BHP readies £5.3bn for exceptional items in H1

15th Feb 2024 09:19

(Sharecast News) - Mining group BHP said on Thursday that it will be hit with two first-half exceptional items totalling £5.3bn.

BHP said the first hit was a £2.8bn charge against the carrying value of its Western Australia Nickel arm, while £2.5bn was linked to the failure of the Samarco dam in Brazil.

At the end of January, the Federal Court of Brazil found that BHP as well as its partners Samarco, Vale and BHP Brasil, were "jointly and severally liable to pay collective moral damages" of £7.8bn.

However, the parties involved disputed the ruling and filed a clarification motion to correct "certain factual inaccuracies in the decision", including the calculation of damages. A decision on the motion remains pending.

BHP stated it had opted to raise its provision against the disaster following the consideration of "additional information" and the judicial decision "regarding collective moral damages".

As of 0915 GMT, BHP shares were down 0.86% at 2,350.50p.

Reporting by Iain Gilbert at Sharecast.com