Key judgements | 2025 | 2024 | Context |
Indicators of impairment and impairment reversals (note 4) | a | a | Various cash-generating units of the Group that have been impaired or tested for impairment in previous years, are at higher risk of impairment charge or reversal in the future due to carrying value and recoverable amounts being similar. While we monitor all assets for impairment, these assets, the largest being Oyu Tolgoi, are monitored more closely for indicators of further impairment or impairment reversal as such adjustments would likely be material to our\u00a0results. |
Purchase price allocation from business combination (note 5) | a | 0 | The allocation of purchase consideration to the identifiable assets and liabilities of Arcadium Lithium plc is a significant judgement. The fair value of assets has been determined based on discounted future cash flows. These are inherently uncertain as selling prices are relatively volatile and the majority of the value is attributable to mines either under construction or still at the evaluation stage of study. Alternative modelling assumptions would have resulted in a different allocation of value between intangible assets, and property, plant and equipment, and, consequently, deferred tax liabilities and goodwill. |
Deferral of stripping costs (note 13) | a | a | The deferral of stripping costs is a key judgement in open-pit mining operations as it impacts the amortisation base for these costs, calculated on a units of production basis; this involves determining whether multiple pits are considered separate or integrated operations, which in turn influences the classification of stripping activities as pre-production or production phase. This judgement relies on various factors that are based on the unique characteristics and circumstances of each mine. |
Estimation of asset lives (note 13) | a | a | The useful lives of major assets are often linked to the life of the orebody they relate to, which is in turn based on the life-of-mine plan. Where the major assets are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. The accuracy of estimating these useful lives is essential for determining the appropriate allocation of costs over time, reflecting the consumption of the asset\u2019s economic benefits. |
Close-down, restoration and environmental obligations (note 14) | a | a | Significant judgement is required to assess the possible extent of closure rehabilitation work needed to fulfil the Group\u2019s legal, statutory, and constructive obligations, along with other commitments to stakeholders. This\u00a0involves leveraging our experience in evaluating available options and techniques to meet these obligations, associated costs and their likely timing and, crucially, determining when that estimate is sufficiently reliable to make or adjust a closure provision. |
Key accounting estimates | 2025 | 2024 | Context |
Impairment test of goodwill (note 11) | a | 0 | The acquisition of Arcadium Lithium plc in March 2025 resulted in the recognition of goodwill which means the associated cash-generating units need to be tested annually for impairment. The recoverable amount is determined based on discounted cash-flows using future-oriented estimates, including forward pricing, operating costs, construction and production profiles that are inherently uncertain. |
Estimation of the close-down, restoration and\u00a0environmental cost obligations (note 14) | a | a | Close-down, restoration and environmental obligations are based on cash flow projections derived from studies that incorporate planned rehabilitation activities, cost estimates and discounting for the time value. Closure studies are performed to a rolling schedule with increased frequency and engineering accuracy for sites approaching end of life. Information from these studies can result in a material change to the associated provisions. During the year, the most significant closure provision updates related to a number of sites across the Pilbara. The provisions are based on reforecast cash flows; these are subject to further study which could result in material adjustment in the near\u00a0term. |
Power related commodity derivatives (note 25 ) | a | a | A discounted cash flow methodology is used to determine the fair value of the derivatives. Key\u00a0inputs into the renewable energy valuation models include forward electricity price curves, which are used to forecast future floating cash flows, estimated electricity generation and credit-adjusted discount rates. Long-term forward electricity prices are a source of a significant estimation uncertainty as they are not readily available and may be impacted by renewable market developments, which are presently unknown. |
Estimation of obligations for\u00a0post-employment costs\u00a0(note\u00a029) | a | a | The value of the Group\u2019s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out, discounted to the balance sheet date. There is significant estimation uncertainty pertaining to the most significant assumptions used in accounting for pension plans, namely the discount rate, the long-term inflation rate and mortality rates. |
Other relevant judgements | Identification of functional currency |
We present our financial statements in USD, as that presentation currency most reliably reflects the global business performance of the Group as a whole. The functional currency for each subsidiary, unincorporated arrangement, joint operation and equity accounted unit is the currency of the primary economic environment in which it operates. For businesses that reside in developed economies, the functional currency is generally the currency of the country in which it operates because of the dominance of locally incurred costs. If the business resides in an emerging economy, the USD is generally identified to be the functional currency as a higher proportion of costs, particularly imported goods and services, are agreed and paid in USD, in common with other international investors. Determination of functional currency involves judgement, and other companies may make different judgements based on similar facts. The determination of functional currency affects the measurement of non-current assets included in the balance sheet and, as a consequence, the depreciation and amortisation of those assets included in the income statement. It also impacts exchange gains and losses included in the income statement and in equity. We also apply judgement in determining whether settlement of certain intragroup loans is neither planned nor likely in the foreseeable future and, therefore, whether the associated exchange gains and losses can be taken to equity. During 2025, A$16,265 million (2024: A$15,717 million) of intragroup loans continued to meet these criteria; associated exchange gains and losses are taken to equity. |
Financial reporting considerations and sensitivities related to climate change | Page |
Carbon tax sensitivity on impairment charge (note 4) | |
Operating expenditure spend on decarbonisation (note 7 - footnote (f)) | |
Water rights - climate impact on indefinite life (note 12) | |
Carbon abatement spend on procurement of carbon units and renewable energy certificates (note 12 - footnote (a)) | |
Estimation of asset lives (note 13) | |
Additions to property, plant and equipment with a primary purpose of reducing carbon emissions (note 13 - footnote (d)) | |
Useful economic lives of power generating assets (note 13) | |
Close-down, restoration and environmental cost (note 14) | |
Renewable PPAs accounted for as derivatives (note 25 (iv)) | |
Decarbonisation capital commitments (note 37) |
Reportable segment | Principal activities |
Aluminium & Lithium | Bauxite mining; alumina refining; aluminium smelting and recycling; mining and processing of lithium. |
Copper | Mining and refining of copper, gold, silver, molybdenum, other by-products and exploration activities. |
Iron Ore | Iron ore mining and salt and gypsum production in Western Australia; iron concentrate and pellets from the Iron Ore Company of Canada. |
Other relevant judgements | Determination of CGUs |
Judgement is applied to identify the Group\u2019s CGUs, particularly when assets belong to integrated operations, and changes in CGUs could impact impairment charges and reversals. The most relevant judgement for grouping continues to relate to the grouping of Rio\u00a0Tinto Iron and Titanium Quebec Operations and QIT Madagascar Minerals (QMM) as a single CGU on the basis that they are vertically integrated operations and there is no active market for QMM\u2019s ilmenite. The most relevant judgement for disaggregation continues to relate to our bauxite and alumina refining operations in Australia, whereby we treat the Weipa bauxite mine as a separate CGU from the downstream assets at Gladstone. Currently, Weipa sells the majority of its bauxite to third-party customers, whereas the alumina refineries are supplied with all of their bauxite internally. |
Key judgement | Indicators of impairment and impairment reversals |
Our mining operations require large upfront investment with long periods of construction and management of geotechnical stability risks from large-scale excavation of open pits or underground tunnelling. During operation and towards the end of mine life, the economic performance of assets is subject to greater influence by short-term market dynamics, which can impact the economic feasibility of operations and life extension options. Together these represent our most significant sources of uncertainty relating to the identification of indicators of impairment and impairment reversal. The underground expansion of our Oyu Tolgoi copper and gold mine in Mongolia is closely monitored for indicators of impairment and impairment reversal, as it was previously impaired, meaning that carrying value and fair value were equal at that date. During 2025, development of infrastructure to support the underground mine was completed, however the production ramp up still requires several years of construction. The complexity and inherent uncertainty of ramping up block caving means we have not identified an indicator for impairment reversal. |
Key accounting estimate | Impairment test of goodwill |
The recoverable amount has been assessed by reference to the FVLCD methodology described in note 4, utilising post-tax cash flows expressed in real terms discounted at a weighted discount rate of 8.3% and classified as level 3 in the fair value hierarchy. The underlying cash flows are based on operating assumptions that focus on delivering the committed projects to reach capacity of 200 ktpa by 2028, accounting for 82% of the recoverable amount. Further expansions that bring our total capacity to 370\u00a0ktpa by 2035 represent 18% of the recoverable amount, with expansions having been risk adjusted for project specific factors, including in Argentina for the benefit of the Regime for Large Investments (\u201cRIGI\u201d) potentially not being available. The recoverable amount exceeds the carrying value by US$1.3 billion and accordingly no impairment has been recorded. The key assumption to which the determination is most sensitive is the long-run price for lithium carbonate. At 31 December 2025, market commentators used in our determination of consensus pricing have published forecast prices (adjusted to 2025 real-terms) in range $13.3/kg lithium carbonate equivalent (LCE) to $22.0/kg LCE. For our impairment test we have used a long-run lithium carbonate price in the upper half of that range in recognition of positive market sentiment at the balance sheet date. With all other modelling inputs remaining constant, a reduction in the long-run price for lithium carbonate by 4.5% would reduce the net present value of cash-flows to equal the carrying value. To further illustrate the sensitivity of the recoverable amount, with all other inputs remaining constant, an increase in the weighted average discount rate to 9% would also result in the recoverable amount and carrying value being equal. |
2025 US$m | 2024 US$m | |
5% increase in the titanium slag price | 164 | 144 |
1% increase in the discount rate applied to post-tax cash flows | (147) | (135) |
10% strengthening of the South African rand | 201 | 232 |
Type of Property, plant and equipment | Land and buildings | Plant and equipment | ||
Land | Buildings | Power-generating assets | Other plant and equipment | |
Depreciation profile | Not depreciated | 5 to 50 years | See Power note below on page 191 | 3 to 50 years |
Key judgement | Estimation of asset lives |
The useful lives of the major assets of a CGU are often dependent on the life of the orebody to which they relate. Where this is the case, the lives of mining properties, and their associated refineries, concentrators and other long-lived processing equipment are generally limited to the expected life of the orebody. The life of the orebody, in turn, is estimated on the basis of the life-of-mine plan. Where the major assets of a CGU are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. Factors affecting the remaining service potential of smelters include, for example, smelter technology and electricity purchase contracts when power is not sourced from the Group, or in some cases from local governments permitting electricity generation from hydropower stations.\u00a0 |
Impact of climate change on our business | Estimation of asset lives |
We expect there to be a higher demand for copper, aluminium, lithium and high-grade iron ore in order to meet demand for the minerals required to transition to a low-carbon economic environment, consistent with the climate change commitments of the Paris Agreement. We expect this to exceed new supply to the market and therefore increase prices. Under the Aspirational Leadership scenario, the economic cut-off grade for our Ore Reserves is expected to be lower; in effect we would mine a greater volume of material before the mines are depleted. We cannot quantify the difference this would make without undue cost as it would require revised mine plans, but for property, plant and equipment this increased volume of material would reduce the depreciation charge during any given period for assets that use the \u201cUnits of production\u201d depreciation basis. |
Key judgement | Deferral of stripping costs |
We apply judgement as to whether multiple pits at a mine are considered separate or integrated operations. This determines whether the stripping activities of a pit are classified as pre-production or production phase stripping and, therefore, the amortisation base for those costs. The analysis depends on each mine\u2019s specific circumstances and requires judgement: another mining company could make a different judgement even when the fact pattern appears to be similar. In order for production phase stripping costs to qualify for capitalisation as a stripping activity asset, 3 criteria must be met: \u2022 it must be probable that there will be an economic benefit in a future accounting period because the stripping activity has improved access to the orebody \u2022 it must be possible to identify the \u201ccomponent\u201d of the orebody for which access has been improved \u2022 it must be possible to reliably measure the costs that relate to the stripping activity. |
Phase | Development phase | Production phase | |
Stripping activity | Overburden and other waste removal during the development of a mine before production commences. | Production phase stripping can give access to 2 benefits: the extraction of ore in the current period and improved access to ore which will be extracted in future periods. | |
Period of benefit | After commissioning of the\u00a0mine. | Future periods after first phase is complete. | Current and future benefit are indistinguishable. |
Capitalised to mining properties and leases in property, plant and\u00a0equipment | During the development of a mine, stripping costs relating to a component of an orebody are capitalised as part of the cost of construction of the mine. | It may be the case that subsequent phases of stripping will access additional ore and that these subsequent phases are only possible after the first phase has taken place. Where applicable, the Group considers this on a mine-by-mine basis. Generally, the only ore attributed to the stripping activity asset for the purposes of calculating the life-of-component ratio is the ore to be extracted from the originally identified component. | Stripping costs for the component are deferred to the extent that the current period ratio exceeds the life-of- component ratio. |
Allocation to inventory | Not applicable | Not applicable | Stripping costs are allocated to inventory based on a relevant production measure using a life- of-component strip ratio. |
Life-of-component ratio | The life-of-component ratios are based on the Ore Reserves of the mine (and for some mines, other Mineral Resources) and the annual mine plan. They are a function of the mine design and, therefore, changes to that design will generally result in changes to the ratios. Changes in other technical or economic parameters that impact the Ore Reserves (and for some mines, other Mineral Resources) may also have an impact on the life-of-component ratios even if they do not affect the mine design. Changes to the ratios are accounted for prospectively. | ||
Depreciation basis | Depreciated on a \u201cunits of production\u201d basis based on expected production of either ore or minerals contained in the ore over the life of the component unless another method is more appropriate. |
Key accounting estimate | Close-down, restoration and environmental obligations |
The most significant assumptions and estimates used in calculating the provision are: \u2022 Closure timeframes. The weighted average remaining lives of operations is shown above. Some expenditure may be incurred before closure while the operation as a whole is in production. \u2022 The length of any post-closure monitoring period. This will depend on the specific site requirements and the availability of alternative commercial arrangements; some expenditure can continue into perpetuity. The Rio Tinto Kennecott closure and environmental remediation provision includes an allowance for ongoing monitoring and remediation costs, including groundwater treatment, of approximately US$0.7 billion. \u2022 The probability weighting of possible closure scenarios. The most significant impact of probability weighting is at the Pilbara operations (Iron Ore) relating to infrastructure, and incorporates the expectation that some infrastructure will be retained by the relevant State authorities post closure. The assignment of probabilities to this scenario reduces the closure provision by US$0.5 billion. \u2022 Appropriate sources on which to base the calculation of the discount rate. The discount rate, by nature, is subjective and therefore sensitivities are shown below for how the provision balance would change if discounted at alternative discount rates. There is significant estimation uncertainty in the calculation of the provision and cost estimates can vary in response to many factors\u00a0including: \u2022 changes to the relevant legal or local/national government requirements and any other commitments made to stakeholders \u2022 review of remediation and relinquishment options \u2022 additional remediation requirements identified during the rehabilitation \u2022 the emergence of new restoration techniques \u2022 precipitation rates and climate change \u2022 change in foreign exchange rates \u2022 change in the expected closure date \u2022 change in the discount rate. Experience gained at other mine or production sites may also change expected methods or costs of closure, although elements of the restoration and rehabilitation can be unique to each site. Generally, there is relatively limited restoration and rehabilitation activity and historical precedent elsewhere in the Group, or in the industry as a whole, against which to benchmark cost estimates. The expected timing of expenditure can also change for other reasons, for example because of changes to expectations relating to Ore Reserves and Mineral Resources, production rates, renewal of operating licences or economic conditions. Changes in closure cost estimates at the Group\u2019s ongoing operations could result in a material adjustment to assets and liabilities in the next 12 months and would also impact the depreciation and the unwinding of discount in future years. Changes to closure cost estimates for closed operations, and changes to environmental cost estimates at any operation, could cause a material adjustment to the income statement and closure liability. We do not consider that there is significant risk of a change in estimates for these liabilities causing a material adjustment to the income statement in the next 12 months. Any new environmental incidents may require a material provision but cannot be predicted. Project-specific risks are embedded within the cash flows which are based on a central case estimate of closure activities assuming that the obligation is fulfilled by the Group. These cash flows are then discounted, as mentioned above, using a consistent discount rate applied to all locations. |
Impact of climate change on our business | Close-down, restoration and environmental costs |
The underlying costs for closure have been estimated with varying degrees of precision based on a function of the age of the underlying asset and proximity to closure. For assets within 10 years of closure, closure plans and cost estimates are supported by detailed studies which are refined as the closure date approaches. These closure studies consider climate change and plan for resilience to expected climate conditions with a particular focus on precipitation rates. For new developments, consideration of climate change and ultimate closure conditions are an important part of the approval process. For longer-lived assets, closure provisions are typically based on conceptual level studies that are refreshed at least every 5 years; these are evolving to incorporate greater consideration of forecast climate conditions at closure. |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest\u00a0premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in \u201cnet operating costs\u201d (within \u201cother external costs\u201d - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. |
Key judgements | 2025 | 2024 | Context |
Indicators of impairment and impairment reversals (note 4) | a | a | Various cash-generating units of the Group that have been impaired or tested for impairment in previous years, are at higher risk of impairment charge or reversal in the future due to carrying value and recoverable amounts being similar. While we monitor all assets for impairment, these assets, the largest being Oyu Tolgoi, are monitored more closely for indicators of further impairment or impairment reversal as such adjustments would likely be material to our\u00a0results. |
Purchase price allocation from business combination (note 5) | a | 0 | The allocation of purchase consideration to the identifiable assets and liabilities of Arcadium Lithium plc is a significant judgement. The fair value of assets has been determined based on discounted future cash flows. These are inherently uncertain as selling prices are relatively volatile and the majority of the value is attributable to mines either under construction or still at the evaluation stage of study. Alternative modelling assumptions would have resulted in a different allocation of value between intangible assets, and property, plant and equipment, and, consequently, deferred tax liabilities and goodwill. |
Deferral of stripping costs (note 13) | a | a | The deferral of stripping costs is a key judgement in open-pit mining operations as it impacts the amortisation base for these costs, calculated on a units of production basis; this involves determining whether multiple pits are considered separate or integrated operations, which in turn influences the classification of stripping activities as pre-production or production phase. This judgement relies on various factors that are based on the unique characteristics and circumstances of each mine. |
Estimation of asset lives (note 13) | a | a | The useful lives of major assets are often linked to the life of the orebody they relate to, which is in turn based on the life-of-mine plan. Where the major assets are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. The accuracy of estimating these useful lives is essential for determining the appropriate allocation of costs over time, reflecting the consumption of the asset\u2019s economic benefits. |
Close-down, restoration and environmental obligations (note 14) | a | a | Significant judgement is required to assess the possible extent of closure rehabilitation work needed to fulfil the Group\u2019s legal, statutory, and constructive obligations, along with other commitments to stakeholders. This\u00a0involves leveraging our experience in evaluating available options and techniques to meet these obligations, associated costs and their likely timing and, crucially, determining when that estimate is sufficiently reliable to make or adjust a closure provision. |
Key accounting estimates | 2025 | 2024 | Context |
Impairment test of goodwill (note 11) | a | 0 | The acquisition of Arcadium Lithium plc in March 2025 resulted in the recognition of goodwill which means the associated cash-generating units need to be tested annually for impairment. The recoverable amount is determined based on discounted cash-flows using future-oriented estimates, including forward pricing, operating costs, construction and production profiles that are inherently uncertain. |
Estimation of the close-down, restoration and\u00a0environmental cost obligations (note 14) | a | a | Close-down, restoration and environmental obligations are based on cash flow projections derived from studies that incorporate planned rehabilitation activities, cost estimates and discounting for the time value. Closure studies are performed to a rolling schedule with increased frequency and engineering accuracy for sites approaching end of life. Information from these studies can result in a material change to the associated provisions. During the year, the most significant closure provision updates related to a number of sites across the Pilbara. The provisions are based on reforecast cash flows; these are subject to further study which could result in material adjustment in the near\u00a0term. |
Power related commodity derivatives (note 25 ) | a | a | A discounted cash flow methodology is used to determine the fair value of the derivatives. Key\u00a0inputs into the renewable energy valuation models include forward electricity price curves, which are used to forecast future floating cash flows, estimated electricity generation and credit-adjusted discount rates. Long-term forward electricity prices are a source of a significant estimation uncertainty as they are not readily available and may be impacted by renewable market developments, which are presently unknown. |
Estimation of obligations for\u00a0post-employment costs\u00a0(note\u00a029) | a | a | The value of the Group\u2019s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out, discounted to the balance sheet date. There is significant estimation uncertainty pertaining to the most significant assumptions used in accounting for pension plans, namely the discount rate, the long-term inflation rate and mortality rates. |
Other relevant judgements | Identification of functional currency |
We present our financial statements in USD, as that presentation currency most reliably reflects the global business performance of the Group as a whole. The functional currency for each subsidiary, unincorporated arrangement, joint operation and equity accounted unit is the currency of the primary economic environment in which it operates. For businesses that reside in developed economies, the functional currency is generally the currency of the country in which it operates because of the dominance of locally incurred costs. If the business resides in an emerging economy, the USD is generally identified to be the functional currency as a higher proportion of costs, particularly imported goods and services, are agreed and paid in USD, in common with other international investors. Determination of functional currency involves judgement, and other companies may make different judgements based on similar facts. The determination of functional currency affects the measurement of non-current assets included in the balance sheet and, as a consequence, the depreciation and amortisation of those assets included in the income statement. It also impacts exchange gains and losses included in the income statement and in equity. We also apply judgement in determining whether settlement of certain intragroup loans is neither planned nor likely in the foreseeable future and, therefore, whether the associated exchange gains and losses can be taken to equity. During 2025, A$16,265 million (2024: A$15,717 million) of intragroup loans continued to meet these criteria; associated exchange gains and losses are taken to equity. |
Other relevant judgements | Exclusions from underlying EBITDA |
Items excluded from profit after tax are those gains and losses that, individually or in aggregate with similar items, are of a nature and size to require exclusion in order to provide additional insight into the underlying business performance. The following items are excluded from profit after tax in arriving at underlying EBITDA in each year irrespective of materiality: \u2022 all depreciation and amortisation in subsidiaries and the corresponding share of profit in EAUs \u2022 all taxation and finance items in subsidiaries and the corresponding share of profit in EAUs \u2022 unrealised gains and losses on embedded derivatives not qualifying for hedge accounting (including foreign exchange) \u2022 net gains and losses on consolidation or disposal of interests in businesses \u2022 impairment charges net of reversals including corresponding amounts in share of profit in EAUs \u2022 the underlying EBITDA of discontinued operations \u2022 adjustments to closure provisions where the adjustment is associated with an impairment charge and for legacy sites where the disturbance or environmental contamination relates to the pre-acquisition period. In addition, there is a final judgemental category which includes, where applicable, other credits and charges that, individually or in aggregate if of a similar type, are of a nature or size to require exclusion in order to provide additional insight into underlying business performance. In 2025 and 2024, there were no items in this category. In 2023, this included all re-estimates of the closure provisions for fully impaired sites identified in the second half of the year due to the materiality of the adjustment in aggregate. |
Other relevant judgements | Determination of CGUs |
