Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Rio Tinto plc |
Entity Central Index Key | 0000863064 |
Current Fiscal Year End Date | --12-31 |
Group income statement
Group income statement - USD ($) shares in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Consolidated operations | |||
Consolidated sales revenue | $ 20,722 | $ 19,914 | |
Net operating costs (excluding items shown separately) | (12,818) | (13,472) | |
Impairment charges | [1] | (2,349) | (123) |
Gains/losses on disposals/acqusition of businesses | [2] | 0 | 176 |
Exploration and evaluation costs | (287) | (232) | |
Profit relating to interests in undeveloped projects | [2] | 8 | 195 |
Operating profit | 5,276 | 6,458 | |
Share of profit after tax of equity accounted units | 208 | 326 | |
Profit before finance items and taxation | 5,484 | 6,784 | |
Finance items | |||
Net exchange gains on US external debt and intragroup balances | 104 | 385 | |
Net losses on derivatives not qualifying for hedge accounting | (109) | (14) | |
Finance income | 175 | 100 | |
Finance costs | [3] | (273) | (332) |
Amortisation of discount | (195) | (191) | |
Net finance income (expense) | (298) | (52) | |
Profit before taxation | 5,186 | 6,732 | |
Taxation | (2,255) | (2,233) | |
Profit for the period | 2,931 | 4,499 | |
- attributable to owners of Rio Tinto (net earnings) | 4,130 | 4,380 | |
- attributable to non-controlling interests | $ (1,199) | $ 119 | |
Basic earnings per share (in USD per share) | [4] | $ 2.525 | $ 2.516 |
Diluted earnings per share (in USD per share) | [4] | $ 2.507 | $ 2.499 |
Accelerated Future Interest Payments Associated With Redemption Of Bonds | $ 94 | ||
Borrowing costs capitalised | $ 166 | $ 141 | |
Weighted average number of ordinary shares outstanding (in shares) | 1,635.6 | 1,740.9 | |
- Rio Tinto plc | |||
Finance items | |||
Weighted average number of ordinary shares outstanding (in shares) | 1,265.1 | 1,328.9 | |
- Rio Tinto Limited | |||
Finance items | |||
Weighted average number of ordinary shares outstanding (in shares) | 370.5 | 412 | |
[1] | Refer to Impairment charges note on pages F-11 and F-12. | ||
[2] | Refer to Acquisitions and disposals note on pages F-13 and F-14. | ||
[3] | Finance costs in the income statement include hedging adjustments and are net of amounts capitalised of US$166 million (30 June 2018: US$141 million).Rio Tinto completed a bond buy-back programme in April 2018 for US$1.9 billion (nominal value). The early redemption of these bonds accelerated the recognition of future interest payments associated with them. Included in finance costs in the six months ended 30 June 2018 is a net charge of US$94 million attributable to early redemption of these bonds. | ||
[4] | For the purpose of calculating basic earnings per share, the weighted average number of Rio Tinto plc and Rio Tinto Limited shares outstanding during the period was 1,635.6 million (30 June 2018: 1,740.9 million), being the average number of Rio Tinto plc shares outstanding of 1,265.1 million (30 June 2018: 1,328.9 million), plus the average number of Rio Tinto Limited shares outstanding of 370.5 million (30 June 2018: 412.0 million). The profit figures used in the calculation of basic and diluted earnings per share are the profits attributable to owners of Rio Tinto. For the purpose of calculating diluted earnings per share, the effect of dilutive securities is added to the weighted average number of shares. This effect is calculated under the treasury stock method. |
Group statement of comprehensiv
Group statement of comprehensive income - USD ($) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | ||||
Statement of comprehensive income [abstract] | |||||
Profit after tax for the period | $ 2,931 | $ 4,499 | |||
Items that will not be reclassified to profit or loss: | |||||
Actuarial (losses)/gains on post-retirement benefit plans | (648) | 617 | |||
Changes in the fair value of equity investments held at fair value through other comprehensive income | (6) | (7) | |||
Tax relating to these components of other comprehensive income | 171 | (159) | |||
Items that will not be reclassified to profit or loss | (483) | 451 | |||
Items that have been/may be subsequently reclassified to profit or loss: | |||||
Currency translation adjustments | [1] | 269 | (2,304) | ||
Fair value movements: | |||||
- Cash flow hedge (losses)/gains | (47) | 95 | |||
- Cash flow hedge (gains)/losses transferred to the income statement | (7) | 18 | |||
Net change in costs of hedging | [2] | 14 | (29) | ||
Tax relating to these components of other comprehensive income | 3 | (28) | |||
Share of other comprehensive income/(loss) of equity accounted units, net of tax | 11 | (39) | |||
Other comprehensive loss for the period, net of tax | (240) | (1,836) | |||
Total comprehensive income for the period | 2,691 | [3] | 2,663 | [4] | |
- attributable to owners of Rio Tinto | 3,890 | 2,640 | |||
- attributable to non-controlling interests | (1,199) | 23 | |||
Currency Translation Loss | $ 31 | 231 | |||
