of

Australia (from 2016 to 2021).

Catherine has a track record in leading cultural change and

sponsoring gender equity, diversity and inclusion across

business and more broadly. She brings an understanding

of and contribution to complex regulatory and policy

environments. Catherine’s experience in seeking to

align customer and community expectations, particularly

Indigenous communities, with those of the enterprise and

regulators, provides unique insight and input to the Board.

Current appointments

Catherine is a Non‑executive Director of Bechtel

Corporation (since May 2023) and Tennis Australia

(since December 2025), Chair of Bechtel Australia

(since December 2023) and Senior Advisor at McKinsey

& Company Inc (since April 2022).

Dion

Weisler

Bachelor of Applied Science

(Computing), Honorary Doctor

of Laws

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.

Mark

Vassella

Bachelor of Commerce, MBA

Appointment

Independent Non‑executive Director since June 2026

Skills and experience

Mark Vassella has over 40 years’ experience in the

global steel industry and materials value chain.

Mark was the Chief Executive Officer and Managing

Director of BlueScope Steel Limited from January 2018

to January 2026 which included global operations across

Australia, New Zealand, North America and Asia.

Mark started in the steel industry as a cadet at BHP

Newcastle in NSW in the early 1980s. He has held

various general manager, leadership and global

executive roles in Australia, the United Kingdom and the

United States. He was also a member of the World Steel

Association Board.

Mark is recognised for expertise running large‑scale

industrial operations within the resources and materials

value chain, and his leadership in building constructive

relationships with governments, Indigenous partners,

community stakeholders and business partners.

He brings a strong focus on safety, decarbonisation

and capital allocation discipline.

Current appointments

Nil.

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report 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 has reviewed and considers all current Non‑executive

Directors, including the Chair, to be independent of management and free

of any interest, position or relationship that might influence, or reasonably

be perceived to influence, in a material respect their capacity to bring an

independent judgement to bear on issues before the Board and to act

in the best interests of BHP as a whole rather than in the interests of an

individual security holder or other party.

A determination of independence is carried out upon a Director’s

appointment and re‑election, annually, and when any new interests,

positions or relationships are disclosed by a Director. Where Directors

hold, or have previously held, positions in companies that have commercial

relationships with BHP, the Board assesses those relationships and their

relevance to Director independence.

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.

As part of this process, Mark Vassella was appointed to the Board as

a Non‑executive Director from 1 June 2026, following the retirement of

Ken MacKenzie from the Board in March 2025.

Before the Board formally appoints a person or puts a person forward

for election, the Board, with the assistance of external consultants, will

conduct appropriate background and reference checks as to that person’s

character, experience, education and criminal and bankruptcy history.

The Board has adopted a letter of appointment that contains the

terms on which Non‑executive Directors will be appointed, including the

basis upon which they will be indemnified by the Group. The letter of

appointment defines the role of Directors, including the expectations

in terms of independence, participation, time commitment and

continuous improvement. Written agreements are in place for

all Non‑executive Directors.

CEO transition

The Board announced on 18 March 2026 that Brandon Craig would be

appointed as CEO and a Director of BHP Group Limited on 1 July 2026.

Mike Henry ceased as CEO and a Director on 30 June 2026, after six and

a half years in the role.

The appointment of Brandon as CEO followed a formal CEO succession

process by the Board. The succession planning process for the CEO and

the direct reports to the CEO is the responsibility of the Board. The role of

the Nomination and Governance Committee is to support the Board in its

decision‑making by periodically reviewing the CEO succession process

and undertaking tasks or activities to prepare for a succession event.

4.4 Director induction, training and development

Upon appointment, each new Non‑executive Director undertakes an

induction program tailored to their needs. Non‑executive Directors

also undertake an induction program when they join a new Committee,

which is tailored to the areas specific to that Committee’s role and the

Director’s previous experience. The Chair also undertakes an induction

program when they are appointed as Chair of the Board.

Following the induction program, Non‑executive Directors participate in

continuous improvement activities through a training and development

program, which is overseen by the Nomination and Governance

Committee to help Directors, individually and collectively, develop and

maintain the skills and knowledge to assist them in performing their role

effectively. The training and development program is periodically reviewed

to maximise effectiveness and to tailor the program to the Directors’ needs

and the Board’s areas of focus.

Throughout the year, the Chair discusses development areas with each

Director. Board Committees review and agree their needs for more briefings.

The benefit of this approach is that induction and learning opportunities

can be tailored to Directors’ Committee memberships, as well as the

Board’s specific areas of focus. This approach is also intended to ensure a

coordinated process for succession planning, Board renewal, training and

development and Committee composition. In turn, these processes are

relevant to the Nomination and Governance Committee’s role in identifying

appropriate Non‑executive Director candidates.

Examples of activities in the training and development program include:

– 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 (risks 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

100 BHP Annual Report 2026

Attributes and commitment to role

All Directors are expected to comply with Our Code of Conduct,

act with integrity, lead by example and promote the desired culture.

The Board believes each Non‑executive Director has demonstrated the

attributes of sufficient time to undertake the responsibilities of the role,

honesty and integrity, and a preparedness to question, challenge and

critique throughout the year through their participation in Board meetings,

and the other activities they have undertaken in their roles.

Skills matrix

The Board, supported by the Nomination and Governance Committee,

reviews the skills and diversity represented by the Directors on the Board

and determines whether the composition and mix of those skills remains

appropriate to achieve BHP’s purpose and strategy.

The Board maintains a skills matrix that identifies the skills and experience

the Board needs for the next period of BHP’s development, considering

BHP’s circumstances and the changing external environment.

The Board skills matrix identifies the future‑facing skills the Board intends

to build, acquire and retain over the medium term in anticipation of its

needs as it pursues its strategy of securing growth options in future‑facing

commodities. The Board skills matrix not only indicates the skills and

expertise the Board currently possesses but also provides an illustration of

the new skills the Board intends to acquire. An external service provider is

engaged to assess the skills and experience of the Directors on the Board

for the purposes of the skills matrix. The provider objectively assesses the

competency and experience of each Director. Where a Director is assessed

as having a high level of experience or competency for a particular category,

they are included in the skills matrix for that category.

For more information on Board oversight of climate‑related risks and

opportunities refer to Sustainability Report, section 6

For FY2026, the matrix has been updated to reflect changes to the Board’s

composition. The current mix of skills represented by the Board as at

18 August 2026 is set out in the following matrix.

The Board collectively possesses all the skills and experience set out in

the skills matrix, and each Director satisfies the Board requirements and

attributes discussed in this section.

4.6 Diversity

BHP has adopted an Inclusion and Diversity Position Statement,

which sets out our diversity policy and our priorities to accelerate the

delivery of a more inclusive work environment and to enhance overall

workplace diversity.

BHP’s Inclusion and Diversity Position Statement is available

at bhp.com/careers/inclusion‑diversity

During FY2026, we continued to maintain gender balance within our

employee workforce globally. We define gender balance as a minimum

40 per cent women and 40 per cent men, in line with the definitions

used by entities such as the International Labour Organization. As at

the end of FY2026, BHP’s employee workforce is gender balanced with

41.5 per cent of women.

For more information on our approach to equitable pay refer to OFR 9.4

The Board is responsible for approving the measurable objectives for

achieving diversity in the composition of the Board, senior executives

and workforce generally and assessing the Group’s progress in achieving

those measurable objectives, which are set out below. The Nomination

and Governance Committee reviews and makes recommendations to the

Board on the diversity and measurable objectives for achieving diversity in

the composition of the Board and reviews the progress in achieving those

measurable objectives.

Skills and attributes

High level of

experience/competency

Mining

Senior executive who has deep operating or technical mining experience

with a large company operating in multiple countries; successfully optimised

and led a suite of large, global, complex operating assets that have delivered

consistent and sustaining levels of high performance (related to cost, returns

and throughput); successfully led exploration projects with proven results

and performance; delivered large capital projects that have been successful

in terms of performance and returns; and a proven record in terms of health,

safety and environmental performance and results.

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.

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.

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.

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.

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.

Technology

Recent experience and expertise with the development, selection,

and implementation of leading and business transforming technology

and innovation and responding to digital disruption.

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.

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.

Sustainability and decarbonisation transition

Understanding of and experience with the identification and

management of risks and opportunities related to sustainability

and decarbonisation transition.

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.

101

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governance

Corporate Governance Statement continued

Measurable objective for FY2026

Performance in FY2025

Progress in FY2026

Achieve year‑on‑year improvement of women in leadership roles in Minerals Australia

operations, measured by 3 per cent uplift of women in people leadership roles 29.0 32.5

Maintain gender balance on the Board and the ELT (with gender balance defined

as a minimum 40 per cent women and 40 per cent men) 52.6 47.4

Achieve 9.3 per cent Indigenous employee representation in Minerals Australia operations 8.96 9.3

Maintain 10 per cent Indigenous employee representation at Minerals Americas

operations in Chile 10.48 11.7

For more information on our focus areas for diversity during FY2026 and the

respective proportions of men and women on the Board, in senior executive

positions and across the employee workforce refer to OFR 9.4

More diversity data is available in the BHP ESG Standards

and Databook 2026 available at bhp.com/ESGSD2026

The Board’s composition reflects gender balance and a diversity

of experience, education and geographic background.

As at 30 June 2026, 40 per cent of Directors are female and the BHP

Board satisfies the target in the UK Listing Rules of having at least

40 per cent female Directors and the guidance of having at least

30 per cent of Directors of each gender in accordance with the ASX

Fourth Edition. BHP also satisfies the UK Listing Rule target of having

at least one Director from a minority ethnic background on the Board.

Tenure

40%

30%

0–3 years

3–6 years

6–9 years

Region of nationality

10%

30%

60%

30%

Australia/NZ

Europe/UK

North America

Gender diversity

Female

Male

60%

40%

Board tenure and diversity

1. As at 30 June 2026.

BHP does not currently satisfy the UK Listing Rule target that at least

one of the senior positions on the Board (which for BHP is the Chair,

Chief Executive Officer and Senior Independent Director) is held by

a woman. The UK Listing Rule target also includes the Chief Financial

Officer in the category of a senior position on the Board. Vandita Pant was

appointed as Chief Financial Officer in March 2024, but, in common with

Australian listed company practice, the Chief Financial Officer is not a

Director on the Board of BHP. As part of its succession planning, the Board

reviews the skills and experience (including gender, age, personal strengths

and social and ethnic backgrounds) represented by Directors on the Board

and determines whether the composition and mix of those skills and diversity

remains appropriate to achieve BHP’s purpose and strategy.

The tables in Additional information 7 set out the information required under

the UK Listing Rules on diversity as at 30 June 2026. The data presented in

these tables was collected by requesting all members of the Board, ELT and

Group Company Secretary self‑report in questionnaires that include the tables

prescribed by the UK Listing Rules.

4.7 Board evaluation

The Board is committed to transparency in assessing the performance

of Directors. The Board conducts regular evaluations of its performance,

the performance of its Committees, the Group Chair, Directors and the

governance processes that support the Board’s work.

The evaluation considers the balance of skills, experience, independence

and knowledge of the Group on the Board, its diversity and culture, and

the operation of governance processes.

In FY2026, an internal evaluation was conducted with the assistance

of external service provider, Lintstock. In FY2027, an external Board

evaluation is expected to be conducted.

Review of individual Director performance

The Board has adopted a policy for all Non‑executive Directors to seek

re‑election annually. The Board uses the results of Director performance

evaluations in considering whether to nominate a Director for election or

re‑election by shareholders. In FY2026, an assessment was conducted

of each Director’s performance prior to their nomination for re‑election

with the assistance of external service provider, Lintstock. Lintstock does

not have any other connection with the Group or individual Directors.

The assessment of Directors focused on the contribution of each Director to

the work of the Board and its Committees, and the expectations of Directors

as set out in BHP’s governance framework. In addition, the assessment

focused on how each Director contributes to Board cohesion and effective

relationships with fellow Directors, commits the time required to fulfil their

role and effectively performs their responsibilities. Directors were asked to

comment on areas where their fellow Directors contribute the greatest value

and potential areas for development.

Lintstock provided feedback it received to the Chair, which was then

discussed with Directors. Feedback relating to the Chair was discussed

with the Chair by the Senior Independent Director. As a result of these

outcomes, the review supported the Board’s decision to recommend each

Director standing for re‑election.

Committee assessments

Following an assessment of its work, each Committee concluded that

it had met the requirements under its Charter in FY2026.

102 BHP Annual Report 2026

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 FY2026.

The Charters are available at bhp.com/governance

BHP’s Board and Committee governance structure facilitates a considered

and integrated approach to key matters. Directors are kept informed

through Board papers, management updates, risk reports, training

and presentations.

For more information on BHP’s governance with respect to climate

refer to Sustainability Report 6 Governance

The Board appoints the members and Chair of each Committee.

Only independent Non‑executive Directors can be Committee Chairs.

The members and key roles and responsibilities of each Committee are

set out below.

For Committee attendance and members during FY2026 refer to

Directors’ Report 2

5.1 Nomination and Governance Committee

Members

Ross McEwan (Chair), Gary Goldberg, Michelle Hinchliffe,

Christine O’Reilly, Catherine Tanna

Key responsibilities/role and focus:

The role of the Nomination and Governance Committee is to support the

Board in relation to governance and nomination matters.

The Committee oversees the Group’s corporate governance framework

and practices, succession planning and processes, Board and Director

performance evaluation, Director training and development, and advises

and makes recommendations to the Board on the Group’s existing

corporate governance policies, structures or practices.

The Committee also supports the Board with sustainability‑related matters

that encompass issues that affect the whole of the Group, including areas

of strategy, risk and reporting, people and remuneration by reviewing and

recommending to the Board for approval the Group’s:

– 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,

Christine O’Reilly

Key responsibilities/role and focus:

The role of the Risk and Audit Committee is to support and advise the

Board in relation to financial reporting, external and internal audit, capital

management and risk management. The Committee also oversees and

assists the Board in reviewing the emerging and principal risks facing

the Group, including financial and non‑financial risks that could threaten

the Group’s business model, future performance, solvency, liquidity

or reputation (including cyber risk and climate risk).

US committee membership requirements

The Board is satisfied that Michelle Hinchliffe, who serves as Chair on the

Risk and Audit Committee, meets the financial expert requirements under

the US SEC and is independent under applicable NYSE rules. The Board

is also satisfied that the Committee meets the independence criteria under

Rule 10A‑3 of the Exchange Act.

5.3 Sustainability Committee

Members

Catherine Tanna (Chair), Gary Goldberg, Don Lindsay,

Mark Vassella (from 1 June 2026), Dion Weisler

Key responsibilities/role and focus:

The role of the Sustainability Committee is to support and advise the Board

on sustainability matters.

The Committee oversees the Group’s health, safety, environment, climate

and community performance, including implementation of the Group’s

strategy, policies and processes in relation to these matters.

The Committee also reviews and advises the Board on the adequacy of the

Group’s governance of health, safety, environment, climate and community

matters, including consideration of emerging areas of risk related to the

Group’s operations and its engagement with customers, suppliers and

communities, such as safety, water, biodiversity, security, cultural heritage

and human rights.

5.4 People and Remuneration Committee

Members

Christine O’Reilly (Chair), Catherine Tanna,

Mark Vassella (from 1 June 2026), Dion Weisler

Key responsibilities/role and focus:

The role of the People and Remuneration Committee is to support and

advise the Board on people and remuneration matters.

The Committee oversees the Group’s key strategies and policies relating

to people, including for attraction, recruitment, motivation and retention,

employee engagement, leadership and talent development, industrial

relations and employee conduct, and monitors the effectiveness of the

Group’s people and culture strategy and its alignment with the Group’s

purpose and values.

The Committee oversees and monitors the remuneration framework and

practices, including the adoption of incentive plans, levels of reward for the

CEO and other ELT members and any major changes in employee benefits

structures in the Group.

For information on BHP’s remuneration practices and policies,

including on hedging BHP shares and equity instruments, refer

to the Remuneration Report

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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

Corporate Governance Statement continued

Edgar Basto

Chief Operating Officer

(BSc, Metallurgy)

Edgar Basto joined BHP in 1989 and was appointed

Chief Operating Officer in October 2022. Edgar is

responsible for Group Health, Safety and Security, the

BHP Operating System (BOS) and global Performance

and Improvement. Edgar’s accountability also includes

Copper South Australia and its long‑term growth

pathway. Edgar has previously held senior roles at BHP,

including President Minerals Australia, Asset President

of Western Australia Iron Ore and Asset President

Escondida (Chile).

Caroline Cox

Chief Legal,

Governance and

External Affairs Officer

(BA (Hons), MA, LLB, BCL)

Caroline Cox joined BHP in 2014 and was appointed

Chief Legal, Governance and External Affairs Officer

in November 2020. Caroline is responsible for Legal,

Governance, Ethics Compliance, Global Corporate Affairs

and Communications and Sustainability. Caroline has

previously held senior roles at BHP, including Vice

President Legal, Group General Counsel, and Group

General Counsel & Company Secretary. Prior to joining

BHP, Caroline was a Partner at Herbert Smith Freehills

in Australia and a lawyer at various law firms and

courts in Canada.

Jessica Farrell

President North America

and interim President

South America

(BCom, BSocSc)

Jessica Farrell joined BHP in 2019 and was appointed

President North America, effective 1 July 2026, with

interim accountability as President South America.

Jess is responsible for BHP’s copper operations in

Chile, joint venture interests in the Americas including

the Vicuña joint venture, potash project and operations

in Canada, and BHP’s Innovation and Ventures

portfolio. Jess has previously held senior roles at BHP

including Vice President Innovation and Asset President

Western Australia Nickel. Jess has more than 20 years’

experience in the global resources industry across a

range of commodities and jurisdictions, including senior

operational and commercial roles at Rio Tinto.

Vandita Pant

Chief Financial Officer

(BCom (Hons), MBA)

Vandita Pant joined BHP in 2016 and was appointed

Chief Financial Officer effective 1 March 2024.

Vandita is responsible for overseeing the Group’s

Reporting, Tax, Treasury, Investor Relations, Financial

Planning, Risk, Insurance and Internal Audit teams.

Vandita has previously held senior roles at BHP,

including as Chief Commercial Officer from July

2019 to 29 February 2024, Group Treasurer and

Head of Europe. Prior to joining BHP, Vandita had

more than 20 years’ experience in executive banking

roles across India, Singapore, Japan and the United

Kingdom. Vandita brings strong global financial market,

commodity, strategy, capital allocation and business

development experience to the role.

Catherine Raw

Chief Development

Officer

(MA (Cantab.), Natural

Sciences, MSc, Mineral

Project Appraisal, CFA)

Catherine Raw joined BHP on 29 April 2024 as

Chief Development Officer. Catherine is responsible

for global Group strategy, decision evaluation and

capital planning, corporate business development and

mergers and acquisitions. Prior to joining BHP, Catherine

held senior roles in resources and finance industries,

including at SSE Thermal (a business unit of SSE plc)

as Managing Director, Barrick Gold Corporation as

Chief Operating Officer for North America and as Chief

Financial Officer, and BlackRock as Managing Director,

Natural Resources Team.

Geraldine

Slattery

President Australia

(BSc, Physics, MSc,

International Management)

Geraldine Slattery joined BHP in 1994 and was

appointed President Australia in October 2022 with

accountability for operational performance and growth

projects across BHP’s Australian Iron Ore, Nickel and

Coal assets in Western Australia, Queensland and New

South Wales. Geraldine has previously held senior roles

at BHP, including President Petroleum from 2019 to 2022

through the demerger of that business. Geraldine has

over 30 years’ experience with BHP across its global

operations, with roles in engineering, operations,

commercial and business leadership in jurisdictions

across the Americas, UK, Australia, Caribbean

and North Africa.

Ragnar Udd

Chief Commercial

Officer

(BAppSc (Mining

Engineering), MEng, MBA)

Rag Udd joined BHP in 1997 and was appointed

Chief Commercial Officer effective 1 March 2024.

Rag has global accountability for Sales and Marketing,

Procurement, Maritime, Group Business Services as

well as developing BHP’s views on global commodities

markets and macro trends. Rag has over 25 years’

experience in the global resources industry, including

in Australia, Asia and North and South America.

He has held senior roles at BHP in operations, logistics,

projects and technology, including President Americas

from November 2020 to February 2024 and Acting

Chief Technology Officer and Asset President of BHP

Mitsubishi Alliance.

Johan van

Jaarsveld

Chief Technical Officer

(BEng (Chem), MCom,

Applied Finance, PhD (Eng),

Extractive Metallurgy)

Johan van Jaarsveld joined BHP in 2016 and

was appointed Chief Technical Officer effective

1 March 2024. Johan is responsible for Technology,

Digital, Minerals Exploration, Value Engineering and

the Centres of Excellence for Projects, Maintenance

and Engineering and Resources. Johan has previously

held senior executive roles at BHP, including Chief

Development Officer from September 2020 to

29 April 2024. Prior to joining BHP, Johan held

executive positions in resources and finance, including

at Barrick Gold Corporation, Goldman Sachs and

The Blackstone Group.

Jad Vodopija

Chief People Officer

(BA, PGDip (Industrial

Relations and Human

Resource Management),

MComm)

Jad Vodopija rejoined BHP in 2019 and was appointed

Chief People Officer in July 2022. Jad is responsible

for organisational strategy, talent and resource

management, leadership development and workforce

performance. Jad has previously held senior roles at

BHP, including Vice President, Human Resources.

Prior to rejoining BHP, Jad was Vice President

Human Resources at Orica from 2016, before which

she had built her career at BHP and earlier on at

Ford Motor Company.

104 BHP Annual Report 2026

6.2 Senior management succession

A senior management succession process is conducted to support

pipeline stability for critical roles. A talent deep dive is conducted by

the Board at least once a year to evaluate these pipelines.

The People and Remuneration Committee oversees the Group’s

key strategies and policies for leadership and talent development

and senior management succession and considers the readiness

of successors across time horizons, contexts and future capability

demands. Select Board members are involved in the interview process for

executive‑level appointments one level below the CEO and occasionally for

roles two levels below the CEO. Appropriate checks are undertaken before

appointing a member of the ELT. BHP has a written agreement with each

ELT member setting out the terms of their appointment.

In June 2026, BHP announced the following changes to the ELT:

Jess Farrell was appointed as President North America and interim

President South America effective 1 July 2026, and from 1 September

2026, Edgar Basto will be Chief Enterprise Performance Officer.

In this new capacity, Edgar will remain accountable for BHP’s Health

Safety and Security and the BHP Operating System and in addition,

will be accountable for strengthening contractor safety and further

embedding operating discipline and performance across the enterprise.

Geraldine Slattery will continue as President Australia and will assume

responsibility for Copper South Australia, bringing all of the Australian

operating assets together under her leadership.

6.3 Performance evaluation of executives

The performance of executives and other senior employees is reviewed

on an annual basis. The annual performance review process considers

the performance of executives against criteria designed to capture

‘what’ is achieved and ‘how’ it is achieved. All performance assessments

of executives include how effective they have been in undertaking

their role and what they have achieved against their specified key

performance indicators.

A performance evaluation was conducted for all members of the

ELT during FY2026. For Mike Henry the CEO during FY2026, the

performance evaluation was led by the Chair of the Board on behalf

of all the Non‑executive Directors and was discussed with the People

and Remuneration Committee and considered by the Board.

7 Shareholders and reporting

7.1 Shareholder and stakeholder engagement

BHP shareholder engagement practices

BHP engages regularly with its shareholders to understand their views and

feedback and we have an investor relations program to provide avenues for

effective and timely two‑way communication with investors.

We encourage shareholders to make their views known to us.

Shareholders can contact us at any time through our Investor Relations

team, with contact details available at bhp.com/investors. In addition,

shareholders can receive communications from and send communications

to us and our registrar electronically.

Key activities in BHP’s investor engagement program include:

– 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 BHP’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

BHP communicates information to shareholders and other stakeholders

through various forums and publications.

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Stakeholder engagement

Site visits

Directors visit several of our sites and offices each year. These site

visits provide an opportunity for Directors to engage directly with

our workforce, partners, community members, Indigenous and First

Nations representatives, customers and contractors. The objective of

the site visits is to provide Directors with local context and to deepen

their understanding of the Group’s operations, culture, material risks

and risk management processes, and other issues relevant to the

specific site. Site visits in FY2026 included New South Wales Energy

Coal (August 2025), Western Australia Iron Ore (October 2025), Jansen

(November 2025), and customer and third‑party site visits (April and

June 2026). In FY2026 Directors also visited NOJV sites Samarco

(July 2025) and Vicuña (March 2026). The site visits also form an

important part of the induction program for new Directors.

Workforce

Directors also have the opportunity to engage directly with

a cross‑section of our workforce at Board and Committee meetings,

at Director briefing sessions and during visits to our sites and

offices. These formal and informal engagements can help to give the

Board further insights into our operations and projects and enable

discussions with our workforce on matters such as BOS, culture,

risk management and continuous improvement at our assets and

offices. The engagements also give our people the opportunity

to better understand the Board and to provide direct feedback

to Directors on topics that are important to them.

Communities and Indigenous engagement

Directors have the opportunity to meet with Traditional Owners,

Indigenous partners and community representatives during visits to

our sites, at Director briefing sessions and at events hosted by the

Board and Chair.

Following our inaugural assessment of the health of our relationships

with a range of our Indigenous partners in Australia, Canada and Chile

in FY2024, the results of our next assessment will be included in the

FY2027 Annual Report.

The Chair and CEO met with the First Nations Heritage Protection

Alliance (FNHPA) in CY2026 to discuss key cultural heritage and

Indigenous engagement focus areas and initiatives for BHP and FNHPA.

Customers

We regularly meet with customers through direct engagements and

via business and industry forums.

We engage with customers to discuss the products they need to meet

their specific requirements and help accelerate their sustainability goals

and commitments.

In April 2026, the Board participated in a customer site visit. The site

visit provided an opportunity for the Board to discuss our business

with customers.

Presentations and briefings

Presentation materials for briefings and speeches related to financial

results, strategy and other key topics are available for all stakeholders

at bhp.com/investors/presentations‑and‑briefings. In FY2026, this

included ESG Roundtable, BMO Global Metals, Mining & Critical

Minerals Conference, Macquarie Australia 2026 Conference and

Bank of America Global Metals, Mining and Steel Conference 2026.

Events

Various events are hosted throughout the year, such as a retail

shareholder event in the UK, the AGM, one‑on‑one meetings and

receptions hosted by the Board and Chair to provide opportunities

for the Board to engage with a range of partners and stakeholders,

including government officials, customers, community members and

Traditional Owners and other Indigenous partners.

Stakeholder engagement

The Board considers effective stakeholder engagement a key element

of its governance and oversight role. Our strategy, 2030 goals, purpose

and Risk Appetite Statements reflect the significance of external partners

and stakeholders in decision‑making.

There are multiple ways the views of partners and stakeholders, beyond

shareholders, are brought to the Board and its Committees.

Examples of reports that are provided to the Board include Employee

Perception Survey findings, gender pay gap reports and updates from the

CEO and Chief People Officer. In addition, the Risk and Audit Committee

and Sustainability Committee receive reports on engagement with

regulators. The Risk and Audit Committee receives reports on material

litigation and disputes with third parties and misconduct concerns raised

through confidential reporting platforms. The Sustainability Committee

receives updates on Community Perception Survey findings.

7.2 Market disclosure

BHP is committed to timely and balanced disclosure of market

sensitive information.

BHP’s Market Disclosure and Communications policy sets out the

processes designed to ensure compliance with BHP’s relevant disclosure

obligations and outlines the way in which information is communicated

to shareholders, the investment community and the market. It outlines

how we identify and distribute information to shareholders and market

participants and sets out the role of the Disclosure Committee in managing

compliance with market disclosure obligations. The Board receives copies

of material market announcements promptly after they have been made.

Where BHP gives a new and substantive investor or analyst presentation,

we release a copy of the presentation materials to the market ahead

of the presentation.

The Market Disclosure and Communications Policy is available

at bhp.com/governance

In addition, we have disclosure controls in place for periodic disclosures,

including our Operational Review, results announcements, debt investor

documents and Annual Report documents, which must comply with

relevant regulatory requirements.

For more information on these verification processes refer to

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.

Our Code of Conduct includes our policies on speaking up and anti‑bribery

and corruption, sets out standards of behaviour for our people and is an

important statement of the culture at BHP.

For more information on our policies on speaking up (including as set out in

the BHP Whistleblower Policy) which can be accessed through Our Code

of Conduct and our commitment against corruption refer to OFR 9.6

Our Code of Conduct is available at bhp.com/about/operating‑ethically/

our‑code

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,

Corporate Governance Statement continued

106 BHP Annual Report 2026

line leader or appropriate team for resolution. All significant Our Code of

Conduct matters and key trends from investigations are reported to the

Risk and Audit Committee. These are then reported to the Board as part

of its report‑out process.

For more information on ethics and business conduct refer to OFR 9.6

More information on ethics and business conduct is available

at bhp.com/ethics

9 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 6 and OFR 9

Internal audit

The Internal Audit team provides assurance to the Board, CEO and ELT on

whether risk management, internal control and governance processes are

adequate and functioning. The Internal Audit team is independent of the

External Auditor. The RAC evaluates and, if thought fit, approves the Terms

of Reference of the Internal Audit team, annual internal audit plan and the

annual performance objectives for the Internal Audit team in accordance

with the internationally recognised requirements of The Institute of Internal

Auditors’ Global Internal Audit Standards and monitors the effectiveness of

the internal audit activities.

The RAC approves the appointment and dismissal of the Chief Audit Officer

(which is currently the Chief Risk and Audit Officer) and assesses their

performance, independence and objectivity. During FY2026, the Chief Risk

and Audit Officer reported directly to the RAC and functional oversight of the

Internal Audit team was provided by the Chief Financial Officer.

Effectiveness of systems of internal control and

risk management

In delegating authority to the CEO, the Board has established CEO

limits, outlined in the Board Governance Document. These limits require

the CEO to ensure there is a system of control in place for identifying

and managing risk in BHP. Through the RAC, the Directors regularly

review these systems for their effectiveness. These reviews include

assessing whether processes continue to meet evolving external

governance requirements.

The RAC oversees and reviews the internal controls and risk management

systems (including procedures, processes and systems for, among

other things, financial controls, financial reporting, reporting of reserves

and resources, closure and rehabilitation, legal and ethical compliance,

preventing fraud and serious breaches of business conduct, speak‑up

procedures, information technology security and cyber risk). Any material

breaches of Our Code of Conduct, including breaches of our anti‑bribery

and corruption requirements and any material incidents reported under

our speak‑up procedures are reported quarterly to the RAC by the Chief

Ethics, Compliance and Human Rights Officer. These reports are available

to all Directors and material matters are also communicated to the Board.

During FY2026, management presented an assessment of the material

risks facing BHP and the effectiveness of the Group’s systems of risk

management. The reviews were overseen by the RAC, with material

findings and recommendations reported to the Board. In addition to

considering key risks facing BHP, the Board assessed the effectiveness

of internal controls over key risks identified through the work of the

Board Committees.

Having carried out a review during FY2026, the Board is satisfied with

the effectiveness of BHP’s risk management and internal control systems.

Environmental and social risks

BHP’s risk factors (including material exposure to environmental and

social risks) and how we manage these risks are described in OFR 6.

9.2 External audit and financial reporting

Integrity of Financial Statements

The RAC assists the Board in assuring the integrity of the Financial

Statements. The RAC evaluates and makes recommendations to the

Board about the appropriateness of accounting policies and practices,

areas of judgement, compliance with accounting standards, stock

exchange and legal requirements and the results of the external audit.

CEO and CFO assurance

For the FY2026 full year and half year, the CEO and CFO have provided

a declaration that in their opinion, BHP’s financial records have been

properly maintained and those Financial Statements comply with

accounting standards and applicable regulatory requirements and give

a true and fair view of the financial position and performance of BHP,

and that the opinion was formed on the basis of a sound system of risk

management and internal control, which is operating effectively. The RAC

considered these declarations when recommending the Financial

Statements to the Board for approval.

External Auditor

The RAC manages the relationship with the External Auditor on behalf

of the Board. It considers the independence and reappointment of the

External Auditor each year, as well as remuneration and other terms

of engagement and makes a recommendation to the Board.

Evaluation of External Auditor and external audit process

The RAC evaluates the objectivity and independence of the External

Auditor and the quality and effectiveness of the external audit

arrangements, including through:

– 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.

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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 2026 pursuant to paragraph (c)(7)(i)(C) of Rule 2‑01 of SEC

Regulation S‑X (provision of services other than audit).

Fees paid to BHP’s External Auditor during FY2026 for audit and other

services were US$15.441 million, of which 72 per cent comprised audit

fees (including in relation to Sarbanes‑Oxley Act of 2002 (SOX) matters),

12 per cent for audit‑related fees and 16 per cent for all other fees. No fees

were paid in relation to tax services. For information on the fees paid refer

to Financial Statements note 34 ‘Auditor’s remuneration’.

The Provision of Audit and Other Services by the External Auditor

policy is available at bhp.com/governance

Management’s assessment of internal control over

financial reporting

Management is responsible for establishing and maintaining adequate

internal control over financial reporting (as defined in Rule 13a–15(f)

and Rule 15d–15(f) under the Exchange Act).

Because of its inherent limitations, internal control over financial reporting

may not prevent or detect misstatements and, even when determined to be

effective, can only provide reasonable assurance with respect to financial

statement preparation and presentation. Projections of any evaluation

of effectiveness to future periods are subject to the risk that controls may

become inadequate because of changes in conditions, or the degree

of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of our management,

including our CEO and CFO, the effectiveness of BHP’s internal control

over financial reporting was evaluated based on the framework and criteria

established in Internal Control – Integrated Framework (2013), issued by

the Committee of Sponsoring Organizations of the Treadway Commission.

Based on this evaluation, management concluded that internal control

over financial reporting was effective as at 30 June 2026. There were no

material weaknesses in BHP’s internal controls over financial reporting

identified by management as at 30 June 2026.

BHP has engaged independent registered public accounting firm,

Ernst & Young (EY), to issue an audit report on the effectiveness of our

internal control over financial reporting for inclusion in the Annual Report

on Form 20‑F as filed with the SEC. There were no changes in our internal

control over financial reporting during FY2026 that materially affected or

were reasonably likely to materially affect our internal control over financial

reporting. During FY2026, the RAC reviewed our compliance with the

obligations imposed by SOX, including evaluating and documenting

internal controls as required by section 404 of SOX.

Management’s assessment of disclosure controls

and procedures

Management, with the participation of our CEO and CFO, performed an

evaluation of the effectiveness of the design and operation of our disclosure

controls and procedures as at 30 June 2026. Disclosure controls and

procedures are designed to provide reasonable assurance that the material

financial and non‑financial information required to be disclosed by BHP,

including in the reports it files or submits under the Exchange Act, is recorded,

processed, summarised and reported on a timely basis. This information

is accumulated and communicated to BHP’s management, including our

CEO and CFO, as appropriate, to allow timely decisions regarding required

disclosure. Based on the evaluation, management (including the CEO

and CFO) concluded that as at 30 June 2026, our disclosure controls and

procedures are effective in providing that reasonable assurance.

There are inherent limitations to the effectiveness of any system of

disclosure controls and procedures, including the possibility of human

error and the circumvention or overriding of the controls and procedures.

Even effective disclosure controls and procedures can only provide

reasonable assurance of achieving their control objectives.

In the design and evaluation of our disclosure controls and procedures,

management was required to apply its judgement in evaluating the

cost‑benefit relationship of possible controls and procedures.

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 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 is available at bhp.com/governance

Corporate Governance Statement continued

108 BHP Annual Report 2026

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 FY2026, the results of those

operations during FY2026, the expected results of those operations in

future financial years and information on our financial position are set out

in the OFR 1–7 and 9. Information on the likely developments in BHP’s

operations in future years and the expected results of those operations

also appears in that section.

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 FY2026, are outlined in OFR 1–4.

There were no significant changes in BHP’s state of affairs that

occurred during FY2026 and no significant post balance date events

other than as disclosed in the OFR and Financial Statements note 33

‘Subsequent events’.

No other matter or circumstance has arisen since the end of FY2026 that

has significantly affected or is expected to significantly affect the operations,

the results of operations or state of affairs of BHP in future years.

2 Directors

The Directors who served at any time during FY2026 or up until

the date of this Directors’ Report are listed in the Board and Board

Committee attendance table below. Information on the current Directors,

including their terms of service, qualifications, experience and special

responsibilities, and directorships of other listed companies held in

the last three years, is set out in the Corporate Governance Statement 4.1.

This information is incorporated by reference into and forms part of this

Directors’ Report.

Director attendances at meetings

The Board meets as often as required. During FY2026, the Board

met 13 times.

Members of the Executive Leadership Team and other members

of senior management attend meetings of the Board by invitation.

Each Board Committee provides a standing invitation for any

Non‑executive Director to attend Committee meetings (rather than just

limiting attendance to Committee members). Committee agendas and

papers are provided to all Directors concerning matters to be considered.

The table below excludes the attendance of Directors at Committee

meetings where they were not a Committee member.

Board and Board Committee attendance in FY2026

Board

Risk and Audit

Committee

Nomination and

Governance

Committee

People and

Remuneration

Committee

Sustainability

Committee

Attended Held

Xiaoqun Clever‑Steg 13 13 8 8

Gary Goldberg 13 13 4 4 5 5

Mike Henry

12 13

Michelle Hinchliffe 13 13 8 8 4 4

Don Lindsay 13 13 8 8 5 5

Ross McEwan 13 13 8 8 4 4 4 4

Christine O’Reilly 13 13 8 8 4 4 4 4

Catherine Tanna 12 13 3 4 4 4 5 5

Mark Vassella

1 1 1 1 1 1

Dion Weisler 12 13 4 4 5 5

1. The number of meetings held during the time the Director was a member of the Board or relevant Committee.

2. Mike Henry served as an Executive Director from 1 January 2020 and Chief Executive Officer from 1 January 2020 until 30 June 2026. Brandon Craig succeeded Mike Henry as Chief Executive

Officer from 1 July 2026 and became an Executive Director from 1 July 2026. Accordingly, Brandon Craig did not attend any meetings in FY2026 in his capacity as an Executive Director.

3. Mark Vassella was appointed as a Non‑executive Director and a member of the People and Remuneration and Sustainability Committees from 1 June 2026.

Directors’ Report

109

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report 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 2026, except

for Mark Vassella who joined the Board on 1 June 2026. Brandon Craig

became an Executive Director on 1 July 2026. No rights or options

over shares in BHP Group Limited are held by any of the Non‑executive

Directors. We have not made available to any Directors any interest in a

registered scheme. No shareholder possesses voting rights that differ

from those attaching to all of BHP Group Limited’s voting securities.

Director

Number

of shares held

Brandon Craig

47,8 39

Xiaoqun Clever‑Steg 10,000

Gary Goldberg 24,000

Mike Henry

556,394

Michelle Hinchliffe 12,330

Don Lindsay 10,000

Ross McEwan 45,000

Christine O’Reilly 10,620

Catherine Tanna 10,400

Mark Vassella 4,825

Dion Weisler 11,494

1. The number of shares held refers to shares held either directly, indirectly or beneficially by

Directors as at 18 August 2026. Where applicable, the information includes shares held

in the name of a spouse, superannuation fund, nominee and/or other controlled entities.

Each person listed in this table beneficially owns less than one per cent of BHP Group

Limited’s ordinary shares.

2. Brandon Craig commenced as an Executive Director on 1 July 2026. As at 18 August

2026, Brandon Craig also holds 254,116 rights and options over shares in BHP Group

Limited. For more information refer to the Equity awards section in the Remuneration

Report. For more information on Director minimum shareholding requirements see the

Non‑executive Directors fees section of the Remuneration Report.

3. Mike Henry stepped down as an Executive Director on 30 June 2026. As at

18 August 2026, Mike Henry also holds 983,614 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 2026 are set out in the

tables contained in the Equity awards section in the Remuneration Report.

The table below sets out the relevant interests in shares in BHP Group

Limited held directly, indirectly or beneficially, as at 30 June 2026 by those

senior executives who were Executive KMP (other than the Executive

Director) on that date.

Executive KMP member

Number

of shares held

Brandon Craig

47,8 39

Vandita Pant 250,935

Geraldine Slattery 276,999

1. The number of shares held refers to shares held either directly, indirectly or beneficially

as at 18 August 2026. Where applicable, the information includes shares held in the

name of a spouse, superannuation fund, nominee and/or other controlled entities.

2. As at 30 June 2026, Brandon Craig held the position of President Americas and

commenced as Chief Executive Officer and Executive Director from 1 July 2026.

4 Share capital and buy‑back programs

During FY2026, we did not make any on‑market or off‑market purchases of

BHP Group Limited ordinary shares under any share buy‑back program. As at

the date of this Directors’ Report, there were no current on‑market buy‑backs.

Some of our executives receive rights over BHP shares as part of their

remuneration arrangements. Entitlements may be satisfied by the transfer

of existing shares, which are acquired on‑market by the Employee Share

Ownership Plan Trusts or, in respect of some entitlements, by the issue

of shares. During FY2026, no shares were purchased on‑market for the

Employee Share Ownership Plan Trusts.

As at the date of this Directors’ Report, there were 17,562,722 unvested

equity awards outstanding in relation to BHP Group Limited ordinary shares

held by 26,609 holders. The expiry dates of these unvested equity awards

range between August 2026 and August 2030 and there is no exercise price.

5,399,471 fully paid ordinary shares in BHP Group Limited were issued as

a result of the exercise of rights over unissued shares during or since the

end of FY2026. No options over unissued shares or unissued interests in

BHP have been granted during or since the end of FY2026 and no shares

or interests were issued as a result of the exercise of an option over unissued

shares or interests during or since the end of FY2026.

For more information refer to Financial Statements note 26 ‘Employee

share ownership plans’. For information on movements in share capital

during and since the end of FY2026 refer to Financial Statements

note 17 ‘Share capital’

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$11,707,974 excluding taxes during FY2026.

No indemnity in favour of a current or former Officer of BHP Group Limited

or in favour of the External Auditor was called on during FY2026.

Directors’ Report continued

110 BHP Annual Report 2026

7 Dividends

A final dividend of 99 US cents per share will be paid on 23 September 2026,

resulting in total cash dividends determined in respect of FY2026 of

172 US cents per share.

For information on the dividends paid refer to Financial Statements note

19 ‘Dividends’

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 4, OFR 7 and Additional information 6

11 ASIC Instrument 2026/183

BHP Group Limited is an entity to which the Australian Securities and

Investments Commission (ASIC) Corporations (Rounding in Financial/

Directors’ Reports) Instrument 2026/183 applies. Amounts in this

Directors’ Report and the Financial Statements, except estimates of future

expenditure or where otherwise indicated, have been rounded to the

nearest million dollars in accordance with ASIC Instrument 2026/183.

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 1, OFR 9.5 and OFR 9.9

For the purposes of section 299(1)(f) of the Australian Corporations Act 2001,

in FY2026 BHP was levied 6 fines in relation to environmental laws and

regulations at our operated assets, the total amount payable being US$45,115.

14 Additional information

The Group, through various subsidiaries, has established branches

in a number of other countries.

The Directors’ Report is approved in accordance with a resolution

of the Board.

Ross McEwan

Chair

Dated: 18 August 2026

Brandon Craig

Chief Executive Officer

111

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governance

Dear Shareholders,

I am pleased to present BHP’s Remuneration Report for FY2026.

Strong performance in FY2026

We had strong operational and financial results in FY2026. Importantly,

we did so safely. During the reporting period, we were fatality free and

our key safety measures improved.

Those achievements have, however, been overshadowed by the recent

loss of a contracting colleague following a workplace incident in July 2026.

We are determined to learn from this tragic incident and eliminate fatalities

and serious injuries at BHP.

Our operational performance generated significant cash flow in FY2026.

We have determined a final dividend totalling US$5.0 billion. This brings total

cash returns to shareholders announced for the year to US$8.7 billion, which

is US$1.72 per share fully franked, the highest in four years. Including this

dividend, we will have returned more than US$115 billion to shareholders

over the past ten years.

FY2026 was also a significant year for BHP’s leadership, with the

Board announcing the appointment of Brandon Craig as Chief

Executive Officer (CEO) and Director of BHP Group Limited,

effective 1 July 2026. Brandon succeeded Mike Henry, who stepped

down as CEO on 30 June 2026 after six and a half years in the role.

Executive Leadership Team changes have been announced to ensure

the right mix of skills, experience and perspectives to deliver BHP’s

strategy, pursue our growth agenda and manage relationships in each

region. From 1 July 2026, the President Americas role has been split into

President North America and President South America, which will allow

a greater focus on each of these regions.

Remuneration outcomes in FY2026

Our remuneration framework is structured to support BHP’s strategy while

fostering a culture that reflects Our Values, our purpose and performance

expectations. It is also designed to link executive remuneration with

shareholder value creation, through a combination of fixed remuneration,

the Cash and Deferred Plan (CDP) and Long Term Incentive Plan (LTIP).

By delivering remuneration over multiple time horizons, the framework

encourages behaviours that reward the achievement of both near-term

strategic objectives and sustainable long-term performance outcomes.

The Board and the People and Remuneration Committee (Committee)

assessed the FY2026 CDP remuneration outcomes based on a balanced

scorecard that reflects BHP’s focus on safety and sustainability, including

climate, performance and financial measures, and Group and personal

strategic outcomes.

For the CEO (Mike Henry), the FY2026 CDP outcome was 118 per cent

against a target of 100 per cent, the outperformance awarded reflecting

the achievements of the year.

For safety and sustainability (S&S) measures, the CEO outcome was

31 per cent out of a target of 25 per cent. The FY2026 CDP scorecard

includes a 10 per cent measure for significant health, safety, environment

and community events and reflects a year where we had no fatalities

and significantly reduced injuries with fatal potential from FY2025.

The FY2026 CDP scorecard also includes a 10 per cent climate and

environment measure, and key elements reflected in the outcome

include our management of operational greenhouse gas (GHG) emissions,

commencement of proof-of-concept trials for battery-electric haul trucks at

WAIO’s Jimblebar site and trial milestones for battery-electric locomotives

at WAIO, and advancement of our climate adaptation work program.

For financial measures, the CEO outcome was 50 per cent out of a target

of 50 per cent. Underlying Return on Capital Employed (ROCE) is the

financial measure used that assesses our profitability and effective use

of capital. In FY2026, we produced approximately 2 Mt of copper for the

second consecutive year, WAIO achieved record iron ore production and

shipments and BMA delivered the highest stripping volumes in five years.

In FY2026, BHP’s share price performed very strongly increasing by

70 per cent in US$ terms.

For Group and personal measures, the CEO outcome was 37 per cent out

of a target of 25 per cent. These measures included people, performance

and portfolio projects and initiatives.

The FY2026 CDP outcomes for other Executive key management

personnel (KMP) were 118 per cent for the CFO, 115 per cent for the

President Americas and 115 per cent for the President Australia.

BHP’s LTIP seeks to reward sustained, long-term performance and

growth aligned with BHP’s values and shareholder value creation.

The five-year performance period for the 2021 LTIP Performance

Rights ended on 30 June 2026, and the vesting outcome was 40 per cent

for BHP based on BHP’s Total Shareholder Return (TSR) performance

of 80 per cent against the comparator groups.

An important aspect of the five-year CDP and LTIP awards is that before

vesting, the Committee undertakes a holistic review of performance over

the five-year performance period. This extra step reflects a long-term

outlook and ensures that performance and progress align with the

experience of our shareholders. The Committee considered BHP’s

performance on safety, sustainability (including climate), financial,

corporate governance and conduct over the five-year performance

period from 1 July 2021 to 30 June 2026. For example, on climate

change, we have made further progress on reducing our operational GHG

emissions over the five-year performance period, to support achievement

of our medium-term target by FY2030, and delivered a range of actions

towards the targets and goals we set out in our Climate Transition Action

Plan 2024. As a Committee we are satisfied the outcomes are fair and

reflect the shareholder experience during the period.

Looking ahead

We are a global company seeking to attract and retain the best talent

in a competitive market.

The Committee reviewed executive remuneration during FY2026. To

reflect ongoing performance and development, the Committee determined

an increase of 4 per cent for the Chief Financial Officer (CFO) and

6 per cent for the President Americas, effective 1 January 2026 and

6 per cent for the President Australia, effective 1 September 2026.

The CEO’s remuneration arrangements were announced in March 2026

and Brandon Craig’s remuneration from 1 July 2026 includes a base

salary of US$1,900,000 per annum, pension contributions of 10 per cent

of base salary, and CDP and LTIP opportunities consistent with our prior

CEO incentive arrangements.

For Non-executive Directors, a benchmarking assessment was undertaken

during FY2026 and identified that the base annual fees for the Chair and

Non-executive Directors were no longer aligned with market benchmarks

for comparable roles at relevant global peer companies. As a result, the

Board determined that the base annual fees for the Chair and Non-executive

Directors will increase by 10 per cent in FY2027. There is no change to fees

for other Committee roles or other allowances in FY2027.

Our people

We strive to offer an engaging and supportive workplace which

empowers our people to find safer and more productive ways of working.

We continue to maintain our long-term female representation aspirational

goal and achieved our Indigenous workforce participation targets for

FY2026. The efforts that have underpinned these achievements have

made BHP a safer, more productive and better performing business.

The Committee monitored culture through visits to BHP sites and offices

and discussions with management. We continue to support a performance

management framework that places a strong emphasis on how we deliver

results alongside what is achieved. This is critical to delivering the best

outcomes for BHP shareholders.

On behalf of the Committee, I thank shareholders for their continued

engagement and feedback on BHP’s remuneration approach.

Letter from the People and Remuneration Committee Chair

Christine O’Reilly

Chair, People and

Remuneration Committee

The abbreviations used in the following

pages are listed on page 126

112 BHP Annual Report 2026

Actual

Target

25% 50%

32%

25%

51% 33%

Actual

Target

25% 50%

31%

25%

50% 37%

BHP TSR outperformed the 50th

percentiles of the Sector Group by 6% and

the MSCI World Index by 28%

40%

LTIP vesting in FY2026

Actual:

FY2026 CEO MSR

Mike Henry

Policy requirement: 5x base salary

9.2X

base

salary

FY2026 CEO CDP outcome

Mike Henry

Average FY2026 other

Executive KMP CDP outcomes

Safety and sustainability

Financial

Group and personal

Remuneration outcomes

Remuneration Report

Key performance

80%

Total shareholder

return (5 Year)

26.1%

Return on capital

employed

172USc

Dividends per

share (USD)

Remuneration at a glance

Remuneration framework

Performance year FY2026 FY2027 FY2028 FY2029 FY2030 FY2031

Fixed remuneration

Base salary,

pension

contributions

and other

benefits

CDP

Split into Cash and

Deferred Rights

CDP

performance

period

Cash

paid

CDP Deferred Rights

(2 Year) vesting period

Vesting subject to service

condition

CDP Deferred Rights (5 Year) vesting period

Vesting subject to service condition and a holistic review of safety, sustainability, financials,

corporate governance and conduct performance at end of the vesting period

LTIP

Performance Rights

LTIP 5 Year performance period

Vesting subject to 1) TSR performance condition, 2) service condition and

3) a holistic review of BHP’s performance on safety, sustainability (including climate),

financial, corporate governance and conduct at the end of the vesting period.

MSR

BHP requires KMP to maintain a minimum shareholding requirement (MSR) to help align the interests of

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. The CEO is

subject to a two‑year post‑employment shareholding requirement determined based on the lower of the CEO’s

MSR or the CEO’s actual shareholding at the cessation of employment.

determined in respect

to FY2026

113

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governanc e

Our Key Management Personnel

This Remuneration Report sets out the remuneration of BHP’s KMP. These are our Directors (including the CEO) and certain members of our Executive

Leadership Team (ELT) who have authority and responsibility for planning, directing and controlling BHP’s activities, either directly or indirectly.

Throughout the Remuneration Report, KMP are referred to as either Non‑executive Directors or Executive KMP. BHP’s KMP for the reporting period were:

Non‑executive Directors Executive KMP

Name Term Name KMP position Term

Ross McEwan Full year Mike Henry Chief Executive Officer and 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

Mark Vassella Part year

Joined the Board 1 June 2026

Dion Weisler Full year

Changes to the CEO are outlined later in the Report (refer to ‘CEO transition’).

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.

How our

remuneration

framework

is set

Market

competitive

Supports

strategy delivery

Values aligned Rewards

outperformance

To attract, motivate

and retain highly

skilled executives

To ensure focus on

outcomes that deliver

on BHP’s strategy

and purpose

To be transparent and

foster a culture aligned to

BHP’s values, behaviours

and risk appetite

To drive long‑term

shareholder wealth

creation

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 FY2026.

Board

Oversees the remuneration structure for the Group (including the CEO).

Approves the remuneration framework for the Group Chair, the 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.

Remuneration Report continued

114 BHP Annual Report 2026

Overview of BHP’s remuneration framework

BHP provides Executive KMP with a mix of fixed and variable remuneration. There are three components of our Executive KMP remuneration framework:

(1) fixed remuneration, (2) Cash and Deferred Plan, and (3) Long Term Incentive Plan. BHP structures the delivery of remuneration across different time periods

to balance the achievement of near‑term strategic objectives with longer‑term drivers. The majority of remuneration delivered is ‘at risk’.

The Board and Committee apply overarching discretion to determine fair and commensurate remuneration that reflects the objectives of the remuneration

framework and takes into account shareholder expectations and market conditions.

Fixed remuneration Cash and Deferred Plan (CDP) Long Term Incentive Plan (LTIP)

What is it?

Fixed portion of remuneration

that is paid regularly throughout

the year.

The CDP is an annual cash and equity‑based

incentive scheme, providing remuneration

over the short, medium and longer term.

The LTIP is a long‑term incentive scheme

with awards vesting in five years, subject to

vesting conditions.

How is it

delivered?

Base salary.

Pension contributions

(10% base salary).

Other benefits

(notional 10% base salary).

One third of the CDP award is paid in cash.

The remaining two thirds of the CDP are

deferred into two equity awards (Deferred

Rights) of equal value over two and five

years to encourage retention and sustained

medium‑ and longer‑term performance.

The LTIP is delivered in Performance Rights,

subject to meeting vesting conditions over a

five‑year period.

What does it

reward and how

does it link with

strategy?

Competitive and appropriate

fixed remuneration is provided

to attract, motivate and retain

talented and experienced

global executives with the right

capability to deliver against

BHP’s strategic objectives.

Rewards the annual achievement of

strategic goals and outperformance,

encourages retention and aligns behaviours

towards Our Values.

Rewards sustained, long‑term performance

and growth aligned with shareholder value

creation and Our Values.

How does

it link to

performance?

Fixed remuneration reflects the

global scope and complexity of

the role and the location, skills,

performance, qualifications and

experience of the individual.

Fixed remuneration is reviewed

annually by the Committee

to ensure it remains aligned

to performance, significant

developments, changes in

accountabilities and/or external

market movements.

CDP award outcomes are annually

assessed against a balanced scorecard

of metrics linked to the execution of

business strategy:

– 25% Safety and sustainability

(including climate)

– 50% Financial

– 25% Group and personal measures

Under the LTIP, BHP’s performance is

assessed against the relative TSR of two

comparator groups over the five‑year period.

TSR provides a valuable comparative,

external market performance benchmark

and a direct link between Executive KMP

reward and shareholder returns.

Vesting of LTIP Performance Rights is subject

to specific hurdles outlined on page 116.

Vesting of both the CDP Deferred Rights (5 Year) and LTIP Performance Rights are subject

to a holistic review of performance at the end of the five‑year vesting periods, including a

review of BHP’s performance on safety, sustainability (including climate), financial, corporate

governance and conduct. This is an important feature of BHP’s remuneration framework that

supports delivery of longer‑term strategic priorities.

Remuneration mix

The overall potential total remuneration of the CEO and other Executive KMP is shown in the diagram below.

The maximum opportunity represented below is the most that could potentially be paid for each remuneration component. It does not reflect actual

awards granted by the Group. Actual remuneration received by the CEO and other Executive KMP depends on the outcomes of the CDP and LTIP

which are driven by the achievement of business and individual performance measures.

The target LTIP value reflects the fair value of the awards, being 50 per cent of the face value, which is 200 per cent of base salary for the CEO and

175 per cent of base salary for other Executive KMP. The maximum LTIP value is based on the face value. The value of CDP and LTIP awards excludes

the potential impact of future share price movements.

100%

100% Base salary | 10% Pension | notional 10% Benefits

17% 23%

17%17%

26%

80% base salary 80% base salary 80% base salary

100% base salary

17% 17% 17% 32%

17%

120% base salary 120% base salary 120% base salary 200% base salary

18% 18% 18%

18% 20%

18%18%

28%

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

Other Executive KMP % of total target remuneration

Fixed remuneration

CDP cash

CDP Deferred Rights 2 Year

LTIP Performance Rights

CDP Deferred Rights 5 Year

Minimum

Target

Maximum

Minimum

Target

Maximum

1. Fair value 2. Face value

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Key terms of our variable remuneration framework and equity plans for FY2026

The key terms of the FY2026 CDP and the 2026 LTIP are outlined below.

CDP LTIP

Description

CDP awards are split into three equal parts – a cash

component paid annually and two awards of equity vesting

in two and five years, subject to service conditions.

The LTIP is delivered in Performance Rights, which are

conditional rights to receive BHP shares subject to service

and performance conditions.

Performance period

and vesting period

The CDP performance period is one year and performance

is assessed against the CDP scorecard. The FY2026

CDP performance period was 1 July 2025 to 30 June 2026.

CDP cash is paid annually following the end of the

performance period.

FY2026 CDP Deferred Rights (2 Year) are rights

to receive BHP shares subject to a two‑year service

condition from 1 July 2026 to 30 June 2028.

FY2026 CDP Deferred Rights (5 Year) are rights

to receive BHP shares subject to a five‑year service

condition from 1 July 2026 to 30 June 2031 and a holistic

review of performance at the end of the vesting period

(outlined on page 117).

The LTIP performance period is five years. The 2026 LTIP

performance period is 1 July 2026 to 30 June 2031, with

vesting shortly after. The vesting conditions are:

– BHP’s relative TSR performance

– a service condition

– a holistic review of performance at the end of the vesting

period (outlined on page 117)

Opportunity

– For all Executive KMP the target is 80% of base salary

for each of the CDP cash component, CDP Deferred

Rights (2 Year) and CDP Deferred Rights (5 Year).

Total target in aggregate is 240% of base salary,

maximum opportunity is 360% and minimum potential

outcome is zero.

– The number of FY2026 CDP Deferred Rights for each

of the two tranches are determined by dividing the

overall CDP cash component outcome by the average

share price and US$/A$ exchange rate over the

12 months up to and including 30 June 2026.

