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Revenue by destination and product
 12 Months Ended
Dec. 31, 2024
Revenue [abstract]  
Revenue by destination and product 6 Revenue by destination and productRecognition 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 5 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 CODM 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.
6 Revenue by destination and productConsolidated sales revenue by destination(a)
2024
%
2023
%
2022
%
2024
US$m
2023
US$m
2022
US$m
Greater China
57.4
59.6
54.3
30,814
32,193
30,172
US
16.8
13.9
15.9
9,007
7,516
8,823
Asia (excluding Greater China and Japan)
6.9
7.2
7.1
3,718
3,881
3,937
Japan
6.5
6.9
7.4
3,470
3,727
4,091
Europe (excluding UK)
4.8
5.3
6.5
2,580
2,859
3,618
Canada
2.9
2.9
3.1
1,562
1,588
1,743
Australia
2.0
1.7
1.9
1,076
923
1,047
UK
0.3
0.1
0.3
143
81
182
Other countries
2.4
2.4
3.5
1,288
1,273
1,941
Consolidated sales revenue
100
100
100
53,658
54,041
55,554
(a)Consolidated sales revenue by geographical destination is based on the ultimate country of the product's destination, if known. Where the ultimate destination is not known, we have
defaulted to the shipping address of the customer. Rio Tinto is domiciled in both the UK and Australia.
Consolidated sales revenue by product
We have sold the following products to external customers during the year:
2024
2023
2022
Revenue from
contracts with
customers
US$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$m
Revenue from
contracts with
customers
US$m
Other
revenue(a)
US$m
Consolidated
sales revenue
US$m
Iron ore
31,334
(530)
30,804
33,383
389
33,772
33,068
(267)
32,801
Aluminium, alumina and bauxite
12,947
48
12,995
12,039
(63)
11,976
13,955
(165)
13,790
Copper
4,791
(63)
4,728
3,219
(1)
3,218
3,276
(80)
3,196
Industrial minerals (comprising titanium
dioxide slag, borates and salt)
2,678
(3)
2,675
2,806
(8)
2,798
2,685
(16)
2,669
Gold
788
9
797
470
6
476
564
9
573
Diamonds
279
–
279
444
–
444
816
–
816
Other products and freight services(b)
1,385
(5)
1,380
1,360
(3)
1,357
1,710
(1)
1,709
Consolidated sales revenue
54,202
(544)
53,658
53,721
320
54,041
56,074
(520)
55,554
(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.