Reclassification Of Cost Of Hedging | $ 3 | ||||
[1] | US$31 million for the period ended 30 June 2019 (30 June 2018: loss of US$231 million) arising on Rio Tinto Limited’s share capital, which is recognised in the Group statement of changes in equity. Refer to Group statement of changes in equity on pages F-7 and F-8. | ||||
[2] | As part of the bond buy-back programme in the period ended 30 June 2018, cross currency interest rate swaps hedging the bonds repurchased were closed out resulting in the reclassification of US$3 million cost of hedging to the income statement and recognised within finance costs. | ||||
[3] | Refer to Group statement of comprehensive income for further details. | ||||
[4] | Refer to Group statement of comprehensive income for further details. |
Group cash flow statement
Group cash flow statement - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Statements [Line Items] | ||||||||
Cash and cash equivalents | $ 6,861 | $ 5,989 | $ 10,773 | |||||
Cash flows from consolidated operations | [1] | 9,111 | 7,495 | |||||
Dividends from equity accounted units | 318 | 418 | ||||||
Cash flows from operations | 9,429 | 7,913 | ||||||
Net interest paid | [2],[3] | (250) | (338) | |||||
Dividends paid to holders of non-controlling interests in subsidiaries | (57) | (5) | ||||||
Tax paid | (2,733) | (2,342) | ||||||
Net cash generated from operating activities | 6,389 | 5,228 | ||||||
Cash flows from investing activities | ||||||||
Purchase of property, plant and equipment and intangible assets | (2,391) | (2,363) | ||||||
Disposals of subsidiaries, joint ventures and associates | 46 | 402 | ||||||
Purchases of financial assets | [4] | (47) | (1,063) | |||||
Sales of financial assets | [4] | 7 | 12 | |||||
Sales of property, plant and equipment and intangible assets | 17 | 18 | ||||||
Net funding of equity accounted units | (12) | (3) | ||||||
Acquisitions of subsidiaries, joint ventures and associates | 0 | (5) | ||||||
Other investing cashflows | 5 | 0 | ||||||
Net cash used in investing activities | (2,375) | (3,002) | ||||||
Cash flows before financing activities | 4,014 | 2,226 | ||||||
Cash flows before financing activities | ||||||||
Equity dividends paid to owners of Rio Tinto | (6,843) | (3,177) | ||||||
Proceeds from additional borrowings | 142 | 19 | ||||||
Repayment of borrowings | [3] | (99) | (2,093) | |||||
Lease principal payments | [2] | (136) | 0 | |||||
Proceeds from issue of equity to non-controlling interests | 43 | 38 | ||||||
Own shares purchased from owners of Rio Tinto | (988) | (1,501) | (988) | $ (1,501) | ||||
Other financing cash flows | 0 | (45) | ||||||
Net cash flows used in financing activities | (7,881) | (6,759) | ||||||
Effects of exchange rates on cash and cash equivalents | (34) | (20) | ||||||
Net decrease in cash and cash equivalents | (3,901) | (4,553) | ||||||
Opening cash and cash equivalents less overdrafts | 10,889 | 10,547 | 10,547 | |||||
Closing cash and cash equivalents less overdrafts | 6,988 | [5] | 5,994 | [5] | 10,889 | $ 10,547 | ||
Profit after tax for the period | 2,931 | 4,499 | ||||||
Adjustments for: | ||||||||
- Taxation | 2,255 | 2,233 | ||||||
- Finance items | 298 | 52 | ||||||
- Share of profit after tax of equity accounted units | (208) | (326) | ||||||
- Net gains on consolidation and disposal of interests in businesses | 0 | (176) | ||||||
- Impairment charges | 2,349 | 123 | ||||||
- Depreciation and amortisation(f) | 2,096 | 2,049 | ||||||
- Provisions (including exchange differences on provisions) | 338 | 390 | ||||||
Utilisation of other provisions | (237) | (214) | ||||||
Utilisation of provision for post-retirement benefits | (87) | (138) | ||||||
Change in inventories | (23) | (463) | ||||||
Change in trade and other receivables | 52 | 137 | ||||||
Change in trade and other payables | (401) | (442) | ||||||
Other items | [6] | (252) | (229) | |||||
Redemption Of Bonds | $ 1,900 | |||||||
Net Interest Paid | 80 | |||||||
Mark To Market Gains | 172 | (152) | ||||||
Bank overdrafts repayable on demand (unsecured) | (3) | 0 | (1) | |||||
Cash and cash equivalents included in assets held for sale | $ 130 | $ 5 | $ 117 | |||||
Weighted average number of ordinary shares outstanding (in shares) | 1,635.6 | 1,740.9 | ||||||
Fixed Income Instruments | ||||||||
Cash flows from investing activities | ||||||||
Purchases of financial assets | $ 0 | $ (1,000) | ||||||
[1] | (a) Cash flows from consolidated operationsProfit after tax for the period2,9314,499Adjustments for: - Taxation2,2552,233- Finance items29852- Share of profit after tax of equity accounted units(208)(326)- Net gains on consolidation and disposal of interests in businesses— (176)- Impairment charges2,349123- Depreciation and amortisation(f)2,0962,049- Provisions (including exchange differences on provisions)338390Utilisation of other provisions(237)(214)Utilisation of provision for post-retirement benefits(87)(138)Change in inventories(23)(463)Change in trade and other receivables52137Change in trade and other payables(401)(442)Other items(g)(252)(229) 9,1117,495Group cash flow statement continued | |||||||
