Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 294

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 294
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 electrification in the Pilbara. The solutions are still in development or pilot stages and the gradual fleet replacement is intended to be part of the normal lifecycle renewal of trucks. Depending on technological development, which is highly uncertain, this could lead to accelerated depreciation in the future. Similarly, our target to have net zero vessels in our portfolio by 2030 has not given rise to accounting adjustments to date, as the replacement is planned as part of the lifecycle renewal. The expenditure on our own carbon abatement projects and technology advancements follows existing accounting policies on cost capitalisation, research and development costs.

| Annual Report on Form 20-F 2024 | 160 | riotinto.com |

Financial statements

Impairment - sensitivities to climate change

In our impairment review process we consider the risks associated

with climate change.

The Gladstone alumina refineries are responsible for more than half

of our Scope 1 carbon dioxide emissions in Australia and therefore

have been a key focus as we evaluate options to decarbonise our

assets . In 2023, we recorded an impairment of Queensland Alumina

Limited (QAL) refinery with the recoverable amount largely dependent

upon the double digestion project, which was at the pre-feasibility

study stage of project evaluation. This major capital project improves

the energy efficiency of the alumina production process and

significantly reduces carbon emissions. In 2024, continued studies for

this project have indicated an increased capital cost compared with

our previous assumption and therefore we recognised further

impairment and provided a sensitivity to the cost of carbon credits

(note 4) . Following the impairment in 2022, we continue to evaluate

lower emission power solutions for the Boyne smelter that could

extend its life to at least 2040. In such circumstances, the net present

value of the forecast future cash flows could support the reversal of

past impairments.

As noted above, we anticipate increased demand for copper in the

low-carbon transition. Whilst we have tested Rio Tinto Kennecott

cash-generating unit for impairment utilising our Conviction price

assumptions, that are not aligned with the goals of the Paris

Agreement, we have also provided a sensitivity using our Paris-

aligned Aspirational Leadership scenario (note 4).

Under the Aspirational Leadership scenario, which is not used in the

preparation of these financial statements, nor for budgeting purposes,

the economic performance of copper and aluminium is expected to be