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Financial instruments and risk management (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure Of Financial Instruments [Line Items]

Summary of financial assets by categories

A (a) Financial assets and liabilities by categories

		IFRS 9
								Fair value		Fair value
								through other		through
					Amortised			comprehensive		profit and
		Total			cost			income		loss
At 31 December 2018	Note	US$m			US$m			US$m		US$m
Financial assets

Cash and cash equivalents	21		10,773			2,779			-		7,994
Trade and other financial receivables^{(a) (b)}	18		3,007			2,015			-		992
Equity shares and quoted funds	20		130			-			53		77
Other investments, including loans^(c)	20		2,782			6			-		2,776
Derivatives related to net debt: designated as hedges^(d)	20, 24		70			-			-		70
Derivatives and embedded derivatives not related to net debt: not designated as hedges^(d)	20		432			-			-		432
Embedded derivatives not related to net debt: designated as hedges^(d)	20		54			-			-		54
Loans to equity accounted units including quasi equity loans			167			167			-		-
Total financial assets			17,415			4,967			53		12,395

Financial liabilities
Trade and other financial payables^(e)	25		(5,552	)		(5,513	)				(39	)
Short-term borrowings and bank overdrafts	22		(312	)		(312	)				-
Medium-term and long-term borrowings	22		(12,440	)		(12,440	)				-
Derivatives related to net debt: designated as hedges^(d)	22, 24		(358	)		-					(358	)
Derivatives and embedded derivatives not related to net debt: not designated as hedges^(d)	22		(98	)		-					(98	)
Embedded derivatives not related to net debt: designated as hedges^(d)	22		(46	)		-					(46	)
Other financial liabilities	22		(666	)		(666	)				-
Total financial liabilities			(19,472	)		(18,931	)				(541	)

					IAS 39
												Held to maturity
							Available					assets/other
					Loans and		for sale		Held at			financial
		Total			receivables		securities		fair value			liabilities
At 31 December 2017	Note	US$m			US$m		US$m		US$m			US$m
Financial assets
Cash and cash equivalents	21		10,550			10,550		-		-			-
Trade and other financial receivables^{(a) (b)}	18		2,985			2,895		-		90			-
Equity shares and quoted funds	20		136			-		136		-			-
Other investments, including loans^(c)	20		1,152			15		-		1,125			12
Derivatives related to net debt: designated as hedges^(d)	20, 24		99			-		-		99			-
Derivatives and embedded derivatives not related to net debt: not designated as hedges^(d)	20		168			-		-		168			-
Loans to equity accounted units including quasi equity loans			198			198		-		-			-
Total financial assets			15,288			13,658		136		1,482			12

Financial liabilities
Trade and other financial payables ^(e)	25		(5,922	)						(15	)		(5,907	)
Short-term borrowings and bank overdrafts	22		(552	)						-			(552	)
Medium-term and long-term borrowings	22		(14,624	)						-			(14,624	)
Derivatives related to net debt: designated as hedges ^(d)	22, 24		(276	)						(276	)		-
Other derivatives and embedded derivatives: not designated as hedges ^(d)	22		(255	)						(255	)		-
Other financial liabilities	22		(345	)						-			(345	)
Total financial liabilities			(21,974	)						(546	)		(21,428	)

(a)	Trade and other financial receivables comprise of trade receivables, other financial receivables, and amounts due from equity accounted units within note 18.

(b)	Under IFRS 9, provisionally priced receivables are fair valued. In the prior year, under IAS 39, only the embedded pricing derivatives, which were separated from the host receivables, were fair valued.

(c)	Other investments, including loans, comprise US$2,522 million (2017: US$958 million) of highly liquid financial assets in managed investment funds classified as held for trading.

(d)	These financial assets and liabilities in aggregate agree to total derivative financial instruments disclosed in notes 20 and 22.

(e)	Trade and other financial payables comprise trade payables, other financial payables, accruals and amounts due to equity accounted units within note 25. The trade and other payables held at fair value are valued using level 2 inputs.