[2] | Refer to pages F-26 to F-29 for the impact of transition to IFRS 16 'Leases' on 1 January 2019 and for the period ended 30 June 2019. | |||||||
[3] | Rio Tinto completed a US$1.9 billion (nominal value) bond buy-back programme in April 2018. The notes purchased and redeemed were cancelled. Net interest paid in the period ended 30 June 2018 included US$80 million, being the payment of the premiums and the accelerated interest associated with the bond redemption. | |||||||
[4] | US$1.0 billion) in a separately managed portfolio of fixed income instruments. Purchases and sales of these securities are reported on a net cash flow basis within ‘Purchases of financial assets’. | |||||||
[5] | Closing cash and cash equivalents less overdrafts for the purposes of the cash flow statement differs from cash and cash equivalents on the Group balance sheet as per the following reconciliation: Closing cash and cash equivalents less overdrafts30 June2019US$m31 December2018US$m30 June2018US$mBalance per Group balance sheet6,86110,7735,989Bank overdrafts repayable on demand (unsecured)(3)(1)— Cash and cash equivalents included in assets held for sale1301175Balance per Group cash flow statement6,98810,8895,994 | |||||||
[6] | Includes settlement of currency forward contracts related to tax and dividend payments not designated in a hedge relationship of US$172 million (30 June 2018: gains of US$152 million mainly relating to derivatives embedded in operational contracts and not designated in a hedge relationship). |
Group balance sheet
Group balance sheet - USD ($) shares in Millions, $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | |
Non-current assets | |||
Goodwill | $ 919 | $ 912 | |
Intangible assets | 2,645 | 2,779 | |
Property, plant and equipment | [1] | 56,349 | 56,361 |
Investments in equity accounted units | 4,216 | 4,299 | |
Inventories | 167 | 152 | |
Deferred tax assets | 3,141 | 3,137 | |
Trade and other receivables | 1,542 | 1,585 | |
Tax recoverable | 6 | 8 | |
Other financial assets (including loans to equity accounted units) | 902 | 814 | |
Total non-current assets | 69,887 | 70,047 | |
Current assets | |||
Inventories | 3,584 | 3,447 | |
Trade and other receivables | 3,127 | 3,179 | |
Tax recoverable | 148 | 77 | |
Other financial assets (including loans to equity accounted units) | 2,759 | 2,692 | |
Cash and cash equivalents | 6,861 | 10,773 | |
Total current assets | 16,479 | 20,168 | |
Assets of disposal groups held for sale | [2] | 386 | 734 |
Total assets | 86,752 | 90,949 | |
Current liabilities | |||
Borrowings and other financial liabilities | [1] | (2,003) | (1,073) |
Trade and other payables | (6,380) | (6,600) | |
Tax payable | [1] | (1,415) | (1,842) |
Provisions including post-retirement benefits | (1,099) | (1,056) | |
Total current liabilities | (10,897) | (10,571) | |
Non-current liabilities | |||
Borrowings and other financial liabilities | [1] | (13,321) | (12,847) |
Trade and other payables | (762) | (841) | |
Tax payable | [1] | (369) | (348) |
Deferred tax liabilities | (3,524) | (3,673) | |
Provisions including post-retirement benefits | (13,410) | (12,552) | |
Total non-current liabilities | (31,386) | (30,261) | |
Liabilities of disposal groups held for sale | [2] | (169) | (294) |
Total liabilities | (42,452) | (41,126) | |
Net assets | 44,300 | 49,823 | |
Capital and reserves | |||
Share capital | [3] | 3,477 | |
Share premium account | 4,313 | 4,312 | |
Other reserves | 8,923 | 8,661 | |
Retained earnings | [1] | 22,674 | 27,025 |
Equity attributable to owners of Rio Tinto | 39,565 | 43,686 | |
Attributable to non-controlling interests | 4,735 | 6,137 | |
Total equity | $ 44,300 | $ 49,823 | |
Net Tangible Assets Per Share (in USD per share) | $ 22.07 | $ 24.25 | |
- Rio Tinto plc | |||
Capital and reserves | |||
Share capital | [3] | $ 209 | $ 211 |
Shares issued (in shares) | 1,260.3 | ||
- Rio Tinto Limited | |||
Capital and reserves | |||
Share capital | [3] | $ 3,446 | |
Shares issued (in shares) | 371.2 | ||
[1] | Refer to pages F-26 to F-30 for the impact of transition to new accounting standards; IFRS 16 'Leases' and IFRIC 23 'Uncertainty over Income Tax Treatments' on 1 January 2019 and as at 30 June 2019. | ||
[2] | Assets and liabilities held for sale at 30 June 2019 include our interest in Rössing Uranium Limited. Assets and liabilities held for sale at 31 December 2018 include our interest in Rössing Uranium Limited, the ISAL smelter, the Aluchemie anode plant, and the Alufluor aluminium fluoride plant. | ||
[3] | At 30 June 2019, Rio Tinto plc had 1,260.3 million ordinary shares in issue and held by the public, and Rio Tinto Limited had 371.2 million shares in issue and held by the public. No shares in Rio Tinto Limited were held by Rio Tinto plc at 30 June 2019 (31 December 2018: nil). As required to be disclosed under the ASX Listing Rules, the net tangible assets per share amounted to US$22.07 (31 December 2018: US$24.25). |
