XML 464 R81.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Financial instruments and risk management (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2024
Disclosure of detailed information about financial instruments [abstract] |
Summary of notional aluminium forward sales contracts embedded in power contracts | We held the following nominal aluminium forward sales contracts embedded in the power contracts as at 31 December:
| 2024 | 2023
| Within 1 year | Between 1 and 5 years | Between 5 and 10 years | Total | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | Total
Nominal amount (tonnes) | 73,117 | 286,455 | — | 359,572 | 72,617 | 289,801 | 66,268 | 428,686
Nominal amount (US$ millions) | 174 | 716 | — | 890 | 169 | 711 | 170 | 1,050
Average hedged rate (US$ per tonne) | 2,382 | 2,498 | — | 2,474 | 2,331 | 2,452 | 2,564 | 2,449
Summary of impact of hedging instrument on statement of financial position | The impact on our financial statements of these hedging instruments and hedging items are:
| Aluminium embedded derivatives separated from the power contract (hedging instrument)(a) | Highly probable forecast aluminium sales (hedged item)
| Nominal US$m | Carrying amount US$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$m | Total hedging gains/(losses) recognised in reserves US$m | Hedge ineffective- ness in the period (losses)/ gains(c) US$m | Losses/ (gains) reclassified from reserves to income statement(d) US$m
2024 | 890 | (113) | 42 | (39) | (26) | 42 | – | 5
2023 | 1,050 | (174) | 3 | (91) | (16) | (1) | 4 | (2)
(a)Aluminium embedded derivatives (forward contracts and options) are contained within certain aluminium smelter electricity purchase contracts. The carrying amount of US$113 million (2023: US$174 million) is shown within “Other financial assets and liabilities”. (b)The difference between this amount and the total cash flow hedge reserve of the Group (shown in note 35) relates to our cash flow hedge on the sterling bond (refer to interest rate risk section). (c)Hedge ineffectiveness is included in “net operating costs” (within “raw materials, consumables, repairs and maintenance” - refer to note 7) in the income statement. (d)On realisation of the hedge, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement.
Summary of market price relevant to the aluminum purchase price swaps outstanding | Our commodity derivatives are impacted by changes in market prices. The table below summarises the impact that changes in aluminium market prices have on aluminium forward and option contracts embedded in power supply agreements outstanding at 31 December 2024. Any change in price will result in an offsetting change in our future earnings.
| Change in market prices | 2024 US$m | 2023 US$m
Effect on net earnings | +10% | (42) | (52)
(10)% | 69 | 67
Effect on equity | +10% | (68) | (81)
(10)% | 42 | 70
Disclosure of effect of changes in foreign exchange rates on earnings | The table below shows the estimated retranslation effect on financial assets and financial liabilities at 31 December, including intragroup balances, of a 10% strengthening in the closing exchange rate of the USD against significant currencies. We deem 10% to be the annual exchange rate movement that is reasonably probable (on an annual basis over the long run) for any of our significant currencies and therefore an appropriate representation for the sensitivity analysis.
| 2024 | 2023
Currency exposure | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m
Australian dollar | 62 | 391 | (977) | 69 | 228 | (1,036)
Canadian dollar | 70 | (362) | – | 76 | (361) | –
Summary of fair value of financial instruments | The table below shows the classifications of our financial instruments by valuation method in accordance with IFRS 13 “Fair Value Measurement” at 31 December. All instruments shown as being held at fair value have been classified as fair value through the profit and loss unless specifically footnoted.