Summary of financial liabilities by categories

A (a) Financial assets and liabilities by categories

		IFRS 9
								Fair value		Fair value
								through other		through
					Amortised			comprehensive		profit and
		Total			cost			income		loss
At 31 December 2018	Note	US$m			US$m			US$m		US$m
Financial assets

Cash and cash equivalents	21		10,773			2,779			-		7,994
Trade and other financial receivables^{(a) (b)}	18		3,007			2,015			-		992
Equity shares and quoted funds	20		130			-			53		77
Other investments, including loans^(c)	20		2,782			6			-		2,776
Derivatives related to net debt: designated as hedges^(d)	20, 24		70			-			-		70
Derivatives and embedded derivatives not related to net debt: not designated as hedges^(d)	20		432			-			-		432
Embedded derivatives not related to net debt: designated as hedges^(d)	20		54			-			-		54
Loans to equity accounted units including quasi equity loans			167			167			-		-
Total financial assets			17,415			4,967			53		12,395

Financial liabilities
Trade and other financial payables^(e)	25		(5,552	)		(5,513	)				(39	)
Short-term borrowings and bank overdrafts	22		(312	)		(312	)				-
Medium-term and long-term borrowings	22		(12,440	)		(12,440	)				-
Derivatives related to net debt: designated as hedges^(d)	22, 24		(358	)		-					(358	)
Derivatives and embedded derivatives not related to net debt: not designated as hedges^(d)	22		(98	)		-					(98	)
Embedded derivatives not related to net debt: designated as hedges^(d)	22		(46	)		-					(46	)
Other financial liabilities	22		(666	)		(666	)				-
Total financial liabilities			(19,472	)		(18,931	)				(541	)

					IAS 39
												Held to maturity
							Available					assets/other
					Loans and		for sale		Held at			financial
		Total			receivables		securities		fair value			liabilities
At 31 December 2017	Note	US$m			US$m		US$m		US$m			US$m
Financial assets
Cash and cash equivalents	21		10,550			10,550		-		-			-
Trade and other financial receivables^{(a) (b)}	18		2,985			2,895		-		90			-
Equity shares and quoted funds	20		136			-		136		-			-
Other investments, including loans^(c)	20		1,152			15		-		1,125			12
Derivatives related to net debt: designated as hedges^(d)	20, 24		99			-		-		99			-
Derivatives and embedded derivatives not related to net debt: not designated as hedges^(d)	20		168			-		-		168			-
Loans to equity accounted units including quasi equity loans			198			198		-		-			-
Total financial assets			15,288			13,658		136		1,482			12

Financial liabilities
Trade and other financial payables ^(e)	25		(5,922	)						(15	)		(5,907	)
Short-term borrowings and bank overdrafts	22		(552	)						-			(552	)
Medium-term and long-term borrowings	22		(14,624	)						-			(14,624	)
Derivatives related to net debt: designated as hedges ^(d)	22, 24		(276	)						(276	)		-
Other derivatives and embedded derivatives: not designated as hedges ^(d)	22		(255	)						(255	)		-
Other financial liabilities	22		(345	)						-			(345	)
Total financial liabilities			(21,974	)						(546	)		(21,428	)

(a)	Trade and other financial receivables comprise of trade receivables, other financial receivables, and amounts due from equity accounted units within note 18.

(b)	Under IFRS 9, provisionally priced receivables are fair valued. In the prior year, under IAS 39, only the embedded pricing derivatives, which were separated from the host receivables, were fair valued.

(c)	Other investments, including loans, comprise US$2,522 million (2017: US$958 million) of highly liquid financial assets in managed investment funds classified as held for trading.

(d)	These financial assets and liabilities in aggregate agree to total derivative financial instruments disclosed in notes 20 and 22.

(e)	Trade and other financial payables comprise trade payables, other financial payables, accruals and amounts due to equity accounted units within note 25. The trade and other payables held at fair value are valued using level 2 inputs.

Summary of credit ratings

The table below summarises the credit ratings attributed to the Group by Standard & Poor’s and Moody’s investor services as at 31 December.

		2018		2017
Long-term rating^(a)	A/A3		A-/A3
Short-term rating^(a)	A-1/P-2		A-1/P-2
Outlook	Stable/Stable		Positive/Stable

Maturity analysis for non-derivative financial liabilities and derivative financial liabilities

The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments. It will therefore not necessarily agree with the amounts disclosed in the balance sheet.