Group statement of changes in e
Group statement of changes in equity - USD ($) $ in Millions | Total | Share capital | Share premium | Other reserves | Retained earnings | Total | Non-controlling interests | |
Opening balance (Restated) at Dec. 31, 2017 | $ 50,946 | $ 4,360 | $ 4,306 | $ 12,294 | $ 23,582 | $ 44,542 | $ 6,404 | |
Opening balance at Dec. 31, 2017 | 51,115 | 4,360 | 4,306 | 12,284 | 23,761 | 44,711 | 6,404 | |
Total comprehensive (loss)/income for the period | [1] | 2,663 | (2,188) | 4,828 | 2,640 | 23 | ||
Currency translation arising on Rio Tinto Limited's share capital | (231) | (231) | (231) | |||||
Dividends | (3,331) | (3,177) | (3,177) | (154) | ||||
Share buyback | [2] | (1,444) | (4) | 4 | (1,444) | (1,444) | ||
Own shares purchased from Rio Tinto shareholders to satisfy share options | [3] | (82) | (26) | (56) | (82) | |||
Change in equity held by Rio Tinto | 28 | 28 | (28) | |||||
Treasury shares reissued and other movements | 5 | 5 | 5 | |||||
Equity issued to holders of non-controlling interests | 38 | 38 | ||||||
Employee share options and other IFRS 2 charges to the income statement | 52 | 24 | 28 | 52 | ||||
Transfers and other movements | 34 | (34) | ||||||
Closing balance at Jun. 30, 2018 | $ 48,616 | 4,125 | 4,311 | 10,142 | 23,755 | 42,333 | 6,283 | |
Dividends per share: ordinary - paid during the period | $ 1.800 | |||||||
Dividends per share: special - paid during the period | 0 | |||||||
Dividends per share: proposed in the announcement of the results for the period (in USD per share) | $ 1.270 | |||||||
Payments for entity's shares | $ 1,501 | |||||||
Dividends, Other, proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ 0 | |||||||
Opening balance (Restated) at Dec. 31, 2017 | $ 50,946 | 4,360 | 4,306 | 12,294 | 23,582 | 44,542 | 6,404 | |
Opening balance at Dec. 31, 2017 | 51,115 | 4,360 | 4,306 | 12,284 | 23,761 | 44,711 | 6,404 | |
Share buyback | (1,133) | |||||||
Closing balance (Previously stated) at Dec. 31, 2018 | 49,823 | 3,688 | 4,312 | 8,661 | 27,025 | 43,686 | 6,137 | |
Closing balance (Restated) at Dec. 31, 2018 | 49,708 | 3,688 | 4,312 | 8,661 | 26,912 | 43,573 | 6,135 | |
Closing balance at Dec. 31, 2018 | 49,823 | |||||||
Payments for entity's shares | 988 | |||||||
Total comprehensive (loss)/income for the period | [4] | 2,691 | 229 | 3,661 | 3,890 | (1,199) | ||
Currency translation arising on Rio Tinto Limited's share capital | (31) | (31) | (31) | |||||
Dividends | (7,042) | (6,843) | (6,843) | (199) | ||||
Share buyback | [5] | (1,133) | (2) | 2 | (1,133) | (1,133) | ||
Own shares purchased from Rio Tinto shareholders to satisfy share options | [6] | (8) | 0 | (8) | (8) | |||
Change in equity held by Rio Tinto | 45 | 45 | (45) | |||||
Treasury shares reissued and other movements | 1 | 1 | 1 | |||||
Equity issued to holders of non-controlling interests | 43 | 43 | ||||||
Employee share options and other IFRS 2 charges to the income statement | 71 | 31 | 40 | 71 | ||||
Closing balance at Jun. 30, 2019 | $ 44,300 | $ 3,655 | $ 4,313 | $ 8,923 | $ 22,674 | $ 39,565 | $ 4,735 | |
Dividends per share: ordinary - paid during the period | $ 1.800 | |||||||
Dividends per share: special - paid during the period | 2.430 | |||||||
Dividends per share: proposed in the announcement of the results for the period (in USD per share) | $ 1.510 | |||||||
Payments for entity's shares | $ 988 | |||||||
Dividends, Other, proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ 0.610 | |||||||
[1] | Refer to Group statement of comprehensive income for further details. | |||||||
[2] | Total amount of US$1,444 million includes own shares purchased from owners of Rio Tinto plc as per the cash flow statement of US$1,501 million adjusted for the movement in a financial liability recognised in respect of irrevocable contracts in place as at 30 June 2018 and 31 December 2017 to cover the share buy-back programme. | |||||||
[3] | Net of contributions received from employees for share options. | |||||||
[4] | Refer to Group statement of comprehensive income for further details. | |||||||
[5] | Total amount of US$1,133 million includes own shares purchased from owners of Rio Tinto plc as per the cash flow statement of US$988 million adjusted for the movement in a financial liability recognised in respect of irrevocable contracts in place as at 30 June 2019 and 31 December 2018 to cover the share buy-back programme. | |||||||
[6] | Net of contributions received from employees for share options. |
Rio Tinto financial information
Rio Tinto financial information by business unit [Schedule] (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of operating segments [abstract] | |