Judgement is applied to identify the Group\u2019s CGUs, particularly when assets belong to integrated operations, and changes in CGUs could impact impairment charges and reversals. The most relevant judgement for grouping continues to relate to the grouping of Rio\u00a0Tinto Iron and Titanium Quebec Operations and QIT Madagascar Minerals (QMM) as a single CGU on the basis that they are vertically integrated operations and there is no active market for QMM\u2019s ilmenite. The most relevant judgement for disaggregation continues to relate to our bauxite and alumina refining operations in Australia, whereby we treat the Weipa bauxite mine as a separate CGU from the downstream assets at Gladstone. Currently, Weipa sells the majority of its bauxite to third-party customers, whereas the alumina refineries are supplied with all of their bauxite internally. |
Key judgement | Indicators of impairment and impairment reversals |
Our mining operations require large upfront investment with long periods of construction and management of geotechnical stability risks from large-scale excavation of open pits or underground tunnelling. During operation and towards the end of mine life, the economic performance of assets is subject to greater influence by short-term market dynamics, which can impact the economic feasibility of operations and life extension options. Together these represent our most significant sources of uncertainty relating to the identification of indicators of impairment and impairment reversal. The underground expansion of our Oyu Tolgoi copper and gold mine in Mongolia is closely monitored for indicators of impairment and impairment reversal, as it was previously impaired, meaning that carrying value and fair value were equal at that date. During 2025, development of infrastructure to support the underground mine was completed, however the production ramp up still requires several years of construction. The complexity and inherent uncertainty of ramping up block caving means we have not identified an indicator for impairment reversal. |
Key judgement | Purchase price allocation from business combination |
The allocation of the US$6,301 million purchase consideration to the identifiable assets and liabilities of Arcadium Lithium plc is a significant judgement as the majority of the acquired business value is dependent on the development of mines and processing facilities and the profitable extraction and sale of lithium products. The fair value of assets acquired has been determined based on discounted forecast future cash-flows, adjusted for a country risk premium depending on the location of the assets. At 6\u00a0March 2025, this resulted in a weighted post-tax real-terms discount rate of 8.3%. The forecast future cash flows have been estimated using a long-run lithium carbonate price towards the upper end of a consensus range outlook at 6\u00a0March 2025, applied to projected production and cost data from reserves and resource life of mine plan modelling. Alternative inputs to the discounted cash flow models would have resulted in a different weighting of the purchase price allocation principally between intangible assets, property, plant and equipment and, consequently, deferred tax liabilities and goodwill. |
Other relevant judgements | Uncertain tax positions |
The Group operates across a large number of jurisdictions and is subject to review and challenge by local tax authorities on a range of tax matters. Where the amount of tax payable or recoverable is uncertain, whether due to local tax authority challenge or due to uncertainty regarding the appropriate treatment, judgement is required to assess the probability that the adopted treatment will be accepted. In accordance with IFRIC 23 \u201cUncertainty over Income Tax Treatments\u201d, if it is not probable that the treatment will be accepted, the Group accounts for uncertain tax provisions for all matters worldwide based on the Group\u2019s judgement of the most likely amount of the liability or recovery, or, where there is a wide range of possible outcomes, using a probability weighted average approach. Uncertain tax provisions include any related interest and penalties. The Mongolian Tax Authority has issued a number of tax assessments dating back to 2013, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. As required by Mongolian law, we have paid all amounts due in respect of the assessments, totalling US$438 million (2024: US$438 million), pending resolution of the disputes through arbitration. The assessments also seek to disallow tax deductions, including future tax deductions in respect of amounts accrued and payable in the future. The International Arbitration hearings were held in September 2025. The parties are now awaiting the arbitration Tribunal to provide a final decision. Management regularly re-evaluates the likely outcomes from the dispute based on the progress of the arbitration proceedings, legal advice, and discussions with the Government of Mongolia. In 2024, a provision of US$295 million for uncertain tax positions was recorded, which continues to reflect our best estimate of the likely outcome from the dispute. It is possible that the outcome of these proceedings could result in a change in our estimated exposure in respect of the matters under dispute. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the recovery of certain deferred tax assets, further details of which are provided in note 15. |
Other relevant judgements | Assessment of indefinite-lived water rights in Quebec, Canada |
We continue to judge the water rights in Quebec to have an indefinite life because we expect the contractual rights to contribute to the efficiency and cost effectiveness of our operations for the foreseeable future. Accordingly, the rights are not subject to amortisation but are tested annually for impairment. We have no other indefinite-lived assets. As at 31\u00a0December 2025, the remaining carrying value of the water rights (included in contract-based assets) of US$1,711 million ( 2024:\u00a0US$1,631 million) relates wholly to the Quebec smelters CGU. The Quebec smelters CGU was tested for impairment by reference to FVLCD using discounted cash flows. The recoverable amount of the Quebec smelters is classified as level 3 under the fair value hierarchy. In arriving at its FVLCD, post-tax cash flows expressed in real terms have been estimated over the expected useful economic lives of the underlying smelting assets and discounted using a real post-tax discount rate of 6.6% (2024: 6.6%). The recoverable amounts were determined to be significantly in excess of carrying value, and there are no reasonably possible changes in key assumptions that would cause the remaining water rights to be impaired. |
Key judgement | Estimation of asset lives |
The useful lives of the major assets of a CGU are often dependent on the life of the orebody to which they relate. Where this is the case, the lives of mining properties, and their associated refineries, concentrators and other long-lived processing equipment are generally limited to the expected life of the orebody. The life of the orebody, in turn, is estimated on the basis of the life-of-mine plan. Where the major assets of a CGU are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. Factors affecting the remaining service potential of smelters include, for example, smelter technology and electricity purchase contracts when power is not sourced from the Group, or in some cases from local governments permitting electricity generation from hydropower stations.\u00a0 |
Key judgement | Deferral of stripping costs |
We apply judgement as to whether multiple pits at a mine are considered separate or integrated operations. This determines whether the stripping activities of a pit are classified as pre-production or production phase stripping and, therefore, the amortisation base for those costs. The analysis depends on each mine\u2019s specific circumstances and requires judgement: another mining company could make a different judgement even when the fact pattern appears to be similar. In order for production phase stripping costs to qualify for capitalisation as a stripping activity asset, 3 criteria must be met: \u2022 it must be probable that there will be an economic benefit in a future accounting period because the stripping activity has improved access to the orebody \u2022 it must be possible to identify the \u201ccomponent\u201d of the orebody for which access has been improved \u2022 it must be possible to reliably measure the costs that relate to the stripping activity. |
Key judgement | Close-down, restoration and environmental obligations |
We use our judgement and experience to determine the potential scope of closure rehabilitation work required to meet the Group\u2019s legal, statutory and constructive obligations, and any other commitments made to stakeholders, and the options and techniques available to meet those obligations in order to estimate the associated costs and the likely timing of those costs. Significant judgement is also required to then determine both the costs associated with that work and the other assumptions used to calculate the provision. External experts support the cost estimation process where appropriate, but there remains significant estimation uncertainty. The key judgement in applying this accounting policy is determining when an estimate is sufficiently reliable to make or adjust a closure provision. Adjustments are made to provisions when the range of possible outcomes becomes sufficiently narrow to permit reliable estimation. Depending on the materiality of the change, adjustments may require review and endorsement by the Group\u2019s Closure Steering Committee before the provision is updated. Cost provisions are updated throughout the life of the operation with conceptual study estimates reviewed every 5 years. Within 10 years from the expected closure date, closure cost estimates must comply with the Group\u2019s Capital Project Framework. This means, for example, that where an Order of Magnitude (OoM) study is required for closure, it must be of the same standard as an OoM study for a new mine, smelter or refinery. In some cases, the closure study may indicate that monitoring and, potentially, remediation will be required indefinitely - for example, groundwater treatment. In these cases, the underlying cash flows for the provision may be restricted to a period for which the costs can be reliably estimated, which on average is around 30 years. Where an alternative commercial arrangement to meet our obligations can be predicted with confidence, this period may be shorter. |
Key accounting estimate | Close-down, restoration and environmental obligations |
The most significant assumptions and estimates used in calculating the provision are: \u2022 Closure timeframes. The weighted average remaining lives of operations is shown above. Some expenditure may be incurred before closure while the operation as a whole is in production. \u2022 The length of any post-closure monitoring period. This will depend on the specific site requirements and the availability of alternative commercial arrangements; some expenditure can continue into perpetuity. The Rio Tinto Kennecott closure and environmental remediation provision includes an allowance for ongoing monitoring and remediation costs, including groundwater treatment, of approximately US$0.7 billion. \u2022 The probability weighting of possible closure scenarios. The most significant impact of probability weighting is at the Pilbara operations (Iron Ore) relating to infrastructure, and incorporates the expectation that some infrastructure will be retained by the relevant State authorities post closure. The assignment of probabilities to this scenario reduces the closure provision by US$0.5 billion. \u2022 Appropriate sources on which to base the calculation of the discount rate. The discount rate, by nature, is subjective and therefore sensitivities are shown below for how the provision balance would change if discounted at alternative discount rates. There is significant estimation uncertainty in the calculation of the provision and cost estimates can vary in response to many factors\u00a0including: \u2022 changes to the relevant legal or local/national government requirements and any other commitments made to stakeholders \u2022 review of remediation and relinquishment options \u2022 additional remediation requirements identified during the rehabilitation \u2022 the emergence of new restoration techniques \u2022 precipitation rates and climate change \u2022 change in foreign exchange rates \u2022 change in the expected closure date \u2022 change in the discount rate. Experience gained at other mine or production sites may also change expected methods or costs of closure, although elements of the restoration and rehabilitation can be unique to each site. Generally, there is relatively limited restoration and rehabilitation activity and historical precedent elsewhere in the Group, or in the industry as a whole, against which to benchmark cost estimates. The expected timing of expenditure can also change for other reasons, for example because of changes to expectations relating to Ore Reserves and Mineral Resources, production rates, renewal of operating licences or economic conditions. Changes in closure cost estimates at the Group\u2019s ongoing operations could result in a material adjustment to assets and liabilities in the next 12 months and would also impact the depreciation and the unwinding of discount in future years. Changes to closure cost estimates for closed operations, and changes to environmental cost estimates at any operation, could cause a material adjustment to the income statement and closure liability. We do not consider that there is significant risk of a change in estimates for these liabilities causing a material adjustment to the income statement in the next 12 months. Any new environmental incidents may require a material provision but cannot be predicted. Project-specific risks are embedded within the cash flows which are based on a central case estimate of closure activities assuming that the obligation is fulfilled by the Group. These cash flows are then discounted, as mentioned above, using a consistent discount rate applied to all locations. |
Other relevant judgements | Recoverability of deferred tax assets |
In considering the recoverability of deferred tax assets, judgement is required regarding the extent to which certain risk factors are likely to affect the recovery of these assets. These risk factors include the risk of expiry of losses prior to utilisation, the impact of other legislation or tax regimes, such as minimum taxes, and consideration of factors that lead to the generation of losses or other deferred tax assets. IAS 12 requires us to consider whether taxable profits will be available against which deferred tax assets may be\u00a0utilised. The Mongolian Tax Authority has issued a number of tax assessments dating back to 2013, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. The matters under dispute have been referred to international arbitration. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the amount and/or recovery of recognised deferred tax items, including those in respect of amounts accrued and payable in the future. The issuance of the arbitration award on matters of this complexity can typically take longer than 12 months to conclude following the International Arbitration hearings, which occurred in September 2025. |
Other relevant judgements | Accounting for renewable power purchase agreements |
We have to apply judgement for certain contractual arrangements, such as renewable energy power purchase agreements (PPAs), in evaluating whether we have the right to obtain substantially all of the economic benefits from the use of the renewable energy assets, including the right to obtain physical energy these assets generate. Based on our evaluation, we determine whether an arrangement is a lease, an executory contract or a derivative. An immaterial amount was recognised as a lease at both 31\u00a0December 2025 and 31\u00a0December 2024 for a fixed component of the QMM renewable PPA. The Amrun and Jinbi renewable PPAs are leases which have not yet commenced, and are included in our decarbonisation capital commitments (note 37). |
Key estimate | Estimation of obligations for post-employment costs | ||||||
The value of the Group\u2019s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out, discounted to the balance sheet date. The most significant assumptions used in accounting for pension plans are: \u2022 The discount rate used to determine the net present value of the obligations, the interest cost on the obligations and the interest income on plan assets. We use the yield from high-quality corporate bonds with maturities and terms that match those of the post- employment obligations as closely as possible. Where there is no developed corporate bond market in a currency, the rate on government bonds is used. \u2022 The long-term inflation rate used to project increases in future benefit payments for those plans that have benefits linked to inflation. The assumption regarding future inflation is based on market yields on inflation-linked instruments, where possible, combined with consensus views. \u2022 The mortality rates used to project the period over which benefits will be paid, which is then discounted to arrive at the net present value of the obligations. The Group reviews the actual mortality rates of retirees in its major pension plans on a regular basis and uses these rates to set its current mortality assumptions. It also uses its judgement with respect to allowances for future improvements in longevity having regard to standard improvement scales in each relevant country and after taking external actuarial advice. The weighted-average assumptions used for the valuation at year-end are summarised below: | |||||||
At 31\u00a0December 2025 | At 31 December 2024 | ||||||
Discount rate | Long-term inflation (a) | Rate of increase in pensions | Discount rate | Long-term inflation (a) | Rate of increase in pensions | ||
Canada | 4.8% | 2.0% | 0.3% | 4.6% | 2.0% | 0.2% | |
UK | 5.4% | 2.8% | 2.3% | 5.4% | 3.1% | 2.7% | |
US | 5.3% | 2.3% | \u2013% | 5.5% | 2.3% | \u2013% | |
Switzerland | 1.2% | 1.0% | 2.5% | 0.9% | 1.0% | 2.2% | |
(a) The long-term inflation assumption shown for the UK is for the Retail Price Index. The assumption for the Consumer Price Index at 31\u00a0December 2025 was 2.4% (2024: 2.7%). |
Other relevant judgements | Accounting for the Pilbara Iron Arrangements |
A number of arrangements are in place amongst the Australian Iron Ore operations, managed by Rio Tinto, which allow their respective assets to be operated as a single integrated network across the Pilbara region. In assessing the Pilbara Iron Arrangements, it has been concluded that they collectively constitute a joint operation on the basis that decisions about relevant activities require unanimous consent. The resulting efficiencies are shared between Rio Tinto and Robe River Iron Associates (Robe River), and the parties fund all of the cash flow requirements of Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. Each of the partners in the joint operation is able to request the other to construct assets on their tenure to increase the capacity of the rail and port infrastructure network. The requesting partner\u2019s (Asset User\u2019s) share of the capacity of the network will increase by the capacity of the newly constructed asset, but generally that capacity may be provided from any of the network assets. The Asset User will pay an annual charge - Committed Use Charge (CUC) - over a contractually specified period irrespective of network usage. The constructing partner (Asset Owner) has an ongoing obligation to make available capacity from those assets and to maintain the assets in good working order as required under relevant State Agreements and associated tenure. The arrangements are managed through two wholly-owned subsidiaries: Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. We have also considered whether the CUC arrangements give rise to a lease between the Asset Owner and the Asset User. We have concluded that they do not, as there is no specified asset; rather the Asset User has a first priority right to the capacity in the CUC asset. This treatment was grandfathered on adoption of IFRS 16 on 1 January 2019, following an assessment under the preceding standards IAS 17 \u201cLeases\u201d and IFRIC 4 \u201cDetermining whether an arrangement contains a lease\u201d, with no change to the conclusion under IFRS 16 for subsequent expenditure subject to the existing CUC arrangements. Management considers that these arrangements are unique and has used judgement to apply the principles of IFRS to the accounting for the arrangements as described above. The obligation of the Asset Owner to make capacity available is fulfilled over time and not at a point in time. The CUC arrangement is therefore an executory contract as defined under IAS 37, whereby neither party has performed any of its obligations, or both parties have partially performed their obligations to an equal extent, and so the CUC payments are expensed as incurred. An alternative interpretation of the fact pattern could have resulted in a gross presentation in the Group\u2019s balance sheet with an asset and a corresponding liability to reflect the present value of the CUC payments. The Asset User is a wholly-owned subsidiary of Rio Tinto, whereas the Asset Owner is a joint operation. This impact would be some US$824 million (calculated on the basis of grossing up the tax written down value of the CUC assets). Other methods of calculating the gross-up might give rise to different numbers. |
Other relevant judgements | Accounting for Minera Escondida Ltda (Escondida) |
Judgement has been applied on the determination that Escondida is a joint venture. We have based this on the nature of significant commercial decisions, including those in relation to capital expenditure, which require approval of both Rio Tinto and its partner BHP (holders of a 57.5% interest). In contrast, our partner has assessed Rio Tinto\u2019s rights as protective and concluded that it controls Escondida through its rights to direct relevant activities. Adoption of the equivalent judgement by the Group would result in reclassification of Escondida from a joint venture to an associate, with no other financial reporting consequence since accounting under the equity method would remain in place. |
Other relevant judgements | Contingencies |
Disclosure is made for material contingent liabilities unless the possibility of any loss arising is considered remote based on our judgement and legal advice. These are quantified unless, in our judgement, the amount cannot be reliably estimated. The unit of account for claims is the matter taken as a whole and therefore when a provision has been recorded for the best estimate of the cost to settle the obligation there is no further contingent liability component. This means that when a provision is recognised for the best estimate of the expenditure required to settle the present obligation from a single past event, a further contingent liability is not reported for the maximum potential exposure in excess of that already provided. We have not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of our companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur. The Group may in the future incur judgements or enter into settlements of claims that could lead to material cash outflows. |
Other relevant judgements | Identification of functional currency |
We present our financial statements in USD, as that presentation currency most reliably reflects the global business performance of the Group as a whole. The functional currency for each subsidiary, unincorporated arrangement, joint operation and equity accounted unit is the currency of the primary economic environment in which it operates. For businesses that reside in developed economies, the functional currency is generally the currency of the country in which it operates because of the dominance of locally incurred costs. If the business resides in an emerging economy, the USD is generally identified to be the functional currency as a higher proportion of costs, particularly imported goods and services, are agreed and paid in USD, in common with other international investors. Determination of functional currency involves judgement, and other companies may make different judgements based on similar facts. The determination of functional currency affects the measurement of non-current assets included in the balance sheet and, as a consequence, the depreciation and amortisation of those assets included in the income statement. It also impacts exchange gains and losses included in the income statement and in equity. We also apply judgement in determining whether settlement of certain intragroup loans is neither planned nor likely in the foreseeable future and, therefore, whether the associated exchange gains and losses can be taken to equity. During 2025, A$16,265 million (2024: A$15,717 million) of intragroup loans continued to meet these criteria; associated exchange gains and losses are taken to equity. |
Other relevant judgements | Identification of functional currency |
We present our financial statements in USD, as that presentation currency most reliably reflects the global business performance of the Group as a whole. The functional currency for each subsidiary, unincorporated arrangement, joint operation and equity accounted unit is the currency of the primary economic environment in which it operates. For businesses that reside in developed economies, the functional currency is generally the currency of the country in which it operates because of the dominance of locally incurred costs. If the business resides in an emerging economy, the USD is generally identified to be the functional currency as a higher proportion of costs, particularly imported goods and services, are agreed and paid in USD, in common with other international investors. Determination of functional currency involves judgement, and other companies may make different judgements based on similar facts. The determination of functional currency affects the measurement of non-current assets included in the balance sheet and, as a consequence, the depreciation and amortisation of those assets included in the income statement. It also impacts exchange gains and losses included in the income statement and in equity. We also apply judgement in determining whether settlement of certain intragroup loans is neither planned nor likely in the foreseeable future and, therefore, whether the associated exchange gains and losses can be taken to equity. During 2025, A$16,265 million (2024: A$15,717 million) of intragroup loans continued to meet these criteria; associated exchange gains and losses are taken to equity. |
Full-year average | Year-end | |||||
One unit of local currency buys the following number of USD | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 |
Pound sterling | 1.32 | 1.28 | 1.24 | 1.35 | 1.25 | 1.28 |
Australian dollar | 0.64 | 0.66 | 0.66 | 0.67 | 0.62 | 0.69 |
Canadian dollar | 0.72 | 0.73 | 0.74 | 0.73 | 0.70 | 0.76 |
Euro | 1.13 | 1.08 | 1.08 | 1.18 | 1.04 | 1.11 |
South African rand | 0.056 | 0.055 | 0.054 | 0.060 | 0.053 | 0.054 |
Financial reporting considerations and sensitivities related to climate change | Page |
Carbon tax sensitivity on impairment charge (note 4) | |
Operating expenditure spend on decarbonisation (note 7 - footnote (f)) | |
Water rights - climate impact on indefinite life (note 12) | |
Carbon abatement spend on procurement of carbon units and renewable energy certificates (note 12 - footnote (a)) | |
Estimation of asset lives (note 13) | |
Additions to property, plant and equipment with a primary purpose of reducing carbon emissions (note 13 - footnote (d)) | |
Useful economic lives of power generating assets (note 13) | |
Close-down, restoration and environmental cost (note 14) | |
Renewable PPAs accounted for as derivatives (note 25 (iv)) | |
Decarbonisation capital commitments (note 37) |
Reportable segment | Principal activities |
Aluminium & Lithium | Bauxite mining; alumina refining; aluminium smelting and recycling; mining and processing of lithium. |
Copper | Mining and refining of copper, gold, silver, molybdenum, other by-products and exploration activities. |
Iron Ore | Iron ore mining and salt and gypsum production in Western Australia; iron concentrate and pellets from the Iron Ore Company of Canada. |
Segmental revenue US$m | Underlying EBITDA US$m | Capital expenditure(b) US$m | |||||||
2025 | 2024 Restated(a) | 2023 Restated(a) | 2025 | 2024 Restated(a) | 2023 Restated(a) | 2025 | 2024 Restated(a) | 2023 Restated(a) | |
Aluminium & Lithium | 17,056 | 13,650 | 12,285 | 4,574 | 3,552 | 2,136 | 3,346 | 1,848 | 1,357 |
Copper | 13,729 | 9,275 | 6,678 | 7,369 | 3,437 | 1,960 | 1,872 | 2,055 | 1,976 |
Iron Ore | 28,989 | 31,601 | 34,539 | 15,194 | 16,985 | 20,915 | 4,422 | 3,303 | 2,952 |
Reportable segments total | 59,774 | 54,526 | 53,502 | 27,137 | 23,974 | 25,011 | 9,640 | 7,206 | 6,285 |
Simandou iron ore project | \u2013 | \u2013 | \u2013 | (96) | (22) | (539) | 2,219 | 1,832 | 266 |
Other operations | 3,114 | 3,201 | 3,576 | 50 | 517 | 532 | 334 | 419 | 413 |
Inter-segment transactions | (13) | (21) | (21) | \u2013 | \u2013 | \u2013 | |||
Share of equity accounted units(c) | (5,237) | (4,048) | (3,016) | ||||||
Central pension costs, share-based payments, insurance and derivatives | (74) | 153 | 168 | ||||||
Restructuring, project and one-off costs | (606) | (254) | (190) | ||||||
Central costs | (818) | (816) | (990) | ||||||
Central exploration and evaluation expenditures | (230) | (238) | (100) | ||||||
Proceeds from disposal of property, plant and equipment | 50 | 30 | 9 | ||||||
Other items | 92 | 134 | 113 | ||||||
Consolidated sales revenue | 57,638 | 53,658 | 54,041 | ||||||
Purchases of property, plant and equipment and intangible assets | 12,335 | 9,621 | 7,086 | ||||||
Underlying EBITDA(d) | 25,363 | 23,314 | 23,892 |
(a) | During the year, we simplified our product group structure to 3 product groups: Iron Ore, Aluminium & Lithium and Copper. Accordingly, prior year amounts have been restated for\u00a0comparability. |
(b) | Capital expenditure for reportable segments includes the net cash outflow on purchases less disposals of property, plant and equipment, capitalised evaluation costs and purchases less disposals of other intangible assets. The details provided include 100% of subsidiaries\u2019 capital expenditure and Rio Tinto\u2019s share of the capital expenditure of joint\u00a0operations. |
(c) | Consolidated sales revenue includes subsidiary sales of US$311 million (2024: US$213 million; 2023: US$20 million) to equity accounted units which are not included in segmental revenue. Segmental revenue includes the Group\u2019s proportionate share of product sales by equity accounted units (after adjusting for sales to subsidiaries) of US$5,548 million (2024: US$4,261\u00a0million; 2023: US$3,036 million) which are not included in consolidated sales revenue. |