Financial liability analysis

At 31 December 2018

	Within 1			Between			Between			Between			Between
	year or on			1 and 2			2 and 3			3 and 4			4 and 5			After
	demand			years			years			years			years			5 years			Total
(Outflows)/inflows	US$m			US$m			US$m			US$m			US$m			US$m			US$m
Non-derivative financial liabilities
Trade and other financial payables		(5,129	)		(423	)		-			-			-			-			(5,552	)
Borrowings before swaps		(312	)		(562	)		(166	)		(660	)		(741	)		(10,476	)		(12,917	)
Expected future interest payments^(a)		(651	)		(653	)		(636	)		(630	)		(586	)		(4,082	)		(7,238	)
Other financial liabilities		(666	)		-			-			-			-			-			(666	)
Derivative financial liabilities^(b)
Derivatives related to net debt - net settled		(36	)		(36	)		(36	)		(36	)		4			(8	)		(148	)
Derivatives related to net debt - gross settled^(a):
– gross inflows		48			508			39			39			39			1,278			1,951
– gross outflows		(79	)		(595	)		(58	)		(58	)		(58	)		(1,581	)		(2,429	)
Derivatives not related to net debt - net settled		(27	)		(13	)		(5	)		(5	)		(5	)		(28	)		(83	)
Derivatives not related to net debt - gross settled:
– gross inflows		1,664			-			-			-			-			-			1,664
– gross outflows		(1,733	)		-			-			-			-			-			(1,733	)
Total		(6,921	)		(1,774	)		(862	)		(1,350	)		(1,347	)		(14,897	)		(27,151	)

At 31 December 2017

	Within 1			Between			Between			Between			Between
	year or on			1 and 2			2 and 3			3 and 4			4 and 5			After
	demand			years			years			years			years			5 years			Total
(Outflows)/inflows	US$m			US$m			US$m			US$m			US$m			US$m			US$m
Non-derivative financial liabilities
Trade and other financial payables		(5,488	)		(434	)		-			-			-			-			(5,922	)
Borrowings before swaps		(552	)		(148	)		(1,011	)		(916	)		(1,283	)		(11,387	)		(15,297	)
Expected future interest payments^(a)		(679	)		(673	)		(670	)		(638	)		(606	)		(4,553	)		(7,819	)
Other financial liabilities		(302	)		(43	)		-			-			-			-			(345	)
Derivative financial liabilities^(b)
Derivatives related to net debt - net settled		10			10			14			11			7			36			88
Derivatives related to net debt - gross settled^(a):
– gross inflows		62			62			958			44			44			1,493			2,663
– gross outflows		(82	)		(82	)		(1,051	)		(55	)		(55	)		(1,741	)		(3,066	)
Derivatives not related to net debt - net settled		(43	)		(36	)		(33	)		(24	)		(21	)		(138	)		(295	)
Derivatives not related to net debt - gross settled:
– gross inflows		795			-			-			-			-			-			795
– gross outflows		(802	)		-			-			-			-			-			(802	)
Total		(7,081	)		(1,344	)		(1,793	)		(1,578	)		(1,914	)		(16,290	)		(30,000	)

(a)	Interest payments have been projected using interest rates applicable at the end of the applicable financial year. Where debt is subject to variable interest rates, future interest payments are subject to change in line with market rates.

(b)	The maturity grouping is based on the earliest payment date.

Summary of impact of hedging instrument on statement of financial position

The impact of the hedging instrument on the Group balance sheet is as follows:

At 31 December 2018

Notional amount US$m

Carrying value US$m

Line item in the statement of financial position

Change in fair value used for measuring ineffectiveness for the period

US$m

Aluminium embedded derivatives separated from the power contract ^(a)

1,786

Other financial asset (US$54m) and other financial liability (US$46m)

205

(a)	Aluminium embedded derivatives (forward contracts and options) are contained within certain aluminium smelter electricity purchase contracts.

The impact of the hedged item on the Group balance sheet is:

At 31 December 2018

Change in fair value used for measuring ineffectiveness for the period

US$m

Cash flow hedge reserve

US$m

Highly probable forecast aluminium sales

(182)

179

The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income (OCI) is:

At 31 December 2018

Total hedging gain recognised in OCI

US$m

Ineffectiveness recognised in profit or loss

US$m

Line item in the statement of profit or loss

Amount reclassified from OCI to profit or loss

US$m

Line item in the statement of profit or loss

Highly probable forecast aluminium sales

181

Net operating costs (raw materials, consumables, repairs and maintenance)

Consolidated sales revenue

Summary of market price relevant to the aluminum purchase price swaps outstanding

	Change in market prices	2018 US$m	2017 US$m
Effect on net earnings	+10%	(102)	(203)
Effect on net earnings	-10%	35	212
Effect on equity	+10%	(101)	-
Effect on equity	-10%	103	-