Rio Tinto financial information by business unit | Rio Tinto financial information by business unit Gross revenue (a) EBITDA (b) Net earnings (c) for the 6 months ended for the 6 months ended for the 6 months ended Rio Tinto 30 June 2019 30 June 2018 30 June 2019 30 June 2018 30 June 2019 30 June 2018 Iron Ore Pilbara (d) 11,039 9,113 7,528 5,626 4,548 3,202 Dampier Salt 68.4 128 123 38 29 14 9 Evaluation projects/other 41 57 (14 ) 30 (56 ) 20 Total Iron Ore 11,208 9,293 7,552 5,685 4,506 3,231 Aluminium (e) Bauxite 1,182 1,207 472 452 231 246 Alumina 1,455 1,605 461 435 247 222 Intrasegment (425 ) (447 ) (2 ) (3 ) (1 ) (2 ) Bauxite & Alumina 2,212 2,365 931 884 477 466 Primary Metal 2,490 3,328 306 917 (14 ) 437 Pacific Aluminium 1,112 1,265 (54 ) 151 (96 ) 55 Inter-segment and other (1,261 ) (1,450 ) 28 (40 ) 20 (33 ) Integrated operations 4,553 5,508 1,211 1,912 387 925 Other product group Items 502 589 (144 ) (166 ) (113 ) (129 ) Product group operations 5,055 6,097 1,067 1,746 274 796 Evaluation projects/other 45 51 60 85 41 75 Total Aluminium 5,100 6,148 1,127 1,831 315 871 Copper & Diamonds Rio Tinto Kennecott 100.0 892 851 425 343 171 107 Escondida 30.0 1,061 1,271 568 790 213 316 Grasberg joint venture (f) — — — (5 ) — (13 ) Oyu Tolgoi and Turquoise Hill (g) 735 587 306 202 52 38 Diamonds (h) 271 323 69 132 (5 ) 55 Product group operations 2,959 3,032 1,368 1,462 431 503 Evaluation projects/other — — (155 ) (102 ) (83 ) (53 ) Total Copper & Diamonds 2,959 3,032 1,213 1,360 348 450 Energy & Minerals Rio Tinto Coal Australia (i) — 837 — 560 — 342 Iron Ore Company of Canada 58.7 1,075 495 526 122 171 16 Rio Tinto Iron & Titanium (j) 983 857 339 229 144 60 Rio Tinto Borates 100.0 304 324 98 107 54 60 Uranium (k) 146 201 39 14 13 6 Product group operations 2,508 2,714 1,002 1,032 382 484 Simandou iron ore project (l) — — (6 ) (6 ) (3 ) (3 ) Evaluation projects/other 31 27 (42 ) (18 ) (38 ) (17 ) Total Energy & Minerals 2,539 2,741 954 1,008 341 464 Other operations (m) 10 9 (88 ) (27 ) (80 ) (67 ) Intersegment transactions (7 ) (6 ) — — — — Product group total 21,809 21,217 10,758 9,857 5,430 4,949 Central pension costs, share-based payments and insurance 77 (83 ) 77 (54 ) Restructuring, project and one-off costs (175 ) (177 ) (119 ) (39 ) Central costs (272 ) (299 ) (258 ) (236 ) Exploration and evaluation (138 ) (100 ) (109 ) (86 ) Net interest (89 ) (118 ) Underlying EBITDA/earnings 10,250 9,198 4,932 4,416 Items excluded from underlying EBITDA/earnings — (10 ) 117 325 (802 ) (36 ) EBITDA/net earnings 10,367 9,523 4,130 4,380 Reconciliation to Group income statement Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales (1,087 ) (1,293 ) Depreciation and amortisation in subsidiaries excluding capitalised depreciation (2,059 ) (2,019 ) Impairment charges (2,349 ) (123 ) Depreciation and amortisation in equity accounted units (299 ) (354 ) Taxation and finance items in equity accounted units (176 ) (243 ) Consolidated sales revenue/profit on ordinary activities before finance items and taxation 20,722 19,914 5,484 6,784 Rio Tinto financial information by business unit continued Capital expenditure (n) Depreciation and amortisation Operating assets (o) for the 6 months ended for the 6 months ended As at Rio Tinto 30 June 2019 30 June 2018 30 June 2019 30 June 2018 30 June 2019 31 December 2018 Iron Ore Pilbara (d) 663 485 817 869 14,427 14,486 Dampier Salt 68.4 6 3 9 10 150 165 Evaluation projects/other — — — — 2 2 Total Iron Ore 669 488 826 879 14,579 14,653 Aluminium (e) Bauxite 242 480 112 78 2,681 2,494 Alumina 114 79 96 97 2,481 2,721 Intrasegment — — — — (21 ) (20 ) Bauxite & Alumina 356 559 208 175 5,141 5,195 Primary Metal 303 272 312 311 9,890 9,306 Pacific Aluminium 52 54 77 72 1,148 1,156 Inter-segment and other — — — — 799 789 Total Aluminium 711 885 597 558 16,978 16,446 Copper & Diamonds Rio Tinto Kennecott 100.0 179 158 216 205 1,910 1,864 Escondida 30.0 147 159 237 287 2,951 3,057 Grasberg joint venture (f) — 20 — 20 — — Oyu Tolgoi and Turquoise Hill (g) 651 593 109 114 5,954 6,072 Diamonds (h) 23 38 77 50 312 267 Product group operations 1,000 968 639 676 11,127 11,260 Evaluation projects/other 2 1 3 3 152 129 Total Copper & Diamonds 1,002 969 642 679 11,279 11,389 Energy & Minerals Rio Tinto Coal Australia (i) — 42 — 34 — (837 ) Iron Ore Company of Canada 58.7 73 59 84 79 827 975 Rio Tinto Iron & Titanium (j) 95 86 99 107 3,489 3,390 Rio Tinto Borates 100.0 17 21 30 29 525 518 Uranium (k) 3 3 1 2 (480 ) (406 ) Product group operations 188 211 214 251 4,361 3,640 Simandou iron ore project (l) — — — — 21 15 Evaluation projects/other — — — — 42 41 Total Energy & Minerals 188 211 214 251 4,424 3,696 Other operations (m) 2 8 80 17 (178 ) (442 ) Product group total 2,572 2,561 2,359 2,384 47,082 45,742 Intersegment transactions 152 129 Net assets of disposal groups held for sale (p) 217 440 Other items 25 23 36 19 (3,031 ) (2,880 ) Less: equity accounted units (223 ) (239 ) (299 ) (354 ) — — Total 2,374 2,345 2,096 2,049 44,420 43,431 Add back: Proceeds from disposal of property, plant and equipment 17 18 Total capital expenditure per cash flow statement 2,391 2,363 Less: Net (debt)/cash (4,855 ) 255 Equity attributable to owners of Rio Tinto 39,565 43,686 |
