Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 336

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 336
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 equipment includes right-of-use assets arising from leasing arrangements, shown separately from owned and leasehold assets. Once an undeveloped mining project has been determined as commercially viable and approval to mine has been given, further expenditure is capitalised under “capital works in progress” together with any amount transferred from “Exploration and evaluation”. Once the project enters into an operation phase, the amounts capitalised in capital work in progress are reclassified to their respective asset categories. Costs incurred while commissioning new assets, in the period before they are capable of operating in the manner intended by management, are capitalised unless associated with pre-production revenue . Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to a future economic benefit. Interest on borrowings related to construction or development projects is capitalised, at the rate payable on project-specific debt if applicable or at the Group or subsidiary’s cost of borrowing if not. This is performed until the point when substantially all the activities that are necessary to make the asset ready for its intended use are complete. It may be appropriate to use a subsidiary’s cost of borrowing when the debt was negotiated based on the financing requirements of that subsidiary. Depreciation of non-current assets

Property, plant and equipment is depreciated over its useful life, or over the remaining life of the mine, smelter or refinery if that is shorter and

there is no reasonable alternative use for the asset by the Group. Depreciation commences when an asset is available for use and therefore

there is no depreciation for capital work in progress.

Straight line basis

Assets within operations for which production is not expected to fluctuate significantly from one year to another or which have a physical life

shorter than the related mine are depreciated on a straight line basis as follows.

| Type of Property, plant and equipment | Land and buildings |                         | Plant and equipment            |            |
| Land                                  | Buildings          | Power-generating assets | Other plant and equipment      |            |
| Depreciation profile                  | Not depreciated    | 5to50years              | See Power note below onpage189 | 3to50years |

The useful lives and residual values for material assets and categories of assets are reviewed annually and changes are reflected prospectively.

Units of production basis

For mining properties and leases and certain mining equipment, consumption of the economic benefits of the asset is linked to production.

Except as noted below, these assets are depreciated on the units of production basis.

In applying the units