|  | 2024 | 2023
|  | Held at fair value | Held at amortised cost US$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) | 22 | 4,893 | – | – | 3,602 | 8,495 | 2,722 | – | – | 6,951 | 9,673
Investments in equity shares and funds(e) | 23 | 96 | – | 183 | – | 279 | 85 | – | 96 | – | 181
Other investments, including loans(f) | 23 | 230 | – | 275 | 104 | 609 | 896 | – | 228 | 153 | 1,277
Trade and other financial receivables(g) | 17 | 15 | 1,379 | – | 1,948 | 3,342 | 9 | 1,383 | – | 1,851 | 3,243
Loans to equity accounted units | 23 | – | – | – | 509 | 509 | – | – | – | – | –
Forward contracts and option contracts: designated as hedges(h) | 23 | – | – | 27 | – | 27 | – | – | – | – | –
Forward, option and embedded derivatives contracts, not designated as hedges(h) | 23 | – | 42 | 19 | – | 61 | – | 28 | 26 | – | 54
Derivatives related to net debt(i) | 23 | – | 24 | – | – | 24 | – | 87 | – | – | 87
Liabilities |  |  |  |  |  |  |  |  |  |  |
Trade and other financial payables(j) | 18 | – | (144) | – | (6,392) | (6,536) | – | (47) | – | (6,277) | (6,324)
Forward, option and embedded derivatives contracts, designated as hedges(h) | 23 | – | – | (180) | – | (180) | – | – | (174) | – | (174)
Forward, option and embedded derivatives contracts, not designated as hedges(h) | 23 | – | (48) | (108) | – | (156) | – | (63) | (29) | – | (92)
Derivatives related to net debt(i) | 23 | – | (367) | – | – | (367) | – | (516) | – | – | (516)
Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. (b)Valuation is based on inputs that are observable for the financial instruments, which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or inputs, either directly or indirectly based on observable market data. 24 Financial instruments and risk management continued (c)Valuation is based on inputs that cannot be observed using market data (unobservable inputs). The change in valuation of our level 3 instruments for the year to 31 December is as follows.
| 2024 | 2023
Level 3 financial assets and liabilities | US$m | US$m
Opening balance | 147 | 131
Currency translation adjustments | (12) | (2)
Total realised gains/(losses) included in: |  |
– consolidated sales revenue | – | 12
– net operating costs | (32) | (18)
Total unrealised gains included in: |  |
– net operating costs | 22 | 43
Total unrealised gains/(losses) transferred into other comprehensive income through cash flow hedges | 34 | (1)
Additions to financial assets | 88 | 29
Disposals/maturity of financial instruments | (31) | (47)
Closing balance | 216 | 147
Net gains included in the income statement for assets and liabilities held at year end | 3 | 31
(d)Our Cash and cash equivalents of US$8,495 million (2023: US$9,673 million), includes US$4,893 million (2023: US$2,722 million) relating to money market funds which are treated as FVTPL under IFRS 9 with the fair value movements reported as finance income. (e)Investments in equity shares and funds include US$221 million (2023: US$157 million) of equity shares, not held for trading, where we have irrevocably elected to present fair value gains and losses on revaluation in other comprehensive income. The election is made at an individual investment level. (f)Other investments, including loans, covers cash deposits in rehabilitation funds, government bonds, managed investment funds and royalty receivables. (g)Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes between the provisional price and the final price recorded separately within “Other revenue”. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 31 December 2024, US$1,374 million (2023: US$1,362 million) of provisionally priced receivables were recognised. (h)Level 3 derivatives mainly consist of derivatives embedded in electricity purchase contracts linked to the LME, midwest premium and billet premium with terms expiring between 2025 and 2036 (2023: 2025 and 2036). Derivatives related to renewable power purchase agreements are linked to forward electricity prices with terms expiring between 2026 and 2054. (i)Net debt derivatives include interest rate swaps and cross-currency swaps. As part of the International Swaps and Derivatives Association (ISDA) Fallbacks Protocol, on 1 July 2023 we completed the transition of our US LIBOR derivatives to SOFR on cessation of US LIBOR at 30 June 2023. There was no impact on our hedging arrangements after taking into account the IFRS 9 IBOR reform reliefs. (j)Trade and other financial payables comprise trade payables, other financial payables, accruals and amounts due to equity accounted units within note 18. The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which approximates their fair value at 31 December. The fair values of some of our financial instruments approximate their carrying values because of their short maturity, or because they carry floating rates of interest.
