Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 307

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 307
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 in Australia and have thereforebeen a key focus as we evaluate options to decarbonise our assets. In 2023, an impairment indicator at these assets resulted in the fullwrite-down of the carrying value of Yarwun and a partial write-down of our assets at Queensland Alumina Limited (QAL). Continued studiesduring 2024 in relation to the double digestion project to improve the energy efficiency and reduce the carbon emissions at QAL hasindicated a greater overall cost compared with our prior year assumption and therefore we have identified this as an impairment indicator andperformed an impairment test. |

Where indication of impairment or impairment reversal exists, an impairment review is undertaken. The recoverable amount is assessed by

reference to the higher of value in use (being the net present value of expected future cash flows of the relevant CGU in its current condition)

and fair value less costs of disposal (FVLCD). When the recoverable amount of the CGU is measured by reference to FVLCD, this amount is

further classified in accordance with the fair value hierarchy for observable market data that is consistent with the unit of account for the CGU

being tested. The Group considers that the best evidence of FVLCD is the value obtained from an active market or binding sale agreement and,

in this case, the recoverable amount is classified in the fair value hierarchy as level 1. When FVLCD is based on quoted prices for equity

instruments but adjusted to reflect factors such as a lack of liquidity in the market, the recoverable amount is classified as level 2 in the fair

value hierarchy. No CGUs are currently assessed for impairment by reference to a recoverable amount based on FVLCD classified as level 1

or level 2.

| Annual Report on Form 20-F 2024 | 171 | riotinto.com |

Financial statements | Notes to the consolidated financial statements 4 Impairment charges net of reversals continued Where unobservable inputs are material to the measurement of the recoverable amount, FVLCD is based on the best information available to reflect the amount the Group could receive for the CGU in an orderly transaction between market participants at the measurement date. This is often estimated using discounted cash flow techniques and is classified as level 3 in the fair value hierarchy. Where the recoverable amount is assessed using FVLCD based on discounted cash flow techniques, the resulting estimates are based on detailed life-of-mine and long-term production plans. These may include anticipated expansions which are at