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Revenue by destination and product
 12 Months Ended
Dec. 31, 2023
Revenue [abstract]  
Revenue by destination and product 6 Revenue by destination and product
Recognition and measurement
We recognise sales revenue related to the transfer of promised goods
or services when control of the goods or services passes to the
customer. The amount of revenue recognised reflects the consideration
to which the Group is or expects to be entitled in exchange for those
goods or services.
Sales revenue is recognised on individual sales when control transfers
to the customer. In most instances, control passes and sales revenue is
recognised when the product is delivered to the vessel or vehicle on
which it will be transported once loaded, the destination port or the
customer’s premises. There may be circumstances when judgement is
required based on the five indicators of control below:
–The customer has the significant risks and rewards of ownership
and has the ability to direct the use of, and obtain substantially all of
the remaining benefits from, the good or service.
–The customer has a present obligation to pay in accordance with
the terms of the sales contract. For shipments under the Incoterms
cost, insurance and freight (CIF)/carriage paid to (CPT)/cost and
freight (CFR), this is generally when the ship is loaded, at which
time the obligation for payment is for both product and freight.
–The customer has accepted the asset. Sales revenue may be
subject to adjustment if the product specification does not conform
to the terms specified in the sales contract but this does not impact
the passing of control. Assay and specification adjustments have
historically been immaterial.
–The customer has legal title to the asset. The Group usually retains
legal title until payment is received for credit risk purposes only.
–The customer has physical possession of the asset. This indicator
may be less important as the customer may obtain control of an
asset prior to obtaining physical possession, which may be the case
for goods in transit.
Revenue is principally derived from sale of commodities. We sell the
majority of our products on CFR or CIF Incoterms. This means that the
Group is responsible (acts as principal) for providing shipping services
and, in some instances, insurance after the date at which control of
goods passes to the customer at the loading port. The Group, therefore,
has separate performance obligations for freight and insurance services
that are provided solely to facilitate the sale of the products it produces.
Other Incoterms commonly used by the Group are free on board (FOB),
where the Group has no responsibility for freight or insurance once
control of the goods has passed at the loading port, and delivered at
place (DAP), where control of the goods passes when the product is
delivered to the agreed destination. For these Incoterms, there is only
one performance obligation, being the provision of product at the point
where control passes.
Within each sales contract, each unit of product shipped is a separate
performance obligation. Revenue is generally recognised at the
contracted price as this reflects the standalone selling price. Sales
revenue excludes any applicable sales taxes. Sales of copper
concentrate are stated net of the treatment and refining charges, which
will be required to convert it to an end product.
The Group’s products are sold to customers under contracts that vary in
tenure and pricing mechanisms, including some volumes sold on the
spot market. Pricing for iron ore is on a range of terms, the majority
being either monthly or quarterly average pricing mechanisms, with a
smaller proportion of iron ore volumes being sold on the spot market.
Certain of the Group’s products may be provisionally priced at the date
revenue is recognised and a provisional invoice issued; however,
substantially all iron ore and aluminium sales are reflected at final prices
in the results for the period. Provisionally priced receivables are
subsequently measured at fair value through the income statement
under IFRS 9 “Financial Instruments” as described in note 24. The final
selling price for all provisionally priced products is based on the price for
the quotational period stipulated in the contract. Final prices for copper
concentrate are normally determined between 30 and 120 days after
delivery to the customer. The change in value of the provisionally priced
receivable is based on relevant forward market prices and is included in
sales revenue. Refer to “Other revenue” within the sales by product
disclosure below.
Revenues from the sale of significant by-products, such as gold, are
included in sales revenue. Third-party commodity swap arrangements
principally for delivery and receipt of smelter-grade alumina are offset
within operating costs. The sale and purchase of third-party production
for own use or to mitigate shortfalls in our production are accounted for
on a gross basis with sales presented within revenue from contracts
with customers. Other operating income includes revenue incidental to
the main revenue-generating activities of the operations and is treated
as a credit to operating costs.
Typically, the Group has a right to payment before or at the point that
control of the goods passes, including a right, where applicable, to
payment for provisionally priced products and unperformed freight and
insurance services. Cash received before control passes is recognised as
a contract liability. The amount of consideration does not contain a
significant financing component as payment terms are less than one year.
We have a number of long-term contracts to supply products to
customers in future periods. Generally, revenue is recognised on an
invoice basis, as each unit sold is a separate performance obligation and
therefore the right to consideration from a customer corresponds directly
with our performance completed to date.
We do not disclose sales revenue from freight and insurance services
separately as we do not consider that this is necessary in order to
understand the impact of economic factors on the Group. Our Chief
Executive, the chief operating decision maker as defined under IFRS 8
“Operating Segments”, does not review information specifically relating
to these sources of revenue in order to evaluate the performance of
business segments and Group information on these sources of revenue
is not provided externally.  
Consolidated sales revenue by destination(a)
2023
%
2022
%
2021
%
2023
US$m
2022
US$m
2021
US$m
Greater China (includes Taiwan)
59.6
54.3
59.7
32,193
30,172
37,878
United States of America
13.9
15.9
12.6
7,516
8,823
8,012
Asia (excluding Greater China and Japan)
7.2
7.1
6.9
3,881
3,937
4,415
Japan
6.9
7.4
7.9
3,727
4,091
5,012
Europe (excluding UK)
5.3
6.5
5.2
2,859
3,618
3,271
Canada
2.9
3.1
2.6
1,588
1,743
1,677
Australia
1.7
1.9
1.8
923
1,047
1,122
UK
0.1
0.3
0.4
81
182
243
Other countries
2.4
3.5
2.9
1,273
1,941
1,865
Consolidated sales revenue
100
100
100
54,041
55,554
63,495
(a)Consolidated sales revenue by geographical destination is based on the ultimate country of the product's destination, if known. Where the ultimate destination is not known, we have defaulted to
the shipping address of the customer. Rio Tinto is domiciled in both the UK and Australia.
Consolidated sales revenue by product
We have sold the following products to external customers during the year:
2023
Revenue from
contracts
with
customers
US$m
Other
revenue(a)
US$m
Consolidated
sales revenue
US$m
Iron ore
33,383
389
33,772
Aluminium, alumina and bauxite
12,039
(63)
11,976
Copper
3,219
(1)
3,218
Industrial minerals (comprising titanium dioxide slag, borates and salt)
2,806
(8)
2,798
Gold
470
6
476
Diamonds
444
—
444
Other products and freight services(b)
1,360
(3)
1,357
Consolidated sales revenue
53,721
320
54,041
2022
2021
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
33,068
(267)
32,801
42,992
(796)
42,196
Aluminium, alumina and bauxite
13,955
(165)
13,790
12,336
103
12,439
Copper
3,276
(80)
3,196
3,229
96
3,325
Industrial minerals (comprising titanium dioxide slag, borates and salt)
2,685
(16)
2,669
2,114
3
2,117
Gold
564
9
573
1,075
2
1,077
Diamonds
816
—
816
501
—
501
Other products and freight services(b)
1,710
(1)
1,709
1,837
3
1,840
Consolidated sales revenue
56,074
(520)
55,554
64,084
(589)
63,495
(a)Consolidated sales revenue includes both revenue from contracts with customers, accounted for under IFRS 15 “Revenue from Contracts with Customers”, and subsequent movements in
provisionally priced receivables, accounted for under IFRS 9, and included in “other revenue” above.
(b)“Other products and freight services” includes metallic co-products, molybdenum, silver and other commodities.