Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 364

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 364
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lease liabilities are separated into a principal portion (presented within financing activities) and an interest portion (which the Group presents in

operating activities) in the cash flow statement. Payments made before the commencement date are included within financing activities unless

they in substance represent investing cash flows, for example where pre-commencement cash flows are significant relative to aggregate cash

flows of the leasing arrangement.

| Other relevant judgements - accounting for renewable power purchase agreementsWe have to apply judgement for certain contractual arrangements, such as renewable energy power purchase agreements (PPAs), inevaluating whether we have the right to obtain substantially all of the economic benefits from the use of the renewable energy assets,including the right to obtain physical energy these assets generate. Based on our evaluation, we determine whether an arrangement is alease, an executory contract or a derivative. An immaterial amount was recognised as a lease at31 December 2024for a fixed component ofthe QMM renewable PPA. The Amrun PPA is a lease, which has not yet commenced and is included in capital commitments (note 37). |

Lessee arrangements

We have made the following payments during the year associated with leases :

| Description of payment                                 | Included within                      | 2024US$m | 2023US$m |
| Principal lease payments                               | Cash flows from financing activities |      455 |      426 |
| Interest payments on leases                            | Cash flows from operating activities |       67 |       50 |
| Payments for short-term leases                         | Net operating costs                  |      217 |      269 |
| Payments for variable lease components                 | Net operating costs                  |       46 |       40 |
| Payments for low value leases (>12 months in duration) | Net operating costs                  |        3 |        3 |
| Total lease payments                                   |                                      |      788 |      788 |

Lease liabilities

The maturity profile of lease liabilities recognised at 31 December is :

|                                                      | 2024US$m | 2023US$m |
| Lease liabilities                                    |          |          |
| Due within 1 year                                    |      398 |      385 |
| Between 1 and 3 years                                |      513 |      457 |
| Between 3 and 5 years                                |      281 |      270 |
| More than 5 years                                    |      551 |      574 |
| Total undiscounted cash payments expected to be made |