Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

BHP readies £5.3bn for exceptional items in H1

(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

Share this article

Related Sharecast Articles

Billionaire Issa nearing deal to sell Asda stake to TDR Capital - report
(Sharecast News) - US private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
Billionaire Issa nearing deal to sell Asda stake to TDR Capital
(Sharecast News) - Private equity firm TDR Capital is reportedly closing in on a deal to buy petrol station billionaire Zuber Issa's stake in supermarket chain Asda.
DS Smith tumbles as Mondi abandons pursuit
(Sharecast News) - DS Smith tanked on Friday after Mondi said it would not be making an offer for the rival packaging group, clearing the path for a takeover by International Paper.
Eqtec agrees amendment to Verde subscription
(Sharecast News) - Waste-to-energy technology developer Eqtec updated the market on the Verde Corporation subscription on Friday, confirming that an amendment to the subscription letter had been agreed upon with Verde.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.