– For the CEO the maximum is 200% of base salary.

– For other Executive KMP the maximum is 175% of

base salary.

– The minimum potential outcome is zero.

– The number of 2026 LTIP Performance Rights granted

to an Executive KMP is determined by dividing the

LTIP value by the average share price and US$/A$

exchange rate over the 12 months up to and including

30 June 2026.

Performance

conditions

and assessment

The CDP scorecard is formally assessed after the end of

the annual performance period. The Board approves the

CEO’s CDP award outcome and the Committee approves

CDP award outcomes for the other Executive KMP.

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 2026 LTIP Performance Rights will depend

on BHP’s TSR compared to the following benchmarks

over the performance period:

– 67% for relative TSR performance compared to the

MSCI World Metals and Mining Index constituents

(Sector Group TSR)

– 33% for relative TSR performance compared to the

MSCI World Index constituents (World TSR)

Details of the Sector Group TSR and World TSR indices

can be found here msci.com/our‑solutions/indexes

Vesting schedule:

No awards will vest if BHP’s TSR performance is below

the 50th percentile. Awards vest at 25% if they are equal

to the 50th percentile with vesting increasing on a sliding

scale between the 50th percentile to the 80th percentile.

Where performance reaches or exceeds the weighted

80th percentile (outperformance) awards vest at 100%.

TSR performance is assessed using a six‑month

averaging period. If the TSR performance condition is not

satisfied, no rights will vest and the award will lapse, with

no opportunity for retesting.

Paying competitively

BHP is a global company with operations and employees

around the world, including in Australia, Canada, Chile

and the United States.

For information on where we operate refer to OFR 2

BHP has a diverse and mobile workforce. We offer competitive and

equitable remuneration to attract, motivate and retain the talent we

need to deliver on our strategy.

To ensure our reward practices remain fit for purpose in a dynamic and

highly competitive talent market, we apply a disciplined and data‑driven

approach. This includes benchmarking our Executive KMP remuneration

against comparable positions in global companies of similar scale,

complexity and geographic reach with a focus on companies that

compete with BHP for leadership talent. We consider factors such

as role responsibilities, location, skills, qualifications and experience.

We also conduct regular performance reviews and apply rigorous

governance to ensure accountability and alignment with shareholder

and stakeholder expectations.

During FY2026, the Committee reviewed other Executive KMP remuneration

and determined an increase of 4 per cent for the CFO and 6 per cent for

the President Americas effective 1 January 2026, to reflect their ongoing

performance and development in their roles since their appointments in

early 2024. For FY2027, the Committee determined an increase of 6 per cent

for the President Australia effective 1 September 2026 to reflect ongoing

performance and an expanded role scope which now includes Copper

South Australia. Details of the incoming CEO’s (Brandon Craig) remuneration

arrangements for FY2027 are set out on page 121.

Remuneration Report continued

116 BHP Annual Report 2026

CDP LTIP

Vesting

Vesting of both awards of CDP Deferred Rights and LTIP Performance Rights are subject to continued employment with

BHP until the vesting date (dependent on the treatment on cessation of employment – see below). CDP Deferred Rights

(5 Year) and LTIP Performance Rights are also subject to a holistic review of performance at the end of the five‑year

vesting period (outlined below).

Executive KMP do not have an entitlement to receive dividends prior to vesting. Dividend Equivalent Payments are made

on vesting. The Committee retains discretion to settle CDP Deferred Rights and LTIP Performance Rights in cash.

Discretion

The Committee retains an overarching discretion to vest CDP or LTIP awards, including to lapse any portion or all of

CDP or LTIP awards where it considers the vesting outcome is not appropriate given Group or individual performance,

or other circumstances apply that make the vesting outcome an inappropriate outcome. This mitigates the risk of

unintended outcomes.

Holistic review

of performance

Vesting of both CDP Deferred Rights (5 Year) and LTIP Performance Rights are subject to a holistic review of performance

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)

– financial performance (including profitability, cash flow, balance sheet health, returns to shareholders)

– broader factors such as corporate governance and the Executive KMP’s conduct

Cessation

of employment

On cessation of employment for Executive KMP, unless the Board determines otherwise, the following treatment applies:

– Resignation or termination for cause: all unvested CDP cash awards, CDP Deferred Rights and LTIP Performance

Rights lapse.

– Death, serious injury, disability or illness: current year CDP cash awards will generally be pro‑rated based on

performance for that year. All unvested CDP Deferred Rights and LTIP Performance Rights vest.

– Other cessation circumstances (‘good leaver’): current year CDP cash and Deferred Rights (2 Year) awards will

generally be pro‑rated based on performance for that year and paid wholly in cash. The current year CDP Deferred

Rights (5 Year) component and current year LTIP Performance Rights will not be granted. For unvested awards granted

in previous financial years, CDP Deferred Rights (2 Year) will generally continue on foot and remain subject to their

original terms. A pro‑rated portion of unvested CDP Deferred Rights (5 Year) and LTIP Performance Rights will also

generally continue on foot, subject to the original terms of the relevant offer, with the remainder lapsing.

Malus and 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 of termination is required by either BHP or the CEO. For other

Executive KMP, six months’ notice of termination is required by BHP or

the relevant Executive KMP. Executive KMP can be terminated for cause

without notice. BHP may require an executive to work through the notice

period or make a payment in lieu of notice (including base salary plus

pension contributions).

Minimum Shareholding Requirements

BHP has minimum shareholding requirements (MSR) for the CEO and

Executive KMP, to promote long‑term share ownership and align their

interests with those of shareholders. They are expected to build and

maintain their MSR over time, primarily through the vesting of equity awards.

The CEO’s MSR is five times annual pre‑tax base salary. Other Executive

KMP’s MSR are three times annual pre‑tax base salary. For the CEO, a

two‑year post‑employment shareholding requirement applies from the date

of cessation of employment, which will be the lower of the CEO’s MSR or

the CEO’s actual shareholding at the date of cessation.

No Executive KMP sold or purchased shares during FY2026, other than

sales to satisfy tax obligations in connection with an employee equity

award. At the end of FY2026, the Executive KMP met their MSR, except

for Brandon Craig as he was appointed to the ELT and Executive KMP on

1 March 2024 and is continuing to grow his vested shareholding.

Prohibition on hedging of BHP shares

and equity instruments

KMP are prohibited from hedging unvested BHP securities or securities

held under the MSR. They are also prohibited from using unvested BHP

securities as collateral. Vested, unrestricted securities that are not held

under the MSR, may be subject to hedging arrangements or used as

collateral, provided prior consent is obtained from BHP.

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Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governanc e

Remuneration for Executive KMP

FY2026 CDP performance outcomes

The Board and the Committee assessed the Executive KMP’s CDP outcomes considering the Group’s performance in FY2026 and performance

against the measures in each Executive KMP CDP scorecard.

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)

The Board’s and the Committee’s assessment of the CEO’s (Mike Henry) performance against the CDP scorecard measures resulted in a FY2026

CDP outcome of 118 per cent against the target of 100 per cent (or 79 per cent against maximum).

The assessment of the CEO’s performance included consideration of the non‑cash impairment charge for the Jansen potash project and the Committee

considered that no further deduction was required as this matter had been addressed in the FY2025 CDP outcome.

Performance measure

Weighting

for FY2026

Performance outcome

CEO percentage

outcome Threshold 50% Target 100% Maximum 150%

Safety and sustainability 25%

31%

Financial 50%

50%

Group and personal 25%

37%

Total 100%

118%

FY2026 CDP performance outcomes – CEO measures

Mike Henry

Safety and sustainability

CDP scorecard targets Performance outcome

Elimination of significant harm (10%)

No significant (actual level 4) health, safety (including fatalities),

environment or community (HSEC) or cultural heritage events during the year.

High potential injury (HPI) frequency rate (HPI/million hours worked)

is equal to or less than 0.09.

Outcome: Maximum

– There were no fatalities or other significant (actual level 4) HSEC

or cultural heritage events during FY2026 at our operated assets.

– The FY2026 HPI frequency result for the Group was 0.07, achieving

a maximum outcome and reflecting improved safety performance

across the business.

Health and safety (5%)

Completion of FY2026 vehicle interaction control improvement plan

deliverables by operating assets.

Operating assets to undertake FY2026 baseline assessments for material

occupational exposures to inform FY2027 exposure reduction plans.

Outcome: Between target and maximum

– All operating assets delivered their FY2026 vehicle interaction

control improvement plans.

– FY2026 baseline assessments for material occupational

exposures were delivered by all operating assets except Copper

South Australia. All operating assets developed FY2027 material

occupational exposure reduction plans ready for implementation.

Climate and environment (10%)

FY2026 reported operational greenhouse gas (GHG) emissions are equal

to or below 9.5Mt Co2‑e.

Continue R9400 Digger trial and deliver proof of concept trial milestones

for battery‑electric haul trucks and locomotives at WAIO.

Deliver FY2026 actions in the climate adaptation work program.

Deliver 95% of FY2026 water stewardship priorities – including water quality

and context‑based water targets.

Develop a strategy for alternative pathways to diesel emissions reductions.

Document a Traditional Owner co‑design strategy for two projects from the

Healthy environment goal roadmap.

Outcome: Between threshold and target

– For FY2026, while asset‑level performance varied, Group‑level

performance was marginally (less than 1%) above the scorecard

target. Based on a review of actual production at certain operated

assets relative to budget, performance was approximately 1% above

the production‑adjusted budget, resulting in a threshold outcome.

– The operational decarbonisation trials and climate adaptation

work program actions were achieved.

– The water stewardship priorities, diesel emissions reductions

pathways and Healthy environment goal roadmap deliverables

were achieved.

– These achievements overall demonstrate continued progress

towards important aspects of BHP’s climate‑ and

environment‑related objectives.

The FY2026 S&S outcome for the CEO was 31% against the target of 25%.

Remuneration Report continued

118 BHP Annual Report 2026

Financial

CDP scorecard targets Performance outcome

ROCE (50%)

The target underlying return on capital employed (ROCE) was 14.9%, with a threshold

of 12.7% and maximum of 16.9%.

ROCE is an indicator of the Group’s capital efficiency to generate profit. It is

calculated as underlying profit after tax (excluding after tax finance costs and

exceptional items) divided by average capital employed.

When assessing ROCE for remuneration purposes, we adjust the outcome to remove

the impact of factors that are largely outside management’s control. These include

changes in commodity prices, foreign exchange movements and other material

items that differ from the assumptions used when targets were set. This ensures

the assessment focuses on management performance rather than external market

conditions. Historically, movements in commodity prices have been the most

significant adjustment due to their volatility and impact on revenue and ROCE.

When setting the ROCE target, the Committee considers the risks and opportunities across

BHP’s businesses and the level of performance shareholders would reasonably view as

strong. The threshold represents the minimum performance required for any reward, while

the maximum reflects stretch performance. The range below target is wider than above

target, reflecting greater downside risk due to physical and regulatory asset constraints.

In setting the maximum, the Committee also avoids incentives that could encourage

short‑term decision‑making beyond BHP’s risk appetite or operational capacity.

Outcome: Target

BHP reported FY2026 ROCE of 26.1%. After adjusting for the

factors outlined below, ROCE was 14.9%, which was at target.

The adjustments were made to ensure the outcomes appropriately

reflected management performance during the year:

– The full elimination of commodity prices and exchange rate

movements reduced ROCE by 9.6 percentage points.

– Adjustments for other items reduced ROCE by 1.6 percentage

points primarily to align the CDP ROCE outcome with the basis

used to set the FY2026 ROCE target. These included reversing the

impact of the Jansen project impairment and the Antamina Silver

Streaming arrangement on the Group’s balance sheet.

Following a review of the FY2026 exceptional items (refer to Financial

Statements note 3 ‘Exceptional items’), the Committee determined

that no further adjustments were required in calculating the FY2026

ROCE CDP outcome.

The FY2026 ROCE outcome for the CEO was 50% against the target of 50%.

Group and personal

CDP scorecard targets Performance outcome

People

Year‑on‑year reduction in HPI frequency.

Increase BHP Employee Perception Survey engagement score.

Outcome: Between target and maximum

– FY2026 HPI frequency reduced by 27% year‑on‑year to 0.07.

– Employee Perception Survey engagement score was

slightly below target.

Performance

Achieve an average BHP Operating System (BOS) Operational Excellence Index (OEI)

score of 50 across all operations.

Delivery of key Samarco outcomes.

Deliver the Digital Strategy targets.

Strengthen partnerships with Indigenous suppliers.

Outcome: Maximum

– BOS OEI target achieved, with an average score of 52 across

all operations.

– Progress made across key Samarco matters.

– Digital Strategy delivery above target.

– Strong progress made on multi‑year contracts with

Indigenous suppliers.

Portfolio

Limit capital growth across the major projects portfolio.

Minerals Americas and Copper South Australia growth projects

to deliver projected copper equivalent production.

Review and update BHP’s Capital Allocation Framework.

Outcome: Maximum

– Capital growth across the major projects portfolio remained

well within target.

– Good progress was made on copper growth pathways

across Minerals Americas and Copper South Australia.

– Update of BHP’s Capital Allocation Framework complete.

The FY2026 Group and personal outcome for the CEO was 37% against the target of 25%.

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2021 LTIP performance outcomes

The five‑year performance period for the 2021 LTIP Performance Rights

for relevant Executive KMP ended on 30 June 2026. Vesting is subject to

satisfaction of the service condition, the achievement of the relative TSR

performance conditions and a holistic review of performance at the end

of the five‑year vesting period.

Relative TSR is an appropriate performance condition for BHP’s LTIP as

it recognises that BHP rewards executives for shareholder returns over

a sustained period if those returns outperform both the broader global

market and the mining sector. Relative TSR includes returns to BHP

shareholders in the form of share price movements along with dividends

paid and reinvested in BHP (including cash and in‑specie dividends).

LTIP vesting is based on BHP’s relative TSR performance against the

Sector Group and World TSR comparator groups, weighted 67 per cent

and 33 per cent respectively. No vesting occurs unless BHP’s TSR

reaches at least the 50th percentile of these comparator groups, at which

point 25 per cent of the LTIP vests. Full vesting occurs where BHP’s TSR

is at or above the 80th percentile.

For the 2021 LTIP Performance Rights to vest in full, BHP’s TSR over

the five

‑year performance period from 1 July 2021 to 30 June 2026 was

required to be at or above the 80th percentile of the Sector Group and

World TSR comparator groups.

BHP’s relative TSR performance was 80 per cent over the 2021 LTIP

performance period. This outcome is:

– above the 50th percentile of the Sector Group TSR of 74 per cent, but

below the 80th percentile of the Sector Group TSR of 131 per cent

– above the 50th percentile of the World TSR of 52 per cent, but below

the 80th percentile of the World TSR of 120 per cent

This level of performance results in 40 per cent vesting for the 2021

LTIP Performance Rights. The value of the CEO’s (Mike Henry) vested

2021 LTIP Performance Rights is detailed in ‘FY2026 remuneration

received by the CEO’.

The graph below shows BHP’s performance relative to comparator groups.

Summary of FY2026 CDP performance

outcomes for other Executive KMP

The FY2026 CDP scorecard performance measures, weightings and

overall average outcomes for other Executive KMP are illustrated below.

The Committee assessed performance against these measures, each with

a target of 100 per cent. This resulted in overall FY2026 CDP outcomes of

118 per cent for the CFO (79 per cent against maximum), 115 per cent for

the President Americas (77 per cent against maximum) and 115 per cent

for the President Australia (77 per cent against maximum).

The Group and personal measures for other Executive KMP reflect

their contribution to the delivery of projects and initiatives within the

scope of their role and the overall performance of the Group. The FY2026

CDP target weightings and performance measures for the CFO (‘Other

Executive KMP without region responsibility’) are similar to those of

the CEO outlined on page 118. The target weightings and performance

measures for the President Americas and President Australia (‘Other

Executive KMP with region responsibility’) vary to reflect the focus

required on both Group and regional measures.

The assessment of the Executive KMPs’ performance included

consideration of the non‑cash impairment charge for the Jansen potash

project and the Committee considered that no further deduction was

required as this matter had been addressed in the FY2025 CDP outcome.

Summary of outcomes for other Executive KMP

Performance categories

Other Executive

KMP with region

responsibility

Other Executive

KMP without region

responsibility Threshold 50%

Performance outcome

Target 100% Maximum 150%

Safety and sustainability

Group 12.5% 25.0%

Region 12.5% 0%

Financial

Group 25.0% 50.0%

Region 25.0% 0%

Group and personal

25.0% 25.0%

BHP Minerals Australia Minerals Americas

BHP vs Sector Group and MSCI World TSR over 2021 LTIP cycle

TSR since 1 July 2021 (%)

Jun-2021

Jun-2022 Jun-2023 Jun-2024 Jun-2025

Jun-2026

BHP TSR Sector Group 50th percentile TSR Sector Group 80th percentile TSR

World (MSCI) 50th percentile TSR World (MSCI) 80th percentile TSR

250%

200%

150%

100%

50%

Remuneration Report continued

120 BHP Annual Report 2026

Outcome of the holistic review of performance

Vesting of CDP Deferred Rights (5 Year) and LTIP Performance Rights are

subject to a holistic review of BHP’s performance on safety, sustainability

(including climate), financial, corporate governance and conduct at the end

of the five‑year vesting periods. The rules and terms of the CDP and LTIP

awards provide the Committee with an overarching discretion to reduce the

number of awards that will vest, notwithstanding that performance conditions

have been met. This is applied as a test before vesting is confirmed and is

an important risk management tool to ensure vesting is not simply driven by

a formula or the passage of time that may give unexpected or unintended

remuneration outcomes. The Committee undertakes an assessment and

considers its discretion carefully each year ahead of the scheduled vesting

of CDP Deferred Rights (5 Year) and LTIP Performance Rights.

In respect of the vesting of the FY2021 CDP Deferred Rights (5 Year)

and 2021 LTIP Performance Rights, the Committee undertook a holistic

review of performance over the five‑year period (from FY2022 to FY2026).

The Committee noted BHP’s continued progress in S&S outcomes (noting,

however, the two fatalities in FY2023 and one in FY2024 were taken into

account in determining CDP outcomes for those years), strong operational

performance with improving production and cost performance, and

significant returns to shareholders.

In respect of the vesting of FY2021 CDP Deferred Rights (5 Year) and the

2021 LTIP Performance Rights, the Committee did not identify any reason

to exercise its downwards discretion.

Five-year share price, dividend and earnings history

The following table outlines BHP’s historical financial performance.

These elements impact the CDP scorecard outcomes and LTIP

performance outcomes. The highest and lowest closing share price during

FY2026 were A$65.59 and A$36.57, respectively.

FY2026 FY2025 FY2024 FY2023 FY2022

Share price at

beginning of year

(A$) 36.57 43.30 45.26 40.05 48.22

Share price at end of

year (A$) 59.40 36.75 42.68 44.99 41.25

Dividends paid (A$) 1.96 1.90 2.35 3.92 10.18

Attributable profit

(US$ million, as

reported) 9,833 9,019 7,897 12,921 30,900

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.

CEO transition – remuneration arrangements

As announced on 18 March 2026, the Board appointed Brandon Craig to

the position of CEO and Director of BHP Group Limited, effective 1 July

2026. Brandon succeeds Mike Henry, who stepped down on 30 June 2026

after six and a half years in the role.

Incoming CEO – Brandon Craig

The Board confirmed the following remuneration arrangements effective

from 1 July 2026:

– base salary of US$1,900,000 per annum

– superannuation/pension plan contributions of 10 per cent of base salary

– CDP and LTIP opportunity that is consistent with the current CEO’s

incentive arrangements including:

– CDP target opportunity (‘at risk’) of 240 per cent of base salary, with a

maximum opportunity of 360 per cent of base salary and a minimum

potential outcome of zero

– LTIP target opportunity (‘at risk’) of 200 per cent of base salary

– BHP will seek shareholder approval for Brandon’s FY2026 CDP

Deferred Rights and 2026 LTIP Performance Rights at our upcoming

2026 AGM in October

– one‑time relocation allowance to support the CEO’s relocation from

Chile to Melbourne of US$451,000 gross

– 12‑month notice period and MSR and post‑employment shareholding

requirement that is consistent with the former CEO’s arrangements

Other benefits (notional 10 per cent of base salary) may be approved

by the Committee from time to time and include tax return preparation,

financial planning/advice, partner travel, car parking and health insurance.

Outgoing CEO – Mike Henry

Mike stepped down as CEO on 30 June 2026 and will continue to provide

support for the period to 30 November 2026 (his employment end date).

He will receive his contractual entitlements and benefits outlined below:

– payment of his fixed remuneration up to his employment end date,

and four months payment in lieu of notice

– payment of statutory accrued leave entitlements

– participation in the FY2026 CDP award with CDP Deferred Rights

(5 Year) component to be pro‑rated to the employment end date

– no participation in the 2026 LTIP Performance Rights

– unvested CDP Deferred Rights (2 Year) will continue on foot and

vest in the ordinary course

– unvested CDP Deferred Rights (5 Year) and LTIP Performance Rights

will be pro‑rated to the employment end date and remain on foot, with

vesting occurring in the ordinary course subject to satisfaction of the

applicable vesting conditions

– other benefits including health insurance, relocation support and

tax return preparation in required countries for the period relating

to his employment

In addition, Mike must comply with a two‑year post‑employment

shareholding requirement from the cessation of his employment, which

will be the lower of Mike’s MSR or his actual shareholding at the date

of cessation.

FY2026 remuneration received by the CEO

(Mike Henry)

The table below is a voluntary, non‑statutory and unaudited disclosure

of the remuneration received by the CEO during FY2026 and FY2025.

It differs from the audited remuneration disclosed in accordance with

the Australian Accounting Standards (refer to KMP remuneration table

and Financial Statements note 25 ‘Key management personnel’) and is

intended to provide greater transparency for shareholders by reflecting

actual remuneration received.

The difference between the remuneration disclosure in the table below

and the KMP remuneration table primarily relates to CDP and LTIP awards.

Under Australian Accounting Standards the statutory remuneration

calculation requires the fair value of CDP and LTIP awards to be calculated

at the time of grant and amortised over the relevant vesting periods

irrespective of actual performance outcomes or amounts ultimately

received by the executive.

US$(’000) FY2026 FY2025

Mike Henry Base salary 1,957 1,881

Benefits

89 54

Pension

196 188

CDP

5,542 4,965

LTIP

2,467 1,967

Total 10,251 9,055

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. FY2026 and FY2025 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 FY2026 and FY2025. The FY2026 CDP award will be provided

one third in cash in September 2026, one third in CDP Deferred Rights (2 Year) vesting

at the end of FY2028, with the remaining number of CDP Deferred Rights (5 Year) being

pro‑rated and vesting at the end of FY2031. The FY2025 CDP Deferred Rights (5 Year)

award will be similarly pro‑rated.

4. The values shown are LTIP outcomes vested during FY2026 and FY2025 in respect

of LTIP Performance Rights granted in 2021 and 2020, respectively. The 2021 LTIP

Performance Rights value in FY2026 is an estimate calculated on the average share

price for the month of July 2026 (which will be updated in subsequent disclosures).

The 2020 LTIP Performance Rights value in FY2025 is an updated value from the 2025

Remuneration Report and is calculated on the actual share price on the vesting date.

121

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governanc e

Remuneration for Non‑executive Directors

Competitive fees and benefits are paid to attract and retain appropriately

skilled and globally experienced individuals to BHP’s Board.

Shareholders approved the maximum aggregate fee pool for

Non‑executive Directors of US$3.8 million per annum. The fee pool

was approved by shareholders at the 2008 AGM. Travel allowances

and non‑monetary benefits are not included in this limit.

Non‑executive Directors do not have any performance‑based

at‑risk remuneration and do not receive any equity awards as part

of their remuneration.

Non-executive Director fees

The Group Chair is paid a single fee for all responsibilities. All other

Non‑executive Directors are paid a base fee and relevant Committee

membership fees. Committee Chairs and the Senior Independent Director

are paid a fee to reflect their extra responsibilities.

All fee levels are reviewed annually. Annual reviews consider

global benchmarking and advice provided by external advisers,

as required. Fee levels reflect the size and complexity of the Group,

market benchmarking and the financial performance of the Group.

Consideration is also given to salary reviews across the rest of the Group.

Where the payment of pension contributions is required by law, these

contributions are deducted from the Director’s overall fee entitlements.

Subject to securities dealing constraints, Non‑executive Directors have

agreed to apply at least 25 per cent of their remuneration (base fees plus

relevant Committee membership fees) to the purchase of BHP shares

until they achieve an MSR equivalent in value to one year of remuneration.

Thereafter they must maintain at least that level of shareholding throughout

their tenure. At the end of FY2026, all Non‑executive Directors met their

MSR other than Mark Vassella who joined the Board on 1 June 2026.

Non-executive Director benefits

Non‑executive Directors receive a travel allowance as there is a

considerable travel burden required of Non‑executive Directors to travel to

Board meetings and site visits. Travel allowances are paid on a per trip basis.

Non‑executive Directors are reimbursed for the costs of personal tax return

preparation if Australia is not their place of residence (including payment of

the tax cost associated with the provision of the benefit).

Letters of appointment

The Board has entered into a letter of appointment with each

Non‑executive Director that contains the terms on which the Non‑executive

Directors will be appointed. Non‑executive Directors are also indemnified

by BHP Group Limited. The Board has adopted a policy under which all

Non‑executive Directors must seek re‑election at the AGM each year.

As a result of requiring re‑election each year, Non‑executive Directors

do not have a fixed term in their letter of appointment.

A Non‑executive Director may resign on reasonable notice. No payments

are made to Non‑executive Directors on loss of office.

FY2027 fees and allowances

A benchmarking assessment undertaken during FY2026 identified that the

base annual fees for the Chair and Non‑executive Directors were no longer

aligned with market benchmarks for comparable roles at relevant global peer

companies. As a result, the Board determined that the base annual fees for

the Chair and Non‑executive Directors will increase by 10 per cent with effect

1 July 2026. The increases are within the current Non‑executive Director

fee pool, as approved by shareholders in 2008 and reflect the expectations,

accountabilities and workloads of each of the Chair and Non‑executive

Directors. There is no change to the fees for other Committee roles or other

allowances in FY2027.

The below table sets out the annualised total remuneration and total fixed

fees for FY2026 and FY2027.

Levels of fees and travel allowances for Non‑executive Directors (in US$) FY2026 FY2027

Group Chair’s base annual fee 962,000 1,058,200

Base annual fee 175,000 193,000

Plus additional fees for:

Senior Independent Director 53,000 53,000

Committee Chair:

Risk and Audit 66,000 66,000

People and Remuneration 45,000 45,000

Sustainability 45,000 45,000

Nomination and Governance No additional fee No additional fee

Committee membership:

Risk and Audit 32,500 32,500

People and Remuneration 27,5 0 0 27,500

Sustainability 27,5 0 0 27,500

Nomination and Governance 18,000 18,000

Travel allowance:

In excess of 3 hours and less than 10 hours 7,000 7,000

10 hours or more 15,000 15,000

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.

Remuneration Report continued

122 BHP Annual Report 2026

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 made during FY2026. There were no transactions or loans

between Executive KMP (including their related parties) and the Group or any of our subsidiaries during FY2026.

The amounts included in the table below for CDP Deferred Rights and LTIP Performance Rights represent the amortised accounting fair value of these

grants estimated at the grant date and are not amounts actually provided to the Executive KMP. The actual value cannot be determined as it is dependent

on the share price on the date the award vests. See the Equity awards table on the following page 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

Other

benefits

Pension

CDP Deferred

Rights (2 and

5 Year)

LTIP

Performance

Rights

Total

reward

Mike Henry FY2026 1,957 1,847 89 196 3,551 2,230 9,870

FY2025 1,881 1,655 54 188 2,608 2,123 8,509

Brandon Craig FY2026 948 871 85 95 995 868 3,862

FY2025 860 811 91 86 512 794 3,154

Vandita Pant FY2026 1,123 1,059 84 112 1,659 904 4,941

FY2025 1,060 933 67 106 1,298 773 4,237

Geraldine Slattery FY2026 1,138 1,046 67 114 1,719 1,097 5,181

FY2025 1,087 999 26 109 1,470 990 4,681

1. The FY2026 CDP cash component will be paid in September 2026.

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 FY2026.

US$ (‘000) Short‑term Post‑employment

Name Financial year

Base and

committee

fees

Other

benefits

Pension

Total

reward

Xiaoqun Clever‑Steg FY2026 190 76 18 284

FY2025 195 76 13 284

Gary Goldberg FY2026 274 113 – 387

FY2025 274 75 – 349

Michelle Hinchliffe FY2026 259 82 – 341

FY2025 259 75 – 334

Don Lindsay FY2026 220 90 15 325

FY2025 227 52 8 287

Ross McEwan FY2026 942 89 20 1,051

FY2025 400 66 19 485

Christine O’Reilly FY2026 250 22 20 292

FY2025 266 51 5 322

Catherine Tanna FY2026 245 37 20 302

FY2025 246 36 19 301

Mark Vassella

FY2026 17 15 2 34

Dion Weisler FY2026 210 37 20 267

FY2025 211 36 19 266

1. Other short‑term benefits include travel allowances, fringe benefits tax and personal tax return preparation in required countries.

2. The FY2026 remuneration for Mark Vassella relates to part of the year only, as he joined the Board on 1 June 2026.

123

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governanc e

Equity awards

This table details the Executive KMP equity incentives which were granted, vested or lapsed during the reporting period, and were otherwise ‘on foot’. Each CDP

Deferred Right or LTIP Performance Right is a right to acquire one ordinary share in BHP Group Limited upon satisfaction of the vesting conditions.

Executive KMP were KMP during the entire reporting period.

Award type

Date

of grant

At 1 July

2025 Granted Vested

Lapsed/

forfeited

At 30 June

2026

Vesting

date

(estimate)

Market

price on

grant

date

Market

price on

vesting

date

Gain on

awards

(‘000)

DEP on

awards

(‘000)

Mike Henry

2025 CDP (5 Year) 31 Oct 25 – 63,669 – – 63,669 Aug 30 A$43.45 – – –

2025 CDP (2 Year) 31 Oct 25 – 63,669 – – 63,669 Aug 27 A$43.45 – – –

2024 CDP (5 Year) 8 Nov 24 35,042 – – – 35,042 Aug 29 A$43.40 – – –

2024 CDP (2 Year) 8 Nov 24 35,042 – – – 35,042 Aug 26 A$43.40 – – –

2023 CDP (5 Year) 8 Nov 23 4 3,10 6 – – – 43,10 6 Aug 28 A$44.70 – – –

2023 CDP (2 Year) 8 Nov 23 4 3,10 6 – 43,106 – – 22 Aug 25 A$44.70 A$42.00 A$1,810 A$185

2022 CDP (5 Year) 22 Nov 22 44,335 – – – 44,335 Aug 27 A$43.48 – – –

2021 CDP (5 Year) 23 Nov 21 55,246 – – – 55,246 Aug 26 A$38.05 – – –

2020 CDP (5 Year) 20 Oct 20 49,692 – 49,692 – – 22 Aug 25 A$35.90 A$42.00 A$2,087 A$809

2025 LTIP 31 Oct 25 – 151,581 – – 151,581 Aug 30 A$43.45 – – –

2024 LTIP 8 Nov 24 127,8 48 – – – 127, 84 8 Aug 29 A$43.40 – – –

2023 LTIP 8 Nov 23 125,124 – – – 125,124 Aug 28 A$44.70 – – –

2022 LTIP 22 Nov 22 118,853 – – – 118,853 Aug 27 A$43.48 – – –

2021 LTIP 23 Nov 21 120,099 – – – 120,099 Aug 26 A$38.05 – – –

2020 LTIP 20 Oct 20 157,138 – 51,856 105,282 – 22 Aug 25 A$35.90 A$42.00 A $2,178 A$845

Brandon Craig

2025 CDP (5 Year) 31 Oct 25 – 31,215 – – 31,215 Aug 30 A$43.45 – – –

2025 CDP (2 Year) 31 Oct 25 – 31,215 – – 31,215 Aug 27 A$43.45 – – –

2024 CDP (5 Year) 8 Nov 24 5,835 – – – 5,835 Aug 29 A$43.40 – – –

2024 CDP (2 Year) 8 Nov 24 5,835 – – – 5,835 Aug 26 A$43.40 – – –

2025 LTIP 31 Oct 25 – 61,940 – – 61,940 Aug 30 A$43.45 – – –

2024 LTIP 8 Nov 24 47,276 – – – 47, 276 Aug 29 A$43.40 – – –

FY24 MAP 8 Dec 23 23,600 – – – 23,600 Aug 28 A $47.74 – – –

FY24 MAP 8 Dec 23 23,600 – – – 23,600 Aug 27 A $47.74 – – –

FY24 MAP 27 Sep 23 23,600 – – – 23,600 Aug 26 A$43.49 – – –

FY23 MAP 21 Sep 22 19,938 – 19,938 – – 22 Aug 25 A$37.9 6 A$42.00 A$837 –

Vandita Pant

2025 CDP (5 Year) 31 Oct 25 – 35,876 – – 35,876 Aug 30 A$43.45 – – –

2025 CDP (2 Year) 31 Oct 25 – 35,876 – – 35,876 Aug 27 A$43.45 – – –

2024 CDP (5 Year) 8 Nov 24 20,470 – – – 20,470 Aug 29 A$43.40 – – –

2024 CDP (2 Year) 8 Nov 24 20,470 – – – 20,470 Aug 26 A$43.40 – – –

2023 CDP (5 Year) 8 Nov 23 22,682

– – – 22,682 Aug 28 A$44.70 – – –

2023 CDP (2 Year) 8 Nov 23 22,682 – 22,682 – – 22 Aug 25 A$44.70 A$42.00 A$953 A$97

2022 CDP (5 Year) 22 Nov 22 17,8 34 – – – 17,83 4 Aug 27 A$43.48 – – –

2021 CDP (5 Year) 23 Nov 21 20,347 – – – 20,347 Aug 26 A$38.05 – – –

2025 LTIP 31 Oct 25 – 74,059 – – 74,059 Aug 30 A$43.45 – – –

2024 LTIP 8 Nov 24 60,277 – – – 60,277 Aug 29 A$43.40 – – –

2023 LTIP 8 Nov 23 45,632 – – – 45,632 Aug 28 A$44.70 – – –

2022 LTIP 22 Nov 22 43,296 – – – 43,296 Aug 27 A$43.48 – – –

2021 LTIP 23 Nov 21 34,440 – – – 34,440 Aug 26 A$38.05 – – –

FY21 MAP 20 Oct 20 27,731 – 27,731 – – 22 Aug 25 A$35.90 A$42.00 A$1,165 A$452

Remuneration Report continued

124 BHP Annual Report 2026

Award type

Date

of grant

At 1 July

2025 Granted Vested

Lapsed/

forfeited

At 30 June

2026

Vesting

date

(estimate)

Market

price on

grant

date

Market

price on

vesting

date

Gain on

awards

(‘000)

DEP on

awards

(‘000)

Geraldine Slattery

2025 CDP (5 Year) 31 Oct 25 – 38,453 – – 38,453 Aug 30 A$43.45 – – –

2025 CDP (2 Year) 31 Oct 25 – 38,453 – – 38,453 Aug 27 A$43.45 – – –

2024 CDP (5 Year) 8 Nov 24 19,981 – – – 19,981 Aug 29 A$43.40 – – –

2024 CDP (2 Year) 8 Nov 24 19,981 – – – 19,981 Aug 26 A$43.40 – – –

2023 CDP (5 Year) 8 Nov 23 22,870 – – – 22,870 Aug 28 A$44.70 – – –

2023 CDP (2 Year) 8 Nov 23 22,870 – 22,870 – – 22 Aug 25 A$44.70 A$42.00 A$961 A$98

2022 CDP (5 Year) 22 Nov 22 23,784 – – – 23,784 Aug 27 A$43.48 – – –

2021 CDP (5 Year) 23 Nov 21 28,258 – – – 28,258 Aug 26 A$38.05 – – –

2020 CDP (5 Year) 20 Oct 20 28,562 – 28,562 – – 22 Aug 25 A$35.90 A$42.00 A$1,200 A$465

2025 LTIP 31 Oct 25 – 7 7,0 89 – – 77,0 89 Aug 30 A$43.45 – – –

2024 LTIP 8 Nov 24 65,004 ‑ – – 65,004 Aug 29 A$43.40 – – –

2023 LTIP 8 Nov 23 61,359 – – – 61,359 Aug 28 A$44.70 – – –

2022 LTIP 22 Nov 22 58,237 – – – 58,237 Aug 27 A$43.48 – – –

2021 LTIP 23 Nov 21 52,543 – – – 52,543 Aug 26 A$38.05 – – –

2020 LTIP 20 Oct 20 60,660 – 20,018 40,642 – 22 Aug 25 A$35.90 A$42.00 A$841 A$326

1. BHP senior management who are not KMP receive long‑term incentive awards under BHP’s Management Award Plan (MAP). 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 Statements.

2. The percentage that vested during FY2026 are as follows: CDP Deferred Rights 100% and LTIP Performance Rights 33%.

3. The IFRS fair value on the grant date in FY2026 for the CDP Deferred Rights was A$44.37 and LTIP Performance Rights was A$26.44.

4. As disclosed in the ‘CEO transition – remuneration arrangements’ Mike Henry’s unvested CDP Deferred Rights (5 Year) and LTIP Performance Rights will be pro‑rated on his cessation

of employment from BHP.

Additional information regarding the prior year incentive awards that are ‘on foot’ can be found in the Remuneration Report of the relevant year in which

the grant was made. There has been no alteration to the terms and conditions of any grants since the grant date. Related parties of Executive KMP do not

hold interests under BHP’s employee equity plans.

BHP’s shareholders approved the grant of FY2025 CDP Deferred Rights and 2025 LTIP Performance Rights to the CEO in accordance with ASX Listing

Rule 10.14 at the 2025 AGM.

Ordinary shareholdings and transactions

This table shows movements during the reporting period in the number of fully paid ordinary shares of BHP Group Limited held directly, indirectly or

beneficially, by each KMP, including their related parties. No shares are held nominally by any KMP or their related parties. These are ordinary shares

held without performance conditions or restrictions and are included in MSR calculations for each individual.

For KMP that commenced as KMP during the reporting period, the ‘At 1 July 2025’ value reflects the shares held at the date they commenced as KMP.

For KMP that ceased to be KMP during the reporting period, the ‘At 30 June 2026’ value reflects the shares held at the date they ceased being KMP.

At 1 July 2025 Purchased Received as remuneration Sold At 30 June 2026

Executive KMP

Mike Henry 478,035 – 144,654 66,295 556,394

Brandon Craig 36,585 – 19,938 8,684 47,839

Vandita Pant 211,935 – 50,413 11,413 250,935

Geraldine Slattery

238,028 – 71,450 32,479 276,999

Non‑executive Directors

Xiaoqun Clever‑Steg 10,000 – – – 10,000

Gary Goldberg

24,000 – – – 24,000

Michelle Hinchliffe 12,330 – – – 12,330

Don Lindsay 10,000 – – – 10,000

Ross McEwan 45,000 – – – 45,000

Christine O’Reilly 10,620 – – – 10,620

Catherine Tanna 10,400 – – – 10,400

Mark Vassella

4,825 – – – 4,825

Dion Weisler 11,494 – – – 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 Mark Vassella at 1 July 2025 is the balance held at the date of joining the Board on 1 June 2026.

125

Operating and Financial Review Additional InformationFinancial StatementsSustainability Report Governanc e

This Remuneration Report was approved by the Board

on 18 August 2026 and signed on its behalf by:

Christine O’Reilly

Chair, People and Remuneration Committee

18 August 2026

Remuneration Report continued

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

126 BHP Annual Report 2026

1 Consolidated Financial Statements

1.1 Consolidated Income Statement 128

1.2 Consolidated Statement of Comprehensive Income 128

1.3 Consolidated Balance Sheet 129

1.4 Consolidated Cash Flow Statement 130

1.5 Consolidated Statement of Changes in Equity 131

1.6 Notes to the Financial Statements 134

2 Consolidated entity disclosure statement 186

3 Directors’ declaration 190

4 Lead auditor’s independence declaration under

Section 307C of the Australian Corporations Act 2001

191

5 Independent auditor’s report to the members of

BHP Group Limited

192

Notes to the Financial Statements

Performance

1 Segment reporting 134

2 Revenue 136

3 Exceptional items 137

4 Significant events – Samarco dam failure 139

5 Expenses and other income 144

6 Income tax expense 145

7 Earnings per share 147

Working capital

8 Trade and other receivables 148

9 Trade and other payables 148

10 Inventories 148

Resource assets

11 Property, plant and equipment 149

12 Intangible assets 151

13 Impairment of non‑current assets 152

14 Deferred tax balances 154

15 Closure and rehabilitation provisions 155

16 Climate change 157

Capital structure

17 Share capital 160

18 Other equity 160

19 Dividends 161

20 Provisions for dividends and other liabilities 162

Financial management

21 Net debt 162

22 Leases 164

23 Net finance costs 166

24 Financial risk management 167

Employee matters

25 Key management personnel 173

26 Employee share ownership plans 174

27 Employee benefits, restructuring and post‑retirement

employee benefits provisions 175

Group and related party information

28 Subsidiaries 177

29 Investments accounted for using the equity method 177

30 Interests in joint operations 180

31 Related party transactions 180

Unrecognised items and uncertain events

32 Contingent liabilities 181

33 Subsequent events 181

Other items

34 Auditor’s remuneration 182

35 BHP Group Limited 182

36 Deed of Cross Guarantee 183

37 New and amended accounting standards and

interpretations and changes to accounting policies 185

Financial Statements

127

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1.1 Consolidated Income Statement

for the year ended 30 June 2026

		2026	2025	2024
	Notes	US$M	US$M	US$M
Revenue	2	58, 760	51, 2 6 2	55,65 8
Other income	5	514	368	1, 2 8 5
Expenses excluding net finance costs	5	(3 5, 979)	(3 2 ,319)	(36 ,75 0)
Profit/(loss) from equity accounted investments, related impairments and expenses	29	5 74	15 3	(2,656)
Profit from operations		23,869	19, 4 6 4	1 7, 5 3 7
Financial expenses		(2 ,05 9)	(1, 7 71)	(2 ,1 9 8)
Financial income		604	660	709
Net finance costs	23	(1 ,455)	(1 ,111)	(1, 4 8 9)
Profit before taxation		2 2 , 414	18 , 35 3	16 ,0 4 8
Income tax expense		( 7, 9 9 1)	(6 ,1 3 0)	(6 , 015)
Royalty‑related taxation (net of income tax benefit)		(1,39 7)	(1 , 0 8 0)	(4 32)
Total taxation expense	6	(9,3 88)	(7,210)	(6 , 4 47)
Profit after taxation		13 ,0 2 6	11 ,1 4 3	9, 601
Attributable to non‑controlling interests		3 ,1 9 3	2 ,1 2 4	1,70 4
Attributable to BHP shareholders		9 ,833	9 ,019	7, 8 9 7
Basic earnings per ordinary share (cents)	7	193 .6	17 7. 8	15 5. 8
Diluted earnings per ordinary share (cents)	7	19 3. 2	17 7. 4	15 5 . 5

The accompanying notes form part of these Financial Statements.

1.2 Consolidated Statement of Comprehensive Income

for the year ended 30 June 2026

		2026	2025	2024
	Notes	US$M	US$M	US$M
Profit after taxation		13 ,0 2 6	11 ,1 4 3	9, 601
Other comprehensive income
Items that may be reclassified subsequently to the income statement:
Hedges:
(Losses)/gains taken to equity		(237)	346	(3 3)
Losses/(gains) transferred to the income statement		12 9	(3 92)	49
Tax recognised within other comprehensive income	6	33	14	(5)
Total items that may be reclassified subsequently to the income statement		(75)	(3 2)	11
Items that will not be reclassified to the income statement:
Re‑measurement (losses)/gains on pension and medical schemes		(12)	(8)	41
Equity investments held at fair value		12	23	(3 0)
Tax recognised within other comprehensive income	6	4	3	(1 3)
Total items that will not be reclassified to the income statement		4	18	(2)
Total other comprehensive (loss)/income		(7 1)	(14)	9
Total comprehensive income		12 , 9 5 5	11,129	9, 610
Attributable to non‑controlling interests		3 ,1 9 0	2 ,11 9	1,70 8
Attributable to BHP shareholders		9,7 65	9,0 10	7, 9 0 2

The accompanying notes form part of these Financial Statements.

1 Consolidated Financial Statements

128 BHP Annual Report 2026

1.3 Consolidated Balance Sheet

as at 30 June 2026

		2026	2025
	Notes	US$M	US$M
ASSETS
Current assets
Cash and cash equivalents	21	1 8,532	11 , 8 9 4
Trade and other receivables	8	5 , 0 11	4 ,11 6
Other financial assets	24	619	5 61
Inventories	10	6 ,5 91	5,53 8
Current tax assets		33	5 45
Other		247	17 6
Total current assets		31,0 33	2 2,830
Non‑current assets
Trade and other receivables	8	79	13 7
Other financial assets	24	9 11	1,122
Inventories	10	1,7 9 0	1, 4 4 0
Property, plant and equipment	11	80,04 6	76 ,4 57
Intangible assets	12	2 ,11 3	1, 92 4
Investments accounted for using the equity method	29	4 , 414	4 ,1 0 7
Non‑current tax assets		37	−
Deferred tax assets	14	114	78
Other		850	695
Total non‑current assets		90,3 54	8 5,960
Total assets		121, 3 8 7	10 8,7 9 0
LIABILITIES
Current liabilities
Trade and other payables	9	7, 5 7 9	6,6 37
Interest bearing liabilities	21	2 ,684	2, 018
Other financial liabilities	24	3 17	214
Current tax payable		1,0 4 9	900
Provisions	4,15,20,27	4 ,76 8	5,82 3
Deferred income		68	47
Total current liabilities		1 6,465	15 ,6 3 9
Non‑current liabilities
Trade and other payables	9	48	33
Interest bearing liabilities	21	2 4, 437	2 2 , 478
Other financial liabilities	24	5 ,606	1, 3 6 4
Non‑current tax payable		37	3
Deferred tax liabilities	14	3 ,1 0 1	3,50 6
Provisions	4,15,20,27	1 5,336	13,498
Deferred income		36	51
Total non‑current liabilities		4 8,6 01	40,933
Total liabilities		65,066	56 ,572
Net assets		56 ,321	52 , 218
EQUITY
Share capital	17	5 ,17 9	5 , 015
Treasury shares	17	(3 9)	(18)
Reserves	18	62	(2)
Retained earnings		4 5,72 1	42,670
Total equity attributable to BHP shareholders		5 0,923	4 7, 6 6 5
Non‑controlling interests	18	5,398	4,553
Total equity		56 ,321	52 , 218

The accompanying notes form part of these Financial Statements.

The Financial Statements were approved by the Board of Directors on 18 August 2026 and signed on its behalf by:

Ross McEwan Brandon Craig

Chair Chief Executive Officer

129

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

1.4 Consolidated Cash Flow Statement

for the year ended 30 June 2026

		2026	2025	2024
	Notes	US$M	US$M	US$M
Operating activities
Profit before taxation		2 2 , 414	18 , 35 3	16 ,0 4 8
Adjustments for:
Depreciation and amortisation expense		6, 201	5,5 40	5,29 5
Impairments of property, plant and equipment, financial assets and intangibles net
of reversals		2,406	10 8	3,89 0
Net finance costs		1 ,455	1,111	1, 4 8 9
(Profit)/loss from equity accounted investments, related impairments and expenses		(5 74)	(1 5 3)	2,65 6
Other Changes in assets and liabilities:		666	8 31	(2 4 3)
Trade and other receivables		(8 41)	776	(2 9 0)
Inventories		(1 ,465)	64	(5 3 0)
Trade and other payables		880	(11 6)	(27)
Provisions and other assets and liabilities		(2 3 1)	(249)	(46 9)
Cash generated from operations		30,9 1 1	26, 265	2 7 , 819
Dividends received		895	375	3 97
Interest received		536	608	724
Interest paid		(1, 5 8 6)	(1, 47 8)	(1 , 6 8 0)
Proceeds from cash management related instruments		96	19 5	3 61
Net income tax and royalty‑related taxation refunded		467	448	5 47
Net income tax and royalty‑related taxation paid		(9, 5 4 1)	( 7, 7 2 1)	( 7, 5 0 3)
Net operating cash flows		21,7 78	18, 6 92	20,6 65
Investing activities
Purchases of property, plant and equipment		(9, 84 9)	(9, 3 9 8)	(8 , 816)
Exploration and evaluation expenditure		(4 08)	(3 9 6)	(4 57)
Exploration and evaluation expenditure expensed and included in operating cash flows		3 47	3 46	399
Net investment and funding of equity accounted investments	29	(2 ,3 80)	(3 , 9 8 4)	(7 0 1)
Proceeds from sale of assets		162	12 7	14 9
Proceeds from sale of subsidiaries, operations and joint operations, net of their cash		685	535	1, 0 72
Other investing		(56 8)	(5 8 0)	(4 0 8)
Net investing cash flows		(1 2 , 0 11)	(13 , 3 5 0)	(8, 76 2)
Financing activities
Proceeds from interest bearing liabilities		3,957	4 ,1 2 9	5,0 91
Settlements of debt related instruments		(22)	(14 7)	(3 2 1)
Repayment of interest bearing liabilities		(2,3 63)	(1, 6 75)	( 7, 3 2 7 )
Proceeds from streaming arrangement liability		4,300	−	−
Settlements of streaming arrangement liability		(41)	−	−
Distributions to non‑controlling interests		−	(2)	(13)
Dividends paid		(6,75 6)	(6, 4 03)	(7, 6 7 5)
Dividends paid to non‑controlling interests		(2 ,35 5)	(1 , 8 73)	(1, 4 24)
Net financing cash flows		(3, 2 80)	(5 , 9 71)	(11 , 6 6 9)
Net increase/(decrease) in cash and cash equivalents		6,4 87	(6 29)	234
Cash and cash equivalents, net of overdrafts, at the beginning of the financial year		11 , 8 9 3	1 2,498	12, 4 23
Foreign currency exchange rate changes on cash and cash equivalents		15 2	24	(1 5 9)
Cash and cash equivalents, net of overdrafts, at the end of the financial year	21	1 8,532	11 , 8 9 3	12 ,498

The accompanying notes form part of these Financial Statements.

130 BHP Annual Report 2026

1.5 Consolidated Statement of Changes in Equity

for the year ended 30 June 2026

				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 2025	5 ,0 15	(18)	(2)	42 ,670	4 7, 6 6 5	4,553	52 , 218
Total comprehensive income	−	−	(64)	9,829	9,76 5	3 ,1 9 0	12, 9 5 5
Transactions with owners:
Shares issued	16 4	(16 4)	−	−	−	−	−
Employee share awards exercised net of employee contributions net of tax	−	14 3	(12 0)	(2 3)	−	−	−
Vested employee share awards that have lapsed, been cancelled or forfeited	−	−	(4)	4	−	−	−
Accrued employee entitlement for unexercised awards net of tax	−	−	18 8	−	188	−	188
Dividends	−	−	−	(6 ,7 6 1)	(6, 76 1)	(2, 35 5)	(9 ,11 6)
Transfers within equity on divestment of subsidiaries, operations and joint operations	−	−	(2)	2	−	−	−
Equity contributed net of tax	−	−	66	−	66	10	76
Balance as at 30 June 2026	5 ,17 9	(39)	62	45 ,721	50,923	5,398	56 ,321
Balance as at 1 July 2024	4,89 9	(3 6)	(1 5)	39, 96 3	4 4 , 8 11	4,3 09	4 9 ,1 2 0
Total comprehensive income	−	−	(9)	9 ,019	9, 010	2 ,11 9	11,129
Transactions with owners:
Shares issued	11 6	(11 6)	−	−	−	−	−
Employee share awards exercised net of employee contributions net of tax	−	13 4	(1 07)	(2 7)	−	−	−
Vested employee share awards that have lapsed, been cancelled or forfeited	−	−	(1)	1	−	−	−
Accrued employee entitlement for unexercised awards net of tax	−	−	13 0	−	130	−	13 0
Dividends	−	−	−	(6, 2 86)	(6 , 28 6)	(1 , 8 7 3)	(8 ,1 5 9)
Distribution to non‑controlling interests	−	−	−	−	−	(2)	(2)
Balance as at 30 June 2025	5, 015	(18)	(2)	42,670	4 7, 6 6 5	4,553	5 2, 218
Balance as at 1 July 2023	4,737	(41)	13	3 9,7 87	4 4,496	4, 034	4 8,530
Total comprehensive income	−	−	(18)	7, 9 2 0	7, 9 0 2	1, 70 8	9, 610
Transactions with owners:
Shares issued	162	(1 6 2)	−	−	−	−	−
Employee share awards exercised net of employee contributions net of tax	−	167	(13 4)	(3 3)	−	−	−
Vested employee share awards that have lapsed, been cancelled or forfeited	−	−	(1)	1	−	−	−
Accrued employee entitlement for unexercised awards net of tax	−	−	12 9	−	129	−	12 9
Dividends	−	−	−	(7, 7 1 2)	(7, 7 1 2)	(1, 4 2 4)	(9 ,1 3 6)
Distribution to non‑controlling interests	−	−	(4)	−	(4)	(9)	(1 3)
Balance as at 30 June 2024	4,89 9	(3 6)	(1 5)	39, 96 3	4 4 , 8 11	4,3 09	4 9 ,1 2 0

The accompanying notes form part of these Financial Statements.

131

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

Basis of preparation

The Consolidated Financial Statements (Financial Statements) comprise

BHP Group Limited (BHP or the Company) together with its controlled

entities (Group) for the year ended 30 June 2026. BHP Group Limited,

incorporated and domiciled in Australia, is a for‑profit company limited by

shares which are publicly traded on the Australian Securities Exchange.

BHP Group Limited also has an international secondary listing on the

London Stock Exchange (LSE), a secondary listing on the Johannesburg

Stock Exchange and is listed on the New York Stock Exchange (NYSE) in

the United States.

Directors of BHP have included information in the Financial Statements

they deem to be material and relevant to the understanding of the Financial

Statements. Disclosure may be considered material and relevant if the

dollar amount is significant due to its size or nature, or the information is

important to understand the:

– Group’s current year results

– impact of significant changes in the Group’s business or

– aspects of the Group’s operations that are important to

future performance

The Board of Directors resolved to authorise the issue of the financial

report on 18 August 2026.

Basis of preparation and measurement

The Group’s Financial Statements as at and for the year ended

30 June 2026:

– are a consolidated general purpose financial report

– have been prepared in accordance with the requirements of:

– the Australian Corporations Act 2001 (Corporations Act 2001)

– Australian Accounting Standards and other authoritative

pronouncements of the Australian Accounting Standards Board

(AASB) and International Financial Reporting Standards as issued

by the International Accounting Standards Board (IASB) (collectively

referred to as IFRS)

– are prepared on a going concern basis as the Directors:

– have made an assessment of the Group’s ability to continue as a

going concern for the 12 months from the date of this report

– consider it appropriate to adopt the going concern basis of accounting

in preparing the Group’s Financial Statements

– measure items on the basis of historical cost principles, except for the

following items:

– derivative financial instruments and certain other financial assets and

liabilities, which are carried at fair value

– non‑current assets or disposal groups that are classified as

held‑for‑sale or held‑for‑distribution, which are measured at the

lower of carrying amount and fair value less costs to sell

– include material accounting policies in the notes to the Financial

Statements, specifically where accounting policy choices have been

made in relation to the recognition and measurement basis used and

are relevant to an understanding of the Financial Statements

– apply a presentation currency of US dollars, consistent with

the predominant functional currency of the Group’s operations.

Amounts are rounded to the nearest million dollars, unless otherwise

stated, in accordance with ASIC (Rounding in Financial/Directors’

Reports) Instrument 2026/183

– present reclassified comparative information where required for

consistency with the current year’s presentation

– adopt all new and amended standards and interpretations under IFRS

that are mandatory for application in periods beginning on 1 July 2025.

None had a significant impact on the Financial Statements

– have not early adopted any standards and interpretations that have been

issued or amended but are not yet effective. Refer to note 37 ‘New and

amended accounting standards and interpretations and changes to

accounting policies’

The accounting policies are consistently applied by all entities included in

the Financial Statements.

In assessing the appropriateness of the going concern assumption over

the going concern period, management has stress tested BHP’s most

recent financial projections to incorporate a range of potential future

outcomes by considering BHP’s principal risks. The Group’s financial

forecasts, including downside commodity price and production scenarios,

demonstrate that the Group believes that it has sufficient financial

resources to meet its obligations as they fall due throughout the going

concern period. As such, the Financial Statements continue to be prepared

on the going concern basis.

Principles of consolidation

A list of significant entities in the Group, including subsidiaries, joint

arrangements and associates at 30 June 2026 is contained in note 28

‘Subsidiaries’, note 29 ‘Investments accounted for using the equity method’

and note 30 ‘Interests in joint operations’.

Subsidiaries: The Financial Statements of the Group include the

consolidation of BHP Group Limited (the Company or parent entity) and

its subsidiaries, being the entities controlled by the parent entity during the

year. Control exists where the Group:

– has power over the investee

– is exposed to, or has rights to, variable returns from its involvement with

the entity

– has the ability to affect those returns through its power to direct the

activities of the entity

The ability to approve the operating and capital budget of an entity and

the ability to appoint key management personnel are decisions (among

others) that demonstrate that the Group has the existing rights to direct the

relevant activities of an entity.

Where the Group’s interest is less than 100 per cent, the interest

attributable to outside shareholders is reflected in non‑controlling interests.

Changes in the Group’s interests in subsidiaries that do not result in a

loss of control are accounted for as equity transactions. The carrying

amount of the Group’s interests and the non‑controlling interests are

adjusted to reflect the changes in their relative interests in the subsidiaries.

Any difference between the amount by which the non‑controlling interests

are adjusted and the fair value of the consideration paid or received is

recognised directly in equity and attributed to the owners of the Company.

The financial information of subsidiaries is prepared for the same reporting

period as the Group. The acquisition method of accounting is used to

account for the Group’s business combinations.

Joint arrangements: The Group undertakes a number of business

activities through joint arrangements, which exist when two or more

parties have joint control. Joint arrangements are classified as either

joint operations or joint ventures, based on the contractual rights and

obligations between the parties to the arrangement:

– Joint operations: A joint operation is an arrangement in which the

Group shares joint control, primarily via contractual arrangements

with other parties. In a joint operation, the Group has rights to the

underlying assets and obligations for the liabilities relating to the

arrangement. This includes situations where the parties benefit from

the joint activity through a share of substantially all of the output, rather

than by receiving a share of the results of trading. In relation to the

Group’s interest in a joint operation, the Group recognises: its assets

and liabilities, including its share of any assets and liabilities held or

incurred jointly; revenue from the sale of its share of the output and its

share of any revenue generated from the sale of the output by the joint

operation; and its expenses including its share of expenses incurred

jointly. All such amounts are allocated in accordance with the terms of

the arrangement, which is usually in proportion to the Group’s interest in

the joint operation.

