Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 338

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 338
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 The life of the orebody, in turn, is estimated on the basis of the life-of-mine plan. Where the major assets ofa CGU are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential oflong-lived assets. Factors affecting the remaining service potential of smelters include, for example, smelter technology and electricitypurchase contracts when power is not sourced from the Group, or in some cases from local governments permitting electricity generationfrom hydropower stations. |

| Impact of climate change on our business - estimation of asset livesWe expect there to be a higher demand for copper, aluminium, lithium and high-grade iron ore in order to meet demand for the mineralsrequired to transition to a low-carbon economic environment, consistent with the climate change commitments of the Paris Agreement. Weexpect this to exceed new supply to the market and therefore increase prices. Under the Aspirational Leadership scenario, the economic cut-off grade for our Ore Reserves is expected to be lower; in effect we would mine a greater volume of material before the mines are depleted.We cannot quantify the difference this would make without undue cost as it would require revised mine plans, but for property, plant andequipment this increased volume of material would reduce the depreciation charge during any given period for assets that use the “Units ofproduction” depreciation basis. |

Deferred stripping

In open pit mining operations, overburden and other waste materials must be removed to access ore from which minerals can be extracted

economically. The process of removing overburden and other waste materials is referred to as stripping. During the development of a mine (or,

in some instances, pit; see below), before production commences, stripping costs related to a component of an orebody are capitalised as part

of the cost of construction of the mine (or pit). These are then amortised over the life of the mine (or pit) on a units of production basis.

Where a mine operates several open pits that are regarded as separate operations for the purpose of mine planning, initial stripping costs are

accounted for separately by reference to the ore from each separate pit. If, however, the pits are highly integrated for the purpose of mine

planning, the second and subsequent pits are regarded as extensions of the first pit in accounting for stripping costs. In such cases, the initial

stripping of the second and subsequent pits is considered to be production phase stripping (see below).

| Key judgement - deferral of stripping costsWe apply judgement as