Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 409

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 409
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 recognised for those operations that have no known restrictions on their lives as

the date of closure cannot be reliably estimated. This applies primarily to our Canadian aluminium smelters, which are not dependent upon a

specific orebody and have access to indefinite-lived power from owned hydropower stations with water rights permitted by local governments. In

these instances, a closure obligation may exist at the reporting date. However, due to the indefinite nature of asset lives it is not possible to

arrive at a sufficiently reliable estimate for the purposes of recognising a provision. Close-down, restoration and environmental provisions are

recognised at these operations for separately identifiable closure activities which can be reasonably estimated, such as the demolition and

removal of fixed structures after a predetermined period. Any contingent liability for these assets will crystallise into a closure provision if and

when a decision is taken to cease operations.

Contingent assets

The Group has, from time to time, various insurance claims outstanding with reinsurers. Recognition of any assets arising takes place once the

insurance company has agreed to refund the claims and the amount is quantifiable. This is usually in the same period as payment is received.

| Annual Report on Form 20-F 2024 | 227 | riotinto.com |

Financial statements | Notes to the consolidated fin ancial statements

37 Contingencies and commitments continued Capital commitments

Our capital commitments include:

– open purchase orders for managed operations and non-managed tolling entities

– expenditure on major projects already authorised by our Investment Committee for non-managed operations.

On a legally enforceable basis, capital commitments excluding the Group’s share of joint ventures would be approximately US$ 1,872million

( 2023 : US$ 1,400million ) as many of the contracts relating to the Group’s projects have various cancellation clauses.

The capital commitments for Simandou are shown on a 100% basis for the SimFer mine and the SimFer scope of infrastructure as managed

operations. The SimFer investment in WCS Rail and Port is classified as a joint venture capital commitment and is shown inclusive of the

funding due from non-controlling interests.

|                                                                                      | 2024US$m | 2023US$m |
| Capital commitments excluding the Group's share of joint venture capital commitments |          |          |
| Within 1 year                                                                        |    4,559 |    3,662 |
| Between 1 and 3 years                                                                |      602 |      597 |
| Between