Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 314

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 314
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ated cost escalation for carbon emissions, were identified as impairment triggers during the 6 months ended 30 June 2023. 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$ 1,175million (post-tax US$ 828million ). This represented a full impairment of the property, plant and equipment at the Yarwun alumina refinery ( US$ 948million ) and an impairment of US$ 227million for the property, plant and equipment of QAL. These impairments reflected market participant assumptions and the difficult trading conditions for these assets which were operating below our planned output during the first half of 2023.

| Annual Report on Form 20-F 2024 | 174 | riotinto.com |

Financial statements | Notes to the consolidated financial statements 4 Impairment charges net of reversals continued Other operations - Simandou, Guinea The Simandou project in Guinea was fully impaired in 2015 as uncertainty over infrastructure ownership and funding had resulted in further spend on exploration and evaluation being neither budgeted nor planned. In the second half of 2023, we concluded key agreements with the Republic of Guinea and Winning Consortium Simandou (WCS) on the trans-Guinean infrastructure for the Simandou project and progressed agreements with our joint venture partners that will enable the development of the Simandou iron ore mine. We therefore concluded that although development agreements remain subject to regulatory approvals, the key uncertainties that gave rise to the 2015 impairment had reversed and consequently an impairment reversal trigger was identified at 1 October 2023. Revisions to the Investment Framework and changes to the proposed infrastructure arrangements since 2015 meant that historical costs associated with these items were superseded and therefore the attributable asset cost and accumulated impairment associated with these items was permanently derecognised. Previously capitalised exploration and evaluation costs associated with the mine and retained items of property, plant and equipment that continue to be relevant to the Simandou project development were assessed for impairment reversal. The recoverable amount of the CGU measured on a fair value less cost of disposal basis, was significantly greater than the historical cost of the remaining impaired assets and therefore supported a full reversal of their previously recorded impairment charge. The pre-tax impairment reversal of US$ 239 million was allocated as US$ 231 million to intangible assets (exploration and evaluation) and US$ 8 million to property