Notes to financial information
Notes to financial information by business unit [Schedule] (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of entity's operating segments [Abstract] | |
Notes to financial information by business unit | Notes to financial information by business unit Business units are classified according to the Group’s management structure. Certain comparative amounts have been recast to appropriately represent changes in management responsibility. Effective from the first half of 2019, Dampier Salt has moved from the Energy & Minerals Product Group to the Iron Ore Product Group. (a) Gross sales revenue includes the sales revenue of equity accounted units on a proportionately consolidated basis (after adjusting for sales to subsidiaries) in addition to consolidated sales. Consolidated sales revenue includes subsidiary sales to equity accounted units which are not included in gross sales revenue. (b) EBITDA of subsidiaries and the Group’s share of EBITDA relating to equity accounted units represents profit before: tax, net finance items, depreciation and amortisation charged to the income statement in the period. Underlying EBITDA excludes the EBITDA impact of the same items that are excluded from underlying earnings. (c) Represents profit after tax for the period attributable to the owners of the Rio Tinto Group. Business unit earnings are stated before finance items but after the amortisation of discount related to provisions. Earnings attributed to business units do not include amounts that are excluded in arriving at underlying earnings. (d) Pilbara represents the Group’s 100 % holding in Hamersley, 50 % holding of Hope Downs Joint Venture and 65 % holding of Robe River Iron Associates. The Group’s net beneficial interest in Robe River Iron Associates is 53 % as 30 % is held through a 60 % owned subsidiary and 35 % is held through a 100 % owned subsidiary. (e) Presented on an integrated operations basis, splitting activities between Bauxite & Alumina, Primary Metal, Pacific Aluminium and Other integrated operations (which in total reflect the results of the integrated production of aluminium) and Other product group items, which relate to other commercial activities. (f) Through a joint venture agreement with Freeport-McMoRan Inc. (Freeport), we were entitled to 40 % of material mined above an agreed threshold as a consequence of expansions and developments of the Grasberg facilities since 1998 (until 21 December 2018). On 21 December 2018, we sold our entire interest in the Grasberg mine to PT Indonesia Asahan Aluminium (Persero) (Inalum). (g) Our interest in Oyu Tolgoi is held indirectly through our 50.8 % investment in Turquoise Hill Resources Ltd (TRQ), where TRQ’s principal asset is its 66 % investment in Oyu Tolgoi LLC, which owns the Oyu Tolgoi copper-gold mine. (h) Includes our interests in Argyle ( 100 %) and Diavik ( 60 %). (i) Includes our 82 % interest in the Hail Creek coal mine (until 1 August 2018), our 80 % interest in the Kestrel underground coal mine (until 1 August 2018) and interests in the Winchester South (until 1 June 2018) and Valeria development projects (until 1 August 2018). On 1 June 2018, we sold our entire 75% interest in the Winchester South coal development project in Queensland, Australia, to Whitehaven Coal Limited for US$200 million. On 1 August 2018, we sold our entire 82 % interest in the Hail Creek coal mine and 71.2 % interest in the Valeria coal development project in Queensland, Australia to Glencore, for US$1.7 billion . On 1 August 2018, we sold our entire 80% interest in the Kestrel underground coal mine in Queensland, Australia to a consortium comprising private equity manager EMR Capital (EMR) and PT Adaro Energy Tbk (Adaro), an Indonesian listed coal company for US$2.25 billion . Rio Tinto Coal Australia’s operating assets of US$(837) million at 31 December 2018 include provisions for onerous contracts in relation to rail infrastructure capacity, capital gains tax payable on the divestments announced in the period partly offset by financial assets and receivables relating to contingent royalties and disposal proceeds. As at 30 June 2019, these remaining balances are now reported within Other operations with no restatement of comparative amounts, following a change in management responsibility . (j) Includes our interests in Rio Tinto Fer et Titane ( 100 %), QIT Madagascar Minerals (QMM, 80 %) and Richards Bay Minerals (attributable interest of 74 %). Notes to financial information by business unit continued (k) Includes our interests in Energy Resources of Australia ( 68.4 %) and Rössing Uranium Limited (Rössing) ( 68.6 %). On 26 November 2018, we entered into a binding agreement with China National Uranium Corporation Limited (CNUC) to sell our entire 68.6% interest in the Rössing mine in Namibia, subject to certain conditions. The sale completed on 16 July 2019. (l) Simfer Jersey Limited, a company incorporated in Jersey in which the Group has a 53 % interest, has