Summary of maximum credit risk exposure of the Group's financial assets

			2018		2017
	Note	US$m		US$m
Cash and cash equivalents	21		10,773		10,550
Trade and other financial receivables	18		3,007		2,985
Investments	20		2,782		1,152
Derivative assets	20		556		267
Loans to equity accounted units			38		39
Total			17,156		14,993

Summary by currency, the Group's net debt, after taking into account relevant cross currency interest rate swaps and foreign exchange contracts

The table below summarises, by currency, the Group’s net debt, after taking into account relevant cross-currency interest rate swaps and foreign exchange contracts:

	Total			Derivatives			Cash and				Net cash/			Net cash/
	borrowings			related to net			cash		Other		(debt)			(debt)
	excluding overdrafts			debt			equivalents		investments			2018			2017
Net cash/(debt) by currency	US$m			US$m			US$m		US$m		US$m			US$m
US dollar		(12,080	)		(288	)		10,310		2,522		464			(3,628	)
Australian dollar		(472	)		-			217		-		(255	)		(208	)
Euro		(39	)		-			17		-		(22	)		(58	)
South African rand		-			-			95		-		95			59
Canadian dollar		(157	)		-			23		-		(134	)		(148	)
Other		(3	)		-			110		-		107			138
Total		(12,751	)		(288	)		10,772		2,522		255			(3,845	)

	Total			Derivatives			Cash and				Net cash/			Net cash/
	borrowings			related to net			cash		Other		(debt)			(debt)
	excluding overdrafts			debt			equivalents		investments			2018			2017
Net cash/(debt) by currency	US$m			US$m			US$m		US$m		US$m			US$m
US dollar		(12,080	)		(288	)		10,310		2,522		464			(3,628	)
Australian dollar		(472	)		-			217		-		(255	)		(208	)
Euro		(39	)		-			17		-		(22	)		(58	)
South African rand		-			-			95		-		95			59
Canadian dollar		(157	)		-			23		-		(134	)		(148	)
Other		(3	)		-			110		-		107			138
Total		(12,751	)		(288	)		10,772		2,522		255			(3,845	)

Summary of derivative financial instruments

	Total fair value
	2018					2017
	Asset		Liability			Asset		Liability
	US$m		US$m			US$m		US$m
Derivatives designated as hedges
Interest rate swaps^(a)		70		(137	)		99		(127	)
Cross-currency interest rate swaps^(b)		-		(221	)		-		(149	)
Aluminium embedded derivatives ^(c)		54		(46	)		-		-
Total derivatives designated as hedges		124		(404	)		99		(276	)

Derivatives not designated as hedges
Currency forward contracts, options and swaps		-		(68	)		7		(2	)
Aluminium forward contracts^(d)		26		(19	)		21		(9	)
Aluminium embedded derivatives^(c)		346		-			140		(238	)
Other embedded derivatives		6		-			-		(5	)
Other commodity contracts		54		(11	)		-		(1	)
Total derivatives not designated as hedges		432		(98	)		168		(255	)
Total derivative instruments		556		(502	)		267		(531	)

Analysed by maturity:
Less than 1 year		88		(95	)		29		(50	)
Between 1 and 5 years		153		(205	)		31		(233	)
More than 5 years		315		(202	)		207		(248	)
Total		556		(502	)		267		(531	)
Total net derivative instruments		54							(264	)

			2018			2017
Reconciliation to balance sheet	Note	US$m			US$m
Non-current assets	20		468			238
Current assets	20		88			29
Current liabilities	22		(95	)		(50	)
Non-current liabilities	22		(407	)		(481	)
Total net derivative instruments			54			(264	)

(a)	The interest rate swaps are used to convert certain fixed rate borrowings to a floating rate. For further details, see note 22.

(b)	The cross-currency interest rate swaps are used to convert non-US dollar denominated borrowings to either fixed or floating US dollar borrowings. For further details see note 22.

(d)	Aluminium embedded derivatives (forward contracts and options) are contained within certain aluminium smelter electricity purchase contracts. These contracts reduce the Group’s margin exposure to movements in the aluminium price.

(c)	The aluminium forward contracts are entered into to convert aluminium sales made at a fixed price to the market price (LME cash). In 2017 and 2018 these contracts were not designated as hedges.

