Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 312

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 312
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ational leadership scenario over the life of mine for the Rio Tinto KennecottCGU is 10 per cent greater than our Conviction prices. Utilising the copper and carbon tax prices from our Aspirational Leadership scenariowith all other assumptions remaining unchanged indicates an additional US$1.0billion of net present value from post-tax cash flows. Thisassumes no changes to mined ore, or changes to risk weightings for future mine expansions, which in a stronger pricing environment couldimprove the economic business case. |

| Annual Report on Form 20-F 2024 | 173 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

4 Impairment charges net of reversals continued Aluminium - Alumina refineries, Australia The Gladstone alumina refineries are responsible for more than half of our Scope 1 carbon dioxide emissions in Australia and therefore have been a key focus as we evaluate options to decarbonise our assets. In 2023 we recorded an impairment of Queensland Alumina Limited (QAL) refinery with the recoverable amount largely dependent upon the double digestion project, which was at the pre-feasibility study stage of project evaluation. This major capital project improves the energy efficiency of the alumina production process and significantly reduces carbon emissions. Continued studies for this project have indicated an increased capital cost compared with our previous assumption and therefore we have performed a further test for impairment. Using a fair value less cost of disposal methodology and discounting real-terms post-tax cash flows at 6.6% , we recognised a pre-tax impairment charge of US$ 461million (post-tax US$ 503million ). This charge was all allocated against property, plant and equipment leaving them with a residual carrying value of US$ 151million . The post-tax impairment charge also includes a consequential adjustment to deferred tax asset recognition within the same tax group.

| Impact of climate change on our business - Queensland alumina refineryWe are committed to the decarbonisation of our assets to reduce Scope 1 and 2 emissions by50%by2030and to net zero emissions by2050relative to our2018equity baseline. We anticipate that further carbon action may be necessary to align with the goals of the ParisAgreement to limit temperature increases to1.5oC. To illustrate the sensitivity of the impairment outcome to the cost of carbon credits, wehave modelled a 10% increase in carbon costs with no change to any other cash flows or assumptions. This sensitivity indicated that