an 85 % interest in Simfer S.A., the company that manages the Simandou mining project in Guinea. The Group therefore has a 45.05 % indirect interest in Simfer S.A. These entities are consolidated as subsidiaries and together referred to as the Simandou iron ore project. (m) Other Operations include our 100 % interest in the Gove alumina refinery, Rio Tinto Marine and, with effect from the first half of 2019, the remaining operating assets of Rio Tinto Coal Australia. These include provisions for onerous contracts, as at 30 June 2019, in relation to rail infrastructure capacity, partly offset by financial assets and receivables relating to contingent royalties and disposal proceeds. Refer to note (i). (n) Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and purchases less sales of other intangible assets. The details provided include 100 % of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations and equity accounted units. (o) Operating assets of subsidiaries is comprised of net assets excluding post-retirement assets and liabilities, net of tax, and before deducting net debt. Operating assets are stated after the deduction of non-controlling interests - these are calculated by reference to the net assets of the relevant companies (ie inclusive of such companies’ debt and amounts due to or from Rio Tinto Group companies). (p) Assets and liabilities held for sale at 30 June 2019 include our interest in Rössing Uranium Limited. Assets and liabilities held for sale at 31 December 2018 include our interest in Rössing Uranium Limited, the ISAL smelter, the Aluchemie anode plant, and the Alufluor aluminium fluoride plant. |
Geographical analysis (by desti
Geographical analysis (by destination) (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of geographical areas [abstract] | |
Geographical analysis (by destination) | Geographical analysis (by destination) Consolidated sales revenue by destination (a) Six months Six months to 30 June 2018 % (b) Six months Six months to 30 June 2018 US$m (b) China 49.8 % 44.9 % 10,321 8,946 Asia (excluding China and Japan) 11.2 % 11.6 % 2,331 2,316 United States of America 13.7 % 15.4 % 2,834 3,058 Japan 8.7 % 10.1 % 1,793 2,019 Europe (excluding UK) 7.1 % 8.8 % 1,466 1,745 Canada 4.0 % 3.4 % 821 671 Australia 1.6 % 1.8 % 325 353 UK 0.5 % 0.6 % 115 117 Other 3.4 % 3.4 % 716 689 Consolidated sales revenue 100.0 % 100.0 % 20,722 19,914 The financial information by business unit and the geographic analysis of sales by destination satisfy the disclosure requirements of IFRS 8 ‘Operating Segments’ for interim financial statements and also provide additional voluntary disclosure which the Group considers is useful to the users of the financial statements. (a) Consolidated sales revenue by geographical destination is based on the ultimate country of destination of the product, if known. If the eventual destination of the product sold through traders is not known then revenue is allocated to the location of the product at the time when the risks and rewards of ownership are transferred. Rio Tinto is domiciled in both the UK and Australia. (b) The 30 June 2018 comparatives have been amended to correct the allocation of sales revenue by destination. This resulted in a decrease in sales to the United States of America and the UK by US$59 million and US$56 million respectively with a corresponding increase in sales to Europe (excluding UK) of US$45 million , Canada of US$37 million and Other countries of US$33 million . Product analysis (by revenue type) Six months to 30 June 2019 Six months to 30 June 2018 Consolidated sales revenue by product Revenue from contracts with customers Other revenue (a) US$m Consolidated sales revenue Revenue from contracts with customers (b) Other revenue (a) US$m Consolidated sales revenue Iron ore (b) 11,571 543 12,114 9,633 (61 ) 9,572 Aluminium 5,057 (29 ) 5,028 6,027 38 6,065 Copper 1,061 11 1,072 1,077 5 1,082 Coal — — — 835 5 840 Industrial minerals (b) 1,117 (6 ) 1,111 1,064 — 1,064 Gold 393 — 393 228 — 228 Diamonds 271 — 271 323 — 323 Other (b) 732 1 733 740 — 740 Consolidated sales revenue 20,202 520 20,722 19,927 (13 ) 19,914 Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales 1,087 1,293 Gross sales revenue 21,809 21,207 Product analysis (by revenue type) continued (a) Certain of the Group’s products may be provisionally priced at the date revenue is recognised. The change in value of the provisionally priced receivables is based on relevant forward market prices and is included in ‘Other revenue’ above. (b) The 30 June 2018 comparatives have been amended to correct the allocation of sales revenue by product. The most significant impacts are an increase in Other products revenues of US$39 million and a decrease in Iron ore revenues of US$36 million . |
Impairment charges (Notes)
Impairment charges (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of impairment of assets [Abstract] | |