The Group accounts for the assets, liabilities, revenue and expenses

relating to its interest in a joint operation in accordance with the IFRS

Standards applicable to the particular assets, liabilities, revenue

and expenses.

– Joint ventures: A joint venture is a joint arrangement in which the parties

that share joint control have rights to the net assets of the arrangement.

A separate vehicle, not the parties, will have the rights to the assets

and obligations for the liabilities relating to the arrangement. More than

an insignificant share of output from a joint venture may be sold to third

parties, which indicates the joint venture is not dependent on the parties

to the arrangement for funding, nor do the parties have an obligation for

the liabilities of the arrangement. Joint ventures are accounted for using

the equity method as outlined below.

132 BHP Annual Report 2026

Associates: The Group accounts for investments in associates using the equity method as outlined below. An entity is considered an associate where

the Group is deemed to have significant influence but not control or joint control. Significant influence is presumed to exist where the Group:

– has over 20 per cent but less than 50 per cent of the voting rights of an entity, unless it can be clearly demonstrated that this is not the case or

– holds less than 20 per cent of the voting rights of an entity; however, has the power to participate in the financial and operating policy decisions

affecting the entity

The Group uses the term ‘equity accounted investments’ to refer to joint ventures and associates collectively.

Under the equity method, an investment in an associate or a joint venture is recognised initially at cost and adjusted thereafter to recognise the Group’s

share of the profit or loss and other comprehensive income of the associate or joint venture. When the Group’s share of losses of an associate or a joint

venture exceeds the Group’s interest in that associate or joint venture, the Group discontinues recognising its share of further losses. Additional losses are

recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.

The financial information of joint arrangements is prepared for the same reporting period as the Group. When the annual financial reporting date is

different to the Group’s, financial information is obtained as at 30 June in order to report on an annual basis consistent with the Group’s reporting date.

Foreign currencies

Transactions related to the Group’s worldwide operations are conducted in a number of foreign currencies. The majority of the subsidiaries, joint

arrangements and associates within each of the operations have assessed US dollars as the functional currency. Subsidiaries, joint arrangements and

associates that have functional currencies other than US dollars are not material to the financial performance or the financial position of the Group.

Foreign exchange gains and losses are recognised in the income statement, except for qualifying cash flow hedges (which are deferred to equity) and

foreign exchange gains or losses on foreign currency provisions for site closure and rehabilitation costs (which are capitalised in property, plant and

equipment for operating sites).

Significant judgements and estimates

The Group’s accounting policies require the use of judgement, estimates and assumptions. All judgements, estimates and assumptions are based

on the most current facts and circumstances and are reassessed on an ongoing basis. Actual results in future reporting periods may differ for these

estimates under different assumptions and conditions.

Further information regarding the Group’s significant judgements and key estimates and assumptions, being those where changes may materially

affect financial results and the carrying amount of assets and liabilities to be reported in the next reporting period, are embedded within the

following notes:

Note

4 Significant events – Samarco dam failure

6 Taxation

11 Overburden removal costs

11 Depreciation of property, plant and equipment

13 Impairment of non‑current assets

15 Closure and rehabilitation provisions

22 Leases

24 Streaming arrangement liability

29 Investments accounted for using the equity method

Additional information including sensitivity analysis, where appropriate, has been provided in the relevant notes to enhance an understanding of the

impact of key estimates and assumptions on the Group’s financial position and performance.

Reserve estimates

Reserves are estimates of the amount of product that can be demonstrated to be able to be economically and legally extracted from the Group’s

properties. In order to estimate reserves, assumptions are required about a range of technical and economic factors, including quantities, qualities,

production techniques, recovery efficiency, production and transport costs, commodity supply and demand, commodity and carbon prices and

exchange rates.

Estimating the quantity and/or quality of reserves requires the size, shape and depth of ore bodies to be determined by analysing geological data,

such as drilling samples and geophysical survey interpretations. Economic assumptions used to estimate reserves change from period‑to‑period as

additional technical and operational data is generated. This process may require complex and difficult geological judgements to interpret the data.

Reserve impact on financial reporting

Estimates of reserves may change from period‑to‑period as the economic assumptions used to estimate reserves change and additional geological

data is generated during the course of operations. Changes in reserves may affect the Group’s financial results and financial position in a number of

ways, including:

– asset carrying values and carrying values of the other financial liability associated with the Antamina silver streaming agreement may be affected

due to changes in estimated future production levels

– depreciation, depletion and amortisation charged to the income statement may change where such charges are determined on the units of

production basis, or where the useful economic lives of assets change

– overburden removal costs recorded on the balance sheet or charged to the income statement may change due to changes in stripping ratios or

the units of production basis of depreciation

– closure and rehabilitation provisions may change where changes in estimated reserves affect expectations about the timing or cost of these activities

– the carrying amount of deferred tax assets may change due to changes in estimates of the likely recovery of the tax benefits

133

Operating and Financial Review Additional InformationGovernanceSustainability Report 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 FY2026, 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, the Antamina silver streaming activities and consolidation adjustments. Revenue not

attributable to reportable segments comprises the sale of freight and fuel to third parties, as well as revenues from unallocated operations.

Exploration and technology activities are recognised within relevant segments.

				Group and
				unallocated
Year ended 30 June 2026				items/
US$M	Copper	Iron Ore	Coal	eliminations	Group total
Revenue	29,031	23,883	5,590	256	58,760
Underlying EBITDA	18,187	14,529	832	(601)	32,947
Depreciation and amortisation	(2,500)	(2,186)	(754)	(761)	(6,201)
Impairment losses 1	(26)	(29)	(20)	(31)	(106)
Underlying EBIT	15,661	12,314	58	(1,393)	26,640
Exceptional items 2	−	(365)	−	(2,406)	(2,771)
Net finance costs					(1,455)
Profit before taxation					22,414
Capital expenditure (cash basis)	4,556	3,048	415	1,830	9,849
Profit/(loss) from equity accounted investments, related impairments and expenses	894	(320)	−	−	574
Investments accounted for using the equity method	4,414	−	−	−	4,414
Total assets	50,499	28,276	10,180	32,432	121,387
Total liabilities	7,030	11,157	4,076	42,803	65,066

				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
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

134 BHP Annual Report 2026

				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
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

1. Impairment losses exclude impairment related exceptional items US$2,300 million (2025: exceptional impairment reversal of US$90 million; 2024: exceptional impairment of

US$3,800 million).

2. Exceptional items reported in Group and unallocated include proceeds from insurance settlements of US$64 million (2025: US$ nil; 2024: US$ nil) and costs of US$170 million (2025:

US$135 million; 2024: US$105 million) in relation to Samarco dam failure. Refer to note 3 ‘Exceptional items’ for further information.

Geographical information

		Revenue by location of customer
	2026	2025	2024
	US$M	US$M	US$M
Australia	2,855	2,545	2,393
Europe	2,183	1,121	1,702
China	34,206	32,083	34,752
Japan	5,810	4,177	4,557
India	3,660	2,661	3,371
South Korea	3,218	2,664	3,069
Rest of Asia	3,632	3,331	3,749
North America	2,707	2,251	1,601
South America	489	429	464
	58,760	51,262	55,658

		Non-current assets by location of assets
	2026	2025	2024
	US$M	US$M	US$M
Australia	52,854	50,619	48,991
North America	9,498	9,459	6,979
South America	25,848	23,940	19,927
Rest of world	1,092	742	831
Unallocated assets 1	1,062	1,200	1,296
	90,354	85,960	78,024

1. Unallocated assets comprise non‑current tax assets, deferred tax assets and other financial assets.

Underlying EBITDA

Underlying EBITDA is earnings before net finance costs, depreciation, amortisation and impairments, taxation expense, Discontinued operations and any

exceptional items. Underlying EBITDA includes BHP’s share of profit/(loss) from investments accounted for using the equity method including net finance

costs, depreciation, amortisation and impairments and taxation expense/(benefit).

Exceptional items are excluded from Underlying EBITDA in order to enhance the comparability of such measures from period‑to‑period and provide

investors with further clarity in order to assess the performance of the Group’s operations. Management monitors exceptional items separately. Refer to

note 3 ‘Exceptional items’ for additional detail.

Segment assets and liabilities

Total segment assets and liabilities of reportable segments represents operating assets and operating liabilities, including the carrying amount of equity

accounted investments and predominantly excludes cash balances, loans to associates, interest bearing liabilities as well as current, non‑current and

deferred tax balances. The carrying value of investments accounted for using the equity method represents the balance of the Group’s investment in equity

accounted investments, with no adjustment for any cash balances, interest bearing liabilities or deferred tax balances of the equity accounted investment.

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2 Revenue

Revenue by segment and asset

	2026	2025	2024
	US$M	US$M	US$M
Escondida	17,054	13,177	10,013
Pampa Norte	2,857	2,726	2,375
Copper South Australia	6,011	4,655	4,085
Third‑party products	2,996	1,845	2,021
Other	113	127	72
Total Copper 1	29,031	22,530	18,566
Western Australia Iron Ore	23,726	22,767	27, 805
Third‑party products	19	28	25
Other	138	124	122
Total Iron Ore	23,883	22,919	27, 9 52
BHP Mitsubishi Alliance 2	3,876	3,422	5,873
New South Wales Energy Coal	1,714	1,624	1,793
Total Coal 3	5,590	5,046	7,666
Group and unallocated items 4	256	767	1,474
Total revenue	58,760	51,262	55,658

1. Total Copper revenue includes: copper US$24,485 million (2025: US$19,400 million; 2024: US$16,107 million) and other US$4,546 million (2025: US$3,130 million; 2024: US$2,459 million).

Other consists of gold, silver, uranium, zinc and molybdenum.

2. Includes Blackwater and Daunia revenue until their divestment on 2 April 2024.

3. Total Coal revenue includes: steelmaking coal US$3,804 million (2025: US$3,394 million; 2024: US$5,793 million) and energy coal US$1,786 million (2025: US$1,652 million;

2024: US$1,873 million).

4. Group and unallocated items revenue includes: Western Australia Nickel, which transitioned into temporary suspension in December 2024, of US$245 million (2025: US$758 million;

2024: US$1,473 million) and other revenue US$11 million (2025: US$9 million; 2024: US$1 million).

Revenue consists of revenue from contracts with customers of US$57,495 million (2025: US$51,238 million; 2024: US$55,375 million) and other revenue

predominantly relating to provisionally priced sales of US$1,265 million (2025: US$24 million; 2024: US$283 million).

Recognition and measurement

The Group generates revenue from the production and sale of commodities. Revenue is recognised when or as control of the promised goods or services

passes to the customer. In most instances, control passes when the goods are delivered to a destination specified by the customer, typically on board

the customer’s appointed vessel. Revenue from the provision of services is recognised over time as the services are provided, but does not represent

a significant proportion of total revenue and is aggregated with the respective asset and product revenue for disclosure purposes.

The amount of revenue recognised reflects the consideration to which the Group expects to be entitled in exchange for transferring goods or services.

Where the Group’s sales are provisionally priced, the final price depends on future index prices. The amount of revenue initially recognised is based on

the relevant forward market price. Adjustments between the provisional and final price are accounted for under IFRS 9/AASB 9 ‘Financial Instruments’

(IFRS 9), separately recorded as other revenue and presented as part of the total revenue of each asset. The period between provisional pricing and final

invoicing is typically between 60 and 120 days.

Revenue from the sale of significant by‑products is included within revenue.

The Group applies the following practical expedients:

– expected consideration is not adjusted for the effects of the time value of money if the period between the delivery and when the customer pays for the

promised good or service is one year or less

– no disclosure is provided for information relating to unfulfilled performance obligations, either due to the expected duration of the contract term being

one year or less, or for longer term contracts, because the entity has a right to consideration (and can recognise revenue) for goods delivered

136 BHP Annual Report 2026

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 Financial Statements. Such items included within the Group’s profit for the year are detailed below.

	Gross	Tax	Net
Year ended 30 June 2026	US$M	US$M	US$M
Exceptional items by category
Samarco dam failure	(1,071)	−	(1,071)
Impairment of Jansen project	(2,300)	−	(2,300)
Total	(3,371)	−	(3,371)
Attributable to non‑controlling interests	−	−	−
Attributable to BHP shareholders	(3,371)	−	(3,371)

Samarco Mineração S.A. (Samarco) dam failure

The loss of US$1,071 million (after tax) relates to the Samarco dam failure, which occurred in November 2015, and comprises the following:

Year ended 30 June 2026	US$M
Other income	64
Expenses excluding net finance costs:
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure	(215)
Profit/(loss) from equity accounted investments, related impairments and expenses:
Samarco dam failure provision	(778)
Fair value change on forward exchange derivatives	458
Net finance costs	(600)
Income tax expense	−
Total 1	(1,071)

1. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information.

Jansen project impairment

The Group recognised an impairment charge of US$2,300 million (before and after tax) in relation to the Jansen project. The impairment charge primarily

reflects higher forecast capital intensity for both currently approved phases (Stages 1 and 2) and potential future expansions, reducing the value we would

expect a market participant to attribute to the Jansen project, inclusive of the potential future expansions beyond Stage 2. Refer to note 13 ‘Impairment of

non‑current assets’ for further information on the pre‑tax impairment.

The exceptional items relating to the years ended 30 June 2025 and 30 June 2024 are detailed below.

30 June 2025

	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)

Samarco Mineração S.A. (Samarco) dam failure

The loss of US$914 million (after tax) related to the Samarco dam failure, which occurred in November 2015, and comprised 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.

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3 Exceptional items continued

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.

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$1.0 billion of this deferred and contingent

consideration has been paid by Whitehaven Coal as at 30 June 2026.

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.

138 BHP Annual Report 2026

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).

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 2026 are shown in the tables below and have been treated as an exceptional item.

	2026	2025	2024
Financial impacts of Samarco dam failure	US$M	US$M	US$M
Income statement
Other income 1	64	−	−
Expenses excluding net finance costs:
Costs incurred directly by BHP Brasil and other BHP entities in relation to the Samarco dam failure 2	(215)	(211)	(139)
Profit/(loss) from equity accounted investments, related impairments and expenses:
Samarco dam failure provision 3	(778)	(659)	(2,833)
Fair value change on forward exchange derivatives 4	458	414	(199)
Loss from operations	(471)	(456)	(3,171)
Net finance costs 5	(600)	(458)	(506)
Loss before taxation	(1,071)	(914)	(3,677)
Income tax expense 6	−	−	(85)
Loss after taxation	(1,071)	(914)	(3,762)
Balance sheet movement
Other financial assets/(liabilities) 7	12	441	(280)
Trade and other receivables	29	–	–
Trade and other payables	(14)	29	(4)
Tax liabilities	−	−	(85)
Provisions	652	656	(2,824)
Net decrease/(increase) in liabilities	679	1,126	(3,193)

		2026		2025		2024
		US$M		US$M		US$M
Cash flow statement
Loss before taxation		(1,071)		(914)		(3,677)
Adjustments for:
Samarco dam failure provision 3	778		659		2,833
Fair value change on forward exchange derivatives 4	(458)		(414)		199
Proceeds from/(settlement of) cash management related instruments	455		(17)		218
Net finance costs 5	600		458		506
Changes in assets and liabilities:
Trade and other receivables	(29)		−		−
Trade and other payables	14		(29)		4
Net operating cash flows		289		(257)		83
Net investment and funding of equity accounted investments 8		(2,030)		(1,773)		(640)
Net investing cash flows		(2,030)		(1,773)		(640)
Net decrease in cash and cash equivalents		(1,741)		(2,030)		(557)

1. Proceeds from insurance settlements.

2. Includes legal and advisor costs incurred.

3. US$575 million (2025: US$540 million; 2024: US$3,700 million) change in estimate and US$203 million (2025: US$119 million; 2024: US$(867) million) exchange translation.

4. 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.

5. Amortisation of discounting of provision.

6. Includes tax on forward exchange derivatives and other taxes incurred during the period.

7. Includes forward exchange contracts described in 4 above, and Senior notes issued by Samarco as part of its Judicial Reorganisation in September 2023.

8. Includes US$2,030 million utilisation of the Samarco dam failure provision including payments under the Brazil Settlement Agreement ratified on 6 November 2024

(2025: US$1,773 million). FY2024 comprises utilisation of the Samarco dam failure provision US$515 million and US$125 million provided to Samarco following approval

of the Judicial Reorganisation.

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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.

Provision related to the Samarco dam failure

		2026		2025
		US$M		US$M
At the beginning of the financial year		5,849		6,505
Movement in provision		(652)		(656)
Comprising:
Utilised	(2,030)		(1,773)
Adjustments charged to the income statement:
Change in cost estimate	575		540
Amortisation of discounting impacting net finance costs	600		458
Exchange translation	203		119
At the end of the financial year		5,197		5,849
Comprising:
Current		1,653		2,958
Non‑current		3,544		2,891
At the end of the financial year		5,197		5,849

Samarco dam failure provision and contingencies

As at 30 June 2026, BHP Brasil has identified a provision and certain contingent liabilities arising as a consequence of the Samarco dam failure.

The provision reflects the future cost estimates associated with the obligations set out in the Settlement Agreement, along with estimates associated with

the United Kingdom group action claim (see below).

Contingent liabilities will only be resolved when one or more uncertain future events occur or related impacts become capable of reliable measurement

and, as such, determination of contingent liabilities disclosed in the Financial Statements requires significant judgement regarding the outcome of

future events. A number of the claims below do not specify the amount of damages sought and, where this is specified, amounts could change as the

matter progresses.

Ultimately, future changes in all those matters for which a provision has been recognised or contingent liability disclosed could have a material adverse

impact on BHP’s business, competitive position, cash flows, prospects, liquidity and shareholder returns.

The following table summarises the current status of significant ongoing matters relating to the Samarco dam failure, along with developments during the

period, and the associated treatment in the Financial Statements:

			Contingent
Item		Provision	liability
Samarco dam failure – Settlement Agreement
On 25 October 2024 the Federal Government of Brazil, State of Minas Gerais, State of Espirito Santo, public prosecutors and public defenders (Public Authorities) entered into an agreement with Samarco Mineração S.A. (Samarco) and its shareholders, BHP Billiton Brasil Ltda. (BHP Brasil) and Vale S.A. (Vale) (together, the Companies) to settle claims relating to the Samarco
dam failure (Settlement Agreement). On 6 November 2024, the Settlement Agreement was fully ratified by the Brazilian Supreme
Court. On 15 May 2025, the decision that ratified the Settlement Agreement became final and unappealable.
Over the years, the Companies and public authorities entered into agreements for the remediation of damages resulting from the Samarco dam failure, including the March 2016 Framework Agreement, which established the Renova Foundation and the environmental and socioeconomic programs for remediation and compensation, and others. The obligations provided for in those previous agreements, including the Framework Agreement, were extinguished and replaced by the Settlement Agreement.
The Settlement Agreement delivers a full and final settlement of the obligations under the Framework Agreement and of the main public civil actions and related proceedings brought by the Public Authorities in relation to the Samarco dam failure, including the public civil action filed in May 2016 by the Brazilian Federal Public Prosecutors’ Office, seeking R$155 billion
for reparation, compensation and social, individual and collective moral damages.
The financial value of the Settlement Agreement, as at the announcement date, was R$170 billion (approximately
US$31.7 billion) 1 on a 100 per cent basis. This amount includes R$38 billion (approximately US$7.9 billion) 1 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 for the execution of measures provided for in the Settlement Agreement (Obligation to Pay), and additional
performance obligations for an estimated financial value of approximately R$32 billion (approximately US$5.8 billion) 1
to be carried out by Samarco in accordance with the terms of the Settlement Agreement (Obligations to Perform). These obligations include remediation and compensation programs that are expected to be completed over the next 15 years.
The Settlement Agreement provides R$8 billion (approximately US$1.4 billion) 1 to eligible Indigenous peoples and Traditional
communities, with the allocation of funds to be determined following a consultation process led by the Federal Government. The Krenak Indigenous community settled their claim through a parallel agreement.
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.

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.

140 BHP Annual Report 2026

				Contingent
Item			Provision	liability
Samarco dam failure – Settlement Agreement continued
The Group has considered the outcomes of the Settlement Agreement, including the estimated costs of executing the Obligations to Perform and, the extent to which Samarco may be in a position to fund any future outflows to measure the provision related to the Samarco dam failure at 30 June 2026. The amounts provided include the Group’s best estimate
of outflows required to settle all obligations arising from the Settlement Agreement.
Uncertainty remains around the Obligations to Perform, and there is a risk that outcomes may be materially higher or lower than amounts reflected in BHP Brasil’s provision for the Samarco dam failure. Key areas of uncertainty include the future costs relating
to the Obligations to Perform programs and the extent to which Samarco is able to directly fund the settlement obligations. Further information on the key areas of estimation uncertainty is provided in the ‘Key judgements and estimates’ section below.
There is also risk in relation to claims brought in Brazil that seek to, among other things, change the eligibility parameters
of the Settlement Agreement. The Companies are defending these claims.
BHP Brasil, Samarco and Vale have maintained security under the Governance Agreement ratified on 8 August 2018, comprising insurance bonds and a charge over certain Samarco assets. On 6 August 2025, the Federal Court released
this requirement, in line with the Settlement Agreement, which does not mandate maintaining the existing security, and the decision is now final.
Australian class action complaint
In on behalf of persons who acquired shares in BHP Group Limited or BHP Group Plc (now BHP Group (UK) Ltd) in periods	2018,	BHP Group Limited was named as a defendant in a shareholder class action filed in the Federal Court of Australia
prior to the Samarco dam failure.
In September 2025, BHP reached an agreement to settle the Australian class action for A$110 million (US$74 million), inclusive of interest and costs, with no admission of liability. In December 2025, the Federal Court of Australia approved
the settlement of the Australian class action.
The Group has paid the settlement amount hence there is no remaining liability at 30 June 2026. The insurance proceeds
of US$64 million received from the Group’s external insurers have been recognised as other income.
United Kingdom group 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 in 2018 on behalf of certain
individuals, municipalities, businesses, faith based institutions and communities in Brazil allegedly impacted by the Samarco dam failure, some of whom are eligible for and have been compensated through the Settlement Agreement.
In January 2024, the BHP Defendants were served with a new group action filed in the courts of England on behalf of additional individuals and businesses in Brazil allegedly impacted by the Samarco dam failure. The new action makes
broadly the same claims as the original action and the amount of damages sought in these claims is unspecified. The claims have been stayed by the English court pending an application for consolidation with the original action.
In July 2024, the BHP Defendants, BHP Brasil and Vale entered into an agreement (BHP and Vale Agreement) – without
any admission of liability in any proceedings – whereby: (i) Vale will pay 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 BHP and Vale
Agreement); and (ii) BHP Brasil will pay 50% of any amounts that may be payable by Vale to the claimants in the Netherlands
collective action claim discussed below (or by Vale or its related parties to claimants in any other proceedings in Brazil, England or the Netherlands covered by the BHP and Vale Agreement). The BHP and Vale 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. The Group has considered the BHP and Vale Agreement when determining its provision for the UK group action claim and have taken into account amounts to be received from Vale.
In November 2025, the English High Court found the BHP Defendants liable under Brazilian law for the 2015 Samarco
dam failure on the basis that it is a ‘polluter’ under Brazilian environmental law and at fault under the Brazilian civil code.
The English High Court rejected the argument that the BHP Defendants are liable under Brazilian corporate law. The decision relates to events that occurred in the period before November 2015. The Court’s findings regarding Brazilian
limitation periods could lead to attempts to join further claimants to the proceedings. The English High Court also found that certain of the waivers and releases signed by claimants who have already received compensation in Brazil are valid, and the claimants have accepted these claims will be discontinued, reducing the size and value of the claims in the UK group
action significantly. The Group anticipates at least 240,000 claims will be discontinued as a result of these findings. The BHP
Defendants did not obtain permission to appeal the liability decision and will continue to defend the UK group action.
A stage 2 trial will decide generic issues of causation and quantification and whether losses claimed by certain lead
claimants were caused by the dam failure. The trial is scheduled for April 2027 to March 2028. Following any decision and appeals in that trial, a stage 3 trial may also be required, where each remaining claimant would need to prove their individual
damages before the BHP Defendants are required to make any payments to them. This third trial is unlikely to occur before 20	29. At 30 June 2025, the UK group action was disclosed as a contingent liability, as the Group’s liability was yet to be
established. As a result of the English High Court decision, BHP has updated its Samarco dam failure provision to reflect
its best estimate of potential cash outflows in relation to the claim.
Given the status of the claim, significant uncertainty remains around the extent of any potential outflow and there is a risk
that outcomes may be materially higher or lower than amounts reflected in the Group’s provision for the Samarco dam failure.
Key areas of uncertainty include findings of stage 2 on whether losses were caused by the dam failure, and the number of individuals in stage 3 who are able to prove damage and any amounts to be awarded. Further information on the key areas
of estimation uncertainty is provided in the ‘Key judgements and estimates’ section below.
Vale and Samarco’s Netherlands collective action claim
In March 2024, a collective action complaint was filed in the Netherlands against Vale and a Dutch subsidiary of Samarco
for compensation relating to the Samarco dam failure. That complaint, which formally commenced in February 2025, indicates that these claims were filed on behalf of certain individuals, municipalities, businesses, associations and faith
based institutions allegedly impacted by the Samarco dam failure who are not also claimants in the UK group action claims
referred to above. Vale and Samarco’s Dutch subsidiary have challenged the Dutch Court’s jurisdiction to hear the claim and the Dutch Court has provisionally indicated that a decision will be handed down in October 2026. BHP is not a defendant in the Netherlands proceedings.
Any amounts payable by Vale and Samarco under this claim will be subject to the BHP and Vale Agreement referred to in the UK group action claim above.

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1 Consolidated Financial Statements continued

		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 appealed. The trial commenced
on 11 March 2026 and was adjourned until 3 September 2026.
Civil public actions commenced by Associations concerning the use of TANFLOC for water treatment
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, inquiries and investigations
BHP Brasil is among the Companies named as defendants in a number of legal proceedings initiated by individuals, indigenous and traditional persons and their communities, non‑governmental organisations, corporations, municipalities and other governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The other defendants
include Vale, Samarco and Fundação Renova.
The lawsuits include claims for compensation, environmental reparation and violations of Brazilian environmental and other laws, among other matters. The lawsuits seek various remedies including reparation costs, compensation to injured
individuals and families of the deceased, recovery of personal and property losses, moral damages and injunctive relief.
Certain of these legal proceedings are outside the scope of the Settlement Agreement.
In October 2024, certain Brazilian municipalities, who are claimants in the UK group action claims referred to above, brought
criminal contempt proceedings against the BHP Defendants in relation to their alleged involvement in a constitutional claim
brought by a third‑party Brazilian mining association (IBRAM) before the Brazilian Supreme Court. In June 2025, the High
Court in London rejected the BHP Defendants’ application to strike out the proceedings. That decision was overturned on appeal in favour of the BHP Defendants in March 2026, and following an unsuccessful application for permission to appeal
to the UK Supreme Court by the Claimants, the contempt proceedings have been struck out and brought to an end.
In addition, actions for alleged damages, fees and/or expenses related to claims concerning the Samarco dam failure have been threatened, and may in the future be brought against the Group.
Government inquiries, studies and investigations relating to the Samarco dam failure and actions taken in response to it have also been commenced by numerous agencies and individuals of the Brazilian government and may still be ongoing.
Additional legal proceedings and government investigations relating to the Samarco dam failure, including the use of Tanfloc
for water treatment, could be brought against BHP Brasil and other Group entities in Brazil or other jurisdictions. The outcomes
of these claims, investigations and proceedings remain uncertain and continue to be disclosed as contingent liabilities.

Commitments

Under the terms of the Samarco joint venture agreement, BHP Brasil does not have an existing obligation to fund Samarco. However, under the

Settlement Agreement, while Samarco is the primary obligor for the Settlement Agreement obligations, BHP Brasil and Vale are each secondary obligors

of any obligation that Samarco cannot fund (including as restricted by the terms of the Judicial Reorganisation Plan) or perform in proportion to their

shareholding at the time of the dam failure, which is 50% each.

BHP Brasil has approved preliminary funding of up to US$1.3 billion to Samarco for the Settlement Agreement obligations during calendar year 2026.

Key judgements and estimates

Judgements

The outcomes of litigation are inherently difficult to predict and significant judgement has been applied in assessing the likely outcome of legal claims

and determining which legal claims require recognition of a provision or disclosure of a contingent liability. The facts and circumstances relating to

these cases are regularly evaluated in determining whether a provision for any specific claim is required.

Management has determined that a provision can be recognised at 30 June 2026 to reflect the estimated costs associated with obligations under

the Settlement Agreement, along with estimates associated with the United Kingdom group action claim. It is not yet possible to provide a range

of possible outcomes or a reliable estimate of potential future exposures to BHP in connection to the contingent liabilities noted above, given

their status.

Estimates

The provision for the Samarco dam failure reflects the Group’s estimate of the costs to meet the Group’s obligations under the Settlement

Agreement, along with estimates associated with the United Kingdom group action claim and requires the use of significant judgements,

estimates and assumptions.

While the provision has been measured based on the latest information available, changes in facts and circumstances are likely in future reporting

periods and may lead to material revisions to these estimates and there is a risk that outcomes may be materially higher or lower than amounts

currently reflected in the provision. However, it is currently not possible to determine what facts and circumstances may change, therefore revisions

in future reporting periods due to the key estimates and factors outlined below cannot be reliably measured. The key estimates that may have

a material impact upon the provision in the next and future reporting periods include:

4 Significant events – Samarco dam failure continued

142 BHP Annual Report 2026

Key judgements and estimates continued

Estimates continued

– the cost of compensation to individuals, small businesses, Municipalities and Indigenous and Traditional communities;

– the extent to which Samarco is able to directly fund any future obligations relating to the Settlement Agreement. Samarco’s long‑term

cash flow generation remains highly sensitive to factors including its ability to return to full production capacity, commodity prices and

foreign exchange rates; and

– the cash outflows associated with the United Kingdom group action claim including any findings from potential second and third stage trials

regarding whether losses were caused by the dam failure, the number of individuals able to prove damage and any amounts to be awarded

(including legal costs).

The provision may also be affected by factors including, but not limited to updates to foreign exchange and discount rates. To limit the Group’s

exposure to potential Brazilian reais foreign exchange volatility, the Group has entered into forward exchange contracts, predominantly covering

the period up to FY2028. A 0.5 per cent change in the discount rate would, in isolation, change the provision by approximately US$50 million.

In addition, the provision may be impacted by decisions in, or resolution of, existing and potential legal claims in Brazil including in relation

to eligibility under, and adherence to, the Settlement Agreement and claims in other jurisdictions, including the claim filed in the Netherlands

against Vale and a Dutch subsidiary of Samarco.

Given these factors, future actual cash outflows may differ from the amounts currently provided and changes to any of the key assumptions

and estimates outlined above could result in a material impact to the provision in the next and future reporting periods.

The following section provides disclosure of matters to which Samarco (and not the Group) is a party.

Samarco

Dam failure related provision and contingencies

In addition to its provisions in relation to the Settlement Agreement as at 30 June 2026, Samarco has recognised a provision of US$48 million

(30 June 2025: US$87 million), based on currently available information.

The magnitude, scope and timing of these additional costs are subject to a high degree of uncertainty and Samarco has indicated that it

anticipates that it will incur future costs beyond those provided. These uncertainties are likely to continue for a significant period and changes to

key assumptions could result in a material change to the amount of the provision in future reporting periods. Any such unrecognised obligations are

therefore contingent liabilities and, at present, it is not practicable to estimate their magnitude or possible timing of payment. Accordingly, it is also

not possible to provide a range of possible outcomes or a reliable estimate of total potential future exposures at this time.

Samarco is also named as a defendant in a number of other legal proceedings initiated by individuals, non‑governmental organisations, corporations

and governmental entities in Brazilian Federal and State courts following the Samarco dam failure. The lawsuits include claims for compensation,

environmental rehabilitation and violations of Brazilian environmental and other laws, among other matters. The lawsuits seek various remedies

including rehabilitation costs, compensation to injured individuals and families of the deceased, recovery of personal and property losses, moral

damages and injunctive relief. In addition, government inquiries and investigations relating to the Samarco dam failure have been commenced by

numerous agencies of the Brazilian government and are ongoing. Given the status of proceedings it is not possible to provide a range of possible

outcomes or a reliable estimate of total potential future exposures to Samarco.

Additional lawsuits and government investigations relating to the Samarco dam failure could be brought against Samarco.

Samarco has also identified a number of individually immaterial tax‑related uncertainties which have been reflected, where appropriate, in the

Group’s share of associate and joint venture contingent liabilities presented in note 32 ‘Contingent liabilities’.

Samarco insurance

Samarco has standalone insurance policies in place with Brazilian and global insurers. Insurers’ loss adjusters or claims representatives continue

to investigate and assist with the claims process for matters not yet settled. As at 30 June 2026, an insurance receivable has not been recognised

by Samarco in respect of ongoing matters.

Samarco non-dam failure related provisions and contingent liabilities

The following non‑dam failure related matters pre‑date and are unrelated to the Samarco dam failure. Samarco is currently contesting aspects

of both of these matters in the Brazilian courts. Given the status of these tax matters, the timing of resolution and potential economic outflow

for Samarco is uncertain.

Brazilian Social Contribution Levy

Samarco has received tax assessments for the alleged non‑payment of Brazilian Social Contribution Levy for the calendar years 2007‑2014.

Based on its assessment of currently available information as at 30 June 2026, Samarco recognised provisions of US$0.4 billion, of which

US$0.2 billion has been paid into a court deposit (30 June 2025: provisions of US$0.4 billion, of which US$0.2 billion has been paid into a court

deposit). As at 30 June 2026, BHP Brasil’s 50% share of the impact of the provision, net of court deposits paid, recognised by Samarco is reflected

in the Group’s equity accounting for Samarco.

Brazilian corporate income tax rate

Samarco has received tax assessments, and disclosed contingent liabilities, for the alleged incorrect calculation of Corporate Income Tax (IRPJ)

in respect of the 2000–2003 and 2007–2014 income years totalling approximately US$1.1 billion (30 June 2025: US$1.0 billion).

Brazilian mining royalties

Samarco has received assessments, and disclosed contingent liabilities, for the alleged incorrect calculation of Financial Compensation for the

Exploitation of Mineral Resources (CFEM) in respect of the period 1998–2017 totalling approximately US$0.4 billion (30 June 2025: US$0.4 billion).

143

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

5 Expenses and other income

	2026	2025	2024
	US$M	US$M	US$M
Employee benefits expense:
Wages and salaries	5,198	5,017	4,633
Employee share awards	123	127	112
Social security costs	6	5	5
Pension and other post‑retirement obligations	442	399	374
Less employee benefits expense classified as exploration and evaluation expenditure	(69)	(61)	(49)
Changes in inventories of finished goods and work in progress	(1,093)	433	(289)
Raw materials and consumables used	6,356	5,950	6,536
Freight and transportation	2,110	2,029	2,270
External services	5,418	5,726	5,795
Third‑party commodity purchases	3,171	1,991	1,977
Net foreign exchange losses	184	85	23
Fair value change on derivatives 1	130	(58)	84
Government royalties paid and payable	2,887	2,608	3,571
Exploration and evaluation expenditure incurred and expensed in the current period	347	346	399
Depreciation and amortisation expense	6,201	5,540	5,295
Impairment net of reversals:
Property, plant and equipment	2,399	106	3,833
Goodwill and other intangible assets	7	2	57
All other operating expenses	2,162	2,074	2,124
Total expenses	35,979	32,319	36,750
(Gain)/loss on disposal of subsidiaries and operations 2	(65)	117	(915)
Other income 3	(449)	(485)	(370)
Total other income	(514)	(368)	(1,285)

1. Fair value change on derivatives is principally related to commodity price contracts, foreign exchange contracts and embedded derivatives used in the ordinary course of business as well

as derivatives used as part of the funding of dividends.

2. Includes gain on disposal of the Group’s interest in SolGold following takeover by Jiangxi Copper Company and on the divestment of the Carajás assets in Brazil to a wholly‑owned

subsidiary of CoreX Holding completed on 2 April 2026 net of the impact of fair value remeasurement of Blackwater and Daunia divestment related contingent consideration.

FY2024 mainly relates to the gain on divestment of Blackwater and Daunia mines. Refer to note 3 ‘Exceptional items’ for further information.

3. Other income is generally income earned from transactions outside the course of the Group’s ordinary activities and may include certain management fees from non‑controlling interests

and joint arrangements, royalties, insurance recoveries, energy sales and commission income.

Recognition and measurement

Other income is recognised when it is probable that the economic benefits associated with a transaction will flow to the Group and can be reliably

measured. Dividend income is recognised upon declaration.

144 BHP Annual Report 2026

6 Income tax expense

	2026	2025	2024
	US$M	US$M	US$M
Total taxation expense comprises:
Current tax expense	9,708	7,033	7,4 35
Deferred tax (benefit)/expense	(320)	177	(988)
Total taxation expense	9,388	7, 210	6,447

	2026	2025	2024
	US$M	US$M	US$M
Factors affecting income tax expense for the year
Income tax expense differs to the standard rate of corporation tax as follows:
Profit before taxation	22,414	18,353	16,048
Tax on profit at Australian prima facie tax rate of 30 per cent	6,724	5,506	4,814
Derecognition of deferred tax assets and current year tax losses	1,986	1,036	666
Tax on remitted and unremitted foreign earnings	513	354	224
Amounts (over)/under provided in prior years	(7)	(57)	(25)
Foreign exchange adjustments	(24)	21	(79)
Tax effect of profit/(loss) from equity accounted investments, related impairments and expenses 1	(35)	78	737
Recognition of previously unrecognised tax assets	(88)	(127)	(110)
Impact of tax rates applicable outside of Australia	(1,538)	(1,132)	(556)
Other 2	460	451	344
Income tax expense	7,9 91	6,130	6,015
Royalty‑related taxation (net of income tax benefit)	1,397	1,080	432
Total taxation expense	9,388	7, 210	6,447

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 current tax expense related to Pillar Two income taxes of US$37 million (2025: US$1 million; 2024: US$ nil).

Income tax recognised in other comprehensive income is as follows:

	2026	2025	2024
	US$M	US$M	US$M
Income tax effect of:
Items that may be reclassified subsequently to the income statement:
Hedges:
(Losses)/gains taken to equity	72	(104)	10
Losses/(gains) transferred to the income statement	(39)	118	(15)
Others	−	−	−
Income tax credit/(charge) relating to items that may be reclassified subsequently to the income statement	33	14	(5)
Items that will not be reclassified to the income statement:
Re‑measurement (losses)/gains on pension and medical schemes	4	3	(13)
Income tax credit/(charge) relating to items that will not be reclassified to the income statement	4	3	(13)
Total income tax credit/(charge) relating to components of other comprehensive income 1	37	17	(18)

1. Included within total income tax relating to components of other comprehensive income is US$37 million relating to deferred taxes and US$ nil relating to current taxes

(2025: US$17 million and US$ nil; 2024: US$(18) million and US$ nil).

145

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

6 Income tax expense continued

Recognition and measurement

Taxation on the profit/(loss) for the year comprises current and deferred tax. Taxation is recognised in the income statement except to the extent

that it relates to items recognised directly in equity or other comprehensive income, in which case the tax effect is also recognised in equity or other

comprehensive income.

Current tax	Deferred tax		Royalty-related taxation
Current tax is the	Deferred tax is the tax expected to be payable or recoverable on differences between the carrying		Royalties are treated as
expected tax on	amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the		taxation arrangements
the taxable income	computation of taxable profit, and is accounted for in accordance with IAS 12/AASB 112 ‘Income Taxes’		(impacting income tax
for the year, using	(IAS 12).		expense/(benefit)) when
tax rates and	Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be		they are imposed under
laws enacted or	available against which the temporary differences can be utilised.		government authority and
substantively enacted			the amount payable is
at the reporting date,	Deferred tax is not recognised for temporary differences relating to:		calculated by reference
and any adjustments	–	initial recognition of goodwill	to revenue derived (net of
to tax payable in	–	initial recognition of assets or liabilities in a transaction that is not a business combination and that	any allowable deductions)
respect of previous	affects neither accounting nor taxable profit, except where the transaction gives rise to equal and		after adjustment for
years.	offsetting 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 that
	the timing of the reversal of the temporary difference and it is probable that they will not reverse in the		do not satisfy these criteria
		foreseeable future	are recognised as current
	Deferred tax is measured at the tax rates that are expected to be applied when the asset is realised		liabilities and included in
	or the liability is settled, based on the laws that have been enacted or substantively enacted at the		expenses.
	reporting date.
	Current and deferred tax assets and liabilities are offset when the Group has a legally enforceable right
	to offset and when the tax balances are related to taxes levied by the same tax authority and the Group
	intends to settle on a net basis, or realise the asset and settle the liability simultaneously.

International Tax Reform – Pillar Two Model Rules

The Group has a presence in jurisdictions that have enacted or substantively enacted legislation in relation to the Pillar Two model rules, including

Australia, where its ultimate parent entity is a tax resident. This effectively brings all jurisdictions in which the Group has a presence into the scope of

the rules.

The mandatory temporary exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes

has been applied at 30 June 2026.

The Group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the jurisdictions in which it operates.

The implementation of legislation that is enacted or substantively enacted but not yet in effect is not expected to have a material impact on the Group’s

global effective tax rate.

Uncertain tax and royalty matters

The Group operates across many tax jurisdictions. Application of tax law can be complex and requires judgement to assess risk and estimate outcomes.

These judgements are subject to risk and uncertainty, hence there is a possibility that changes in circumstances will alter expectations, which may impact

the amount of tax assets and tax liabilities, including deferred tax, recognised on the balance sheet and the amount of other tax losses and temporary

differences not yet recognised. The evaluation of tax risks considers both amended assessments received and potential sources of challenge from

tax authorities. The status of proceedings for these matters will impact the ability to determine the potential exposure and in some cases, it may not be

possible to determine a range of possible outcomes or a reliable estimate of the potential exposure.

Tax and royalty matters with uncertain outcomes arise in the normal course of business and occur due to changes in tax law, changes in interpretation of

tax law, periodic challenges and disagreements with tax authorities and legal proceedings.

Tax and royalty obligations assessed as having probable future economic outflows capable of reliable measurement are recognised as current or deferred

tax amounts, as appropriate, as at 30 June 2026. Matters with a possible economic outflow and/or presently incapable of being measured reliably are

contingent liabilities and disclosed in note 32 ‘Contingent liabilities’. Details of uncertain tax and royalty matters relating to Samarco are disclosed in note 4

‘Significant events – Samarco dam failure’.

Key judgements and estimates

Income tax classification

Judgements: The Group’s accounting policy for taxation, including royalty‑related taxation, requires management’s judgement as to the types of

arrangements considered to be a tax on income in contrast to an operating cost.

Deferred tax

Judgements: Judgement is required in:

– determining the amount of deferred tax assets to be recognised based on the likely timing and the level of future taxable profits;

– assessing whether changes in tax regimes or applicable tax rates are substantively enacted at the reporting date;

– recognising deferred tax liabilities arising from temporary differences in investments. These deferred tax liabilities caused principally by retained

earnings held in foreign tax jurisdictions are recognised unless repatriation of retained earnings can be controlled and is not expected to occur in

the foreseeable future.

Estimates: The Group assesses the recoverability of recognised and unrecognised deferred taxes, including losses in Australia, the United States

and Canada on a consistent basis. Estimates and assumptions relating to projected earnings and cash flows as applied in the Group impairment

process are used for operating assets.

These forecasts are also used to estimate the royalty‑related tax rates to apply when the deferred tax assets are realised and deferred tax liabilities

are settled.

146 BHP Annual Report 2026

7 Earnings per share

		2026	2025	2024
Earnings attributable to BHP shareholders (US$M)		9,833	9,019	7, 897
Weighted average number of shares (Million)
–	Basic	5,078	5,073	5,068
–	Diluted	5,089	5,083	5,077
Earnings per ordinary share (US cents)
–	Basic	193.6	17 7. 8	155.8
–	Diluted	193.2	177. 4	155.5
Headline earnings per ordinary share (US cents)
–	Basic	239.1	182.4	195.9
–	Diluted	238.6	182.0	195.6

Earnings on American Depositary Shares represent twice the earnings for BHP Group Limited ordinary shares.

Headline earnings is a Johannesburg Stock Exchange defined performance measure and is reconciled from earnings attributable to ordinary

shareholders as follows:

	2026	2025	2024
	US$M	US$M	US$M
Earnings attributable to BHP shareholders	9,833	9,019	7,897
Adjusted for:
Loss/(gain) on sales of property, plant and equipment, intangibles and investments	1	(3)	(29)
Impairment of property, plant and equipment and intangibles net of reversals	2,405	154	3,905
(Gain)/loss on disposal of subsidiaries and operations	(65)	117	(915)
Tax effect of above adjustments	(30)	(34)	(928)
Subtotal of adjustments	2,311	234	2,033
Headline earnings	12,144	9,253	9,930
Diluted headline earnings	12,144	9,253	9,930

Recognition and measurement

Diluted earnings attributable to BHP shareholders are equal to earnings attributable to BHP shareholders.

The calculation of the number of ordinary shares used in the computation of basic earnings per share is the weighted average number of ordinary shares

of BHP Group Limited outstanding during the period after deduction of the number of shares held by the BHP Group Limited Employee Equity Trust.

For the purposes of calculating diluted earnings per share, the effect of 11 million dilutive shares has been taken into account for the year ended

30 June 2026 (2025: 10 million shares; 2024: 9 million shares). The Group’s only potential dilutive ordinary shares are share awards granted under

employee share ownership plans for which terms and conditions are described in note 26 ‘Employee share ownership plans’. Diluted earnings per share

calculation excludes instruments which are considered antidilutive.

At 30 June 2026, there are no instruments which are considered antidilutive (2025: nil; 2024: nil).

147

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

Working capital

8 Trade and other receivables

	2026	2025
	US$M	US$M
Trade receivables	3,807	3,081
Other receivables	1,283	1,172
Total	5,090	4,253
Comprising:
Current	5,011	4,116
Non‑current	79	137

Recognition and measurement

Trade receivables are recognised initially at their transaction price or, for those receivables containing a significant financing component, at fair value.

Trade receivables are subsequently measured at amortised cost using the effective interest method, less an allowance for impairment, except for

provisionally priced receivables which are subsequently measured at fair value through profit or loss under IFRS 9.

The collectability of trade and other receivables is assessed continuously. At the reporting date, specific allowances are made for any expected credit

losses based on a review of all outstanding amounts at reporting period‑end. Individual receivables are written off when management deems them

unrecoverable. The net carrying amount of trade and other receivables approximates their fair values.

Credit risk

Trade receivables generally have terms of less than 30 days. The Group has no material concentration of credit risk with any single counterparty and is

not dominantly exposed to any individual industry.

Credit risk can arise from the non‑performance by counterparties of their contractual financial obligations towards the Group. To manage credit risk, the

Group maintains Group‑wide procedures covering the application for credit approvals, granting and renewal of counterparty limits, proactive monitoring

of exposures against these limits and requirements triggering secured payment terms. As part of these processes, the credit exposures with all

counterparties are regularly monitored and assessed on a timely basis. The credit quality of the Group’s customers is reviewed and the solvency of each

debtor and their ability to pay the receivable is considered in assessing receivables for impairment.

The 10 largest customers represented 32 per cent (2025: 35 per cent) of total credit risk exposures managed by the Group.

Receivables are deemed to be past due or impaired in accordance with the Group’s terms and conditions. These terms and conditions are determined on

a case‑by‑case basis with reference to the customer’s credit quality, payment performance and prevailing market conditions. As at 30 June 2026, trade

receivables of US$43 million (2025: US$26 million) were past due but not impaired. The majority of these receivables were less than 30 days overdue.

At 30 June 2026, trade receivables are stated net of provisions for expected credit losses of US$3 million (2025: US$2 million).

9 Trade and other payables

	2026	2025
	US$M	US$M
Trade payables	5,699	5,082
Other payables	1,928	1,588
Total	7,627	6,670
Comprising:
Current	7,579	6,637
Non‑current	48	33

10 Inventories

	2026	2025
	US$M	US$M	Definitions
Raw materials and consumables	3,041	2,677	Spares, consumables and other supplies yet to be utilised in the production
			process or in the rendering of services.
Work in progress	3,722	3,186	Commodities currently in the production process that require further processing
			by the Group to a saleable form.
Finished goods	1,618	1,115	Commodities ready‑for‑sale and not requiring further processing by the Group.
Total 1	8,381	6,978
Comprising:			Inventories classified as non‑current are not expected to be utilised or sold within
			12 months after the reporting date or within the operating cycle of the business.
Current	6,591	5,538
Non‑current	1,790	1,440

1. Inventory write‑downs of US$75 million were recognised during the year (2025: US$243 million; 2024: US$69 million). FY2025 included US$133 million associated with the transition

of WAN operations into temporary suspension (2024: US$ nil). Inventory write‑downs of US$13 million made in previous periods were reversed during the year (2025: US$18 million;

2024: US$19 million).

Recognition and measurement

Regardless of the type of inventory and its stage in the production process, inventories are valued at the lower of cost and net realisable value. Cost is

determined primarily on the basis of average costs and involves estimates of expected metal recoveries and work in progress volumes, calculated using

available industry, engineering and scientific data. These estimates are periodically reassessed by the Group taking into account technical analysis and

historical performance.

For processed inventories, cost is derived on an absorption costing basis. Cost comprises costs of purchasing raw materials and costs of production,

including attributable mining and manufacturing overheads taking into consideration normal operating capacity.

Inventory quantities are assessed primarily through surveys and assays.

148 BHP Annual Report 2026

Resource assets

11 Property, plant and equipment

	Land and	Plant and	Other mineral	Assets under	Exploration
	buildings	equipment	assets	construction	and evaluation	Total
	US$M	US$M	US$M	US$M	US$M	US$M
Net book value – 30 June 2026
At the beginning of the financial year	7,411	36,553	12,237	20,046	210	76,457
Additions 1	87	2,265	1,129	9,215	61	12,757
Remeasurements of index‑linked freight contracts 2	−	340	−	−	−	340
Depreciation for the year	(581)	(5,130)	(349)	−	−	(6,060)
Net impairments for the year 3	−	(99)	−	(2,300)	−	(2,399)
Disposals	(5)	(4)	−	(2)	−	(11)
Divestment of subsidiaries and operations	(5)	(144)	(162)	(7)	−	(318)
Transfers and other movements	926	6,285	(562)	(7,318)	(51)	(720)
At the end of the financial year 4	7,833	40,066	12,293	19,634	220	80,046
– Cost	16,607	101,437	20,756	23,890	230	162,920
– Accumulated depreciation and impairments	(8,774)	(61,371)	(8,463)	(4,256)	(10)	(82,874)
Net book value – 30 June 2025
At the beginning of the financial year	7,5 65	34,504	12,227	17,0 97	236	71,629
Additions 1	28	1,653	1,066	8,703	50	11,50 0
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)

1. Includes change in estimates and net foreign exchange gains/(losses) related to the closure and rehabilitation provisions for operating sites. Refer to note 15 ‘Closure and

rehabilitation provisions’.

2. Relates to remeasurements of index‑linked freight contracts including continuous voyage charters (CVCs). Refer to note 22 ‘Leases’.

3. Refer to note 13 ‘Impairment of non‑current assets’ for information on impairments.

4. Includes the carrying value of the Group’s right‑of‑use assets relating to land and buildings and plant and equipment of US$3,030 million (2025: US$2,653 million). Refer to note 22

‘Leases’ for the movement of the right‑of‑use assets.

Recognition and measurement

Property, plant and equipment

Property, plant and equipment is recorded at cost less accumulated depreciation and impairment charges. Cost is the fair value of consideration given

to acquire the asset at the time of its acquisition or construction and includes the direct costs of bringing the asset to the location and the condition

necessary for operation and the estimated future costs of closure and rehabilitation of the facility.

Right‑of‑use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease

liabilities. Refer to note 22 ‘Leases’ for further details. Right‑of‑use assets are presented within the category of property, plant and equipment according

to the nature of the underlying asset leased.

Exploration and evaluation

Exploration costs are incurred to discover mineral resources. Evaluation costs are incurred to assess the technical feasibility and commercial viability

of resources found.

Exploration and evaluation expenditure is charged to the income statement as incurred, except in the following circumstances in which case the

expenditure may be capitalised:

– the exploration and evaluation activity is within an area of interest that was previously acquired as an asset acquisition or in a business combination

and measured at fair value on acquisition or

– the existence of a commercially viable mineral deposit has been established

A regular review of each area of interest is undertaken to determine the appropriateness of continuing to carry forward costs in relation to that area.

Capitalised costs are only carried forward to the extent that they are expected to be recovered through the successful exploitation of the area of interest

or alternatively by its sale. To the extent that capitalised expenditure is no longer expected to be recovered, it is charged to the income statement.

149

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

11 Property, plant and equipment continued

Development expenditure

When proven mineral reserves are determined and development is sanctioned, capitalised exploration and evaluation expenditure is reclassified as

assets under construction within property, plant and equipment. All subsequent development expenditure is capitalised and classified as assets under

construction, provided commercial viability conditions continue to be satisfied.

The Group may use funds sourced from external parties to finance the acquisition and development of assets and operations. Finance costs are

expensed as incurred, except where they relate to the financing of construction or development of qualifying assets. Borrowing costs directly attributable

to acquiring or constructing a qualifying asset are capitalised during the development phase.

In the instance where saleable material is extracted prior to the commissioning of a project/site, sale proceeds are recognised as revenue, with associated

costs also recognised in the income statement. On completion of development, all assets included in assets under construction are reclassified within the

relevant category of property, plant and equipment according to the nature of the underlying asset and depreciation commences.

Other mineral assets

Other mineral assets comprise:

– capitalised exploration, evaluation and development expenditure for assets in production

– mineral rights acquired

– capitalised development and production stripping costs

Overburden removal costs

The process of removing overburden and other waste materials to access mineral deposits is referred to as stripping. Stripping is necessary to obtain

access to mineral deposits and occurs throughout the life of an open‑pit mine. Development and production stripping costs are classified as other mineral

assets in property, plant and equipment.

Stripping costs are accounted for separately for individual components of an ore body. The determination of components is dependent on the mine plan

and other factors, including the size, shape and geotechnical aspects of an ore body. The Group accounts for stripping activities as follows:

Development stripping costs

These are initial overburden removal costs incurred to obtain access to mineral deposits that will be commercially produced. These costs are capitalised

when it is probable that future economic benefits (access to mineral ores) will flow to the Group and costs can be measured reliably.

Once the production phase begins, capitalised development stripping costs are depreciated using the units of production method based on the proven

and probable reserves of the relevant identified component of the ore body which the initial stripping activity benefits.

Production stripping costs

These are post initial overburden removal costs incurred during the normal course of production activity, which commences after the first saleable

minerals have been extracted from the component. Production stripping costs can give rise to two benefits, the accounting for which is outlined below:

		Production stripping activity
Benefits of	Extraction of ore (inventory) in current period.	Improved access to future ore extraction.
stripping activity
Period benefited	Current period	Future period(s)
Recognition and	When the benefits of stripping activities are realised in	When the benefits of stripping activities are improved access to
measurement criteria	the form of inventory produced; the associated costs	future ore; production costs are capitalised when all the following
	are recorded in accordance with the Group’s inventory	criteria are met:
	accounting policy.	–	the production stripping activity improves access to a specific
		component of the ore body and it is probable that economic
		benefits arising from the improved access to future ore production
			will be realised
		–	the component of the ore body for which access has been
			improved can be identified
		–	costs associated with that component can be measured reliably
Allocation of costs	Production stripping costs are allocated between the inventory produced and the production stripping asset using a
	life‑of‑component waste‑to‑ore (or mineral contained) strip ratio. When the current strip ratio is greater than the estimated
	life‑of‑component ratio a portion of the stripping costs is capitalised to the production stripping asset.
Asset recognised from stripping activity	Inventory	Other mineral assets within property, plant and equipment.
Depreciation basis	Not applicable	On a component‑by‑component basis using the units of production
		method based on proven and probable reserves.

Key judgements and estimates

Judgements: Judgement is applied by management in determining the components of an ore body.

Estimates: Estimates are used in the determination of stripping ratios and mineral reserves by component. Changes to estimates related to

life‑of‑component waste‑to‑ore (or mineral contained) strip ratios and the expected ore production from identified components are accounted for

prospectively and may affect depreciation rates and asset carrying values.

150 BHP Annual Report 2026

Depreciation

Depreciation of assets, other than land, assets under construction and capitalised exploration and evaluation that are not depreciated, is calculated

using either the straight‑line (SL) method or units of production (UoP) method, net of residual values, over the estimated useful lives of specific assets.

The depreciation method and rates applied to specific assets reflect the pattern in which the asset’s benefits are expected to be used by the Group.

The UoP depreciation method is used when the pattern of use is best reflected by production volumes. The Group’s proved and probable reserves

for minerals assets are used to determine UoP depreciation unless doing so results in depreciation charges that do not reflect the asset’s useful life.

Where this occurs, alternative approaches to determining reserves are applied, to provide a phasing of periodic depreciation charges that better reflects

the asset’s expected useful life.

Where assets are dedicated to a mine lease, the useful lives below are subject to the lesser of the asset category’s useful life and the life of the mine

lease, unless those assets are readily transferable to another productive mine.

Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell and therefore not depreciated.

Key estimates

The determination of useful lives, residual values and depreciation methods involves estimates and assumptions and is reviewed annually.

Any changes to useful lives or any other estimates or assumptions, including the expected impact of climate change and the transition to a

low‑carbon economy, may affect prospective depreciation rates and asset carrying values. The table below summarises the principal depreciation

methods and rates applied to major asset categories by the Group.

Asset category	Plant and equipment
Buildings – Mine related property	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

Commitments

The Group’s commitments for capital expenditure were US$4,300 million as at 30 June 2026 (2025: US$4,785 million). The Group’s commitments related

to leases are included in note 22 ‘Leases’.

