Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 306

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 306
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 assets and intangible assets with finite lives, are reviewed for impairment annually or more

frequently if there is an indication that the carrying amount may not be recoverable. This review starts with an appraisal of the perimeter of cash-

generating units to consider changes in the business or strategic direction. Following this, an assessment of internal and external indicators is

performed. Internal sources of information considered include assessment of the financial performance of the CGU and changes in mine plans.

External sources of information include changes in forecast commodity prices, costs and other market factors.

Non-current assets (excluding goodwill) that have suffered impairment are reviewed using the same basis for valuation as explained below

whenever events or changes in circumstances indicate that the impairment loss may no longer exist, or may have decreased. If appropriate, an

impairment reversal will be recognised. The carrying amount of the CGU after reversal must be the lower of (a) the recoverable amount, as

calculated above, and (b) the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss

been recognised for the CGU in prior periods.

| Key judgement - indicators of impairment and impairment reversalsOur mining operations require large upfront investment with long periods of construction and management of geotechnical stability risks fromlarge-scale excavation of open pits or underground tunnelling. During operation and towards the end of mine life, the economic performanceof assets is subject to greater influence by short term market dynamics, which can impact the economic feasibility of operations and lifeextension options. Together these represent our most significant sources of uncertainty relating to the identification of indicators ofimpairment and impairment reversal.The underground expansion of our Oyu Tolgoi copper and gold mine in Mongolia is closely monitored for indicators of impairment andimpairment reversal, as it was previously impaired, meaning that carrying value and fair value were equal at that date. The ramp up of theunderground operations is progressing inline with our expectations, which means we have not identified an impairment trigger, however thereremain several years of construction, the complexity of which means we have not identified a trigger for impairment reversal. The Rio TintoKennecott copper mine faced worsening geotechnical conditions in 2024, requiring a revised mine plan for 2025/26.  This increaseduncertainty was identified as an impairment indicator for Rio Tinto Kennecott and an impairment test was performed.The Gladstone alumina refineries are responsible for more than half of our Scope 1 carbon dioxide emissions