Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 313

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 313
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 a fullimpairment of QAL would occur under this scenario. |

Aluminium - Tiwai Point, New Zealand On 30 May 2024, we signed 20 -year power arrangements with electricity generators Meridian Energy, Contact Energy and Mercury NZ to set pricing for an aggregate of 572 MW of electricity to meet the smelter's electricity needs. These new arrangements were identified as an impairment reversal trigger as they give us confidence that the smelter would continue operations competitively beyond the existing supply arrangement, which ran to December 2024. An impairment reversal is limited by the amount of depreciation that would have been charged had the previous impairments not occurred. In this case, as the previous depreciation period was until December 2024, the impairment reversal was limited to US$ 41million . Aluminium - Porto Trombetas (MRN), Brazil In preparing the local accounts for the year to 31 December 2023, after the publication of the Rio Tinto 2023 Annual Report , the directors of Mineração Rio do Norte S.A. (MRN) recorded a local impairment charge triggered by cost increases, unfavourable exchange rates and declining sales prices. The Rio Tinto share of that impairment is US$ 35million pre-tax and US$ 23million post-tax, and is included within the current period share of profit after tax of equity accounted units. Rio Tinto’s share of bauxite produced by MRN is vertically integrated into our Quebec Smelter CGU included in North America Aluminium operations. We reviewed the carrying value of the investment in equity accounted unit as part of this CGU and did not identify indicators of impairment. Minerals - Diavik, Canada During the year an impairment trigger was identified at the Diavik diamond mine due to lower than forecasted diamond prices and short remaining life of mine. Using a value in use methodology and discounting real-terms post-tax cash flows at 6.6% , we recognised a pre-tax impairment charge of US$ 118million (post-tax US$ 86million ). This represents a full impairment of property, plant and equipment in the CGU. 2023 Aluminium - Alumina refineries, Australia In March 2023, the Australian Parliament legislated to introduce a requirement for large heavy industrial carbon emitters to purchase carbon credits based on their Scope 1 emissions with a reducing baseline for these emissions. The challenging market conditions facing these assets, together with our improved understanding of the capital requirements for decarbonisation and the legisl