(d) | Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in 2025 was US$795\u00a0million (2024: US$935\u00a0million; 2023: US$855\u00a0million - excluding Simandou). Approximately 40% of the spend was by copper, 32% by central exploration, 19% by Iron Ore (which includes Iron Ore Company of Canada), 8% by other operations and 1% by Aluminium & Lithium. All qualifying expenditure relating to Simandou has been capitalised since October 2023, while qualifying expenditure on the Rincon lithium project has been capitalised since 1 July 2024. |
Other relevant judgements | Exclusions from underlying EBITDA |
Items excluded from profit after tax are those gains and losses that, individually or in aggregate with similar items, are of a nature and size to require exclusion in order to provide additional insight into the underlying business performance. The following items are excluded from profit after tax in arriving at underlying EBITDA in each year irrespective of materiality: \u2022 all depreciation and amortisation in subsidiaries and the corresponding share of profit in EAUs \u2022 all taxation and finance items in subsidiaries and the corresponding share of profit in EAUs \u2022 unrealised gains and losses on embedded derivatives not qualifying for hedge accounting (including foreign exchange) \u2022 net gains and losses on consolidation or disposal of interests in businesses \u2022 impairment charges net of reversals including corresponding amounts in share of profit in EAUs \u2022 the underlying EBITDA of discontinued operations \u2022 adjustments to closure provisions where the adjustment is associated with an impairment charge and for legacy sites where the disturbance or environmental contamination relates to the pre-acquisition period. In addition, there is a final judgemental category which includes, where applicable, other credits and charges that, individually or in aggregate if of a similar type, are of a nature or size to require exclusion in order to provide additional insight into underlying business performance. In 2025 and 2024, there were no items in this category. In 2023, this included all re-estimates of the closure provisions for fully impaired sites identified in the second half of the year due to the materiality of the adjustment in aggregate. |
2025 US$m | 2024 US$m | 2023 US$m | |
Profit after tax for the year | 10,249 | 11,574 | 9,953 |
Taxation | 4,319 | 4,041 | 3,832 |
Profit before taxation | 14,568 | 15,615 | 13,785 |
Depreciation and amortisation in subsidiaries, excluding capitalised depreciation (a) | 6,271 | 5,744 | 4,976 |
Depreciation and amortisation in equity accounted units | 594 | 559 | 484 |
Finance items in subsidiaries | 1,846 | 876 | 1,713 |
Taxation and finance items in equity accounted units | 1,514 | 1,002 | 741 |
Unrealised (gains)/losses on embedded commodity and currency derivatives not qualifying for hedge accounting (including\u00a0foreign\u00a0exchange) | (64) | 73 | (15) |
Gains on consolidation and disposal of interests in businesses(b) | \u2013 | (1,214) | \u2013 |
Impairment charges net of reversals (note 4) | 341 | 573 | 936 |
Change in closure estimates (non-operating and fully impaired sites)(c) | 293 | 86 | 1,272 |
Underlying EBITDA | 25,363 | 23,314 | 23,892 |
Reportable segment | Principal activities |
Aluminium & Lithium | Bauxite mining; alumina refining; aluminium smelting and recycling; mining and processing of lithium. |
Copper | Mining and refining of copper, gold, silver, molybdenum, other by-products and exploration activities. |
Iron Ore | Iron ore mining and salt and gypsum production in Western Australia; iron concentrate and pellets from the Iron Ore Company of Canada. |
2025 | 2024 | 2023 | |
Net earnings attributable to owners of Rio Tinto (US$ million) | 9,966 | 11,552 | 10,058 |
Weighted average number of shares (millions)(a) | 1,624.0 | 1,623.1 | 1,621.4 |
Basic earnings per ordinary share (cents) | 613.7 | 711.7 | 620.3 |
2025 | 2024 | 2023 | |
Net earnings attributable to owners of Rio Tinto (US$ million) | 9,966 | 11,552 | 10,058 |
Weighted average number of shares (millions)(a) | 1,638.0 | 1,633.4 | 1,631.5 |
Diluted earnings per share attributable to ordinary shareholders of Rio Tinto (cents) | 608.4 | 707.2 | 616.5 |
2025 US cents | 2024 US cents | 2023 US cents | |
Ordinary dividends per share: announced with the results for the year | 254.0 | 225.0 | 258.0 |
2025 US cents | 2024 US cents | 2023 US cents | |
Previous year final - paid during the year | 225.0 | 258.0 | 225.0 |
Interim - paid during the year | 148.0 | 177.0 | 177.0 |
Total paid during the year | 373.0 | 435.0 | 402.0 |
2025 US$m | 2024 US$m | 2023 US$m | |
Rio Tinto plc previous year final dividend payable | 2,885 | 3,185 | 2,875 |
Rio Tinto plc interim dividend payable | 1,839 | 2,238 | 2,147 |
Rio Tinto Limited previous year final dividend payable | 878 | 936 | 815 |
Rio Tinto Limited interim dividend payable | 543 | 666 | 629 |
Dividends payable during the year | 6,145 | 7,025 | 6,466 |
Net movement of unclaimed dividends in the year | \u2013 | \u2013 | 4 |
Dividends paid during the year | 6,145 | 7,025 | 6,470 |
Other relevant judgements | Determination of CGUs |
Judgement is applied to identify the Group\u2019s CGUs, particularly when assets belong to integrated operations, and changes in CGUs could impact impairment charges and reversals. The most relevant judgement for grouping continues to relate to the grouping of Rio\u00a0Tinto Iron and Titanium Quebec Operations and QIT Madagascar Minerals (QMM) as a single CGU on the basis that they are vertically integrated operations and there is no active market for QMM\u2019s ilmenite. The most relevant judgement for disaggregation continues to relate to our bauxite and alumina refining operations in Australia, whereby we treat the Weipa bauxite mine as a separate CGU from the downstream assets at Gladstone. Currently, Weipa sells the majority of its bauxite to third-party customers, whereas the alumina refineries are supplied with all of their bauxite internally. |
Key judgement | Indicators of impairment and impairment reversals |
Our mining operations require large upfront investment with long periods of construction and management of geotechnical stability risks from large-scale excavation of open pits or underground tunnelling. During operation and towards the end of mine life, the economic performance of assets is subject to greater influence by short-term market dynamics, which can impact the economic feasibility of operations and life extension options. Together these represent our most significant sources of uncertainty relating to the identification of indicators of impairment and impairment reversal. The underground expansion of our Oyu Tolgoi copper and gold mine in Mongolia is closely monitored for indicators of impairment and impairment reversal, as it was previously impaired, meaning that carrying value and fair value were equal at that date. During 2025, development of infrastructure to support the underground mine was completed, however the production ramp up still requires several years of construction. The complexity and inherent uncertainty of ramping up block caving means we have not identified an indicator for impairment reversal. |
2025 | 2024 | 2023 | |||||
Note | Pre-tax amount US$m | Taxation US$m | Non- controlling interests US$m | Net amount US$m | Pre-tax amount US$m | Pre-tax amount US$m | |
Other operations - RTITQO | (122) | 36 | \u2013 | (86) | \u2013 | \u2013 | |
Aluminium & Lithium - Alumina refineries | (219) | 64 | \u2013 | (155) | (461) | (1,175) | |
Aluminium & Lithium - Tiwai Point | \u2013 | \u2013 | \u2013 | \u2013 | 41 | \u2013 | |
Aluminium & Lithium - MRN | \u2013 | \u2013 | \u2013 | \u2013 | (23) | \u2013 | |
Other operations - Diavik | \u2013 | \u2013 | \u2013 | \u2013 | (118) | \u2013 | |
Other operations - Simandou | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | 239 | |
Net impairment charges | (341) | 100 | \u2013 | (241) | (561) | (936) | |
Allocated as: | |||||||
Intangible assets | 12 | \u2013 | \u2013 | 231 | |||
Property, plant and equipment | 13 | (341) | (538) | (1,167) | |||
Share of profit after tax in EAUs | \u2013 | (23) | \u2013 | ||||
Net impairment charges | (341) | (561) | (936) | ||||
Comprising: | |||||||
Impairment charges of consolidated\u00a0balances | (341) | (538) | (936) | ||||
Impairment charges related to EAUs (pre-tax) | \u2013 | (35) | \u2013 | ||||
Net impairment charges in the financial information by | (341) | (573) | (936) | ||||
Taxation (including related to EAUs) | 100 | 39 | 499 | ||||
Non-controlling interests | \u2013 | \u2013 | (215) | ||||
Net impairment charges in the income\u00a0statement | (241) | (534) | (652) |
Impact of climate change on our business | Carbon tax sensitivity on RTITQO impairment charge |
To further illustrate the sensitivity of the impairment outcome to the cost of carbon, which we consider the most judgmental input, the post-tax net present value of the cash-generating unit would be US$250 million lower if the carbon tax per tonne was increased by 25% from 2040 with all other valuation inputs remaining unchanged. To mitigate this risk, management has identified programs which we expect to reduce the carbon emissions of these operations and therefore reduce the forecast carbon cost to the RTITQO business. |
Other relevant judgements | Determination of CGUs |
Judgement is applied to identify the Group\u2019s CGUs, particularly when assets belong to integrated operations, and changes in CGUs could impact impairment charges and reversals. The most relevant judgement for grouping continues to relate to the grouping of Rio\u00a0Tinto Iron and Titanium Quebec Operations and QIT Madagascar Minerals (QMM) as a single CGU on the basis that they are vertically integrated operations and there is no active market for QMM\u2019s ilmenite. The most relevant judgement for disaggregation continues to relate to our bauxite and alumina refining operations in Australia, whereby we treat the Weipa bauxite mine as a separate CGU from the downstream assets at Gladstone. Currently, Weipa sells the majority of its bauxite to third-party customers, whereas the alumina refineries are supplied with all of their bauxite internally. |
Key judgement | Indicators of impairment and impairment reversals |
Our mining operations require large upfront investment with long periods of construction and management of geotechnical stability risks from large-scale excavation of open pits or underground tunnelling. During operation and towards the end of mine life, the economic performance of assets is subject to greater influence by short-term market dynamics, which can impact the economic feasibility of operations and life extension options. Together these represent our most significant sources of uncertainty relating to the identification of indicators of impairment and impairment reversal. The underground expansion of our Oyu Tolgoi copper and gold mine in Mongolia is closely monitored for indicators of impairment and impairment reversal, as it was previously impaired, meaning that carrying value and fair value were equal at that date. During 2025, development of infrastructure to support the underground mine was completed, however the production ramp up still requires several years of construction. The complexity and inherent uncertainty of ramping up block caving means we have not identified an indicator for impairment reversal. |
Fair value of identifiable assets acquired and liabilities assumed | Final fair value at 6 March 2025 US$m |
Intangible assets | 2,301 |
Property, plant and equipment | 4,814 |
Cash and cash equivalents | 293 |
Borrowings (a) | (1,599) |
Close-down, restoration and environmental provisions | (319) |
Other provisions | (375) |
Other assets and liabilities | 155 |
Deferred tax liabilities (net of deferred tax assets) | (817) |
Net assets | 4,453 |
Non-controlling interests (NCI)(b) | (298) |
Goodwill (refer note 11) | 2,146 |
Net attributable assets (including Goodwill) | 6,301 |
Presentation in cash flow statement | 2025 US$m |
Cash payment in consideration of equity to shareholders of Arcadium Lithium plc | 6,301 |
less: cash and cash equivalents balance acquired | (293) |
Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired | 6,008 |
Impact of the acquisition on net debt | 2025 US$m |
Borrowings of Arcadium Lithium | 1,599 |
less: convertible loan notes settled on change of control | (400) |
less: cash and cash equivalents acquired | (293) |
less: loan advanced to Arcadium prior to acquisition | (200) |
Acquired net debt | 706 |
Cash payment in consideration of equity to shareholders of Arcadium Lithium plc | 6,301 |
Cash payment to settle convertible loan notes | 400 |
Change in net debt on acquisition | 7,407 |
Key judgement | Purchase price allocation from business combination |
The allocation of the US$6,301 million purchase consideration to the identifiable assets and liabilities of Arcadium Lithium plc is a significant judgement as the majority of the acquired business value is dependent on the development of mines and processing facilities and the profitable extraction and sale of lithium products. The fair value of assets acquired has been determined based on discounted forecast future cash-flows, adjusted for a country risk premium depending on the location of the assets. At 6\u00a0March 2025, this resulted in a weighted post-tax real-terms discount rate of 8.3%. The forecast future cash flows have been estimated using a long-run lithium carbonate price towards the upper end of a consensus range outlook at 6\u00a0March 2025, applied to projected production and cost data from reserves and resource life of mine plan modelling. Alternative inputs to the discounted cash flow models would have resulted in a different weighting of the purchase price allocation principally between intangible assets, property, plant and equipment and, consequently, deferred tax liabilities and goodwill. |
2025 % | 2024 % | 2023 % | 2025 US$m | 2024 US$m | 2023 US$m | |
Greater China | 57.3 | 57.4 | 59.6 | 33,038 | 30,814 | 32,193 |
US | 16.7 | 16.8 | 13.9 | 9,657 | 9,007 | 7,516 |
Japan | 5.7 | 6.5 | 6.9 | 3,266 | 3,470 | 3,727 |
Europe (excluding UK) | 5.8 | 4.8 | 5.3 | 3,364 | 2,580 | 2,859 |
South Korea | 3.4 | 3.6 | 4.3 | 1,958 | 1,940 | 2,300 |
Asia (excluding Greater China, Japan and South Korea) | 3.5 | 3.3 | 2.9 | 2,007 | 1,778 | 1,581 |
Canada | 3.0 | 2.9 | 2.9 | 1,722 | 1,562 | 1,588 |
Australia | 1.6 | 2.0 | 1.7 | 909 | 1,076 | 923 |
UK | 0.2 | 0.3 | 0.1 | 92 | 143 | 81 |
Other countries | 2.8 | 2.4 | 2.4 | 1,625 | 1,288 | 1,273 |
Consolidated sales revenue | 100 | 100 | 100 | 57,638 | 53,658 | 54,041 |
2025 | 2024 | 2023 | |||||||
Revenue from contracts with customers US$m | Other revenue (a) US$m | Consolidated sales revenue US$m | Revenue from contracts with customers US$m | Other revenue (a) US$m | Consolidated sales revenue US$m | Revenue from contracts with customers US$m | Other revenue (a) US$m | Consolidated sales revenue US$m | |
Iron ore | 28,529 | (153) | 28,376 | 31,334 | (530) | 30,804 | 33,383 | 389 | 33,772 |
Aluminium, alumina and bauxite | 15,245 | 150 | 15,395 | 12,947 | 48 | 12,995 | 12,039 | (63) | 11,976 |
Copper | 6,303 | 361 | 6,664 | 4,791 | (63) | 4,728 | 3,219 | (1) | 3,218 |
Industrial minerals (comprising titanium dioxide slag, borates and salt) | 2,373 | (3) | 2,370 | 2,678 | (3) | 2,675 | 2,806 | (8) | 2,798 |
Gold | 1,883 | 39 | 1,922 | 788 | 9 | 797 | 470 | 6 | 476 |
Lithium | 944 | \u2013 | 944 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Other products and freight services (b) | 1,963 | 4 | 1,967 | 1,664 | (5) | 1,659 | 1,804 | (3) | 1,801 |
Consolidated sales revenue | 57,240 | 398 | 57,638 | 54,202 | (544) | 53,658 | 53,721 | 320 | 54,041 |
2025 % | 2024 % | 2023 % | 2025 US$m | 2024 US$m | 2023 US$m | |
Greater China | 57.3 | 57.4 | 59.6 | 33,038 | 30,814 | 32,193 |
US | 16.7 | 16.8 | 13.9 | 9,657 | 9,007 | 7,516 |
Japan | 5.7 | 6.5 | 6.9 | 3,266 | 3,470 | 3,727 |
Europe (excluding UK) | 5.8 | 4.8 | 5.3 | 3,364 | 2,580 | 2,859 |
South Korea | 3.4 | 3.6 | 4.3 | 1,958 | 1,940 | 2,300 |
Asia (excluding Greater China, Japan and South Korea) | 3.5 | 3.3 | 2.9 | 2,007 | 1,778 | 1,581 |
Canada | 3.0 | 2.9 | 2.9 | 1,722 | 1,562 | 1,588 |
Australia | 1.6 | 2.0 | 1.7 | 909 | 1,076 | 923 |
UK | 0.2 | 0.3 | 0.1 | 92 | 143 | 81 |
Other countries | 2.8 | 2.4 | 2.4 | 1,625 | 1,288 | 1,273 |
Consolidated sales revenue | 100 | 100 | 100 | 57,638 | 53,658 | 54,041 |
2025 | 2024 | 2023 | |||||||
Revenue from contracts with customers US$m | Other revenue (a) US$m | Consolidated sales revenue US$m | Revenue from contracts with customers US$m | Other revenue (a) US$m | Consolidated sales revenue US$m | Revenue from contracts with customers US$m | Other revenue (a) US$m | Consolidated sales revenue US$m | |
Iron ore | 28,529 | (153) | 28,376 | 31,334 | (530) | 30,804 | 33,383 | 389 | 33,772 |
Aluminium, alumina and bauxite | 15,245 | 150 | 15,395 | 12,947 | 48 | 12,995 | 12,039 | (63) | 11,976 |
Copper | 6,303 | 361 | 6,664 | 4,791 | (63) | 4,728 | 3,219 | (1) | 3,218 |
Industrial minerals (comprising titanium dioxide slag, borates and salt) | 2,373 | (3) | 2,370 | 2,678 | (3) | 2,675 | 2,806 | (8) | 2,798 |
Gold | 1,883 | 39 | 1,922 | 788 | 9 | 797 | 470 | 6 | 476 |
Lithium | 944 | \u2013 | 944 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Other products and freight services (b) | 1,963 | 4 | 1,967 | 1,664 | (5) | 1,659 | 1,804 | (3) | 1,801 |
Consolidated sales revenue | 57,240 | 398 | 57,638 | 54,202 | (544) | 53,658 | 53,721 | 320 | 54,041 |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Raw materials, consumables, repairs and maintenance | 13,201 | 12,115 | 12,019 | |
Amortisation of intangible assets | 12 | 312 | 138 | 124 |
Depreciation of property, plant and equipment | 13 | 6,265 | 5,780 | 5,210 |
Employment costs | 27 | 7,605 | 7,055 | 6,636 |
Shipping and other freight costs | 2,751 | 2,942 | 2,781 | |
Decrease in finished goods and work in progress(a) | 1,807 | 2,407 | 1,152 | |
Royalties | 2,952 | 2,938 | 3,135 | |
Amounts charged by equity accounted units (b) | 1,029 | 875 | 1,163 | |
Net foreign exchange losses/(gains) | 171 | (193) | (47) | |
Provisions (including exchange differences on provisions) | 998 | 398 | 1,491 | |
Research and development | 524 | 398 | 245 | |
Other external costs (c) | 6,441 | 5,037 | 5,295 | |
Costs included above capitalised or shown on a separate line item (d) | (1,312) | (1,203) | (1,331) | |
Other operating income(e) | (960) | (942) | (821) | |
Net operating costs (excluding items disclosed separately) (f) | 41,784 | 37,745 | 37,052 |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Raw materials, consumables, repairs and maintenance | 13,201 | 12,115 | 12,019 | |
Amortisation of intangible assets | 12 | 312 | 138 | 124 |
Depreciation of property, plant and equipment | 13 | 6,265 | 5,780 | 5,210 |
Employment costs | 27 | 7,605 | 7,055 | 6,636 |
Shipping and other freight costs | 2,751 | 2,942 | 2,781 | |
Decrease in finished goods and work in progress(a) | 1,807 | 2,407 | 1,152 | |
Royalties | 2,952 | 2,938 | 3,135 | |
Amounts charged by equity accounted units (b) | 1,029 | 875 | 1,163 | |
Net foreign exchange losses/(gains) | 171 | (193) | (47) | |
Provisions (including exchange differences on provisions) | 998 | 398 | 1,491 | |
Research and development | 524 | 398 | 245 | |
Other external costs (c) | 6,441 | 5,037 | 5,295 | |
Costs included above capitalised or shown on a separate line item (d) | (1,312) | (1,203) | (1,331) | |
Other operating income(e) | (960) | (942) | (821) | |
Net operating costs (excluding items disclosed separately) (f) | 41,784 | 37,745 | 37,052 |
2025 US$m | 2024 US$m | 2023 US$m | |
Expenditure in the year (inclusive of net cash proceeds of US$213 million (2024 : nil ; 2023 : US$88 million) on disposal of undeveloped projects) (a) | (698) | (1,337) | (1,684) |
Non-cash movements and non-cash proceeds on disposal of undeveloped projects | (20) | (15) | (17) |
Amount capitalised during the year | 141 | 416 | 471 |
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects) per income statement | (577) | (936) | (1,230) |
Comprising: | |||
\u2013 exploration and evaluation expenditures | (795) | (935) | (1,384) |
\u2013 profit/(loss) from disposal of interests in undeveloped projects (a) | 218 | (1) | 154 |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Finance income from loans to equity accounted units | 72 | 24 | 4 | |
Other finance income (including bank deposits, net investment in leases, and other financial\u00a0assets) | 393 | 490 | 532 | |
Total finance income | 465 | 514 | 536 | |
Interest on: | ||||
\u2013 financial liabilities at amortised cost (excluding lease liabilities) and associated derivatives | (1,388) | (1,126) | (1,209) | |
\u2013 lease liabilities | (74) | (70) | (50) | |
Fair value movements: | ||||
\u2013 bonds designated as hedged items in fair value hedges (a) | (234) | (9) | (190) | |
\u2013 derivatives designated as hedging instruments in fair value hedges (a) | 223 | 18 | 203 | |
Amounts capitalised (b) | 13 | 411 | 424 | 279 |
Total finance costs | (1,062) | (763) | (967) |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Finance income from loans to equity accounted units | 72 | 24 | 4 | |
Other finance income (including bank deposits, net investment in leases, and other financial\u00a0assets) | 393 | 490 | 532 | |
Total finance income | 465 | 514 | 536 | |
Interest on: | ||||
\u2013 financial liabilities at amortised cost (excluding lease liabilities) and associated derivatives | (1,388) | (1,126) | (1,209) | |
\u2013 lease liabilities | (74) | (70) | (50) | |
Fair value movements: | ||||
\u2013 bonds designated as hedged items in fair value hedges (a) | (234) | (9) | (190) | |
\u2013 derivatives designated as hedging instruments in fair value hedges (a) | 223 | 18 | 203 | |
Amounts capitalised (b) | 13 | 411 | 424 | 279 |
Total finance costs | (1,062) | (763) | (967) |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Finance income from loans to equity accounted units | 72 | 24 | 4 | |
Other finance income (including bank deposits, net investment in leases, and other financial\u00a0assets) | 393 | 490 | 532 | |
Total finance income | 465 | 514 | 536 | |
Interest on: | ||||
\u2013 financial liabilities at amortised cost (excluding lease liabilities) and associated derivatives | (1,388) | (1,126) | (1,209) | |
\u2013 lease liabilities | (74) | (70) | (50) | |
Fair value movements: | ||||
\u2013 bonds designated as hedged items in fair value hedges (a) | (234) | (9) | (190) | |
\u2013 derivatives designated as hedging instruments in fair value hedges (a) | 223 | 18 | 203 | |
Amounts capitalised (b) | 13 | 411 | 424 | 279 |
Total finance costs | (1,062) | (763) | (967) |
Other relevant judgements | Uncertain tax positions |
The Group operates across a large number of jurisdictions and is subject to review and challenge by local tax authorities on a range of tax matters. Where the amount of tax payable or recoverable is uncertain, whether due to local tax authority challenge or due to uncertainty regarding the appropriate treatment, judgement is required to assess the probability that the adopted treatment will be accepted. In accordance with IFRIC 23 \u201cUncertainty over Income Tax Treatments\u201d, if it is not probable that the treatment will be accepted, the Group accounts for uncertain tax provisions for all matters worldwide based on the Group\u2019s judgement of the most likely amount of the liability or recovery, or, where there is a wide range of possible outcomes, using a probability weighted average approach. Uncertain tax provisions include any related interest and penalties. The Mongolian Tax Authority has issued a number of tax assessments dating back to 2013, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. As required by Mongolian law, we have paid all amounts due in respect of the assessments, totalling US$438 million (2024: US$438 million), pending resolution of the disputes through arbitration. The assessments also seek to disallow tax deductions, including future tax deductions in respect of amounts accrued and payable in the future. The International Arbitration hearings were held in September 2025. The parties are now awaiting the arbitration Tribunal to provide a final decision. Management regularly re-evaluates the likely outcomes from the dispute based on the progress of the arbitration proceedings, legal advice, and discussions with the Government of Mongolia. In 2024, a provision of US$295 million for uncertain tax positions was recorded, which continues to reflect our best estimate of the likely outcome from the dispute. It is possible that the outcome of these proceedings could result in a change in our estimated exposure in respect of the matters under dispute. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the recovery of certain deferred tax assets, further details of which are provided in note 15. |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
\u2013 Current | 4,017 | 4,434 | 5,092 | |
\u2013 Deferred | 15 | 302 | (393) | (1,260) |
Total taxation charge | 4,319 | 4,041 | 3,832 |
2025 US$m | 2024 US$m | 2023 US$m | |
Profit before taxation(a) | 14,568 | 15,615 | 13,785 |
Prima facie tax payable at UK rate of 25.0% ( 2024 : 25.0% ; 2023: 23.5% ) (b) | 3,642 | 3,904 | 3,239 |
Higher rate of taxation of 30% on Australian earnings (b) | 566 | 613 | 835 |
Other tax rates applicable outside the UK and Australia | (164) | (303) | (2) |
Tax effect of profit from equity accounted units, related impairments and expenses (a) | (370) | (210) | (159) |
Impact of changes in tax rates | 21 | (15) | (173) |
Resource depletion allowances | (10) | (10) | (11) |
Recognition of previously unrecognised deferred tax assets (c) | (284) | (640) | (157) |
Write-down of previously recognised deferred tax assets | 175 | 203 | \u2013 |
Utilisation of previously unrecognised deferred tax assets | (91) | (42) | (10) |
Current year unrecognised deferred tax assets (d) | 346 | 185 | 567 |
Uncertain tax provision(e) | \u2013 | 295 | \u2013 |
Deferred tax arising on internal sale of assets in Canadian operations(f) | \u2013 | \u2013 | (364) |
Adjustments in respect of prior periods | 93 | (13) | 31 |
Other items(g) | 395 | 74 | 36 |
Total taxation charge | 4,319 | 4,041 | 3,832 |
2025 US$m | 2024 US$m | 2023 US$m | |
Tax credit/(charge) on fair value movements | 29 | (10) | 1 |
Tax (charge)/credit on remeasurement gains/(losses) on pension and post-retirement healthcare plans | (41) | (22) | 152 |
Deferred tax relating to components of other comprehensive income for the year (note 15) | (12) | (32) | 153 |
2025 US$m | 2024 US$m | |
Australia | 33,560 | 29,177 |
Canada | 18,890 | 14,444 |
Mongolia | 15,485 | 15,244 |
US | 7,557 | 7,111 |
Africa | 8,996 | 5,597 |
South America | 10,024 | 3,704 |
Europe (excluding UK) | 291 | 216 |
UK | 142 | 109 |
Other countries(b) | 3,953 | 1,739 |
Total non-current assets other than excluded items | 98,898 | 77,341 |
Non-current assets excluded from analysis above: | ||
Deferred tax assets | 4,288 | 4,016 |
Other financial assets | 1,699 | 1,090 |
Quasi-equity loans to equity accounted units(a) | 5 | 5 |
Receivables and other assets | 1,643 | 1,214 |
Total non-current assets per balance sheet | 106,533 | 83,666 |
2025 US$m | 2024 US$m | |
Net book value | ||
At 1 January | 727 | 797 |
Adjustment on currency translation | 76 | (45) |
Company no longer consolidated | \u2013 | (25) |
Newly consolidated operations(a) | 2,146 | \u2013 |
At 31 December | 2,949 | 727 |
\u2013 cost | 17,930 | 14,959 |
\u2013 accumulated impairment | (14,981) | (14,232) |
At 1 January | ||
\u2013 cost | 14,959 | 16,237 |
\u2013 accumulated impairment | (14,232) | (15,440) |
2025 US$m | 2024 US$m | |
Net book value | ||
Lithium(a) | 2,146 | \u2013 |
Richards Bay Minerals | 412 | 364 |
Pilbara | 334 | 310 |
Dampier Salt | 57 | 53 |
Total | 2,949 | 727 |
Key accounting estimate | Impairment test of goodwill |
The recoverable amount has been assessed by reference to the FVLCD methodology described in note 4, utilising post-tax cash flows expressed in real terms discounted at a weighted discount rate of 8.3% and classified as level 3 in the fair value hierarchy. The underlying cash flows are based on operating assumptions that focus on delivering the committed projects to reach capacity of 200 ktpa by 2028, accounting for 82% of the recoverable amount. Further expansions that bring our total capacity to 370\u00a0ktpa by 2035 represent 18% of the recoverable amount, with expansions having been risk adjusted for project specific factors, including in Argentina for the benefit of the Regime for Large Investments (\u201cRIGI\u201d) potentially not being available. The recoverable amount exceeds the carrying value by US$1.3 billion and accordingly no impairment has been recorded. The key assumption to which the determination is most sensitive is the long-run price for lithium carbonate. At 31 December 2025, market commentators used in our determination of consensus pricing have published forecast prices (adjusted to 2025 real-terms) in range $13.3/kg lithium carbonate equivalent (LCE) to $22.0/kg LCE. For our impairment test we have used a long-run lithium carbonate price in the upper half of that range in recognition of positive market sentiment at the balance sheet date. With all other modelling inputs remaining constant, a reduction in the long-run price for lithium carbonate by 4.5% would reduce the net present value of cash-flows to equal the carrying value. To further illustrate the sensitivity of the recoverable amount, with all other inputs remaining constant, an increase in the weighted average discount rate to 9% would also result in the recoverable amount and carrying value being equal. |
2025 US$m | 2024 US$m | |
5% increase in the titanium slag price | 164 | 144 |
1% increase in the discount rate applied to post-tax cash flows | (147) | (135) |
10% strengthening of the South African rand | 201 | 232 |
2025 US$m | 2024 US$m | |
Net book value | ||
At 1 January | 727 | 797 |
Adjustment on currency translation | 76 | (45) |
Company no longer consolidated | \u2013 | (25) |
Newly consolidated operations(a) | 2,146 | \u2013 |
At 31 December | 2,949 | 727 |
\u2013 cost | 17,930 | 14,959 |
\u2013 accumulated impairment | (14,981) | (14,232) |
At 1 January | ||
\u2013 cost | 14,959 | 16,237 |
\u2013 accumulated impairment | (14,232) | (15,440) |
2025 US$m | 2024 US$m | |
Net book value | ||
Lithium(a) | 2,146 | \u2013 |
Richards Bay Minerals | 412 | 364 |
Pilbara | 334 | 310 |
Dampier Salt | 57 | 53 |
Total | 2,949 | 727 |
Key accounting estimate | Impairment test of goodwill |
The recoverable amount has been assessed by reference to the FVLCD methodology described in note 4, utilising post-tax cash flows expressed in real terms discounted at a weighted discount rate of 8.3% and classified as level 3 in the fair value hierarchy. The underlying cash flows are based on operating assumptions that focus on delivering the committed projects to reach capacity of 200 ktpa by 2028, accounting for 82% of the recoverable amount. Further expansions that bring our total capacity to 370\u00a0ktpa by 2035 represent 18% of the recoverable amount, with expansions having been risk adjusted for project specific factors, including in Argentina for the benefit of the Regime for Large Investments (\u201cRIGI\u201d) potentially not being available. The recoverable amount exceeds the carrying value by US$1.3 billion and accordingly no impairment has been recorded. The key assumption to which the determination is most sensitive is the long-run price for lithium carbonate. At 31 December 2025, market commentators used in our determination of consensus pricing have published forecast prices (adjusted to 2025 real-terms) in range $13.3/kg lithium carbonate equivalent (LCE) to $22.0/kg LCE. For our impairment test we have used a long-run lithium carbonate price in the upper half of that range in recognition of positive market sentiment at the balance sheet date. With all other modelling inputs remaining constant, a reduction in the long-run price for lithium carbonate by 4.5% would reduce the net present value of cash-flows to equal the carrying value. To further illustrate the sensitivity of the recoverable amount, with all other inputs remaining constant, an increase in the weighted average discount rate to 9% would also result in the recoverable amount and carrying value being equal. |
2025 US$m | 2024 US$m | |
5% increase in the titanium slag price | 164 | 144 |
1% increase in the discount rate applied to post-tax cash flows | (147) | (135) |
10% strengthening of the South African rand | 201 | 232 |
Other relevant judgements | Assessment of indefinite-lived water rights in Quebec, Canada |
We continue to judge the water rights in Quebec to have an indefinite life because we expect the contractual rights to contribute to the efficiency and cost effectiveness of our operations for the foreseeable future. Accordingly, the rights are not subject to amortisation but are tested annually for impairment. We have no other indefinite-lived assets. As at 31\u00a0December 2025, the remaining carrying value of the water rights (included in contract-based assets) of US$1,711 million ( 2024:\u00a0US$1,631 million) relates wholly to the Quebec smelters CGU. The Quebec smelters CGU was tested for impairment by reference to FVLCD using discounted cash flows. The recoverable amount of the Quebec smelters is classified as level 3 under the fair value hierarchy. In arriving at its FVLCD, post-tax cash flows expressed in real terms have been estimated over the expected useful economic lives of the underlying smelting assets and discounted using a real post-tax discount rate of 6.6% (2024: 6.6%). The recoverable amounts were determined to be significantly in excess of carrying value, and there are no reasonably possible changes in key assumptions that would cause the remaining water rights to be impaired. |
Impact of climate change on our business | Water rights |
To manage the uncertainties of climate change and our impact on the area, our team of hydrologists in Quebec analyse different weather scenarios on a daily basis. We monitor the water resource available to us along with the impact that our operation is having on the water quality and quantity, and on the environment when we return the water following use. Based on our analysis to date, we do not consider the renewal of our contractual water rights to be at risk from climate change for the foreseeable future. |
2025 | ||||
Exploration and evaluation US$m | Contract-based intangible assets US$m | Other intangible assets(a) US$m | Total US$m | |
Net book value | ||||
At 1 January 2025 | 562 | 1,787 | 455 | 2,804 |
Adjustment on currency translation | 39 | 92 | 32 | 163 |
Additions(a) | 141 | \u2013 | 98 | 239 |
Amortisation for the year | \u2013 | (153) | (159) | (312) |
Newly consolidated operations(b) | 2,054 | 183 | 64 | 2,301 |
Transfers and other movements(c) | (71) | \u2013 | 103 | 32 |
At 31 December 2025 | 2,725 | 1,909 | 593 | 5,227 |
\u2013 cost | 2,727 | 3,078 | 2,547 | 8,352 |
\u2013 accumulated amortisation and impairment | (2) | (1,169) | (1,954) | (3,125) |
Total | 2,725 | 1,909 | 593 | 5,227 |
2024 | ||||
Exploration and evaluation US$m | Contract-based intangible assets US$m | Other intangible assets (a) US$m | Total US$m | |
Net book value | ||||
At 1 January 2024 | 1,979 | 1,953 | 457 | 4,389 |
Adjustment on currency translation | (44) | (159) | (40) | (243) |
Additions(a) | 416 | \u2013 | 116 | 532 |
Amortisation for the year | \u2013 | (7) | (131) | (138) |
Transfers and other movements(c) | (1,789) | \u2013 | 53 | (1,736) |
At 31 December 2024 | 562 | 1,787 | 455 | 2,804 |
\u2013 cost | 564 | 2,758 | 2,129 | 5,451 |
\u2013 accumulated amortisation and impairment | (2) | (971) | (1,674) | (2,647) |
Total | 562 | 1,787 | 455 | 2,804 |
(a) | Additions to Other intangible assets include US$57\u00a0million (2024: US$50\u00a0million) of carbon abatement spend. This relates to procurement of carbon units and RECs, from which we will generate future economic benefit. At 31 December 2025, the balance of carbon units and RECs was US$84\u00a0million (2024: US$73\u00a0million) |
(b) | Newly consolidated operations principally relate to undeveloped projects acquired through Arcadium Lithium plc and classified as exploration and evaluation, together with other identifiable intangible assets including favourably priced customer contracts. Refer to note 5 for details. |
(c) | Transfers and other movements includes reclassification between categories. In 2024, following approvals by the Board of notice to proceed, exploration and evaluation assets relating to Simandou (US$732 million) and Rincon (US$1,013 million) were transferred in full to Property, plant and equipment after being assessed for indicators of impairment. |
Contract-based intangible assets | Other intangible assets | |||||
Type of intangible | Power contracts/ water\u00a0rights | Other purchase and customer contracts | Internally generated intangible assets and computer software | Other intangible assets | Patented and non-patented technology | Trademarks |
Amortisation profile | 2 to 45 years | 5 to 15 years | 2 to 5 years | 2 to 20 years | 10 to 20 years | 14 to 20 years |
Key accounting estimate | Impairment test of goodwill |
The recoverable amount has been assessed by reference to the FVLCD methodology described in note 4, utilising post-tax cash flows expressed in real terms discounted at a weighted discount rate of 8.3% and classified as level 3 in the fair value hierarchy. The underlying cash flows are based on operating assumptions that focus on delivering the committed projects to reach capacity of 200 ktpa by 2028, accounting for 82% of the recoverable amount. Further expansions that bring our total capacity to 370\u00a0ktpa by 2035 represent 18% of the recoverable amount, with expansions having been risk adjusted for project specific factors, including in Argentina for the benefit of the Regime for Large Investments (\u201cRIGI\u201d) potentially not being available. The recoverable amount exceeds the carrying value by US$1.3 billion and accordingly no impairment has been recorded. The key assumption to which the determination is most sensitive is the long-run price for lithium carbonate. At 31 December 2025, market commentators used in our determination of consensus pricing have published forecast prices (adjusted to 2025 real-terms) in range $13.3/kg lithium carbonate equivalent (LCE) to $22.0/kg LCE. For our impairment test we have used a long-run lithium carbonate price in the upper half of that range in recognition of positive market sentiment at the balance sheet date. With all other modelling inputs remaining constant, a reduction in the long-run price for lithium carbonate by 4.5% would reduce the net present value of cash-flows to equal the carrying value. To further illustrate the sensitivity of the recoverable amount, with all other inputs remaining constant, an increase in the weighted average discount rate to 9% would also result in the recoverable amount and carrying value being equal. |
2025 US$m | 2024 US$m | |
5% increase in the titanium slag price | 164 | 144 |
1% increase in the discount rate applied to post-tax cash flows | (147) | (135) |
10% strengthening of the South African rand | 201 | 232 |
Key accounting estimate | Impairment test of goodwill |
The recoverable amount has been assessed by reference to the FVLCD methodology described in note 4, utilising post-tax cash flows expressed in real terms discounted at a weighted discount rate of 8.3% and classified as level 3 in the fair value hierarchy. The underlying cash flows are based on operating assumptions that focus on delivering the committed projects to reach capacity of 200 ktpa by 2028, accounting for 82% of the recoverable amount. Further expansions that bring our total capacity to 370\u00a0ktpa by 2035 represent 18% of the recoverable amount, with expansions having been risk adjusted for project specific factors, including in Argentina for the benefit of the Regime for Large Investments (\u201cRIGI\u201d) potentially not being available. The recoverable amount exceeds the carrying value by US$1.3 billion and accordingly no impairment has been recorded. The key assumption to which the determination is most sensitive is the long-run price for lithium carbonate. At 31 December 2025, market commentators used in our determination of consensus pricing have published forecast prices (adjusted to 2025 real-terms) in range $13.3/kg lithium carbonate equivalent (LCE) to $22.0/kg LCE. For our impairment test we have used a long-run lithium carbonate price in the upper half of that range in recognition of positive market sentiment at the balance sheet date. With all other modelling inputs remaining constant, a reduction in the long-run price for lithium carbonate by 4.5% would reduce the net present value of cash-flows to equal the carrying value. To further illustrate the sensitivity of the recoverable amount, with all other inputs remaining constant, an increase in the weighted average discount rate to 9% would also result in the recoverable amount and carrying value being equal. |
2025 US$m | 2024 US$m | |
5% increase in the titanium slag price | 164 | 144 |
1% increase in the discount rate applied to post-tax cash flows | (147) | (135) |
10% strengthening of the South African rand | 201 | 232 |
Other relevant judgements | Assessment of indefinite-lived water rights in Quebec, Canada |
We continue to judge the water rights in Quebec to have an indefinite life because we expect the contractual rights to contribute to the efficiency and cost effectiveness of our operations for the foreseeable future. Accordingly, the rights are not subject to amortisation but are tested annually for impairment. We have no other indefinite-lived assets. As at 31\u00a0December 2025, the remaining carrying value of the water rights (included in contract-based assets) of US$1,711 million ( 2024:\u00a0US$1,631 million) relates wholly to the Quebec smelters CGU. The Quebec smelters CGU was tested for impairment by reference to FVLCD using discounted cash flows. The recoverable amount of the Quebec smelters is classified as level 3 under the fair value hierarchy. In arriving at its FVLCD, post-tax cash flows expressed in real terms have been estimated over the expected useful economic lives of the underlying smelting assets and discounted using a real post-tax discount rate of 6.6% (2024: 6.6%). The recoverable amounts were determined to be significantly in excess of carrying value, and there are no reasonably possible changes in key assumptions that would cause the remaining water rights to be impaired. |
Impact of climate change on our business | Water rights |
To manage the uncertainties of climate change and our impact on the area, our team of hydrologists in Quebec analyse different weather scenarios on a daily basis. We monitor the water resource available to us along with the impact that our operation is having on the water quality and quantity, and on the environment when we return the water following use. Based on our analysis to date, we do not consider the renewal of our contractual water rights to be at risk from climate change for the foreseeable future. |
2025 | ||||
Exploration and evaluation US$m | Contract-based intangible assets US$m | Other intangible assets(a) US$m | Total US$m | |
Net book value | ||||
At 1 January 2025 | 562 | 1,787 | 455 | 2,804 |
Adjustment on currency translation | 39 | 92 | 32 | 163 |
Additions(a) | 141 | \u2013 | 98 | 239 |
Amortisation for the year | \u2013 | (153) | (159) | (312) |
Newly consolidated operations(b) | 2,054 | 183 | 64 | 2,301 |
Transfers and other movements(c) | (71) | \u2013 | 103 | 32 |
At 31 December 2025 | 2,725 | 1,909 | 593 | 5,227 |
\u2013 cost | 2,727 | 3,078 | 2,547 | 8,352 |
\u2013 accumulated amortisation and impairment | (2) | (1,169) | (1,954) | (3,125) |
Total | 2,725 | 1,909 | 593 | 5,227 |
2024 | ||||
Exploration and evaluation US$m | Contract-based intangible assets US$m | Other intangible assets (a) US$m | Total US$m | |
Net book value | ||||
At 1 January 2024 | 1,979 | 1,953 | 457 | 4,389 |
Adjustment on currency translation | (44) | (159) | (40) | (243) |
Additions(a) | 416 | \u2013 | 116 | 532 |
Amortisation for the year | \u2013 | (7) | (131) | (138) |
Transfers and other movements(c) | (1,789) | \u2013 | 53 | (1,736) |
At 31 December 2024 | 562 | 1,787 | 455 | 2,804 |
\u2013 cost | 564 | 2,758 | 2,129 | 5,451 |
\u2013 accumulated amortisation and impairment | (2) | (971) | (1,674) | (2,647) |
Total | 562 | 1,787 | 455 | 2,804 |
(a) | Additions to Other intangible assets include US$57\u00a0million (2024: US$50\u00a0million) of carbon abatement spend. This relates to procurement of carbon units and RECs, from which we will generate future economic benefit. At 31 December 2025, the balance of carbon units and RECs was US$84\u00a0million (2024: US$73\u00a0million) |
(b) | Newly consolidated operations principally relate to undeveloped projects acquired through Arcadium Lithium plc and classified as exploration and evaluation, together with other identifiable intangible assets including favourably priced customer contracts. Refer to note 5 for details. |
(c) | Transfers and other movements includes reclassification between categories. In 2024, following approvals by the Board of notice to proceed, exploration and evaluation assets relating to Simandou (US$732 million) and Rincon (US$1,013 million) were transferred in full to Property, plant and equipment after being assessed for indicators of impairment. |
Contract-based intangible assets | Other intangible assets | |||||
Type of intangible | Power contracts/ water\u00a0rights | Other purchase and customer contracts | Internally generated intangible assets and computer software | Other intangible assets | Patented and non-patented technology | Trademarks |
Amortisation profile | 2 to 45 years | 5 to 15 years | 2 to 5 years | 2 to 20 years | 10 to 20 years | 14 to 20 years |
Type of Property, plant and equipment | Land and buildings | Plant and equipment | ||
Land | Buildings | Power-generating assets | Other plant and equipment | |
Depreciation profile | Not depreciated | 5 to 50 years | See Power note below on page 191 | 3 to 50 years |
Key judgement | Estimation of asset lives |
The useful lives of the major assets of a CGU are often dependent on the life of the orebody to which they relate. Where this is the case, the lives of mining properties, and their associated refineries, concentrators and other long-lived processing equipment are generally limited to the expected life of the orebody. The life of the orebody, in turn, is estimated on the basis of the life-of-mine plan. Where the major assets of a CGU are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. Factors affecting the remaining service potential of smelters include, for example, smelter technology and electricity purchase contracts when power is not sourced from the Group, or in some cases from local governments permitting electricity generation from hydropower stations.\u00a0 |
Impact of climate change on our business | Estimation of asset lives |
We expect there to be a higher demand for copper, aluminium, lithium and high-grade iron ore in order to meet demand for the minerals required to transition to a low-carbon economic environment, consistent with the climate change commitments of the Paris Agreement. We expect this to exceed new supply to the market and therefore increase prices. Under the Aspirational Leadership scenario, the economic cut-off grade for our Ore Reserves is expected to be lower; in effect we would mine a greater volume of material before the mines are depleted. We cannot quantify the difference this would make without undue cost as it would require revised mine plans, but for property, plant and equipment this increased volume of material would reduce the depreciation charge during any given period for assets that use the \u201cUnits of production\u201d depreciation basis. |
Key judgement | Deferral of stripping costs |
We apply judgement as to whether multiple pits at a mine are considered separate or integrated operations. This determines whether the stripping activities of a pit are classified as pre-production or production phase stripping and, therefore, the amortisation base for those costs. The analysis depends on each mine\u2019s specific circumstances and requires judgement: another mining company could make a different judgement even when the fact pattern appears to be similar. In order for production phase stripping costs to qualify for capitalisation as a stripping activity asset, 3 criteria must be met: \u2022 it must be probable that there will be an economic benefit in a future accounting period because the stripping activity has improved access to the orebody \u2022 it must be possible to identify the \u201ccomponent\u201d of the orebody for which access has been improved \u2022 it must be possible to reliably measure the costs that relate to the stripping activity. |
Phase | Development phase | Production phase | |
Stripping activity | Overburden and other waste removal during the development of a mine before production commences. | Production phase stripping can give access to 2 benefits: the extraction of ore in the current period and improved access to ore which will be extracted in future periods. | |
Period of benefit | After commissioning of the\u00a0mine. | Future periods after first phase is complete. | Current and future benefit are indistinguishable. |
Capitalised to mining properties and leases in property, plant and\u00a0equipment | During the development of a mine, stripping costs relating to a component of an orebody are capitalised as part of the cost of construction of the mine. | It may be the case that subsequent phases of stripping will access additional ore and that these subsequent phases are only possible after the first phase has taken place. Where applicable, the Group considers this on a mine-by-mine basis. Generally, the only ore attributed to the stripping activity asset for the purposes of calculating the life-of-component ratio is the ore to be extracted from the originally identified component. | Stripping costs for the component are deferred to the extent that the current period ratio exceeds the life-of- component ratio. |
Allocation to inventory | Not applicable | Not applicable | Stripping costs are allocated to inventory based on a relevant production measure using a life- of-component strip ratio. |
Life-of-component ratio | The life-of-component ratios are based on the Ore Reserves of the mine (and for some mines, other Mineral Resources) and the annual mine plan. They are a function of the mine design and, therefore, changes to that design will generally result in changes to the ratios. Changes in other technical or economic parameters that impact the Ore Reserves (and for some mines, other Mineral Resources) may also have an impact on the life-of-component ratios even if they do not affect the mine design. Changes to the ratios are accounted for prospectively. | ||
Depreciation basis | Depreciated on a \u201cunits of production\u201d basis based on expected production of either ore or minerals contained in the ore over the life of the component unless another method is more appropriate. |
2025 US$m | 2024 US$m | |
Property, plant and equipment \u2013 owned | 82,889 | 67,345 |
Right-of-use assets \u2013 leased | 1,421 | 1,228 |
Net book value | 84,310 | 68,573 |
2025 | ||||||
Note | Mining properties and\u00a0leases (a) US$m | Land and buildings US$m | Plant and equipment US$m | Capital works in progress US$m | Total US$m | |
Net book value | ||||||
At 1 January 2025 | 14,196 | 8,220 | 34,373 | 10,556 | 67,345 | |
Adjustment on currency translation(b) | 491 | 362 | 1,851 | 362 | 3,066 | |
Adjustments to capitalised closure costs | 14 | 811 | \u2013 | \u2013 | \u2013 | 811 |
Interest capitalised (c) | 9 | \u2013 | \u2013 | \u2013 | 411 | 411 |
Additions (d) | 627 | 133 | 1,749 | 10,415 | 12,924 | |
Depreciation for the year (a) | (1,294) | (608) | (3,853) | \u2013 | (5,755) | |
Impairment charges net of reversals (e) | \u2013 | (35) | (233) | (69) | (337) | |
Disposals | \u2013 | (4) | (54) | (139) | (197) | |
Newly consolidated operations(f) | 352 | 1,808 | 659 | 1,947 | 4,766 | |
Transfers and other movements (g) | 1,956 | 66 | 4,662 | (6,829) | (145) | |
At 31 December 2025 | 17,139 | 9,942 | 39,154 | 16,654 | 82,889 | |
Comprising: | ||||||
\u2013 cost | 35,329 | 17,521 | 89,037 | 16,764 | 158,651 | |
\u2013 accumulated depreciation and impairment | (18,190) | (7,579) | (49,883) | (110) | (75,762) | |
Total | 17,139 | 9,942 | 39,154 | 16,654 | 82,889 | |
Non-current assets pledged as security (h) | 5,509 | 2,248 | 9,304 | 2,070 | 19,131 |
2024 | ||||||
Note | Mining properties and leases (a) US$m | Land and buildings US$m | Plant and equipment US$m | Capital works in progress US$m | Total US$m | |
Net book value | ||||||
At 1\u00a0January 2024 | 13,555 | 8,022 | 36,345 | 7,368 | 65,290 | |
Adjustment on currency translation(b) | (500) | (548) | (2,634) | (396) | (4,078) | |
Adjustments to capitalised closure costs | 14 | 64 | \u2013 | \u2013 | \u2013 | 64 |
Interest capitalised (c) | 9 | \u2013 | \u2013 | \u2013 | 424 | 424 |
Additions (d) | 350 | 246 | 1,226 | 7,551 | 9,373 | |
Depreciation for the year (a) | (1,217) | (531) | (3,554) | \u2013 | (5,302) | |
Impairment charges net of reversals (e) | (38) | (39) | (457) | (9) | (543) | |
Disposals | (1) | (5) | (75) | (17) | (98) | |
Newly consolidated operations(f) | 150 | 64 | 429 | 7 | 650 | |
Operations divested | \u2013 | (2) | (34) | \u2013 | (36) | |
Transfers and other movements (g) | 1,833 | 1,013 | 3,127 | (4,372) | 1,601 | |
At 31 December 2024 | 14,196 | 8,220 | 34,373 | 10,556 | 67,345 | |
Comprising | ||||||
\u2013 cost | 30,762 | 14,822 | 78,295 | 10,925 | 134,804 | |
\u2013 accumulated depreciation and impairment | (16,566) | (6,602) | (43,922) | (369) | (67,459) | |
Total | 14,196 | 8,220 | 34,373 | 10,556 | 67,345 | |
Non-current assets pledged as security (h) | 5,676 | 2,257 | 7,058 | 3,397 | 18,388 |
Impact of climate change on our business | Useful economic lives of our power generating assets | ||||
The Group has committed to reducing Scope 1 and Scope 2 carbon emissions by 50% relative to our 2018 baseline by 2030 and achieving net zero emission across our operations by 2050 . We expect to invest US$1 billion to US$2 billion on carbon abatement projects between 2022 and 2030. Transitioning electricity from principally fossil fuel-based power generating assets to principally renewables is critical to achieving that goal. The carrying value of power generating assets is set out in the table below. The weighted average remaining useful economic life of plant and equipment for fossil fuel-based power generating assets is 8 years ( 2024 : 10 years ). Given the technical limitations of intermittent renewable energy generation and energy storage systems, and our need for reliable baseload electricity, we expect our current generation assets will be integral to those needs for the foreseeable future. We are investing in research and development and evaluating new market options that may overcome these technical challenges. Should pathways for eliminating fossil fuel power generating assets be identified we may need to accelerate depreciation or impair the assets; however, at this present moment the requirement for fossil fuel powered back-up means that early retirement of the assets is not expected and no change to depreciation rates is required. | |||||
2025 | 2024 | ||||
Net book value of power generating assets powered by | Land and buildings US$m | Plant and equipment US$m | Land and buildings US$m | Plant and equipment US$m | |
\u2013 Fossil fuels | 100 | 809 | 59 | 840 | |
\u2013 Renewables | 190 | 2,518 | 177 | 2,375 |
2025 | 2024 | |||||
Land and buildings US$m | Plant and equipment US$m | Total US$m | Land and buildings US$m | Plant and equipment US$m | Total US$m | |
Net book value | ||||||
At 1 January | 524 | 704 | 1,228 | 543 | 635 | 1,178 |
Adjustment on currency translation | 28 | 21 | 49 | (37) | (24) | (61) |
Additions | 61 | 576 | 637 | 150 | 420 | 570 |
Depreciation for the year | (110) | (400) | (510) | (125) | (353) | (478) |
Net impairment (charges)/reversals (a) | \u2013 | (4) | (4) | \u2013 | 5 | 5 |
Newly consolidated operations | \u2013 | 48 | 48 | \u2013 | \u2013 | \u2013 |
Disposals | (10) | (3) | (13) | \u2013 | \u2013 | \u2013 |
Transfers and other movements | (24) | 10 | (14) | (7) | 21 | 14 |
At 31 December | 469 | 952 | 1,421 | 524 | 704 | 1,228 |
Type of Property, plant and equipment | Land and buildings | Plant and equipment | ||
Land | Buildings | Power-generating assets | Other plant and equipment | |
Depreciation profile | Not depreciated | 5 to 50 years | See Power note below on page 191 | 3 to 50 years |
Key judgement | Estimation of asset lives |
The useful lives of the major assets of a CGU are often dependent on the life of the orebody to which they relate. Where this is the case, the lives of mining properties, and their associated refineries, concentrators and other long-lived processing equipment are generally limited to the expected life of the orebody. The life of the orebody, in turn, is estimated on the basis of the life-of-mine plan. Where the major assets of a CGU are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. Factors affecting the remaining service potential of smelters include, for example, smelter technology and electricity purchase contracts when power is not sourced from the Group, or in some cases from local governments permitting electricity generation from hydropower stations.\u00a0 |
Impact of climate change on our business | Estimation of asset lives |
We expect there to be a higher demand for copper, aluminium, lithium and high-grade iron ore in order to meet demand for the minerals required to transition to a low-carbon economic environment, consistent with the climate change commitments of the Paris Agreement. We expect this to exceed new supply to the market and therefore increase prices. Under the Aspirational Leadership scenario, the economic cut-off grade for our Ore Reserves is expected to be lower; in effect we would mine a greater volume of material before the mines are depleted. We cannot quantify the difference this would make without undue cost as it would require revised mine plans, but for property, plant and equipment this increased volume of material would reduce the depreciation charge during any given period for assets that use the \u201cUnits of production\u201d depreciation basis. |
Phase | Development phase | Production phase | |
Stripping activity | Overburden and other waste removal during the development of a mine before production commences. | Production phase stripping can give access to 2 benefits: the extraction of ore in the current period and improved access to ore which will be extracted in future periods. | |
Period of benefit | After commissioning of the\u00a0mine. | Future periods after first phase is complete. | Current and future benefit are indistinguishable. |
Capitalised to mining properties and leases in property, plant and\u00a0equipment | During the development of a mine, stripping costs relating to a component of an orebody are capitalised as part of the cost of construction of the mine. | It may be the case that subsequent phases of stripping will access additional ore and that these subsequent phases are only possible after the first phase has taken place. Where applicable, the Group considers this on a mine-by-mine basis. Generally, the only ore attributed to the stripping activity asset for the purposes of calculating the life-of-component ratio is the ore to be extracted from the originally identified component. | Stripping costs for the component are deferred to the extent that the current period ratio exceeds the life-of- component ratio. |
Allocation to inventory | Not applicable | Not applicable | Stripping costs are allocated to inventory based on a relevant production measure using a life- of-component strip ratio. |
Life-of-component ratio | The life-of-component ratios are based on the Ore Reserves of the mine (and for some mines, other Mineral Resources) and the annual mine plan. They are a function of the mine design and, therefore, changes to that design will generally result in changes to the ratios. Changes in other technical or economic parameters that impact the Ore Reserves (and for some mines, other Mineral Resources) may also have an impact on the life-of-component ratios even if they do not affect the mine design. Changes to the ratios are accounted for prospectively. | ||
Depreciation basis | Depreciated on a \u201cunits of production\u201d basis based on expected production of either ore or minerals contained in the ore over the life of the component unless another method is more appropriate. |
Type of Property, plant and equipment | Land and buildings | Plant and equipment | ||
Land | Buildings | Power-generating assets | Other plant and equipment | |
Depreciation profile | Not depreciated | 5 to 50 years | See Power note below on page 191 | 3 to 50 years |
Key judgement | Deferral of stripping costs |
We apply judgement as to whether multiple pits at a mine are considered separate or integrated operations. This determines whether the stripping activities of a pit are classified as pre-production or production phase stripping and, therefore, the amortisation base for those costs. The analysis depends on each mine\u2019s specific circumstances and requires judgement: another mining company could make a different judgement even when the fact pattern appears to be similar. In order for production phase stripping costs to qualify for capitalisation as a stripping activity asset, 3 criteria must be met: \u2022 it must be probable that there will be an economic benefit in a future accounting period because the stripping activity has improved access to the orebody \u2022 it must be possible to identify the \u201ccomponent\u201d of the orebody for which access has been improved \u2022 it must be possible to reliably measure the costs that relate to the stripping activity. |
Phase | Development phase | Production phase | |
Stripping activity | Overburden and other waste removal during the development of a mine before production commences. | Production phase stripping can give access to 2 benefits: the extraction of ore in the current period and improved access to ore which will be extracted in future periods. | |
Period of benefit | After commissioning of the\u00a0mine. | Future periods after first phase is complete. | Current and future benefit are indistinguishable. |
Capitalised to mining properties and leases in property, plant and\u00a0equipment | During the development of a mine, stripping costs relating to a component of an orebody are capitalised as part of the cost of construction of the mine. | It may be the case that subsequent phases of stripping will access additional ore and that these subsequent phases are only possible after the first phase has taken place. Where applicable, the Group considers this on a mine-by-mine basis. Generally, the only ore attributed to the stripping activity asset for the purposes of calculating the life-of-component ratio is the ore to be extracted from the originally identified component. | Stripping costs for the component are deferred to the extent that the current period ratio exceeds the life-of- component ratio. |
Allocation to inventory | Not applicable | Not applicable | Stripping costs are allocated to inventory based on a relevant production measure using a life- of-component strip ratio. |
Life-of-component ratio | The life-of-component ratios are based on the Ore Reserves of the mine (and for some mines, other Mineral Resources) and the annual mine plan. They are a function of the mine design and, therefore, changes to that design will generally result in changes to the ratios. Changes in other technical or economic parameters that impact the Ore Reserves (and for some mines, other Mineral Resources) may also have an impact on the life-of-component ratios even if they do not affect the mine design. Changes to the ratios are accounted for prospectively. | ||
Depreciation basis | Depreciated on a \u201cunits of production\u201d basis based on expected production of either ore or minerals contained in the ore over the life of the component unless another method is more appropriate. |
2025 | 2024 | |||||
Land and buildings US$m | Plant and equipment US$m | Total US$m | Land and buildings US$m | Plant and equipment US$m | Total US$m | |
Net book value | ||||||
At 1 January | 524 | 704 | 1,228 | 543 | 635 | 1,178 |
Adjustment on currency translation | 28 | 21 | 49 | (37) | (24) | (61) |
Additions | 61 | 576 | 637 | 150 | 420 | 570 |
Depreciation for the year | (110) | (400) | (510) | (125) | (353) | (478) |
Net impairment (charges)/reversals (a) | \u2013 | (4) | (4) | \u2013 | 5 | 5 |
Newly consolidated operations | \u2013 | 48 | 48 | \u2013 | \u2013 | \u2013 |
Disposals | (10) | (3) | (13) | \u2013 | \u2013 | \u2013 |
Transfers and other movements | (24) | 10 | (14) | (7) | 21 | 14 |
At 31 December | 469 | 952 | 1,421 | 524 | 704 | 1,228 |
Note | 2025 US$m | 2024 US$m | |
At 1 January | 15,731 | 17,150 | |
Adjustment on currency translation | 907 | (1,128) | |
Adjustments to mining properties/right-of-use assets: | 13 | ||
\u2013 increases to existing and new provisions | 811 | 851 | |
\u2013 change in discount rate | \u2013 | (787) | |
Charged/(credited) to profit: | |||
\u2013 increases to existing and new provisions | 518 | 435 | |
\u2013 change in discount rate | \u2013 | (235) | |
\u2013 unused amounts reversed | (126) | (88) | |
\u2013 exchange (gains)/losses on provisions | (48) | 26 | |
\u2013 amortisation of discount | 768 | 843 | |
Utilised in year | (1,049) | (1,142) | |
Newly consolidated operations (a) | 319 | 61 | |
Transfers and other movements | \u2014 | (255) | |
At 31 December (b) | 17,831 | 15,731 | |
Balance sheet analysis: | |||
Current | 1,128 | 1,183 | |
Non-current | 16,703 | 14,548 | |
Total | 17,831 | 15,731 |
Key judgement | Close-down, restoration and environmental obligations |
We use our judgement and experience to determine the potential scope of closure rehabilitation work required to meet the Group\u2019s legal, statutory and constructive obligations, and any other commitments made to stakeholders, and the options and techniques available to meet those obligations in order to estimate the associated costs and the likely timing of those costs. Significant judgement is also required to then determine both the costs associated with that work and the other assumptions used to calculate the provision. External experts support the cost estimation process where appropriate, but there remains significant estimation uncertainty. The key judgement in applying this accounting policy is determining when an estimate is sufficiently reliable to make or adjust a closure provision. Adjustments are made to provisions when the range of possible outcomes becomes sufficiently narrow to permit reliable estimation. Depending on the materiality of the change, adjustments may require review and endorsement by the Group\u2019s Closure Steering Committee before the provision is updated. Cost provisions are updated throughout the life of the operation with conceptual study estimates reviewed every 5 years. Within 10 years from the expected closure date, closure cost estimates must comply with the Group\u2019s Capital Project Framework. This means, for example, that where an Order of Magnitude (OoM) study is required for closure, it must be of the same standard as an OoM study for a new mine, smelter or refinery. In some cases, the closure study may indicate that monitoring and, potentially, remediation will be required indefinitely - for example, groundwater treatment. In these cases, the underlying cash flows for the provision may be restricted to a period for which the costs can be reliably estimated, which on average is around 30 years. Where an alternative commercial arrangement to meet our obligations can be predicted with confidence, this period may be shorter. |
2025 US$m | 2024 US$m | |
Undiscounted close-down, restoration and environmental obligations | 25,900 | 23,038 |
Impact of discounting | (8,069) | (7,307) |
Present value of close-down, restoration and environmental provisions | 17,831 | 15,731 |
Attributable to: | ||
Operating sites | 13,710 | 11,715 |
Non-operating sites | 4,121 | 4,016 |
Total close-down, restoration and environmental provisions | 17,831 | 15,731 |
Closure cost composition as at 31 December | 2025 US$m | 2024 US$m |
Decommissioning, decontamination and demolition | 3,675 | 3,065 |
Closure and rehabilitation earthworks (a) | 5,330 | 4,628 |
Long-term water management costs (b) | 1,440 | 1,316 |
Post-closure monitoring and maintenance | 1,668 | 1,581 |
Indirect costs, owners\u2019 costs and contingency (c) | 5,718 | 5,141 |
Total | 17,831 | 15,731 |
Geographic composition as at 31 December | 2025 US$m | 2024 US$m |
Australia | 10,056 | 8,546 |
US | 4,581 | 4,419 |
Canada | 1,558 | 1,517 |
Other countries | 1,636 | 1,249 |
Total | 17,831 | 15,731 |
<1 year US$m | 1-3 years US$m | 3-5 years US$m | >5 years US$m | Total US$m | |
At 31\u00a0December 2025 | 1,128 | 2,821 | 2,138 | 19,813 | 25,900 |
At 31\u00a0December 2024 | 1,183 | 2,497 | 1,880 | 17,478 | 23,038 |
Key accounting estimate | Close-down, restoration and environmental obligations |
The most significant assumptions and estimates used in calculating the provision are: \u2022 Closure timeframes. The weighted average remaining lives of operations is shown above. Some expenditure may be incurred before closure while the operation as a whole is in production. \u2022 The length of any post-closure monitoring period. This will depend on the specific site requirements and the availability of alternative commercial arrangements; some expenditure can continue into perpetuity. The Rio Tinto Kennecott closure and environmental remediation provision includes an allowance for ongoing monitoring and remediation costs, including groundwater treatment, of approximately US$0.7 billion. \u2022 The probability weighting of possible closure scenarios. The most significant impact of probability weighting is at the Pilbara operations (Iron Ore) relating to infrastructure, and incorporates the expectation that some infrastructure will be retained by the relevant State authorities post closure. The assignment of probabilities to this scenario reduces the closure provision by US$0.5 billion. \u2022 Appropriate sources on which to base the calculation of the discount rate. The discount rate, by nature, is subjective and therefore sensitivities are shown below for how the provision balance would change if discounted at alternative discount rates. There is significant estimation uncertainty in the calculation of the provision and cost estimates can vary in response to many factors\u00a0including: \u2022 changes to the relevant legal or local/national government requirements and any other commitments made to stakeholders \u2022 review of remediation and relinquishment options \u2022 additional remediation requirements identified during the rehabilitation \u2022 the emergence of new restoration techniques \u2022 precipitation rates and climate change \u2022 change in foreign exchange rates \u2022 change in the expected closure date \u2022 change in the discount rate. Experience gained at other mine or production sites may also change expected methods or costs of closure, although elements of the restoration and rehabilitation can be unique to each site. Generally, there is relatively limited restoration and rehabilitation activity and historical precedent elsewhere in the Group, or in the industry as a whole, against which to benchmark cost estimates. The expected timing of expenditure can also change for other reasons, for example because of changes to expectations relating to Ore Reserves and Mineral Resources, production rates, renewal of operating licences or economic conditions. Changes in closure cost estimates at the Group\u2019s ongoing operations could result in a material adjustment to assets and liabilities in the next 12 months and would also impact the depreciation and the unwinding of discount in future years. Changes to closure cost estimates for closed operations, and changes to environmental cost estimates at any operation, could cause a material adjustment to the income statement and closure liability. We do not consider that there is significant risk of a change in estimates for these liabilities causing a material adjustment to the income statement in the next 12 months. Any new environmental incidents may require a material provision but cannot be predicted. Project-specific risks are embedded within the cash flows which are based on a central case estimate of closure activities assuming that the obligation is fulfilled by the Group. These cash flows are then discounted, as mentioned above, using a consistent discount rate applied to all locations. |
Impact of climate change on our business | Close-down, restoration and environmental costs |
The underlying costs for closure have been estimated with varying degrees of precision based on a function of the age of the underlying asset and proximity to closure. For assets within 10 years of closure, closure plans and cost estimates are supported by detailed studies which are refined as the closure date approaches. These closure studies consider climate change and plan for resilience to expected climate conditions with a particular focus on precipitation rates. For new developments, consideration of climate change and ultimate closure conditions are an important part of the approval process. For longer-lived assets, closure provisions are typically based on conceptual level studies that are refreshed at least every 5 years; these are evolving to incorporate greater consideration of forecast climate conditions at closure. |
At 31\u00a0December 2025 | At 31 December 2024 | |||||
Capitalised within \u201cProperty, plant and equipment\u201d US$m | Charged/(credited) to the income statement US$m | Total increase/ (decrease) in provision US$m | Capitalised within \u201cProperty, plant and equipment\u201d US$m | Charged/(credited) to the income statement US$m | Total increase/ (decrease) in provision US$m | |
Discount rate decreased to 1.0% | 3,700 | 400 | 4,100 | 3,300 | 400 | 3,700 |
Discount rate increased to 3.0% | (1,000) | (100) | (1,100) | (900) | (100) | (1,000) |
Key accounting estimate | Close-down, restoration and environmental obligations |
The most significant assumptions and estimates used in calculating the provision are: \u2022 Closure timeframes. The weighted average remaining lives of operations is shown above. Some expenditure may be incurred before closure while the operation as a whole is in production. \u2022 The length of any post-closure monitoring period. This will depend on the specific site requirements and the availability of alternative commercial arrangements; some expenditure can continue into perpetuity. The Rio Tinto Kennecott closure and environmental remediation provision includes an allowance for ongoing monitoring and remediation costs, including groundwater treatment, of approximately US$0.7 billion. \u2022 The probability weighting of possible closure scenarios. The most significant impact of probability weighting is at the Pilbara operations (Iron Ore) relating to infrastructure, and incorporates the expectation that some infrastructure will be retained by the relevant State authorities post closure. The assignment of probabilities to this scenario reduces the closure provision by US$0.5 billion. \u2022 Appropriate sources on which to base the calculation of the discount rate. The discount rate, by nature, is subjective and therefore sensitivities are shown below for how the provision balance would change if discounted at alternative discount rates. There is significant estimation uncertainty in the calculation of the provision and cost estimates can vary in response to many factors\u00a0including: \u2022 changes to the relevant legal or local/national government requirements and any other commitments made to stakeholders \u2022 review of remediation and relinquishment options \u2022 additional remediation requirements identified during the rehabilitation \u2022 the emergence of new restoration techniques \u2022 precipitation rates and climate change \u2022 change in foreign exchange rates \u2022 change in the expected closure date \u2022 change in the discount rate. Experience gained at other mine or production sites may also change expected methods or costs of closure, although elements of the restoration and rehabilitation can be unique to each site. Generally, there is relatively limited restoration and rehabilitation activity and historical precedent elsewhere in the Group, or in the industry as a whole, against which to benchmark cost estimates. The expected timing of expenditure can also change for other reasons, for example because of changes to expectations relating to Ore Reserves and Mineral Resources, production rates, renewal of operating licences or economic conditions. Changes in closure cost estimates at the Group\u2019s ongoing operations could result in a material adjustment to assets and liabilities in the next 12 months and would also impact the depreciation and the unwinding of discount in future years. Changes to closure cost estimates for closed operations, and changes to environmental cost estimates at any operation, could cause a material adjustment to the income statement and closure liability. We do not consider that there is significant risk of a change in estimates for these liabilities causing a material adjustment to the income statement in the next 12 months. Any new environmental incidents may require a material provision but cannot be predicted. Project-specific risks are embedded within the cash flows which are based on a central case estimate of closure activities assuming that the obligation is fulfilled by the Group. These cash flows are then discounted, as mentioned above, using a consistent discount rate applied to all locations. |
Impact of climate change on our business | Close-down, restoration and environmental costs |
The underlying costs for closure have been estimated with varying degrees of precision based on a function of the age of the underlying asset and proximity to closure. For assets within 10 years of closure, closure plans and cost estimates are supported by detailed studies which are refined as the closure date approaches. These closure studies consider climate change and plan for resilience to expected climate conditions with a particular focus on precipitation rates. For new developments, consideration of climate change and ultimate closure conditions are an important part of the approval process. For longer-lived assets, closure provisions are typically based on conceptual level studies that are refreshed at least every 5 years; these are evolving to incorporate greater consideration of forecast climate conditions at closure. |
2025 US$m | 2024 US$m | |
At 1 January | 1,381 | 1,040 |
Adjustment on currency translation | 1 | (10) |
(Charged)/credited to the income statement | (302) | 393 |
(Charged) to the statement of comprehensive income(a) | (12) | (32) |
Newly consolidated operations(b) | (817) | \u2013 |
Other movements (c) | (57) | (10) |
At 31 December | 194 | 1,381 |
Comprising: | ||
\u2013 deferred tax assets (d)(e) | 4,288 | 4,016 |
\u2013 deferred tax liabilities (f) | (4,094) | (2,635) |
Deferred tax assets | Deferred tax liabilities | Credited/(charged) to the income statement | ||||
2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Tax losses (d) | 1,290 | 1,461 | \u2013 | \u2013 | (220) | 98 |
Tax credits(d) | 627 | 540 | \u2013 | \u2013 | 87 | (43) |
Provisions and other liabilities | 5,562 | 4,710 | \u2013 | \u2013 | 542 | 785 |
Capital allowances | 1,084 | 1,024 | (7,106) | (5,378) | (364) | (323) |
Post-retirement benefits | 191 | 187 | (49) | (50) | 46 | 28 |
Unrealised exchange losses | 170 | 157 | (22) | (13) | (9) | (11) |
Unremitted earnings(f) | \u2013 | \u2013 | (471) | (391) | (6) | \u2013 |
Capitalised and accrued interest | \u2013 | \u2013 | (1,013) | (766) | (225) | (217) |
Other temporary differences | 604 | 371 | (673) | (471) | (153) | 76 |
Total | 9,528 | 8,450 | (9,334) | (7,069) | (302) | 393 |
Other relevant judgements | Recoverability of deferred tax assets |
In considering the recoverability of deferred tax assets, judgement is required regarding the extent to which certain risk factors are likely to affect the recovery of these assets. These risk factors include the risk of expiry of losses prior to utilisation, the impact of other legislation or tax regimes, such as minimum taxes, and consideration of factors that lead to the generation of losses or other deferred tax assets. IAS 12 requires us to consider whether taxable profits will be available against which deferred tax assets may be\u00a0utilised. The Mongolian Tax Authority has issued a number of tax assessments dating back to 2013, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. The matters under dispute have been referred to international arbitration. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the amount and/or recovery of recognised deferred tax items, including those in respect of amounts accrued and payable in the future. The issuance of the arbitration award on matters of this complexity can typically take longer than 12 months to conclude following the International Arbitration hearings, which occurred in September 2025. |
Recognised | Unrecognised | |||
At 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Australia | 1,416 | 1,132 | 505 | 563 |
Mongolia (a) | 1,366 | 1,780 | 255 | 68 |
Canada | 519 | 331 | 764 | 511 |
US (b) | 377 | 262 | 841 | 926 |
UK | 34 | 66 | 2,907 | 2,343 |
France | \u2013 | \u2013 | 1,408 | 1,233 |
Other countries | 576 | 445 | 303 | 334 |
Total (c)(d) | 4,288 | 4,016 | 6,983 | 5,978 |
2025 US$m | 2024 US$m | |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Trade receivables (a) | \u2013 | 2,658 | 2,658 | \u2013 | 2,344 | 2,344 |
Other financial receivables (a) | 526 | 729 | 1,255 | 355 | 643 | 998 |
Other receivables (b) | 601 | 718 | 1,319 | 380 | 429 | 809 |
Prepayment of tolling charges to jointly controlled entities (c) | 71 | \u2013 | 71 | 94 | \u2013 | 94 |
Pension surpluses (note 29) | 505 | \u2013 | 505 | 405 | \u2013 | 405 |
Other prepayments | 138 | 891 | 1,029 | 163 | 825 | 988 |
Total (d) | 1,841 | 4,996 | 6,837 | 1,397 | 4,241 | 5,638 |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Trade payables | \u2013 | 3,596 | 3,596 | \u2013 | 3,196 | 3,196 |
Other financial payables | 177 | 1,261 | 1,438 | 188 | 1,192 | 1,380 |
Other payables | 84 | 145 | 229 | 42 | 143 | 185 |
Deferred income (a) | 428 | 493 | 921 | 118 | 338 | 456 |
Accruals | 53 | 2,773 | 2,826 | \u2013 | 1,751 | 1,751 |
Employee entitlements | \u2013 | 1,136 | 1,136 | \u2013 | 920 | 920 |
Royalties and mining taxes | 3 | 713 | 716 | 2 | 622 | 624 |
Amounts owed to equity accounted units | 237 | 16 | 253 | 193 | 16 | 209 |
Total | 982 | 10,133 | 11,115 | 543 | 8,178 | 8,721 |
2025 US$m | 2024 US$m | |
Opening balance at 1 January | 1,107 | 1,371 |
Adjustment on currency translation | 54 | (69) |
Adjustments to mining properties/right-of-use assets: | ||
\u2013 increases to existing and new provisions | 24 | 17 |
\u2013 change in discount rate | \u2013 | (2) |
Charged/(credited) to profit: | ||
\u2013 increases to existing and new provisions | 418 | 184 |
\u2013 change in discount rate | \u2013 | (7) |
\u2013 unused amounts reversed | (45) | (104) |
\u2013 exchange gain on provisions | (6) | \u2013 |
\u2013 amortisation of discount | 10 | 14 |
Utilised in year | (402) | (94) |
Newly consolidated operations(a) | 375 | \u2014 |
Transfers and other movements | (59) | (203) |
Closing balance at 31 December | 1,476 | 1,107 |
Balance sheet analysis: | ||
Current | 1,103 | 792 |
Non-current | 373 | 315 |
Total | 1,476 | 1,107 |
2025 US$m | 2024 US$m | |
Opening balance at 1 January | 1,107 | 1,371 |
Adjustment on currency translation | 54 | (69) |
Adjustments to mining properties/right-of-use assets: | ||
\u2013 increases to existing and new provisions | 24 | 17 |
\u2013 change in discount rate | \u2013 | (2) |
Charged/(credited) to profit: | ||
\u2013 increases to existing and new provisions | 418 | 184 |
\u2013 change in discount rate | \u2013 | (7) |
\u2013 unused amounts reversed | (45) | (104) |
\u2013 exchange gain on provisions | (6) | \u2013 |
\u2013 amortisation of discount | 10 | 14 |
Utilised in year | (402) | (94) |
Newly consolidated operations(a) | 375 | \u2014 |
Transfers and other movements | (59) | (203) |
Closing balance at 31 December | 1,476 | 1,107 |
Balance sheet analysis: | ||
Current | 1,103 | 792 |
Non-current | 373 | 315 |
Total | 1,476 | 1,107 |
Other relevant judgements | Contingencies |
Disclosure is made for material contingent liabilities unless the possibility of any loss arising is considered remote based on our judgement and legal advice. These are quantified unless, in our judgement, the amount cannot be reliably estimated. The unit of account for claims is the matter taken as a whole and therefore when a provision has been recorded for the best estimate of the cost to settle the obligation there is no further contingent liability component. This means that when a provision is recognised for the best estimate of the expenditure required to settle the present obligation from a single past event, a further contingent liability is not reported for the maximum potential exposure in excess of that already provided. We have not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of our companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur. The Group may in the future incur judgements or enter into settlements of claims that could lead to material cash outflows. |
2025 US$m | 2024 US$m | |
Contingent liabilities, indemnities and other performance guarantees (a) | 322 | 192 |
Litigation matter | Latest update |
2011 Contractual payments in\u00a0Guinea | In 2023, we resolved a previously self-disclosed investigation by the SEC into certain contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011, relating to the Simandou project in the Republic of Guinea. In August 2023, the UK Serious Fraud Office closed its case and announced that the Australian Federal Police maintains a live investigation into the matter. Rio Tinto continues to cooperate fully with relevant authorities.\u00a0 At 31\u00a0December 2025, the outcome of this investigation remains uncertain, but it could ultimately expose the Group to material financial cost. No provision has been recognised for the investigation. We believe this case is unwarranted and will defend the allegation vigorously. |
2025 US$m | 2024 US$m | |
Capital commitments excluding the Group's share of EAU capital commitments | ||
Within 1 year | 5,952 | 4,559 |
Between 1 and 3 years | 1,720 | 602 |
Between 3 and 5 years | 124 | 313 |
After 5 years | 377 | 82 |
Total | 8,173 | 5,556 |
Group's share of EAU capital commitments | ||
Within 1 year | 684 | 1,280 |
Between 1 and 3 years | 53 | 271 |
Total | 737 | 1,551 |
Impact of climate change on our business | Decarbonisation capital commitments |
Capital commitments do not include the estimated incremental capital expenditure relating to decarbonisation projects unless otherwise contractually committed. In 2025, we adjusted our capital guidance to spend of US$1 billion to US$2 billion through to 2030 . Included in capital commitments at 31\u00a0December 2025 are contractually committed decarbonisation capital commitments of US$142 million ( 2024:\u00a0US$114 million ), inclusive of the Amrun and Jinbi renewable PPAs, which are treated as leases that have not yet commenced (disclosed in\u00a0note\u00a0 22). |
2025 US$m | 2024 US$m | |
Within 1 year | 3,573 | 3,160 |
Between 1 and 2 years | 1,599 | 1,461 |
Between 2 and 3 years | 1,479 | 1,364 |
Between 3 and 4 years | 803 | 851 |
Between 4 and 5 years | 621 | 614 |
After 5 years | 4,800 | 4,905 |
Total | 12,875 | 12,355 |
Note | 2025 US$m | 2024 US$m | |
2025 | 2024 | |
2025 | 2024 | |||||||||
(Outflows)/Inflows | Within 1 year or on demand US$m | Between 1\u00a0and 2 years US$m | Between 2\u00a0and 5 years US$m | After 5\u00a0years US$m | Total US$m | Within 1 year or on demand US$m | Between 1\u00a0and 2 years US$m | Between 2\u00a0and 5 years US$m | After 5\u00a0years US$m | Total US$m |
Non-derivative financial liabilities | ||||||||||
Trade and other financial payables (a) | (7,374) | (82) | (31) | (354) | (7,841) | (6,032) | (30) | (43) | (307) | (6,412) |
Expected lease liability payments | (581) | (376) | (489) | (428) | (1,874) | (398) | (306) | (488) | (551) | (1,743) |
Borrowings before swaps | (738) | (1,158) | (6,298) | (13,906) | (22,100) | (185) | (630) | (3,007) | (8,854) | (12,676) |
Expected future interest payments (a) | (1,182) | (1,188) | (2,911) | (8,256) | (13,537) | (748) | (729) | (1,873) | (4,260) | (7,610) |
Other financial liabilities | (66) | \u2013 | \u2013 | \u2013 | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Derivative financial liabilities (b) | ||||||||||
(34) | (34) | (35) | 1 | (102) | (78) | (50) | (86) | (17) | (231) | |
\u2013 gross inflows | 27 | 27 | 728 | \u2013 | 782 | 13 | 25 | 701 | \u2013 | 739 |
\u2013 gross outflows | (34) | (34) | (875) | \u2013 | (943) | (34) | (34) | (909) | \u2013 | (977) |
(176) | (105) | (219) | (59) | (559) | (81) | (33) | (117) | (149) | (380) | |
\u2013 gross inflows | 136 | \u2013 | \u2013 | \u2013 | 136 | 240 | \u2013 | \u2013 | \u2013 | 240 |
\u2013 gross outflows | (137) | \u2013 | \u2013 | \u2013 | (137) | (240) | \u2013 | \u2013 | \u2013 | (240) |
Total | (10,159) | (2,950) | (10,130) | (23,002) | (46,241) | (7,543) | (1,787) | (5,822) | (14,138) | (29,290) |
Note | 2025 US$m | 2024 US$m | |
2025 | 2024 | |
2025 | 2024 | |||||||||
(Outflows)/Inflows | Within 1 year or on demand US$m | Between 1\u00a0and 2 years US$m | Between 2\u00a0and 5 years US$m | After 5\u00a0years US$m | Total US$m | Within 1 year or on demand US$m | Between 1\u00a0and 2 years US$m | Between 2\u00a0and 5 years US$m | After 5\u00a0years US$m | Total US$m |
Non-derivative financial liabilities | ||||||||||
Trade and other financial payables (a) | (7,374) | (82) | (31) | (354) | (7,841) | (6,032) | (30) | (43) | (307) | (6,412) |
Expected lease liability payments | (581) | (376) | (489) | (428) | (1,874) | (398) | (306) | (488) | (551) | (1,743) |
Borrowings before swaps | (738) | (1,158) | (6,298) | (13,906) | (22,100) | (185) | (630) | (3,007) | (8,854) | (12,676) |
Expected future interest payments (a) | (1,182) | (1,188) | (2,911) | (8,256) | (13,537) | (748) | (729) | (1,873) | (4,260) | (7,610) |
Other financial liabilities | (66) | \u2013 | \u2013 | \u2013 | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Derivative financial liabilities (b) | ||||||||||
(34) | (34) | (35) | 1 | (102) | (78) | (50) | (86) | (17) | (231) | |
\u2013 gross inflows | 27 | 27 | 728 | \u2013 | 782 | 13 | 25 | 701 | \u2013 | 739 |
\u2013 gross outflows | (34) | (34) | (875) | \u2013 | (943) | (34) | (34) | (909) | \u2013 | (977) |
(176) | (105) | (219) | (59) | (559) | (81) | (33) | (117) | (149) | (380) | |
\u2013 gross inflows | 136 | \u2013 | \u2013 | \u2013 | 136 | 240 | \u2013 | \u2013 | \u2013 | 240 |
\u2013 gross outflows | (137) | \u2013 | \u2013 | \u2013 | (137) | (240) | \u2013 | \u2013 | \u2013 | (240) |
Total | (10,159) | (2,950) | (10,130) | (23,002) | (46,241) | (7,543) | (1,787) | (5,822) | (14,138) | (29,290) |
2025 | ||||||
Financial liabilities | ||||||
Borrowings excluding overdrafts (note 21) (a) US$m | Lease liabilities (note 22) (b) US$m | Derivatives related to net debt (note 24) (c) US$m | Cash and cash equivalents including overdrafts (note 23) (a) US$m | Other investments (note 24) (d) US$m | Net debt US$m | |
At 1 January | (12,431) | (1,413) | (343) | 8,484 | 212 | (5,491) |
Foreign exchange adjustment | (53) | (60) | 46 | 95 | 14 | 42 |
Net cash movements excluding exchange movements | (7,816) | 522 | (14) | (7) | 131 | (7,184) |
Newly consolidated operations(e) | (1,553) | (46) | \u2013 | 293 | \u2013 | (1,306) |
Other non-cash movements | (71) | (589) | 231 | \u2013 | 6 | (423) |
At 31 December | (21,924) | (1,586) | (80) | 8,865 | 363 | (14,362) |
2024 | ||||||
Financial liabilities | Other assets | |||||
Borrowings excluding overdrafts (note 21) (a) US$m | Lease liabilities (note 22) (b) US$m | Derivatives related to net debt (note 24) (c) US$m | Cash and cash equivalents including overdrafts (note 23) (a) US$m | Other investments (note 24) (d) US$m | Net debt US$m | |
At 1 January | (13,000) | (1,351) | (429) | 9,672 | 877 | (4,231) |
Foreign exchange adjustment | 57 | 69 | (30) | (99) | (1) | (4) |
Cash movements excluding exchange movements | 494 | 455 | 104 | (1,089) | (675) | (711) |
Other non-cash movements | 18 | (586) | 12 | \u2013 | 11 | (545) |
At 31 December | (12,431) | (1,413) | (343) | 8,484 | 212 | (5,491) |
2025 | 2024 | ||||||
Net debt by currency | Borrowings excluding overdrafts US$m | Lease liabilities US$m | Derivatives related to net debt US$m | Cash and cash equivalents US$m | Other investments US$m | Net debt US$m | Net debt US$m |
