10 Inventories


	2022		2021		Definitions
	US$M		US$M
Raw materials and consumables		1,713		1,904	Spares, consumables and other supplies yet to be utilised in the production process or in the rendering of services.
Work in progress		3,827		3,046	Commodities currently in the production process that require further processing by the Group to a saleable form.
Finished goods		710		834	Commodities ready-for-sale and not requiring further processing by the Group.

Total 1		6,250		5,784

Comprising:					Inve n tories classified as non-current are not expected to b e utilised
Current		4,935		4,426	or sold within 12 months after the reporting date or within the
Non-current		1,315		1,358	operating cyc le o f the business.

1	Inventory write-downs of US$163 million were recognised during the year (2021: US$58 million; 2020: US$37 million). Inventory write-downs of US$23 million made in previous periods wer e reversed during the year (2021: US$26 million; 2020: US$8 million).

Recognition and measurement

Regardless of the type of inventory and its stage in the production process, inventories are valued at the lower of cost and net realisable value. Cost is determined primarily on the basis of average costs and involves estimates of expected metal recoveries and work in progress volumes, calculated using available industry, engineering and scientific data. These estimates are periodically reassessed by the Group taking into account technical analysis and historical performance.

For processed inventories, cost is derived on an absorption costing basis. Cost comprises costs of purchasing raw materials and costs of production, including attributable mining and manufacturing overheads taking into consideration normal operating capacity.

Inventory quantities are assessed primarily through surveys and assays.