12 Intangible assets

		2026			2025
		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	583	1,924	1,341	377	1,718
Additions	−	284	284	−	160	160
Amortisation for the year	−	(141)	(141)	−	(111)	(111)
Impairments for the year 1	−	(7)	(7)	−	(2)	(2)
Disposals	−	(17)	(17)	−	(17)	(17)
Transfers and other movements	−	70	70	−	176	176
At the end of the financial year	1,341	772	2,113	1,341	583	1,924
– Cost	1,391	2,459	3,850	1,391	2,127	3,518
– Accumulated amortisation and impairments	(50)	(1,687)	(1,737)	(50)	(1,544)	(1,594)

1. Refer to note 13 ‘Impairment of non‑current assets’ for information on impairments.

Recognition and measurement

Goodwill

Where the fair value of the consideration paid for a business acquisition exceeds the fair value of the identifiable assets, liabilities and contingent liabilities

acquired, the difference is treated as goodwill. Goodwill is not amortised and is measured at cost less any impairment losses.

Other intangibles

The Group capitalises amounts paid for the acquisition of identifiable intangible assets, such as software and licences, where it is considered that they

will contribute to future periods through revenue generation or reductions in cost. These assets, classified as finite life intangible assets, are carried in the

balance sheet at the fair value of consideration paid (cost) less accumulated amortisation and impairment charges. Intangible assets with finite useful lives

are amortised on a straight‑line basis over their useful lives. The estimated useful lives are generally no greater than eight years.

Assets classified as held for sale are measured at the lower of their carrying amount and fair value less cost to sell and therefore not amortised.

151

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

13 Impairment of non-current assets

			2026
		Property,	Goodwill	Equity-
		plant and	and other	accounted
		equipment	intangibles	investment¹	Total
Cash generating unit	Segment	US$M	US$M	US$M	US$M
Jansen project	Group and unallocated	2,300	−	−	2,300
Other	Various	101	7	−	108
Total impairment of non‑current assets		2,401	7	−	2,408
Reversal of impairment		(2)	−	−	(2)
Net impairment of non‑current assets		2,399	7	−	2,406

			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

1. Impairment of equity accounted investment is recognised within ‘Profit/(loss) from equity accounted investments, related impairments and expenses’ in the Consolidated

Income Statement.

2. Reversal of impairment was recognised as exceptional. Refer to note 3 ‘Exceptional items’ for further information.

Recognition and measurement

Impairment tests for all non‑financial assets (excluding goodwill) are performed when there is an indication of impairment. Goodwill is tested for

impairment at least annually. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable

amount of the cash generating unit (CGU) to which the asset belongs, being the smallest identifiable group of assets that generates cash inflows that are

largely independent of the cash inflows from other assets or groups of assets. If the carrying amount of the asset or CGU exceeds its recoverable amount,

the asset or CGU is impaired and an impairment loss is charged to the income statement so as to reduce the carrying amount in the balance sheet to its

recoverable amount.

Previously impaired assets (excluding goodwill as impairment losses are not reversed in subsequent periods) are reviewed for possible reversal

of previous impairment at each reporting date. Impairment reversal cannot exceed the carrying amount that would have been determined (net of

depreciation) had no impairment loss been recognised for the asset or CGU. Such reversal is recognised in the income statement.

How recoverable amount is calculated

The recoverable amount is the higher of an asset’s or CGU’s fair value less cost of disposal (FVLCD) and its value in use (VIU).

Fair value less cost of disposal

FVLCD is an estimate of the amount that a market participant would pay for an asset or CGU, less the cost of disposal. FVLCD for mineral assets is

generally determined using independent market assumptions to calculate the present value of the estimated future post‑tax cash flows expected to

arise from the continued use of the asset, including the anticipated cash flow effects of any capital expenditure to enhance production or reduce cost,

and its eventual disposal where a market participant may take a consistent view. Cash flows are discounted using an appropriate post‑tax market

discount rate to arrive at a net present value of the asset, which is compared against the asset’s carrying value. FVLCD may also take into consideration

other market‑based indicators of fair value. FVLCD are based primarily on Level 3 inputs as defined in note 24 ‘Financial risk management’ unless

otherwise noted.

Value in use

VIU is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and

its eventual disposal or closure. VIU is determined by applying assumptions specific to the Group’s continued use and cannot take into account future

development. These assumptions are different to those used in calculating FVLCD and consequently the VIU calculation is likely to give a different result

(usually lower) to a FVLCD calculation.

Impairment of non-current assets (excluding goodwill)

Impairment of non‑current assets relating to the year ended 30 June 2026 are detailed below.

Jansen project

At 30 June 2026, the Group determined the overall recoverable amount of the Jansen project CGU to be approximately US$8,800 million resulting in

an aggregate impairment of US$2,300 million. The impairment is primarily driven by higher forecast capital intensity for both currently approved phases

(Stages 1 and 2) and potential future expansion phases of the Jansen project. The Jansen project CGU is part of the ‘Group and unallocated items’

reportable segment.

The valuation for the Jansen project CGU was determined using FVLCD methodology, applying discounted cash flow techniques based primarily on Level

3 inputs (as defined in note 24 ‘Financial risk management’) and applying a post‑tax real discount rate of 7.0 per cent. The valuation is most sensitive to

changes in the long‑term potash price outlook and the risking applied to potential future expansion phases of the Jansen resource. Given the completion

of detailed reviews of cost and schedule estimates for Stages 1 and 2 completed in FY2026 and the risking applied to future expansion phases in the

current valuation, management does not consider there to be a significant risk of a further material impairment in the next financial reporting period.

All estimates require judgements and assumptions and are subject to risk and uncertainty that may be beyond the control of the Group.

Key judgements and estimates that have been applied in the valuations using DCF techniques are disclosed further below.

No material impairment of non‑current assets for the year ended 30 June 2025.

152 BHP Annual Report 2026

Impairment test for goodwill

The carrying amount of goodwill has been allocated to the CGUs, or groups of CGUs, as follows:

	2026	2025
Cash generating unit	US$M	US$M
Copper SA	1,15 4	1,154
Other	187	187
Total goodwill	1,341	1,341

For the purpose of impairment testing, goodwill has been allocated to CGUs or groups of CGUs, that are expected to benefit from the synergies of

previous business combinations, which represent the level at which management will monitor and manage goodwill.

Copper SA goodwill
Impairment test conclusion	The Group performed an impairment test of the Copper SA Group of CGUs, including goodwill, as at 30 June 2026 and
	an impairment charge was not required.
How did the goodwill arise?	Goodwill of US$1,010 million and US$144 million in relation to the acquisitions of WMC Resources Ltd (2005) and
	OZ Minerals Ltd (2023), respectively.
Segment	Copper SA is part of the Copper reportable segment.
How were the valuations	FVLCD methodology using DCF techniques has been applied in determining the recoverable amount of Copper SA.
calculated?
Significant assumptions and	The valuation of Copper SA exceeded its carrying amount by approximately US$6.6 billion (2025: US$10.5 billion) and
sensitivities	is most 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 (2025: 7.0 per cent).
	Key judgements and estimates that have been applied in the FVLCD valuation are disclosed further below.

Goodwill held by other CGUs is US$187 million (2025: US$187 million). This represents less than one per cent of net assets at 30 June 2026 (2025: less

than one per cent). There was no impairment of other goodwill in the year to 30 June 2026 (2025: US$ nil).

Key judgements and estimates

Judgements: Assessment of indicators of impairment or impairment reversal and the determination of CGUs for impairment purposes require

significant management judgement.

Indicators of impairment may include changes in the Group’s operating and economic assumptions, including those arising from changes in reserves

or mine planning, updates to the Group’s commodity supply, demand and price forecasts, or the possible additional impacts from emerging risks

including those related to climate change and the transition to a low‑carbon economy.

Climate change

The Group’s impairment assessments may be impacted by climate change and the transition to a low‑carbon economy. Further detail is provided in

note 16 ‘Climate change’.

Estimates: The Group performs a recoverable amount determination for an asset or CGU when there is an indication of impairment or

impairment reversal.

Previously impaired CGUs and recently acquired assets recognised at fair value on acquisition may have comparatively lower headroom between

carrying value and recoverable amount, reflecting the basis on which those carrying values have been determined.

When the recoverable amount is measured by reference to FVLCD, in the absence of quoted market prices or binding sale agreement, estimates are

made regarding the present value of future post‑tax cash flows. These estimates are made from the perspective of a market participant and include

prices, future production volumes, operating costs, capital expenditure, closure and rehabilitation costs, taxes, risking factors applied to cash flows

and discount rates. The cash flow forecasts may include net cash flows expected from the extraction, processing and sale of material that does not

currently qualify for inclusion in ore reserves. Reserves and resources are included in the assessment of FVLCD to the extent that it is considered

probable that a market participant would attribute value to them.

When recoverable amount is measured using VIU, estimates are made regarding the present value of future cash flows based on internal budgets

and forecasts and life of asset plans. Key estimates are similar to those identified for FVLCD, although some assumptions and values may differ as

they reflect the perspective of management rather than a market participant.

All estimates require judgements and assumptions and are subject to risk and uncertainty that may be beyond the control of the Group; hence, there

is a possibility that changes in circumstances will materially alter projections, which may impact the recoverable amount of an asset or CGU at each

reporting date. With the exception of the Jansen project CGU impairment mentioned above, no indicators of impairment, or impairment reversal,

were identified across the Group’s remaining CGUs at 30 June 2026 noting that the carrying value of the Spence CGU is the most susceptible

to changes in the significant estimates outlined below in the next reporting period.

The significant estimates impacting the Group’s recoverable amount determinations are:

Commodity prices

Commodity prices were based on latest internal forecasts which assume short‑term market prices will revert to the Group’s assessment of

long‑term price. These price forecasts reflect management’s long‑term views of global supply and demand, built upon past experience of the

commodity markets and are benchmarked with external sources of information such as analyst forecasts. Prices are adjusted based upon

premiums or discounts applied to global price markers to reflect the location, nature and quality of the Group’s production, or to take into

account contracted prices.

Future production volumes

Estimated production volumes were based on detailed data and took into account development plans established by management as part of

the Group’s long‑term planning process. When estimating FVLCD, assumptions reflect all reserves and resources that a market participant

would consider when valuing the respective CGU, which in some cases are broader in scope than the reserves that would be used in a VIU test.

In determining FVLCD, risk factors may be applied to reserves and resources which do not meet the criteria to be treated as proved.

153

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

Key judgements and estimates continued

Cash outflows (including operating costs, capital expenditure, closure and rehabilitation costs and taxes)

Closure cash outflows are based on internal budgets and forecasts and life of asset plans. Cost assumptions reflect management experience and

expectations. Tax assumptions reflect existing and substantively enacted tax and royalty regimes and rates applicable in the jurisdiction of the CGU.

In the case of FVLCD, cash flow projections include the anticipated cash flow effects of any capital expenditure to enhance production or reduce cost

where a market participant may take a consistent view. VIU does not take into account future development.

Discount rates

The Group uses real post‑tax discount rates applied to real post‑tax cash flows. The discount rates are derived using the weighted average cost of

capital methodology. Adjustments to the rates are made for any risks that are not reflected in the underlying cash flows, including country risk.

14 Deferred tax balances

The movement for the year in the Group’s net deferred tax position is as follows:

	2026	2025	2024
	US$M	US$M	US$M
Net deferred tax (liability)/asset
At the beginning of the financial year	(3,428)	(3,265)	(4,243)
Income tax credit/(charge) recorded in the income statement 1	320	(177)	988
Income tax credit/(charge) recorded directly in equity	51	(17)	(6)
Divestment of subsidiaries and operations	32	14	(3)
Other movements	38	17	(1)
At the end of the financial year	(2,987)	(3,428)	(3,265)

1. 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.

For recognition and measurement of deferred tax assets and liabilities, refer to note 6 ‘Income tax expense’. The mandatory temporary exception to

recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes has been applied at 30 June 2026.

The composition of the Group’s net deferred tax assets and liabilities recognised in the balance sheet and the deferred tax expense (credited)/charged

to the income statement is as follows:

	Deferred tax assets			Deferred tax liabilities		(Credited)/charged to the income statement
	2026	2025	2026	2025	2026	2025	2024
	US$M	US$M	US$M	US$M	US$M	US$M	US$M
Type of temporary difference
Depreciation	(507)	(876)	5,296	5,284	(322)	211	(896)
Employee benefits	41	35	(541)	(477)	(65)	(78)	6
Closure and rehabilitation	221	195	(2,111)	(1,826)	(311)	(96)	(29)
Other provisions	39	47	(180)	(202)	29	2	23
Deferred income	−	−	(16)	(9)	(8)	14	(9)
Deferred charges	(38)	(31)	588	551	44	5	(148)
Investments, including foreign tax credits	281	281	660	516	143	96	(6)
Foreign exchange gains and losses	(21)	(14)	32	85	(45)	9	(115)
Tax losses	88	491	(32)	(38)	409	(80)	40
Lease liability	35	23	(749)	(735)	(25)	(19)	45
Other	(25)	(73)	154	357	(169)	113	101
Total	114	78	3,101	3,506	(320)	177	(988)

The composition of the Group’s unrecognised deferred tax assets and liabilities is as follows:

	2026	2025
	US$M	US$M
Unrecognised deferred tax assets
Tax losses and tax credits 1	12,071	10,159
Investments in subsidiaries 2	1,729	1,681
Mineral rights 3	3,249	3,224
Other deductible temporary differences 4	2,101	1,965
Total unrecognised deferred tax assets	19,150	17,02 9
Unrecognised deferred tax liabilities
Investments in subsidiaries 2	2,454	2,349
Total unrecognised deferred tax liabilities	2,454	2,349

154 BHP Annual Report 2026

1. At 30 June 2026, the Group had income and capital tax losses with a tax benefit of US$6,000 million (2025: US$5,621 million) and tax credits of US$6,071 million (2025: US$4,538 million),

which are not recognised as deferred tax assets, because it is not probable that future taxable profits or capital gains will be available against which the Group can utilise the benefits.

The gross amount of tax losses carried forward that have not been recognised is as follows:

	2026	2025
Year of expiry	US$M	US$M
Income tax losses
Not later than one year	34	14
Later than one year and not later than two years	12	16
Later than two years and not later than five years	36	46
Later than five years and not later than 10 years	1,265	872
Later than 10 years and not later than 20 years	1,637	623
Unlimited	5,754	5,752
	8,738	7, 3 23
Capital tax losses
Not later than one year	−	−
Later than two years and not later than five years	−	−
Unlimited	13,321	13,371
Gross amount of tax losses not recognised	22,059	20,694
Tax effect of total losses not recognised	6,000	5,621

Of the US$6,071 million of tax credits, US$4,518 million expires not later than 10 years (2025: US$3,566 million) and US$1,547 million expires later than 10 years and not later than

20 years (2025: US$972 million). The remainder of the tax credits do not have an expiration date.

2. The Group has deferred tax assets and deferred tax liabilities associated with undistributed earnings of subsidiaries that have not been recognised because the Group is able to control the

timing of the reversal of the temporary differences and it is not probable that these differences will reverse in the foreseeable future. Where the Group has undistributed earnings held by

associates and joint interests, the deferred tax liability will be recognised as there is no ability to control the timing of the potential distributions.

3. The Group has deductible temporary differences relating to mineral rights for which deferred tax assets have not been recognised because it is not probable that future capital gains will be

available against which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation.

4. The Group has other deductible temporary differences for which deferred tax assets have not been recognised because it is not probable that future taxable profits will be available against

which the Group can utilise the benefits. The deductible temporary differences do not expire under current tax legislation.

15 Closure and rehabilitation provisions

	2026	2025
	US$M	US$M
At the beginning of the financial year	10,468	9,837
Capitalised amounts for operating sites:
Change in estimate	628	548
Exchange translation	285	(61)
Adjustments charged/(credited) to the income statement:
Change in estimate	17	112
Exchange translation	61	(11)
Other adjustments to the provision:
Amortisation of discounting impacting net finance costs	627	510
Divestment of subsidiaries and operations	(15)	−
Expenditure on closure and rehabilitation activities	(471)	(468)
Other movements	(2)	1
At the end of the financial year	11,598	10,468
Comprising:
Current	645	662
Non‑current	10,953	9,806
Operating sites	7,953	6,908
Closed sites	3,645	3,560

Profile of closure and rehabilitation cash flows

The table below indicates the estimated profile of the Group’s closure and rehabilitation provisions. The profile reflects the undiscounted forecast cash

flows that underpin the provisions. In some instances, the Group has an obligation to rehabilitate and maintain a closed site for an indefinite period.

For the purpose of this analysis, the cashflow period has been restricted to 100 years.

	2026	2025
Proportion of the Group’s undiscounted forecast cash flows	%	%
In one year or less	4	4
In more than one year but not more than two years	2	3
In more than two years but not more than five years	10	10
In more than five years but not more than ten years	20	15
In more than ten years	64	68
Total	100	100

155

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

15 Closure and rehabilitation provisions continued

The Group is required to close and rehabilitate sites and associated facilities at the end of or, in some cases, during the course of production to a

condition acceptable to the relevant authorities, as specified in licence requirements and the Group’s closure performance requirements.

The key components of closure and rehabilitation activities are:

– the removal of all unwanted infrastructure associated with an operation

– the return of disturbed areas to a safe, stable and self‑sustaining condition, consistent with the agreed post‑closure land use

Recognition and measurement

Provisions for closure and rehabilitation are recognised by the Group when:

– it has a present legal or constructive obligation as a result of past events

– it is more likely than not that an outflow of resources will be required to settle the obligation

– the amount can be reliably estimated

Initial recognition and measurement	Subsequent measurement
Closure and rehabilitation provisions are initially	The closure and rehabilitation asset, recognised within property, plant and equipment, is depreciated over
recognised when an environmental disturbance	the life of the operations. The value of the provision is progressively increased over time as the effect of
first occurs. The individual site provisions are an	discounting unwinds, resulting in an expense recognised in net finance costs.
estimate of the expected value of future cash flows	The closure and rehabilitation provision is reviewed at each reporting date to assess if the estimate
required to close the relevant site using current	continues to reflect the best estimate of the obligation. If necessary, the provision is remeasured to
standards and techniques and taking into account	account for factors such as:
risks and uncertainties. Individual site provisions
are discounted to their present value using currency	–	additional disturbance during the period
specific discount rates aligned to the estimated	–	revisions to estimated reserves, resources and lives of operations including any changes to expected
timing of cash outflows.	operating lives arising from the Group’s latest assessment of the potential impacts of climate change
When provisions for closure and rehabilitation	and the transition to a low‑carbon economy
are initially recognised, the corresponding cost is	–	developments in technology
capitalised as an asset, representing part of the cost of acquiring the future economic benefits of	–	changes to regulatory requirements and environmental management strategies
the operation.	–	changes in the estimated extent and costs of anticipated activities, including the effects of inflation and
	movements in foreign exchange rates
	–	movements in interest rates affecting the discount rate applied
	Changes to the closure and rehabilitation estimate for operating sites are added to, or deducted from,
	the related asset and amortised on a prospective basis over the remaining life of the operation, generally
	applying the units of production method.
	Costs arising from unforeseen circumstances, such as the contamination caused by unplanned
	discharges, are recognised as an expense and liability when the event gives rise to an obligation that is
	probable and capable of reliable estimation.

Closed sites

Where future economic benefits are no longer expected to be derived through operation, changes to the associated closure and remediation costs are

charged to the income statement in the period identified. The amount charged to the income statement, inclusive of exchange translation and remediation

costs related to contaminated sites, was US$78 million in the year ended 30 June 2026 (2025: US$101 million; 2024: US$38 million).

Key estimates

Closure cost estimates are generally based on conceptual level studies early in the operating life of an asset with more detailed studies and planning

performed as closure risks (including those related to climate change) are identified and/or as an asset, or parts thereof, near closure. As such, the

recognition and measurement of closure and rehabilitation provisions requires the use of significant estimates and assumptions, including, but not

limited to:

– the extent (due to legal or constructive obligations) of potential activities required for the removal of infrastructure, decharacterisation of tailings

storage facilities and rehabilitation activities

– costs associated with future closure activities

– the extent and period of post‑closure monitoring and maintenance, including water management

– applicable discount rates

– the timing of cash flows and ultimate closure of operations

The extent, cost and timing of future closure activities may also be impacted by the potential physical impacts of climate change and the transition to

a low‑carbon economy. Further detail is provided in note 16 ‘Climate change’.

Estimates for post‑closure monitoring and maintenance reflect the Group’s strategies for individual sites, which may include possible relinquishment.

The period of monitoring and maintenance included in the provision requires judgement and considers regulatory and licencing requirements, the

outcomes of studies and management’s current assessment of stakeholder expectations.

While progressive closure is performed across a number of operations, significant activities are generally undertaken at the end of the production life

at the individual sites, the estimated timing of which is informed by the Group’s current assumptions relating to demand for commodities and carbon

pricing, and their impact on the Group’s long‑term price forecasts.

156 BHP Annual Report 2026

Key estimates continued

Approximately 42 per cent (2025: 44 per cent) of the Group’s total undiscounted forecast cash flows are expected to be incurred after more than

30 years, reflecting the long‑lived nature of many of the Group’s operations which have remaining production lives ranging from 4–79 years

(2025: 4–86 years). The discount rates applied to the Group’s closure and rehabilitation provisions are determined by reference to the currency of the

closure cash flows, the period over which the cash flows will be incurred and prevailing market interest rates (where available). The Group continues

to monitor current market conditions with no change made to the Group’s discount rates in the current year.

While the closure and rehabilitation provisions reflect management’s best estimates based on current knowledge and information, further studies,

trials and detailed analysis of relevant knowledge and resultant closure activities for individual assets continue to be performed throughout the life

of asset. Such studies and analysis can impact the estimated costs of closure activities. Estimates can also be impacted by the emergence of new

closure and rehabilitation techniques, changes in regulatory requirements and stakeholder expectations for closure (including costs associated with

equitable transition), development of new technologies, risks relating to climate change and the transition to a low‑carbon economy, and experience

at other operations. These uncertainties may result in future actual expenditure differing from the amounts currently provided for in the balance sheet.

Sensitivity

A 0.5 per cent increase in the discount rates applied at 30 June 2026 would result in a decrease to the closure and rehabilitation provision of

approximately US$770 million, a decrease in property, plant and equipment of approximately US$532 million in relation to operating sites and an

income statement credit of approximately US$238 million in respect of closed and contaminated sites. In addition, the change would result in a

decrease of approximately US$38 million to depreciation expense and a US$32 million increment in net finance costs due to unwind of discount for

the year ending 30 June 2027.

Given the long‑lived nature of the majority of the Group’s assets, the majority of final closure activities are generally not expected to occur for a

significant period of time.

However, a one‑year acceleration in forecast cash flows of the Group’s closure and rehabilitation provisions, in isolation, would result in an increase

to the provision of approximately US$326 million, an increase in property, plant and equipment of US$198 million in relation to operating sites and an

income statement charge of US$128 million in respect of closed sites and contaminated sites.

16 Climate change

The Group’s current climate change strategy focuses on developing a portfolio of commodities to support the major global shifts shaping our world,

reducing operational greenhouse gas (GHG) emissions (Scopes 1 and 2 from our operated assets), supporting value chain (Scope 3) GHG emissions

reductions, and managing climate‑related risks and opportunities.

Areas of these Financial Statements that may be impacted in connection with this strategy throughout the value creation and delivery cycle of the Group’s

operations, include:

Phase	Area of potential Financial Statement impact
Exploration and acquisition	–	Portfolio decisions
Development and mining/process and logistics	–	Climate‑related transition risks and opportunities and asset carrying values
	–	Climate‑related physical risks and asset carrying values
	–	Acquisition and use of carbon credits
	–	Useful economic lives of property, plant and equipment
	–	Expenditure on operational decarbonisation
Sales, marketing and procurement	–	Expenditure to support value chain decarbonisation
Closure and rehabilitation	–	Timing, scope and expected cost of closure and rehabilitation activities

The significant judgements and key estimates used in the preparation of these Financial Statements reflect the Group’s current planning range (which

implies a projected global average temperature increase of approximately 2.2–2.5°C by CY2100), as described below. At the date of issue of these

Financial Statements, indicators show the appropriate measures are not in place globally to drive decarbonisation at the pace or scale required to achieve

the aim of the Paris Agreement to limit the global average temperature increase to 1.5°C above pre‑industrial levels by CY2100.

The Group continues to monitor global decarbonisation signposts and considers these in updates to its planning range, associated price outlooks and

cost of carbon assumptions. If such signposts indicate the appropriate measures are in place for achievement of a 1.5°C outcome, this would be reflected

in the Group’s planning range.

Changes to the Group’s climate change strategy or global decarbonisation trends may impact the Group’s significant judgements and key estimates,

and result in material changes to financial results, cash flows and the carrying values of certain assets and liabilities in future reporting periods.

Portfolio decisions

Over recent years, the Group has repositioned its portfolio towards commodities that can help enable and support the major global shifts of

decarbonisation, electrification, digitalisation, urbanisation and population growth. Copper supports electrification, including energy transition

infrastructure and digitalisation; iron ore and steelmaking coal are key inputs to steel production needed for construction; and the Group is developing

a world‑class potash asset to support food security and more sustainable land use. Within a decarbonisation context, copper represents a key growth

opportunity reflecting its role in the energy transition. The Group’s strategy includes organic growth and expansion of existing copper assets, as well as

greenfield projects such as Vicuña and Resolution. Refer to note 2 ‘Revenue’, which presents current and prior year revenue by commodity.

157

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

16 Climate change continued

Climate-related transition risks and opportunities and

asset carrying values

Significant judgements and key estimates in relation to the preparation

of these Financial Statements, including asset carrying values and

impairment assessments, are impacted by the Group’s current assessment

of the range of economic and climate‑related conditions that could exist

in the world’s transition to a low‑carbon economy. For example, demand

for the Group’s commodities may decrease due to policy, regulatory

(including carbon pricing mechanisms), legal, technological, market or

societal responses to climate change, resulting in a proportion of a cash

generating unit’s (CGU) reserves becoming incapable of extraction in

an economically viable fashion. Alternatively, technological or market

developments increasing demand for commodities in the portfolio that

help enable decarbonisation may have a positive impact on prices for

those commodities.

The Group’s planning range comprises a ‘most likely’ base case, used as

the basis for judgements and assumptions in these Financial Statements

with probabilistic upside and downside cases for commodity prices that are

designed to capture uncertainty. The planning range reflects the Group’s

proprietary forecasts for the global economy and associated sub‑sectors

(i.e. energy, transport, agriculture and steel) and the resulting market

outlook for core commodities.

Given the complexity and inherent uncertainty of long run forecasting,

the Group periodically reviews key assumptions underpinning its planning

range to reflect new information.

During FY2026, the Group updated the key assumptions underpinning

its planning range to reflect evolving economic and geopolitical

conditions. As a result, the planning range now implies a projected global

average temperature increase of approximately 2.2–2.5°C by CY2100

(compared to around 2°C for the Group’s planning range in FY2025),

reflecting an updated assessment of the Group’s outlook on global

decarbonisation pathways.

The Group reflects the planning range and associated price

outlooks in the internal valuations used as the basis for the Group’s

impairment assessments.

The discount rate used in the internal valuations underpinning impairment

assessments reflects a real post‑tax weighted average cost of capital

(WACC), including country and state risk premia where appropriate

and ranges from 7.0 per cent to 10.0 per cent across the Group

(FY2025: 7.0 per cent to 9.5 per cent). Cash flow forecasts used as

the basis for impairment testing consider asset specific risks, including

climate‑related physical risks and therefore the Group does not apply a

separate climate‑related risk adjustment in the Group’s WACC.

Investment decisions and asset valuations used for the purposes of

impairment testing also consider carbon price assumptions in relevant

regions by applying a carbon price to estimated unmitigated Scopes 1 and

2 GHG emissions over the life of the respective operation. In determining

the Group’s strategy and carbon price forecast, factors including a

country’s current and announced climate policies, targets and societal

factors, such as public acceptance and demographics, are considered.

The Group’s base case projections estimate that carbon prices are likely

to rise over time, ranging from US$0 to US$146 per tCO

by FY2030 and

US$0 to US$250 by FY2050.

Further detail on the Group’s significant judgements and estimates that

inform the planning range and FY2026 impairment assessments, is

included in note 13 ‘Impairment of non‑current assets’.

Climate-related physical risks and asset carrying values

The Group’s operations are exposed to climate‑related physical risks.

These risks may arise from both the increasing severity and/or frequency

of acute events (extreme climatic events, such as floods, cyclones

and heatwaves) and chronic changes (such as prolonged drought,

rising temperatures, and incremental increases in extreme heat days).

The potential effects of these events may be both direct and indirect.

To seek to mitigate operational interruption risk from climate hazards, the

Group considers climate‑related physical risks as part of its capital projects

decision making process, including, where relevant, the incorporation of

weather conditions and climate projections in asset design. As adaptation

measures are generally embedded within the broader capital project

scopes, any current year expenditure would be reflected within the

additions to Property, plant and equipment in note 11 ‘Property, plant

and equipment’.

In addition, where relevant, the Group’s current best estimate of potential

future operational interruptions is reflected in the internal valuations used

as the basis for the Group’s impairment assessments. These estimates

are informed by historical weather disruption patterns in addition to

forward‑looking climate outlooks under different climate scenarios relevant

to asset location and infrastructure.

Further detail on the Group’s significant judgements and estimates

that inform the FY2026 impairment assessments is outlined in note 13

‘Impairment of non‑current assets’.

Assessing climate‑related physical risk is inherently complex and subject

to a high degree of uncertainty. The Group relies on external climate

scenarios, which are periodically updated to reflect the latest scientific

understanding of the impacts of climate change on weather patterns.

Future updates to these scenarios may influence risk assessments and

could result in material changes to financial results and the carrying values

of assets and liabilities in future reporting periods. The timing and nature of

any such changes are subject to significant uncertainty.

Acquisition and use of carbon credits

The Group’s carbon credits, and offsetting strategy is managed at the

Group level. The Group currently acquires carbon credits primarily

for regulatory purposes. The Group’s plan is to achieve its FY2030

operational GHG emissions (Scopes 1 and 2 emissions from the Group’s

operated assets) target through structural abatement, but if there is an

unanticipated shortfall in the pathway to achieve the target, there may be

a need to surrender voluntary carbon credits to close the performance

gap. The Group will not use regulatory carbon credits when determining

whether it has achieved its FY2030 target. The Group may also sell carbon

credits, depending on internal use requirements, or originate carbon

credits through project development or direct investment.

Acquired carbon credits are recognised as an asset initially at cost

and are subsequently subject to impairment and/or net realisable

value assessments. Classification of the asset reflects the intended

manner of use:

– 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) (FY2026: US$ nil, FY2025: US$ nil); or

– Intangible asset – held for regulatory or voluntary surrender

(FY2026: US$22 million, FY2025: US$19 million)

The Group has also recognised prepayments of US$49 million

(FY2025: US$32 million) for the future delivery of carbon credits.

158 BHP Annual Report 2026

Useful economic lives of property, plant and equipment

The determination of useful lives of the Group’s PP&E requires judgement,

including consideration of the Group’s climate change strategy, targets and

goals, decarbonisation plans and the possible impact of transition risks and

opportunities on demand for the Group’s commodities.

Useful lives are reviewed each reporting period, including to ensure they do

not exceed the remaining expected operating life of the operation in which

they are utilised. The remaining lives of the Group’s operations reflect the

Group’s planning range and its underlying climate‑related assumptions.

Diesel combustion remains the single largest source of operational

GHG emissions and the Group’s preferred option to displace diesel is

via electrification. As the pace of development of some decarbonisation

technology has been slowed by Original Equipment Manufacturers,

particularly relating to delays in the displacement of diesel used for

materials movement, the deployment into the Group’s operations is

not anticipated until post FY2030.

The Group’s operational plans continue to assume the progressive

replacement of haul trucks, and other diesel‑powered equipment only at

the end of their useful lives in line with the Group’s regular fleet renewal

programs. Renewal programs are expected to utilise technology available

at the time of the scheduled replacement. As such, expected fleet

decarbonisation did not impact the Group’s existing fleet assets in FY2026.

Expenditure on operational decarbonisation

The Group has a medium‑term target to reduce its operational GHG

emissions (Scopes 1 and 2 from the Group’s operated assets) by at least

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 the reference

year for the long‑term goal, and subsequent performance is adjusted for

acquisitions, divestments and methodology changes.

Operational decarbonisation activities to date have largely focused

on transitioning the Group’s electricity supply to renewable sources.

A significant proportion of the Group’s renewable electricity is currently

sourced through power purchase agreements and judgement is required

in determining the appropriate accounting treatment of such arrangements.

Depending on the specific terms and conditions, power purchase

agreements may be recognised as an expense when incurred, a financial

derivative or a lease liability, with an associated right of use asset.

The majority of operational decarbonisation expenditure is associated

with diesel displacement technologies. In FY2026, the Group incurred

US$65 million of incremental operational decarbonisation spend

(reflecting capital expenditure, operating expenditure and lease payments).

This amount reflects the incremental cost to facilitate the Group’s reduction

in operational GHG emissions.

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.

Expenditure to support value chain decarbonisation

The Group continues to invest in reducing GHG emissions from its value

chain, including through partnership with others to influence technology

innovation and development to support GHG emissions reductions by

steelmaking customers and in the maritime industry.

In FY2026, this included expenditure of approximately US$36 million

to support collaborative partnerships, consortiums, research and

development, trials, pilots 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 climate‑related physical and transition impacts.

In estimating the potential cost of closure activities, the Group considers

factors such as long‑term weather outlooks, for example forecast

changes in rainfall patterns. Closure cost estimates also consider the

impact of the Group’s climate change strategy on the costs and timing

of performing closure activities and the impact of new technology where

appropriately developed and tested. For example, closure cost estimates

largely continue to reflect the use of existing fuel sources for the Group’s

equipment while the Group continues to invest in the development of

alternative fuel sources and fleet electrification.

The estimated cost of closure activities includes management’s current

best estimate in relation to post‑closure monitoring and maintenance,

which may be required for significant periods beyond the completion of

other closure activities and is therefore exposed to potential long‑term

climate‑related impacts. While reflecting management’s current best

estimate, the cost of post‑closure monitoring and maintenance may

change in future reporting periods as the understanding of, and potential

long‑term impacts from a changing climate continue to evolve.

Given the long‑lived nature of the majority of the Group’s assets, many final

closure activities are not expected to occur for a significant period of time.

However:

– The Group acknowledges the wide range of potential energy transition

pathways for harder‑to‑abate industries (including steelmaking), the

impact this may have on demand for steelmaking coal, and ultimately

mine useful 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$44 million.

– The Group continues to progress with its plans to cease mining

at NSWEC by 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 2026.

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’.

159

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1 Consolidated Financial Statements continued

Capital structure

17 Share capital

	2026	2025	2024
	shares	shares	shares
Share capital issued – BHP Group Limited
Opening number of shares	5,075,992,235	5,071,530,817	5,065,820,556
Issue of shares	5,399,471	4,461,418	5,710,261
Purchase of shares by ESOP Trusts	(5,373,388)	(4,438,680)	(5,687,667)
Employee share awards exercised following vesting	4,846,302	4,994,832	5,841,767
Movement in treasury shares under Employee Share Plans	527,086	(556,152)	(154,100)
Closing number of shares	5,081,391,706	5,075,992,235	5,071,530,817
Comprising:
Shares held by the public	5,080,163,098	5,075,290,713	5,070,273,143
Treasury shares	1,228,608	701,522	1,2 5 7, 674

In August 2025, BHP Group Limited issued 2,920,940 fully paid ordinary shares to the BHP Group Limited Employee Equity Trust and Solium Nominees

(Australia) Pty Ltd at A$41.47 per share (2025: 2,370,371 fully paid ordinary shares issued at A$40.84 per share in August 2024; 2024: 2,919,231 fully

paid ordinary shares issued at A$43.52 per share in August 2023) and in April 2026, BHP Group Limited issued 2,478,531 fully paid ordinary shares to

the BHP Group Limited Employee Equity Trust and Computershare Nominees CI Ltd at A$50.37 per share (2025: 2,091,047 fully paid ordinary shares

issued at A$39.62 per share in April 2025; 2024: 2,791,030 fully paid ordinary shares issued at A$43.79 per share in March 2024) to satisfy the vesting of

employee share awards and related dividend equivalent entitlements under those employee share plans.

Share capital of BHP Group Limited at 30 June 2026 is composed of the following categories of shares:

Ordinary shares fully paid	Treasury shares
Each fully paid ordinary share of BHP Group	Treasury shares are fully paid ordinary shares of BHP Group Limited that are held by the ESOP Trusts for
Limited carries the right to one vote at a meeting	the purpose of issuing shares to employees under the Group’s Employee Share Plans. Treasury shares are
of the Company.	recognised at cost and deducted from equity, net of any income tax effects. When the treasury shares are
	subsequently sold or reissued, any consideration received, net of any directly attributable costs and income
	tax effects, is recognised as an increase in equity. Any difference between the carrying amount and the
	consideration, if reissued, is recognised in retained earnings.

18 Other equity

	2026	2025	2024
	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	251	188	166	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	(76)	(16)	27	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	(11)	4	(7)	The cost of hedging reserve represents the recognition of certain
				costs of hedging for example, basis adjustments, which have
				been excluded from the hedging relationship and deferred in other
				comprehensive income until the hedged transaction impacts the
				income statement.
Foreign currency translation reserve	(16)	(14)	(14)	The foreign currency translation reserve represents exchange
				differences arising from the translation of non‑US dollar functional
				currency operations within the Group into US dollars.
Equity investments reserve	14	2	(21)	The equity investment reserve represents the revaluation of
				investments in shares recognised through other comprehensive
				income. Where a revalued financial asset is sold, the relevant
				portion of the reserve is transferred to retained earnings.
Non‑controlling interest contribution	1,503	1,437	1,437	The non‑controlling interest contribution reserve represents the
reserve				excess of consideration received over the book value of net assets
				attributable to equity instruments when acquired by non‑controlling
				interests.
Total reserves	62	(2)	(15)

160 BHP Annual Report 2026

Summarised financial information relating to each of the Group’s subsidiaries with non‑controlling interests (NCI) that are significant to the Group is

shown below:

		2026			2025
		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	4,682			3,630
Non‑current assets	14,850			13,939
Current liabilities	(2,949)			(2,074)
Non‑current liabilities	(5,060)			(5,917)
Net assets	11,523			9,578
Net assets attributable to NCI	4,897	501	5,398	4,071	482	4,553
Revenue	17,054			13,177
Profit after taxation	6,732			4,237
Other comprehensive income	(7)			(9)
Total comprehensive income	6,725			4,228
Profit after taxation attributable to NCI	2,861	332	3,193	1,801	323	2,124
Other comprehensive income attributable to NCI	(3)	−	(3)	(4)	(1)	(5)
Net operating cash flow	7,551			6,263
Net investing cash flow	(2,108)			(2,390)
Net financing cash flow	(4,987)			(3,413)
Dividends paid to NCI	2,032	323	2,355	1,488	385	1,873

While the Group controls Minera Escondida Limitada, the non‑controlling interests hold certain protective rights that restrict the Group’s ability to sell

assets held by Minera Escondida Limitada, or use the assets in other subsidiaries and operations owned by the Group. Minera Escondida Limitada is also

restricted from paying dividends without the approval of the non‑controlling interests.

19 Dividends

	Year ended		Year ended		Year ended
	30 June 2026	30	June 2025	30	June 2024
	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	60	3,048	74	3,749	80	4,065
Interim dividend	73	3,713	50	2,537	72	3,647
	133	6,761	124	6,286	152	7,712

Dividends paid during the period differs from the amount of dividends paid in the Consolidated Cash Flow Statement as a result of foreign exchange gains

and losses between the record date and the payment date of equity distributions. Settlements of US$1 million were made 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 18 August 2026, BHP Group Limited determined a final dividend of 99 US cents per share

(US$5,029 million), which will be paid on 23 September 2026 (30 June 2025: final dividend of 60 US cents per share – US$3,045 million; 30 June 2024:

final dividend of 74 US cents per share – US$3,752 million).

BHP Group Limited dividends for all periods presented are, or will be, fully franked based on a tax rate of 30 per cent.

	2026	2025	2024
	US$M	US$M	US$M
Franking credits as at 30 June	11,210	10,089	9,165
Franking credits arising from the payment of current tax payable/(receivable)	355	(275)	83
Total franking credits available 1	11,565	9,814	9,248

1. The payment of the final 2026 dividend determined after 30 June 2026 will reduce the franking account balance by US$2,156 million.

161

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1 Consolidated Financial Statements continued

20 Provisions for dividends and other liabilities

The disclosure below excludes closure and rehabilitation provisions (refer to note 15 ‘Closure and rehabilitation provisions’), employee benefits,

restructuring and post‑retirement employee benefits provisions (refer to note 27 ‘Employee benefits, restructuring and post‑retirement employee benefits

provisions’) and the provision related to the Samarco dam failure (refer to note 4 ‘Significant events – Samarco dam failure’).

	2026	2025
	US$M	US$M
At the beginning of the financial year	706	710
Dividends determined	6,761	6,286
Charge/(credit) for the year:
Underlying	268	185
Amortisation of discounting impacting net finance costs	6	7
Exchange translation	10	103
Released during the year	(111)	(73)
Utilisation	(149)	(90)
Dividends paid	(6,756)	(6,403)
Divestment of subsidiaries and operations	(10)	−
Transfers and other movements	(23)	(19)
At the end of the financial year	702	706
Comprising:
Current	296	310
Non‑current	406	396

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’ (IFRS 16), certain vessel lease contracts are required to be remeasured at each reporting date to the prevailing freight

index. While these liabilities are included in the Group interest bearing liabilities, they are excluded from the net debt calculation as they do not align with

how the Group assesses net debt for decision making in relation to the Capital Allocation Framework. In addition, the freight index has historically been

volatile which creates significant short‑term fluctuation in these liabilities.

	2026		2025
US$M	Current	Non-current	Current	Non‑current
Interest bearing liabilities
Bank loans	890	3,644	40	3,691
Notes and debentures	855	18,090	1,316	16,337
Lease liabilities	934	2,562	641	2,312
Bank overdraft and short‑term borrowings	−	−	1	−
Other	5	141	20	138
Total interest bearing liabilities	2,684	24,437	2,018	22,478
Less: Lease liability associated with index‑linked freight contracts	401	334	185	148
Less: Cash and cash equivalents
Cash	7,609	−	7, 244	−
Short‑term deposits	10,923	−	4,650	−
Less: Total cash and cash equivalents	18,532	−	11,8 9 4	−
Less: Derivatives included in net debt
Net debt management related instruments 1	12	(1,079)	13	(608)
Net cash management related instruments 2	227	−	(60)	−
Less: Total derivatives included in net debt	239	(1,079)	(47)	(608)
Net debt		8,694		12,924
Net assets		56,321		52,218
Gearing		13.4%		19.8%

1. Represents the net cross currency and interest rate swaps designated as effective hedging instruments included within current and non‑current other financial assets and liabilities.

2. Represents the net forward exchange contracts included within current and non‑current other financial assets and liabilities.

162 BHP Annual Report 2026

Cash and short‑term deposits are disclosed in the cash flow statement net of bank overdrafts and interest bearing liabilities at call.

	2026	2025	2024
	US$M	US$M	US$M
Total cash and cash equivalents	18,532	11,89 4	12,501
Bank overdrafts and short‑term borrowings	−	(1)	(3)
Total cash and cash equivalents, net of overdrafts	18,532	11,893	12,498

Cash and cash equivalents includes US$87 million (2025: US$125 million) restricted by legal or contractual arrangements.

Recognition and measurement

Cash and short‑term deposits in the balance sheet comprise cash at bank and on hand and highly liquid cash deposits with short‑term maturities that

are readily convertible to known amounts of cash with insignificant risk of change in value. The Group considers that the carrying value of cash and

cash equivalents approximate fair value due to their short‑term to maturity. Refer to note 22 ‘Leases’ and note 24 ‘Financial risk management’ for the

recognition and measurement principles for lease liabilities and other financial liabilities.

Interest bearing liabilities and cash and cash equivalents include balances denominated in the following currencies:

		Interest bearing liabilities		Cash and cash equivalents
	2026	2025	2026	2025
	US$M	US$M	US$M	US$M
USD	20,409	19,292	8,867	4,507
EUR	4,022	2,505	4	8
AUD	1,251	1,163	5,879	3,611
GBP	1,014	1,080	28	25
CAD	15	3	3,283	3,369
Other	410	453	471	374
Total	27,121	24,496	18,532	11,894

The Group enters into derivative transactions to convert the majority of its exposures above into US dollars. Further information on the Group’s risk

management activities relating to these balances is provided in note 24 ‘Financial risk management’.

Liquidity risk

The Group’s liquidity risk arises from the possibility that it may not be able to settle or meet its obligations as they fall due and is managed as part of the

portfolio risk management strategy. Operational, capital and regulatory requirements are considered in the management of liquidity risk, in conjunction

with short‑term and long‑term forecast information.

Recognising the cyclical volatility of operating cash flows, the Group has defined minimum target cash and liquidity buffers to be maintained to mitigate

liquidity risk and support operations through the cycle.

The Group’s strong credit profile, diversified funding sources, its minimum cash buffer and its committed credit facilities ensure that sufficient liquid funds

are maintained to meet its daily cash requirements.

The Group’s Moody’s credit rating has remained at A1/P‑1 outlook stable (long‑term/short‑term). The Group’s Fitch rating has remained at A/F1 outlook

stable (long‑term/short‑term).

There were no defaults on the Group’s liabilities during the period.

Counterparty risk

The Group is exposed to credit risk from its financing activities, including short‑term cash investments such as deposits with banks and derivative

contracts. This risk is managed by Group Treasury in line with the counterparty risk framework, which aims to minimise the exposure to a counterparty

and mitigate the risk of financial loss through counterparty failure.

Exposure to counterparties is monitored at a Group level across all products and includes exposure with derivatives and cash investments.

Investments and derivatives are only transacted with approved counterparties who have been assigned specific limits based on a quantitative credit

risk model. These limits are updated at least bi‑annually. Additionally, derivatives are subject to tenor limits and investments are subject to concentration

limits by rating.

Derivative fair values are inclusive of valuation adjustments that take into account both the counterparty and the Group’s risk of default.

Standby arrangements and unused credit facilities

The Group’s US$5.5 billion committed 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$5.5 billion. As at 30 June 2026, US$ nil commercial paper was

drawn (2025: US$ nil). The facility matures on 10 July 2031, following a one‑year extension completed on 26 June 2026. 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.

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Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

21 Net debt continued

Maturity profile of financial liabilities

The maturity profile of the Group’s financial liabilities based on the undiscounted contractual amounts, taking into account the derivatives related to debt,

is as follows:

	Bank loans,	Expected	Derivatives	Other	Obligations	Trade
2026	debentures	future interest	related to	financial	under lease	and other
US$M	and other loans	payments	debentures	liabilities 1	liabilities 2	payables 3	Total
Due for payment:
In one year or less or on demand	1,747	1,111	164	109	1,088	7,4 91	11,710
In more than one year but not more than two years	2,871	1,015	200	84	724	31	4,925
In more than two years but not more than five years	6,167	2,451	287	167	1,103	17	10,192
In more than five years	14,085	5,806	1,383	−	1,617	−	22,891
Total	24,870	10,383	2,034	360	4,532	7,539	49,718
Carrying amount	23,625	−	1,306	344	3,496	7,539	36,310

	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 2	payables 3	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

1. Excludes other financial liabilities associated with the Antamina silver streaming agreement, as future repayments are not based on fixed contractual amounts but variable and linked to

Antamina’s future production.

2. Lease liabilities due for payment in more than five years includes US$734 million (2025: US$820 million) due for payment in more than ten years.

3. Excludes input taxes of US$88 million (2025: US$90 million) included in other payables.

22 Leases

Movements in the Group’s lease liabilities during the year are as follows:

	2026	2025
	US$M	US$M
At the beginning of the financial year	2,953	3,116
Additions	1,111	870
Remeasurements of index‑linked freight contracts	340	(297)
Lease payments	(1,172)	(881)
Foreign exchange movement	71	(13)
Amortisation of discounting	194	169
Transfers and other movements	(1)	(11)
At the end of the financial year	3,496	2,953
Comprising:
Current liabilities	934	641
Non‑current liabilities	2,562	2,312

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 2026, commitments for leases not yet commenced based on undiscounted contractual amounts were US$506 million (2025: US$844 million).

164 BHP Annual Report 2026

Movements in the Group’s right‑of‑use assets during the year are as follows:

			2026			2025
		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		439	2,214	2,653	490	2,218	2,708
Additions		87	1,024	1,111	26	844	870
Remeasurements of index‑linked freight contracts		−	340	340	−	(210)	(210)
Depreciation expensed during the period		(75)	(961)	(1,036)	(75)	(642)	(717)
Impairments for the year		−	(29)	(29)	−	−	−
Transfers and other movements		−	(9)	(9)	(2)	4	2
At the end of the financial year		451	2,579	3,030	439	2,214	2,653
–	Cost	838	5,682	6,520	764	4,690	5,454
–	Accumulated depreciation and impairments	(387)	(3,103)	(3,490)	(325)	(2,476)	(2,801)

Right‑of‑use assets are included within the underlying asset classes in Property, plant and equipment. Refer to note 11 ‘Property, plant and equipment’.

Amounts recorded in the income statement and the cash flow statement for the year were:

	2026	2025	2024
	US$M	US$M	US$M	Included within
Income statement
Depreciation of right‑of‑use assets	1,036	717	717	Profit from operations
Short‑term, low‑value and variable lease costs 1	860	844	916	Profit from operations
Interest on lease liabilities	194	169	181	Financial expenses
Cash flow statement
Principal lease payments	978	712	656	Cash flows from financing activities
Lease interest payments	194	169	181	Cash flows from operating activities

1. Relates to US$734 million of variable lease costs (2025: US$777 million; 2024: US$792 million), US$101 million of short‑term lease costs (2025: US$43 million; 2024: US$96 million) and

US$25 million of low‑value lease costs (2025: US$24 million; 2024: US$28 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.

Recognition and measurement

All leases with the exception of short‑term (under 12 months) and low‑value leases are recognised on the balance sheet, as a right‑of‑use asset

and a corresponding interest bearing liability. Lease liabilities are initially measured at the present value of the future lease payments from the lease

commencement date and are subsequently adjusted to reflect the interest on lease liabilities, lease payments and any remeasurements due to, for

example, lease modifications or a change to future lease payments linked to an index or rate. Lease payments are discounted using the interest rate

implicit in the lease or, where the rate is not readily determinable, the interest payments are discounted at the Group’s weighted average incremental

borrowing rate, adjusted to reflect factors specific to the lease, including where relevant the currency, tenor and location of the lease.

In addition to containing a lease, the Group’s contractual arrangements may include non‑lease components. For example, certain mining services

arrangements involve the provision of additional services, including maintenance, drilling activities and the supply of personnel. The Group has elected to

separate these non‑lease components from the lease components in measuring lease liabilities. Non‑lease components are accounted for in accordance

with the accounting policies applied to each underlying good or service received.

Low‑value and short‑term leases are expensed to the income statement. Variable lease payments not dependent on an index or rate are excluded from

lease liabilities, and expensed to the income statement.

Right‑of‑use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease

liabilities. The cost will initially correspond to the lease liability, adjusted for initial direct costs, lease payments made prior to lease commencement,

capitalised provisions for closure and rehabilitation and any lease incentives received.

The lease asset and liability associated with all index‑linked freight contracts, including continuous voyage charters (CVCs), are measured at each

reporting date based on the prevailing freight index (generally the Baltic C5 index).

Where the Group is the operator of an unincorporated joint operation and all investors are parties to a lease, the Group recognises its proportionate share

of the lease liability and associated right‑of‑use asset. In the event the Group is the sole signatory to a lease, and therefore has the sole legal obligation

to make lease payments, the lease liability is recognised in full. Where the associated right‑of‑use asset is sub‑leased (under a finance sub‑lease) to a

joint operation, for instance where it is dedicated to a single operation and the joint operation has the right to direct the use of the asset, the Group (as

lessor) recognises its proportionate share of the right‑of‑use asset and a net investment in the lease, representing amounts to be recovered from the other

parties to the joint operation. If the Group is not party to the head lease contract but sub‑leases the associated right‑of‑use asset (as lessee), it recognises

its proportionate share of the right‑of‑use asset and a lease liability which is payable to the operator.

165

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

22 Leases continued

Key judgements and estimates

Judgements: Certain contractual arrangements not in the form of a lease require the Group to apply significant judgement in evaluating whether

the Group controls the right to direct the use of assets and therefore whether the contract contains a lease. Management considers all facts and

circumstances in determining whether the Group or the supplier has the rights to direct how, and for what purpose, the underlying assets are

used in certain mining contracts and other arrangements, including outsourcing and shipping arrangements. Judgement is used to assess which

decision‑making rights mostly affect the benefits of use of the assets for each arrangement.

Where a contract includes the provision of non‑lease services, judgement is required to identify the lease and non‑lease components.

Estimates: Where the Group cannot readily determine the interest rate implicit in the lease, estimation is involved in the determination of the

weighted average incremental borrowing rate to measure lease liabilities. The incremental borrowing rate reflects the rates of interest a lessee

would have to pay to borrow over a similar term, with similar security, the funds necessary to obtain an asset of similar value to the right‑of‑use asset

in a similar economic environment. Under the Group’s portfolio approach to debt management, the Group does not specifically borrow for asset

purchases. Therefore, the incremental borrowing rate is estimated referencing the Group’s corporate borrowing portfolio and other similar rated

entities, adjusted to reflect the terms and conditions of the lease (including the impact of currency, credit rating of subsidiary entering into the lease

and the term of the lease), at the inception of the lease arrangement or the time of lease modification.

The Group estimates stand‑alone prices, where such prices are not readily observable, in order to allocate the contractual payments between lease

and non‑lease components.

23 Net finance costs

	2026	2025	2024
	US$M	US$M	US$M
Financial expenses
Interest expense using the effective interest rate method:
Interest on bank loans, overdrafts and all other borrowings	1,400	1,325	1,467
Interest capitalised at 5.21% (2025: 5.97%; 2024: 6.82%) 1	(719)	(595)	(530)
Interest on lease liabilities	194	169	181
Discounting on streaming arrangement liability 2	11	−	−
Discounting on provisions and other liabilities	1,233	975	1,064
Other gains and losses:
Fair value change on hedged loans	(367)	263	(214)
Fair value change on hedging derivatives	292	(290)	188
Remeasurement of streaming arrangement liability 2	3	−	−
Exchange variations on net debt	(7)	(94)	27
Other	19	18	15
Total financial expenses	2,059	1,771	2,198
Financial income
Interest income	(573)	(603)	(709)
Other	(31)	(57)	−
Total financial income	(604)	(660)	(709)
Net finance costs	1,455	1,111	1,489

1. Interest has been capitalised at the rate of interest applicable to the specific borrowings financing the assets under construction or, where financed through general borrowings, at a

capitalisation rate representing the average interest rate on such borrowings. Tax relief for capitalised interest is approximately US$216 million (2025: US$179 million; 2024: US$159 million).

2. Relates to discounting and remeasurement of the other financial liability associated with the Antamina silver streaming agreement with Wheaton Precious Metals International Ltd in

accordance with IFRS 9. Refer to note 24 ‘Financial risk management’ for more information.

Recognition and measurement

Interest income is accrued using the effective interest rate method. Finance costs are expensed as incurred, except where they relate to the financing of

construction or development of qualifying assets.

166 BHP Annual Report 2026

24 Financial risk management

24.1 Financial risks

Financial and capital risk management strategy

The financial risks arising from the Group’s operations comprise market, liquidity and credit risk. These risks arise in the normal course of business and

the Group manages its exposure to them in accordance with the Group’s portfolio risk management strategy. The objective of the strategy is to support

the delivery of the Group’s financial targets, while protecting its future financial security and flexibility by taking advantage of the natural diversification

provided by the scale, diversity and flexibility of the Group’s operations and activities.

As part of the risk management strategy, the Group monitors target gearing levels and credit rating metrics under a range of different stress test scenarios

incorporating operational and macroeconomic factors.

Market risk management

The Group’s activities expose it to market risks associated with movements in interest rates, foreign currencies and commodity prices. Under the strategy

outlined above, the Group seeks to achieve financing costs, currency impacts, input costs and commodity prices on a floating or index basis.

In executing the strategy, financial instruments are potentially employed in three distinct but related activities. The following table summarises these

activities and the key risk management processes:

Activity		Key risk management processes
1	Risk mitigation
	On an exception basis, hedging for the purposes of mitigating risk related to specific and significant expenditure	Execution of transactions within approved
	on investments or capital projects will be executed if necessary to support the Group’s strategic objectives.	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	Measuring and reporting the exposure in
	target and where a relevant derivatives market exists, financial instruments may be executed as an economic	customer commodity contracts and issued
	hedge to align the revenue price exposure with the index target and US dollars.	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	Executing hedging derivatives to align the
	flow hedges may be executed to align the debt exposure with the Group’s functional currency of US dollars	total group exposure to the index target.
	and/or to swap to a floating interest rate.
	Where short‑term cash deposits and other monetary items are denominated in a currency other than US	Execution of transactions within approved
	dollars, derivative financial instruments may be executed to align the foreign exchange exposure to the Group’s	mandates.
	functional currency of US dollars.
3	Strategic financial transactions
	Opportunistic transactions may be executed with financial instruments to capture value from perceived market	Execution of transactions within
	over/under valuations.	approved mandates.

Primary responsibility for the identification and control of financial risks, including authorising and monitoring the use of financial instruments for the above

activities and stipulating policy thereon, rests with the Financial Risk Management Committee under authority delegated by the Chief Executive Officer.

Interest rate risk

The Group is exposed to interest rate risk on its outstanding borrowings and short‑term cash deposits from the possibility that changes in interest

rates will affect future cash flows or the fair value of fixed interest rate financial instruments. Interest rate risk is managed as part of the portfolio risk

management strategy.

The majority of the Group’s debt is issued at fixed interest rates. The Group has entered into interest rate swaps and cross currency interest rate swaps

to convert most of its fixed interest rate exposure to floating US dollar interest rate exposure. As at 30 June 2026, 99 per cent of the Group’s borrowings

were exposed to floating interest rates inclusive of the effect of swaps (2025: 98 per cent).

The fair value of interest rate swaps and cross currency interest rate swaps in hedge relationships used to hedge both interest rate and foreign currency

risks are shown in the valuation hierarchy in section 24.4 ‘Derivatives and hedge accounting’.

Based on the net debt position as at 30 June 2026, taking into account interest rate swaps and cross currency interest rate swaps, it is estimated that a

one percentage point increase in the Secured Overnight Financing Rate (SOFR) interest rate would decrease the Group’s equity and profit after taxation

by US$46 million (2025: decrease of US$72 million). This assumes the change in interest rates is effective from the beginning of the financial year and the

fixed/floating mix and balances are constant over the year.