| 2024 | 2023
| Carrying value US$m | Fair value US$m | Carrying value US$m | Fair value US$m
Listed bonds | 8,137 | 7,702 | 8,607 | 8,672
Oyu Tolgoi project finance | 3,852 | 4,103 | 3,850 | 4,090
Other | 453 | 416 | 544 | 494
Total borrowings (including overdrafts) | 12,442 | 12,221 | 13,001 | 13,256
Summary of changes in the fair value of Level 3 financial assets and financial liabilities | 24 Financial instruments and risk management continued (c)Valuation is based on inputs that cannot be observed using market data (unobservable inputs). The change in valuation of our level 3 instruments for the year to 31 December is as follows.
| 2024 | 2023
Level 3 financial assets and liabilities | US$m | US$m
Opening balance | 147 | 131
Currency translation adjustments | (12) | (2)
Total realised gains/(losses) included in: |  |
– consolidated sales revenue | – | 12
– net operating costs | (32) | (18)
Total unrealised gains included in: |  |
– net operating costs | 22 | 43
Total unrealised gains/(losses) transferred into other comprehensive income through cash flow hedges | 34 | (1)
Additions to financial assets | 88 | 29
Disposals/maturity of financial instruments | (31) | (47)
Closing balance | 216 | 147
Net gains included in the income statement for assets and liabilities held at year end | 3 | 31
Summary of techniques to value significant fair value assets/(liabilities) categorised under level 2 and 3 | The techniques used to value our more significant fair value assets/(liabilities) categorised under level 2 and level 3 are summarised below:
| 2024 | 2023 |  |
Description | Fair value US$m | Fair value US$m | Valuation technique | Significant inputs
Level 2 |  |  |  |
Interest rate swaps | (156) | (163) | Discounted cash flows | –Applicable market quoted swap yield curves –Credit default spread
Cross-currency interest rate swaps | (187) | (266) | Discounted cash flows | –Applicable market quoted swap yield curves –Credit default spread –Market quoted FX rate
Provisionally priced receivables | 1,374 | 1,362 | Closely related listed product | –Applicable forward quoted metal price
Level 3 |  |  |  |
Renewable power purchase agreements | (111) | – | Discounted cash flows | –Forward electricity price –Energy volume
Derivatives embedded in electricity contracts | (132) | (186) | Option pricing model | –LME forward aluminium price –Midwest premium and billet premium
Royalty receivables | 252 | 214 | Discounted cash flows | –Forward commodity price –Mine production

X
- Definition The disclosure of detailed information about hedging instruments. [Refer: Hedging instruments [domain]] + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2024-01-01 -Paragraph 24A -URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2024-en-r&anchor=para_24A&doctype=Standard -URIDate 2024-03-27 + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutHedgingInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-2022:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the fair value of financial instruments. [Refer: Classes of financial instruments [domain]; At fair value [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2024-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard -URIDate 2024-03-27 + Details
Name: | ifrs-full_DisclosureOfFairValueOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-2022:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfFinancialInstrumentsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the entity's financial risk management practices and policies. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2024-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard -URIDate 2024-03-27 + Details
Name: | ifrs-full_DisclosureOfFinancialRiskManagementExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-2022:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure​ of effect​ of changes ​in foreign​ exchange​ rates​ earnings. + References No definition available. + Details
Name: | rio_DisclosureOfEffectOfChangesInForeignExchangeRatesEarningsExplanatoryTableTextBlock
Namespace Prefix: | rio_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of market price relevant to the alumina purchase price swaps outstanding explanatory. + References No definition available. + Details
Name: | rio_DisclosureOfMarketPriceRelevantToAluminumPurchasePriceSwapsOutstandingExplanatoryTableTextBlock
Namespace Prefix: | rio_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of movements in Level 3 financial assets and financial liabilities. + References No definition available. + Details
Name: | rio_SummaryOfMovementsInLevel3FinancialAssetsAndFinancialLiabilitiesExplanatoryTableTextBlock
Namespace Prefix: | rio_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary Of Valuation Techniques And Key Model Inputs To Measure Fair Value Of Assets (Liabilities) + References No definition available. + Details
Name: | rio_SummaryOfValuationTechniquesAndKeyModelInputsToMeasureFairValueOfAssetsLiabilitiesTableTextBlock
Namespace Prefix: | rio_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration