SYDNEY—BHP Billiton Ltd. said its annual profit will be crimped by charges of more than US$1 billion stemming from last year’s deadly dam failure at a Brazilian iron-ore mining operation it jointly owns with Vale SA.

BHP, the world’s largest mining company by market value, said it would record a provision of between $1.1 billion and $1.3 billion, roughly half the estimated funding needed by the Samarco Mineração SA joint venture under an agreement signed with Brazilian authorities in March. In a separate statement, Vale said...