167

Operating and Financial Review Additional InformationGovernanceSustainability Report Financial Statements

1 Consolidated Financial Statements continued

24 Financial risk management continued

Currency risk

The US dollar is the predominant functional currency within the Group and as a result, currency exposures arise from transactions and balances in

currencies other than the US dollar. The Group’s potential currency exposures comprise:

– translational exposure in respect of non‑functional currency monetary items

– transactional exposure in respect of non‑functional currency expenditure and revenues

The Group’s foreign currency risk is managed as part of the portfolio risk management strategy.

Translational exposure in respect of non-functional currency monetary items

Monetary items, including financial assets and liabilities, denominated in currencies other than the functional currency of an operation are restated at the

end of each reporting period to US dollar equivalents and the associated gain or loss is taken to the income statement. The exception is foreign exchange

gains or losses on foreign currency denominated provisions for closure and rehabilitation at operating sites, which are capitalised in property, plant

and equipment.

The Group has entered into cross currency interest rate swaps and foreign exchange forwards to convert its significant foreign currency exposures in

respect of monetary items into US dollars. Fluctuations in foreign exchange rates are therefore not expected to have a significant impact on equity and

profit after tax.

The following table shows the carrying values of financial assets and liabilities at the end of the reporting period denominated in currencies other than the

US dollar that are exposed to foreign currency risk:

	2026	2025
Net financial (liabilities)/assets – by currency of denomination	US$M	US$M
AUD	(4,372)	(4,181)
CLP	(908)	(924)
CAD	(410)	(361)
EUR	(96)	(89)
GBP	13	(28)
BRL	320	337
Other	192	123
Total	(5,261)	(5,123)

The principal non‑functional currencies to which the Group is exposed are the Australian dollar, the Canadian dollar, the Chilean peso, the Pound sterling,

the Brazilian real and the Euro. Based on the Group’s net financial assets and liabilities as at 30 June 2026, a weakening of the US dollar against these

currencies (one cent strengthening in Australian dollar, one cent strengthening in Canadian dollar, 10 pesos strengthening in Chilean peso, one penny

strengthening in Pound sterling, one centavo strengthening in Brazilian real and one cent strengthening in Euro), with all other variables held constant,

would decrease the Group’s equity and profit after taxation by US$31 million (2025: decrease of US$29 million).

Transactional exposure in respect of non-functional currency expenditure and revenues

Certain operating and capital expenditure is incurred in currencies other than an operation’s functional currency. To a lesser extent, certain sales revenue

is earned in currencies other than the functional currency of operations and certain exchange control restrictions may require that funds be maintained

in currencies other than the functional currency of the operation. These currency risks are managed as part of the portfolio risk management strategy.

The Group may enter into forward exchange contracts when required under this strategy.

Commodity price risk

The risk associated with commodity prices is managed as part of the portfolio risk management strategy. Substantially all of the Group’s commodity

production is sold on market‑based index pricing terms, with derivatives used from time to time to achieve a specific outcome.

Financial instruments with commodity price risk comprise forward commodity and other derivative contracts with net assets at fair value of US$1 million

(2025: net liabilities of US$1 million).

Other financial assets at fair value includes US$67 million (2025: US$122 million) in relation to amounts receivable for the divestment of the Blackwater

and Daunia mines which are contingent on future realised coal prices. A 10 per cent change in the coal realised price used in the valuation model, with

all other factors held constant, would increase or decrease profit after taxation by approximately US$30 million.

168 BHP Annual Report 2026

Provisionally priced commodity sales and purchases contracts

Provisionally priced sales or purchases volumes are those for which price finalisation, referenced to the relevant index, is outstanding at the reporting

date. Provisional pricing mechanisms within these sales and purchases arrangements have the character of a commodity derivative. Trade receivables

or payables under these contracts are carried at fair value through profit or loss using Level 2 valuation inputs based on forward prices in the quotation

period. The Group’s exposure at 30 June 2026 to the impact of movements in commodity prices upon provisionally invoiced sales and purchases volumes

was predominately around copper.

The Group had 423 thousand tonnes of copper exposure as at 30 June 2026 (2025: 419 thousand tonnes) that was provisionally priced. The final price

of these sales and purchases volumes will be determined during the first half of FY2027. A 10 per cent change in the price of copper realised on the

provisionally priced sales, with all other factors held constant, would increase or decrease profit after taxation by US$371 million (2025: US$268 million).

The relationship between commodity prices and foreign currencies is complex and movements in foreign exchange rates can impact commodity prices.

Liquidity risk

Refer to note 21 ‘Net debt’ for details on the Group’s liquidity risk.

Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

The Group is exposed to credit risk from its operating activities (primarily from customer receivables) and from its financing activities, including deposits

with banks and financial institutions, other short‑term investments, interest rate and currency derivative contracts and other financial instruments.

Refer to note 8 ‘Trade and other receivables’ and note 21 ‘Net debt’ for details on the Group credit risk.

24.2 Recognition and measurement

All financial assets and liabilities, other than derivatives and trade receivables, are initially recognised at the fair value of consideration paid or received,

net of transaction costs as appropriate. Financial assets are initially recognised on their trade date.

Financial assets are subsequently carried at fair value or amortised cost based on:

– the Group’s purpose, or business model, for holding the financial asset

– whether the financial asset’s contractual terms give rise to cash flows that are solely payments of principal and interest

The resulting Financial Statements classifications of financial assets can be summarised as follows:

Contractual cash flows	Business model	Category
Solely principal and interest	Hold in order to collect contractual cash flows	Amortised cost
Solely principal and interest	Hold in order to collect contractual cash flows and sell	Fair value through other comprehensive income
Solely principal and interest	Hold in order to sell	Fair value through profit or loss
Other	Any of those mentioned above	Fair value through profit or loss

Solely principal and interest refers to the Group receiving returns only for the time value of money and the credit risk of the counterparty for financial

assets held. The main exceptions for the Group are provisionally priced receivables and derivatives which are measured at fair value through profit or

loss under IFRS 9.

The Group has the intention of collecting payment directly from its customers in most cases, however the Group also participates in receivables

financing programs in respect of selected customers. Receivables in these portfolios which are classified as ‘hold in order to sell’, are provisionally priced

receivables and are therefore held at fair value through profit or loss prior to sale to the financial institution.

With the exception of derivative contracts and provisionally priced trade payables which are carried at fair value through profit or loss, the Group’s

financial liabilities are classified as subsequently measured at amortised cost.

The Group may in addition elect to designate certain financial assets or liabilities at fair value through profit or loss or to apply hedge accounting where

they are not mandatorily held at fair value through profit or loss.

Fair value measurement

The carrying amount of financial assets and liabilities measured at fair value is principally calculated based on inputs other than quoted prices that are

observable for these financial assets or liabilities, either directly (i.e. as unquoted prices) or indirectly (i.e. derived from prices). Where no price information

is available from a quoted market source, alternative market mechanisms or recent comparable transactions, fair value is estimated based on the Group’s

views on relevant future prices, net of valuation allowances to accommodate liquidity, modelling and other risks implicit in such estimates.

The inputs used in fair value calculations are determined by the relevant segment or function. The functions support the assets and operate under

a defined set of accountabilities authorised by the Executive Leadership Team. Movements in the fair value of financial assets and liabilities may be

recognised through the income statement or in other comprehensive income according to the designation of the underlying instrument.

For financial assets and liabilities carried at fair value, the Group uses the following to categorise the inputs to the valuation method used based on the

lowest level input that is significant to the fair value measurement as a whole:

IFRS 13 Fair value hierarchy	Level 1	Level 2	Level 3
Valuation inputs	Based on quoted prices	Based on inputs other than quoted prices	Based on inputs not observable in the
	(unadjusted) in active markets	included within Level 1 that are observable	market using appropriate valuation models,
	for identical financial assets and	for the financial asset or liability, either	including discounted cash flow modelling.
	liabilities.	directly (i.e. as unquoted prices) or
		indirectly (i.e. derived from prices).

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1 Consolidated Financial Statements continued

24 Financial risk management continued

24.3 Financial assets and liabilities

The financial assets and liabilities are presented by class in the table below at their carrying amounts.

	IFRS 13 Fair value		2026	2025
	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	12	13
Current other derivative contracts 3	2,3	Fair value through profit or loss	450	275
Current other financial assets 4	3	Fair value through profit or loss	91	−
Current other financial assets 5		Amortised cost	49	236
Current other investments 6	1,2	Fair value through profit or loss	17	37
Non‑current cross currency and interest rate swaps 2	2	Fair value through profit or loss	227	448
Non‑current other derivative contracts 3	2,3	Fair value through profit or loss	182	158
Non‑current other financial assets 4	3	Fair value through profit or loss	162	122
Non‑current other financial assets 5,7		Amortised cost	166	191
Non‑current investment in shares	1,3	Fair value through other comprehensive income	103	64
Non‑current other investments 6	1,2	Fair value through profit or loss	71	139
Total other financial assets			1,530	1,683
Cash and cash equivalents		Amortised cost	18,532	11,89 4
Trade and other receivables 8		Amortised cost	1,143	1,195
Provisionally priced trade receivables	2	Fair value through profit or loss	3,429	2,581
Total financial assets			24,634	17, 35 3
Non‑financial assets			96,753	91,437
Total assets			121,387	108,790
Current other derivative contracts	2	Fair value through profit or loss	26	130
Current other financial liabilities 9		Amortised cost	291	84
Non‑current cross currency and interest rate swaps 2	2	Fair value through profit or loss	1,306	1,056
Non‑current other financial liabilities 9		Amortised cost	4,300	308
Total other financial liabilities			5,923	1,578
Trade and other payables 10		Amortised cost	6,817	6,087
Provisionally priced trade payables	2	Fair value through profit or loss	722	493
Bank overdrafts and short‑term borrowings 11		Amortised cost	−	1
Bank loans 11		Amortised cost	4,534	3,731
Notes and debentures 11		Amortised cost	18,945	17,65 3
Lease liabilities 12			3,496	2,953
Other 11		Amortised cost	146	158
Total financial liabilities			40,583	32,654
Non‑financial liabilities			24,483	23,918
Total liabilities			65,066	56,572

1. All of the Group’s financial assets and financial liabilities recognised at fair value were valued using market observable inputs categorised as Level 2 unless specified otherwise in the

following footnotes.

2. Cross currency and interest rate swaps are valued using market data including interest rate curves and foreign exchange rates. A discounted cash flow approach is used to derive the fair

value of cross currency and interest rate swaps at the reporting date.

3. Includes net other derivative assets of US$49 million related to power purchase contract agreements that are categorised as Level 3 (2025: US$37 million).

4. Includes receivables contingent on future realised coal price of US$67 million in relation to the divestment of the Blackwater and Daunia mines (2025: US$122 million), receivables

contingent on the outcome of future events relating to mining and regulatory approvals of US$131 million (2025: US$ nil) and restoration and reclamation trusts which are restricted and

not available for general use by the Group of US$55 million (2025: US$ nil).

5. Includes deferred consideration of US$48 million in relation to the divestment of the Blackwater and Daunia mines (2025: US$280 million).

6. Includes investments held by BHP Foundation which are restricted and not available for general use by the Group of US$62 million (2025: US$176 million) of which other investments

(mainly US Treasury Notes) of US$37 million is categorised as Level 1 (2025: US$105 million).

7. Includes Senior notes of US$156 million (2025: US$147 million) relating to Samarco with a maturity date of 30 June 2031. Refer to note 4 ‘Significant events – Samarco dam failure’ for

further information.

8. Excludes input taxes of US$518 million (2025: US$477 million) included in other receivables.

9. Includes the liability associated with the Antamina silver streaming agreement with Wheaton Precious Metals International Ltd of US$4,273 million (2025: US$ nil) and the settlement

liability in relation to the cancellation of power contracts at the Group’s Escondida operations of US$308 million (2025: US$378 million).

10. Excludes input taxes of US$88 million (2025: US$90 million) included in other payables.

11. All interest bearing liabilities, excluding lease liabilities, are unsecured.

12. Lease liabilities are measured in accordance with IFRS 16/AASB 16 ‘Leases’.

The carrying amounts in the table above generally approximate to fair value. In the case of US$200 million (2025: US$525 million) of fixed rate

debt not swapped to floating rate, the fair value at 30 June 2026 approximated carrying value (2025: US$541 million). The fair value is determined

using a method that can be categorised as Level 2 and uses inputs based on benchmark interest rates, alternative market mechanisms or recent

comparable transactions.

For financial instruments that are carried at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the

fair value hierarchy by reassessing categorisation at the end of each reporting period. There were no transfers between categories during the period.

170 BHP Annual Report 2026

Offsetting financial assets and liabilities

The Group enters into money market deposits and derivative transactions under International Swaps and Derivatives Association master netting

agreements that do not meet the offsetting criteria in IAS 32/AASB 132 ‘Financial Instruments: Presentation’, but allow for the related amounts to be

set‑off in certain circumstances. The amounts set out as cross currency and interest rate swaps in the table above represent the derivative financial

assets and liabilities of the Group that may be subject to the above arrangements and are presented on a gross basis.

Streaming arrangement liability

On 17 February 2026, the Group announced a long‑term streaming agreement with Wheaton Precious Metals International Ltd (Wheaton), effective

1 April 2026. Under the agreement, the Group received an upfront payment of US$4,300 million on 2 April 2026 and, in exchange, will deliver silver to

Wheaton calculated by reference to its share of the silver produced at the Antamina mine. The Group will also receive 20 per cent of the spot silver price

at the time of delivery of each ounce of silver to Wheaton.

The Group will deliver the equivalent of 33.75 per cent of the silver produced by Antamina (subject to a fixed payable rate of 90 per cent). After 100 million

ounces of silver have been delivered to Wheaton, the stream will be reduced, and BHP will deliver the equivalent of 22.5 per cent of silver produced by

Antamina over the remaining life of mine. There are no minimum or fixed delivery requirements under the agreement.

The stream will be settled via purchase and delivery of metal credits to Wheaton, as such the arrangement meets the definition of a financial instrument

under IFRS 9 and is accounted for as an other financial liability classified as amortised cost.

In order to determine the discount rate implicit in the arrangement, management is required to estimate expected future cash flows required to purchase

metal credits to settle the stream based on assumptions for Antamina production volumes and silver prices. While the discount rate implicit in the

arrangement will not change over the life of the arrangement, reassessment of Antamina production volumes and silver price may require remeasurement

of the liability in future reporting periods.

Key judgements and estimates

Estimates: The significant estimates impacting the amortised cost balance of the other financial liability associated with the Antamina silver

streaming agreement are:

Future production volumes

The Antamina silver streaming agreement is a life of mine agreement linked to Antamina’s silver production. Estimated production volumes took into

account Antamina’s existing development plans along with risked reserves and resources, that a market participant would consider when valuing the

stream, but do not currently meet the criteria to be treated as proved.

Commodity prices

Commodity prices were based on latest internal forecasts which are benchmarked with external sources of information such as analyst forecasts.

24.4 Derivatives and hedge accounting

The Group uses derivatives to hedge its exposure to certain market risks and may elect to apply hedge accounting.

Hedge accounting

Derivatives are included within financial assets or liabilities at fair value through profit or loss unless they are designated as effective hedging instruments.

Where hedge accounting is applied, at the start of the transaction, the Group documents the type of hedge, the relationship between the hedging

instrument and hedged items and its risk management objective and strategy for undertaking various hedge transactions. The documentation also

demonstrates that the hedge is expected to be effective.

The Group applies the following types of hedge accounting to its derivatives hedging the interest rate and currency risks of its notes and debentures:

– Fair value hedges – the fair value gain or loss on interest rate and cross currency swaps relating to interest rate risk, together with the change in the fair

value of the hedged fixed rate borrowings attributable to interest rate risk are recognised immediately in the income statement. If the hedge no longer

meets the criteria for hedge accounting, the fair value adjustment on the note or debenture is amortised to the income statement over the period to

maturity using a recalculated effective interest rate.

– Cash flow hedges – changes in the fair value of cross currency interest rate swaps which hedge foreign currency cash flows on the notes and

debentures are recognised directly in other comprehensive income and accumulated in the cash flow hedging reserve. To the extent a hedge is

ineffective, changes in fair value are recognised immediately in the income statement.

When a hedging instrument expires, or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge accounting, any

cumulative gain or loss existing in equity at that time remains in equity and is amortised to the income statement over the period to the hedged

item’s maturity.

When hedged, the Group hedges the full notional value of notes or debentures. However, certain components of the fair value of derivatives are not

permitted under IFRS 9 to be included in the hedge accounting above. Certain costs of hedging are permitted to be recognised in other comprehensive

income. Any change in the fair value of a derivative that does not qualify for hedge accounting, or is ineffective in hedging the designated risk due to

contractual differences between the hedged item and hedging instrument, is recognised immediately in the income statement.

The table below shows the carrying amounts of the Group’s notes and debentures by currency and the derivatives which hedge them:

– The carrying amount of the notes and debentures includes foreign exchange remeasurement to period‑end rates and fair value adjustments when

included in a fair value hedge.

– The breakdown of the hedging derivatives includes remeasurement of foreign currency notional values at period‑end rates, fair value movements

due to interest rate risk, foreign currency cash flows designated into cash flow hedges, costs of hedging recognised in other comprehensive income,

ineffectiveness recognised in the income statement and accruals or prepayments.

– The hedged value of notes and debentures includes their carrying amounts adjusted for the offsetting derivative fair value movements due to foreign

currency and interest rate risk remeasurement.

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1 Consolidated Financial Statements continued

24 Financial risk management continued

	Carrying					Fair value of derivatives
	amount of									Hedged
	hedged		Foreign		Recognised	Recognised	Recognised			value
	loans,	De-	exchange		in cash flow	in cost of	in the	Accrued		of loans,
2026	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	14,945	47	−	597	−	−	(56)	(73)	468	15,589
GBP	1,000	37	298	277	20	4	(78)	35	556	1,612
EUR	3,997	68	229	85	88	12	(95)	(276)	43	4,379
Total	19,942	152	527	959	108	16	(229)	(314)	1,067	21,580

	Carrying				Fair value of derivatives					Hedged
	amount of		Foreign		Recognised	Recognised	Recognised			value
	hedged 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

1. Includes accumulated fair value adjustments on de‑designated hedges which are amortised to the income statement over the period to the hedged item’s maturity.

2. Predominantly related to ineffectiveness.

3. Includes US$200 million (2025: US$525 million) of fixed rate debt not swapped to floating rate that is not in a hedging relationship.

The weighted average interest rate payable is USD SOFR +1.32 per cent (2025: USD SOFR +1.30 per cent). Refer to note 23 ‘Net finance costs’ for

details of net finance costs for the year.

Movements in reserves relating to hedge accounting

The following table shows a reconciliation of the components of equity and an analysis of the movements in reserves for all hedges. For a description of

these reserves, refer to note 18 ‘Other equity’.

2026	Cash flow hedging reserve				Cost of hedging reserve
US$M	Gross	Tax	Net	Gross	Tax	Net	Total
At the beginning of the financial year	(22)	6	(16)	6	(2)	4	(12)
Add: Change in fair value of hedging instrument recognised in OCI	(215)	65	(150)	(22)	7	(15)	(165)
Less: Reclassified from reserves to financial expenses –
recognised through OCI	129	(39)	90	−	−	−	90
At the end of the financial year	(108)	32	(76)	(16)	5	(11)	(87)

2025		Cash flow hedging reserve			Cost of hedging reserve
US$M	Gross	Tax	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)

172 BHP Annual Report 2026

Changes in interest bearing liabilities and related derivatives resulting from financing activities

The movement in the year in the Group’s interest bearing liabilities and related derivatives are as follows:

						Derivatives
						(assets)/
		Interest bearing liabilities				liabilities
				Bank		Cross
				overdraft and		currency
2026	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	3,731	17,653	2,953	1	158	595
Proceeds from interest bearing liabilities	850	3,107	−	−	−	−	3,957
Settlements of debt related instruments	−	−	−	−	−	(22)	(22)
Repayment of interest bearing liabilities	(40)	(1,323)	(977)	−	(23)	−	(2,363)
Change from Net financing cash flows	810	1,784	(977)	−	(23)	(22)	1,572
Other movements:
Interest rate impacts	(13)	(354)	−	−	−	317
Foreign exchange impacts	3	(154)	71	−	(1)	154
Lease additions	−	−	1,111	−	−	−
Remeasurement of index‑linked freight contracts	−	−	340	−	−	−
Other interest bearing liabilities/derivative related changes	3	16	(2)	(1)	12	23
At the end of the financial year	4,534	18,945	3,496	−	146	1,067

						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	17,6 5 3	2,953	1	158	595

Employee matters

25 Key management personnel

Key management personnel compensation comprises:

	2026	2025	2024
	US$	US$	US$
Short‑term employee benefits	13,482,224	12,794,925	12,687,272
Post‑employment benefits	632,756	589,573	634,005
Share‑based payments	13,023,126	10,569,238	11,143,944
Total	27,138,106	23,953,736	24,465,221

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 KMP from the Group during FY2026 (2025: US$ nil; 2024: US$ nil).

There were no amounts payable by KMP at 30 June 2026 (2025: US$ nil; 2024: US$ nil).

There were no loans receivable from or payable to KMP at 30 June 2026 (2025: US$ nil; 2024: US$ nil).

Transactions with personally related entities

A number of Directors of the Group hold or have held positions in other companies (personally related entities) where it is considered they control or

significantly influence the financial or operating policies of those entities. There were no reportable transactions with those entities and no amounts were

owed by the Group to personally related entities at 30 June 2026 (2025: US$ nil; 2024: US$ nil).

For more information on remuneration and transactions with KMP, refer to the Remuneration Report under Governance.

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1 Consolidated Financial Statements continued

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 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	LTIP¹ 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	The LTIP is a long term incentive plan for Executive KMP	Employees may contribute
	incentive plan for Executive KMP and	and members of the Executive Leadership Team, who	up to US$5,000 to acquire
	members of the Executive Leadership	are not Executive KMP. Awards are granted annually and	shares in any plan year. On
	Team who are not Executive KMP.	delivered in performance rights, which are conditional rights	the third anniversary of the
	CDP awards are split into three equal	to receive BHP shares. Awards vest after five years, subject	start of a plan year, the Group
	parts – a cash component paid annually,	to service and performance conditions.	will match the number of
	and two awards of deferred rights to	The MAP is a long term incentive plan for BHP senior	acquired shares still held by
	receive BHP Group Limited shares	management who are not Executive KMP. The number	the participant.
	subject to service conditions and a holistic	of share rights awarded is determined by a participant’s
	review of performance.	role and grade and generally vest in three years. Awards
	The two awards of deferred rights are the	of share rights may also be granted to members of the
	equivalent value of the CDP cash award,	Executive Leadership Team as additional retention awards
	vesting between two and five years	with vesting periods of between one 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 two‑year	LTIP: Service and performance conditions.	Service conditions only.
conditions	award.	From FY2023 BHP’s performance is assessed over the
	Vesting of the four‑year awards are	five‑year period against the relative Total Shareholder
	subject to service and individual	Return (TSR) of two comparator groups – Morgan Stanley
	performance conditions.	Capital International (MSCI) market indices, the MSCI
	Vesting of the five‑year awards are	World Metals and Mining Index (‘Sector Group TSR’) and
	subject to a service condition and	the MSCI World Index (‘World TSR’). The Sector Group
	underpinned by a holistic review of	TSR determines the vesting of 67 per cent of the awards,
	performance encompassing safety and	while performance relative to the World TSR determines
	sustainability including climate, financial,	the vesting of 33 per cent of the awards. For awards
	corporate governance and conduct at the	granted prior to FY2023, TSR performance relative to a
	end of the five‑year period.	bespoke sector peer group and the MSCI World Index
		determines the vesting of 67 per cent and 33 per cent of
		the award, respectively.
		25 per cent of the award will vest where BHP’s TSR is equal
		to the median TSR of the relevant comparator group(s), as
		measured over the five‑year performance 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 – Yes – from FY2026
Payment
Exercise period	None	None	None

1. For LTIP awards granted prior to unification and where the five‑year performance period ends after unification, the TSR at the start of the performance period is based on the weighted

average of the TSRs of BHP Group Limited and BHP Group Plc and the TSR at the end of the performance period is based on the TSR of BHP Group Limited.

174 BHP Annual Report 2026

Employee share awards

						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
2026	financial year	during the year	exercised	lapsed	financial year	life (years)	exercise date
CDP awards	1,348,291	720,403	320,052	−	1,748,642	1.9	A$42.00
LTIP awards	2,597,623	724,204	190,040	383,737	2,748,050	2.4	A$42.00
MAP awards	5,710,865	3,5 07,180	1,902,627	548,616	6,766,802	1.4	A$42.73
Shareplus	6,156,475	3,560,785	2,511,251	707,507	6,498,502	1.3	A$52.26

Fair value and assumptions in the calculation of fair value for awards issued

	Weighted average
	fair value of
	awards granted				Estimated
	during the year	Risk-free	Estimated life	Share price	volatility of	Dividend
2026	US$	interest rate	of awards	at grant date	share price	yield
CDP awards	29.03	n/a	2 - 5 years	A$43.45	n/a	n/a
LTIP awards	17. 3 0	3.70%	5 years	A$43.45	23.45%	n/a
MAP awards 1	29.33	n/a	1-3 years	A$42.08/A$56.17	n/a	n/a
Shareplus	30.18	n/a	3 years	A$48.14	n/a	4.88%

1. Includes MAP awards granted on 3 October 2025 and 22 April 2026.

Recognition and measurement

The fair value at grant date of equity‑settled share awards is charged to the income statement over the period for which the benefits of employee services

are expected to be derived. The fair values of awards granted were estimated using a Monte Carlo simulation methodology and Black‑Scholes option

pricing technique and consider the following factors:

– exercise price

– expected life of the award

– current market price of the underlying shares

– expected volatility using an analysis of historic volatility over different rolling periods. For the LTIP, it is calculated for all sector comparators and the

published MSCI World Index

– expected dividends

– risk‑free interest rate, which is an applicable government bond rate

– market‑based performance hurdles

– non‑vesting conditions

Where awards are forfeited because non‑market‑based vesting conditions are not satisfied, the expense previously recognised is proportionately reversed.

The tax effect of awards granted is recognised in income tax expense, except to the extent that the total tax deductions are expected to exceed the

cumulative remuneration expense. In this situation, the excess of the associated current or deferred tax is recognised in equity and forms part of the

employee share awards reserve. The fair value of awards as presented in the tables above represents the fair value at grant date.

In respect of employee share awards, the Group utilises the BHP Group Limited Employee Equity Trust. The trustee of this trust is an independent

company, resident in Jersey. The trust uses funds provided by the Group to acquire ordinary shares to enable awards to be made or satisfied.

The ordinary shares may be acquired by purchase in the market or by subscription at not less than nominal value.

27 Employee benefits, restructuring and post-retirement employee benefits provisions

	2026	2025
	US$M	US$M
Employee benefits 1	2,171	1,879
Restructuring 2	69	83
Post‑retirement employee benefits 3	367	336
Total provisions	2,607	2,298
Comprising:
Current	2,174	1,893
Non‑current	433	405

175

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1 Consolidated Financial Statements continued

27 Employee benefits, restructuring and post-retirement employee benefits provisions continued

			Post-retirement
	Employee		employee
	benefits¹	Restructuring²	benefits 3	Total
2026	US$M	US$M	US$M	US$M
At the beginning of the financial year	1,879	83	336	2,298
Charge/(credit) for the year:
Underlying	1,704	37	52	1,793
Discounting	−	−	24	24
Yield on defined benefit scheme assets	−	−	(5)	(5)
Exchange variations	79	3	2	84
Released during the year	(2)	(5)	(8)	(15)
Remeasurement losses taken to retained earnings	−	−	12	12
Utilisation	(1,480)	(49)	(46)	(1,575)
Divestment of subsidiaries and operations	(2)	−	−	(2)
Transfers and other movements	(7)	−	−	(7)
At the end of the financial year	2,171	69	367	2,607

1. The expenditure associated with total employee benefits will occur in a pattern consistent with when employees choose to exercise their entitlement to benefits.

2. Total restructuring provisions include provisions for terminations and office closures.

3. The net liability recognised in the Consolidated Balance Sheet includes US$315 million unfunded post‑employment benefits obligation in Chile (2025: US$276 million).

Recognition and measurement

Provisions are recognised by the Group when:

– there is a present legal or constructive obligation as a result of past events

– it is more likely than not that a permanent outflow of resources will be required to settle the obligation

– the amount can be reliably estimated and measured at the present value of management’s best estimate of the cash outflow required to settle the

obligation at the reporting date

Provision	Description
Employee	Liabilities for benefits accruing to employees up until the reporting date in respect of wages and salaries, annual leave and any accumulating
benefits	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-	Defined contribution pension schemes and multi-employer pension schemes
retirement	For defined contribution schemes or schemes operated on an industry‑wide basis where it is not possible to identify assets attributable to
employee	the participation by the Group’s employees, the pension charge is calculated on the basis of contributions payable. The Group contributed
benefits	US$439 million during the financial year (2025: US$395 million; 2024: US$368 million) to defined contribution plans and multi‑employer
	defined contribution plans. These contributions are expensed as incurred.
	Defined benefit pension and post-retirement medical schemes
	The Group operates or participates in a number of defined benefit pension schemes throughout the world, all of which are closed to new
	entrants. The funding of the schemes complies with local regulations. The assets of the schemes are generally held separately from those of
	the Group and are administered by trustees or management boards. The Group also operates a number of unfunded post‑retirement medical
	schemes in the United States, Canada and Europe.
	For defined benefit schemes, an asset or liability is recognised in the balance sheet based at the present value of defined benefit obligations
	less, where funded, the fair value of plan assets, except that any such asset cannot exceed the present value of expected refunds from and
	reductions in future contributions to the plan. Full actuarial valuations are prepared by local actuaries for all schemes, using discount rates
	based on market yields at the reporting date on high‑quality corporate bonds or by reference to national government bonds if high‑quality
	corporate bonds are not available.
	Where funded, scheme assets are invested in a diversified range of asset classes, predominantly comprising bonds and equities.

176 BHP Annual Report 2026

Group and related party information

28 Subsidiaries

Significant subsidiaries of the Group are those with the most significant contribution to the Group’s net profit or net assets. The Group’s interest in the

subsidiaries’ results are listed in the table below.

			Group’s interest
	Country of		2026	2025
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 Billiton Group Limited	United Kingdom	Holding company	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	100	100
		and administrative services
OZ Minerals Musgrave Operations Pty Ltd 3	Australia	Nickel and copper development	100	100
WMC Finance (USA) Limited	Australia	Finance	100	100

1. As the Group has the ability to direct the relevant activities at Minera Escondida Ltda, it has control over the entity. The assessment of the most relevant activity in this contractual

arrangement is subject to judgement. The Group establishes the mine plan and the operating budget and has the ability to appoint the key management personnel, demonstrating that the

Group has the existing rights to direct the relevant activities of Minera Escondida Ltda.

2. The Group has an effective interest of 92.5 per cent in BHP Iron Ore (Jimblebar) Pty Ltd; however, by virtue of the shareholder agreement with ITOCHU Iron Ore Australia Pty Ltd

and Mitsui & Co. Iron Ore Exploration & Mining Pty Ltd, the Group’s interest in the Jimblebar mining operation is 85 per cent, which is consistent with the other respective contractual

arrangements at Western Australia Iron Ore.

3. The Nickel West operations and the West Musgrave project both transitioned into temporary suspension in December 2024.

29 Investments accounted for using the equity method

Significant interests in equity accounted investments of the Group are those with the most significant contribution to the Group’s net profit or net assets.

The Group’s ownership interest in significant equity accounted investments results are listed in the table below.

					Ownership interest
Significant associates	Country of incorporation/	Associate or			2026	2025
and joint ventures	principal place of business	joint venture	Principal activity	Reporting date	%	%
Compañía Minera Antamina S.A.	Peru	Associate	Copper and zinc	31 December	33.75	33.75
(Antamina)			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	50.00
			development

Voting in relation to relevant activities in Antamina, determined to be the approval of the operating and capital budgets, does not require unanimous

consent of all participants to the arrangement, therefore joint control does not exist. Instead, because the Group has the power to participate in the

financial and operating policies of the investee, this investment is accounted for as an associate.

Samarco is jointly owned by BHP Billiton Brasil Ltda (BHP Brasil) and Vale S.A. (Vale). BHP Brasil and Vale do not have offtake arrangements with

Samarco. Instead, Samarco sells all of its product directly to market. Accordingly, as the Samarco entity has the rights to the assets and obligations

to the liabilities relating to the joint arrangement and not its owners, this investment is accounted for as a joint venture.

BHP Investments Canada Inc. (BHP Canada) and Lundin Mining each own 50% of Vicuña Corp and share joint control. In management’s judgement,

and considering the offtake terms, BHP Canada and Lundin Mining do not have the rights to, or the obligation for, substantially all the output of the

arrangement. Accordingly, as the Vicuña entity has the rights to the assets and obligations for the liabilities of this arrangement and not its owners,

this investment is accounted for as a joint venture.

177

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1 Consolidated Financial Statements continued

29 Investments accounted for using the equity method continued

Key judgements and estimates

Judgements: Determining whether joint arrangements structured through a separate vehicle are classified as joint ventures or joint operations can

involve significant judgement. The classification depends on an assessment of the venturers’ rights to the assets and obligations for the liabilities of

the arrangement in the normal course of business. When making the assessment, management has regard to the legal form of the separate vehicle,

the terms of the arrangement and other relevant facts and circumstances. Where venturers have the rights to, and obligations for, substantially all

of the output of the arrangement, this is indicative of a joint operation as the venturers have rights to substantially all of the economic benefits of the

assets and provide cash flows that are used to settle the liabilities of the arrangement.

The Group is restricted in its ability to make dividend payments from its investments in associates and joint ventures as any such payments require the

approval of all investors in the associates and joint ventures.

The movement for the year in the Group’s investments accounted for using the equity method is as follows:

			Total equity
Year ended 30 June 2026	Investment in	Investment in	accounted
US$M	associates	joint ventures	investments
At the beginning of the financial year	1,751	2,356	4,107
Profit/(loss) from equity accounted investments, related impairments and expenses 1	899	(325)	574
Investment in equity accounted investments	108	242	350
Dividends received from equity accounted investments	(895)	−	(895)
Divestment of equity accounted investments	(42)	−	(42)
Other	−	320	320
At the end of the financial year	1,821	2,593	4,414

1. Represents financial impacts of Samarco dam failure in the Group’s profit/(loss) from equity accounted investments, related impairments and expenses. Refer to note 4 ‘Significant events

– Samarco dam failure’ for further information.

The following table summarises the financial information relating to each of the Group’s significant equity accounted investments.

		Associates			Joint ventures
2026		Individually			Individually
US$M	Antamina	immaterial	Samarco 1	Vicuña	immaterial	Total
Current assets	2,405		957 2	109 2
Non‑current assets	7,219		8,142	5,057
Current liabilities	(1,561)		(3,610) 3	(119) 3
Non‑current liabilities	(2,532)		(24,912) 4	(12) 4
Net assets/(liabilities) – 100%	5,531		(19,423)	5,035
Net assets/(liabilities) – Group share	1,867		(9,712)	2,518
Adjustments to net assets related to accounting policy adjustments	(79)		−	75
Investment in Samarco	−		516 5	−
Impairment of the carrying value of the investment in Samarco	−		(1,041) 6	−
Recognised additional share of losses, net of capital contributions	−		6,628	−
Unrecognised losses	−		3,609 7	−
Carrying amount of investments accounted for using the equity method	1,788	33	−	2,593	−	4,414
Revenue – 100%	7,473		1,955	−
Profit/(loss) – 100%	3,029		(4,210) 8	(10) 9
Share of profit/(loss) of equity accounted investments	1,022		(2,105)	(5)
Adjustments to share of profit/(loss) related to accounting policy adjustments	−		−	−
Impairment of the carrying value of the investment in Samarco	−		−	−
Additional share of Samarco losses	−		600	−
Fair value change on forward exchange derivatives	−		458	−
Movement in unrecognised losses	−		727 7	−
Profit/(loss) from equity accounted investments, related impairments and expenses	1,022	(123)	(320)	(5)	−	574
Comprehensive income – 100%	3,029		(4,210)	(10)
Share of comprehensive income/(loss) – Group share in equity
accounted investments	1,022	(123)	(320)	(5)	−	574
Dividends received from equity accounted investments	895	−	−	−	−	895

178 BHP Annual Report 2026

		Associates		Joint ventures
2025		Individually			Individually
US$M	Antamina	immaterial	Samarco 1	Vicuña	immaterial	Total
Current assets	1,773		877 2	54 2
Non‑current assets	6,944		6,485	4,570
Current liabilities	(970)		(6,180) 3	(61) 3
Non‑current liabilities	(2,599)		(20,404) 4	(3) 4
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 5	−
Impairment of the carrying value of the investment in Samarco	−		(1,041) 6	−
Recognised additional share of losses, net of capital contributions	−		7, 25 4	−
Unrecognised losses	−		2,882 7	−
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) 8	2 9
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 7	−
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

		Associates		Joint ventures
2024		Individually		Individually
US$M	Antamina	immaterial	Samarco 1	immaterial	Total
Revenue – 100%	4,381		1,553
Profit/(loss) – 100%	1,353		(6,726) 8
Share of profit/(loss) of equity accounted investments	457		(3,363)
Adjustments to share of profit/(loss) related to accounting policy adjustments	8		(6) 10
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 7
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

1. Refer to note 4 ‘Significant events – Samarco dam failure’ for further information regarding the financial impact of the Samarco dam failure which occurred in November 2015 on BHP

Brasil’s share of Samarco’s losses. The financial information disclosed represents the underlying financial information of Samarco updated to reflect the Group’s best estimate of future

cost estimates with the obligations set out in the Brazil Settlement Agreement, along with estimates associated with the United Kingdom group action claim.

2. Includes cash and cash equivalents of US$454 million (2025: US$419 million) in Samarco and US$103 million (2025: US$53 million) in Vicuña.

3. Includes current financial liabilities (excluding trade and other payables and provisions) of US$ nil (2025: US$ nil) in Samarco and US$7 million (2025: US$1 million) in Vicuña.

4. Includes non‑current financial liabilities (excluding trade and other payables and provisions) of US$4,957 million (2025: US$4,625 million) in Samarco and US$13 million

(2025: US$3 million) in Vicuña.

5. Any working capital funding provided to Samarco is capitalised as part of the Group’s investments in joint ventures and disclosed as an impairment included within the Samarco impairment

expense line item.

6. In the year ended 30 June 2016, BHP Brasil recognised an impairment of US$525 million to impair its investment in Samarco to US$ nil. Subsequently, additional cumulative impairment

losses relating to working capital funding of US$516 million have been recognised. Following the Judicial Reorganisation in September 2023, no further working capital funding has

been provided.

7. Share of Samarco’s losses for which BHP Brasil does not have an obligation to fund.

8. Includes depreciation and amortisation of US$205 million (2025: US$165 million; 2024: US$165 million), interest income of US$102 million (2025: US$54 million; 2024: US$43 million),

interest expense of US$1,400 million (2025: US$1,686 million; 2024: US$807 million), other finance income in relation to the Judicial Reorganisation of US$ nil (2025: US$ nil;

2024: US$1,756 million) and income tax (expense)/benefit of US$(632) million (2025: US$(623) million; 2024: US$999 million).

9. Includes depreciation and amortisation of US$10 million (2025: US$1 million), interest income of US$3 million (2025: US$ nil), interest expense of US$1 million (2025: US$ nil) and income

tax benefit/(expense) of US$ nil (2025: US$ nil).

10. Includes accounting policy adjustments mainly related to the removal of foreign exchange gains on excluded dividends payable.

179

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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
			2026	2025
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
	2026	2025
	US$M	US$M
Current assets	2,490	1,967
Non‑current assets	26,710	25,275
Total assets 1	29,200	27, 242

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.

31 Related party transactions

The Group’s related parties are predominantly subsidiaries, associates and joint ventures, and key management personnel of the Group.

Disclosures relating to key management personnel are set out in note 25 ‘Key management personnel’. Transactions between each parent company

and its subsidiaries are eliminated on consolidation and are not disclosed in this note. In the Consolidated Financial Statements of the Group:

– All transactions to/from related parties are made at arm’s length, i.e. at normal market prices and rates and on normal commercial terms.

– Outstanding balances at year‑end are unsecured and settlement occurs in cash. Loan amounts owing from related parties represent secured loans

made to associates and joint ventures under co‑funding arrangements. Such loans are made on an arm’s length basis.

– No guarantees are provided or received for any related party receivables or payables.

– No provision for expected credit losses has been recognised in relation to any outstanding balances and no expense has been recognised in respect

of expected credit losses due from related parties.

– There were no other related party transactions in the year ended 30 June 2026 (2025: US$ nil), other than those with post‑employment benefit plans

for the benefit of Group employees. These are shown in note 27 ‘Employee benefits, restructuring and post‑retirement employee benefits provisions’.

– Related party transactions with Samarco are described in note 4 ‘Significant events – Samarco dam failure’.

Further disclosures related to related party transactions are as follows:

Transactions with related parties

	Joint ventures		Associates
	2026	2025	2026	2025
	US$M	US$M	US$M	US$M
Sales of goods/services	−	−	−	−
Purchases of goods/services	−	−	2,673.037	1,702.477
Interest income	−	−	−	−
Interest expense	−	−	−	−
Dividends received	−	−	894.375	374.972
Net loans made to/(repayments from) related parties	−	−	−	−

Outstanding balances with related parties

	Joint ventures		Associates
	2026	2025	2026	2025
	US$M	US$M	US$M	US$M
Trade amounts owing to related parties	−	−	363.386	224.091
Loan amounts owing to related parties	−	−	−	−
Trade amounts owing from related parties	−	−	0.653	1.557
Loan amounts owing from related parties	−	−	−	−

180 BHP Annual Report 2026

Unrecognised items and uncertain events

32 Contingent liabilities

	2026	2025
	US$M	US$M
Associates and joint ventures 1	2,003	1,664
Subsidiaries and joint operations 1	1,060	911
Total	3,063	2,575

1. There are a number of matters, for which it is not possible at this time to provide a range of possible outcomes or a reliable estimate of potential future exposures, and for which no

amounts have been included in the table above.

A contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by occurrence or non‑occurrence of one

or more uncertain future events not wholly within the control of the Group. A contingent liability may also be a present obligation arising from past events

but is not recognised on the basis that an outflow of economic resources to settle the obligation is not viewed as probable, or the amount of the obligation

cannot be reliably measured.

When the Group has a present obligation, an outflow of economic resources is assessed as probable and the Group can reliably measure the obligation,

a provision is recognised.

The Group has entered into various counter‑indemnities of bank and performance guarantees related to its own future performance, which are in the

normal course of business. The likelihood of these guarantees being called upon is considered remote.

The Group presently has tax matters, litigation and other claims, for which the timing of resolution and potential economic outflow are uncertain.

Obligations assessed as having probable future economic outflows capable of reliable measurement are provided at reporting date and matters

assessed as having possible future economic outflows capable of reliable measurement are included in the total amount of contingent liabilities above.

Individually significant matters, including narrative on potential future exposures incapable of reliable measurement, are disclosed below, to the extent that

disclosure does not prejudice the Group.

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 regards.
royalty matters	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 and	Where the Group divests or demerges entities, it is generally agreed to provide certain indemnities to the acquiring or demerged entity.
demergers	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 2026.

33 Subsequent events

On 18 August 2026, BHP completed a transaction with Global Infrastructure Partners (GIP) in relation to BHP’s share of WAIO’s inland power

consumption. The parties have entered into a new UK transaction with the same commercial effect as the agreement announced on 9 December 2025

and that agreement has been terminated. GIP has provided US$2 billion in funding for a 49% stake in a partnership. BHP retains full operational control

of WAIO including its inland power infrastructure and the new agreement does not affect ownership of any WAIO assets, including the WAIO inland

power infrastructure.

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.

181

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1 Consolidated Financial Statements continued

Other items

34 Auditor’s remuneration

	2026	2025	2024
	US$M	US$M	US$M
Fees payable to the Group’s auditors for assurance services
Audit of the Group’s Annual Report	10.419	10.295	10.558
Audit of the accounts of subsidiaries, joint ventures and associates	0.692	0.551	0.534
Audit‑related assurance services required by legislation to be provided by the auditor	1.907	1.814	1.871
Other assurance and agreed‑upon procedures under legislation or contractual arrangements	2.423	2.093	2.261
Total assurance services	15.441	14.753	15.224
Fees payable to the Group’s auditors for non‑assurance services
Other services	−	−	0.498
Total other services	−	−	0.498
Total fees	15.441	14.753	15.722

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 FY2026 and FY2025. Other services provided in FY2024 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:

	2026	2025
	US$M	US$M
Income statement information for the financial year
Profit after taxation for the year	7,072	10,602
Total comprehensive income	7,072	10,600
Balance sheet information as at the end of the financial year
Current assets	3,065	7,497
Total assets	50,326	49,677
Current liabilities	1,479	1,340
Total liabilities	1,687	1,525
Share capital	4,891	4,727
Treasury shares	(39)	(18)
Reserves	237	184
Retained earnings	43,550	43,259
Total equity	48,639	48,152

Parent company guarantees

BHP Group Limited has guaranteed certain financing arrangements available to subsidiaries of US$7,336 million at 30 June 2026 (2025:

US$5,331 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 2026 amounted to US$3,500 million (2025: US$3,500 million).

In addition, BHP Group Limited is the sole guarantor of a Group Revolving Credit Facility of US$5,500 million (2025: US$5,500 million), which

remains undrawn.

BHP Group Limited has severally, fully and unconditionally guaranteed the payment of principal and premium, if any, and interest related to

US$11,000 million (2025: US$10,500 million) of US Global bonds issued by BHP Billiton Finance (USA).

BHP Group Limited has guaranteed the obligations of subsidiary entities party to the Antamina silver streaming agreement, up to a cap of

US$4,300 million (2025: US$ nil).

182 BHP Annual Report 2026

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 2026:

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 2026, 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 2026 and 30 June 2025 are as follows:

	2026	2025
Consolidated Statement of Comprehensive Income and Retained Earnings	US$M	US$M
Revenue	30,137	28,032
Other income	2,755	2,933
Expenses excluding net finance costs	(19,702)	(20,604)
Net finance costs	(1,642)	(1,174)
Total taxation expense	(3,068)	(2,395)
Profit after taxation	8,480	6,792
Total other comprehensive income	(1)	(3)
Total comprehensive income	8,479	6,789
Retained earnings at the beginning of the financial year	39,882	39,374
Profit after taxation for the year	8,480	6,792
Transfers to and from reserves	(55)	2
Dividends	(6,761)	(6,286)
Retained earnings at the end of the financial year	41,546	39,882

183

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1 Consolidated Financial Statements continued

36 Deed of Cross Guarantee continued

	2026	2025
Consolidated Balance Sheet	US$M	US$M
ASSETS
Current assets
Cash and cash equivalents	5	7
Trade and other receivables	2,103	1,941
Loans to related parties	10,464	13,505
Other financial assets	133	196
Inventories	3,753	2,639
Current tax assets	−	323
Other	83	106
Total current assets	16,541	18,717
Non‑current assets
Trade and other receivables	31	27
Other financial assets	119	183
Inventories	638	574
Property, plant and equipment	43,556	42,128
Intangible assets	1,625	1,494
Investments in Group companies	35,689	30,477
Non‑current tax assets	37	−
Other	−	1
Total non‑current assets	81,695	74,884
Total assets	98,236	93,601
LIABILITIES
Current liabilities
Trade and other payables	4,386	3,771
Loans from related parties¹	32,267	21,675
Interest bearing liabilities	231	219
Other financial liabilities	8	4
Current tax payable	309	−
Provisions	2,298	2,152
Deferred income	1	3
Total current liabilities	39,500	27, 824
Non‑current liabilities
Trade and other payables	26	36
Loans from related parties	5,488	14,498
Interest bearing liabilities	781	677
Other financial liabilities	4	7
Deferred tax liabilities	235	539
Provisions	5,285	4,803
Total non‑current liabilities	11,819	20,560
Total liabilities	51,319	48,384
Net assets	46,917	45,217
EQUITY
Share capital – BHP Group Limited	5,179	5,015
Treasury shares	(39)	(18)
Reserves	231	338
Retained earnings	41,546	39,882
Total equity	46,917	45,217

1. In July 2026, US$9.7 billion of Loans from related parties – Current was refinanced to mature in FY2032. At the time of refinancing, this causes the loans to be reclassified as Loans from

related parties – Non‑current.

184 BHP Annual Report 2026

37 New and amended accounting standards and interpretations and changes to accounting policies

New and amended accounting pronouncements on issue but not yet effective

IFRS 18/AASB 18 ‘Presentation and Disclosure in Financial Statements’ (IFRS 18)

On 9 April 2024 and 14 June 2024, the IASB and AASB, respectively, issued IFRS 18 for reporting periods beginning on or after 1 January 2027,

with early application permitted.

IFRS 18 will replace IAS 1 Presentation of Financial Statements. While largely retaining existing requirements, the standard establishes additional

requirements for classifying and presenting items in the Income Statement, including mandatory categorisation of income and expense (e.g. operating,

investing, financing, taxation and discontinued operations), and is more prescriptive in areas such as interest presentation. It also introduces new

disclosure requirements for management‑defined performance measures (MPMs) and strengthens principles for aggregation and disaggregation

in both the primary financial statements and accompanying notes. IFRS 18 does not change the recognition or measurement of assets, liabilities,

income or expense.

The Group continues to assess the implications of IFRS 18 and notes, on a preliminary basis, the application of the standard is expected to result in

changes to the presentation of the Group’s financial performance, including the introduction of a mandated ‘operating profit or loss’ subtotal and the

reclassification of certain income and expense between operating, investing and financing categories. This includes, for example, the presentation of

results from equity accounted investments and related income and expense within the investing category.

Consequential changes are also expected in the Cash Flow Statement, including the reclassification of interest and dividends received from operating

to investing activities and interest paid to financing activities.

The Group has performed an initial assessment of MPMs and expects that Underlying attributable profit and Underlying EBITDA will meet the

MPM definition.

Additional changes to presentation and disclosure, including applying the enhanced requirements for aggregation and disaggregation of information

and the separate presentation of certain Balance Sheet captions, such as goodwill, are also expected.

The Group intends to adopt IFRS 18 from its mandatory effective date for the year ending 30 June 2028, with comparative information restated in

accordance with the standard.

Nature-dependent Electricity – IFRS 9/AASB 9 Financial Instruments and IFRS 7/AASB 7 Financial Instruments: Disclosures amendments

Amendments to IFRS 9 and IFRS 7, effective for periods commencing from 1 January 2026, aim to improve reporting of nature‑dependent electricity

contracts (such as power purchase agreements) by clarifying the ‘own‑use’ exemption and hedge accounting requirements for such arrangements, as

well as introducing additional disclosure requirements. Management is currently assessing the impact of the amendments and while no material impact

has been identified to date, future impacts may arise as the Group enters into new or amends existing arrangements.

A number of other accounting standards and interpretations have been issued and will be applicable in future periods. While these remain subject to

ongoing assessment, no significant impacts have been identified to date.

These pronouncements have not been applied in the preparation of these Financial Statements.

185

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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 2026.

			Body corporates
	Body corporate,	Place incorporated	Percentage of	Tax
Entity name	partnership or trust	or formed	share 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 Infrastructure (WAIO Power) Pty Ltd	Body corporate	Australia	100%	Australia
BHP Infrastructure Finance (WAIO Power) Pty Ltd	Body corporate	Australia	100%	Australia
BHP Infrastructure Finance Pty Ltd	Body corporate	Australia	100%	Australia
BHP Infrastructure 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 Dove) Pty Ltd	Body corporate	Australia	100%	Australia
BHP Towage Services (Iron Finch) 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

186 BHP Annual Report 2026

			Body corporates
	Body corporate,	Place incorporated	Percentage of	Tax
Entity name	partnership or trust	or formed	share capital held	residency 1
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 (RT Discovery) Pty Ltd	Body corporate	Australia	100%	Australia
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 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
Ethel Creek Company Partnership	Partnership	N/A	N/A	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
Mt Keith Pastoral Partnership	Partnership	N/A	N/A	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
WAIO Energy Pty Ltd 5	Body corporate	Australia	100%	Australia
WAIO Energy Trust	Trust	N/A	N/A	Australia
WAIO Power Pty Ltd 6	Body corporate	Australia	100%	Australia
WAIO Power Trust	Trust	N/A	N/A	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
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

187

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2 Consolidated entity disclosure statements continued

			Body corporates
	Body corporate,	Place incorporated	Percentage of	Tax
Entity name	partnership or trust	or formed	share capital held	residency 1
BHP Billiton Brasil Ltda	Body corporate	Brazil	100%	Brazil
BHP Internacional Participacoes Ltda	Body corporate	Brazil	100%	Brazil
Consórcio Santos Luz de Imóveis Ltda	Body corporate	Brazil	90%	Brazil
Jenipapo Recursos Naturais Ltda.	Body corporate	Brazil	100%	Brazil
WMC Mineracao Ltda.	Body corporate	Brazil	100%	Brazil
BHP Billiton UK Holdings Limited	Body corporate	British Virgin Islands	100%	United Kingdom
BHP Billiton UK Investments Limited	Body corporate	British Virgin Islands	100%	United Kingdom
BHP Canada Inc. 7	Body corporate	Canada	100%	Canada
BHP Investments Canada Inc	Body corporate	Canada	100%	Canada
BHP SaskPower Carbon Capture	Body corporate	Canada	50%	Canada
and Storage (CCS) Knowledge Centre Inc.
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	57.5 0%	Chile
Minera Escondida Ltda	Body corporate	Chile	57.5 0%	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
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 8
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 8
Billiton Investment 3 B.V.	Body corporate	Netherlands	100%	United Kingdom, Netherlands 8
Billiton Investment 8 B.V.	Body corporate	Netherlands	100%	United Kingdom, Netherlands 8
Billiton Marketing Holding B.V.	Body corporate	Netherlands	100%	Netherlands
Billiton Suriname Holdings B.V.	Body corporate	Netherlands	100%	United Kingdom, Netherlands 8
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
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 Singapore Pte Ltd	Body corporate	Singapore	100%	Singapore
Westminer 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

188 BHP Annual Report 2026

				Body corporates
		Body corporate,	Place incorporated	Percentage of	Tax
Entity name		partnership or trust	or formed	share capital held	residency 1
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
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. 9		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 the trustee of WAIO Energy Trust.

6. Entity is the trustee of WAIO Power Trust.

7. Entity is a participant in the BHP SaskPower Carbon Capture and Storage (CCS) Knowledge Centre Inc. joint venture.

8. Entity is a tax resident of the United Kingdom for the purposes of the United Kingdom‑Netherlands double tax agreement.

9. Entity is a participant in the Minera Escondida Ltda joint venture.

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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 2026

and of their performance for the year ended 30 June 2026

(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 2026

Signed in accordance with a resolution of the Board of Directors.

Ross McEwan Brandon Craig

Chair

18 August 2026

Chief Executive Officer

190 BHP Annual Report 2026

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 and for the review and audit of the Sustainability Report for the financial

year ended 30 June 2026, 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 audits and review;

b) no contraventions of any applicable code of professional conduct in relation to the audits and review; and

c) no non‑audit services provided that contravene any applicable code of professional conduct in relation to the audits and review.

This declaration is in respect of BHP Group Limited and the entities it controlled during the financial year.

Insert signature

Ernst & Young

Rodney Piltz

Partner

Melbourne

18 August 2026

A member firm of Ernst & Young Global Limited

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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 2026, 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 2026 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 how its current climate change strategy has the potential to impact the financial statements as outlined in Note 16 of

the financial report.

Our audit, with the assistance of our climate change specialists, considered the Group’s current climate change strategy, including the

climate‑related risks 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 2026.

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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192 BHP Annual Report 2026

DRAFT

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.

– 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.

During the year, the Group determined that indicators of impairment

existed for the Jansen project CGU, requiring an impairment test to

determine the recoverable amount of the CGU.

As disclosed in Note 13 of the financial report, the Group assessed

the recoverable amount of the Jansen project CGU using a Fair Value

Less Cost of Disposal (FVLCD) methodology.

An impairment charge of US$2,300 million was recorded for the

Jansen project CGU.

In addition to the key input assumptions detailed above, as a

development stage project, the capital expenditure forecast to

complete Stages 1 and 2 of the Jansen project CGU is also a key input

assumption. Forecasting capital expenditure in the development phase

is complex and involves significant estimation uncertainty.

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, 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.

Our procedures to address the recoverable amount of the Jansen

project CGU included:

– Evaluation of the Group’s FVLCD methodology for compliance

with the requirements of the relevant Accounting Standards;

– Independent assessment of the commodity price forecasts

adopted with reference to external analyst data;

– Independent assessment of the discount rate adopted, with

reference to external market data;

– Determination of whether cash flow projections for operating

and capital expenditure agreed to approved plans;

– Assessment of the impacts of climate change as set out in our

climate change related procedures below;

– Assessed how a market participant would attribute value under

a FVLCD methodology;

– Performance of sensitivity analysis to evaluate the impact of

reasonably possible changes in key assumptions such as commodity

price forecasts, discount rates, future production quantities, and

forecast operating costs and capital expenditure; and

– Testing the mathematical accuracy of the impairment model

and calculated recoverable amount.

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 or reversal and impairment testing.

– 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

and 13 of the financial report.

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Closure and rehabilitation provisions

Why significant How our audit addressed the key audit matter

5 Independent auditor’s report to the members of BHP Group Limited continued

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

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 Note 15 of

the financial report.

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194 BHP Annual Report 2026

Samarco dam failure provisions recognised

Why significant How our audit addressed the key audit matter

Refer to Note 3 ‘Exceptional items’ and Note 4 ‘Significant events –

Samarco dam failure’.

As at 30 June 2026, BHP has recorded a provision for liabilities arising

as a consequence of the Samarco dam failure. The provision includes

the future cost estimates associated with the obligations set out in the

Settlement Agreement reached with the Brazilian Public Authorities

in October 2024 along with estimates associated with the UK Group

Action claim, following the decision by the English High Court in

November 2025.

Significant uncertainty exists in estimating the provision, 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:

– Estimating the costs relating to the UK Group Action under the

English High Court decision; and

– Assessing the extent to which Samarco is able to directly fund any

future obligations.

We identified the Samarco dam failure provisions recognised, as a key

audit matter as auditing this estimate 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, including the probability of the outflows.

The primary audit procedures we performed, 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:

– Measuring the provision, including significant assumptions

in the estimate of future obligations; and

– Estimating the amount of funding Samarco is able to directly

contribute to fund any future obligations. 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 estimates;

– Evaluating the qualifications, competence and objectivity

of the Group’s subject matter experts that contribute to the

determination of the cost estimates by considering their

qualifications, scope of work and remuneration structure;

– Comparing the nature and extent of obligations under the

Settlement Agreement and assessing the impact of the

UK Group Action decision on the cost estimates;

– 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

costs with respect to the Group’s current year actual costs;

– Inquiries with the Group’s internal legal advisors, senior

management, Group finance, and members of the Executive

Leadership Team; and

– Independent confirmation letters received from external

legal advisors.