Summary of fair value of financial instruments

The carrying amounts and fair values of all of the Group’s financial instruments which are not carried at an amount which approximates their fair value at 31 December 2018 and 31 December 2017 are shown in the following table. The fair values of the Group’s cash equivalents and loans to equity accounted units approximate their carrying values as a result of their short maturity or because they carry floating rates of interest.

		31 December 2018						31 December 2017
		Carrying			Fair			Carrying			Fair
		value			value			value			value
	Note	US$m			US$m			US$m			US$m
Short-term borrowings	22		(312	)		(312	)		(552	)		(552	)
Medium-term and long-term borrowings	22		(12,440	)		(13,554	)		(14,624	)		(16,385	)

C (a) Valuation hierarchy

The table below shows the financial instruments carried at fair value by valuation method, under IFRS 9, at 31 December 2018.

													Not held
			Total			Level 1 ^(a)		Level 2 ^(b)			Level 3 ^(c)		at fair value
	Note		US$m			US$m		US$m			US$m		US$m
Assets
Cash and cash equivalents				10,773			7,994		-			-		2,779
Investments in equity shares and funds				130			92		-			38		-
Other investments, including loans^(d)	20			2,782			2,544		-			232		6
Trade and other financial receivables ^(e)		18		3,007			20		972			-		2,015
				16,692			10,650		972			270		4,800
Derivatives (net)
Forward contracts and option contracts: designated as hedges^(f) (Section B)				8			-		-			8		-
Forward contracts and option contracts, not designated as hedges ^(f) (Section B)				334			-		(25	)		359		-
Derivatives related to net debt (Section B)^(g)				(288	)		-		(288	)		-		-

Liabilities
Trade and other financial payables		25		(5,552	)		-		(39	)		-		(5,513	)
Total				11,194			10,650		620			637		(713	)

The table below shows the financial instruments carried at fair value by valuation method, under IAS 39, at 31 December 2017.

													Not held
		Total			Level 1 ^(a)		Level 2 ^(b)			Level 3 ^(c)			at fair value
	Note	US$m			US$m		US$m			US$m			US$m
Assets
Cash and cash equivalents			10,550			-		-			-			10,550
Equity shares and quoted funds	20		136			88		-			3			45
Other investments, including loans^(d)	20		1,152			1,037		-			88			27
Trade and other receivables ^(e)			2,985			-		90			-			2,895
			14,823			1,125		90			91			13,517
Derivatives (net)
Forward contracts and option contracts, not designated as hedges^(f) (Section B)			(87	)		-		11			(98	)		-
Derivatives related to net debt (Section B)^(g)			(177	)		-		(177	)		-			-

Liabilities
Trade and other financial payables			(5,922	)		-		(15	)		-			(5,907	)
Total			8,637			1,125		(91	)		(7	)		7,610

(a)	Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. This category includes listed equity shares and other quoted funds.

(b)	Valuation is based either on inputs which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or on inputs, which are directly or indirectly based on observable market data.

(c)	Valuation is based on inputs that are not based on observable market data (unobservable inputs).

(d)	Other investments, including loans, comprise: cash deposits in rehabilitation funds, government bonds, managed investment funds and royalty receivables. The royalty receivables are valued based on future expected output as well as future expected commodity prices.

(e)

Trade receivables include provisionally priced receivables relating to sales contracts where the selling price is determined after delivery to the customer, based on the market price at the relevant quotation point stipulated in the contract. Revenue is recognised on provisionally priced sales based on the forward selling price for the period stipulated in the contract. Under IFRS 9, provisionally priced receivables at 31 December 2018 were US$889 million and were fair valued. In the prior year, under IAS 39, only the embedded pricing derivatives, which were separated from the host receivables, were fair valued (31 December 2017: US$90 million).

(f)

Level 3 derivatives consist of derivatives embedded in electricity purchase contracts linked to the LME with terms expiring between 2025 and 2030 (2017: 2018 and 2030). The embedded derivatives are measured using discounted cash flows and option model valuation techniques. Long-term embedded derivatives with a fair value of US$338 million at 31 December 2018 (2017: US$(98) million) are valued using significant unobservable inputs as the term of the derivative extends beyond the forward curve for aluminium and includes unobservable market premium prices. In valuing these derivatives, aluminium prices are flatlined beyond the market forward curve and increased by projected inflation up to the date of expiry of each contract. Future market premiums are estimated based on historical trends. The range of market prices are US$2,426 per metric tonne in 2029 to US$2,507 in 2030 (2017: US$2,679 per metric tonne in 2028 to US$2,848 in 2030).