US dollar | (21,674) | (707) | (80) | 7,921 | \u2013 | (14,540) | (5,743) |
Australian dollar | (64) | (495) | \u2013 | 310 | 363 | 114 | 128 |
Canadian dollar | (186) | (167) | \u2013 | 97 | \u2013 | (256) | (235) |
South African rand | \u2013 | (2) | \u2013 | 147 | \u2013 | 145 | 165 |
Other | \u2013 | (215) | \u2013 | 390 | \u2013 | 175 | 194 |
Total | (21,924) | (1,586) | (80) | 8,865 | 363 | (14,362) | (5,491) |
Carrying value 2025 US$m | Carrying value 2024 US$m | Nominal value of hedged item 2025 US$m | Nominal value of hedged item 2024 US$m | Weighted average interest rate after swaps (where applicable) | Swap maturity (where applicable) | |
Rio Tinto Finance (USA) plc Bonds 4.375% due 2027 (a) (b) | 499 | \u2013 | \u2013 | \u2013 | ||
Rio Tinto Finance (USA) plc Bonds SOFR plus 0.84% due 2028 (a) (b) | 500 | \u2013 | \u2013 | \u2013 | ||
Rio Tinto Finance (USA) plc Bonds 4.5% due 2028 (a) (b) | 748 | \u2013 | \u2013 | \u2013 | ||
Rio Tinto Finance (USA) Limited Bonds 7.125% due 2028 (a) | 786 | 780 | 750 | 750 | 3 month SOFR + 3.54% | 2028 |
Alcan Inc. Debentures 7.25% due 2028(a) | 102 | 101 | 100 | 100 | 6 month SOFR + 3.33% | 2028 |
Rio Tinto Finance (USA) plc Bonds 4.875% due 2030 (a) (b) | 1,754 | \u2013 | 1,250 | \u2013 | 6 month SOFR + 1.30% | 2030 |
Alcan Inc. Debentures 7.25% due 2031(a) | 415 | 402 | 400 | 400 | 6 month SOFR + 3.46% | 2031 |
Rio Tinto Finance (USA) plc Bonds 5.0% due 2032 (a) (b) | 1,258 | \u2013 | 1,250 | \u2013 | 6 month SOFR + 1.18% | 2032 |
Rio Tinto Finance (USA) plc Bonds 5.0% due 2033(a) | 658 | 646 | 650 | 650 | 6 month SOFR + 0.96% | 2026/2033 |
Alcan Inc. Global Notes 6.125% due 2033 (a) | 754 | 731 | 750 | 750 | 6 month SOFR + 2.26% | 2033 |
Alcan Inc. Global Notes 5.75% due 2035 (a) | 296 | 287 | 300 | 300 | 6 month SOFR + 1.83% | 2035 |
Rio Tinto Finance (USA) plc Bonds 5.25% due 2035 (a)(b) | 1,737 | \u2013 | 1,750 | \u2013 | 6 month SOFR + 1.48% | 2035 |
Rio Tinto Finance (USA) Limited Bonds 5.2% due 2040 (a) | 1,174 | 1,142 | 1,150 | 1,150 | 6 month SOFR + 1.18% | 2033 |
Rio Tinto Finance (USA) plc Bonds 4.75% due 2042(a) | 494 | 492 | 500 | 500 | 6 month SOFR + 0.65% | 2026 |
Rio Tinto Finance (USA) plc Bonds 4.125% due 2042 | 732 | 732 | \u2013 | \u2013 | ||
Rio Tinto Finance (USA) Limited Bonds 2.75% due 2051 (a) | 1,157 | 1,103 | 1,250 | 1,250 | 6 month SOFR + 1.57% | 2028 |
Rio Tinto Finance (USA) plc Bonds 5.125% due 2053(a) | 1,127 | 1,097 | 1,100 | 1,100 | 6 month SOFR + 0.76% | 2033 |
Rio Tinto Finance (USA) plc Bonds 5.75% due 2055(a)(b) | 1,729 | \u2013 | 1,750 | \u2013 | 6 month SOFR + 1.95% | 2034 |
Rio Tinto Finance (USA) plc Bonds 5.875% due 2065(a)(b) | 744 | \u2013 | 750 | \u2013 | 6 month SOFR + 2.07% | 2035 |
Listed bonds(d) | 17,336 | 8,137 | ||||
Oyu Tolgoi LLC MIGA Insured Loan SOFR plus 2.65% due\u00a02032 (e)(f) | 588 | 603 | ||||
Oyu Tolgoi LLC Commercial Banks \u201cB Loan\u201d SOFR plus 3.4% due 2032 (e)(f) | 1,355 | 1,392 | ||||
Oyu Tolgoi LLC Export Credit Agencies Loan 4.72% due 2033 (e)(f) | 244 | 249 | ||||
Oyu Tolgoi LLC Export Credit Agencies Loan SOFR plus 3.65% due 2034(e)(f) | 796 | 816 | ||||
772 | 792 | |||||
Oyu Tolgoi project finance(d) | 3,755 | 3,852 | ||||
Other secured loans | 39 | 93 | ||||
Other unsecured loans | 794 | 349 | ||||
Bank overdrafts | 7 | 11 | ||||
Other borrowings(d) | 840 | 453 | ||||
Total borrowings(g) | 21,931 | 12,442 | ||||
Comprising: | ||||||
Current borrowings | 733 | 180 | ||||
Non-current borrowings | 21,198 | 12,262 | ||||
Total borrowings (g) | 21,931 | 12,442 |
(a) | The fair value movements of our borrowings and interest rate swaps that are in fair value hedge relationships are included in note 9. |
(b) | On 14\u00a0March 2025, we issued US$9 billion of fixed and floating rate SEC-registered debt securities. The proceeds from the bond issuance, net of issuance costs and discount, were partly used to repay our US$7 billion bridge loan facility which was drawn on 6\u00a0March 2025 to fund the acquisition of Arcadium Lithium plc. Refer to note 5 for further details. |
(c) | Rio Tinto has a US$10 billion (2024: US$10 billion) Euro Medium Term Note Programme against which the cumulative amount utilised was US$674 million equivalent at 31\u00a0December 2025 (2024: US$626 million). The carrying value of these bonds after hedge accounting adjustments amounted to US$672 million (2024: US$624 million) in aggregate. |
(d) | Our listed bonds have a fair value of US$17,148 million (2024: US$7,702 million) and are categorised as level 1 in the fair value hierarchy, while those relating to project finance drawn down by Oyu Tolgoi (fair value of US$3,990 million 2024: US$4,103 million) use a number of level 3 valuation inputs. Our remaining borrowings have a fair value of US$795 million (2024: US$416 million), and are categorised as level 2 in the fair value hierarchy. The fair values of some of our financial instruments approximate their carrying values because of their short maturity, or because they carry floating rates of interest. |
(e) | These borrowings relate to the Oyu Tolgoi LLC project finance facility and the due dates stated represent the final repayment date. The interest rates stated are pre-completion and will increase by 1.2% post-completion, which is expected to take place in 2029, subject to meeting certain conditions. |
(f) | Our bank borrowings in Oyu Tolgoi (OT) are subject to financial covenants which require that OT maintains a certain level of debt-equity ratio and a debt service coverage ratio. These covenants are tested at the end of each month. Based on our forecasting, we consider this risk of non-compliance with these covenants to be remote. |
(g) | The Group\u2019s borrowings of US$21,931 million (2024: US$12,442 million) include US$3,795 million (2024: US$3,945 million) of subsidiary entity borrowings that are subject to various financial and general covenants with which the respective borrowers were in compliance as at 31\u00a0December 2025 and are expected to be in compliance within 12 months after the reporting date. The non-compliance with these covenants, if not remediated, could permit the lender to immediately call the loan and borrowings. |
Other relevant judgements | Accounting for renewable power purchase agreements |
We have to apply judgement for certain contractual arrangements, such as renewable energy power purchase agreements (PPAs), in evaluating whether we have the right to obtain substantially all of the economic benefits from the use of the renewable energy assets, including the right to obtain physical energy these assets generate. Based on our evaluation, we determine whether an arrangement is a lease, an executory contract or a derivative. An immaterial amount was recognised as a lease at both 31\u00a0December 2025 and 31\u00a0December 2024 for a fixed component of the QMM renewable PPA. The Amrun and Jinbi renewable PPAs are leases which have not yet commenced, and are included in our decarbonisation capital commitments (note 37). |
Description of payment | Included within | 2025 US$m | 2024 US$m |
Principal lease payments | Cash flows from financing activities | 522 | 455 |
Interest payments on leases | Cash flows from operating activities | 67 | 67 |
Short life leases | Net operating costs | 269 | 217 |
Variable lease components | Net operating costs | 84 | 46 |
Low value leases (>12 months in duration) | Net operating costs | 3 | 3 |
Total lease payments | 945 | 788 |
2025 US$m | 2024 US$m | |
Lease liabilities | ||
Due within 1 year | 581 | 398 |
Between 1 and 3 years | 614 | 513 |
Between 3 and 5 years | 251 | 281 |
More than 5 years | 428 | 551 |
Total undiscounted cash payments expected to be made | 1,874 | 1,743 |
Effect of discounting | (288) | (330) |
Present value of minimum lease payments | 1,586 | 1,413 |
Comprising: | ||
Current lease liabilities per the balance sheet | 524 | 354 |
Non-current lease liabilities per the balance sheet | 1,062 | 1,059 |
Total lease liabilities | 1,586 | 1,413 |
Note | 2025 US$m | 2024 US$m | |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest\u00a0premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in \u201cnet operating costs\u201d (within \u201cother external costs\u201d - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. |
2025 | 2024 | |||||||||
Nominal aluminium forward sales embedded in power contracts | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total |
Nominal amount (tonnes) | 71,509 | 208,208 | \u2013 | \u2013 | 279,717 | 73,117 | 286,455 | \u2013 | \u2013 | 359,572 |
Nominal amount (US$m) | 174 | 524 | \u2013 | \u2013 | 698 | 174 | 716 | \u2013 | \u2013 | 890 |
Nominal future energy purchase in power purchase agreements | ||||||||||
Nominal amount (GW) | 5 | 20 | 25 | 44 | 94 | 5 | 20 | 25 | 49 | 99 |
Nominal amount (US$m) | 197 | 818 | 1,134 | 2,294 | 4,443 | 191 | 774 | 1,045 | 2,422 | 4,432 |
Hedging instrument | Hedged item | |||||||
Nominal US$m | Carrying amount(a) US$m | Change in fair value in the period US$m | Cash flow hedge reserve (b) US$m | Change in fair value in the period US$m | Total hedging gains/ (losses) recognised in\u00a0reserves US$m | Hedge ineffectiveness in the period gains US$m | (Gains)/losses reclassified from reserves to income statement US$m | |
Nominal aluminium forward sales | Highly probable forecast aluminium sales | |||||||
2025 | 698 | (216) | (135) | (159) | 406 | (135) | \u2013 | 20 |
2024 | 890 | (113) | 42 | (39) | (26) | 42 | \u2013 | 5 |
Power purchase agreements | Highly probable future energy purchases | |||||||
2025 | 4,443 | (2) | 39 | (2) | 5 | 139 | 93 | (133) |
2024 | 4,432 | (41) | (41) | (7) | (7) | (7) | 36 | \u2013 |
Key accounting estimate | Power related commodity derivatives |
Embedded derivatives in aluminium power contracts | Renewable power purchase agreements | ||||
Change in market prices | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Effect on net earnings | +10% | (42) | (42) | \u2013 | 42 |
(10)% | 31 | 69 | (87) | 11 | |
Effect on equity | +10% | (64) | (68) | 262 | 205 |
(10)% | 65 | 42 | (175) | (258) |
Impact of climate change on our business | Renewable power purchase agreements |
As part of the program to develop renewable energy solutions for our Queensland aluminium assets, we entered into long-term renewable 2.2\u00a0GW PPAs to buy renewable electricity and associated carbon credits to be generated in the future from the Upper Calliope solar farm and the Bungaban wind farm. In 2025, we entered into 2 long term hybrid services agreements with Edify Energy for a total combined capacity of 574 MW solar farm paired with battery energy storage systems. In 2024, our New Zealand Aluminium Smelters signed long term PPAs with electricity generators for a total of 572 MW of a diversified mix of renewable electricity. We also signed PPAs with the Monte Cristo and Monarch Creek wind farm in the US. Renewable power purchase agreements are recorded as derivatives, with net fair value of US$29 million (asset) recognised in the current year (2024: US$111 million (liability)) and require complex derivative measurement over the contract\u2019s term categorised under level 3 with significant unobservable inputs related to future energy\u00a0prices. |
2025 | 2024 | |||||
Currency exposure | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m |
Australian dollar | 67 | 376 | (1,090) | 62 | 391 | (977) |
Canadian dollar | 73 | (487) | \u2013 | 70 | (362) | \u2013 |
2025 | 2024 | ||||||||||
Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m | ||||||
Note | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | |||||
Assets | |||||||||||
Cash and cash equivalents (d) | 23 | 3,725 | \u2013 | \u2013 | 5,147 | 8,872 | 4,893 | \u2013 | \u2013 | 3,602 | 8,495 |
Investments in equity shares and\u00a0funds (e) | 24 | 179 | \u2013 | 139 | \u2013 | 318 | 96 | \u2013 | 183 | \u2013 | 279 |
Other investments, including\u00a0loans(f) | 24 | 25 | 3 | 324 | 481 | 833 | 230 | \u2013 | 275 | 104 | 609 |
Trade and other financial\u00a0receivables (g) | 17 | 4 | 1,440 | \u2013 | 2,469 | 3,913 | 15 | 1,379 | \u2013 | 1,948 | 3,342 |
Loans to equity accounted units | 24 | \u2013 | \u2013 | \u2013 | 800 | 800 | \u2013 | \u2013 | \u2013 | 509 | 509 |
Forward, option and embedded derivative contracts: designated as hedges (h) | 24 | \u2013 | \u2013 | 59 | \u2013 | 59 | \u2013 | \u2013 | 27 | \u2013 | 27 |
Forward, option and embedded derivative contracts, not designated as hedges (h) | 24 | \u2013 | 23 | 89 | \u2013 | 112 | \u2013 | 42 | 19 | \u2013 | 61 |
Derivatives related to net debt(i) | 24 | \u2013 | 151 | \u2013 | \u2013 | 151 | \u2013 | 24 | \u2013 | \u2013 | 24 |
Liabilities | |||||||||||
Trade and other financial\u00a0payables(j) | 18 | \u2013 | (190) | \u2013 | (7,923) | (8,113) | \u2013 | (144) | \u2013 | (6,392) | (6,536) |
Forward, option and embedded derivatives contracts, designated as hedges (h) | 24 | \u2013 | \u2013 | (277) | \u2013 | (277) | \u2013 | \u2013 | (180) | \u2013 | (180) |
Forward, option and embedded derivatives contracts, not designated as hedges (h) | 24 | \u2013 | (68) | (162) | \u2013 | (230) | \u2013 | (48) | (108) | \u2013 | (156) |
Derivatives related to net debt(i) | 24 | \u2013 | (231) | \u2013 | \u2013 | (231) | \u2013 | (367) | \u2013 | \u2013 | (367) |
Other financial liabilities | 24 | \u2013 | \u2013 | \u2013 | (66) | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
2025 | 2024 | |
Level 3 financial assets and liabilities | US$m | US$m |
Opening balance | 216 | 147 |
Currency translation adjustments | 16 | (12) |
Total realised gains/(losses) included in: | ||
\u2013 net operating costs | 31 | (32) |
Total unrealised gains included in: | ||
\u2013 net operating costs | 136 | 22 |
Total unrealised (losses)/gains transferred into other comprehensive income through cash flow hedges | (105) | 34 |
Additions/acquisition of financial assets | 85 | 88 |
Disposals/maturity of financial instruments | (207) | (31) |
Closing balance | 172 | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 113 | 3 |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest\u00a0premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in \u201cnet operating costs\u201d (within \u201cother external costs\u201d - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. |
2025 | 2024 | |||||||||
Nominal aluminium forward sales embedded in power contracts | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total |
Nominal amount (tonnes) | 71,509 | 208,208 | \u2013 | \u2013 | 279,717 | 73,117 | 286,455 | \u2013 | \u2013 | 359,572 |
Nominal amount (US$m) | 174 | 524 | \u2013 | \u2013 | 698 | 174 | 716 | \u2013 | \u2013 | 890 |
Nominal future energy purchase in power purchase agreements | ||||||||||
Nominal amount (GW) | 5 | 20 | 25 | 44 | 94 | 5 | 20 | 25 | 49 | 99 |
Nominal amount (US$m) | 197 | 818 | 1,134 | 2,294 | 4,443 | 191 | 774 | 1,045 | 2,422 | 4,432 |
Hedging instrument | Hedged item | |||||||
Nominal US$m | Carrying amount(a) US$m | Change in fair value in the period US$m | Cash flow hedge reserve (b) US$m | Change in fair value in the period US$m | Total hedging gains/ (losses) recognised in\u00a0reserves US$m | Hedge ineffectiveness in the period gains US$m | (Gains)/losses reclassified from reserves to income statement US$m | |
Nominal aluminium forward sales | Highly probable forecast aluminium sales | |||||||
2025 | 698 | (216) | (135) | (159) | 406 | (135) | \u2013 | 20 |
2024 | 890 | (113) | 42 | (39) | (26) | 42 | \u2013 | 5 |
Power purchase agreements | Highly probable future energy purchases | |||||||
2025 | 4,443 | (2) | 39 | (2) | 5 | 139 | 93 | (133) |
2024 | 4,432 | (41) | (41) | (7) | (7) | (7) | 36 | \u2013 |
Key accounting estimate | Power related commodity derivatives |
Embedded derivatives in aluminium power contracts | Renewable power purchase agreements | ||||
Change in market prices | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Effect on net earnings | +10% | (42) | (42) | \u2013 | 42 |
(10)% | 31 | 69 | (87) | 11 | |
Effect on equity | +10% | (64) | (68) | 262 | 205 |
(10)% | 65 | 42 | (175) | (258) |
2025 | 2024 | ||||||||||
Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m | ||||||
Note | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | |||||
Assets | |||||||||||
Cash and cash equivalents (d) | 23 | 3,725 | \u2013 | \u2013 | 5,147 | 8,872 | 4,893 | \u2013 | \u2013 | 3,602 | 8,495 |
Investments in equity shares and\u00a0funds (e) | 24 | 179 | \u2013 | 139 | \u2013 | 318 | 96 | \u2013 | 183 | \u2013 | 279 |
Other investments, including\u00a0loans(f) | 24 | 25 | 3 | 324 | 481 | 833 | 230 | \u2013 | 275 | 104 | 609 |
Trade and other financial\u00a0receivables (g) | 17 | 4 | 1,440 | \u2013 | 2,469 | 3,913 | 15 | 1,379 | \u2013 | 1,948 | 3,342 |
Loans to equity accounted units | 24 | \u2013 | \u2013 | \u2013 | 800 | 800 | \u2013 | \u2013 | \u2013 | 509 | 509 |
Forward, option and embedded derivative contracts: designated as hedges (h) | 24 | \u2013 | \u2013 | 59 | \u2013 | 59 | \u2013 | \u2013 | 27 | \u2013 | 27 |
Forward, option and embedded derivative contracts, not designated as hedges (h) | 24 | \u2013 | 23 | 89 | \u2013 | 112 | \u2013 | 42 | 19 | \u2013 | 61 |
Derivatives related to net debt(i) | 24 | \u2013 | 151 | \u2013 | \u2013 | 151 | \u2013 | 24 | \u2013 | \u2013 | 24 |
Liabilities | |||||||||||
Trade and other financial\u00a0payables(j) | 18 | \u2013 | (190) | \u2013 | (7,923) | (8,113) | \u2013 | (144) | \u2013 | (6,392) | (6,536) |
Forward, option and embedded derivatives contracts, designated as hedges (h) | 24 | \u2013 | \u2013 | (277) | \u2013 | (277) | \u2013 | \u2013 | (180) | \u2013 | (180) |
Forward, option and embedded derivatives contracts, not designated as hedges (h) | 24 | \u2013 | (68) | (162) | \u2013 | (230) | \u2013 | (48) | (108) | \u2013 | (156) |
Derivatives related to net debt(i) | 24 | \u2013 | (231) | \u2013 | \u2013 | (231) | \u2013 | (367) | \u2013 | \u2013 | (367) |
Other financial liabilities | 24 | \u2013 | \u2013 | \u2013 | (66) | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
2025 | 2024 | |
Level 3 financial assets and liabilities | US$m | US$m |
Opening balance | 216 | 147 |
Currency translation adjustments | 16 | (12) |
Total realised gains/(losses) included in: | ||
\u2013 net operating costs | 31 | (32) |
Total unrealised gains included in: | ||
\u2013 net operating costs | 136 | 22 |
Total unrealised (losses)/gains transferred into other comprehensive income through cash flow hedges | (105) | 34 |
Additions/acquisition of financial assets | 85 | 88 |
Disposals/maturity of financial instruments | (207) | (31) |
Closing balance | 172 | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 113 | 3 |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest\u00a0premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in \u201cnet operating costs\u201d (within \u201cother external costs\u201d - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. |
2025 | 2024 | |||||||||
Nominal aluminium forward sales embedded in power contracts | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total |
Nominal amount (tonnes) | 71,509 | 208,208 | \u2013 | \u2013 | 279,717 | 73,117 | 286,455 | \u2013 | \u2013 | 359,572 |
Nominal amount (US$m) | 174 | 524 | \u2013 | \u2013 | 698 | 174 | 716 | \u2013 | \u2013 | 890 |
Nominal future energy purchase in power purchase agreements | ||||||||||
Nominal amount (GW) | 5 | 20 | 25 | 44 | 94 | 5 | 20 | 25 | 49 | 99 |
Nominal amount (US$m) | 197 | 818 | 1,134 | 2,294 | 4,443 | 191 | 774 | 1,045 | 2,422 | 4,432 |
Hedging instrument | Hedged item | |||||||
Nominal US$m | Carrying amount(a) US$m | Change in fair value in the period US$m | Cash flow hedge reserve (b) US$m | Change in fair value in the period US$m | Total hedging gains/ (losses) recognised in\u00a0reserves US$m | Hedge ineffectiveness in the period gains US$m | (Gains)/losses reclassified from reserves to income statement US$m | |
Nominal aluminium forward sales | Highly probable forecast aluminium sales | |||||||
2025 | 698 | (216) | (135) | (159) | 406 | (135) | \u2013 | 20 |
2024 | 890 | (113) | 42 | (39) | (26) | 42 | \u2013 | 5 |
Power purchase agreements | Highly probable future energy purchases | |||||||
2025 | 4,443 | (2) | 39 | (2) | 5 | 139 | 93 | (133) |
2024 | 4,432 | (41) | (41) | (7) | (7) | (7) | 36 | \u2013 |
Key accounting estimate | Power related commodity derivatives |
Embedded derivatives in aluminium power contracts | Renewable power purchase agreements | ||||
Change in market prices | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Effect on net earnings | +10% | (42) | (42) | \u2013 | 42 |
(10)% | 31 | 69 | (87) | 11 | |
Effect on equity | +10% | (64) | (68) | 262 | 205 |
(10)% | 65 | 42 | (175) | (258) |
Impact of climate change on our business | Renewable power purchase agreements |
As part of the program to develop renewable energy solutions for our Queensland aluminium assets, we entered into long-term renewable 2.2\u00a0GW PPAs to buy renewable electricity and associated carbon credits to be generated in the future from the Upper Calliope solar farm and the Bungaban wind farm. In 2025, we entered into 2 long term hybrid services agreements with Edify Energy for a total combined capacity of 574 MW solar farm paired with battery energy storage systems. In 2024, our New Zealand Aluminium Smelters signed long term PPAs with electricity generators for a total of 572 MW of a diversified mix of renewable electricity. We also signed PPAs with the Monte Cristo and Monarch Creek wind farm in the US. Renewable power purchase agreements are recorded as derivatives, with net fair value of US$29 million (asset) recognised in the current year (2024: US$111 million (liability)) and require complex derivative measurement over the contract\u2019s term categorised under level 3 with significant unobservable inputs related to future energy\u00a0prices. |
2025 | 2024 | |||||
Currency exposure | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m |
Australian dollar | 67 | 376 | (1,090) | 62 | 391 | (977) |
Canadian dollar | 73 | (487) | \u2013 | 70 | (362) | \u2013 |
2025 | 2024 | ||||||||||
Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m | ||||||
Note | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | |||||
Assets | |||||||||||
Cash and cash equivalents (d) | 23 | 3,725 | \u2013 | \u2013 | 5,147 | 8,872 | 4,893 | \u2013 | \u2013 | 3,602 | 8,495 |
Investments in equity shares and\u00a0funds (e) | 24 | 179 | \u2013 | 139 | \u2013 | 318 | 96 | \u2013 | 183 | \u2013 | 279 |
Other investments, including\u00a0loans(f) | 24 | 25 | 3 | 324 | 481 | 833 | 230 | \u2013 | 275 | 104 | 609 |
Trade and other financial\u00a0receivables (g) | 17 | 4 | 1,440 | \u2013 | 2,469 | 3,913 | 15 | 1,379 | \u2013 | 1,948 | 3,342 |
Loans to equity accounted units | 24 | \u2013 | \u2013 | \u2013 | 800 | 800 | \u2013 | \u2013 | \u2013 | 509 | 509 |
Forward, option and embedded derivative contracts: designated as hedges (h) | 24 | \u2013 | \u2013 | 59 | \u2013 | 59 | \u2013 | \u2013 | 27 | \u2013 | 27 |
Forward, option and embedded derivative contracts, not designated as hedges (h) | 24 | \u2013 | 23 | 89 | \u2013 | 112 | \u2013 | 42 | 19 | \u2013 | 61 |
Derivatives related to net debt(i) | 24 | \u2013 | 151 | \u2013 | \u2013 | 151 | \u2013 | 24 | \u2013 | \u2013 | 24 |
Liabilities | |||||||||||
Trade and other financial\u00a0payables(j) | 18 | \u2013 | (190) | \u2013 | (7,923) | (8,113) | \u2013 | (144) | \u2013 | (6,392) | (6,536) |
Forward, option and embedded derivatives contracts, designated as hedges (h) | 24 | \u2013 | \u2013 | (277) | \u2013 | (277) | \u2013 | \u2013 | (180) | \u2013 | (180) |
Forward, option and embedded derivatives contracts, not designated as hedges (h) | 24 | \u2013 | (68) | (162) | \u2013 | (230) | \u2013 | (48) | (108) | \u2013 | (156) |
Derivatives related to net debt(i) | 24 | \u2013 | (231) | \u2013 | \u2013 | (231) | \u2013 | (367) | \u2013 | \u2013 | (367) |
Other financial liabilities | 24 | \u2013 | \u2013 | \u2013 | (66) | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
2025 | 2024 | |
Level 3 financial assets and liabilities | US$m | US$m |
Opening balance | 216 | 147 |
Currency translation adjustments | 16 | (12) |
Total realised gains/(losses) included in: | ||
\u2013 net operating costs | 31 | (32) |
Total unrealised gains included in: | ||
\u2013 net operating costs | 136 | 22 |
Total unrealised (losses)/gains transferred into other comprehensive income through cash flow hedges | (105) | 34 |
Additions/acquisition of financial assets | 85 | 88 |
Disposals/maturity of financial instruments | (207) | (31) |
Closing balance | 172 | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 113 | 3 |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Classification of financial asset | Amortised cost | Fair value through profit and\u00a0loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value.\u00a0 |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
2025 | 2024 | |||||||||
Nominal aluminium forward sales embedded in power contracts | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total |
Nominal amount (tonnes) | 71,509 | 208,208 | \u2013 | \u2013 | 279,717 | 73,117 | 286,455 | \u2013 | \u2013 | 359,572 |
Nominal amount (US$m) | 174 | 524 | \u2013 | \u2013 | 698 | 174 | 716 | \u2013 | \u2013 | 890 |
Nominal future energy purchase in power purchase agreements | ||||||||||
Nominal amount (GW) | 5 | 20 | 25 | 44 | 94 | 5 | 20 | 25 | 49 | 99 |
Nominal amount (US$m) | 197 | 818 | 1,134 | 2,294 | 4,443 | 191 | 774 | 1,045 | 2,422 | 4,432 |
Hedging instrument | Hedged item | |||||||
Nominal US$m | Carrying amount(a) US$m | Change in fair value in the period US$m | Cash flow hedge reserve (b) US$m | Change in fair value in the period US$m | Total hedging gains/ (losses) recognised in\u00a0reserves US$m | Hedge ineffectiveness in the period gains US$m | (Gains)/losses reclassified from reserves to income statement US$m | |
Nominal aluminium forward sales | Highly probable forecast aluminium sales | |||||||
2025 | 698 | (216) | (135) | (159) | 406 | (135) | \u2013 | 20 |
2024 | 890 | (113) | 42 | (39) | (26) | 42 | \u2013 | 5 |
Power purchase agreements | Highly probable future energy purchases | |||||||
2025 | 4,443 | (2) | 39 | (2) | 5 | 139 | 93 | (133) |
2024 | 4,432 | (41) | (41) | (7) | (7) | (7) | 36 | \u2013 |
Key accounting estimate | Power related commodity derivatives |
Embedded derivatives in aluminium power contracts | Renewable power purchase agreements | ||||
Change in market prices | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Effect on net earnings | +10% | (42) | (42) | \u2013 | 42 |
(10)% | 31 | 69 | (87) | 11 | |
Effect on equity | +10% | (64) | (68) | 262 | 205 |
(10)% | 65 | 42 | (175) | (258) |
Impact of climate change on our business | Renewable power purchase agreements |
As part of the program to develop renewable energy solutions for our Queensland aluminium assets, we entered into long-term renewable 2.2\u00a0GW PPAs to buy renewable electricity and associated carbon credits to be generated in the future from the Upper Calliope solar farm and the Bungaban wind farm. In 2025, we entered into 2 long term hybrid services agreements with Edify Energy for a total combined capacity of 574 MW solar farm paired with battery energy storage systems. In 2024, our New Zealand Aluminium Smelters signed long term PPAs with electricity generators for a total of 572 MW of a diversified mix of renewable electricity. We also signed PPAs with the Monte Cristo and Monarch Creek wind farm in the US. Renewable power purchase agreements are recorded as derivatives, with net fair value of US$29 million (asset) recognised in the current year (2024: US$111 million (liability)) and require complex derivative measurement over the contract\u2019s term categorised under level 3 with significant unobservable inputs related to future energy\u00a0prices. |
2025 | 2024 | |||||
Currency exposure | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m |
Australian dollar | 67 | 376 | (1,090) | 62 | 391 | (977) |
Canadian dollar | 73 | (487) | \u2013 | 70 | (362) | \u2013 |
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest\u00a0premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in \u201cnet operating costs\u201d (within \u201cother external costs\u201d - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. |
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest\u00a0premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in \u201cnet operating costs\u201d (within \u201cother external costs\u201d - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. |
2025 | 2024 | ||||||||||
Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m | ||||||
Note | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | |||||
Assets | |||||||||||
Cash and cash equivalents (d) | 23 | 3,725 | \u2013 | \u2013 | 5,147 | 8,872 | 4,893 | \u2013 | \u2013 | 3,602 | 8,495 |
Investments in equity shares and\u00a0funds (e) | 24 | 179 | \u2013 | 139 | \u2013 | 318 | 96 | \u2013 | 183 | \u2013 | 279 |
Other investments, including\u00a0loans(f) | 24 | 25 | 3 | 324 | 481 | 833 | 230 | \u2013 | 275 | 104 | 609 |
Trade and other financial\u00a0receivables (g) | 17 | 4 | 1,440 | \u2013 | 2,469 | 3,913 | 15 | 1,379 | \u2013 | 1,948 | 3,342 |
Loans to equity accounted units | 24 | \u2013 | \u2013 | \u2013 | 800 | 800 | \u2013 | \u2013 | \u2013 | 509 | 509 |
Forward, option and embedded derivative contracts: designated as hedges (h) | 24 | \u2013 | \u2013 | 59 | \u2013 | 59 | \u2013 | \u2013 | 27 | \u2013 | 27 |
Forward, option and embedded derivative contracts, not designated as hedges (h) | 24 | \u2013 | 23 | 89 | \u2013 | 112 | \u2013 | 42 | 19 | \u2013 | 61 |
Derivatives related to net debt(i) | 24 | \u2013 | 151 | \u2013 | \u2013 | 151 | \u2013 | 24 | \u2013 | \u2013 | 24 |
Liabilities | |||||||||||
Trade and other financial\u00a0payables(j) | 18 | \u2013 | (190) | \u2013 | (7,923) | (8,113) | \u2013 | (144) | \u2013 | (6,392) | (6,536) |
Forward, option and embedded derivatives contracts, designated as hedges (h) | 24 | \u2013 | \u2013 | (277) | \u2013 | (277) | \u2013 | \u2013 | (180) | \u2013 | (180) |
Forward, option and embedded derivatives contracts, not designated as hedges (h) | 24 | \u2013 | (68) | (162) | \u2013 | (230) | \u2013 | (48) | (108) | \u2013 | (156) |
Derivatives related to net debt(i) | 24 | \u2013 | (231) | \u2013 | \u2013 | (231) | \u2013 | (367) | \u2013 | \u2013 | (367) |
Other financial liabilities | 24 | \u2013 | \u2013 | \u2013 | (66) | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
2025 | 2024 | |
Level 3 financial assets and liabilities | US$m | US$m |
Opening balance | 216 | 147 |
Currency translation adjustments | 16 | (12) |
Total realised gains/(losses) included in: | ||
\u2013 net operating costs | 31 | (32) |
Total unrealised gains included in: | ||
\u2013 net operating costs | 136 | 22 |
Total unrealised (losses)/gains transferred into other comprehensive income through cash flow hedges | (105) | 34 |
Additions/acquisition of financial assets | 85 | 88 |
Disposals/maturity of financial instruments | (207) | (31) |
Closing balance | 172 | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 113 | 3 |
2025 | 2024 | ||||||||||
Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m | ||||||