We assessed the disclosures regarding the provision for the Samarco

dam failure as included in Note 4 against the disclosure requirements

of the relevant Australian Accounting Standards.

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5 Independent auditor’s report to the members of BHP Group Limited continued

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

2026 annual report other than 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 in this auditor’s report, with the exception of the Remuneration

Report and our related assurance opinion. We have issued a separate

auditor’s report over sustainability information included in the

Company’s 2026 annual report.

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 2026.

In our opinion, the Remuneration Report of BHP Group Limited for

the year ended 30 June 2026, 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

18 August 2026

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196 BHP Annual Report 2026

1 Information on mining operations 197

2 Financial information summary 208

3 Financial information by commodity 209

4 Production 211

5 Major projects 213

6 Mineral Resources and Ore Reserves 214

7 People – performance data 227

8 Legal proceedings 228

9 Shareholder information 232

9.1 History and development 232

9.2 Markets 232

9.3 Organisational structure 232

9.4 Constitution 232

9.5 Share ownership 234

9.6 Dividends 235

9.7 American Depositary Receipts fees and charges 235

9.8 Supplemental cybersecurity disclosures for US reporting 236

9.9 Government regulations 236

10 Glossary 238

Additional information

Minerals Australia

Iron ore mining operations

The following table contains additional details of our iron ore mining

operations. This table should be read in conjunction with OFR 4.2 and

the production table and reserves and resources tables in Additional

information 4 and 6.

Mine & location

WAIO Pilbara region, Western Australia

Newman West (Mt Whaleback, Orebodies 29, 30, 31

and 35)

Newman East (Orebodies 24, 25 and 32)

Mt Newman joint venture

Means of access Private road

Ore transported by Mt Newman JV‑owned rail to

Port Hedland (427 km)

Type and amount

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; also present is iron‑rich detrital material

Power source Power for all mine operations in the Central and Eastern

Pilbara is supplied by BHP’s natural gas‑fired Yarnima

power station

Power consumed in port operations is supplied via

a contract with APA Group

Processing plants

and other available

facilities

Newman Hub: primary crusher (includes those at

Orebodies 18 and 24), ore handling plant, heavy media

beneficiation plant, stockyard blending facility, single

cell rotary car dumper, train load out (nominal capacity

75 Mtpa)

Orebody 25: Ore processing plant (nominal capacity

12 Mtpa) ceased operation mid‑FY2022

Key permit

conditions

State Agreement contains conditions set by the

Western Australian Government, including requirements

for future development proposals; environmental

compliance and reporting obligations; closure and

rehabilitation considerations; local procurement and

community plans/initiatives/investment requirements;

payment of rent, taxes and government royalties

Tenements granted by the Western Australian

Government under the Mining Act 1978 (WA)

(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

1 Information on mining operations

197

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Additional Information

1 Information on mining operations continued

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)

Ministers North

Jimblebar operation*

Means of access Private road

Jimblebar ore is transported via overland conveyor

(12.4 km) and by Mt Newman JV‑owned rail to

Port Hedland (428 km)

The Western Ridge deposits are located close to

Newman Operations and all production will be trucked

and/or transported via overland conveyor

The Ministers North deposit is located close to Yandi

operations, and all production will be trucked to Yandi

Type and amount

of ownership

BHP Minerals 85%

ITOCHU Minerals and Energy of Australia 8%

Mitsui & Co. Iron Ore Exploration & Mining 7%

*Jimblebar is an ‘incorporated’ venture with the above

companies holding A Class Shares with rights to certain

parts of mining lease 266SA held by BHP Iron Ore

(Jimblebar) Pty Ltd (BHPIOJ)

BHP Minerals holds 100% of the B Class Shares, which

has rights to all other Jimblebar assets

Operator BHP

Title, leases

or options and

acreage involved

Mining lease granted pursuant to the Iron Ore

(McCamey’s Monster) Agreement Authorisation Act

1972 expires in 2030 with rights to successive renewals

of 21 years each

M266SA – approximately 51,756 hectares

History and stage

of property

Production stage

Production began in March 1989

From 2004, production was transferred to Wheelarra JV

as part of the Wheelarra sublease agreement

This sublease agreement expired in March 2018

Ore was first produced from the newly commissioned

Jimblebar Hub in late 2013

Jimblebar sells ore to the Newman JV proximate to the

Jimblebar Hub

Production at Western Ridge commenced in FY2022

Ministers North feasibility study completed and the

project has moved into execution, with production due to

commence in FY2029

Mine type &

mineralisation

style

Open‑cut

Bedded ore types classified as per host Archaean or

Proterozoic banded iron formation, which are Brockman

and Marra Mamba; also present is iron‑rich detrital

material

Power source Power for all mine operations in the Central and Eastern

Pilbara is supplied by BHP’s natural gas‑fired Yarnima

power station

Power consumed in port operations is supplied via a

contract with APA Group

Processing plants

and other available

facilities

3 primary crushers, ore handling plant, train load out,

stockyard blending facility and supporting mining hub

infrastructure (nominal capacity 71 Mtpa)

Production from the Western Ridge deposits will be

processed through a new crusher (under construction)

and existing processing facility for Newman operations

Ore from Ministers North will be transported using haul

trucks for further processing at the existing facility for

Yandi operations

Key permit

conditions

State Agreement contains conditions set by the Western

Australian Government, including requirements for future

development proposals; environmental compliance

and reporting obligations; closure and rehabilitation

considerations; local procurement and community plans/

initiatives/investment requirements; payment of rent,

taxes and government royalties

Tenements granted by the Western Australian

Government under the WA Mining Act

Key permit conditions include resource reporting,

environmental compliance and reporting, rehabilitation

considerations and offset payments and payment of

lease rentals and royalties

Registered Indigenous Land Use Agreement

with conditions, including appropriate native title

compensation and opportunity sharing; enshrine

heritage protections and land access rights; and

guarantee certain heritage, environment and

consultation processes

198 BHP Annual Report 2026

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

Title, leases

or options and

acreage involved

1 mineral lease and 1 mining lease both granted

pursuant to the Iron Ore (Goldsworthy – Nimingarra)

Agreement Act 1972, expire in 2035, with rights to

successive renewals of 21 years each. ML251SA and

M263SA – approximately 15,623 hectares

A number of smaller mining leases granted under the WA

Mining Act expire in 2026 with rights to successive renewals

of 21 years. 5 leases – approximately 2,999 hectares

3 mineral leases granted under the Iron Ore (Mount

Goldsworthy) Agreement Act 1964, which expire 2028,

with rights to successive renewals of 21 years each

ML235SA, ML249SA and ML281SA – approximately

91,124 hectares

History and stage

of property

Production stage

Operations commenced at Mt Goldsworthy in 1966

and at Shay Gap in 1973

Original Goldsworthy mine closed in 1982

Associated Shay Gap mine closed in 1993

Mining at Nimingarra mine ceased in 2007, then

continued from adjacent Yarrie area

Production commenced at Mining Area C mine in 2003

Yarrie mine operations were suspended in February 2014

First ore at South Flank commenced in May 2021

Mine type &

mineralisation

style

Mining Area C, South Flank, Yarrie and Nimingarra are

open‑cut

Bedded ore types classified as per host Archaean

or Proterozoic iron formation, which are Brockman,

Marra Mamba and Nimingarra; also present is iron‑rich

detrital material

Power source Power for Yarrie and Shay Gap is supplied by their own

small diesel generating stations

Power for all remaining mine operations in the Central

and Eastern Pilbara is supplied by BHP’s natural

gas‑fired Yarnima power station

Power consumed in port operations is supplied via

a contract with APA Group

Processing plants

and other available

facilities

Mining Area C: 2 primary crushers, 2 ore handling

plants, stockyard blending facility and train load out

(nominal capacity 64 Mtpa)

South Flank: 2 primary crushers, 1 ore handling plant,

stockyard and blending facility and train load out

(nominal capacity 80 Mtpa)

Key permit

conditions

State Agreements contain conditions set by the Western

Australian Government, including requirements for future

development proposals; environmental compliance

and reporting obligations; closure and rehabilitation

considerations; local procurement and community plans/

initiatives/investment requirements; payment of rent, taxes

and government royalties

Tenements granted by the Western Australian

Government under the WA Mining Act

Key permit conditions include resource reporting,

environmental compliance and reporting, rehabilitation

considerations and offset payments and payment of

lease rentals and royalties

Registered Indigenous Land Use Agreements with

conditions, including appropriate native title compensation

and opportunity sharing; enshrine heritage protections

and land access rights; and guarantee certain heritage,

environment and consultation processes

Mine & location

WAIO Pilbara region, Western Australia

POSMAC joint venture

Means of access Private road

POSMAC JV sells ore to Mt Goldsworthy JV at Mining

Area C

Ore is transported via Mt Goldsworthy JV‑owned rail and

Mt Newman JV‑owned rail to Port Hedland

Mt Goldsworthy JV railway spur links Mining Area C to

Yandi JV’s railway spur

Type and amount

of ownership

BHP Minerals 65%

ITOCHU Minerals and Energy of Australia 8%

Mitsui Iron Ore Corporation 7%

POS‑Ore 20%

Operator BHP

Title, leases

or options and

acreage involved

Sublease over part of Mt Goldsworthy Mining Area C

mineral lease that expires on the earlier of termination of

the mineral lease or the end of the POSMAC JV

ML281SA – approximately 56,335 hectares

History and stage

of property

Production stage

Production commenced in October 2003 and ceased in

January 2026.

POSMAC JV sells all ore to Mt Goldsworthy JV

at Mining Area C

Mine type &

mineralisation

style

Open‑cut

Bedded ore types classified as per host Archaean or

Proterozoic iron formation, which is Marra Mamba

Power source Power for all mine operations in the Central and Eastern

Pilbara is supplied by BHP’s natural gas‑fired Yarnima

power station

Power consumed in port operations is supplied via a

contract with APA Group

Processing plants

and other available

facilities

POSMAC sells all ore to Mt Goldsworthy JV, which is

then processed at Mining Area C

Key permit

conditions

Key permit conditions of POSMAC joint venture are

captured within the Mount Goldsworthy joint venture key

permit conditions outlined above

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1 Information on mining operations continued

Coal mining operations

The following table includes details about our mining operations as at

30 June 2026.

This table should be read in conjunction with OFR 4.3 and the production

table and reserves and resources tables in Additional information 4 and 6.

Mine & location

BHP Mitsubishi

Alliance (BMA)

All mining operations are in Bowen Basin, Queensland

Australia

Goonyella Riverside

Broadmeadow

Caval Ridge

Peak Downs

Saraji and Saraji South mines

Central Queensland Coal Associates joint venture

Means of access Public road

Coal transported by rail to Hay Point Coal Terminal

Distances between the mines and port are between

191 km and 212 km

Type and amount

of ownership

BHP 50%

Mitsubishi Development 50%

Operator BMA

Title, leases

or options and

acreage involved

Mining leases, including undeveloped tenements, have

expiry dates ranging up to 2045, renewable for further

periods as Queensland Government legislation allows

Approximately 79,752 hectares

Mining is permitted to continue under the legislation

during the renewal application period

All required renewal applications were lodged and

pending a decision from the Minister

History and stage

of property

Production stage

Production commenced at:

– Goonyella Riverside in 1971 (Goonyella in 1971,

Riverside in 1989)

– Peak Downs in 1972

– Saraji in 1974

– Saraji South (Norwich Park) in 1979

– Broadmeadow (longwall operations) in 2005

– Caval Ridge in 2014

Production at Saraji South (formerly Norwich Park)

ceased in May 2012. Since October 2022, limited

product has been sourced from Saraji South for

processing at Saraji. In December 2025, Saraji South

mine was placed into a period of care and maintenance

Mine type &

mineralisation

style

All open‑cut except Broadmeadow (longwall

underground)

Bituminous coal is mined from the Permian Moranbah

Coal measures

Products range from premium‑quality, low‑volatile,

high‑vitrinite hard coking coal to medium‑volatile hard

coking coal

Power source Queensland electricity grid connection is under

long‑term contracts and energy purchased under

Renewable Power arrangements and retail agreements

Processing plants

and other available

facilities

On‑site beneficiation processing facilities

Combined nominal capacity of 81 Mtpa ROM at 4%

moisture basis

Key permit

conditions

Key permit conditions are contained in the various

legislation set by the Queensland Government and

include conditions relating to carrying out works in

accordance with the environmental authority and

approved development plans, payment of rents,

reporting and payment of royalties. Mining leases

granted under the Central Queensland Coal Associates

Agreement Act 1968 place an extraction cap of 1,823 Mt

Mine & location

New South Wales

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 9 mining leases,

2 subleases and 1 exploration licence

Total mining leases approximately 8,346 hectares

History and stage

of property

Production stage

Production commenced in 2002 (previous operations

dating to the early 1960s)

Approval to expand mining granted in 2010 with an

additional area also granted by an approval modification

in 2014

In FY2022, BHP announced our decision to transition

Mt Arthur Coal to closure in 2030, based on the mine

reaching the end of its economic life. In FY2026, BHP

received the final approval from the Federal Government

following the approval from the NSW Government

to extend mining activities at Mt Arthur Coal for an

additional four years, from July 2026 to June 2030

Mine type &

mineralisation style

Open‑cut

Produces a medium rank bituminous thermal coal

Power source New South Wales electricity grid connection under

a deemed long‑term contract and energy purchased via

a retail agreement

Processing plants

and other available

facilities

Beneficiation facilities: coal handling, preparation,

washing plants

Nominal capacity in excess of 23 Mtpa

Key permit

conditions

The approval to extend mining activities until June 2030

contains key conditions on coal extraction, transport

limits and rehabilitation requirements under the Mining

Act 1992

Nickel mining operations

The following table contains additional details of our mining operations.

This table should be read in conjunction with OFR 4.4 and the production

table and reserves and resources tables in Additional information 4 and 6.

Mine & location

Nickel West 450 km north of Kalgoorlie, Western Australia

Mt Keith mine

Mt Keith satellite mine (Yakabindie)

Mt Keith mine and concentrator

Means of access Private road

Nickel concentrate transported by road to Leinster for

drying and on‑shipping

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

Mining leases granted by Western Australian

Government

Key leases expire between 2029 and 2037

First renewal of 21 years is as a right. Further renewals

at Minister’s discretion

Mt Keith mining leases approximately 9,240 hectares

Mt Keith satellite mining leases approximately

3,835 hectares

History and stage

of property

Production stage

Commissioned in 1995 by WMC

Acquired in 2005 as part of WMC acquisition

Mt Keith satellite mine contains 2 open‑pit mines:

Six Mile Well and Goliath, both in full production

Nickel West operations transitioned to temporary

suspension in the period ending 31 December 2024

200 BHP Annual Report 2026

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, 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

Mineral lease granted in accordance with State

Agreement ratified by the Nickel (Agnew) Agreement

Act 1974

Mining leases granted by Western Australian

Government

Key leases expire between 2029 and 2046

Renewals of principal mineral lease in accordance

with State Agreement ratified by the Nickel (Agnew)

Agreement Act 1974

Mining leases first renewal of 21 years is a right. Further

renewals at Minister’s discretion

Leinster mining leases approximately 6,325 hectares

Camelot mining leases approximately 2,353 hectares

History and stage

of property

Production stage

Production commenced in 1979

Acquired in 2005 as part of WMC acquisition

Leinster underground ceased operations in 2013 and

recommenced operations in 2016 with Venus sub‑level

cave now in operation and B11 block cave developing its

undercut and draw points

Rocky’s Reward open‑pit mine ceased mining in 2021

Nickel West operations transitioned to temporary

suspension in the period ending 31 December 2024

Mine type &

mineralisation

style

Open‑cut and underground

Steeply dipping disseminated and massive textured

nickel‑sulphide mineralisation associated with

metamorphosed ultramafic lava flows and intrusions

Power source On‑site third‑party gas‑fired turbines and renewable

solar generation with back up from diesel engine

generation

Contracts expire in December 2038

Natural gas sourced and transported under separate

long‑term contracts

Processing plants

and other available

facilities

Concentration plant with a nominal capacity of 3 Mtpa

of ore

Key permit

conditions

Use of the land for the purposes set out by the Western

Australian Government under the Nickel (Agnew)

Agreement Act 1974 and granted mining tenements

and broadly comprise of submission of detailed mining

proposals; payment of royalties, annual rent to the

State Government; rates to relevant local governments;

compliance with environmental regulations and mine

closure requirements and other reporting obligations.

Existing mining operations are also subject to an

Indigenous Land Use Agreement, which includes

commitments for payments made to trust accounts;

Indigenous employment and business opportunities;

heritage and cultural protections

Mine & location

Nickel West 450 km north of Kalgoorlie, Western Australia

Cliffs mine

Means of access Private road

Nickel ore transported by road to Leinster or Mt Keith for

further processing

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

Mining leases granted by Western Australian Government

Key leases expire between 2026 and 2046

First renewal of 21 years is as of right. Further renewals

at Minister’s discretion

Mining leases approximately 2,675 hectares

History and stage

of property

Production stage

Production commenced in 2008

Acquired in 2005 as part of WMC acquisition

Nickel West operations transitioned to temporary

suspension in the period ending 31 December 2024

Mine type &

mineralisation

style

Underground

Steeply dipping massive textured nickel‑sulphide

mineralisation associated with metamorphosed

ultramafic lava flows

Power source Supplied from Mt Keith

Processing plants

and other available

facilities

Mine site

Key permit

conditions

Use of the land for the purposes set out by the Western

Australian Government under granted mining tenements

and broadly comprise of submission of detailed mining

proposals; payment of royalties, annual rent to the

State Government; rates to relevant local government;

compliance with environmental regulations and mine

closure requirements and other reporting obligations.

Existing mining operations are also subject to an

Indigenous Land Use Agreement, which includes

commitments for payments made to trust accounts;

Indigenous employment and business opportunities;

heritage and cultural protections

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Mine & location

West Musgrave

Project

Musgrave Province, Western Australia

Means of access Public road

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

The Project contemplates 2 copper and nickel deposits

(Babel pit and Nebo pit) within the West Musgrave

Ranges of Western Australia

Mining lease granted by Western Australian Government

Key mining lease expires 2043

First renewal of 21 years is as a right. Further renewals

at Minister’s discretion

Development Envelope of 20,852 hectares

History and stage

of property

Scoping studies completed in 2017

Pre‑feasibility study completed by OZ Minerals and

Cassini Resources Ltd in 2020

Acquired by OZ Minerals in October 2020

Final investment decision in September 2022

Acquired in 2023 as part of OZ Minerals acquisition

West Musgrave Project transitioned to temporary

suspension in the period ending 31 December 2024

Mine type &

mineralisation

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

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

202 BHP Annual Report 2026

Copper South Australia

Copper mining operations

The following table contains additional details of our mining operations.

This table should be read in conjunction with OFR 4.1 and the production

table and reserves and resources tables in Additional information 4 and 6.

Mine & location

Olympic Dam 560 km northwest of Adelaide, South Australia

Means of access Public road

Final product transported by road and rail

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

Special Mining Lease (SML1) granted by South

Australian Government (pursuant to the Roxby Downs

(Indenture Ratification) Act 1982 (Indenture Act) expires

in 2036

Approximately 17,788 hectares

Right of extension for 50 years (subject to remaining

mine life)

History and stage

of property

Production stage

Acquired in 2005 as part of Western Mining Corporation

(WMC) acquisition

Copper production began in 1988

Nominal milling capacity raised to 9 Mtpa in 1999

New copper solvent extraction plant commissioned

in 2004

Major smelter maintenance campaigns completed

in 2017 and 2022

Nominal milling capacity raised to 11 Mtpa in 2023

Mine type &

mineralisation

style

Underground

Large poly‑metallic deposit of iron oxide‑copper‑

uranium‑gold mineralisation

Power source Electricity transmitted via BHP’s 275 kV power line

from Port Augusta and ElectraNet’s system upstream

of Port Augusta

Power is sourced from the local grid, which is supplied

under a retail contract, currently supplemented by a

Power Purchase Agreement with Neoen

Processing plants

and other available

facilities

Underground automated train and trucking network

feeding crushing, storage and ore hoisting facilities

2 grinding circuits

Nominal milling capacity of 11 Mtpa

Flash furnace produces copper anodes, which are then

refined to produce copper cathodes

Electrowon copper cathode and uranium oxide

concentrate produced by leaching and solvent extracting

flotation tailings

Gold cyanide leach circuit and gold room producing

gold bullion and silver bullion

Key permit

conditions

The Roxby Downs (Indenture Ratification) Act 1982

(Indenture Act) applies to Olympic Dam’s operations.

It contains conditions from the South Australian

Government, including relating to the protection and

management of the environment; water; closure

and rehabilitation considerations; local procurement

and community plans/initiatives/project commitments;

and payment of royalties. BHP and the South Australian

Government have agreed key amendments to the

Indenture, including to a pathway to expand Olympic

Dam mining tenure to support future growth plans, which

will become effective on a date to be set by the South

Australian Government in consultation with BHP

The Olympic Dam operations rely on an impact

assessment for operations conducted in 1997 (1997 EIS)

At a Commonwealth level, Olympic Dam relies on an

exemption from the Environment Protection Biodiversity

Conservation Act 1999 (EPBC Act) based on the 1997

EIS under the Environmental Reform (Consequential

Provisions) Act 1999

Mine & location

Carrapateena 470 km northwest of Adelaide, South Australia

Means of access 60 km private access road

Copper concentrate (containing gold and silver)

transported by road and rail

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

The Carrapateena Project holds a mining lease

(ML 6471) and 5 miscellaneous purposes licences

(MPL 149, 152, 153, 154 and 156), which were granted

by the South Australian Government and expire in

January 2039, with the exception of MPL 149 which

expires in July 2038

Approximately 44,144 hectares in size across all

6 tenements

An application for tenement extensions can be made

within 6 months of the tenement expiry date

History and stage

of property

2019 – First saleable concentrate produced

2020 – 4.25 Mtpa ramp up achieved

2022 – Cave propagated to surface

2023 – Acquired as part of OZ Minerals acquisition

2024 – Commissioning of Crusher Station 2

2025 – Commissioning of the Hydrofloat Project

2026 – 7 Mtpa ramp up achieved

Mine type &

mineralisation style

Underground

Iron oxide copper gold mineralisation

Power source Electricity transmitted via private high voltage power

line supplied by ElectraNet under a Build Own Operate

Maintain (BOOM) Agreement that is part of the

Transmission Connection Agreement (TCA)

Power is sourced from the local grid, which is supplied

under a retail agreement

Processing plants

and other available

facilities

Conventional crushing, grinding and flotation on

mine site

Nameplate milling capacity of ~7 Mtpa

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

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1 Information on mining operations continued

Mine & location

Prominent Hill 650 km northwest of Adelaide, South Australia

Means of access Mine access road (45 km off Stuart Highway)

Copper concentrate (containing gold and silver)

transported by road and rail

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

Mining lease ML 6228 granted by South Australian

Government expires in August 2041

Miscellaneous purpose licences (MPL 81, 82, 83, 84,

91, 93, 94, 96, 97, 101, 112 to 117, 119 to 122 and 169 to

176) and extractive mineral leases (EML 6234, 6236 to

6242, 6278 to 6296, 6299 to 6301) which were granted

by the South Australian Government and expire in

August 2041

Approximately 11,462 hectares across all 59 tenements

History and stage

of property

2009 – Malu open‑pit mine commissioned

2012 – Ankata underground mine expansion

commissioned

2015 – Malu underground mine expansion

commissioned

2017 – Expansion of the underground operation with

new northern decline (Liru)

2018 – Malu open‑pit mine safely closed after more than

100 Mt of ore mined over 10 years

2019 – Underground ramp up to 4.0 Mt

2023 – Acquired as part of OZ Minerals acquisition

2025 – Wira shaft sink completed

Mine type &

mineralisation style

Underground

Iron oxide copper gold mineralisation

Power source Electricity transmitted via a private high voltage power

line is supplied by ElectraNet under a Build Own

Operate Maintain (BOOM) Agreement that is part of the

Transmission Connection Agreement (TCA) and BHP’s

132 kV power line to Prominent Hill at a junction point

close to the Olympic Dam mine

Power is sourced from the local grid, which is supplied

under a retail agreement

Processing plants

and other available

facilities

Conventional crushing, semi‑autogenous grinding (SAG)

and ball mill grinding circuit and flotation processing

plant on site

Nameplate capacity of 10 Mtpa

Key permit

conditions

The SA Mining Act and associated Mining Regulations

2020 (SA) apply to the Prominent Hill operations. Each

tenement document (either ML or MPL) in conjunction

with the operation’s Program for Environment Protection

and Rehabilitation (PEPR), MPEPR2022/137 outlines

the conditions from the South Australian Government

that must be complied with including those relating to the

protection and management of the environment, water,

closure and rehabilitation

The Prominent Hill operations are also approved by the

Federal Government under the Environment Protection

and Biodiversity Conservation Act 1999 (EPBC Act) and

as such have further conditions regarding nationally

threatened flora and fauna species

Minerals Americas

Copper mining operations

The following table contains additional details of our mining operations.

This table should be read in conjunction with OFR 4.1 and the production

table and reserves and resources tables in Additional information 4 and 6.

Mine & location

Escondida Atacama Desert

170 km southeast of Antofagasta, Chile

Means of access Private road available for public use

Copper cathode transported by rail to ports at

Antofagasta and Mejillones

Copper concentrate transported by Escondida‑owned

pipelines to its Coloso port facilities

Type and amount

of ownership

BHP 57.5%

Rio Tinto 30%

JECO Corporation 10%

JECO 2 Ltd 2.5%

Operator BHP

Title, leases

or options and

acreage involved

Mining concession from Chilean Government valid

indefinitely (subject to payment of annual fees)

Mining concessions (exploitation) approximately

380,000 hectares

History and stage

of property

Production stage

Original construction completed and production

commenced in 1990

Start of operations of the third concentrator plant in 2015

Inauguration of Escondida Water Supply desalination

plant (CY2018) and its extension (CY2019)

Full SaL, a BHP‑designed technology, achieved first

production at Escondida in FY2025

Key permit

conditions

Mining companies in Chile must obtain environmental

approvals for their projects, issued by the Environmental

Assessment Agency (SEA), in order to operate, plus all

applicable permits from sectorial agencies

Depending on the particular impacts of the project to

be assessed, environmental approvals can be obtained

following a full Environmental Impact Study (EIA) or after

a less complex Environmental Impact Declaration (DIA)

Mine type &

mineralisation

style

2 open‑cut pits: Escondida and Escondida Norte

Escondida and Escondida Norte mineral deposits are

adjacent but distinct supergene enriched porphyry

copper deposits

Power source Electricity is sourced from 100% renewable sources

and certified by the Chilean Electricity Authority

(Coordinador Eléctrico Nacional – CEN)

Renewable Power Purchase Agreements (PPAs) with

third parties supply approximately 99% of Escondida

electricity needs with the balance supplied by Tamakaya

SpA (100% owned by BHP)

Escondida‑owned transmission lines connect to Chile’s

national power grid

Processing plants

and other available

facilities

Crushing facilities feed concentrator and leaching

processes

3 concentrator plants produce copper concentrate

from sulphide ore by flotation extraction process

(by‑products: gold and silver) and a tailings

storage facility

2 solvent extraction and electrowinning plants produce

copper cathode

Nominal capacity: 422 ktpd (nominal milling capacity)

and 350 ktpa copper cathode (nominal capacity of

tank house)

2 x 168 km concentrate pipelines, 167 km water pipeline

Port facilities at Coloso, Antofagasta

Desalinated water plant (total water capacity of

3,800 litres per second)

204 BHP Annual Report 2026

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,

environmental approvals can be obtained following a

full Environmental Impact Study (EIA) or after a less

complex instrument called Environmental Impact

Declaration (DIA)

Mine type &

mineralisation

style

Open‑cut

Enriched and oxidised porphyry copper deposit

containing in situ copper oxide mineralisation that

overlies a near‑horizontal sequence of supergene

sulphides, transitional sulphides and finally primary

(hypogene) sulphide mineralisation

Power source Electricity is sourced from 100% renewable sources

and certified by the Chilean Electricity Authority

(Coordinador Eléctrico Nacional – CEN)

Renewable Power Purchase Agreements (PPAs)

with third parties supply most of Spence electricity

needs. The remainder is supplied by Tamakaya SpA

(100% owned by BHP)

Spence‑owned transmission lines connect to Chile’s

national power grid

Processing plants

and other available

facilities

Crushing facilities feed concentrator and leaching

processes

1 copper concentrator plant with 95 ktpd capacity (by‑

products: gold and silver), molybdenum plant, a 1,000

litres per second desalinated water plant under a Build

Own Operate Transfer (BOOT) agreement and a tailings

storage facility

Dynamic leach pads, solvent extraction and

electrowinning plant

Nominal capacity of tank house: 200 ktpa copper cathode

Mine & location

Pampa Norte Cerro

Colorado

Atacama Desert

120 km east of Iquique, Chile

Means of access Public road

Copper cathode trucked to port at Iquique

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

Mining concession from Chilean Government valid

indefinitely (subject to payment of annual fees)

Transitioned to care and maintenance in

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

Entered temporary care and maintenance in

December 2023

Submitted an Environmental Impact Assessment (EIA)

in June 2026, setting out a plan to restart operations and

extend the mine life for an additional 20 years

Key permit

conditions

Mining companies in Chile must obtain environmental

approvals for their projects, issued by the Environmental

Assessment Agency (SEA), in order to operate, plus all

applicable permits from sectoral agencies

Depending on the impacts of the project to be assessed,

environmental approvals can be obtained following a

full Environmental Impact Study (EIA) or after a less

complex instrument called Environmental Impact

Declaration (DIA)

Mining companies in Chile that enter a care and

maintenance period must obtain approval of a

Temporary Closure Plan, sectorial permit, from

Sernageomin (Mining Authority). This permit is initially

granted for a period of 2 years and is renewable for an

additional period of up to 3 years

Mine type &

mineralisation

style

Open‑cut

Enriched and oxidised porphyry copper deposit

containing in situ copper oxide mineralisation that

overlies a near‑horizontal sequence of supergene

sulphides, transitional sulphides and finally primary

(hypogene) sulphide mineralisation

Power source Electricity sourced from 100% renewable sources

and certified by the Chilean Electricity Authority

(Coordinador Eléctrico Nacional – CEN)

Electricity purchased from external vendors

Processing plants

and other available

facilities

Crushing facilities, dynamic leach pads, solvent

extraction plant, electrowinning plant

Nominal capacity of tank house: 130 ktpa copper

cathode

Mine & location

Antamina Andes mountain range, Peru

Mine: San Marcos – Ancash, 270 km northeast of Lima

Port: Huarmey – Ancash, 300 km north of Lima

Means of access Public road

Copper and zinc concentrates transported by Antamina‑

owned pipeline to its Punta Lobitos port

Molybdenum and lead/bismuth concentrates transported

by truck

Type and amount

of ownership

BHP 33.75%

Glencore 33.75%

Teck 22.5%

Mitsubishi 10%

Operator Compañía Minera Antamina S.A.

Title, leases

or options and

acreage involved

Mining rights from Peruvian Government held

indefinitely, subject to payment of annual fees and

supply of information on investment and production

Total acreage: approximately 6,600 hectares

History and stage

of property

Production stage

Commercial production commenced in 2001

Key permit

conditions

During FY2025 Antamina advanced the implementation

of commitments outlined in the Modification of the

Environmental Impact Assessment (MEIA1) which was

approved in 2024.

Mine type &

mineralisation

style

Open‑cut

Zoned porphyry and skarn deposit with central copper

dominated ores and an outer band of copper‑zinc

dominated ores

Power source Contracts with individual power producers

Processing plants

and other available

facilities

Primary crusher, concentrator, copper and zinc flotation

circuits, bismuth/moly cleaning circuit

Nominal milling capacity of 145 ktpd

304 km concentrate pipeline

Port facilities at Huarmey

205

Operating and Financial Review Financial StatementsGovernanceSustainability Report

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 Resolution Copper Mining LLC

Title, leases

or options and

acreage involved

Private land, patented and unpatented mining claims

Total acreage: approximately 46,000 acres

History and stage

of property

Exploration stage

Resolution deposit is within the footprint of and adjacent

to the historical Magma Copper Mine

Resolution non‑operated joint venture (NOJV) formed in

2004 with Rio Tinto as operator

Key permit

conditions

Federal land exchange legislation from 2014 (the LEX

Act) mandates the transfer of Federal land critical for

the project to Resolution Copper, in exchange for other

environmentally and culturally significant lands owned

by Resolution Copper (the Land Exchange, or LEX).

The LEX Act requires the preparation and publication

of a Final Environmental Impact Statement (FEIS) as a

prerequisite to the LEX occurring. The preparation of the

FEIS was led by the US Forest Service and conducted

pursuant to the National Environmental Policy Act

(NEPA) and other US legislation, including requirements

for consultation, coordination and collaboration with

Native American Tribes

The FEIS was published in June 2025, with a final

Record of Decision published in March 2026, following

objections and legal challenges. The LEX was completed

on 16 March 2026, enabling the next phase of technical

work and development planning for the project. The FEIS

and LEX remain the subject of ongoing litigation

The Resolution Copper Project is also required to obtain

State and local permits

Mine type &

mineralisation style

Underground

Porphyry copper and molybdenum deposit

Power source 115 kV power lines to East and West Plant sites with

supply contract with Salt River Project

Processing plants

and other available

facilities

Water treatment infrastructure, 2 existing underground

shafts with associated support infrastructure, and a rail

corridor enabling product transportation

Mine & location

Vicuña San Juan Province of Argentina and Atacama Region

of Chile

350 km northwest of San Juan city, Argentina

Means of access Public and private roads

Type and amount

of ownership

BHP 50%

Lundin Mining 50%

Operator Vicuña Corp.

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

Filo Corp., the prior owner of Filo del Sol, completed a

pre‑feasibility study for the standalone development of the

oxide component of the Filo del Sol deposit in CY2024

The Josemaria deposit is located approximately 10 km

from Filo del Sol, entirely within the San Juan Province,

Argentina. A feasibility study for Josemaria as a standalone

project was completed in November 2020 by Josemaria

Resources (prior to Lundin Mining’s acquisition of the

deposit) and an Environmental Impact Declaration was

approved by the Mining Authority of San Juan, Argentina,

in April 2022. In March 2022, following the discovery of the

high‑grade Aurora Zone, BHP acquired an initial 5 per cent

equity interest in Filo Corp., which owned 100 per cent

of Filo del Sol. BHP completed additional incremental

equity investments in Filo Corp. between 2022 and 2025,

increasing our ownership to approximately 6 per cent.

In FY2025, BHP and Lundin Mining completed the joint

acquisition of the remaining interest of Filo Corp.

Concurrent to the acquisition of Filo Corp., BHP and

Lundin Mining formed Vicuña Corp., a 50/50 independently

operated joint venture, to hold Josemaria and Filo del

Sol. Josemaria was previously 100 per cent owned by

Lundin Mining. Lundin Mining contributed its interest in the

Josemaria deposit to the joint venture for a cash payment

from BHP

Vicuña released a Technical Assessment Report in

February 2026 on the integrated Vicuña project, comprising

Josemaria and Filo del Sol

Vicuña received approval for the inclusion of the Josemaria

and Filo del Sol deposits to Argentina’s Incentive Regime for

Large Investments (‘RIGI’) under the Long‑Term Strategic

Export Projects designation (‘PEELP’) in June 2026

Key permit

conditions

Vicuña is subject to a range of permitting requirements,

predominantly led by the Province of San Juan

Mine type &

mineralisation style

Open‑pit

Porphyry‑epithermal copper‑gold‑silver deposits

Power source Power generated on‑site

Processing plants

and other available

facilities

Two camps established on site to accommodate

2,300 people

Administrative offices in the city of San Juan, San Juan

Province, Argentina

Vicuña corporate head office in Vancouver,

British Columbia, Canada

1 Information on mining operations continued

206 BHP Annual Report 2026

Iron ore mining operations

The following table contains additional details of our mining operations.

This table should be read in conjunction with OFR 4.2 and the production

table and reserves and resources tables in Additional information 4 and 6.

Mine & location

Samarco Southeast Brazil

Samarco mine: Mariana – Minas Gerais, 130 km

southeast of Belo Horizonte

Port: Anchieta – Espírito Santo, 520 km east of

Belo Horizonte

Means of access Public road

Iron ore pellets exported via Samarco port facilities –

Ubu Port

Type and amount

of ownership

BHP Brasil Ltda. 50%

Vale S.A. 50%

Operator Samarco Mineração S.A.

Title, leases

or options and

acreage involved

Mining concessions granted by Brazilian Government

subject to compliance with the mine plan

Samarco recommenced iron ore pellet production in

December 2020, having met licensing requirements

to restart operations at its Germano complex in Minas

Gerais and its Ubu complex in Espírito Santo

Mining rights for approximately 1,605 hectares

History and stage

of property

Production stage

Production began at Germano mine in 1977 and at

Alegria complex in 1992

Second pellet plant built in 1997

Third pellet plant, second concentrator and second

pipeline built in 2008

Fourth pellet plant, third concentrator and third pipeline

built in 2014

Key permit

conditions

Samarco obtained an operating licence (LOC – Corrective

Operating Licence) for the resumption of operations

In June 2025, Samarco obtained the long‑term licence.

The licence encompasses planned expansion of

the mining area as well as the development of new

infrastructure for waste and tailings stacked disposal in

piles, which allows the company to reach 100% production

capacity, subject to investment approvals. A future

licence will be required for the continuity of the business

encompassing further tailings stacked disposal areas

Mine type &

mineralisation

style

Open‑cut

Martitic, specular, goethitic and magnetitic itabirites

Power source Samarco holds interests in 2 hydroelectric power plants,

which supply part of its electricity needs. The remainder

is purchased from the free electricity market

Processing

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,

1 pipeline, 2 pellet plants

Nominal milling capacity 100 ktpd (for 2 concentrators)

400 km concentrate pipeline

Port facilities at Anchieta (Espírito Santo)

Other mining operations

The following table contains additional details of our mining operations.

This table should be read in conjunction with OFR 4.5 and the production

table and reserves and resources tables in Additional information 4 and 6.

Mine & location

Jansen (under

construction)

Province of Saskatchewan

Approximately 140 km east of Saskatoon, Canada

Means of access Public road

Muriate of Potash (MOP) to be transported by rail

to (i) the port at Westshore Terminal in Delta, British

Columbia, Canada for export to offshore markets and

(ii) points in Canada and United States for distribution

to onshore markets

Type and amount

of ownership

BHP 100%

Operator BHP

Title, leases

or options and

acreage involved

Total area of the Jansen lease is approximately 1,150km

All surface lands have been acquired

History and stage

of property

Development stage

Stage 1 under construction

Stage 2 in early stages of construction

Key permit

conditions

Jansen potash project received Ministerial approval

under the Saskatchewan Environmental Assessment Act

Following approval, various federal, provincial and

municipal permits have been or will be obtained for

construction and operation of facilities

Mine type &

mineralisation

style

Underground

The Lower Patience Lake (LPL) sub‑member is

the potash horizon targeted for Jansen. The LPL

sub‑member is a bedded evaporite composed of

sylvite (KCl), halite (NaCl) with variable amounts of

disseminated insoluble and clay seams

Power source Electricity transmitted via BHP’s 230 kV substation and

upstream provincial power utility system

Processing plants

and other available

facilities

Mills, buildings and other facilities and infrastructure are

under construction

207

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

2 Financial information summary

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 2026 2025 2024 2023 2022

Consolidated Income Statement

Revenue 58,760 51,262 55,658 53,817 65,098

Profit from operations 23,869 19,464 17, 5 37 22,932 34,10 6

Profit after taxation from Continuing operations 13,026 11,143 9,601 14,324 22,400

Profit/(loss) after taxation from Discontinued operations − − − − 10,655

Profit after taxation from Continuing and Discontinued operations

attributable to BHP shareholders (Attributable profit) 9,833 9,019 7,8 97 12,921 30,900

Profit after taxation from Continuing operations attributable

to BHP shareholders 9,833 9,019 7,8 97 12,921 20,245

Dividends per ordinary share – paid during the period (US cents) 133.0 124.0 152.0 265.0 350.0

Dividends per ordinary share – determined in respect of the period

(US cents) 172.0 110.0 146.0 170.0 325.0

In specie dividend on merger of Petroleum with Woodside (US cents) − − − − 386.4

Basic earnings per ordinary share (US cents)

193.6 17 7.8 155.8 255.2 610.6

Diluted earnings per ordinary share (US cents)

193.2 177.4 155.5 254.7 609.3

Basic earnings from Continuing operations per ordinary share

(US cents)

193.6 17 7.8 155.8 255.2 400.0

Diluted earnings from Continuing operations per ordinary share

(US cents)

193.2 177.4 155.5 254.7 399.2

Number of ordinary shares (million)

– At period end 5,081 5,076 5,072 5,066 5,062

– Weighted average 5,078 5,073 5,068 5,064 5,061

– Diluted 5,089 5,083 5,077 5,073 5,071

Consolidated Balance Sheet

Total assets 121,387 108,790 102,362 101,296 95,166

Net assets 56,321 52,218 49,120 48,530 48,766

Share capital (including share premium) 5,179 5,015 4,899 4,737 4,638

Total equity attributable to BHP shareholders 50,923 47,66 5 4 4,811 44,496 44,957

Consolidated Cash Flow Statement

Net operating cash flows

21,778 18,692 20,665 18,701 32,174

Capital and exploration expenditure

4,5

10,257 9,794 9,273 7,0 83 7,5 45

Other financial information

Net debt 8,694 12,924 9,120 11,16 6 333

Underlying attributable profit 13,204 10,157 13,660 13,420 23,815

Underlying attributable profit – Continuing operations 13,204 10,157 13,660 13,420 21,319

Underlying EBITDA 32,947 25,978 29,016 27, 9 56 40,634

Underlying EBIT 26,640 20,240 23,631 22,820 34,436

Underlying basic earnings per share (US cents) 260.0 200.2 269.5 265.0 470.6

Underlying basic earnings per share – Continuing operations (US cents) 260.0 200.2 269.5 265.0 421.2

Underlying return on capital employed (per cent) 26.1 20.6 27. 2 28.8 48.7

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), 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 8 for a reconciliation of non‑IFRS financial information to their respective IFRS measure.

Refer to OFR 8.1 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.

208 BHP Annual Report 2026

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 8

For the definition and method of calculation of non‑IFRS financial information refer to OFR 8.1

For more information as to the statutory determination of our reportable segments refer to Financial Statements note 1 ‘Segment reporting’

Year ended 30 June 2026

US$M Revenue

Underlying

EBITDA

Underlying

EBIT

Exceptional

items

Net

operating

assets

Capital

expenditure

Exploration

gross

Exploration

to profit

Copper

Escondida 17,0 54 12,440 11,265 15,126 2,121

Pampa Norte

2,857 1,560 1,075 5,654 866

Antamina

2,522 1,762 1,626 1,788 437

Copper South Australia

6,011 3,203 2,392 18,383 1,523

Other

113 (101) (162) 2,518 293

Total Copper from Group production 28,557 18,864 16,196 − 43,469 5,240

Third-party products 2,996 68 68 − − −

Total Copper 31,553 18,932 16,264 − 43,469 5,240 162 162

Adjustment for equity accounted

investments

(2,522) (745) (603) − − (684) (6) (6)

Total Copper statutory result 29,031 18,187 15,661 − 43,469 4,556 156 156

Iron Ore

Western Australia Iron Ore 23,726 14,667 12,479 22,361 3,048

Samarco

− − − (4,874) −

Other 138 (139) (166) (368) −

Total Iron Ore from Group production 23,864 14,528 12,313 (365) 17,119 3,048

Third-party products 19 1 1 − − −

Total Iron Ore 23,883 14,529 12,314 (365) 17,119 3,048 122 77

Adjustment for equity accounted

investments − − − − − − − −

Total Iron Ore statutory result 23,883 14,529 12,314 (365) 17,119 3,048 122 77

Coal

BHP Mitsubishi Alliance 3,876 702 161 6,421 370

New South Wales Energy Coal

1,851 342 112 (300) 39

Other − (100) (130) (17) 6

Total Coal from Group production 5,727 944 143 − 6,104 415

Third-party products − − − − − −

Total Coal 5,727 944 143 − 6,104 415 28 13

Adjustment for equity accounted

investments

(137) (112) (85) − − − − −

Total Coal statutory result 5,590 832 58 − 6,104 415 28 13

Group and unallocated items

Potash − (326) (328) 8,735 1,814 − −

Western Australia Nickel

245 (255) (283) (297) − 12 12

Other

11 (20) (782) (1,400) 16 90 89

Total Group and unallocated items 256 (601) (1,393) (2,406) 7,038 1,830 102 101

Inter‑segment adjustment − − − − − − − −

Total Group 58,760 32,947 26,640 (2,771) 73,730 9,849 408 347

209

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Additional Information

Year ended 30 June 2025

US$M Revenue

Underlying

EBITDA

Underlying

EBIT

Exceptional

items

Net

operating

assets

Capital

expenditure

Exploration

gross

Exploration

to profit

Copper

Escondida 13,17 7 8,593 7, 558 14,093 2,390

Pampa Norte

2,726 1,270 696 5,051 675

Antamina

1,562 1,002 827 1,661 395

Copper South Australia

4,655 1,936 1,247 17,3 37 1,205

Other

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

(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

− − − (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

1,773 303 193 (121) 106

Other − (173) (203) (58) 17

Total Coal from Group production 5,19 5 721 91 − 6,357 525

Third-party products − − − − − −

Total Coal 5,19 5 721 91 − 6,357 525 15 4

Adjustment for equity accounted

investments

(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

758 (589) (589) (210) 176 28 28

Other

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

1. Group profit before taxation comprised Underlying EBITDA of US$32,947 million (FY2025: US$25,978 million), exceptional items, depreciation, amortisation and impairments

of US$9,078 million (FY2025: US$6,514 million) and net finance costs of US$1,455 million (FY2025: US$1,111 million).

2. Total revenue from energy coal sales, including BMA and NSWEC, was US$1,786 million (FY2025: US$1,652 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 8 ‘Non‑IFRS financial information’ in the Annual Report.

4. Excludes exceptional items relating to Net finance costs US$600 million and Income tax benefit US$ nil (FY2025: Net finance costs US$458 million and Income tax benefit US$96 million).

5. Includes Spence and Cerro Colorado. Cerro Colorado entered temporary care and maintenance in December 2023.

6. Antamina, SolGold (divested in March 2026), 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$745 million (FY2025: US$466 million) related to equity

accounted investments.

7. Includes Olympic Dam, Prominent Hill and Carrapateena.

8. 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.

9. Includes Newcastle Coal Infrastructure Group (NCIG), an equity accounted investment, with financial information presented above reflecting BHP Group’s share (except for net operating

assets). Total Coal statutory results exclude NCIG’s contribution, reflecting the remaining contractual term and expected future economic benefits.

10. 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.

11. 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.

3 Financial information by commodity continued

210 BHP Annual Report 2026

The table below details production across our operations for the three years ended 30 June 2026, 2025 and 2024. Unless otherwise stated, production

represents BHP’s share of production from which profit is derived from our equity accounted investments. Production information for equity accounted

investments is included to provide insight into the operational performance of these entities.

BHP share of production

Year ended 30 June

BHP interest % 2026 2025 2024

Copper

Payable metal in concentrate (kt)

Escondida, Chile

57.5 1,046.8 1,127.2 926.7

Pampa Norte, Chile

100 121.3 150.6 150.3

Copper South Australia, Australia 100 99.4 101.9 106.3

Antamina, Peru

33.75 151.5 118.9 143.9

Carajás, Brazil

100 6.8 9.4 8.2

Total 1,425.8 1,508.0 1,335.4

Cathode (kt)

Escondida, Chile

57.5 214.4 177.7 198.6

Pampa Norte, Chile

100 91.3 117.0 115.3

Copper South Australia, Australia 100 221.3 214.0 215.7

Total 527.0 508.7 529.6

Total copper (kt) 1,952.8 2,016.7 1,865.0

Lead

Payable metal in concentrate (t)

Antamina, Peru

33.75 1,279 2,232 332

Total 1,279 2,232 332

Zinc

Payable metal in concentrate (t)

Antamina, Peru

33.75 96,127 108,607 103,392

Total 96,127 108,607 103,392

Gold

Payable metal in concentrate (troy oz)

Escondida, Chile

57.5 159,454 169,075 181,061

Pampa Norte, Chile

100 12,708 12,980 13,280

Copper South Australia, Australia 100 162,334 172,565 163,061

Carajás, Brazil

100 5,541 7,30 6 5,558

Total 340,037 361,926 362,960

Refined gold (troy oz)

Copper South Australia, Australia 100 231,025 188,658 207,123

Total 231,025 188,658 207,123

Total gold (troy oz) 571,062 550,584 570,083

Silver

Payable metal in concentrate (troy koz)

Escondida, Chile

57.5 9,091 6,858 5,446

Pampa Norte, Chile

100 1,290 1,823 1,654

Copper South Australia, Australia 100 802 913 1,13 4

Antamina, Peru

33.75 5,588 4,162 3,359

Total 16,771 13,756 11,593

Refined silver (troy koz)

Copper South Australia, Australia 100 1,100 1,017 995

Total 1,100 1,017 995

Total silver (troy koz) 17,871 14,773 12,588

Uranium

Payable metal in concentrate (t)

Copper South Australia, Australia 100 3,647 3,154 3,603

Total 3,647 3,154 3,603

Molybdenum

Payable metal in concentrate (t)

Pampa Norte, Chile

100 883 694 794

Antamina, Peru

33.75 368 2,279 1,822

Total 1,251 2,973 2,616

4 Production

211

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

BHP share of production

Year ended 30 June

BHP interest % 2026 2025 2024

Iron Ore

Production (kt)

Newman Joint Venture, Australia 85 52,681 54,218 58,102

Area C Joint Venture, Australia 85 129,026 119,110 105,868

Yandi Joint Venture, Australia 85 12,590 15,890 17,855

Jimblebar, Australia

85 62,580 67, 381 73,111

Total Western Australia Iron Ore 256,877 256,599 254,936

Samarco, Brazil

50 7,840 6,254 4,748

Total iron ore 264,717 262,853 259,684

Steelmaking coal

Production (kt)

Goonyella Riverside, Australia 50 6,253 5,837 6,434

Peak Downs, Australia 50 4,838 4,574 4,217

Saraji, Australia 50 3,952 4,073 3,287

Caval Ridge, Australia 50 3,583 3,526 3,252

Blackwater, Australia

50 0 0 3,572

Daunia, Australia

50 0 0 1,513

Total BHP Mitsubishi Alliance (BMA) 18,626 18,010 22,275

Total steelmaking coal 18,626 18,010 22,275

Energy coal

Production (kt)

New South Wales Energy Coal, Australia 100 16,361 15,036 15,368

Total energy coal 16,361 15,036 15,368

Nickel

Saleable production (kt)

Western Australia Nickel, Australia

11,12

100 0 30.2 81.6

Total 0 30.2 81.6

Cobalt

Saleable production (t)

Western Australia Nickel, Australia

11,12

100 0 450 734

Total 0 450 734

Throughout this table figures in italics indicate that this figure has been adjusted since it was previously reported.

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 years ended 30 June 2026 and 30 June 2025 include production from Spence only. The year ended 30 June 2024 includes 11kt from Cerro Colorado, which entered temporary care and

maintenance in December 2023.

5. 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 5.3.

6. The divestment of Carajás was completed on 2 April 2026.

7. Iron ore production is reported on the basis of saleable product, which is wet metric tonnes (wmt) for WAIO and dry metric tonnes (dmt) for Samarco.

8. Presented on 100 per cent basis. BHP interest in saleable production is 85 per cent.

9. Steelmaking coal production is reported on the basis of saleable product. Production figures may include some thermal coal.

10. BHP completed the sale of the Blackwater and Daunia mines on 2 April 2024. Production reported until their divestment on 2 April 2024.

11. Nickel contained in matte and refined nickel metal, including briquette, powder, nickel sulphate and by‑product streams.

12. Western Australia Nickel ramped down and entered temporary suspension in December 2024.

4 Production continued

212 BHP Annual Report 2026

5 Major projects

Outlined below includes a summary of our major projects. For more information refer to OFR 4 ‘Our assets’.

Jansen Stage 1 (JS1) is achieving its critical path milestones set in the updated January 2026 cost and schedule estimate, and first production remains on

track for mid‑CY2027.

In June 2026, BHP completed a detailed review of cost and schedule estimates for Stage 2 of the Jansen potash project (JS2) and confirmed that the total

investment estimate for JS2 increased from US$4.9 billion to US$6.9 billion (including contingencies) with first production estimated in late‑FY2031.

Given the higher forecast capital intensity for the Jansen project (including Stages 1 and 2 and potential future expansions), we recognised an impairment

charge of US$2.3 billion (before and after tax) in FY2026 in relation to our investment to date in the Jansen project.

Jansen is a world class asset and is expected to operate at the low end of the cost curve when fully ramped up.

Commodity

Project and

ownership Project scope/capacity

Estimated project

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

Approximately

8,400 (including

contingencies)

Mid‑CY2027 Approved in August

2021; project is 84%

complete

Potash Jansen Stage 2

(Canada) 100%

Development of additional mining districts,

completion of the second shaft hoist

infrastructure, expansion of processing

facilities and addition of rail cars to facilitate

production of an incremental 4.36 Mtpa

Approximately

6,900 (including

contingencies)

Late‑FY2031 Approved in October

2023; project is 16%

complete

1. Includes: project capital expenditure, project operating expenditure, cost to construct right‑of‑use assets (i.e. Westshore port terminal and third‑party rail line) and related contingencies.

213

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Additional Information

6 Mineral Resources and Ore Reserves

Mineral Resources are estimates of material with reasonable prospects

for eventual economic extraction from BHP’s properties. Ore Reserves

represent the economically mineable part of Measured and Indicated

Mineral Resources. The estimation of reserves requires assumptions

across technical and economic factors, including quantities and qualities,

mining methods, processing recoveries, costs, market conditions,

commodity prices and exchange rates. The Mineral Resources and

Ore Reserves statement in this Annual Report has been prepared 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, 2012 Edition (JORC Code).

Sale price assumptions used in the estimates are based on supply and

demand outlooks and current and long‑term historical average price

trends. The reported Ore Reserves are located within existing, permitted

mining tenements. Mineral leases are of sufficient duration or have a

reasonable expectation of renewal, to enable extraction in line with current

life of mine schedules. Ore Reserves may include areas where additional

approvals remain pending, where such approvals are expected to be

obtained within the relevant schedule timeframe.

Declaration tables

– All Mineral Resources and Ore Reserves are reported in 100 per cent

terms (unless otherwise stated) and represent estimates as at

30 June 2026.

– Tonnes are reported as dry metric tonnes (unless otherwise stated).

Tonnes and grade/quality data have been rounded, so small differences

may be present in the totals.

– The Measured and Indicated Mineral Resources are inclusive of Mineral

Resources modified to produce the Ore Reserves.

Other reporting jurisdictions

The information contained in this Annual Report 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 2026.

Mineral resources and mineral reserves reporting requirements for SEC

filings in the United States are set forth in subpart 1300 of Regulation

S‑K (S‑K 1300). S‑K 1300 requires mineral resources to be reported

exclusive of mineral reserves and both only for BHP’s attributable

interest. Differences in disclosure requirements pertaining to economic

assumptions and assessment of reasonable prospects of economic

extraction, result in further differences between the resources and

reserves estimates presented in this document and those to be reported

on Form 20‑F.

Resources and reserves reported under the ASX Listing Rules and

S‑K 1300 differ in economic inputs, including commodity prices and cost

assumptions. Estimates reported in accordance with the ASX Listing Rules

and JORC Code are generally based on cost forecasts, internal long‑term

commodity price assumptions and current operating costs or costs

derived from studies. 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 which must provide a reasonable

basis for establishing the prospects of economic extraction for mineral

resources. Estimates reported in accordance with S‑K 1300 are generally

based on historical average costs and prices for producing assets or, for

development projects, costs determined from first principles.

Accordingly, our resources and reserves reported on Form 20‑F are not

directly comparable with those reported here and should be read in context

of the applicable reporting framework and the different 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 that are designed to produce reasonable and reliable

estimates consistent with industry practice and regulatory requirements.

The governance for our estimations operates at both asset and BHP Group

level through our Resource Centre of Excellence, an internal assurance

team independent of our Competent Persons and employees responsible for

the estimations. The assets provide first line assurance through peer review

and validation. The Resource Centre of Excellence provides assurance over

processes implemented by the assets as they relate to Mineral Resources

and Ore Reserves estimations and the compilation of estimates for reporting

in accordance with the ASX Listing Rules and JORC Code (2012).

Our internal controls include quality assurance and quality control

processes, standardised procedures and workflow processes, data

governance and security, management approval, reconciliations, and

internal and external reviews and audits.

Our internal requirements and standards support our governance over

the estimation and reporting of Mineral Resources and Ore Reserves and

provide technical guidance to assets. These internal requirements and

standards are periodically reviewed and updated to align with industry

practice and reporting regulations.

Exploration data controls relating 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 defining

minimum requirements to support exploration and resource development

programs, spatial and sampling quality including laboratory data quality

checks, geological database reviews and back‑up routines and technical

peer review across data acquisition, integration and estimation.

Controls applied to Mineral Resources and Ore Reserves estimations

include, but are not limited to:

– review and statistical analysis of source data prior to estimation

– peer review of the estimation inputs and estimation parameters

– visual and statistical validation against source data and reconciliation

to previous models, operational models and production data

where available

– peer review of classification including quantitative measures and

qualitative considerations

– peer review of assumptions applied to convert resources to reserves

– independent audits or reviews of new or materially changed estimates

For non‑operated assets in which we have an economic interest, the

operator may have procedures and practices that differ from those we

apply. BHP relies on information provided by the operator and may apply

review and assurance procedures to the extent available under the relevant

governance, ownership and operating arrangements. From time to time,

we may undertake independent reviews of estimates prepared by the

operator of non‑operated assets.

Operating assets maintain internal risk registers addressing uncertainties

in Mineral Resources and Ore Reserves estimates to inform 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

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:

– Mineral Resources and Ore Reserves reporting are required to follow

BHP’s standard procedures for public reporting in accordance with

regulatory requirements.

