Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 334

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 334
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 will ultimately determine that an evaluation project is commercially viable requires judgement and consideration of all relevant factors such as: the nature and objective of the project, the project’s current stage, project timeline, current estimates of the project’s net present value (including sensitivity analyses for the key assumptions), and the main risks of the project. Development expenditure incurred prior to the decision to proceed is subject to the same criteria for capitalisation, being a high degree of confidence that the Group will ultimately determine that a project is commercially viable. In some cases, undeveloped projects are regarded as successors to orebodies, smelters or refineries currently in production. Where this is the case, it is intended that these will be developed and go into production when the current source of ore is exhausted or when existing smelters or refineries are closed. Ore Reserves may be declared for an undeveloped mining project before its commercial viability has been fully determined. Evaluation costs may continue to be capitalised in between declaration of Ore Reserves and approval to mine as further work is undertaken in order to refine the development case to maximise the project’s returns. Carbon credits and Renewable Energy Certificates Carbon credits and Renewable Energy Certificates (RECs) acquired for our own use are accounted for as intangible assets, initially recorded at cost. They are amortised through the income statement when surrendered. Contract-based intangible assets The majority of the carrying value of our contract-based intangible assets relate to water rights in the Quebec region. These contribute to the efficiency and cost effectiveness of our aluminium operations as they enable us to generate electricity from hydropower stations.

| Annual Report on Form 20-F 2024 | 184 | riotinto.com |

Financial statements | Notes to the consolidated financial statements

12 Intangible assets continued

| Other relevant judgements - assessment of indefinite-lived water rights in Quebec, CanadaWe continue to judge the water rights in Quebec to have an indefinite life because we expect the contractual rights to contribute to theefficiency and cost effectiveness of our operations for the foreseeable future. Accordingly, the rights are not subject to amortisation but aretested annually for impairment. We have no other indefinite-lived assets.As at31 December 2024, the remaining carrying value of the water rights (included in contract-based assets) ofUS$1,631million(2023:US$1,776million) relates wholly to the Quebec smelters CGU. The Quebec smelters CGU was tested for impairment by reference to FVLCDusing discounted cash flows. The recoverable