Note | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | Level 1 (a) US$m | Level 2 (b) US$m | Level 3 (c) US$m | |||||
Assets | |||||||||||
Cash and cash equivalents (d) | 23 | 3,725 | \u2013 | \u2013 | 5,147 | 8,872 | 4,893 | \u2013 | \u2013 | 3,602 | 8,495 |
Investments in equity shares and\u00a0funds (e) | 24 | 179 | \u2013 | 139 | \u2013 | 318 | 96 | \u2013 | 183 | \u2013 | 279 |
Other investments, including\u00a0loans(f) | 24 | 25 | 3 | 324 | 481 | 833 | 230 | \u2013 | 275 | 104 | 609 |
Trade and other financial\u00a0receivables (g) | 17 | 4 | 1,440 | \u2013 | 2,469 | 3,913 | 15 | 1,379 | \u2013 | 1,948 | 3,342 |
Loans to equity accounted units | 24 | \u2013 | \u2013 | \u2013 | 800 | 800 | \u2013 | \u2013 | \u2013 | 509 | 509 |
Forward, option and embedded derivative contracts: designated as hedges (h) | 24 | \u2013 | \u2013 | 59 | \u2013 | 59 | \u2013 | \u2013 | 27 | \u2013 | 27 |
Forward, option and embedded derivative contracts, not designated as hedges (h) | 24 | \u2013 | 23 | 89 | \u2013 | 112 | \u2013 | 42 | 19 | \u2013 | 61 |
Derivatives related to net debt(i) | 24 | \u2013 | 151 | \u2013 | \u2013 | 151 | \u2013 | 24 | \u2013 | \u2013 | 24 |
Liabilities | |||||||||||
Trade and other financial\u00a0payables(j) | 18 | \u2013 | (190) | \u2013 | (7,923) | (8,113) | \u2013 | (144) | \u2013 | (6,392) | (6,536) |
Forward, option and embedded derivatives contracts, designated as hedges (h) | 24 | \u2013 | \u2013 | (277) | \u2013 | (277) | \u2013 | \u2013 | (180) | \u2013 | (180) |
Forward, option and embedded derivatives contracts, not designated as hedges (h) | 24 | \u2013 | (68) | (162) | \u2013 | (230) | \u2013 | (48) | (108) | \u2013 | (156) |
Derivatives related to net debt(i) | 24 | \u2013 | (231) | \u2013 | \u2013 | (231) | \u2013 | (367) | \u2013 | \u2013 | (367) |
Other financial liabilities | 24 | \u2013 | \u2013 | \u2013 | (66) | (66) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
2025 | 2024 | |
Level 3 financial assets and liabilities | US$m | US$m |
Opening balance | 216 | 147 |
Currency translation adjustments | 16 | (12) |
Total realised gains/(losses) included in: | ||
\u2013 net operating costs | 31 | (32) |
Total unrealised gains included in: | ||
\u2013 net operating costs | 136 | 22 |
Total unrealised (losses)/gains transferred into other comprehensive income through cash flow hedges | (105) | 34 |
Additions/acquisition of financial assets | 85 | 88 |
Disposals/maturity of financial instruments | (207) | (31) |
Closing balance | 172 | 216 |
Net gains included in the income statement for assets and liabilities held at year end | 113 | 3 |
Subsidiaries and joint operations | Equity accounted units (Rio Tinto share) | Total | |||||||
2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |
Principal locations of employment: | |||||||||
Australia and New Zealand | 24,857 | 25,098 | 25,045 | 929 | 858 | 725 | 25,786 | 25,956 | 25,770 |
Canada | 13,899 | 14,157 | 13,864 | 148 | 50 | 5 | 14,047 | 14,207 | 13,869 |
UK | 417 | 366 | 323 | \u2013 | \u2013 | \u2013 | 417 | 366 | 323 |
Europe (excluding UK) | 896 | 875 | 912 | 24 | 24 | 25 | 920 | 899 | 937 |
Africa | 3,531 | 3,567 | 3,180 | 1,369 | 1,293 | 1,176 | 4,900 | 4,860 | 4,356 |
US | 4,137 | 4,113 | 3,973 | 273 | 311 | 58 | 4,410 | 4,424 | 4,031 |
Mongolia | 5,128 | 4,962 | 4,700 | \u2013 | \u2013 | \u2013 | 5,128 | 4,962 | 4,700 |
Argentina | 1,715 | 226 | 171 | 18 | \u2013 | \u2013 | 1,733 | 226 | 171 |
South America (excluding Argentina) | 240 | 223 | 218 | 1,574 | 1,497 | 1,414 | 1,814 | 1,720 | 1,632 |
India | 1,181 | 1,183 | 611 | \u2013 | \u2013 | \u2013 | 1,181 | 1,183 | 611 |
Singapore | 488 | 486 | 469 | \u2013 | \u2013 | \u2013 | 488 | 486 | 469 |
Other countries (a) | 376 | 305 | 305 | 30 | \u2013 | \u2013 | 406 | 305 | 305 |
Total | 56,865 | 55,561 | 53,771 | 4,365 | 4,033 | 3,403 | 61,230 | 59,594 | 57,174 |
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
2025 | 2024 | |||
Employment provisions | Pensions and post-retirement healthcare (a) US$m | Other employee entitlements (b) US$m | Total US$m | Total US$m |
At 1 January | 1,063 | 393 | 1,456 | 1,558 |
Adjustment on currency translation | 37 | 31 | 68 | (83) |
Charged/(credited) to profit: | ||||
\u2013 increases to existing and new provisions | 96 | 213 | 309 | 199 |
\u2013 unused amounts reversed | \u2013 | (22) | (22) | (12) |
Utilised in year | (75) | (108) | (183) | (133) |
Remeasurement gains recognised in other comprehensive income | (65) | \u2013 | (65) | (94) |
Newly consolidated operations(c) | \u2013 | 23 | 23 | \u2013 |
Transfers and other movements | \u2013 | 29 | 29 | 21 |
At 31 December | 1,056 | 559 | 1,615 | 1,456 |
Balance sheet analysis: | ||||
Current | 66 | 407 | 473 | 359 |
Non-current | 990 | 152 | 1,142 | 1,097 |
Total employment provisions | 1,056 | 559 | 1,615 | 1,456 |
Charge recognised for the year | Liability at the end of the year | ||||
2025 US$m | 2024 US$m | 2023 US$m | 2025 US$m | 2024 US$m | |
Equity-settled awards | 232 | 170 | 140 | \u2013 | \u2013 |
Cash-settled awards | 5 | 2 | 4 | 7 | 5 |
Total | 237 | 172 | 144 | 7 | 5 |
Rio Tinto plc awards | Rio Tinto Limited awards | |||||||
2025 number | Weighted average fair value at grant date 2025 \u00a3 | 2024 number | Weighted average fair value at grant date 2024 \u00a3 | 2025 number | Weighted average fair value at grant date 2025 A$ | 2024 number | Weighted average fair value at grant date 2024 A$ | |
Unvested awards at 1 January | 2,756,594 | 25.71 | 2,596,811 | 24.34 | 1,368,779 | 59.97 | 1,011,192 | 54.74 |
Awarded | 1,837,822 | 27.77 | 1,077,110 | 28.22 | 1,202,284 | 68.09 | 579,982 | 67.34 |
Forfeited | (229,880) | 28.27 | (77,417) | 27.33 | (89,521) | 69.81 | (35,737) | 60.05 |
Failed performance conditions | (395,425) | 13.55 | (38,101) | 24.68 | (88,804) | 33.56 | (11,058) | 54.55 |
Vested | (193,418) | 23.86 | (801,809) | 24.52 | (12,958) | 33.56 | (175,600) | 54.55 |
Unvested awards at 31 December | 3,775,693 | 27.93 | 2,756,594 | 25.71 | 2,379,780 | 64.83 | 1,368,779 | 59.97 |
Rio Tinto plc awards | Rio Tinto Limited awards | |||||||
2025 number | Weighted average share price at vesting 2025 \u00a3 | 2024 number | Weighted average share price at vesting 2024 \u00a3 | 2025 number | Weighted average share price at vesting 2025 A$ | 2024 number | Weighted average share price at vesting 2024 A$ | |
Vested awards settled in shares during the year (including dividend shares applied on\u00a0vesting) | 83,477 | 50.76 | 924,836 | 51.12 | 13,321 | 119.66 | 143,996 | 124.24 |
Vested awards settled in cash during the year (including dividend shares applied on\u00a0vesting) | 7,168 | 50.62 | 111,446 | 51.70 | 3,672 | 120.09 | 83,388 | 124.36 |
Rio Tinto plc awards (a) | Rio Tinto Limited awards | |||||||
2025 number | Weighted average fair value at grant date 2025 \u00a3 | 2024 number | Weighted average fair value at grant date 2024 \u00a3 | 2025 number | Weighted average fair value at grant date 2025 A$ | 2024 number | Weighted average fair value at grant date 2024 A$ | |
Unvested awards at 1 January (b) | 3,050,734 | 48.43 | 2,810,128 | 50.36 | 2,780,478 | 105.64 | 2,580,993 | 103.11 |
Awarded | 1,909,950 | 45.03 | 1,360,676 | 46.54 | 1,063,340 | 105.25 | 1,189,754 | 110.96 |
Forfeited | (139,906) | 44.00 | (115,973) | 47.67 | (142,690) | 108.76 | (152,069) | 106.75 |
Cancelled | (122,571) | 41.69 | (94,111) | 44.97 | (86,496) | 99.81 | (70,514) | 98.85 |
Vested | (1,161,286) | 50.63 | (909,986) | 52.00 | (869,181) | 97.82 | (767,686) | 105.79 |
Unvested awards at 31 December(b) | 3,536,921 | 46.28 | 3,050,734 | 48.43 | 2,745,451 | 107.98 | 2,780,478 | 105.64 |
Comprising: | ||||||||
\u2013 Management Share Awards | 1,148,442 | 50.27 | 1,337,860 | 52.10 | 1,033,442 | 117.33 | 1,228,291 | 115.71 |
\u2013 Bonus Deferral Awards | 84,650 | 49.21 | 74,844 | 50.75 | 45,181 | 119.97 | 39,652 | 117.82 |
\u2013 Global Employee Share Plan | 1,748,910 | 42.62 | 1,593,851 | 45.11 | 1,666,828 | 101.87 | 1,512,535 | 97.14 |
\u2013 UK Share Plan | 52,940 | 49.67 | 44,179 | 53.25 | \u2013 | \u2013 | \u2013 | \u2013 |
\u2013 Arcadium Plans (Restricted Share Rights) | 14,922 | 49.04 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
\u2013 Arcadium Plans (Restricted Share Units) | 487,057 | 49.04 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Unvested awards at 31 December(b) | 3,536,921 | 46.28 | 3,050,734 | 48.43 | 2,745,451 | 107.98 | 2,780,478 | 105.64 |
Rio Tinto plc awards (a) | Rio Tinto Limited awards | |||||||
2025 number | Weighted average share price at vesting 2025 \u00a3 | 2024 number | Weighted average share price at vesting 2024 \u00a3 | 2025 number | Weighted average share price at vesting 2025 A$ | 2024 number | Weighted average share price at vesting 2024 A$ | |
Vested awards settled in shares during the year (including dividend shares applied on vesting): | ||||||||
\u2013 Management Share Awards | 507,657 | 49.80 | 569,907 | 51.97 | 459,133 | 119.77 | 458,429 | 123.92 |
\u2013 Bonus Deferral Awards | 40,067 | 54.70 | 90,422 | 50.18 | 18,570 | 132.87 | 44,477 | 119.53 |
\u2013 Global Employee Share Plan | 592,326 | 48.12 | 431,973 | 51.59 | 513,754 | 118.22 | 401,915 | 120.73 |
\u2013 UK Share Plan | 11,771 | 48.32 | 7,403 | 51.56 | \u2013 | \u2013 | \u2013 | \u2013 |
\u2013 Arcadium Plans (Restricted Share Rights) | 2,038 | 44.17 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
\u2013 Arcadium Plans (Restricted Share Units) | 81,336 | 47.47 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Vested awards settled in cash during the year (including dividend shares applied on vesting): | ||||||||
\u2013 Bonus Deferral Awards | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
Outstanding unvested options | Number | Weighted average exercise price per option \u00a3 | Weighted average remaining contractual life Years | Aggregate intrinsic value \u00a3m 2025 |
Arcadium Plans (Options) (exercise price \u00a322.89 - \u00a381.92) | 206,778 | 46.61 | 0.68 | 3 |
Outstanding vested options | Number | Weighted average exercise price per option \u00a3 | Weighted average remaining contractual life Years | Aggregate intrinsic value \u00a3m 2025 |
Arcadium Plans (Options) (exercise price \u00a322.89 - \u00a381.92) | 373,753 | 58.93 | \u2013 | 2 |
Uncertainty in benefit\u00a0payments | The value of the Group\u2019s liabilities for post-retirement benefits will ultimately depend on the amount of benefits paid out. This, in turn, will depend on the level of future pay increases, the level of inflation (for those benefits that are subject to some form of inflation protection) and how long individuals live. |
Volatility in asset values | The Group is exposed to future movements in the values of assets held in pension plans to meet future benefit payments. |
Uncertainty in cash\u00a0funding | Movements in the values of the obligations or assets may result in the Group being required to provide higher levels of cash funding, although changes in the level of cash required can often be spread over a number of years. In some countries, control over the rate of cash funding or over the investment policy for pension assets might rest to some extent with a trustee body or other body that is not under the Group\u2019s direct control. In addition, the Group is also exposed to adverse changes in pension regulation. |
Calculation of benefit | Regulatory requirements | Governing body | |
Canada | Linked to final average pay for non-unionised employees. For unionised employees, linked to final average pay or to a flat monetary amount per year of service. | Regulatory requirements in the relevant provinces and territories (predominantly Quebec). | Pension committee, a number of members are appointed by the sponsor and a number appointed by plan participants. In some cases, independent committee members are also appointed. |
UK | Linked to final pay, subject to an earnings\u00a0cap. | Regulatory requirements that apply to UK pension plans. | Trustee board, a number of directors appointed by the sponsor and a number appointed by plan participants and an independent trustee director. |
US | Linked to final average pay for non-unionised employees and to a flat monetary amount per year of service for unionised employees. | US regulations. | Benefit Governance Committee. Members are appointed by the sponsor. |
Switzerland | Linked to final average pay. | Swiss regulations. | Trustee board. Members are appointed by the plan sponsor, by employees and by retirees. |
Australia | Linked to final pay and typically paid in lump sum form. | Local regulations in Australia. | An independent financial institution. One-third of the board positions are nominated by employers. Remaining positions are filled by independent directors and directors nominated by participants. |
2025 | 2024 | |||
Equities | 16.2% | 17.6% | ||
\u2013 Quoted (a) | 10.0% | 11.1% | ||
\u2013 Private (b) | 6.2% | 6.5% | ||
Bonds (c) | 48.6% | 47.7% | ||
\u2013 Government fixed income | 20.7% | 21.0% | ||
\u2013 Government inflation-linked | 1.9% | 1.6% | ||
\u2013 Corporate and other publicly quoted | 18.7% | 17.5% | ||
\u2013 Private | 7.3% | 7.6% | ||
Property(d) | 6.8% | 6.9% | ||
\u2013 Quoted property funds | 2.0% | 2.2% | ||
\u2013 Unquoted property funds | 4.8% | 4.7% | ||
Qualifying insurance policies(e) | 24.0% | 24.3% | ||
Cash and other (f)(g) | 4.4% | 3.5% | ||
Total | 100.0% | 100.0% |
Pension benefits | Other benefits | 2025 Total | 2024 Total | |
Proportion relating to current employees | 18% | 15% | 18% | 18% |
Proportion relating to former employees not yet retired | 9% | \u2013 | 8% | 9% |
Proportion relating to retirees | 73% | 85% | 74% | 73% |
Total | 100% | 100% | 100% | 100% |
Average duration of obligations (years) | 11.1 | 11.2 | 11.1 | 11.5 |
Pension benefits US$m | Other benefits US$m | 2025 Total US$m | 2024 Total US$m | 2023 Total US$m | |
Current employer service cost for defined benefit plans | (77) | (3) | (80) | (83) | (79) |
Past service (cost)/credit | (19) | \u2013 | (19) | (12) | 87 |
Curtailment gains | 3 | 1 | 4 | \u2014 | \u2014 |
Net interest on net defined benefit liability | 4 | (30) | (26) | (32) | (21) |
Non-investment expenses paid from the plans | (21) | \u2013 | (21) | (20) | (20) |
Total defined benefit expense | (110) | (32) | (142) | (147) | (33) |
Current employer service cost for defined contribution and industry-wide\u00a0plans | (481) | (3) | (484) | (458) | (416) |
Total expense recognised in the income statement | (591) | (35) | (626) | (605) | (449) |
2025 US$m | 2024 US$m | 2023 US$m | |
Actuarial gains/(losses) | 155 | 201 | (407) |
Impact of buy-in | \u2013 | \u2013 | (216) |
Return on assets, net of interest on assets | 18 | (130) | 222 |
(Losses)/gains on application of asset ceiling | (8) | 12 | (60) |
Remeasurement gains/(losses) on pension and post-retirement healthcare plans | 165 | 83 | (461) |
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Total fair value of plan assets | 10,572 | \u2013 | 10,572 | 10,155 |
Present value of obligations \u2013 funded | (10,143) | \u2013 | (10,143) | (9,840) |
Present value of obligations \u2013 unfunded | (342) | (572) | (914) | (923) |
Present value of obligations \u2013 total | (10,485) | (572) | (11,057) | (10,763) |
Effect of asset ceiling | (66) | \u2013 | (66) | (50) |
Net surplus/(deficit) to be shown in the balance sheet | 21 | (572) | (551) | (658) |
Comprising: | ||||
\u2013 Deficits | (484) | (572) | (1,056) | (1,063) |
\u2013 Surpluses | 505 | \u2013 | 505 | 405 |
Net surplus/(deficit) on pension plans | 21 | \u2013 | 21 | (82) |
Unfunded post-retirement healthcare obligation | \u2013 | (572) | (572) | (576) |
2025 | 2024 | 2023 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | Total US$m | |
Contributions to defined benefit plans | 65 | 33 | 98 | 107 | 237 |
Contributions to defined contribution plans | 473 | 3 | 476 | 451 | 410 |
Total | 538 | 36 | 574 | 558 | 647 |
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Change in the net defined benefit liability | ||||
Net defined benefit liability at the start of the year | (82) | (576) | (658) | (723) |
Amounts recognised in income statement | (110) | (32) | (142) | (147) |
Amounts recognised in other comprehensive income | 144 | 21 | 165 | 83 |
Employer contributions | 65 | 33 | 98 | 107 |
Assets transferred to defined contribution section | (8) | \u2013 | (8) | (7) |
Currency exchange rate gains/(losses) | 12 | (18) | (6) | 29 |
Net defined benefit surplus/liability at the end of the year | 21 | (572) | (551) | (658) |
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Change in present value of obligation | ||||
Present value of obligation at the start of the year | (10,187) | (576) | (10,763) | (11,795) |
Current employer service costs | (77) | (3) | (80) | (83) |
Past service (cost)/credit | (19) | \u2013 | (19) | (12) |
Curtailments | 3 | 1 | 4 | \u2014 |
Interest on obligation | (471) | (30) | (501) | (497) |
Contributions by plan participants | (17) | \u2013 | (17) | (18) |
Benefits paid | 750 | 33 | 783 | 752 |
Experience (losses)/gains | (21) | 17 | (4) | 2 |
Changes in financial assumptions gains/(losses) | 149 | (1) | 148 | 256 |
Changes in demographic assumptions gains | 6 | 5 | 11 | (57) |
Currency exchange rate losses | (601) | (18) | (619) | 689 |
Present value of obligation at the end of the year | (10,485) | (572) | (11,057) | (10,763) |
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Change in plan assets | ||||
Fair value of plan assets at the start of the year | 10,155 | \u2013 | 10,155 | 11,138 |
Interest on assets | 476 | \u2013 | 476 | 465 |
Contributions by plan participants | 17 | \u2013 | 17 | 18 |
Contributions by employer | 65 | 33 | 98 | 107 |
Benefits paid | (750) | (33) | (783) | (752) |
Non-investment expenses | (21) | \u2013 | (21) | (20) |
Return on plan assets, net of interest on assets | 18 | \u2013 | 18 | (130) |
Assets transferred to defined contribution section | (8) | \u2013 | (8) | (7) |
Currency exchange rate gains | 620 | \u2013 | 620 | (664) |
Fair value of plan assets at the end of the year | 10,572 | \u2013 | 10,572 | 10,155 |
Key estimate | Estimation of obligations for post-employment costs | ||||||
The value of the Group\u2019s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out, discounted to the balance sheet date. The most significant assumptions used in accounting for pension plans are: \u2022 The discount rate used to determine the net present value of the obligations, the interest cost on the obligations and the interest income on plan assets. We use the yield from high-quality corporate bonds with maturities and terms that match those of the post- employment obligations as closely as possible. Where there is no developed corporate bond market in a currency, the rate on government bonds is used. \u2022 The long-term inflation rate used to project increases in future benefit payments for those plans that have benefits linked to inflation. The assumption regarding future inflation is based on market yields on inflation-linked instruments, where possible, combined with consensus views. \u2022 The mortality rates used to project the period over which benefits will be paid, which is then discounted to arrive at the net present value of the obligations. The Group reviews the actual mortality rates of retirees in its major pension plans on a regular basis and uses these rates to set its current mortality assumptions. It also uses its judgement with respect to allowances for future improvements in longevity having regard to standard improvement scales in each relevant country and after taking external actuarial advice. The weighted-average assumptions used for the valuation at year-end are summarised below: | |||||||
At 31\u00a0December 2025 | At 31 December 2024 | ||||||
Discount rate | Long-term inflation (a) | Rate of increase in pensions | Discount rate | Long-term inflation (a) | Rate of increase in pensions | ||
Canada | 4.8% | 2.0% | 0.3% | 4.6% | 2.0% | 0.2% | |
UK | 5.4% | 2.8% | 2.3% | 5.4% | 3.1% | 2.7% | |
US | 5.3% | 2.3% | \u2013% | 5.5% | 2.3% | \u2013% | |
Switzerland | 1.2% | 1.0% | 2.5% | 0.9% | 1.0% | 2.2% | |
(a) The long-term inflation assumption shown for the UK is for the Retail Price Index. The assumption for the Consumer Price Index at 31\u00a0December 2025 was 2.4% (2024: 2.7%). |
2025 | 2024 | ||||
Approximate (increase)/ decrease\u00a0in\u00a0obligations | Approximate (increase)/ decrease\u00a0in\u00a0obligations | ||||
Assumption | Change in assumption | Pensions US$m | Other US$m | Pensions US$m | Other US$m |
Discount rate | Increase of 0.5 percentage points | 409 | 30 | 419 | 31 |
Decrease of 0.5 percentage points | (442) | (31) | (487) | (33) | |
Long-term inflation | Increase of 0.5 percentage points | (155) | (8) | (167) | (9) |
Decrease of 0.5 percentage points | 149 | 7 | 160 | 8 | |
Demographic \u2013 allowance for future improvements in longevity | Participants assumed to have the mortality rates of individuals who are one year older | 228 | 6 | 221 | 8 |
Participants assumed to have the mortality rates of individuals who are one year younger | (228) | (6) | (232) | (8) |
2025 US$\u2019000 | 2024 US$\u2019000 | 2023 US$\u2019000 | |
Emoluments | 10,740 | 8,369 | 7,461 |
Long-term incentive plans | 1,717 | 8,746 | 8,746 |
12,457 | 17,115 | 16,207 | |
Pension contributions to defined contribution plans by Rio Tinto plc | 30 | 26 | 20 |
Pension contributions to defined contribution plans by Rio Tinto Limited | \u2013 | \u2013 | \u2013 |
Aggregate remuneration, including pension contributions | 12,487 | 17,141 | 16,227 |
Incurred by: | |||
Rio Tinto plc | 11,406 | 16,185 | 15,184 |
Rio Tinto Limited | 1,081 | 956 | 1,043 |
12,487 | 17,141 | 16,227 |
2025 US$\u2019000 | 2024 US$\u2019000 | 2023 US$\u2019000 | |
Short-term employee benefits and costs | 19,347 | 19,928 | 16,159 |
Post-employment benefits | 109 | 186 | 155 |
Employment termination benefits | \u2013 | \u2013 | 155 |
Share-based payments | 15,689 | 14,724 | 10,305 |
Total (a) | 35,145 | 34,838 | 26,774 |
Company and country of incorporation/operation | Principal activities | Group interest (%) |
Australia | ||
Tomago Aluminium Joint Venture | Aluminium smelting | 51.55 |
Gladstone Power Station Joint Venture | Power generation | 42.13 |
Hope Downs Joint Venture | Iron ore mining | 50 |
Western Range Joint Venture (a) | Iron ore mining | 54 |
Queensland Alumina Limited (b)(c) | Alumina production | 80 |
Pilbara Iron Arrangements | Infrastructure, corporate and mining services | See other relevant judgements call out box below |
Canada | ||
Aluminerie Alouette Inc. | Aluminium production | 40 |
Pechiney Reynolds Quebec, Inc. (c)(d) | Aluminium smelting | 50.2 |
Other relevant judgements | Accounting for the Pilbara Iron Arrangements |
A number of arrangements are in place amongst the Australian Iron Ore operations, managed by Rio Tinto, which allow their respective assets to be operated as a single integrated network across the Pilbara region. In assessing the Pilbara Iron Arrangements, it has been concluded that they collectively constitute a joint operation on the basis that decisions about relevant activities require unanimous consent. The resulting efficiencies are shared between Rio Tinto and Robe River Iron Associates (Robe River), and the parties fund all of the cash flow requirements of Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. Each of the partners in the joint operation is able to request the other to construct assets on their tenure to increase the capacity of the rail and port infrastructure network. The requesting partner\u2019s (Asset User\u2019s) share of the capacity of the network will increase by the capacity of the newly constructed asset, but generally that capacity may be provided from any of the network assets. The Asset User will pay an annual charge - Committed Use Charge (CUC) - over a contractually specified period irrespective of network usage. The constructing partner (Asset Owner) has an ongoing obligation to make available capacity from those assets and to maintain the assets in good working order as required under relevant State Agreements and associated tenure. The arrangements are managed through two wholly-owned subsidiaries: Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. We have also considered whether the CUC arrangements give rise to a lease between the Asset Owner and the Asset User. We have concluded that they do not, as there is no specified asset; rather the Asset User has a first priority right to the capacity in the CUC asset. This treatment was grandfathered on adoption of IFRS 16 on 1 January 2019, following an assessment under the preceding standards IAS 17 \u201cLeases\u201d and IFRIC 4 \u201cDetermining whether an arrangement contains a lease\u201d, with no change to the conclusion under IFRS 16 for subsequent expenditure subject to the existing CUC arrangements. Management considers that these arrangements are unique and has used judgement to apply the principles of IFRS to the accounting for the arrangements as described above. The obligation of the Asset Owner to make capacity available is fulfilled over time and not at a point in time. The CUC arrangement is therefore an executory contract as defined under IAS 37, whereby neither party has performed any of its obligations, or both parties have partially performed their obligations to an equal extent, and so the CUC payments are expensed as incurred. An alternative interpretation of the fact pattern could have resulted in a gross presentation in the Group\u2019s balance sheet with an asset and a corresponding liability to reflect the present value of the CUC payments. The Asset User is a wholly-owned subsidiary of Rio Tinto, whereas the Asset Owner is a joint operation. This impact would be some US$824 million (calculated on the basis of grossing up the tax written down value of the CUC assets). Other methods of calculating the gross-up might give rise to different numbers. |
Company | Country of incorporation/operation | Principal activities | Group interest (%) |
Matalco Canada Inc. | Canada | Aluminium recycling | 50 |
Minera Escondida Ltda (a) | Chile | Copper mining and refining | 30 |
Sohar Aluminium Co. L.L.C. (b) | Oman | Aluminium smelting, power generation | 20 |
Matalco USA, LLC | US | Aluminium recycling | 50 |
Other relevant judgements | Accounting for Minera Escondida Ltda (Escondida) |
Judgement has been applied on the determination that Escondida is a joint venture. We have based this on the nature of significant commercial decisions, including those in relation to capital expenditure, which require approval of both Rio Tinto and its partner BHP (holders of a 57.5% interest). In contrast, our partner has assessed Rio Tinto\u2019s rights as protective and concluded that it controls Escondida through its rights to direct relevant activities. Adoption of the equivalent judgement by the Group would result in reclassification of Escondida from a joint venture to an associate, with no other financial reporting consequence since accounting under the equity method would remain in place. |
Minera Escondida Ltda 2025 US$m | Minera Escondida Ltda 2024 US$m | |
Revenue | 15,273 | 11,413 |
Depreciation and amortisation | (1,497) | (1,417) |
Other operating costs | (4,010) | (4,123) |
Operating profit | 9,766 | 5,873 |
Finance expense | (193) | (233) |
Income tax | (4,463) | (2,707) |
Profit after tax | 5,110 | 2,933 |
Other comprehensive income | \u2013 | 14 |
Total comprehensive income | 5,110 | 2,947 |
Non-current assets | 14,827 | 12,991 |
Current assets | 4,540 | 3,230 |
Current liabilities | (2,727) | (2,351) |
Non-current liabilities | (6,010) | (5,585) |
Net assets | 10,630 | 8,285 |
Assets and liabilities above include: | ||
\u2013 cash and cash equivalents | 1,060 | 677 |
\u2013 current financial liabilities | (553) | (170) |
\u2013 non-current financial liabilities | (3,110) | (3,333) |
Dividends received from joint venture (Rio Tinto share) | 1,014 | 1,035 |
Company and country of incorporation/operation | Principal activities | Group interest (%) |
Australia | ||
Tomago Aluminium Joint Venture | Aluminium smelting | 51.55 |
Gladstone Power Station Joint Venture | Power generation | 42.13 |
Hope Downs Joint Venture | Iron ore mining | 50 |
Western Range Joint Venture (a) | Iron ore mining | 54 |
Queensland Alumina Limited (b)(c) | Alumina production | 80 |
Pilbara Iron Arrangements | Infrastructure, corporate and mining services | See other relevant judgements call out box below |
Canada | ||
Aluminerie Alouette Inc. | Aluminium production | 40 |
Pechiney Reynolds Quebec, Inc. (c)(d) | Aluminium smelting | 50.2 |
Other relevant judgements | Accounting for the Pilbara Iron Arrangements |
A number of arrangements are in place amongst the Australian Iron Ore operations, managed by Rio Tinto, which allow their respective assets to be operated as a single integrated network across the Pilbara region. In assessing the Pilbara Iron Arrangements, it has been concluded that they collectively constitute a joint operation on the basis that decisions about relevant activities require unanimous consent. The resulting efficiencies are shared between Rio Tinto and Robe River Iron Associates (Robe River), and the parties fund all of the cash flow requirements of Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. Each of the partners in the joint operation is able to request the other to construct assets on their tenure to increase the capacity of the rail and port infrastructure network. The requesting partner\u2019s (Asset User\u2019s) share of the capacity of the network will increase by the capacity of the newly constructed asset, but generally that capacity may be provided from any of the network assets. The Asset User will pay an annual charge - Committed Use Charge (CUC) - over a contractually specified period irrespective of network usage. The constructing partner (Asset Owner) has an ongoing obligation to make available capacity from those assets and to maintain the assets in good working order as required under relevant State Agreements and associated tenure. The arrangements are managed through two wholly-owned subsidiaries: Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. We have also considered whether the CUC arrangements give rise to a lease between the Asset Owner and the Asset User. We have concluded that they do not, as there is no specified asset; rather the Asset User has a first priority right to the capacity in the CUC asset. This treatment was grandfathered on adoption of IFRS 16 on 1 January 2019, following an assessment under the preceding standards IAS 17 \u201cLeases\u201d and IFRIC 4 \u201cDetermining whether an arrangement contains a lease\u201d, with no change to the conclusion under IFRS 16 for subsequent expenditure subject to the existing CUC arrangements. Management considers that these arrangements are unique and has used judgement to apply the principles of IFRS to the accounting for the arrangements as described above. The obligation of the Asset Owner to make capacity available is fulfilled over time and not at a point in time. The CUC arrangement is therefore an executory contract as defined under IAS 37, whereby neither party has performed any of its obligations, or both parties have partially performed their obligations to an equal extent, and so the CUC payments are expensed as incurred. An alternative interpretation of the fact pattern could have resulted in a gross presentation in the Group\u2019s balance sheet with an asset and a corresponding liability to reflect the present value of the CUC payments. The Asset User is a wholly-owned subsidiary of Rio Tinto, whereas the Asset Owner is a joint operation. This impact would be some US$824 million (calculated on the basis of grossing up the tax written down value of the CUC assets). Other methods of calculating the gross-up might give rise to different numbers. |
