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Profit slump hits big Aussie miner

Profits slumped at Australia’s largest company across FY2023. Picture: William West / AFP)
Profits slumped at Australia’s largest company across FY2023. Picture: William West / AFP)

Profits have slumped at Australia’s largest company as commodity prices fall away from the heady heights of 2022 and tax and inflation burdens rise.

BHP, a $220bn behemoth, has reported a 17 per cent fall in revenue from $US65.1bn ($A101bn) in FY22 to US$53.8bn ($A83.8bn) for the year ending June 30, 2023, with underlying profits slumping 37 per cent from $US21.3bn ($A33.2bn) in FY22 to $US13.4bn ($A20.9bn).

The company credits inflation, falls in prices across major commodities and rising tax burdens for the profit dip.

For FY2022, BHP booked an average realised iron ore price of $US113 per wmt, but Tuesday’s results revealed an average realised price of $US92.54/wmt across FY23.


Average realised metallurgical coal prices fell 21 per cent from $US347 per tonne in 2022 to $US271.05.

Mining Congress
BMA asset president Mauro Neves, BHP chief executive Mike Henry and Australia BHP president Geraldine Slattery at the World Mining Congress in Brisbane in 2023. Picture: Steve Pohlner

Realised copper prices, meanwhile, fell from $US4.16/lb to $US3.65/lb.

The company said it experienced an effective inflation rate of about 10 per cent across the year, stressing labour, diesel and electricity costs.

BHP also stated it paid out an additional US$700m ($A1.1bn) in royalties to the Queensland government across FY2023 following the introduction of the new royalty regimen in June 2022.

“Our operating costs include $US3.8bn (A$5.9bn) of revenue or production-based royalties,” the company stated.

“This includes $US1.7bn ($A2.7bn) of royalties incurred by BHP in respect of our Queensland operations, which, combined with income taxes, equates to an adjusted effective tax rate including royalties of 55 per cent,” the company stated.