Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 418

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 418
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. Evaluation of Iron Ore (‘Pilbara’) provision for close-down and restoration As discussed in Note 14 to the consolidated financial statements, the Group has a provision for close-down, restoration and environmental activities (‘closure provisions’) of US$15,731m as of December 31, 2024, a portion of which relates to Iron Ore (‘Pilbara’). We identified the evaluation of provisions for close-down and restoration related to Pilbara as a critical audit matter. Significant auditor judgement was required to evaluate the Group’s assumptions related to the life of operation and the probability, nature and timing of possible closure and rehabilitation activities, and future close-down and restoration costs including costs associated with post-closure monitoring (‘closure costs’). The following are the primary procedures we performed to address this critical audit matter. – We evaluated the design and tested the operating effectiveness of certain internal controls over the Group’s process to estimate provisions for close-down and restoration including the Group’s selection of key assumptions to be used. – We evaluated the scope and competency of the Group’s experts, both internal and external to the Group, who produce the closure cost estimates by examining the work they were involved to perform, and their professional qualifications and experience. – We compared a selection of previous forecast cost assumptions to actual costs to assess the Group’s ability to accurately forecast closure costs. – We inspected the most recent closure studies and other technical material prepared by the Group relating to changes in the closure provision to assess the nature and scope of restoration work planned to be undertaken. This included assumptions relating to the life of the operation and the nature and timing of closure and rehabilitation activities. – We evaluated the completeness of the provisions against the Group’s analysis of where disturbance requires rehabilitation and our understanding of the Pilbara sites, including the probability, nature and timing of possible closure and rehabilitation activities. – In addition, for certain sites, we involved mine closure professionals with specialised skills and knowledge who assisted in evaluating the methodology applied by the Group’s third-party experts and assisted us in assessing certain assumptions regarding the nature and costs of future rehabilitation activities based on their experience and familiarity with applicable legislative requirements and industry practice and the Group’s closure commitments. Evaluation of indicators of impairment or impairment reversals of property, plant and equipment for the Oyu Tolgoi copper-gold mine cash generating unit (Oyu Tolgoi CGU) As discussed, in Note 13 to the consolidated financial statements, as at December 31, 2024, the Group has US$67,345m