(g)

Interest rate and currency interest rate swaps are valued using applicable market-quoted swap yield curves adjusted for relevant basis and credit default spreads. Currency interest rate swap valuations also use market-quoted foreign exchange rates. A discounted cash flow approach is applied to the cash flows derived from the inputs to determine fair value.

Summary of capital and liquidity risk management

			2018			2017
Total capital	Note	US$m			US$m
Equity attributable to owners of Rio Tinto (see Group balance sheet)			43,686			44,711
Equity attributable to non-controlling interests (see Group balance sheet)			6,137			6,404
Net debt	24		(255	)		3,845
Total capital			49,568			54,960

Summary of effect of the cash flow hedge in statement of profit or loss and other comprehensive income (OCI)

The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income (OCI) is:

At 31 December 2018

Total hedging gain recognised in OCI

US$m

Ineffectiveness recognised in profit or loss

US$m

Line item in the statement of profit or loss

Amount reclassified from OCI to profit or loss

US$m

Line item in the statement of profit or loss

Highly probable forecast aluminium sales

181

Net operating costs (raw materials, consumables, repairs and maintenance)

Consolidated sales revenue

Disclosure of effect of changes in foreign exchange rates on earnings

Gains/(losses) associated with 10% strengthening of the US dollar

Of which

amount

Closing

Effect on

impacting

Impact

exchange

net

underlying

directly

rate

earnings

on equity

Currency exposure

US cents

US$m

Australian dollar

346

(993

)

Canadian dollar

(82

)

Euro

114

202

At 31 December 2017

Gains/(losses) associated with 10% strengthening of the US dollar

						Of which
						amount
	Closing		Effect on			impacting			Impact
	exchange		net			underlying			directly
	rate		earnings			earnings			on equity
Currency exposure	US cents		US$m			US$m			US$m
Australian dollar		78		608			47			(1,657	)
Canadian dollar		79		(134	)		3		-
Euro		120		165			(2	)	-

Summary of changes in the fair value of Level 3 financial assets and financial liabilities

The table below shows the summary of changes in the fair value of the Group’s level 3 financial assets and financial liabilities.

		2018		2017
	Level 3 financial assets			Level 3 financial assets
	and financial liabilities			and financial liabilities
	US$m			US$m
Opening balance		(7	)		479
Adjustment from transition to IFRS 9		19			-
Currency translation adjustments		(23	)		8
Total realised gains/(losses) included in:
– consolidated sales revenue		-			1
– net operating costs		9			(5	)
Total unrealised gains/(losses) included in:
- consolidated sales revenue		-			17
– net operating costs^(a)		375			(508	)
Total unrealised gains transferred into other comprehensive income through cash flow hedges		181			-
Additions		67			-
Disposals/maturity of financial instruments		(6	)		(5	)
Transfers		22			6
Closing balance		637			(7	)
Total gains/(losses) for the year included in the income statement for assets and liabilities held at year end		346			(491	)

		2018		2017
	Level 3 financial assets			Level 3 financial assets
	and financial liabilities			and financial liabilities
	US$m			US$m
Opening balance		(7	)		479
Adjustment from transition to IFRS 9		19			-
Currency translation adjustments		(23	)		8
Total realised gains/(losses) included in:
– consolidated sales revenue		-			1
– net operating costs		9			(5	)
Total unrealised gains/(losses) included in:
- consolidated sales revenue		-			17
– net operating costs^(a)		375			(508	)
Total unrealised gains transferred into other comprehensive income through cash flow hedges		181			-
Additions		67			-
Disposals/maturity of financial instruments		(6	)		(5	)
Transfers		22			6
Closing balance		637			(7	)
Total gains/(losses) for the year included in the income statement for assets and liabilities held at year end		346			(491	)

Commodity price risk [Member]

Disclosure Of Financial Instruments [Line Items]

Summary of notional aluminium forward sales contracts embedded in power contracts

The Group is holding the following notional aluminium forward sales contracts embedded in the power contracts:

At 31 December 2018	Within 1 year	Between 1 and 5 years	Between 5 and 10 years	After 10 years
Notional amount (in tonnes)	56,481	286,666	358,416	65,548
Notional amount (in US$ millions)	114	634	870	168
Average hedged rate (in US$ per tonne)	2,013	2,210	2,426	2,562