Principal joint ventures

12 Months Ended

Dec. 31, 2020

Disclosure of joint ventures [abstract]

Principal joint ventures

34 Principal joint ventures

At 31 December 2020

Company and country of incorporation/operation

Principal activities

Number of
shares held

Class of
shares
held

Proportion
of class
held (%)

Group
interest
(%)

Chile

Minera Escondida Ltda(a)

Copper mining and refining

—

Oman

Sohar Aluminium Co. L.L.C.(b)

Aluminium smelting; power generation

37,500

Ordinary

This list includes only those joint ventures that have a more significant impact on the profit or operating assets of the Group. Refer to note 44 for a list of related undertakings.

The Group’s principal joint ventures are held by intermediate holding companies and not directly by Rio Tinto plc or Rio Tinto Limited.

(a)Although the Group has a 30% interest in Minera Escondida Ltda, participant and management agreements provide for an Owners’ Council whereby significant commercial and operational decisions about the relevant activities that significantly affect the returns that are generated in effect require the joint approval of both Rio Tinto and BHP Billiton (holders of a 57.5% interest). It is therefore determined that Rio Tinto has joint control.

The year end of Minera Escondida Ltda is 30 June. The amounts included in the consolidated financial statements of Rio Tinto are, however, based on accounts of Minera Escondida Limitada that are coterminous with those of the Group.

(b)Although the Group holds a 20% interest in Sohar Aluminium Co. L.L.C, decisions about relevant activities that significantly affect the returns that are generated require agreement of all parties to the arrangement. It is therefore determined that Rio Tinto has joint control.

Summary information for joint ventures that are material to the Group

This summarised financial information is shown on a 100% basis. It represents the amounts shown in the joint ventures’ financial statements prepared in accordance with IFRS under Group accounting policies, including fair value adjustments and amounts due to and from Rio Tinto.


	Minera Escondida Ltda(c) 2020 US$m	Minera Escondida Ltda(c) 2019 US$m	Sohar Aluminum Co.L.L.C.(d) 2020 US$m	Sohar Aluminum Co.L.L.C.(d) 2019 US$m
Revenue	7,650	7,120	640	715
Depreciation and amortisation	(1,427)	(1,693)	(115)	(115)
Impairment charges (note 6)	—	—	(1,100)	—
Other operating costs	(2,756)	(3,670)	(430)	(505)
Operating profit/(loss)	3,467	1,757	(1,005)	95
Finance expense	(137)	(157)	(20)	(35)
Income tax	(1,197)	(627)	(15)	(10)
Profit/(loss) after tax	2,133	973	(1,040)	50


Other comprehensive loss	(40)	(17)	—	—
Total comprehensive income/(loss)	2,093	956	(1,040)	50
Non-current assets	11,833	12,450	1,850	3,045
Current assets	3,107	2,250	270	290
Current liabilities	(1,813)	(1,827)	(675)	(205)
Non-current liabilities	(4,560)	(4,670)	(200)	(845)
Net assets	8,567	8,203	1,245	2,285
Assets and liabilities above include:
– cash and cash equivalents	1,103	603	30	20


– current financial liabilities	(790)	(807)	(565)	(110)


– non-current financial liabilities	(2,560)	(2,380)	(30)	(675)
Dividends received from joint venture (Rio Tinto share)	585	666	—	—

Reconciliation of the above amounts to the investment recognised in the Group balance sheet


Group interest	30%	30%	20%	20%
Net assets	8,567	8,203	1,245	2,285
Group’s ownership interest	2,570	2,461	249	457


Carrying value of Group’s interest	2,570	2,461	249	457

(c)In addition to its “Investment in equity accounted units”, the Group recognises deferred tax liabilities of US$358 million (2019: US$362 million) relating to tax on unremitted earnings of equity accounted units.

(d)Under covenants stipulated in the agreement to Sohar Aluminium Co. L.L.C.’s secured loan facilities, Sohar Aluminium Co. L.L.C. is currently restricted from making any shareholder distributions until 2021 unless a specified amount of the loan facilities is funded.