Company | Country of incorporation/operation | Principal activities | Group interest (%) |
Matalco Canada Inc. | Canada | Aluminium recycling | 50 |
Minera Escondida Ltda (a) | Chile | Copper mining and refining | 30 |
Sohar Aluminium Co. L.L.C. (b) | Oman | Aluminium smelting, power generation | 20 |
Matalco USA, LLC | US | Aluminium recycling | 50 |
Other relevant judgements | Accounting for Minera Escondida Ltda (Escondida) |
Judgement has been applied on the determination that Escondida is a joint venture. We have based this on the nature of significant commercial decisions, including those in relation to capital expenditure, which require approval of both Rio Tinto and its partner BHP (holders of a 57.5% interest). In contrast, our partner has assessed Rio Tinto\u2019s rights as protective and concluded that it controls Escondida through its rights to direct relevant activities. Adoption of the equivalent judgement by the Group would result in reclassification of Escondida from a joint venture to an associate, with no other financial reporting consequence since accounting under the equity method would remain in place. |
Minera Escondida Ltda 2025 US$m | Minera Escondida Ltda 2024 US$m | |
Revenue | 15,273 | 11,413 |
Depreciation and amortisation | (1,497) | (1,417) |
Other operating costs | (4,010) | (4,123) |
Operating profit | 9,766 | 5,873 |
Finance expense | (193) | (233) |
Income tax | (4,463) | (2,707) |
Profit after tax | 5,110 | 2,933 |
Other comprehensive income | \u2013 | 14 |
Total comprehensive income | 5,110 | 2,947 |
Non-current assets | 14,827 | 12,991 |
Current assets | 4,540 | 3,230 |
Current liabilities | (2,727) | (2,351) |
Non-current liabilities | (6,010) | (5,585) |
Net assets | 10,630 | 8,285 |
Assets and liabilities above include: | ||
\u2013 cash and cash equivalents | 1,060 | 677 |
\u2013 current financial liabilities | (553) | (170) |
\u2013 non-current financial liabilities | (3,110) | (3,333) |
Dividends received from joint venture (Rio Tinto share) | 1,014 | 1,035 |
Minera Escondida Ltda(a) 30% 2025 US$m | Individually immaterial EAUs 2025 US$m | Total 2025 US$m | Minera Escondida Ltda(a) 30% 2024 US$m | Individually immaterial EAUs 2024 US$m | Total 2024 US$m | |
Company | Country of incorporation/operation | Principal activities | |
Rail and port infrastructure including trans-Guinean heavy haul rail system | |||
Minera Escondida Ltda(a) 30% 2025 US$m | Individually immaterial EAUs 2025 US$m | Total 2025 US$m | Minera Escondida Ltda(a) 30% 2024 US$m | Individually immaterial EAUs 2024 US$m | Total 2024 US$m | |
Company | Country of incorporation/operation | Principal activities | Economic interest (%) |
Robe River Mining Co. Pty. Ltd. (a) | Australia | Iron ore mining | 60 |
Iron Ore Company of Canada (b) | US/Canada | Iron ore mining; iron ore pellets production | 58.72 |
SimFer Jersey Limited (c) | Jersey/Guinea | Iron ore project | 53 |
Oyu Tolgoi LLC | Mongolia | Copper and gold mining | 66 |
Income statement summary for the year ended 31 December | Iron Ore Company of Canada 2025 US$m | Iron Ore Company of Canada 2024 US$m | SimFer Jersey 2025 US$m | SimFer Jersey 2024 US$m | Oyu Tolgoi LLC (a) 2025 US$m | Oyu Tolgoi LLC (a) 2024 US$m | Robe River Mining Co. Pty. Ltd. 2025 US$m | Robe River Mining Co. Pty. Ltd. 2024 US$m |
Revenue | 1,903 | 2,255 | \u2013 | \u2013 | 4,992 | 2,184 | 1,594 | 1,746 |
Profit/(loss) after tax | 99 | 321 | (49) | (25) | 526 | (1,077) | 659 | 782 |
\u2013 attributable to non-controlling interests | 41 | 133 | (70) | (18) | 140 | (436) | 264 | 313 |
\u2013 attributable to Rio Tinto | 58 | 188 | 21 | (7) | 386 | (641) | 395 | 469 |
Other comprehensive income/(loss) | 125 | (205) | \u2013 | \u2013 | \u2013 | \u2013 | 213 | (279) |
Total comprehensive income/(loss) | 224 | 116 | (49) | (25) | 526 | (1,077) | 872 | 503 |
Balance sheet summary as at 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Non-current assets | 3,236 | 2,987 | 6,163 | 2,908 | 16,860 | 16,535 | 2,969 | 2,695 |
Current assets | 681 | 711 | 577 | 545 | 1,713 | 581 | 767 | 743 |
Current liabilities | (449) | (541) | (852) | (402) | (2,644) | (672) | (170) | (124) |
Non-current liabilities | (1,029) | (937) | (121) | (45) | (17,896) | (18,860) | (440) | (422) |
Net assets/(liabilities) | 2,439 | 2,220 | 5,767 | 3,006 | (1,967) | (2,416) | 3,126 | 2,892 |
\u2013 attributable to non-controlling interests | 1,027 | 934 | 2,607 | 1,335 | (854) | (994) | 1,248 | 1,153 |
\u2013 attributable to Rio Tinto | 1,412 | 1,286 | 3,160 | 1,671 | (1,113) | (1,422) | 1,878 | 1,739 |
Cash flow statement summary for the year ended 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Cash flows from operations | 427 | 735 | (143) | (850) | 3,215 | 1,039 | 1,194 | 1,274 |
Dividends paid to non-controlling interests | \u2013 | (165) | \u2013 | \u2013 | \u2013 | \u2013 | (258) | (282) |
Company | Country of incorporation/operation | Principal activities | Economic interest (%) |
Robe River Mining Co. Pty. Ltd. (a) | Australia | Iron ore mining | 60 |
Iron Ore Company of Canada (b) | US/Canada | Iron ore mining; iron ore pellets production | 58.72 |
SimFer Jersey Limited (c) | Jersey/Guinea | Iron ore project | 53 |
Oyu Tolgoi LLC | Mongolia | Copper and gold mining | 66 |
Income statement summary for the year ended 31 December | Iron Ore Company of Canada 2025 US$m | Iron Ore Company of Canada 2024 US$m | SimFer Jersey 2025 US$m | SimFer Jersey 2024 US$m | Oyu Tolgoi LLC (a) 2025 US$m | Oyu Tolgoi LLC (a) 2024 US$m | Robe River Mining Co. Pty. Ltd. 2025 US$m | Robe River Mining Co. Pty. Ltd. 2024 US$m |
Revenue | 1,903 | 2,255 | \u2013 | \u2013 | 4,992 | 2,184 | 1,594 | 1,746 |
Profit/(loss) after tax | 99 | 321 | (49) | (25) | 526 | (1,077) | 659 | 782 |
\u2013 attributable to non-controlling interests | 41 | 133 | (70) | (18) | 140 | (436) | 264 | 313 |
\u2013 attributable to Rio Tinto | 58 | 188 | 21 | (7) | 386 | (641) | 395 | 469 |
Other comprehensive income/(loss) | 125 | (205) | \u2013 | \u2013 | \u2013 | \u2013 | 213 | (279) |
Total comprehensive income/(loss) | 224 | 116 | (49) | (25) | 526 | (1,077) | 872 | 503 |
Balance sheet summary as at 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Non-current assets | 3,236 | 2,987 | 6,163 | 2,908 | 16,860 | 16,535 | 2,969 | 2,695 |
Current assets | 681 | 711 | 577 | 545 | 1,713 | 581 | 767 | 743 |
Current liabilities | (449) | (541) | (852) | (402) | (2,644) | (672) | (170) | (124) |
Non-current liabilities | (1,029) | (937) | (121) | (45) | (17,896) | (18,860) | (440) | (422) |
Net assets/(liabilities) | 2,439 | 2,220 | 5,767 | 3,006 | (1,967) | (2,416) | 3,126 | 2,892 |
\u2013 attributable to non-controlling interests | 1,027 | 934 | 2,607 | 1,335 | (854) | (994) | 1,248 | 1,153 |
\u2013 attributable to Rio Tinto | 1,412 | 1,286 | 3,160 | 1,671 | (1,113) | (1,422) | 1,878 | 1,739 |
Cash flow statement summary for the year ended 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Cash flows from operations | 427 | 735 | (143) | (850) | 3,215 | 1,039 | 1,194 | 1,274 |
Dividends paid to non-controlling interests | \u2013 | (165) | \u2013 | \u2013 | \u2013 | \u2013 | (258) | (282) |
Company | Country of incorporation/operation | Principal activities | Group interest (%) |
Matalco Canada Inc. | Canada | Aluminium recycling | 50 |
Minera Escondida Ltda (a) | Chile | Copper mining and refining | 30 |
Sohar Aluminium Co. L.L.C. (b) | Oman | Aluminium smelting, power generation | 20 |
Matalco USA, LLC | US | Aluminium recycling | 50 |
Other relevant judgements | Accounting for Minera Escondida Ltda (Escondida) |
Judgement has been applied on the determination that Escondida is a joint venture. We have based this on the nature of significant commercial decisions, including those in relation to capital expenditure, which require approval of both Rio Tinto and its partner BHP (holders of a 57.5% interest). In contrast, our partner has assessed Rio Tinto\u2019s rights as protective and concluded that it controls Escondida through its rights to direct relevant activities. Adoption of the equivalent judgement by the Group would result in reclassification of Escondida from a joint venture to an associate, with no other financial reporting consequence since accounting under the equity method would remain in place. |
Minera Escondida Ltda 2025 US$m | Minera Escondida Ltda 2024 US$m | |
Revenue | 15,273 | 11,413 |
Depreciation and amortisation | (1,497) | (1,417) |
Other operating costs | (4,010) | (4,123) |
Operating profit | 9,766 | 5,873 |
Finance expense | (193) | (233) |
Income tax | (4,463) | (2,707) |
Profit after tax | 5,110 | 2,933 |
Other comprehensive income | \u2013 | 14 |
Total comprehensive income | 5,110 | 2,947 |
Non-current assets | 14,827 | 12,991 |
Current assets | 4,540 | 3,230 |
Current liabilities | (2,727) | (2,351) |
Non-current liabilities | (6,010) | (5,585) |
Net assets | 10,630 | 8,285 |
Assets and liabilities above include: | ||
\u2013 cash and cash equivalents | 1,060 | 677 |
\u2013 current financial liabilities | (553) | (170) |
\u2013 non-current financial liabilities | (3,110) | (3,333) |
Dividends received from joint venture (Rio Tinto share) | 1,014 | 1,035 |
Company | Country of incorporation/operation | Principal activities | |
Rail and port infrastructure including trans-Guinean heavy haul rail system | |||
Minera Escondida Ltda(a) 30% 2025 US$m | Individually immaterial EAUs 2025 US$m | Total 2025 US$m | Minera Escondida Ltda(a) 30% 2024 US$m | Individually immaterial EAUs 2024 US$m | Total 2024 US$m | |
Purchases from equity accounted units | (1,029) | (874) | (1,163) | |
Sales to equity accounted units | 1,062 | 684 | 349 | |
Dividends from equity accounted units | 1,070 | 1,067 | 610 | |
Net funding of equity accounted units | (669) | (784) | (144) | |
Investments in equity accounted units (a) | 5,881 | 4,837 | 4,407 | |
Loans to equity accounted units(b) | 842 | 534 | \u2013 | |
Loans related to equity accounted units | \u2013 | \u2013 | 100 | |
Trade and other receivables: related to equity accounted units(c) | 318 | 221 | 189 | |
Trade and other payables: related to equity accounted units | (266) | (209) | (206) |
Purchases from equity accounted units | (1,029) | (874) | (1,163) | |
Sales to equity accounted units | 1,062 | 684 | 349 | |
Dividends from equity accounted units | 1,070 | 1,067 | 610 | |
Net funding of equity accounted units | (669) | (784) | (144) | |
Investments in equity accounted units (a) | 5,881 | 4,837 | 4,407 | |
Loans to equity accounted units(b) | 842 | 534 | \u2013 | |
Loans related to equity accounted units | \u2013 | \u2013 | 100 | |
Trade and other receivables: related to equity accounted units(c) | 318 | 221 | 189 | |
Trade and other payables: related to equity accounted units | (266) | (209) | (206) |
2025 Number (million) | 2024 Number (million) | 2023 Number (million) | 2025 US$m | 2024 US$m | 2023 US$m | |
Issued and fully paid up share capital of 10p each | ||||||
At 1 January | 1,255.945 | 1,255.892 | 1,255.845 | 207 | 207 | 207 |
Ordinary shares issued under the Global Employee Share plan\u00a0(GESP) | 0.065 | 0.053 | 0.047 | \u2013 | \u2013 | \u2013 |
Shares purchased and cancelled (a) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
At 31 December | 1,256.010 | 1,255.945 | 1,255.892 | 207 | 207 | 207 |
Shares held by public | ||||||
At 1 January | 1,252.922 | 1,251.321 | 1,249.655 | |||
Shares reissued from treasury under the GESP (b) | 1.305 | 1.548 | 1.619 | |||
Ordinary shares issued under the GESP (b) | 0.065 | 0.053 | 0.047 | |||
Shares purchased and cancelled (a) | \u2013 | \u2013 | \u2013 | |||
At 31 December | 1,254.292 | 1,252.922 | 1,251.321 | |||
Shares held in treasury | 1.718 | 3.023 | 4.571 | |||
Shares held by public | 1,254.292 | 1,252.922 | 1,251.321 | |||
Total share capital | 1,256.010 | 1,255.945 | 1,255.892 | |||
Other share classes | ||||||
Special Voting Share of 10p each (c) | 1 only | 1 only | 1 only | |||
DLC Dividend Share of 10p each (c) | 1 only | 1 only | 1 only |
2025 Number (million) | 2024 Number (million) | 2023 Number (million) | 2025 US$m | 2024 US$m | 2023 US$m | |
Issued and fully paid up share capital | ||||||
At 1 January | 371.21 | 371.21 | 371.21 | 3,060 | 3,377 | 3,330 |
Adjustment on currency translation | 238 | (317) | 47 | |||
At 31 December | 371.21 | 371.21 | 371.21 | 3,298 | 3,060 | 3,377 |
\u2013 Special Voting Share (a) | 1 only | 1 only | 1 only | |||
\u2013 DLC Dividend Share (a) | 1 only | 1 only | 1 only | |||
Total share capital | 371.21 | 371.21 | 371.21 |
2025 US$m | 2024 US$m | 2023 US$m | |
Capital redemption reserve (a) | |||
At 1 January and 31 December | 51 | 51 | 51 |
Cash flow hedge reserve | |||
At 1 January | (39) | (59) | (51) |
Cash flow hedge gains | 57 | 13 | 30 |
Cash flow hedge (gains)/losses transferred to the income statement | (164) | 17 | (39) |
Tax on the above | 29 | (10) | 1 |
At 31 December | (117) | (39) | (59) |
Fair value through other comprehensive income reserve | |||
At 1 January | (22) | (22) | 2 |
Losses on equity investments | (34) | \u2013 | (24) |
At 31 December | (56) | (22) | (22) |
Cost of hedging reserve | |||
At 1 January | (8) | (12) | (17) |
Cost of hedging deferred to reserves during the year | 2 | 3 | 4 |
Transfer of cost of hedging to the income statement | 1 | 1 | 1 |
At 31 December | (5) | (8) | (12) |
Other reserves (b) | |||
At 1 January | 11,570 | 11,542 | 11,554 |
Own shares purchased from Rio Tinto Limited shareholders to satisfy share awards | (57) | (44) | (78) |
Employee share options: value of services | 98 | 76 | 62 |
Deferred tax on share options | 16 | (4) | 4 |
At 31 December | 11,627 | 11,570 | 11,542 |
Foreign currency translation reserve(c) | |||
At 1 January | (6,438) | (3,172) | (3,784) |
Parent and subsidiaries\u2019 currency translation and exchange adjustments | 2,692 | (3,194) | 598 |
Equity accounted units currency translation adjustments | 34 | (45) | 14 |
Currency translation reclassified on disposal | \u2013 | (27) | \u2013 |
At 31 December | (3,712) | (6,438) | (3,172) |
Total other reserves per balance sheet | 7,788 | 5,114 | 8,328 |
Retained earnings (d) | |||
At 1 January | 42,539 | 38,350 | 35,020 |
Parent and subsidiaries\u2019 profit for the year | 8,397 | 10,697 | 9,385 |
Equity accounted units\u2019 profit after tax for the year | 1,569 | 855 | 673 |
Remeasurement gains/(losses) on pension and post-retirement healthcare plans (e) | 161 | 88 | (459) |
Tax relating to components of other comprehensive income | (38) | (23) | 151 |
Total comprehensive income for the year | 10,089 | 11,617 | 9,750 |
Dividends paid | (6,145) | (7,025) | (6,466) |
Change in equity interest held by Rio Tinto(f) | (7) | (468) | (13) |
Own shares purchased/treasury shares reissued for share awards and other movements | (30) | (13) | (17) |
Employee share options and other IFRS 2 charges taken to the income statement | 135 | 78 | 76 |
At 31 December | 46,581 | 42,539 | 38,350 |
2025 Number (million) | 2024 Number (million) | 2023 Number (million) | 2025 US$m | 2024 US$m | 2023 US$m | |
Issued and fully paid up share capital of 10p each | ||||||
At 1 January | 1,255.945 | 1,255.892 | 1,255.845 | 207 | 207 | 207 |
Ordinary shares issued under the Global Employee Share plan\u00a0(GESP) | 0.065 | 0.053 | 0.047 | \u2013 | \u2013 | \u2013 |
Shares purchased and cancelled (a) | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 | \u2013 |
At 31 December | 1,256.010 | 1,255.945 | 1,255.892 | 207 | 207 | 207 |
Shares held by public | ||||||
At 1 January | 1,252.922 | 1,251.321 | 1,249.655 | |||
Shares reissued from treasury under the GESP (b) | 1.305 | 1.548 | 1.619 | |||
Ordinary shares issued under the GESP (b) | 0.065 | 0.053 | 0.047 | |||
Shares purchased and cancelled (a) | \u2013 | \u2013 | \u2013 | |||
At 31 December | 1,254.292 | 1,252.922 | 1,251.321 | |||
Shares held in treasury | 1.718 | 3.023 | 4.571 | |||
Shares held by public | 1,254.292 | 1,252.922 | 1,251.321 | |||
Total share capital | 1,256.010 | 1,255.945 | 1,255.892 | |||
Other share classes | ||||||
Special Voting Share of 10p each (c) | 1 only | 1 only | 1 only | |||
DLC Dividend Share of 10p each (c) | 1 only | 1 only | 1 only |
2025 Number (million) | 2024 Number (million) | 2023 Number (million) | 2025 US$m | 2024 US$m | 2023 US$m | |
Issued and fully paid up share capital | ||||||
At 1 January | 371.21 | 371.21 | 371.21 | 3,060 | 3,377 | 3,330 |
Adjustment on currency translation | 238 | (317) | 47 | |||
At 31 December | 371.21 | 371.21 | 371.21 | 3,298 | 3,060 | 3,377 |
\u2013 Special Voting Share (a) | 1 only | 1 only | 1 only | |||
\u2013 DLC Dividend Share (a) | 1 only | 1 only | 1 only | |||
Total share capital | 371.21 | 371.21 | 371.21 |
2025 US$m | 2024 US$m | 2023 US$m | |
Capital redemption reserve (a) | |||
At 1 January and 31 December | 51 | 51 | 51 |
Cash flow hedge reserve | |||
At 1 January | (39) | (59) | (51) |
Cash flow hedge gains | 57 | 13 | 30 |
Cash flow hedge (gains)/losses transferred to the income statement | (164) | 17 | (39) |
Tax on the above | 29 | (10) | 1 |
At 31 December | (117) | (39) | (59) |
Fair value through other comprehensive income reserve | |||
At 1 January | (22) | (22) | 2 |
Losses on equity investments | (34) | \u2013 | (24) |
At 31 December | (56) | (22) | (22) |
Cost of hedging reserve | |||
At 1 January | (8) | (12) | (17) |
Cost of hedging deferred to reserves during the year | 2 | 3 | 4 |
Transfer of cost of hedging to the income statement | 1 | 1 | 1 |
At 31 December | (5) | (8) | (12) |
Other reserves (b) | |||
At 1 January | 11,570 | 11,542 | 11,554 |
Own shares purchased from Rio Tinto Limited shareholders to satisfy share awards | (57) | (44) | (78) |
Employee share options: value of services | 98 | 76 | 62 |
Deferred tax on share options | 16 | (4) | 4 |
At 31 December | 11,627 | 11,570 | 11,542 |
Foreign currency translation reserve(c) | |||
At 1 January | (6,438) | (3,172) | (3,784) |
Parent and subsidiaries\u2019 currency translation and exchange adjustments | 2,692 | (3,194) | 598 |
Equity accounted units currency translation adjustments | 34 | (45) | 14 |
Currency translation reclassified on disposal | \u2013 | (27) | \u2013 |
At 31 December | (3,712) | (6,438) | (3,172) |
Total other reserves per balance sheet | 7,788 | 5,114 | 8,328 |
Retained earnings (d) | |||
At 1 January | 42,539 | 38,350 | 35,020 |
Parent and subsidiaries\u2019 profit for the year | 8,397 | 10,697 | 9,385 |
Equity accounted units\u2019 profit after tax for the year | 1,569 | 855 | 673 |
Remeasurement gains/(losses) on pension and post-retirement healthcare plans (e) | 161 | 88 | (459) |
Tax relating to components of other comprehensive income | (38) | (23) | 151 |
Total comprehensive income for the year | 10,089 | 11,617 | 9,750 |
Dividends paid | (6,145) | (7,025) | (6,466) |
Change in equity interest held by Rio Tinto(f) | (7) | (468) | (13) |
Own shares purchased/treasury shares reissued for share awards and other movements | (30) | (13) | (17) |
Employee share options and other IFRS 2 charges taken to the income statement | 135 | 78 | 76 |
At 31 December | 46,581 | 42,539 | 38,350 |
Other relevant judgements | Contingencies |
Disclosure is made for material contingent liabilities unless the possibility of any loss arising is considered remote based on our judgement and legal advice. These are quantified unless, in our judgement, the amount cannot be reliably estimated. The unit of account for claims is the matter taken as a whole and therefore when a provision has been recorded for the best estimate of the cost to settle the obligation there is no further contingent liability component. This means that when a provision is recognised for the best estimate of the expenditure required to settle the present obligation from a single past event, a further contingent liability is not reported for the maximum potential exposure in excess of that already provided. We have not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of our companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur. The Group may in the future incur judgements or enter into settlements of claims that could lead to material cash outflows. |
2025 US$m | 2024 US$m | |
Contingent liabilities, indemnities and other performance guarantees (a) | 322 | 192 |
Litigation matter | Latest update |
2011 Contractual payments in\u00a0Guinea | In 2023, we resolved a previously self-disclosed investigation by the SEC into certain contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011, relating to the Simandou project in the Republic of Guinea. In August 2023, the UK Serious Fraud Office closed its case and announced that the Australian Federal Police maintains a live investigation into the matter. Rio Tinto continues to cooperate fully with relevant authorities.\u00a0 At 31\u00a0December 2025, the outcome of this investigation remains uncertain, but it could ultimately expose the Group to material financial cost. No provision has been recognised for the investigation. We believe this case is unwarranted and will defend the allegation vigorously. |
2025 US$m | 2024 US$m | |
Capital commitments excluding the Group's share of EAU capital commitments | ||
Within 1 year | 5,952 | 4,559 |
Between 1 and 3 years | 1,720 | 602 |
Between 3 and 5 years | 124 | 313 |
After 5 years | 377 | 82 |
Total | 8,173 | 5,556 |
Group's share of EAU capital commitments | ||
Within 1 year | 684 | 1,280 |
Between 1 and 3 years | 53 | 271 |
Total | 737 | 1,551 |
Impact of climate change on our business | Decarbonisation capital commitments |
Capital commitments do not include the estimated incremental capital expenditure relating to decarbonisation projects unless otherwise contractually committed. In 2025, we adjusted our capital guidance to spend of US$1 billion to US$2 billion through to 2030 . Included in capital commitments at 31\u00a0December 2025 are contractually committed decarbonisation capital commitments of US$142 million ( 2024:\u00a0US$114 million ), inclusive of the Amrun and Jinbi renewable PPAs, which are treated as leases that have not yet commenced (disclosed in\u00a0note\u00a0 22). |
2025 US$m | 2024 US$m | |
Within 1 year | 3,573 | 3,160 |
Between 1 and 2 years | 1,599 | 1,461 |
Between 2 and 3 years | 1,479 | 1,364 |
Between 3 and 4 years | 803 | 851 |
Between 4 and 5 years | 621 | 614 |
After 5 years | 4,800 | 4,905 |
Total | 12,875 | 12,355 |
Other relevant judgements | Contingencies |
Disclosure is made for material contingent liabilities unless the possibility of any loss arising is considered remote based on our judgement and legal advice. These are quantified unless, in our judgement, the amount cannot be reliably estimated. The unit of account for claims is the matter taken as a whole and therefore when a provision has been recorded for the best estimate of the cost to settle the obligation there is no further contingent liability component. This means that when a provision is recognised for the best estimate of the expenditure required to settle the present obligation from a single past event, a further contingent liability is not reported for the maximum potential exposure in excess of that already provided. We have not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of our companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur. The Group may in the future incur judgements or enter into settlements of claims that could lead to material cash outflows. |
2025 US$m | 2024 US$m | |
Contingent liabilities, indemnities and other performance guarantees (a) | 322 | 192 |
Litigation matter | Latest update |
2011 Contractual payments in\u00a0Guinea | In 2023, we resolved a previously self-disclosed investigation by the SEC into certain contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011, relating to the Simandou project in the Republic of Guinea. In August 2023, the UK Serious Fraud Office closed its case and announced that the Australian Federal Police maintains a live investigation into the matter. Rio Tinto continues to cooperate fully with relevant authorities.\u00a0 At 31\u00a0December 2025, the outcome of this investigation remains uncertain, but it could ultimately expose the Group to material financial cost. No provision has been recognised for the investigation. We believe this case is unwarranted and will defend the allegation vigorously. |
2025 US$m | 2024 US$m | |
Capital commitments excluding the Group's share of EAU capital commitments | ||
Within 1 year | 5,952 | 4,559 |
Between 1 and 3 years | 1,720 | 602 |
Between 3 and 5 years | 124 | 313 |
After 5 years | 377 | 82 |
Total | 8,173 | 5,556 |
Group's share of EAU capital commitments | ||
Within 1 year | 684 | 1,280 |
Between 1 and 3 years | 53 | 271 |
Total | 737 | 1,551 |
Impact of climate change on our business | Decarbonisation capital commitments |
Capital commitments do not include the estimated incremental capital expenditure relating to decarbonisation projects unless otherwise contractually committed. In 2025, we adjusted our capital guidance to spend of US$1 billion to US$2 billion through to 2030 . Included in capital commitments at 31\u00a0December 2025 are contractually committed decarbonisation capital commitments of US$142 million ( 2024:\u00a0US$114 million ), inclusive of the Amrun and Jinbi renewable PPAs, which are treated as leases that have not yet commenced (disclosed in\u00a0note\u00a0 22). |
2025 US$m | 2024 US$m | |
Within 1 year | 3,573 | 3,160 |
Between 1 and 2 years | 1,599 | 1,461 |
Between 2 and 3 years | 1,479 | 1,364 |
Between 3 and 4 years | 803 | 851 |
Between 4 and 5 years | 621 | 614 |
After 5 years | 4,800 | 4,905 |
Total | 12,875 | 12,355 |
Other relevant judgements | Contingencies |
Disclosure is made for material contingent liabilities unless the possibility of any loss arising is considered remote based on our judgement and legal advice. These are quantified unless, in our judgement, the amount cannot be reliably estimated. The unit of account for claims is the matter taken as a whole and therefore when a provision has been recorded for the best estimate of the cost to settle the obligation there is no further contingent liability component. This means that when a provision is recognised for the best estimate of the expenditure required to settle the present obligation from a single past event, a further contingent liability is not reported for the maximum potential exposure in excess of that already provided. We have not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of our companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgements may at times occur. The Group may in the future incur judgements or enter into settlements of claims that could lead to material cash outflows. |
2025 US$m | 2024 US$m | |
Contingent liabilities, indemnities and other performance guarantees (a) | 322 | 192 |
Litigation matter | Latest update |
2011 Contractual payments in\u00a0Guinea | In 2023, we resolved a previously self-disclosed investigation by the SEC into certain contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011, relating to the Simandou project in the Republic of Guinea. In August 2023, the UK Serious Fraud Office closed its case and announced that the Australian Federal Police maintains a live investigation into the matter. Rio Tinto continues to cooperate fully with relevant authorities.\u00a0 At 31\u00a0December 2025, the outcome of this investigation remains uncertain, but it could ultimately expose the Group to material financial cost. No provision has been recognised for the investigation. We believe this case is unwarranted and will defend the allegation vigorously. |
2025 US$m | 2024 US$m | |
Capital commitments excluding the Group's share of EAU capital commitments | ||
Within 1 year | 5,952 | 4,559 |
Between 1 and 3 years | 1,720 | 602 |
Between 3 and 5 years | 124 | 313 |
After 5 years | 377 | 82 |
Total | 8,173 | 5,556 |
Group's share of EAU capital commitments | ||
Within 1 year | 684 | 1,280 |
Between 1 and 3 years | 53 | 271 |
Total | 737 | 1,551 |
Impact of climate change on our business | Decarbonisation capital commitments |
Capital commitments do not include the estimated incremental capital expenditure relating to decarbonisation projects unless otherwise contractually committed. In 2025, we adjusted our capital guidance to spend of US$1 billion to US$2 billion through to 2030 . Included in capital commitments at 31\u00a0December 2025 are contractually committed decarbonisation capital commitments of US$142 million ( 2024:\u00a0US$114 million ), inclusive of the Amrun and Jinbi renewable PPAs, which are treated as leases that have not yet commenced (disclosed in\u00a0note\u00a0 22). |
2025 US$m | 2024 US$m | |
Within 1 year | 3,573 | 3,160 |
Between 1 and 2 years | 1,599 | 1,461 |
Between 2 and 3 years | 1,479 | 1,364 |
Between 3 and 4 years | 803 | 851 |
Between 4 and 5 years | 621 | 614 |
After 5 years | 4,800 | 4,905 |
Total | 12,875 | 12,355 |
2025 US$m | 2024 US$m | 2023 US$m | |
Audit of the Group | 20.6 | 20.7 | 19.1 |
Audit of subsidiaries | 8.5 | 7.4 | 7.5 |
Total audit | 29.1 | 28.1 | 26.6 |
Audit-related assurance service | 2.4 | 1.7 | 1.1 |
Other assurance services (b) | 2.9 | 3.5 | 3.0 |
Total assurance services | 5.3 | 5.2 | 4.1 |
Tax compliance | \u2013 | \u2013 | \u2013 |
Other non-audit services not covered above | 0.2 | 0.2 | 0.1 |
Total non-audit services | 5.5 | 5.4 | 4.2 |
Total Group auditors\u2019 remuneration | 34.6 | 33.5 | 30.8 |
Group auditors\u2019 remuneration as required to be categorised under SEC regulations | |||
Audit fees | 31.5 | 30.0 | 27.7 |
Audit-related fees | 2.9 | 3.3 | 3.0 |
Tax fees | \u2013 | \u2013 | \u2013 |
All other fees | 0.2 | 0.2 | 0.1 |
Total Group auditors\u2019 remuneration | 34.6 | 33.5 | 30.8 |
Audit fees payable to other accounting firms | |||
Audit of the financial statements of the Group\u2019s subsidiaries | 0.3 | 0.3 | 0.3 |
Fees in respect of pension scheme audits | 0.1 | 0.1 | 0.1 |
Total audit fees payable to other accounting firms | 0.4 | 0.4 | 0.4 |
As at 31 December | 2025 A$m | 2024 A$m |
Assets | ||
Current assets | 16,018 | 17,817 |
Non-current assets | 2,662 | 2,723 |
Total assets | 18,680 | 20,540 |
Liabilities | ||
Current liabilities | (1,614) | (2,095) |
Non-current liabilities | \u2013 | \u2013 |
Total liabilities | (1,614) | (2,095) |
Net assets | 17,066 | 18,445 |
Shareholders\u2019 equity | ||
Share capital | 3,504 | 3,504 |
Other reserves | 507 | 403 |
Retained earnings | 13,055 | 14,538 |
Total equity | 17,066 | 18,445 |
Profit of the parent company | 9,116 | 11,704 |
Total comprehensive income of the parent company | 9,116 | 11,704 |