– Annual risk reviews are conducted with Competent Persons and

BHP employees on Mineral Resources and Ore Reserves to be

reported. These reviews include year‑on‑year change impact

assessments, reconciliation performance metrics for operating mines

and control assessments for estimation inputs. Competent Persons

prepare the information and supporting documentation relating to

estimates which is evaluated for compliance with BHP’s internal

controls. Based on these reviews, recommendations for endorsement

are provided to senior management for the use and reporting of the

Mineral Resources and Ore Reserves.

– Periodic internal technical ‘deep dive’ assessments of Mineral

Resources and Ore Reserves are conducted on a frequency informed

by asset materiality and outcomes of the annual risk reviews.

– Management and close‑out reviews are conducted for actions assigned

to Competent Persons and BHP employees from the annual risk reviews

and technical ‘deep dive’ assessments.

214 BHP Annual Report 2026

– Assurance is undertaken over reporting documentation provided by

Competent Persons for public release and over the management

and verification of inputs into the BHP Resources and Reserves

reporting database.

The Resource Centre of Excellence provides an annual update to the

Risk and Audit Committee on assurance activities and changes relating

to Mineral Resources and Ore Reserves, supporting the committee’s

oversight of the effectiveness of BHP’s systems of internal control and

risk management.

Inherent risks in the estimation of Mineral Resources

and Ore Reserves

Estimated annual cash flows from future operations, production schedules,

capital expenditure and operating costs, site closure costs, royalty and tax

costs, valuation assumptions and interpretations of geological data may

not be indicative of future results. Assumptions and interpretations used

to estimate Mineral Resources and Ore Reserves may change over time,

including where additional geological data generated during operations

is not consistent with previously available data. As a result, estimates

may change or require revision. No assurance can be given that Mineral

Resources and Ore Reserves in this Annual Report will be recovered at

the grade, quality or quantities presented.

There are inherent uncertainties in estimating Mineral Resources and Ore

Reserves. Uncertainties that may materially impact estimates include, but

are not limited to:

– changes to long‑term commodity prices, market conditions, foreign

exchange rates and other economic assumptions

– changes in geological interpretations, geological modelling, estimation

parameters and techniques

– changes to metallurgical or process recovery assumptions that

adversely affect production volumes, grades or qualities

– changes to mining method assumptions used to derive potentially

mineable shapes for underground or open‑pit mining

– changes to life of mine or production rate assumptions

– changes to dilution and mining recovery assumptions

– changes to cut‑off grades

– changes to geotechnical, hydrogeological, hydrothermal or

geothermal data

– changes to infrastructure supporting operations or site access

– changes to mineral, surface, water or other natural resources rights

– changes to royalty, taxes, environmental, permitting and social

licence assumptions

– changes in capital or operating costs

Estimates of Mineral Resources are inherently uncertain and subject to

further exploration and evaluation. Mineral Resources do not meet the

modifying factors required to be classified as Ore Reserves, including

engineering studies, legal or economic feasibility. Accordingly, no

assurance can be given that Mineral Resources not included in Ore

Reserves will be converted to Proved or 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). At the time of reporting, each Competent Person has

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 declare

they have no interests that could reasonably be perceived by investors

as a material conflict of interest. All Competent Persons are a Member or

Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM), 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

Resolution: DM Hlorgbe (RM SME), H Martin (MAusIMM)

and AC Schwarz (RM SME) all employed by Resolution

Copper Mining LLC

Pantera: M Cortes (FAusIMM)

Succoth: M Cortes (FAusIMM)

Pedra Branca: M Cortes (FAusIMM)

Carrapateena and Fremantle Doctor: S Light (MAusIMM)

Prominent Hill: B Whittaker (MAusIMM)

Olympic Dam and Oak Dam: M O’Hare (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 Inc. and S Horan (P.Geo., PGO) employed by

Resource Modeling Solutions Ltd

Antamina: A Maque (FAusIMM) employed by

Compañía Minera Antamina S.A.

Ore

Reserves

Escondida: C Bustos (MAusIMM) employed by

Minera Escondida Limitada

Spence: M José Yrarrazaval (MAusIMM)

Pedra Branca: M Cortes (FAusIMM)

Carrapateena: S Mariager (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), E Maidens (MAIG),

W Patton (MAusIMM)

Samarco: L Bonfioli (MAusIMM) employed

by Samarco Mineração S.A.

Ore

Reserves

WAIO: P Chhajer (MAusIMM‑CP), R Fuentes Acosta

(MAusIMM), T Cockerill (MAusIMM)

Samarco: E Baeta (MAusIMM) employed by

Samarco Mineração S.A.

Coal

Resources

Goonyella Complex: D James (MAusIMM)

Peak Downs: J L Young (MAusIMM)

Caval Ridge: C Williams (MAusIMM‑CP)

Saraji: R Saha (MAusIMM)

Saraji South: J Robin (MAusIMM)

Mt Arthur Coal: J James (MAusIMM)

Coal

Reserves

Goonyella Complex: G Bustos (MAusIMM‑CP)

and D Walker (MAusIMM)

Peak Downs: V Grajdan (MAusIMM)

Caval Ridge: G Munro (MAusIMM)

Saraji and Saraji South: N Mohtaj (MAusIMM)

Mt Arthur Coal: D Perkins (MAusIMM)

Potash

Mineral

Resources

Jansen: M Sheetka (P.Geo., APEGS)

Ore

Reserves

Jansen: J Sondergaard (MAusIMM)

Nickel

Mineral

Resources

Leinster, Mt Keith, Yakabindie, Honeymoon Well,

Jericho: M Baudin (MAusIMM)

Nebo and Babel: P Ormond (MAusIMM)

Annual Report

compilation

J Binoir (FAusIMM‑CP), Resource Centre of Excellence –

BHP

215

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Additional Information

6 Mineral Resources and Ore Reserves continued

Copper

Mineral Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

Material type

Measured Resources Indicated Resources

Inferred Resources Total Resources BHP

interest

Total Resources

Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg

Copper operations

Escondida

Oxide 70 0.55 – – – 13 0.53 – – –

2.0 0.51 – – – 84 0.54 – – – 57. 5 98 0.57 – – –

Mixed 40 0.47 – – – 36 0.48 – – – 20 0.45 – – – 96 0.46 – – – 104 0.47 – – –

Sulphide 4,710 0.56 – – – 3,990 0.53 – – – 9,060 0.53 – – – 17, 80 0 0.55 – – – 17,9 00 0.55 – – –

Cerro Colorado

Oxide 73 0.60 – – – 111 0.62 – – – 7.6 0.54 – – – 192 0.61 – – –

100

187 0.62 – – –

Supergene Sulphide 56 0.58 – – – 99 0.58 – – – 21 0.62 – – – 176 0.59 – – – 167 0.59 – – –

Transitional Sulphide 92 0.45 – – – 118 0.42 – – – 20 0.40 – – – 230 0.43 – – – 205 0.43 – – –

Hypogene Sulphide 256 0.40 – – – 602 0.36 – – – 749 0.35 – – – 1,610 0.36 – – – 1,700 0.36 – – –

Spence

Oxide 4.5 0.54 – – – 1.6 0.58 – – – – – – – – 6.1 0.55 – – – 100 12 0.56 – – –

Supergene Sulphide 66 0.54 – – – 29 0.46 – – – 0.3 0.44 – – – 95 0.52 – – – 96 0.50 – – –

Transitional Sulphide 8.6 0.49 80 – – 0.3 0.41 30 – – – – – – – 8.9 0.49 80 – – 13 0.57 80 – –

Hypogene Sulphide 696 0.45 160 – – 674 0.43 130 – – 679 0.41 90 – – 2,050 0.43 130 – – 2,19 0 0.42 120 – –

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

101 0.59 – – – 64 0.52 – – –

15 0.54 – – – 180 0.56 – – – 57. 5 183 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 – – –

Resolution

Sulphide – – – – – 724 1.89 420 – 4 1,130 1.28 310 – 3 1,860 1.52 350 – 3 45 – – – – –

Pantera

OC Sulphide – – – – – – – – – – – – – – – – – – – – – 36 1.14 – 0.14 –

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

UG Sulphide – – – – – – – – – – – – – – – – – 26 1.38 0.41 –

Carrapateena UG Sulphide 130 0.98 0.41 4 470 0.61 0.26 3 310 0.28 0.14 2 900 0.55 0.24 3 100 910 0.55 0.24 3

Prominent Hill

UG Sulphide 49 1.19 0.62 3 49 0.96 0.93 3 47 0.88 1.18 2 145 1.01 0.90 3 100 144 1.00 0.84 3

SP Sulphide – – – – – – – – – – – – – – – – 1.7 0.13 0.58 0.4

Copper gold projects

Oak Dam UG Sulphide – – – – – – – –

1,340 0.66 0.33 – 1,340 0.66 0.33 – 100 1,340 0.66 0.33 –

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

Sulphide – – – – 1,730 0.46 0.34 6 8,720 0.34 0.18 3 10,500 0.36 0.21 3 50 7,270 0.40 0.23 4

Copper Oxide – – – – 467 0.32 0.27 3 431 0.23 0.20 2 898 0.28 0.24 2 765 0.30 0.25 2

Gold Oxide – – – – 301 – 0.25 3 711 – 0.18 3 1,010 – 0.20 3 961 – 0.23 3

Silver Oxide – – – – 71 0.36 0.36 120 95 0.08 0.14 35 166 0.20 0.23 71 149 0.22 0.27 60

Josemaria Sulphide 648 0.33 0.25 1 961 0.25 0.15 1 683 0.22 0.11 1 2,290 0.26 0.17 1 50 2,382 0.26 0.16 1

Copper uranium gold operation

Mt %Cu kg/tU

g/tAu g/tAg Mt %Cu kg/tU

g/tAu g/tAg

Olympic Dam

OC Sulphide 3,990 0.63 0.20 0.33 1 3,400 0.58 0.20 0.24 1 2,850 0.58 0.20 0.22 1 10,240 0.60 0.20 0.27 1 100 10,16 0 0.60 0.20 0.26 1

UG Sulphide 840 1.59 0.47 0.62 3 540 1.56 0.45 0.57 3 210 1.44 0.42 0.63 3 1,590 1.56 0.46 0.60 3 1,550 1.56 0.46 0.60 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

Sulphide Cu only 285 0.75 0.11 8 230 345 0.85 0.14 9 260 627 0.84 0.14 8 230 1,260 0.82 0.13 8 240

33.75

1,200 0.85 0.13 8 240

Sulphide Cu‑Zn 60 0.90 1.70 20 90 154 1.04 1.80 19 80 148 1.04 1.61 16 90 362 1.02 1.71 18 80 424 1.01 1.70 18 80

UG Sulphide Cu only – – – – – – – – – – 361 1.12 0.18 11 180 361 1.12 0.18 11 180 282 1.23 0.20 11 170

UG Sulphide Cu‑Zn – – – – – – – – – – 119 1.12 1.43 16 60 119 1.12 1.43 16 60 150 1.11 1.50 15 60

216 BHP Annual Report 2026

Copper

Mineral Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

Material type

Measured Resources Indicated Resources

Inferred Resources Total Resources BHP

interest

Total Resources

Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg Mt %Cu ppmMo g/tAu g/tAg

Copper operations

Escondida

Oxide 70 0.55 – – – 13 0.53 – – –

2.0 0.51 – – – 84 0.54 – – – 57. 5 98 0.57 – – –

Mixed 40 0.47 – – – 36 0.48 – – – 20 0.45 – – – 96 0.46 – – – 104 0.47 – – –

Sulphide 4,710 0.56 – – – 3,990 0.53 – – – 9,060 0.53 – – – 17, 80 0 0.55 – – – 17,9 00 0.55 – – –

Cerro Colorado

Oxide 73 0.60 – – – 111 0.62 – – – 7.6 0.54 – – – 192 0.61 – – –

100

187 0.62 – – –

Supergene Sulphide 56 0.58 – – – 99 0.58 – – – 21 0.62 – – – 176 0.59 – – – 167 0.59 – – –

Transitional Sulphide 92 0.45 – – – 118 0.42 – – – 20 0.40 – – – 230 0.43 – – – 205 0.43 – – –

Hypogene Sulphide 256 0.40 – – – 602 0.36 – – – 749 0.35 – – – 1,610 0.36 – – – 1,700 0.36 – – –

Spence

Oxide 4.5 0.54 – – – 1.6 0.58 – – – – – – – – 6.1 0.55 – – – 100 12 0.56 – – –

Supergene Sulphide 66 0.54 – – – 29 0.46 – – – 0.3 0.44 – – – 95 0.52 – – – 96 0.50 – – –

Transitional Sulphide 8.6 0.49 80 – – 0.3 0.41 30 – – – – – – – 8.9 0.49 80 – – 13 0.57 80 – –

Hypogene Sulphide 696 0.45 160 – – 674 0.43 130 – – 679 0.41 90 – – 2,050 0.43 130 – – 2,19 0 0.42 120 – –

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

101 0.59 – – – 64 0.52 – – –

15 0.54 – – – 180 0.56 – – – 57. 5 183 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 – – –

Resolution

Sulphide – – – – – 724 1.89 420 – 4 1,130 1.28 310 – 3 1,860 1.52 350 – 3 45 – – – – –

Pantera

OC Sulphide – – – – – – – – – – – – – – – – – – – – – 36 1.14 – 0.14 –

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

UG Sulphide – – – – – – – – – – – – – – – – – 26 1.38 0.41 –

Carrapateena UG Sulphide 130 0.98 0.41 4 470 0.61 0.26 3 310 0.28 0.14 2 900 0.55 0.24 3 100 910 0.55 0.24 3

Prominent Hill

UG Sulphide 49 1.19 0.62 3 49 0.96 0.93 3 47 0.88 1.18 2 145 1.01 0.90 3 100 144 1.00 0.84 3

SP Sulphide – – – – – – – – – – – – – – – – 1.7 0.13 0.58 0.4

Copper gold projects

Oak Dam UG Sulphide – – – – – – – –

1,340 0.66 0.33 – 1,340 0.66 0.33 – 100 1,340 0.66 0.33 –

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

Sulphide – – – – 1,730 0.46 0.34 6 8,720 0.34 0.18 3 10,500 0.36 0.21 3 50 7,270 0.40 0.23 4

Copper Oxide – – – – 467 0.32 0.27 3 431 0.23 0.20 2 898 0.28 0.24 2 765 0.30 0.25 2

Gold Oxide – – – – 301 – 0.25 3 711 – 0.18 3 1,010 – 0.20 3 961 – 0.23 3

Silver Oxide – – – – 71 0.36 0.36 120 95 0.08 0.14 35 166 0.20 0.23 71 149 0.22 0.27 60

Josemaria Sulphide 648 0.33 0.25 1 961 0.25 0.15 1 683 0.22 0.11 1 2,290 0.26 0.17 1 50 2,382 0.26 0.16 1

Copper uranium gold operation

Mt %Cu kg/tU

g/tAu g/tAg Mt %Cu kg/tU

g/tAu g/tAg

Olympic Dam

OC Sulphide 3,990 0.63 0.20 0.33 1 3,400 0.58 0.20 0.24 1 2,850 0.58 0.20 0.22 1 10,240 0.60 0.20 0.27 1 100 10,16 0 0.60 0.20 0.26 1

UG Sulphide 840 1.59 0.47 0.62 3 540 1.56 0.45 0.57 3 210 1.44 0.42 0.63 3 1,590 1.56 0.46 0.60 3 1,550 1.56 0.46 0.60 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

Sulphide Cu only 285 0.75 0.11 8 230 345 0.85 0.14 9 260 627 0.84 0.14 8 230 1,260 0.82 0.13 8 240

33.75

1,200 0.85 0.13 8 240

Sulphide Cu‑Zn 60 0.90 1.70 20 90 154 1.04 1.80 19 80 148 1.04 1.61 16 90 362 1.02 1.71 18 80 424 1.01 1.70 18 80

UG Sulphide Cu only – – – – – – – – – – 361 1.12 0.18 11 180 361 1.12 0.18 11 180 282 1.23 0.20 11 170

UG Sulphide Cu‑Zn – – – – – – – – – – 119 1.12 1.43 16 60 119 1.12 1.43 16 60 150 1.11 1.50 15 60

217

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

6 Mineral Resources and Ore Reserves continued

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 (VCOG): 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 VCOG 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

to maximise net present value.

Sulphide Leach − ≥ 0.25%Cu and lower than VCOG 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 and Supergene

Sulphide

≥ 0.25%Cu −

Transitional Sulphide and

Hypogene Sulphide

≥ 0.20%Cu −

Spence All material types ≥ 0.20%Cu Variable depending on period analysed, always > 0.20%CuT

Pampa Escondida Sulphide ≥ 0.30%Cu −

Pinta Verde Oxide ≥ 0.20%SCu −

Sulphide ≥ 0.30%Cu −

Chimborazo Sulphide ≥ 0.30%Cu −

Resolution Sulphide Material within a potential block caving volume defined by

≥ 1%Cu including some diluting material (< 1%Cu) within the

block cave volume.

−

Succoth OC Sulphide NSR ≥ A$19/t representing mill limited break‑even cut‑off

inclusive of processing, ore re‑handling and material

handling costs.

−

Carrapateena UG Sulphide NSR ≥ A$25/t defining a continuous volume of material

potentially mineable by block cave.

NSR ≥ A$43/t for block cave, NSR ≥ A$60‑110/t (varies by block) for

sublevel cave.

Prominent Hill UG Sulphide NSR ≥ A$95/t being life of mine break‑even cut‑off excluding

offsite overheads.

NSR ≥ A$99/t

Oak Dam UG Sulphide Material within a potential block caving volume defined by

≥ 0.2%Cu.

−

Fremantle Doctor UG Sulphide NSR ≥ A$25/t defining a continuous volume of material

potentially mineable by block cave.

−

218 BHP Annual Report 2026

Deposit Material type Mineral Resources Ore Reserves

Filo del Sol Sulphide NSR ≥ US$9.84/t incorporating metallurgical recoveries

of 78% Cu, 62% Au, and 62% Ag.

−

Copper Oxide NSR ≥ US$16.58/t incorporating metallurgical recoveries

of 67% Cu, 63% Au, and 78% Ag.

−

Gold Oxide NSR ≥ US$10.68/t incorporating metallurgical recoveries

of 73% Au and 63% Ag.

−

Silver Oxide NSR ≥ US$16.58/t incorporating metallurgical recoveries

of 67% Cu, 63% Au, and 78% Ag.

−

Josemaria Sulphide NSR ≥ US$9.59/t incorporating metallurgical recoveries

of 82% Cu, 60% Au and 56% Ag.

−

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 between 1.0% and 1.7%Cu

Low‑grade – ≥ 0.6%Cu

Antamina

Sulphide Cu only Net Value per Concentrator Hour ≥ US$0/h incorporating all

material revenue and cost factors and includes metallurgical

recovery (c.f. footnote 13), approximately equivalent to

0.16%Cu, 2.1g/tAg, 90ppmMo at 7,055t/h mill throughput.

Net Value per Concentrator Hour ≥ US$6,000/h incorporating

all material revenue and cost factors and includes metallurgical

recovery (c.f. footnote 13), approximately equivalent to 0.16%Cu,

2.1g/tAg, 140ppmMo at 7,032t/h mill throughput.

Sulphide Cu‑Zn Net Value per Concentrator Hour ≥ US$0/h incorporating all

material revenue and cost factors and includes metallurgical

recovery (c.f. footnote 13), approximately equivalent to

0.08%Cu, 0.60%Zn, 8.7g/tAg at 6,286t/h mill throughput.

Net Value per Concentrator Hour ≥ US$6,000/h incorporating

all material revenue and cost factors and includes metallurgical

recovery (c.f. footnote 13), approximately equivalent to 0.08%Cu,

0.77%Zn, 2.5g/tAg at 6,284t/h mill throughput.

UG Sulphide Cu only NSR ≥ US$58.7/t and only considering sub‑level stoping

mining, approximately equivalent to 0.74%Cu, 7.3g/tAg and

190ppmMo. Predicted metallurgical recoveries: 92% Cu,

0% Zn, 79% Ag and 45% Mo.

−

UG Sulphide Cu‑Zn NSR ≥ US$58.7/t and only considering sub‑level stoping

mining, approximately equivalent to 0.59%Cu, 1.00%Zn and

7.3g/tAg. Predicted metallurgical recoveries: 83% Cu, 83% Zn,

63% Ag and 0% Mo.

−

2. Escondida – Decrease in Oxide and Mixed material types due to depletion.

3. Cerro Colorado – Remained on care and maintenance, overall decrease due to modifying factors and cost inputs.

4. Spence – Overall decrease due to updated modifying factors and depletion.

5. Resolution – First‑time reporting.

6. Pantera and Pedra Branca – Divested in FY26.

7. Prominent Hill – SP Sulphide was fully depleted.

8. Filo del Sol – Increase for all material types due to updated resource estimate informed by additional drilling. Reported as part of BHP Financial Results for the half year ended

31 December 2025.

9. Olympic Dam – Increase in Measured and Indicated and decrease in Inferred UG Sulphide due to updated resource estimate informed by additional drilling and depletion.

10. Antamina – Overall changes for all material types due to updated resource estimate informed by additional drilling, modifying factors, price and cost inputs and depletion.

219

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

6 Mineral Resources and Ore Reserves continued

Copper

Ore Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,11,12

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

13 ,15

Full SaL 146 0.83 – 34 0.61 – 180 0.79 – 5 7. 5 200 0.78 –

Sulphide 3,090 0.60 – 1,400 0.54 – 4,490 0.58 – 4,630 0.59 –

Sulphide Leach 1,170 0.38 – 237 0.37 – 1,410 0.38 – 1,450 0.38 –

Spence

13 ,14,16

Oxide 3.1 0.53 – 0.2 0.78 – 3.3 0.55 – 100 9.8 0.54 –

Supergene Sulphide 28 0.60 – 31 0.52 – 59 0.56 – 66 0.54 –

Transitional Sulphide 4.2 0.42 131 0.4 0.46 105 4.6 0.42 129 7. 5 0.53 120

Hypogene Sulphide 302 0.57 188 503 0.50 149 805 0.53 163 745 0.53 160

Copper gold operations

Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg

Pedra Branca

UG Sulphide – – – – – – – – – – – – – 3.8 1.83 0.49 –

Carrapateena

UG Sulphide – – – – 157 1.01 0.41 4 157 1.01 0.41 4 100 162 1.02 0.42 4

Prominent Hill

13 ,18

UG Sulphide 30 1.00 0.58 2 31 0.88 0.72 2 61 0.94 0.65 2 100 46 0.97 0.68 2

SP Sulphide – – – – – – – – – – – – 1.7 0.13 0.58 0.4

Copper uranium gold operation

Mt %Cu kg/tU

g/tAu g/tAg Mt %Cu kg/tU

g/tAu g/tAg

Olympic Dam

UG Sulphide 355 1.89 0.59 0.72 4 254 1.68 0.53 0.62 3 609 1.80 0.56 0.68 4 100 591 1.82 0.57 0.68 4

Low‑grade – – – – – 44 0.83 0.28 0.34 2 44 0.83 0.28 0.34 2 43 0.84 0.28 0.34 2

Copper zinc operation

Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo

Antamina

13 ,19

Sulphide Cu only 200 0.78 0.11 8 260 170 0.92 0.15 9 300 370 0.84 0.13 9 280

33.75

375 0.86 0.13 9 290

Sulphide Cu‑Zn 46 1.01 1.83 19 100 89 1.08 1.90 20 80 135 1.06 1.87 19 90 151 1.06 1.90 19 90

11. 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

All material types: 120m x 120m

Supergene, Transitional, and Hypogene Sulphide: 70m x 70m

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

12. Ore delivered to process plant.

13. Metallurgical recoveries for the operations were:

Deposit Metallurgical recovery

Escondida

Full SaL: 76%

Sulphide: 85%

Sulphide Leach: 42%

Spence (leaching)

Oxide: Cu 76%

Supergene Sulphide: Cu 78%

Transitional Sulphide: Cu 47%, Mo 0%

Carrapateena Cu 92%, Au 77%, Ag 74%

Prominent Hill UG Sulphide: Cu 91%, Au 72%, Ag 69%

Olympic Dam

Cu 94%, U

65%, Au 71%, Ag 63%

Antamina Sulphide Cu only: Cu 92%, Zn 0%, Ag 79%, Mo 45%

Sulphide Cu‑Zn: Cu 83%, Zn 83%, Ag 63%, Mo 0%

14. Metallurgical recoveries based on testwork:

Deposit Metallurgical recovery

Spence (concentrator) Transitional Sulphide and Hypogene Sulphide: Cu 83%, Mo 48%

15. Escondida – Decrease in Full SaL due to depletion.

16. Spence – Increase in Hypogene due to mine life optimisation, decrease in all other material types due to depletion and cost inputs partially offset by updated modifying factors and

price inputs.

17. Pedra Branca – Divested in FY26.

18. Prominent Hill – Increase in UG Sulphide due to updated resource estimate informed by additional drilling and updated modifying factors partially offset by depletion. SP Sulphide was

fully depleted.

19. Antamina – Decrease due to depletion partially offset by updated resource estimate informed by additional drilling and updated modifying factors, price and cost inputs.

220 BHP Annual Report 2026

Copper

Ore Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,11,12

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

13 ,15

Full SaL 146 0.83 – 34 0.61 – 180 0.79 – 5 7. 5 200 0.78 –

Sulphide 3,090 0.60 – 1,400 0.54 – 4,490 0.58 – 4,630 0.59 –

Sulphide Leach 1,170 0.38 – 237 0.37 – 1,410 0.38 – 1,450 0.38 –

Spence

13 ,14,16

Oxide 3.1 0.53 – 0.2 0.78 – 3.3 0.55 – 100 9.8 0.54 –

Supergene Sulphide 28 0.60 – 31 0.52 – 59 0.56 – 66 0.54 –

Transitional Sulphide 4.2 0.42 131 0.4 0.46 105 4.6 0.42 129 7. 5 0.53 120

Hypogene Sulphide 302 0.57 188 503 0.50 149 805 0.53 163 745 0.53 160

Copper gold operations

Mt %Cu g/tAu g/tAg Mt %Cu g/tAu g/tAg

Pedra Branca

UG Sulphide – – – – – – – – – – – – – 3.8 1.83 0.49 –

Carrapateena

UG Sulphide – – – – 157 1.01 0.41 4 157 1.01 0.41 4 100 162 1.02 0.42 4

Prominent Hill

13 ,18

UG Sulphide 30 1.00 0.58 2 31 0.88 0.72 2 61 0.94 0.65 2 100 46 0.97 0.68 2

SP Sulphide – – – – – – – – – – – – 1.7 0.13 0.58 0.4

Copper uranium gold operation

Mt %Cu kg/tU

g/tAu g/tAg Mt %Cu kg/tU

g/tAu g/tAg

Olympic Dam

UG Sulphide 355 1.89 0.59 0.72 4 254 1.68 0.53 0.62 3 609 1.80 0.56 0.68 4 100 591 1.82 0.57 0.68 4

Low‑grade – – – – – 44 0.83 0.28 0.34 2 44 0.83 0.28 0.34 2 43 0.84 0.28 0.34 2

Copper zinc operation

Mt %Cu %Zn g/tAg ppmMo Mt %Cu %Zn g/tAg ppmMo

Antamina

13 ,19

Sulphide Cu only 200 0.78 0.11 8 260 170 0.92 0.15 9 300 370 0.84 0.13 9 280

33.75

375 0.86 0.13 9 290

Sulphide Cu‑Zn 46 1.01 1.83 19 100 89 1.08 1.90 20 80 135 1.06 1.87 19 90 151 1.06 1.90 19 90

221

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

6 Mineral Resources and Ore Reserves continued

Iron Ore

Mineral Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,2

Material

type

Measured Resources Indicated Resources

Inferred Resources Total Resources BHP

interest

Total Resources

Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI

Iron ore operations

WAIO

3,4,5,6

BKM 3,15 0 60.6 0.14 4.6 2.6 5.4 5,780 59.5 0.14 5.4 2.5 6.2 9,910 59.1 0.14 5.5 2.6 6.7 18,840 59.4 0.14 5.3 2.6 6.3 85 19,700 59.3 0.14 5.5 2.6 6.3

CID 140 55.9 0.05 6.0 2.2 11.3 300 57.1 0.07 5.8 2.0 10.1 940 54.8 0.06 6.7 3.0 11.2 1,370 55.4 0.06 6.4 2.7 10.9 1,520 55.2 0.06 6.6 2.7 10.9

DID – – – – – – 190 62.0 0.06 3.5 3.3 3.5 130 60.0 0.06 4.5 4.1 4.8 310 61.2 0.06 3.9 3.6 4.0 290 61.3 0.06 3.9 3.5 4.0

MM 1,690 61.1 0.07 3.6 1.8 6.4 1,400 59.6 0.06 4.8 2.2 6.9 4,040 59.4 0.07 4.9 2.3 7.1 7,13 0 59.8 0.07 4.6 2.2 6.9 7,26 0 59.8 0.07 4.6 2.2 6.9

Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc

Samarco ROM 2,990 39.3 0.05 1,720 37.7 0.05 420 37. 4 0.06 5,130 38.6 0.05 50 5,16 0 38.6 0.05

Ore Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,7

Material

type

Proved Reserves Probable Reserves

Total Reserves BHP

interest

Total Reserves

Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI

Iron ore operations

WAIO

3,4,8,9,10,11

BKM 1,290 62.1 0.13 3.5 2.3 4.8 1,210 61.3 0.13 3.9 2.4 5.3 2,500 61.7 0.13 3.7 2.4 5.0 85 2,440 62.0 0.13 3.5 2.3 4.8

MM 920 61.9 0.06 3.2 1.7 6.1 630 60.4 0.06 4.2 2.0 6.7 1,540 61.3 0.06 3.6 1.8 6.3 1,610 61.7 0.06 3.2 1.7 6.3

Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc

Samarco

1,7,12

ROM 215 42.4 0.06 582 42.8 0.05 797 42.7 0.05 50 826 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 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%Al

applied to 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 and in line with blended lump and fines products reflecting 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 – Decrease in CID material type due to updated economic assessment, increase in DID material type due to updated resource estimate informed by additional drilling.

Steelmaking Coal

Coal Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,2,3

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 OC Met 423 21.5 20.5 0.54 10 23.0 23.0 0.53

11 27.6 22.4 0.63 444 21.7 20.6 0.54

455 9.0 22.1 0.52

UG Met 1,748 23.9 19.7 0.50 404 22.6 19.3 0.56 521 21.9 18.6 0.56 2,675 23.4 19.4 0.53 2,680 9.7 20.0 0.52

Peak Downs OC Met 937 25.7 17. 2 0.63 548 26.4 17.1 0.74 310 26.8 17.8 0.90 1,795 26.1 17.3 0.71 50 1,810 11.3 19.3 0.64

Caval Ridge OC Met 352 30.4 19.3 0.61 82 29.6 20.1 0.66 43 31.7 19.3 0.64 477 30.4 19.4 0.62 50 488 12.3 22.3 0.58

Saraji OC Met 1,090 23.8 16.3 0.68 453 25.4 15.8 0.74 500 25.9 15.5 0.73 2,044 24.6 15.9 0.71 50 2,060 10.4 17.2 0.67

UG Met 1 26.8 15.2 0.65 74 21.8 15.4 0.61

93 24.5 15.5 0.73 169 23.3 15.4 0.68 169 9.3 16.2 0.56

Saraji South

OC Met 291 24.4 16.6 0.67 97 25.9 15.0 0.66 48 27. 2 14.5 0.70 436 25.1 16.0 0.67 50 437 9.7 17. 2 0.70

1. Tonnages are reported on an in‑situ moisture basis and raw coal qualities are reported on an air‑dried basis.

2. Increase in Ash and S and decrease in VM due to change in coal quality reporting from clean coal basis for FY25 to raw coal analysis for FY26 with no impact to reporting of tonnes.

The change eliminates yield assumption ambiguity and clearly differentiates in‑situ Coal Resource Qualities from Marketable Coal Reserve Qualities.

3. Cut‑off criteria:

Deposit Mining method Coal Resources Coal Reserves

Goonyella Complex OC ≥ 0.5 m seam thickness, coke yield ≥50% and ≤35% raw ash ≥ 0.5m seam thickness

UG ≥ 2.0 m 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

4. Saraji South – Decrease in Indicated and Inferred Resources and increase in Measured Resource was due to updated classification.

222 BHP Annual Report 2026

Iron Ore

Mineral Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,2

Material

type

Measured Resources Indicated Resources

Inferred Resources Total Resources BHP

interest

Total Resources

Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI

Iron ore operations

WAIO

3,4,5,6

BKM 3,15 0 60.6 0.14 4.6 2.6 5.4 5,780 59.5 0.14 5.4 2.5 6.2 9,910 59.1 0.14 5.5 2.6 6.7 18,840 59.4 0.14 5.3 2.6 6.3 85 19,700 59.3 0.14 5.5 2.6 6.3

CID 140 55.9 0.05 6.0 2.2 11.3 300 57.1 0.07 5.8 2.0 10.1 940 54.8 0.06 6.7 3.0 11.2 1,370 55.4 0.06 6.4 2.7 10.9 1,520 55.2 0.06 6.6 2.7 10.9

DID – – – – – – 190 62.0 0.06 3.5 3.3 3.5 130 60.0 0.06 4.5 4.1 4.8 310 61.2 0.06 3.9 3.6 4.0 290 61.3 0.06 3.9 3.5 4.0

MM 1,690 61.1 0.07 3.6 1.8 6.4 1,400 59.6 0.06 4.8 2.2 6.9 4,040 59.4 0.07 4.9 2.3 7.1 7,13 0 59.8 0.07 4.6 2.2 6.9 7,26 0 59.8 0.07 4.6 2.2 6.9

Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc

Samarco ROM 2,990 39.3 0.05 1,720 37.7 0.05 420 37. 4 0.06 5,130 38.6 0.05 50 5,16 0 38.6 0.05

Ore Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,7

Material

type

Proved Reserves Probable Reserves

Total Reserves BHP

interest

Total Reserves

Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI Mt %Fe %P %SiO

%Al

%LOI

Iron ore operations

WAIO

3,4,8,9,10,11

BKM 1,290 62.1 0.13 3.5 2.3 4.8 1,210 61.3 0.13 3.9 2.4 5.3 2,500 61.7 0.13 3.7 2.4 5.0 85 2,440 62.0 0.13 3.5 2.3 4.8

MM 920 61.9 0.06 3.2 1.7 6.1 630 60.4 0.06 4.2 2.0 6.7 1,540 61.3 0.06 3.6 1.8 6.3 1,610 61.7 0.06 3.2 1.7 6.3

Brazil Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc Mt %Fe %Pc

Samarco

1,7,12

ROM 215 42.4 0.06 582 42.8 0.05 797 42.7 0.05 50 826 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 located on State Agreement mining leases that guarantee the right to mine. Additional regulatory approvals are required prior to mining operations. Included in

the Ore Reserves are selected areas where one or more approvals remain outstanding, but where, based on technical investigations, company knowledge and experience we expect 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. Samarco – Increase in Proved Reserves and corresponding decrease in Probable Reserves due to environmental licence approval.

Steelmaking Coal

Coal Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,2,3

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 OC Met 423 21.5 20.5 0.54 10 23.0 23.0 0.53

11 27.6 22.4 0.63 444 21.7 20.6 0.54

455 9.0 22.1 0.52

UG Met 1,748 23.9 19.7 0.50 404 22.6 19.3 0.56 521 21.9 18.6 0.56 2,675 23.4 19.4 0.53 2,680 9.7 20.0 0.52

Peak Downs OC Met 937 25.7 17. 2 0.63 548 26.4 17.1 0.74 310 26.8 17.8 0.90 1,795 26.1 17.3 0.71 50 1,810 11.3 19.3 0.64

Caval Ridge OC Met 352 30.4 19.3 0.61 82 29.6 20.1 0.66 43 31.7 19.3 0.64 477 30.4 19.4 0.62 50 488 12.3 22.3 0.58

Saraji OC Met 1,090 23.8 16.3 0.68 453 25.4 15.8 0.74 500 25.9 15.5 0.73 2,044 24.6 15.9 0.71 50 2,060 10.4 17.2 0.67

UG Met 1 26.8 15.2 0.65 74 21.8 15.4 0.61

93 24.5 15.5 0.73 169 23.3 15.4 0.68 169 9.3 16.2 0.56

Saraji South

OC Met 291 24.4 16.6 0.67 97 25.9 15.0 0.66 48 27. 2 14.5 0.70 436 25.1 16.0 0.67 50 437 9.7 17. 2 0.70

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6 Mineral Resources and Ore Reserves continued

Steelmaking Coal

Coal Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

3,5,6,7,8,9

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

OC Met 422 9.7 432 307 6.7 314 9.8 22.4 0.53 50 323 9.8 22.4 0.53

UG Met 19 – 19 14 – 14 9.3 24.0 0.54 17 9.2 23.9 0.54

Peak Downs

OC Met 607 230 837 343 126 469 10.5 19.8 0.64 50 503 10.5 21.8 0.64

Caval Ridge

OC Met 185 38 223 101 21 122 10.5 22.4 0.58 50 128 10.5 22.4 0.58

Saraji

OC Met 226 19 245 141 10 151 10.5 18.5 0.67 50 166 10.6 18.6 0.67

Saraji South OC Met 51 2.3 53 33 1.2 34 9.8 17.5 0.63 50 34 9.8 17.5 0.63

5. Tonnages are reported on an in‑situ moisture basis. Coal qualities are for a potential product on an air‑dried basis.

6. 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

7. Product recoveries for the operations were:

Deposit Product recovery

Goonyella Complex 73% OC, 74% UG

Peak Downs 56%

Caval Ridge 54%

Saraji 62%

Saraji South 64%

Energy Coal

Coal Resources

As at 30 June 2026 As at 30 June 2025

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

OC Th 60 19.3 29.2 0.61 6,200 26 18.5 30.0 0.55 6,260 3.7 19.3 28.3 0.50 6,210 89 19.1 29.4 0.59 6,220 100 113 19.1 29.4 0.59 6,220

Coal Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,2

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

4,5,6,7

OC Th 62 16 78 49 16.0 30.2 0.53 5,820 13 16.3 29.5 0.52 5,730 62 16.1 30.1 0.53 5,810 100 78 16.1 30.2 0.53 5,780

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. Coal Resource qualities reported on an air‑dried in‑situ basis and tonnages reported as in‑situ. Coal Reserve tonnages reported on a ROM basis at 7.9% total moisture. Marketable Coal

Reserve tonnes reported reconciled to the point of sale at 10.1% total moisture.

3. Decrease in Coal Resources due to depletion.

4. 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)

5. Overall product recovery for the operation was 79.5%.

6. Coal delivered to handling plant where it may be washed through a coal handling and preparation plant or sold as raw product.

7. Decrease in Coal Reserves due to depletion.

224 BHP Annual Report 2026

Steelmaking Coal

Coal Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

3,5,6,7,8,9

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

OC Met 422 9.7 432 307 6.7 314 9.8 22.4 0.53 50 323 9.8 22.4 0.53

UG Met 19 – 19 14 – 14 9.3 24.0 0.54 17 9.2 23.9 0.54

Peak Downs

OC Met 607 230 837 343 126 469 10.5 19.8 0.64 50 503 10.5 21.8 0.64

Caval Ridge

OC Met 185 38 223 101 21 122 10.5 22.4 0.58 50 128 10.5 22.4 0.58

Saraji

OC Met 226 19 245 141 10 151 10.5 18.5 0.67 50 166 10.6 18.6 0.67

Saraji South OC Met 51 2.3 53 33 1.2 34 9.8 17.5 0.63 50 34 9.8 17.5 0.63

Energy Coal

Coal Resources

As at 30 June 2026 As at 30 June 2025

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

OC Th 60 19.3 29.2 0.61 6,200 26 18.5 30.0 0.55 6,260 3.7 19.3 28.3 0.50 6,210 89 19.1 29.4 0.59 6,220 100 113 19.1 29.4 0.59 6,220

Coal Reserves

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

1,2

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

4,5,6,7

OC Th 62 16 78 49 16.0 30.2 0.53 5,820 13 16.3 29.5 0.52 5,730 62 16.1 30.1 0.53 5,810 100 78 16.1 30.2 0.53 5,780

8. 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.

9. Coal delivered to handling plant.

10. Goonyella Complex – Decrease in Coal Reserves due to depletion.

11. Peak Downs – Decrease in Coal Reserves due to updated modifying factors and depletion partially offset by updated price inputs.

12. Caval Ridge – Decrease in Coal Reserves due to depletion.

13. Saraji – Decrease in Coal Reserves due to depletion and updated modifying factors.

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6 Mineral Resources and Ore Reserves continued

Potash

Mineral Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

Material

type

Measured

Resources

Indicated

Resources

Inferred

Resources

Total

Resources

BHP

interest

Total

Resources

%Insol.

%MgO

%Insol.

%MgO

%Insol.

%MgO

%Insol.

%MgO

%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 2026 As at 30 June 2025

Commodity

deposit

Material

type

Proved

Reserves

Probable

Reserves

Total

Reserves

BHP

interest

Total

Reserves

%Insol.

%MgO

%Insol.

%MgO

%Insol.

%MgO

%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 a marker clay seam.

3. Measured Resources grade has been assigned to Inferred Resources.

4. %K

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 88.4%.

Nickel

Mineral Resources

As at 30 June 2026 As at 30 June 2025

Commodity

deposit

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

OC Disseminated Sulphide 3.9 0.69 73 0.57 52 0.63 129 0.60 100 129 0.60

OC Massive Sulphide 0.12 4.0 0.63 5.1 0.30 5.0 1.0 4.9 1.0 4.9

UG Disseminated Sulphide 16 1.9 12 1.4 20 1.7 47 1.7 37 1.6

UG Massive Sulphide 0.55 5.9 2.5 5.5 1.3 4.5 4.3 5.3 4.1 5.2

Mt Keith OC Disseminated Sulphide 132 0.54 67 0.52 24 0.52 223 0.53 100 223 0.53

Yakabindie OC Disseminated Sulphide 146 0.61 86 0.61 148 0.61 380 0.61 100 380 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 OC Disseminated Sulphide – – 26 0.54 82 0.53 108 0.53 100 108 0.53

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 ≥ 0%Ni for block cave and sub level cave, variable ≥ 0.4‑1%Ni outside of cave volumes.

UG Massive Sulphide Stratigraphic

Mt Keith OC Disseminated Sulphide Variable ≥ 0.35%‑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 NSR ≥ A$13/t representing mill‑limited break‑even cut‑off inclusive of processing and re‑handling cost per total tonne mined.

2. Nickel West Operations – Remained in temporary suspension.

3. Leinster – Increase in UG Disseminated Sulphide due to an updated resource estimate informed by additional drilling.

226 BHP Annual Report 2026

Table 1 – Workforce data and diversity by region FY2026

1,2

Number and %

of employees

Average number

and % of contractors

Employees by gender number and %

Region Employees Employees % Contractors Contractors % Male Male % Female Female %

Asia 1,620 4.0 3,357 7.7 612 37. 8 1,008 62.2

Australia 30,684 75.1 13,570 31.2 18,679 60.9 12,005 3 9.1

Europe 94 0.2 6 <0.1 40 43 54 57. 5

North America 867 2.1 3,094 7.1 501 57.8 366 42.2

South America 7,598 18.6 23,419 53.9 4,081 53.7 3,517 46.3

Total 40,863 100 43,446 100 23,913 58.5 16,950 41.5

Table 2 – Employees by category and diversity for FY2026

1,2

Gender Region

Employment category Total % of total Male Female Asia Australia Europe

North

America

South

America

Full time 38,833 95 23,182 15,651 1,592 28,794 88 833 7,526

Part time 1,405 3.4 526 879 3 1,396 2 4 0

Fixed term full time 434 1.1 153 281 25 304 4 29 72

Fixed term part time 42 0.1 16 26 0 41 0 1 0

Casual 149 0.4 36 113 0 149 0 0 0

Total 40,863 100 23,913 16,950 1,620 30,684 94 867 7,598

Table 3 – Employees by category and diversity for FY2026

1,2

Gender Gender % Age group %

Category Total Male Female Male % Female % Under 30 30–39 40–49 50+

Senior leaders 242 147 95 60.7 39.3 0.4 7 48.4 44.2

Managers 1,382 798 584 57.7 42.3 0.1 22.3 51.4 26.2

Supervisory and

professional 17,817 9,831 7,9 86 55.2 44.8 7.9 38 35 19.1

Operators and general

support

21,422 13,137 8,285 61.3 38.7 20 29.2 24.8 26

Total 40,863 23,913 16,950 58.5 41.5 14 32.7 30.3 23.1

Board and executive management diversity

In accordance with UK Listing Rule 14.3.30(2), these tables set out the Board and executive management diversity data as at 30 June 2026.

Gender identity

Number of

Board members

Percentage

of the Board

Number of senior

positions on the Board

(CEO, CFO, SID

and Chair)

Number in executive

management

Percentage of

executive

management

Men

6 60% 3 5 45%

Women 4 40% – 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

(CEO, CFO, SID

and Chair)

Number in executive

management

Percentage of

executive

management

White British or other White

(including minority‑white

groups) 7 70% 2 7 64%

Mixed/Multiple ethnic groups 2 20% 1 3 27%

Asian/Asian British 1 10% – 1 9%

Black/African/Caribbean/Black

British 0 0% – 0 0%

Other ethnic group 0 0% – 0 0%

Not specified/prefer not to say 0 0% – 0 0%

1. Based on a ‘point in time’ snapshot of employees as at 30 June 2026, including employees on extended absence, which was 1,233 in FY2026. 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 2025 to April 2026.

3. 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.

4. 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.

7 People – performance data

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Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

The Group is involved from time to time in legal proceedings and

government investigations, including claims and pending actions against it

seeking damages or clarification or prosecution of legal rights and regulatory

inquiries regarding business practices. Insurance or other indemnification

protection may offset the financial impact on the Group of a successful claim.

This section summarises the significant legal proceedings, investigations,

and associated matters in which the Group is currently involved or has

finalised since our last Annual Report.

Legal proceedings relating to the failure of the

Fundão tailings dam at the Samarco iron ore

operations in Minas Gerais and Espírito Santo

(Samarco dam failure)

The Group has been involved in numerous legal proceedings relating to

the Samarco dam failure. These include legal proceedings brought by

government authorities and civil associations claiming environmental and

socioeconomic damages and a number of specific remediation measures

as a result of the Samarco dam failure, including proceedings in which

BHP Brasil is a defendant.

For additional information concerning the Samarco dam failure, refer to

Financial Statements note 4 ‘Significant events – Samarco dam failure’.

Settlement Agreement with Public Authorities

for reparation of the Samarco dam failure

On 25 October 2024, the Federal Government of Brazil, State of Minas

Gerais, State of Espírito Santo, public prosecutors and public defenders

(Public Authorities) entered into the Settlement Agreement with Samarco

Mineração S.A. (Samarco) and its shareholders, BHP Billiton Brasil Ltda.

(BHP Brasil) and Vale S.A. (Vale) (together, the Companies) to settle

claims relating to the Samarco dam failure. The Settlement Agreement

was ratified by the Brazilian Federal Supreme Court on 6 November 2024.

On 15 May 2025, the ratification decision became final and unappealable.

Over the years, the Companies and public authorities entered into

agreements for the remediation of damages resulting from the Samarco

dam failure, including the March 2016 Framework Agreement, which

established the Renova Foundation and the environmental and

socioeconomic programs for remediation and compensation, and the June

2018 Governance Agreement, which addressed governance arrangements

and the renegotiation of those programs. The obligations provided for

in those previous agreements, including the Framework Agreement and

the Governance Agreement, were extinguished and replaced by the

Settlement Agreement.

The Settlement Agreement delivers a full and final settlement of the

obligations under the Framework Agreement and of the main public

civil actions and related proceedings brought by the Public Authorities

in relation to the Samarco dam failure. These public civil actions and

proceedings included the public civil action filed in November 2015 by

the Federal Government of Brazil, the States of Espírito Santo and Minas

Gerais and other public authorities, seeking full reparation of environmental

and socioeconomic damages in the amount of R$20 billion (approximately

US$3.9 billion)

(the R$20 billion Public Civil claim), and the public civil

action filed in May 2016 by the Brazilian Federal Public Prosecutors’ Office,

seeking R$155 billion (approximately US$29.9 billion)

for reparation,

compensation and social, individual and collective moral damages (the

R$155 billion Federal Public Prosecutors’ Office claim).

The financial value of the Settlement Agreement, as at the announcement

date, was R$170 billion (approximately US$31.1 billion)

on a 100 per cent

basis. This amount includes R$38 billion (approximately US$7.9 billion)

spent to 30 September 2024 on remediation and compensation since 2016,

R$100 billion (approximately US$17.6 billion)

in instalments over 20 years

to the Public Authorities, the relevant municipalities and Indigenous peoples

and Traditional communities for the execution of measures provided for in

the Settlement Agreement (Obligation to Pay), and additional performance

obligations for an estimated financial value of approximately R$32 billion

(approximately US$5.6 billion)

to be carried out by Samarco in accordance

with the terms of the Settlement Agreement (Obligations to Perform).

These obligations include remediation and compensation programs that are

expected to be completed over the next 15 years.

Under the Settlement Agreement, Samarco is the primary obligor for the

settlement obligations and BHP Brasil and Vale are each secondary obligors

of any obligation that Samarco cannot fund or perform in proportion to their

shareholding at the time of the dam failure, which was 50 per cent each.

Some of the key obligations of the Settlement Agreement include funding

for programs for the benefit of people, communities and the environment in

the affected regions, including universal water sanitation, health programs,

economic recovery programs, improvements to roads and infrastructure, a

flood response fund, initiatives to foster fishing and biodiversity, a program

to support women, a social participation fund for investment in education,

culture, sports and food security, and an income assistance program to

support the most vulnerable people. The Settlement Agreement provides

R$8 billion (US$1.4 billion)

to eligible Indigenous peoples and Traditional

communities, with the allocation of funds to be determined by Indigenous

and Traditional communities following a consultation process by the

Federal Government. The Krenak Indigenous community settled their

claim through a parallel agreement.

In addition, the Settlement Agreement provides for individual compensation

mechanisms, including payments of R$95,000 per person to eligible fishermen

and farmers and R$13,018 per person to eligible individuals with water

damage claims, and establishes a further compensation and indemnification

system known as the Definitive Indemnification Program (PID), which provides

payments of R$35,000 per eligible individual and small business.

For more information on the social economic and social environmental

remediation actions to date, please refer to the Implementation of the

Settlement Agreement below.

In view of the Settlement Agreement, the main proceedings brought by its

signatories against BHP Brasil, Vale, Samarco and/or Renova Foundation

have now been terminated, including the R$20 billion Public Civil claim

and the R$155 billion Federal Public Prosecutors’ Office claim, related

enforcement proceedings and other public civil actions covered by the

Settlement Agreement. The Settlement Agreement provides that the

collective socioenvironmental and socioeconomic damages of any nature

(including social, moral and non‑economic damages) arising from the dam

failure are compensated and remediated by the Obligations to Perform and

Obligation to Pay and that no additional obligations will be required for the

reparation and compensation of the collective damages.

Pursuant to the Settlement Agreement, the Renova Foundation was formally

extinguished and all its Programs were either terminated, completed or

transferred to Samarco, in accordance with the 12‑month period for the

completion of the transition of rights and obligations to Samarco.

The Settlement Agreement did not resolve all claims related to the Samarco

dam failure. For instance, the Settlement Agreement did not resolve the UK

group action complaint, the group action claim brought against certain Vale

and Samarco entities in the Netherlands (more details about these claims

can be found below in the Class or group claims section), criminal charges

against the Companies and certain individuals, certain CPAs commenced by

certain municipalities or private associations, including the CPAs concerning

the use of Tanfloc for water treatment, trailing litigation from individuals,

Indigenous peoples and Traditional communities and businesses (among

others), and future or unknown claims, which may arise from new information

or damages in connection with the dam failure, such as potential claims

alleging health impacts to individuals.

The Settlement Agreement and implementation thereof have been the subject

of claims that seek, among other things, to change the eligibility parameters of

the Settlement Agreement. The Companies are defending these claims.

In addition, actions for alleged damages, fees and/or expenses related to

claims concerning the Samarco dam failure have been threatened, and

may in the future be brought, against the Group.

The potential liabilities resulting from current and future claims, lawsuits,

proceedings, enforcement actions and other obligations relating to the

Samarco dam failure not resolved by the Settlement Agreement, together

with the potential cost of implementing remedies sought in the various

proceedings, cannot be reliably estimated with certainty at this time

and there is a risk that outcomes may be materially higher or lower than

amounts reflected in BHP Brasil’s provision and contingencies for the

Samarco dam failure.

For more information on BHP Brasil’s provision and contingencies for the

Samarco dam failure refer to Financial Statements note 4 ‘Significant

events – Samarco dam failure’

8 Legal proceedings

1. Based on the exchange rate as at 30 June 2026 BRL/US$ of 5.176.

2. US$ amounts for amounts already spent is calculated based on actual transactional (historical) exchange rates related to funding provided by BHP Brasil. Future spend is calculated using BRL/

US$ exchange rate of 5.696. 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.

228 BHP Annual Report 2026

Implementation of the Settlement Agreement

Implementation of the Settlement Agreement is progressing through

structured, deadline‑driven workstreams led by Samarco in coordination

with the relevant Public Authorities, with ongoing governance and oversight

arrangements and independent technical audit requirements applying

to specified deliverables. The status of select compensation, financial

assistance and socioeconomic activities and resettlement activities is

summarised below. In addition, progress continues to be made regarding

Samarco’s obligations with respect to certain environmental remediation

under the terms of the Settlement Agreement.

Compensation, financial assistance and

socioeconomic activities

Compensation and financial assistance of approximately

R$34.2 billion (US$6.6 billion, 100 per cent basis)

has been paid to

support approximately 632,000 people affected by the dam failure, as of

30 June 2026. As of 30 June 2026, the Definitive Indemnification Program

(PID), the largest program, has resulted in the payment of compensation in

respect of approximately 310,000 claims and the payment of R$11.4 billion

(approximately US$2.1 billion).

Resettlement

The Settlement Agreement provides processes and defined timeframes

to incentivise remaining families to select which resettlement option they

prefer: (i) the construction of a new house in the collective resettlement of

Bento Rodrigues or Paracatu de Baixo, (ii) the purchase of a new house in

another place or (iii) a cash payment. As at 30 June 2026, approximately

100% of resettlement cases have been completed, either via completion of

construction (with families moving in or handover to families in progress) or

cash payment for those families who have opted for this option instead of

the other resettlement solutions. Resettlement of public assets has been

completed, with most assets formally transferred to and operated by the

Municipality of Mariana.

Environmental remediation

Samarco continues implementing long‑term monitoring and compensatory

initiatives, including monitoring of water, river sediments, ecological indicators

and air quality, with the main monitoring activities expected to continue

until 2039. Action has been taken to vegetate the impacted riverbanks and

floodplains, stabilise river margins and return water quality to the levels

observed before the dam failure.

The Settlement Agreement also requires that Samarco provide R$11 billion

(US$1.9 billion, 100 per cent basis)

in funding for the universalisation of

basic water sanitation for municipalities in the Doce River basin to reduce

untreated sewage discharge into the river by communities. According to

the Doce River basin water resources plan, developed by the Brazilian

Water Agency, a federal agency responsible for the regulation of Brazilian

water resources, water from the Doce River can be used for (1) human

consumption after conventional treatment; (2) the protection of aquatic

habitats; (3) primary contact recreation, such as swimming, water skiing

and diving, among other things. The Settlement Agreement establishes

Samarco’s obligation to reforest 50,000 hectares of protected areas and

restore 5,000 springs within the Doce River basin. Of these, as at 30 June

2026, approximately 46,500 hectares and 4,501 springs are undergoing

restoration, continuing the efforts initiated by the Renova Foundation.

All reforestation actions are expected to be completed by 2031.

The Settlement Agreement outlines remaining tailings management

activities, including the recovery of marginal lagoons and streams, as well

as bioengineering interventions to control riverbank erosion. It also sets out

Samarco’s obligation to carry out two environmental studies: one on the

potential removal of tailings from the Candonga Reservoir, and the other

related to management of contaminated sites. The development of these

studies are ongoing with supervision by the applicable Public Authorities.

As part of the Settlement Agreement, the fishing ban in the coastal zone

of the Doce River is set to be lifted within two years counted from the date

of its execution (25 October 2024). Until then, it is expected the Public

Authorities will issue fishing regulations aimed at protecting both fishing

activities and the environment.

Civil public actions and individual actions

for inclusion as beneficiaries of the

Settlement Agreement

The Companies are involved in a number of proceedings brought by

individuals or associations, including from Indigenous, Quilombola and

Traditional communities, alleging wrongful exclusion from compensation

programs provided under the Settlement Agreement, whether administered

by Samarco or the Public Authorities, thus seeking their inclusion and, in

some cases, additional compensation. These claims generally argue that

the process used to identify eligible beneficiaries was inadequate, resulting

in the alleged exclusion of certain individuals. The Companies continue to

defend themselves against such claims. In some of these cases, the Court

recognised that BHP Brasil should not be a defendant in the lawsuits, given

that Samarco is the primary obligor pursuant to the Settlement Agreement.

In other cases, the claims were dismissed against all Companies.

Appeals and motions for clarification by the claimants are pending.

Civil public actions commenced by associations

concerning the use of Tanfloc for water treatment

On 17 November 2023, the Federal Court dismissed the lawsuit filed

by four associations in November 2021 due to procedural reasons.

The judgment is final and unappealable. In July 2024, two further

associations filed another lawsuit against the Companies and others,

including the States of Minas Gerais and Espírito Santo, the Federal

Government and the Water Treatment Companies, who were all also

defendants in the first lawsuit.

This second lawsuit was also dismissed due to procedural reasons on

12 November 2024 and the associations have appealed this judgment,

which is still pending. In both lawsuits the plaintiffs alleged that the

defendants carried out a clandestine study on the citizens of the

locations affected by the Samarco dam failure where Tanfloc (a tannin‑

based flocculant/coagulant) was used in the water treatment process.

The plaintiffs claim that this product put the population at risk due to its

alleged experimental qualities and the dosage applied. The plaintiffs

presented largely similar pleas (e.g. material damages, moral damages).

Indigenous communities – civil public action

for partial nullity of agreements

The Companies are involved in proceedings related to claims involving

certain Indigenous communities. In February 2024, the Federal

Prosecutor’s Office (MPF) filed a collective lawsuit against the Companies,

alleging that the settlement agreements entered into between Renova

Foundation and the Tupiniquim Guarani Indigenous communities (the

Tupiniquim Guarani) contain nullities regarding the release of monthly

Emergency Subsistence Aid (ASE), and requested an injunction ordering

the Companies to maintain ASE payments to the Tupiniquim Guarani,

including an increase in the monthly payment amount. On 4 March 2024,

the Federal Court granted the MPF’s injunction request, later overturned

in April 2024. On 31 October 2024, the Federal Court ruled in favour of

the MPF request, but suspended the terms of its own rule. Following the

Settlement Agreement, the Companies requested the suspension of

the lawsuit, which was granted on 24 July 2025. These claims may be

resolved through a Federal Government‑led consultation in connection

with the Settlement Agreement to part of the Tupiniquim Guarani who is

still engaged in the consultation process; and through a separate court‑

supervised mediation ongoing for the remainder part of the community

that has opted out of the Settlement Agreement.

