Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 311

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 311
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 the high wall

was observed along 2 major fault lines. This movement has limited our ability to access the higher-grade primary ore on the south wall. During

the 3rd quarter of 2024, further studies on the geotechnical risks have been completed, indicating the need to change our mine plan to stabilise

pit wall movement and mitigate the risk of a significant geotechnical failure, this is expected to restrict ore deliveries from the primary ore face in

2025 and 2026. This new information represents a material deviation from the current mine plan and has therefore been identified as an

impairment indicator.

The recoverable amount for the CGU uses the fair value less cost of disposal methodology with real-terms post-tax cash flows discounted over

the expected life of mine at 6.3% . This includes preliminary estimates from a revised mine plan as future options for the open pit and

underground are reviewed, including growth options that remain subject to study and approval. The period of cash flows for end-of-mine closure

is significant relative to the period assumed for operations and therefore a post-tax real-terms discount rate of 2.5% has been used in the

recoverable amount determination for the cash outflows for the rehabilitation of the mine. No impairment charge has been recorded as the

overall net present value of cash flows based on our Conviction price series indicated that the recoverable amount exceeded the US$ 2.2billion

carrying value of CGU by US$ 0.5billion . This outcome is finely balanced as it represents less than 10% of the gross asset carrying value. To

illustrate the sensitivity of the recoverable amount to copper prices, with all other inputs unchanged, a reduction to the copper price of 3% across

all years would result in the recoverable amount of the CGU and the carrying value being equal.

| Impact of climate change on our business - demand for copperAs described in note 1, we anticipate increased demand for copper in the low carbon transition will result in higher copper prices. While wehave tested the Rio Tinto Kennecott CGU for impairment using our Conviction price assumptions, this is not aligned with the goals of theParis Agreement. Therefore we also provide a sensitivity using our Paris-aligned Aspirational Leadership scenario. We do not believe this isrepresentative of fair value less cost of disposal and it is provided for illustrative purposes only.The weighted average selling price for copper under our Aspir