Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 296

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 296
---
 coal, but retained a contingent royalty income from these

divestments. Recent favourable coal prices exceeded contractual

benchmark levels and resulted in the cash royalty receipt of

US$ 45million during 2024 (2023: US$ 38million ). We also carry

royalty receivables of US$ 252 million on our balance sheet at

31 December 2024 (2023: US$ 214million ) , measured at fair value

(note 24) . The fair value of this balance may be adversely impacted in

the future by a faster pace of transition to a low-carbon economy, but

this impact is not expected to be material.

Overall, based on the Aspirational Leadership scenario pricing

outcomes, and with all other assumptions remaining consistent with

those applied to our 2024 financial statements, we do not currently

envisage a material adverse impact of the 1.5°C Paris-aligned

sensitivity on asset carrying values, remaining useful life, or closure

and rehabilitation provisions for the Group. It is possible that other

factors may arise in the future, which are not known today, that may

impact this assessment.

Additional commentary on the impact of climate change on our

business is included in the following notes:

| Financial reporting considerations and sensitivities related to climate change                                          |                                                       Page |     |
| Recoverable value of our assets, asset obsolescence, impairment and use of sensitivities (note 4)                       |                                                    172-173 |     |
| Operating expenditure spend on decarbonisation (note 7 - footnote (h))                                                  |                                                        178 |     |
| Water rights - climate impact on indefinite life (note 12)                                                              |                                                        184 |     |
| Carbon abatement spend on procurement of carbon units and renewable energy certificates (note 12 - footnote (a))        |                                                        184 |     |
| Estimation of asset lives (note 13)                                                                                     |                                                        186 |     |
| Additions to property, plant and equipment with a primary purpose of reducing carbon emissions (note 13 - footnote (d)) |                                                        188 |     |
| Useful economic lives of power generating assets (note 13)                                                              |                                                        189 |     |
|                                                                                                                         |   Close-down, restoration and environmental cost (note 14) | 192 |
|                                                                                                                         | Renewable PPAs accounted for as derivatives (note 24 (iv)) | 204 |
|                                                                                                                         |