1. US$ amounts for amounts already spent is calculated based on actual transactional (historical) exchange rates related to funding provided by BHP Brasil. Future spend is calculated using BRL/

229

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Additional Information

8 Legal proceedings continued

Civil public action filed by Municipalities

The Companies were served with a civil public action filed in June 2025

by five municipalities from the State of Bahia seeking R$780 million

(US$ 151 million)

in compensation for damages allegedly caused by

the Samarco dam failure, including environmental, socioeconomic and

collective moral damages. The municipalities argue that the Companies

are jointly and severally liable. The Companies have defended these

claims, and no decision has been issued to date.

Other civil proceedings in Brazil

As noted, BHP Brasil is among the companies named as a defendant

in a number of legal proceedings initiated by individuals, indigenous

and traditional persons and their communities, non‑governmental

organisations, corporations, municipalities and other governmental entities

in Brazilian Federal and State courts following the Samarco dam failure.

The other defendants include Vale, Samarco and Renova Foundation.

The lawsuits include claims for compensation, environmental reparation

and violations of Brazilian environmental and other laws, among other

matters. The lawsuits seek various remedies, including reparation

costs, compensation to injured individuals and families of the deceased,

recovery of personal and property losses, moral damages and injunctive

relief. Certain of these legal proceedings are outside the scope of the

Settlement Agreement.

In addition, government inquiries, studies and investigations relating to

the Samarco dam failure and actions taken in response to it have been

commenced by numerous agencies and individuals of the Brazilian

Government and may still be ongoing. Additional legal proceedings

and government investigations relating to the Samarco dam failure or

responses to the dam failure could be brought against BHP Brasil and

other Group entities in Brazil or other jurisdictions. The outcomes of these

claims, investigations and proceedings remain uncertain and continue to

be disclosed as contingent liabilities.

As of 30 June 2026, Samarco had been named as a defendant in more

than 92,000 small claims for moral damages in which people argue their

public water service was interrupted for between five and 10 days, of which

approximately 25,000 claims are still active. BHP Brasil is a co‑defendant

in more than approximately 21,000 of these cases.

The Settlement Agreement does not resolve existing claims by individuals,

however it provided for an indemnification proposal of R$13,018 per person

to individuals who have unresolved lawsuits in connection with water

damage claims. As of 30 June 2026, Samarco has reached settlement in

more than 13,300 individual cases, including approximatively 7,000 cases

in which BHP Brasil is a co‑defendant. Alternatively, the Brazilian Code

of Civil Procedure provides that repetitive claims can be settled through

a proceeding known as the Resolution of Repetitive Demands Procedure

(IRDR). Under the IRDR, a court will hear a ‘pilot case’ representative of

such recurring legal matters and the judgment in that decision will set a

precedent for the resolution of similar cases in that jurisdiction. An IRDR has

been established in the State of Minas Gerais and the Court in the pilot case

has ruled that the mandatory parameter for resolution of claims will be the

payment of R$2,000 (approximately US$386)

per individual claim for moral

damages due to the suspension of public water supply. Appeals before

higher courts were filed. On 21 May 2024, the Superior Court of Justice

granted the State Prosecutor of Minas Gerais request to declare null the

IRDR due to the alleged failure to satisfy the procedural requirements

necessary for its formal admissibility. Challenges to the decision were

dismissed but still subject to appeal. The stay of individual proceedings

remains subject to an assessment by the State Court of Minas Gerais.

Samarco’s judicial reorganisation

On 9 April 2021, Samarco filed for judicial reorganisation (JR) and

on 1 September 2023 the Second Business State Court for the Belo

Horizonte District of Minas Gerais (JR Court) confirmed Samarco’s Judicial

Reorganisation Plan (JR Plan). Under the JR Plan, Samarco’s funding of

obligations to remediate and compensate the damages resulting from the

dam failure is capped at US$1 billion for the period CY2024 to CY2030.

Notwithstanding this cap, and subject to certain conditions, if Samarco has

a positive cash balance after meeting its obligations in any given year, its

shareholders may direct 50 per cent of the year‑end excess cash to fund

remediation obligations, including those under the Settlement Agreement.

On 11 August 2025, Samarco formally emerged from JR following a judicial

decision from the JR Court. Samarco is still required to implement the JR Plan.

Class or group action claims

BHP Group Limited and certain of its subsidiaries have been named as

defendants in class or group action claims related to the Samarco dam

failure. The most significant of those claims are summarised below.

Australian class action complaint

BHP Group Limited was named as a defendant in a shareholder class

action filed in the Federal Court of Australia in 2018 on behalf of persons

who acquired shares on the ASX, JSE or LSE in BHP Group Limited or

BHP Group Plc (now BHP Group (UK) Ltd) in periods prior to the Samarco

dam failure. In September 2025, BHP reached an agreement to settle

the Australian Samarco shareholder class action. On 5 December 2025,

the Federal Court of Australia approved the settlement. Pursuant to the

terms of the settlement, BHP paid the applicants A$110 million, inclusive

of interest and costs, with no admission of liability. BHP recovered the

majority of the settlement amount from its insurers.

United Kingdom group action complaint

BHP Group (UK) Ltd (formerly BHP Group Plc) and BHP Group Limited

(together, the BHP Defendants) are named as defendants in group action

claims for damages filed in the courts of England. These claims were filed

in 2018 on behalf of certain individuals, municipalities, businesses and

communities in Brazil allegedly impacted by the Samarco dam failure,

some of whom are eligible for and have been compensated through the

Settlement Agreement.

In January 2024, the BHP Defendants were served with a new group

action filed in the courts of England on behalf of additional individuals

and businesses in Brazil allegedly impacted by the Samarco dam failure.

The new action makes broadly the same claims as the original action and

the amount of damages sought in these claims is unspecified. The claims

have been stayed by the English court pending an application for

consolidation with the original action.

In July 2024, the BHP Defendants, BHP Brasil and Vale entered into an

agreement (BHP and Vale Agreement) – without any admission of liability in

any proceedings – whereby: (i) Vale will pay 50 per cent of any amounts that

may be payable by the BHP Defendants to the claimants in the UK group

action claims (or by the BHP Defendants, BHP Brasil or their related parties

to claimants in any other proceedings in Brazil, England or the Netherlands

covered by the BHP and Vale Agreement); and (ii) BHP Brasil will pay

50 per cent of any amounts that may be payable by Vale to the claimants in

the Netherlands proceedings (or by Vale or its related parties to claimants in

any other proceedings in Brazil, England or the Netherlands covered by the

BHP and Vale Agreement). The Group has considered the BHP and Vale

Agreement when determining its provision for the UK group action claim

and have taken into account amounts to be received from Vale.

In November 2025, the English High Court found the BHP Defendants liable

under Brazilian law for the Samarco dam failure on the basis that it is a

‘polluter’ under Brazilian environmental law and at fault under the Brazilian

civil code. The English High Court rejected the argument that the BHP

Defendants are liable under Brazilian corporate law. The decision relates

to events that occurred in the period before November 2015. The Court’s

findings regarding Brazilian limitation periods could lead to attempts to join

further claimants to the proceedings. The English High Court also found

that certain of the waivers and releases signed by claimants who have

already received compensation in Brazil are valid, and the claimants have

accepted these claims will be discontinued, reducing the size and value of

the claims in the UK group action significantly. The Group anticipates at least

240,000 claims will be discontinued as a result of these findings. The BHP

Defendants were not granted permission to appeal the liability decision and

will continue to defend the UK group action.

1. Based on the exchange rate as at 30 June 2026 BRL/US$ of 5.176.

230 BHP Annual Report 2026

A stage 2 trial will decide generic issues of causation and quantification

and whether losses claimed by certain lead claimants were caused by the

dam failure. The trial is scheduled to run from April 2027 to March 2028.

Following any decision and appeals in that trial, a stage 3 trial may also be

required, where each remaining claimant would need to prove their alleged

individual damages before the BHP Defendants are required to make any

payments to them. This third trial is unlikely to occur before 2029. As at

30 June 2026, BHP has updated its Samarco dam failure provision to

reflect its best estimate of potential cash outflows in relation to the claim.

Given the status of the claim, significant uncertainty remains around the

extent of any potential outflow and there is a risk that outcomes may be

materially higher or lower than amounts reflected in the Group’s provision

for the Samarco dam failure. Key areas of uncertainty include the findings

of stage 2 on whether losses were caused by the dam failure and the

number of individuals in stage 3 who are able to prove damage and

any amounts to be awarded.

United Kingdom contempt proceedings

In October 2024, certain Brazilian municipalities, who are claimants in

the UK group action claims referred to above, brought criminal contempt

proceedings against the BHP Defendants in relation to their alleged

involvement in a constitutional claim brought by a third‑party Brazilian mining

association (IBRAM) before the Brazilian Supreme Court. In June 2025, the

High Court in London rejected the BHP Defendants’ application to strike out

the proceedings. That decision was overturned on appeal in favour of the

BHP Defendants in March 2026, resulting in the contempt proceedings being

struck out. The UK Supreme Court has denied the Claimant’s application for

permission to appeal the decision and the matter is at an end.

Vale and Samarco’s Netherlands collective action claim

In March 2024, a collective action complaint was filed in the Netherlands

against Vale and a Dutch subsidiary of Samarco for compensation relating

to the Samarco dam failure. That complaint, which formally commenced in

February 2025, indicates that these claims were filed on behalf of certain

individuals, municipalities, businesses, associations and faith‑based

institutions allegedly impacted by the Samarco dam failure who are not

also claimants in the UK group action claims referred to above. Vale and

Samarco’s Dutch subsidiary have challenged the Dutch Court’s jurisdiction

to hear the claim and the Dutch Court has provisionally indicated that a

decision will be handed down on 14 October 2026. BHP is not a defendant

in the Netherlands proceedings.

Any amounts payable by Vale and Samarco under this claim will be

subject to the BHP and Vale Agreement referred to in the UK group

action claim above.

Criminal charges

On 20 October 2016, the Federal Prosecutors’ Office in Brazil filed

criminal charges against the Companies and certain of their employees

and former employees in the Federal Court of Ponte Nova, Minas Gerais.

On 3 March 2017, BHP Brasil and the charged employees and former

employees of BHP Brasil (Affected Individuals) filed their preliminary

defences. The Federal Court granted decisions in favour of all eight

Affected Individuals, terminating the charges against those individuals.

On 14 November 2024, the Federal Court Judge issued a decision

acquitting the Companies and certain individuals affiliated with Vale,

Samarco and VogBR (Samarco’s independent consultant involved in

the maintenance of the tailings dam) from all charges. On 10 December

2024, the Federal Prosecutors’ Office appealed. The trial commenced

on 11 March 2026 and was adjourned until 3 September 2026.

Legal proceedings unrelated to the Samarco

dam failure

South African class action claim

In August 2023, an application to commence a class action was filed

in the High Court of South Africa on behalf of current and former mine

workers (and the dependants of certain mine workers). The mine workers

are alleged to have contracted coal mine dust lung disease and to have

worked at specified coal mines in South Africa between 1965 and the filing

date. ‘BHP Billiton Plc Incorporated’ is named as a respondent, alongside

South32 SA Holdings Limited (South 32) and Seriti Power (Proprietary)

Limited (Seriti). The claims against the BHP entity relate to the period from

1999 to 2015. The relevant businesses were divested in 2015 as part of the

demerger of South32 Limited.

The matter is currently at the certification stage whereby the South African

Court must first grant permission for a class action to proceed. BHP,

South32 and Seriti have filed notices opposing certification. The amount

of damages sought by the Applicants on behalf of the putative class is

unspecified. BHP has notified South32 that it considers any liability to the

Applicants arising from the class action to be indemnified under the terms

of the Separation Deed agreed as part of the demerger of South32 in 2015.

Federal Court of Australia sexual harassment

and sex discrimination class action

In December 2024, BHP Group Limited was served with a class action

proceeding in the Federal Court of Australia in relation to allegations of

sexual harassment and sex discrimination. The claim was brought on

behalf of all women who worked at BHP’s Australian workplaces at any

time during the period from 12 November 2003 to 11 March 2024 who

were impacted by the alleged conduct. The proceeding remains at an

early stage and the amount of damages sought is unspecified.

231

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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, and

– 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.

232 BHP Annual Report 2026

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

233

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Additional Information

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 9 July 2026.

Substantial shareholders in BHP Group Limited

BHP Group Limited is not directly or indirectly controlled by another corporation or by any government. No shareholder possesses voting rights that differ

from those attaching to all of BHP Group Limited’s voting securities.

The following table shows holdings of 5 per cent or more of voting rights in BHP Group Limited’s shares as notified to BHP Group Limited under the

Australian Corporations Act 2001 (Cth), Section 671B as at 9 July 2026.

Date of last notice

Title of class

Identity of

person or group Date received Date of change Number owned

% of total

voting rights

Ordinary shares State Street Corporation 3 February 2025 30 January 2025 361,526,566 7.13%

Ordinary shares BlackRock Group

3 February 2022 31 January 2022 347,008,470 6.85%

Ordinary shares The Vanguard Group Inc. 24 April 2025 16 April 2025 304,608,271 6.001%

Ordinary shares Citigroup Global Markets

Australia Pty Limited

15 May 2025 12 May 2025 268,965,425.83 5.2988%

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 9 July 2026 (as named on the Register of Shareholders)

BHP Group Limited

Number of fully

paid shares

% of issued

capital

1. HSBC Custody Nominees (Australia) Limited

1,520,504,094 29.92

2. J P Morgan Nominees Australia Pty Limited 846,040,032 16.65

3. Citicorp Nominees Pty Ltd 577,197,190 11.36

4. Citicorp Nominees Pty Limited <Citibank NY ADR DEP A/C> 252,754,885 4.97

5. BNP Paribas Noms Pty Ltd 158,390,817 3.12

6. Computershare Clearing Pty Ltd <CCNL DI A/C>

150,078,16 8 2.95

7. South Africa Control A/C\C

122,393,450 2.41

8. BNP Paribas Nominees Pty Ltd <Agency Lending A/C>

80,952,149 1.59

9. HSBC Custody Nominees (Australia) Limited <Nt‑Comnwlth Super Corp A/C>

37, 247,6 96 0.73

10. Citicorp Nominees Pty Limited <Colonial First State Inv A/C> 30,006,265 0.59

11. BNP Paribas Nominees Pty Ltd <Clearstream>

28,136,736 0.55

12. BNP Paribas Nominees Pty Ltd <HUB24 Custodial Serv Ltd>

28,063,089 0.55

13. Computershare Nominees CI Ltd <ASX Shareplus Control A/C> 24,220,866 0.48

14. Netwealth Investments Limited <Wrap Services A/C> 19,753,098 0.39

15. Australian Foundation Investment Company Limited 13,413,159 0.26

16. HSBC Custody Nominees (Australia) Limited

12,922,022 0.25

17. BNP Paribas Noms (NZ) Ltd 9,725,515 0.19

18. Argo Investments Limited 9,682,564 0.19

19. HSBC Custody Nominees (Australia) Limited – A/C 2

8,698,156 0.17

20. Mutual Trust Pty Ltd 6,765,600 0.13

3,936,945,551 77. 48

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 9 July 2026

Classification of holder

BHP Group Limited

Number of

shareholders %

Number of

shares %

Registered holders of voting securities 1,647 0.28 3,864,736 0.08

ADR holders 1,151 0.19 252,754,884

4.97

1. The number of shares corresponds to 126,377,442 ADRs.

9 Shareholder information continued

234 BHP Annual Report 2026

Distribution of shareholdings by size as at 9 July 2026

Size of holding

BHP Group Limited

Number of

shareholders %

Number of

1–500

299,243 50.15 54,516,654 1.07

501–1,000 99,404 16.66 75,849,228 1.49

1,001–5,000 156,001 26.15 350,725,172 6.90

5,001–10,000 25,599 4.29 18 0,127,4 06 3.54

10,001–25,000 12,583 2.11 188,681,680 3.71

25,001–50,000 2,631 0.44 89,841,272 1.77

50,001–100,000 797 0.13 54,552,090 1.07

100,001–250,000 294 0.05 42,731,865 0.84

250,001–500,000 57 0.01 18,574,771 0.37

500,001– and over 62 0.01 4,025,791,568 79.23

Total 596,671 100 5,081,391,706 100

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$56.87 as at 9 July 2026 was 5,043.

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 FY2026 refer to OFR 5.2 and OFR 8

The Board will assess, at each reporting period, the ability to pay amounts

additional to the minimum payment, in accordance with the Capital

Allocation Framework, as described in OFR 2.

In FY2026, we determined our dividends and other distributions in

US dollars as it is our main functional currency.

Payments

BHP Group Limited shareholders may have their cash dividends paid

directly into their bank account in Australian dollars, UK pounds sterling,

New Zealand dollars, South African rand or US dollars, provided they have

submitted direct credit details and if required, a valid currency election

nominating a financial institution to the BHP Share Registrar no later

than close of business on the dividend reinvestment plan election date.

BHP Group Limited shareholders who do not provide their direct credit

details will receive dividend payments by way of a cheque in Australian

dollars. BHP Group Limited shareholders who reside in New Zealand,

Papua New Guinea or Botswana must provide valid direct credit details

to receive their dividend payment.

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 BHP a net reimbursement of US$3,153,453.62

in FY2026 for ADR program‑related expenses for BHP’s ADR program.

ADR program‑related expenses include legal and accounting fees,

listing fees, expenses related to investor relations in the United States,

fees payable to service providers for the distribution of material to ADR

holders, expenses of Citibank as administrator of the ADS Direct Plan and

expenses to remain in compliance with applicable laws.

Citibank has further agreed to waive other ADR program‑related expenses

for FY2026, amounting to US$11,106, which are associated with the

administration of the ADR program.

The ADSs issued under our ADR program trade on the NYSE under the

stock ticker BHP. As of 9 July 2026, there were 126,377,442 ADSs on issue

and outstanding in the BHP Group Limited ADR program.

Charges

Holders are also required to pay the following charges in connection

with depositing of ordinary shares and surrendering ADSs for cancellation

and for the purpose of withdrawing deposited securities: taxes and other

governmental charges, registration fees, transmission and delivery expenses,

expenses and charges incurred by the depositary in the conversion of foreign

currency, fees and expenses of the depositary in connection with compliance

with exchange control regulations and other regulatory requirements and fees

and expenses incurred by the depositary or other nominee in connection with

servicing or delivery of deposit securities.

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Additional Information

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 6

We employ a number of measures designed to protect against, detect and

respond to cyber threats, events or attacks, including BHP’s mandatory

minimum performance requirements for technology and cybersecurity,

cybersecurity performance requirements for suppliers and cybersecurity

resilience programs. In addition, cybersecurity standards, cybersecurity

risk and control guidance, security awareness programs and training

to build capability, security assessments and continuous monitoring,

restricted physical access to hardware and crisis management plans

(in collaboration with Crisis Management Team) are also in place to

manage cybersecurity.

We utilise dedicated internal and external cybersecurity personnel to

focus on assessing, detecting, identifying, managing, preventing and

responding to cyber threats, events and attacks. We have a dedicated

global cybersecurity team, which has been in place since 2016 and has

24/7 monitoring and response capability that leverages core in‑house

capability and expert external service providers. Our assets, functions

and projects are responsible for managing localised or project‑specific

exposure to technology and cyber risks, including risks associated with

business‑critical technology systems, with guidance provided by our

cybersecurity team. BHP does not manage that exposure for non‑operated

assets, which is the responsibility of the operator of those assets, but it

may be exposed to financial, legal and reputational risks as result of its

economic interest in the asset. Enterprise‑level risks that are specific to

technology, such as those that pose a greater threat to our wider business

and strategic opportunities, are managed by our global Technology team

and other relevant stakeholders. To monitor and manage the cybersecurity

risk exposure, we also monitor new methodologies and leverage emerging

technologies, support and input from strategic cybersecurity partners,

utilising threat intelligence capabilities and conducting resilience exercises

to uplift our response in the instance of a cyber incident.

We regularly evaluate and assess the threat landscape, including the

emergence of AI‑related threats, and our security controls, including

through audits and assessments, regular network and endpoint monitoring,

vulnerability testing, penetration testing and tabletop exercises that

include members of BHP’s management team. To assess the design and

effectiveness of our cybersecurity controls, we engage with assessors,

consultants, auditors or other expert third parties, including through

independent 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 6

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 Corporate Governance

Statement 5 and the Corporate Governance Statement 9.1

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 above.

Our VP Technology Cybersecurity & Architecture leads the BHP

cybersecurity team involved in monitoring and managing our cybersecurity

threat risk and assurance process. That team includes personnel with

significant information technology experience. Our current VP has more

than 27 years of experience in the information technology and information

security field, including serving as chief information security officer (CISO)

and deputy CISO at other large companies. Additionally, our VP holds

a number of qualified technical expert certifications, including Certified

Information Systems Security Professional (CISSP) since 2001 and

various cybersecurity‑related technical certifications, in addition to Master

in Information Technology (specialising in Information Security) and Master

in Business Administration degrees, and is active in various cybersecurity

industry collaboration groups internationally.

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. In such cases, we obtain the right to access the land and

extract the product by entering into licences or leases with the government

that owns the mineral deposit. We also rely on governments to grant the

rights necessary to transport and treat the extracted material to prepare

it for sale. The terms of the lease or licence, including the time period of

the lease or licence, vary depending on the laws and regulations of the

relevant jurisdiction or terms negotiated with the relevant government.

In some jurisdictions in which we operate, regulatory regimes also

prescribe processes for engagement and negotiation with Indigenous

peoples with respect to traditional land and heritage rights.

Generally, we own the product we extract and we are required to pay

royalties or other taxes to the government. In Australia and Chile, reforms

to mining royalty laws have been adopted in recent years. For example, in

September 2024, the Queensland Government passed legislation which

operates in principle to prevent future governments from reversing the

current progressive system of coal royalties (which results in higher royalty

rates as the price of coal passes certain monetary thresholds) without

parliamentary approval, while in Chile, new mining royalties took effect

from 1 January 2024, subject to tax stability agreements.

In most instances, the rights to explore for minerals are granted to us

by the government that owns the natural resources we wish to explore.

Usually, the right to explore carries with it the obligation to spend a

defined amount of money on the exploration, or to undertake particular

exploration activities.

Environmental protection, mine closure, land rehabilitation, cultural heritage

and occupational health and safety are principally regulated by governments

and to a lesser degree, if applicable, by conditions under leases or licences.

These obligations often require us to make substantial expenditures and

incur other costs to minimise or remediate the environmental impact of our

assets and activities, to meet closure and land rehabilitation obligations and

to ensure the safety and/or wellbeing of our employees and contractors and

avoid adverse impacts to the safety and/or wellbeing of the communities

where we operate. Moreover, changes to these obligations, whether as a

result of change in law, regulation or otherwise, may affect our ability to

develop, expand or operate our assets as expected.

In many of the jurisdictions where we or our suppliers or customers

operate, legislation and regulations have been enacted in response to

the potential impacts of climate change and to implement international

environmental commitments. For example, as a result of the Paris

Agreement a number of governments, including Australia, Chile and

Canada, have submitted Nationally Determined Contributions to reduce

national greenhouse gas (GHG) emissions.

9 Shareholder information continued

236 BHP Annual Report 2026

Further, the governments in a number of regions where we or our suppliers

or customers operate have advanced targets and goals to reduce GHG

emissions. In Australia, the National Greenhouse and Energy Reporting

Act 2007 (Cth) imposes requirements for corporations meeting a certain

threshold to register and report company information about GHG

emissions and energy production and consumption as part of a single,

national reporting scheme and establishes the Safeguard Mechanism

to keep certain GHG emissions at or below legislated limits, known as

baselines, for Australia’s largest industrial facilities. Under the Safeguard

Mechanism, administered by the Clean Energy Regulator, facility baselines

for Scope 1 GHG emissions at Australia’s largest industrial facilities are

required to decrease in accordance with a set decline rate, with a view

to achieving consistent and gradual GHG emission reductions on a

trajectory consistent with achieving Australia’s GHG emission reduction

targets of 43 per cent below 2005 levels by 2030 and net zero by 2050.

Facilities that exceed their progressively declining legislated baselines

may apply credits to meet the compliance obligations. In September 2025,

Australia submitted its latest Nationally Determined Contribution, which

sets out Australia’s target to reduce its GHG emissions by 62 to 70 percent

below 2005 levels by 2035, but post‑2030 baseline decline rates under

the Safeguard Mechanism have yet to be set. The Australian Government

has announced a review of the Safeguard Mechanism, which is due to

commence in the second half of CY2026 and conclude during CY2027.

Regulations setting emissions standards for fuels used to power vehicles

and equipment at our assets and the modes of transport used in our

supply chains can also affect, directly and indirectly, the markets for these

products, with flow‑on impacts on our costs.

A number of governments and regulators in jurisdictions relevant to BHP

have implemented or otherwise proposed disclosure rules that require or

would require enhanced climate‑related and broader sustainability‑related

disclosures. For example, in Australia, the Federal Government legislation

implementing a mandatory annual climate‑related financial disclosure

regime and associated auditing and assurance requirements was passed

into law in September 2024 and BHP’s first reporting period under this

regime commenced on 1 July 2025. There is also growing focus on

mandatory corporate due diligence and reporting on climate‑related and

broader sustainability‑related issues in the entity’s own operations and value

chain. For example, the European Union (EU) Corporate Sustainability Due

Diligence Directive will require in‑scope companies to conduct human rights

and environmental due diligence on the company’s own operations and

certain of their business partners’ chains of activities, with application timing

subject to implementation through EU Member State laws.

Our business is also subject to a number of regulations and legal

developments relating to employee relations, including industrial relations

developments in Australia and other developments described in OFR 9.4

and 9.5.

From time to time, certain trade actions, such as sanctions, tariffs and

other trade restrictions, including responses to the same, are adopted

by the United Nations (UN) Security Council and/or various governments,

including in the United Kingdom, the United States, the EU, China and

Australia against certain countries, entities or individuals, which may

restrict our ability to sell extracted minerals or other products to, or

purchase goods or services from, those countries, entities or individuals,

or otherwise affect the market for our products.

Shareholding limits

Under current Australian legislation, the payment of any dividends, interest

or other payments by BHP Group Limited to non‑resident holders of BHP

Group Limited’s shares is not restricted by exchange controls or other

limitations, except that in certain circumstances, BHP Group Limited

may be required to withhold Australian taxes.

From time to time, certain sanctions are adopted by the UN Security

Council and/or various governments, including in the United Kingdom, the

United States, the EU and Australia. Those sanctions prohibit, or in some

cases impose, certain approval and reporting requirements on transactions

involving sanctioned countries, entities and individuals and/or assets

controlled or owned by them. Certain transfers into or out of Australia

of amounts of A$10,000 or more in any currency may also be subject

to reporting requirements.

The Australian Foreign Acquisitions and Takeovers Act 1975 (the FATA)

restricts certain acquisitions of interests in securities in Australian

companies, including BHP Group Limited. Generally, under the FATA,

the prior approval of the Australian Treasurer must be obtained for

proposals by a foreign person (either alone or together with its associates)

to acquire 20 per cent or more of the voting power or issued securities

in an Australian company. Lower approval thresholds apply in certain

circumstances, including for acquisitions of interests in entities that

operate a ‘national security business’, and acquisitions of interests by

foreign government investors of voting power or issued securities in

an Australian company.

The FATA also empowers the Treasurer to make certain orders prohibiting

acquisitions by foreign persons in Australian companies, including BHP

Group Limited (and requiring divestiture if the acquisition has occurred)

where the Treasurer considers the acquisition to be contrary to national

security or the national interest.

Except for the restrictions under the FATA, there are no limitations,

either under Australian law or under the Constitution of BHP Group

Limited, on the right of non‑residents to hold or vote BHP Group Limited

ordinary shares.

Post-unification requirements under FATA

The Treasurer gave approval under the FATA for the actions taken as

part of implementation of the unification of BHP’s DLC structure on the

conditions set out below:

– BHP Group Limited remains an Australian resident company,

incorporated under the Corporations Act 2001, 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 occur in Australia.

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10 Glossary

10.1 Mining‑related terms

AIG The Australian Institute of Geoscientists.

APEGS Association of Professional Engineers

and Geoscientists of Saskatchewan.

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 Edition).

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.

Net Smelter Return (NSR) An estimate of

revenue derived from the sale of products

and concentrates following the application of

metallurgical recoveries and deducting transport

costs, treatment and refining charges, penalties

and royalties.

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.En g. Professional Engineer.

PEO Professional Engineers Ontario.

P.G eo. 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).

238 BHP Annual Report 2026

RM Registered member.

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.

SME Society for Mining, Metallurgy &

Exploration.

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

alumina

Ash inorganic material remaining

after combustion

Au gold

Cu copper

CuT total copper

CV calorific value

Fe iron

Insol. insolubles

O potassium oxide

KCl potassium chloride

LOI loss on ignition

LPL Lower Patience Lake

(stratigraphic unit)

Met metallurgical coal

MgO magnesium oxide

Mo molybdenum

NaCl halite

Ni nickel

NSR Net smelter return

P phosphorous

Pc phosphorous in concentrate

S sulphur

SCu soluble copper

SiO

silica

Th thermal coal

uranium oxide

VM volatile matter

Zn zinc

10.3 Units of measure

% percentage or per cent

Bt billion tonnes

‑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

kt kilotonnes

ktoz thousand troy ounces

ktpa kilotonnes per annum

ktpd kilotonnes per day

kV kilovolt

kWh kilowatt hour

lb pound

m metre

cubic metre

ML megalitre

Mt million tonnes

MtCO

‑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

‑e tonnes of carbon dioxide equivalent

t/h tonnes per hour

toz troy ounce is a unit of measure

of precious metals

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.

AI Artificial intelligence.

AASB The Australian Accounting Standards

Board, which issues accounting standards and

sustainability reporting standards.

AASB S2 The Australian Sustainability

Reporting Standard AASB S2: Climate-related

Disclosures issued by the Australian Accounting

Standards Board.

Activity data (in relation to greenhouse

gas (GHG) emissions data) A quantitative

measure of a level of activity that results in

GHG emissions. Activity data is multiplied by

an energy and/or emissions factor to derive

the energy consumption and GHG emissions

associated with a process or an operation.

Examples of activity data include kilowatt‑hours

of electricity used, quantity of fuel used, output

of a process, hours equipment is operated,

distance travelled and floor area of a building.

Adjusted (in respect to GHG emissions

data) Adjusted means calculated to present

the GHG emissions data for a time period

(such as a baseline year or reporting year) as

though relevant changes took effect from the

start of that period even though they occurred

during or not until after the end of the period.

Unless expressly stated otherwise, relevant

changes are all acquisitions, divestments and/

or GHG emission calculation methodology

changes. For example, when we adjust the

FY2020 baseline year for our operational

GHG emission target and goal to compare our

adjusted FY2026 performance data against it:

– 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 2026; and

– the FY2026 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.

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ADS (American Depositary Share) A share

issued under a deposit agreement that has

been created to permit US‑resident investors

to hold shares in non‑US companies and, if

listed, trade them on the stock exchanges in the

United States. ADSs are evidenced by American

Depositary Receipts, or ADRs, which are the

instruments that, if listed, trade on a stock

exchange in the United States.

Areas of highest ecosystem value Natural

habitat and critical habitat. Critical habitat

includes habitat supporting, or with the potential

to support, threatened species and ecosystems,

endemic or restricted‑range species, and/or

migratory or congregatory species.

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.

Australian Corporations Act 2001 Corporations

Act 2001 (Cth).

Baseline/baseline year (in relation to GHG

emissions targets and goals) A year used as

a basis to compare and measure performance

of future years.

BHP BHP Group Limited and its subsidiaries.

BHP Group Limited BHP Group Limited.

BHP Group Limited share A fully paid ordinary

share in the capital of BHP Group Limited.

BHP Group Limited shareholders The holders

of BHP Group Limited shares.

BHP Group Plc BHP Group Plc (now known

as BHP Group (UK) Ltd) and its subsidiaries.

BHP Group Plc share A fully paid ordinary share

in the capital of BHP Group Plc (now known as

BHP Group (UK) Ltd).

BHP Group Plc shareholders The holders of

BHP Group Plc shares (prior to unification of

the DLC structure).

BHP Group (UK) Ltd BHP Group (UK) Ltd

(formerly known as BHP Group Plc) and

its subsidiaries.

BHP shareholders In the context of BHP’s

financial results, BHP shareholders refers to

the holders of shares in BHP Group Limited.

Biofuel A fuel, usually a liquid fuel, produced

from renewable biological feedstock sources,

such as plant material, vegetation or

agricultural waste.

Biodiversity The variability among living

organisms from all sources, including inter alia,

terrestrial, marine and other aquatic ecosystems

and the ecological complexes of which they

are part; this includes diversity within species,

between species and of ecosystems. (Convention

on Biological Diversity (1992) Article 2).

BMA The BHP Mitsubishi Alliance.

Board The Board of Directors of BHP.

BOS BHP Operating System.

CAF BHP’s Capital Allocation Framework.

Carbon credit The reduction or removal of

carbon dioxide, or the equivalent amount of a

different GHG, using a process that measures,

tracks and captures GHGs to compensate for

an entity’s GHG emissions emitted elsewhere.

Credits may be generated through projects in

which GHG emissions are avoided, reduced or

removed from the atmosphere or permanently

stored (sequestration). Carbon credits are

generally created and independently verified in

accordance with either a voluntary program or

under a regulatory program. The purchaser of a

carbon credit can ‘retire’ or ‘surrender’ it to claim

the underlying reduction towards their own GHG

emissions reduction targets or goals or to meet

legal obligations, which is also referred to as

carbon offsetting or offsetting.

We define regulatory carbon credits to mean

carbon credits used to offset GHG emissions

for regulatory compliance in our operational

locations (such as the Safeguard Mechanism

in Australia).

We define voluntary carbon credits to mean

carbon credits generated through projects that

reduce or remove GHG emissions outside

the scope of regulatory compliance (including

Australian Carbon Credit Units not used for

regulatory compliance).

Carbon dioxide equivalent The universal unit

of measurement to indicate the global warming

potential (GWP) of each GHG, expressed

in terms of the GWP of one unit of carbon

dioxide. It is used to evaluate releasing (or

avoiding releasing) different GHGs against

a common basis.

Carbon neutral Making or resulting in no net

release of GHG emissions into the atmosphere,

including as a result of offsetting. Carbon neutral

includes all those GHG emissions as defined for

BHP reporting purposes.

CBWT (context‑based water targets)

Context‑based water targets aim to address

the water challenges shared by BHP and other

stakeholders in the regions where we operate.

These targets are informed by WRSAs, and

our own internal catchment assessment of

water‑related risks and opportunities.

CMD Coal mine dust.

CEO Water Mandate The CEO Water

Mandate is a UN Global Compact initiative

that mobilises business leaders on water,

sanitation and the Sustainable Development

Goals. Companies that endorse the CEO Water

Mandate commit to continuous progress against

six core elements of their water stewardship

practice and in so doing, better understand

and manage their own water risks. The six core

areas are: Direct Operations, Supply Chain &

Watershed Management, Collective Action,

Public Policy, Community Engagement and

Transparency. BHP is an active signatory of

the Mandate.

Commercial Our Commercial function seeks

to maximise commercial and social value while

minimising costs across the end‑to‑end supply

chain. The function is organised around core

activities in our value chain.

Community complaint A verbal or written

notification made to BHP by a member of the

community relating to an alleged adverse impact

on the community arising from BHP’s activities

and/or employee or contractor behaviour in part

or in whole.

Community concern Broadly classified as

any communication to BHP by a member of

the community where an issue has not yet

necessarily occurred but has the potential/

likelihood to escalate into a formal complaint.

Company BHP Group Limited and

its subsidiaries.

Continuing operations Assets/operations/

entities that are owned and/or operated by BHP,

excluding assets/operations/entities classified as

Discontinued operations.

CTAP 2024 BHP’s second Climate Transition

Action Plan, published on 27 August 2024.

Discontinued operations Assets/operations/

entities that have either been disposed of or are

classified as held for sale in accordance with

IFRS 5/AASB 5 Non‑current Assets Held for

Sale and Discontinued operations.

DLC (Dual Listed Company) BHP’s Dual Listed

Company structure had two parent companies

(BHP Group Limited and BHP Group Plc (now

known as BHP Group (UK) Ltd)) operating

as a single economic entity as a result of the

DLC merger. The DLC structure was unified

on 31 January 2022.

DLC merger The Dual Listed Company merger

between BHP Group Limited and BHP Group

Plc (now known as BHP Group (UK) Ltd) on

29 June 2001.

Ecosystem A dynamic complex of plant,

animal and microorganism communities and

the non‑living environment, interacting as

a functional unit. (Convention on Biological

Diversity (1992) Article 2; Intergovernmental

Science‑Policy Platform on Biodiversity and

Ecosystem Services (2019) Global Assessment

Report on Biodiversity and Ecosystem Services).

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

‑e

emitted per GJ of fuel consumed, kg CO

‑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.

10 Glossary continued

240 BHP Annual Report 2026

Equity share approach (in relation to GHG

emissions data) A consolidation approach

whereby a company accounts for GHG

emissions from operations according to its share

of equity in the operation. The equity share

reflects economic interest, which is the extent of

rights a company has to the risks and rewards

flowing from an operation. Also see the definition

for Operational control approach.

ESG Environmental, social and governance.

Executive KMP (Key Management Personnel)

Executive Key Management Personnel includes

the Executive Director (our CEO), the Chief

Financial Officer, the President Australia and

the President Americas. It does not include the

Non‑executive Directors (on our Board).

Fugitive methane emissions Methane emissions

that are not physically controlled but result

from the intentional or unintentional releases

of methane from coal mining.

Functions Functions operate along global

reporting lines to provide support to all areas

of the organisation. Functions have specific

accountabilities and deep expertise in areas

such as finance, legal, governance, technology,

human resources, corporate affairs, health,

safety and community.

Future‑facing commodity A commodity that

BHP determines to be positively leveraged in the

energy transition and broader global response

to climate change, with potential for decades‑

long demand growth to support emerging global

trends like electrification and decarbonisation.

Currently, the major commodities in the BHP

portfolio that fall within this criterion include

copper and potash.

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

), methane

(CH

), nitrous oxide (N

O), hydrofluorocarbons

(HFCs), perfluorocarbons (PFCs) and sulphur

hexafluoride (SF

). Nitrogen trifluoride (NF

)

GHG emissions are currently not relevant for

BHP reporting purposes. GHG emissions in this

Annual Report are presented in tonnes CO

‑e or

its multiples, unless otherwise stated.

GISTM Global Industry Standard on

Tailings Management.

Goal (for BHP with respect to GHG emissions)

An ambition to seek an outcome for which there

is no current pathway(s), but for which efforts are

being made or will be pursued towards addressing

that challenge, subject to certain assumptions or

conditions. Such efforts may include the resolution

of existing potential or emerging pathways.

Goals of the Paris Agreement The central

objective of the Paris Agreement is its long‑term

temperature goal to hold the global average

temperature increase to well below 2°C above

pre‑industrial levels and pursue efforts to

limit the temperature increase to 1.5°C above

pre‑industrial levels.

Green ammonia Ammonia produced by

synthetically combining nitrogen with low to zero

GHG emission hydrogen (ammonia synthesis)

using renewable or other low to zero GHG

emissions electricity.

Grievance An event or community complaint

relating to an adverse impact/event that has

escalated to the point where a third‑party

intervention or adjudication is required to

resolve it.

GRI (Global Reporting Initiative) The Global

Reporting Initiative works with businesses and

governments to understand and communicate

their impact on critical sustainability issues.

Groundwater Water beneath the earth’s surface,

including beneath the seabed, which fills pores

or cracks between porous media, such as soil,

rock, coal and sand, often forming aquifers.

Groundwater may be abstracted for use from

bore fields or accessed via dewatering to

access ore. For accounting purposes, water

that is entrained in the ore can be considered

as groundwater.

Group BHP Group Limited and its subsidiaries.

GWP (Global Warming Potential(s)) A factor

describing the radiative forcing impact (degree

of harm to the atmosphere) of one unit of a given

GHG relative to one unit of CO

. 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.

ICMM Nature Position Statement This position

statement sets out ICMM members’ approach

to contributing to a nature‑positive future guided

by the Kunming‑Montreal Global Biodiversity

Framework (GBF) 2030 targets and ICMM’s

existing commitments in relation to Indigenous

peoples, climate change, water and respecting

human rights in accordance with the United

Nations Guiding Principles on Business and

Human Rights (UNGPs).

IFRS (International Financial Reporting

Standards) Accounting standards as issued by

the International Accounting Standards Board.

Indigenous Peoples Policy Statement

Articulates BHP’s approach to engaging with

and supporting Indigenous peoples.

IPCC (Intergovernmental Panel on Climate

Change) The Intergovernmental Panel on

Climate Change is the United Nations body for

assessing the science related to climate change.

IUCN (International Union for Conservation

of Nature) The International Union for

Conservation of Nature is an international

organisation working in the field of nature

conservation and sustainable use of

natural resources.

KMP (Key Management Personnel) Key

Management Personnel includes the roles

which have the authority and responsibility for

planning, directing and controlling the activities

of BHP. These are Non‑executive Directors, the

CEO, the Chief Financial Officer, the President

Australia, and the President Americas.

KPI (key performance indicator) Used to

measure the performance of the Group,

individual businesses and executives in any

one year.

Kunming‑Montreal Global Biodiversity

Framework The Kunming‑Montreal Global

Biodiversity Framework is a set of targets and

goals adopted by the 15th Conference of Parties

(COP15) to the United Nations Convention on

Biological Diversity (CBD) in December 2022

that aims to address the loss of biodiversity and

restore natural ecosystems by 2030.

Land disturbed Land that is physically impacted

by the activities of the business that substantially

alters the pre‑existing habitats and land cover.

Land owned, leased or managed Includes

mining tenements, exploration leases, quarries,

ports, load out facilities, desalination plants, wind

farms, leasehold land, freehold land, agricultural

land, offshore operations, easements, areas

where BHP holds sub‑surface rights only, areas

managed by BHP through agreements with third

parties and areas managed for conservation‑

regulatory (e.g. offset areas). This includes

greenfield exploration licences (or equivalent

tenements), which are outside the area of

influence of our existing mine operations.

Land under rehabilitation Land where necessary

treatment has been undertaken to achieve the

pre‑disturbance land use or an alternate land

use developed in consultation with stakeholders,

and where no further land disturbance is

planned other than maintenance activities.

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

‑e/joule) on a well‑to‑

wake basis compared to conventional fossil fuels

used in shipping.

Lower GHG emission(s) (other than shipping

fuels) Capable of lower absolute GHG

emissions or GHG emissions intensity than the

current state or the conventional or incumbent

technology, as applicable.

Low to zero GHG emission(s) (for energy products

other than shipping fuels)

Capable of between 90 per cent to 100 per

cent lower GHG emissions intensity during

generation and/or combustion (as applicable)

compared to conventional fossil fuel generation

and/or combustion.

Low to zero GHG emission(s) (for

shipping) Capable of between 81 per cent to 100

per cent lower GHG emissions intensity (gCO

‑e/

joule) on a well‑to‑wake basis compared to

conventional fossil fuels used in shipping.

Market‑based method (in relation to reporting

GHG emissions data) Scope 2 emissions based

on the generator(s) supplying the electricity (and

therefore the generation fuel mix from which

the reporter contractually purchases electricity

and/or is directly provided electricity via a direct

line transfer).

MFL (Maximum Foreseeable Loss) The MFL

is the estimated impact to BHP if a risk were

to materialise in a worst‑case scenario without

regard to probability and assuming all controls

are ineffective.

Nature The natural world, with an emphasis

on the diversity of living organisms (including

people) and their interactions among themselves

and with their environment. (TNFD Glossary of

Key Terms Version 6.0).

241

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

Nature‑positive A global societal goal defined

as ‘halt and reverse nature loss by 2030 on a

2020 baseline, and achieve full recovery by

2050’ (Taskforce on Nature‑related Financial

Disclosures (TNFD) Glossary of Key Terms

Version 6.0).

Net zero (for a BHP GHG emissions target,

goal or pathway, or similar) Net zero includes

the use of carbon credits as governed by BHP’s

approach to carbon offsetting, available at

bhp.com/climate.

Net zero (for industry sectors, the global

economy, transition or future, or similar) Net zero

refers to a state in which the GHGs (as defined

in this Glossary) going into the atmosphere are

balanced by removal out of the atmosphere.

Near zero emissions (for steelmaking or

ironmaking) 0.40 tonnes of CO

‑e per tonne of

crude steel for 100 per cent ore‑based production

(no scrap), as defined by the International Energy

Agency (IEA) and implemented in Responsible

Steel International Standard V2.0 (‘near zero’

performance level 4 threshold). IEA (2022),

Achieving Net Zero Heavy Industry Sectors

in G7 Members, IEA, Paris, License: CC BY

4.0, which also describes the boundary for the

emission intensity calculation (including in relation

to upstream emissions).

NGER (National Greenhouse and Energy

Reporting Scheme) The Australian National

Greenhouse and Energy Reporting scheme

is a single national framework for reporting

and disseminating company information about

GHG emissions, energy production, energy

consumption and other information specified

under the National Greenhouse and Energy

Reporting Act 2007.

NOJV (non‑operated asset/non‑operated

joint venture) Non‑operated assets/

non‑operated joint ventures are our interests

in assets that are owned as a joint venture

but not operated by BHP. References in this

Annual Report to a ‘joint venture’ are used for

convenience to collectively describe assets that

are not wholly owned by BHP. Such references

are not intended to characterise the legal

relationship between the owners of the asset.

NSWEC New South Wales Energy Coal.

Occupational illness An illness that occurs as

a consequence of work‑related activities or

exposure. It includes acute or chronic illnesses

or diseases, which may be caused by inhalation,

absorption, ingestion or direct contact.

OECD Organisation for Economic Co‑operation

and Development.

OELs (occupational exposure limits) An OEL is

an upper limit on the acceptable concentration

of a hazardous substance in workplace air

for a particular material or class of materials.

OELs may also be set for exposure to physical

agents, such as noise, vibration or radiation.

Offsetting (in relation to GHG emissions) The

use of carbon credits. Refer to the definition of

carbon credit.

OFR BHP’s Operating and Financial Review for

the year ended 30 June 2026.

Onshore US BHP’s Petroleum asset (divested

in the year ended 30 June 2019) in four US

shale areas (Eagle Ford, Permian, Haynesville

and Fayetteville), where we produced oil,

condensate, gas and natural gas liquids.

Operated assets Operated assets are our

assets (including those under exploration,

projects in development or execution phases,

sites and operations that are closed or in

the closure phase) that are wholly owned

and operated by BHP or that are owned as a

BHP‑operated joint venture. References in this

Annual Report to a ‘joint venture’ are used for

convenience to collectively describe assets that

are not wholly owned by BHP. Such references

are not intended to characterise the legal

relationship between the owners of the asset.

Operational control approach (in relation to

GHG emissions data) A consolidation approach

whereby a company accounts for 100 per cent

of the GHG emissions over which it has

operational control (a company is considered to

have operational control over an operation if it

or one of its subsidiaries has the full authority to

introduce and implement its operating policies

at the operation). It does not account for GHG

emissions from operations in which it owns an

interest but does not have operational control.

Also see the definition for Equity share approach.

Operational GHG emissions Our operational

GHG emissions are the Scope 1 emissions and

Scope 2 emissions from our operated assets.

Operations Open‑cut mines, underground

mines and processing facilities, which in the

case of BHP are within our operated assets.

OZ Minerals Brazil assets Former OZ Minerals

Brazil operations, projects and exploration

tenements located in Brazil and acquired as part

of the acquisition of OZ Minerals completed on

2 May 2023.

Paris Agreement The Paris Agreement is an

agreement between countries party to the United

Nations Framework Convention on Climate

Change to strengthen efforts to combat climate

change and adapt to its effects, with enhanced

support to assist developing countries to do so.

Partner, partnership, to partner (or similar) A

reference used for convenience to describe

relationships intended to be collaborative and/

or mutually beneficial. Such references are not

intended to characterise the legal relationship

between the parties, unless stated otherwise.

PEELP Argentina’s Long‑Term Strategic Export

Projects designation.

Petroleum (asset group) A group of oil and

gas assets formerly operated by BHP before

its merger with Woodside in June 2022.

Petroleum’s core production operations were

located in the US Gulf of Mexico, Australia and

Trinidad and Tobago. Petroleum produced crude

oil and condensate, gas and natural gas liquids.

Physical climate‑related risk Acute risks that are

event‑driven, including increased severity and/

or frequency of extreme climatic events and

chronic risks resulting from longer‑term changes

in climate patterns.

PPA (power purchase agreement) An agreement

between a vendor and purchaser for the sale

of electricity, which may be wholly or partially

renewable or other low to zero GHG emissions

energy and either physically supplied directly to the

purchaser or for supply from an electricity grid.

PPE (personal protective equipment) PPE

means anything used or worn to minimise risk

to a worker’s health and safety, including air

supplied respiratory equipment.

PoC Proof‑of‑concept.

Record date (in relation to dividends) The date,

determined by a company’s board of directors,

by when an investor must be recorded as

an owner of shares in order to qualify for a

forthcoming dividend.

Reference year (for a BHP GHG emissions target

or goal) A year used to track progress towards

GHG emissions targets and goals. It is not a

baseline for GHG emissions targets and goals.

RIGI Argentina’s incentive regime for

large investments.

Safeguard Mechanism A mechanism established

in Australia under the National Greenhouse and

Energy Reporting Act 2007 to keep certain GHG

emissions at or below legislated limits, known

as baselines, for Australia’s largest industrial

facilities. Reforms to the Safeguard Mechanism

that applied from 1 July 2023 are intended to

reduce Scope 1 emissions at Australia’s largest

industrial facilities on a trajectory consistent with

achieving Australia’s GHG emission reduction

targets of 43 per cent below 2005 levels by 2030

and net zero by 2050. Facilities that exceed their

progressively declining legislated baselines may

apply Australian Carbon Credit Units to meet the

compliance obligations.

SASB (Sustainability Accounting Standards

Board) The Sustainability Accounting Standards

Board is a non‑profit organisation that develops

standards focused on the financial impacts

of sustainability.

Scope 1 emissions (GHG emissions) Scope 1

emissions are direct GHG emissions from

operations that are owned or controlled by the

reporting company. For BHP, these are primarily

GHG emissions from fuel consumed by haul

trucks at our operated assets, as well as fugitive

methane emissions from coal production at our

operated assets.

Scope 2 emissions (GHG emissions) Scope 2

emissions are indirect GHG emissions from the

generation of purchased or acquired electricity,

steam, heat or cooling that is consumed by

operations that are owned or controlled by the

reporting company. BHP’s Scope 2 emissions

have been calculated using the market‑based

method and the location‑based method,

as specified.

Scope 3 emissions (GHG emissions) Scope 3

emissions are all other indirect GHG emissions

(not included in Scope 2 emissions) that occur in

the reporting company’s value chain. For BHP,

these are primarily emissions resulting from our

customers using and processing the commodities

we sell, as well as upstream emissions

associated with the extraction, production and

transportation of the goods, services, fuels and

energy we purchase for use at our operations;

emissions resulting from the transportation and

distribution of our products; and operational

emissions (on an equity basis) from our non‑

operated joint ventures.

SEC (United States Securities and Exchange

Commission) The US regulatory commission that

aims to protect investors, maintain fair, orderly and

efficient markets and facilitate capital formation.

Shareplus BHP’s all‑employee share

purchase plan.

10 Glossary continued

242 BHP Annual Report 2026

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.

Structural GHG emissions abatement Actions

taken at a source of GHG emissions to avoid

generating GHG emissions. For BHP, this

includes contractual power purchase agreements.

Surface water All water naturally open to the

atmosphere, including rivers, lakes and creeks

and external water dams but excluding water from

oceans, seas and estuaries (e.g. precipitation and

runoff, including snow and hail).

Sustainability (including sustainable and

sustainably) We describe our approach

to sustainability and its governance in this

Annual Report, including OFR 1 and OFR

9. Our references to sustainability (including

sustainable and sustainably) in this Annual

Report and our other disclosures do not mean

we will not have any adverse impact on the

economy, the environment or society, and

do not imply we will necessarily give primacy

to consideration of or achieve any absolute

outcome in relation to any one economic,

environmental or social issue (such as zero GHG

emissions or other environmental effects).

Sustainability Report BHP’s report of that title

containing our climate‑related disclosures in

accordance with the Australian Corporations

Act 2001 and AASB S2 for the year ended

30 June 2026, which is contained within this

Annual Report.

Target (for BHP with respect to GHG

emissions) An intended outcome in relation to

which we have identified one or more pathways

for delivery of that outcome, subject to certain

assumptions or conditions.

TCFD (Task Force on Climate‑related Financial

Disclosures) The task force created by the

Financial Stability Board to improve and

increase reporting of climate‑related financial

information, which released recommendations

designed to help companies provide better

information to investors and others about how

they think about and assess climate‑related

risks and opportunities. The TCFD has now

fulfilled its remit and disbanded and the Financial

Stability Board has asked the IFRS Foundation

to take over the monitoring of the progress of

companies’ climate‑related disclosures.

TNFD (Taskforce on Nature‑related Financial

Disclosures) The Taskforce on Nature‑related

Financial Disclosures is a global, market‑led

initiative that has developed a set of disclosure

recommendations and guidance for

organisations to assess, report and act on

evolving nature‑related dependencies, impacts,

risks and opportunities.

Transition risk (climate‑related) Risks that arise

from existing and emerging policy, regulatory,

legal, technological, market and other societal

responses to the challenges posed by climate

change and the transition to a net zero

global economy.

TRIF (total recordable injury frequency) The

sum of (fatalities + lost‑time cases + restricted

work cases + medical treatment cases) x

1,000,000 ÷ actual hours worked. Stated in units

of per million hours worked. BHP adopts the US

Government Occupational Safety and Health

Administration guidelines for the recording and

reporting of occupational injury and illnesses.

TRIF statistics exclude non‑operated assets.

TSR (total shareholder return) Measures the

return delivered to shareholders over a certain

period through the movements in share price

and dividends paid (which are assumed to be

reinvested). It is the measure used to compare

BHP’s performance to that of other relevant

companies under the Long‑Term Incentive Plan.

Type 1 (in relation to water quality) Water of

high quality that would require minimal (if any)

treatment to meet drinking water standards.

This water is considered high quality/high

grade in the ICMM ‘Good Practice’ Guide

(2nd Edition) (2021).

Type 2 (in relation to water quality) Water of

medium quality that would require moderate

treatment to meet drinking water standards (it

may have a high salinity threshold of no higher

than 5,000 milligrams per litre total dissolved

solids and other individual constituents).

This water is considered high quality/high

grade in the ICMM ‘Good Practice’ Guide

(2nd Edition) (2021).

Type 3 (in relation to water quality) Water of low

quality that would require significant treatment

to meet drinking water standards. It may have

individual constituents with high values of total

dissolved solids, elevated levels of metals or

extreme levels of pH. This type of water also

includes seawater. This water is considered low

quality/low grade in the ICMM ‘Good Practice’

Guide (2nd Edition) (2021).

Unadjusted (in respect to GHG emissions data)

Unadjusted means calculated to present the

GHG emissions data for a reporting year so that

any relevant changes that occurred during the

year (including acquisitions, divestments and/

or methodology changes) are applied only from

the date they took effect. Also see the definition

for Adjusted.

Underlying attributable profit Profit/(loss) after

taxation attributable to BHP shareholders

excluding any exceptional items attributable

to BHP shareholders as described in Financial

Statements note 3 ‘Exceptional items’. For more

information refer to OFR 8.

Underlying EBIT Earnings before net finance

costs, taxation expense, Discontinued

operations and any exceptional items.

Underlying EBIT includes BHP’s share of profit/

(loss) from investments accounted for using the

equity method including net finance costs and

taxation expense/(benefit). For more information

refer to OFR 8.

Underlying EBITDA Earnings before net

finance costs, depreciation, amortisation and

impairments, taxation expense, Discontinued

operations and any exceptional items.

Underlying EBITDA includes BHP’s share

of profit/(loss) from investments accounted

for using the equity method including net

finance costs, depreciation, amortisation and

impairments and taxation expense/(benefit).

For more information refer to OFR 8.

Unification The unification of BHP’s corporate

structure under BHP Group Limited as effected

on 31 January 2022.

Unit costs One of the financial measures BHP

uses to monitor the performance of individual

assets. Unit costs are calculated as ratio of

net costs of the assets to the equity share of

sales tonnage. Net costs is defined as revenue

less Underlying EBITDA and excluding freight,

and other costs, depending on the nature of

each asset. For information on the method of

calculation of the unit costs refer to OFR 8.1.

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.

Well‑to‑wake basis Inclusive of the GHG

emissions across the entire process of fuel

production, delivery and use onboard vessels.

WRSA (Water Resource Situational Analysis)

A Water Resource Situational Analysis is an

independent catchment‑scale assessment of

shared water challenges in the regions where

BHP operates. Each WRSA is prepared by

a credible third party using publicly available

information and stakeholder input to describe

the sustainability of water resources, governance

arrangements, and the social, cultural,

environmental and economic values of water

within a defined catchment. WRSAs identify

shared water challenges, their root causes,

and opportunities for collective action. They are

public‑facing documents and are enabled by,

but undertaken independently from, BHP.

243

Operating and Financial Review Financial StatementsGovernanceSustainability Report

Additional Information

Corporate directory

BHP Registered Office

BHP Group Limited

Australia

Level 18

171 Collins Street

Melbourne VIC 3000

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

Commercial Office

Singapore

10 Marina Boulevard, #18‑01

Marina Bay Financial Centre, Tower 2

Singapore 018983

Telephone: +65 6421 6900

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, Australia

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, United Kingdom

Postal address

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

159 Hurstmere Road

Takapuna Auckland 0622

New Zealand

Postal address – Private Bag 92119

Victoria Street West

Auckland 1142

New Zealand

Telephone: +64 9 488 8700

Online enquiries: www.computershare.com/nz

United States

Computershare Trust Company, N.A.

150 Royall Street

Canton MA, 02021

United States

Postal address – PO Box 43006

Providence RI 02940‑3006

Telephone: +1 781 575 2000

(toll free within US)

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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244 BHP Annual Report 2026

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