Impairment charges | Impairment charges Non-controlling Net Net Pre-tax Taxation interest amount amount HY 2019 HY 2019 HY 2019 HY 2019 HY 2018 US$m US$m US$m US$m US$m Aluminium - ISAL Smelter (109 ) 23 — (86 ) (98 ) Copper & Diamonds - Oyu Tolgoi (2,240 ) (39 ) 1,506 (773 ) — Total impairment charge (2,349 ) (16 ) 1,506 (859 ) (98 ) Aluminium - ISAL Smelter In 2018, we reached agreement with Hydro to sell the ISAL Smelter in Iceland, our 53.3% interest in the Aluchemie anode plant in the Netherlands and our 50% share in the Aluminium fluoride plant in Sweden. The anticipated headline sales price of US$345 million was lower than the carrying value of these assets leading us to recognise an impairment charge of US$123 million in the period ended 30 June 2018. This was based on a fair value less cost of disposal (FVLCD) model, against property, plant and equipment and acquired software. Subsequently, Hydro withdrew its offer. At 30 June 2019, these assets no longer meet the accounting criteria to be classified as assets held for sale. Accordingly these non-current assets have been tested for impairment as at 30 June 2019. The recoverable amount for the cash-generating units have been calculated based on the IAS 36 value-in-use methodology by reference to the net present value of post-tax cash flows expressed in real terms and discounted at 6.9 per cent. These were US $302 million for the cash-generating unit comprising ISAL and Aluchemie and US $46 million for Alufluor. This has resulted in a pre-tax impairment charge of US $109 million allocated to property, plant and equipment in the ISAL and Aluchemie cash-generating unit . Copper and Diamonds - Oyu Tolgoi As disclosed in the 2018 financial statements, during the year ended 31 December 2018 the Group observed a deterioration in some internal and external indicators of value for the Oyu Tolgoi cash-generating unit (CGU) and therefore prepared an assessment of recoverable amount. The net present value of post-tax cash flows at that time for the Oyu Tolgoi CGU, based on the IAS 36 fair value less costs of disposal (FVLCD) methodology, exceeded the carrying value and, as such, no impairment charge was recognised in 2018 (see note 1 and note 6 to the 2018 financial statements). The determination of recoverable amount at 31 December 2018 incorporated a nine-month delay in the schedule to sustainable production, the updates relating to the Power Source Framework Agreement and an estimate for the financial impact of a potential further delay in the commissioning of the primary production shaft. As noted at that time, more comprehensive geotechnical data that had become available as the underground development continued indicated that potentially significant changes to the design of some future elements of the development would be needed. As detailed design work was underway, and given the very early status of that work, no adjustments were made to the recoverable amount for these matters at 31 December 2018. The Group has continued to progress work on the project throughout the first half of 2019 and on 16 July 2019 provided an update on the Oyu Tolgoi underground project summarising preliminary estimates for increased project development expenditure, schedule delay to first sustainable production, and a delay to completion of the Definitive Estimate until the second half of 2020. These preliminary estimates indicated that first sustainable production could be delayed by 16 to 30 months compared with the original feasibility study guidance in 2016 and that development capital spend for the project may increase by between US $1.2 billion and US $1.9 billion in excess of the US $5.3 billion previously disclosed. These matters have been identified as an impairment trigger and an assessment of the recoverable amount for the cash-generating unit based on the IAS 36 FVLCD methodology has been prepared as at 30 June 2019. Impairment charges continued The recoverable amount of the Oyu Tolgoi CGU is classified as level 3 under the fair value hierarchy. In arriving at FVLCD as at 30 June 2019, post-tax cash flows expressed in real terms have been estimated over the current life of mine plus anticipated future expansions utilising mineral resources, and discounted using a post-tax real discount rate of 8.3 per cent (31 December 2018: 8.0 per cent). The mineral resources incorporate almost 2 billion tonnes of ore, which contributes approximately 20 per cent to the total recoverable amount. The recoverable amount has been determined to be US $8.3 billion on a post-tax basis and has resulted in a pre-tax impairment charge of US $2.2 billion ( 100 per cent basis) allocated to mining properties and the underground development assets under construction. The net adjustment to tax is represented by an increase to deferred tax assets of US $320 million for the temporary difference corresponding to the impairment and a decrease in deferred tax assets of US $359 million for tax losses that are now expected to expire without utilisation. The post-tax impairment charge of US $2.3 billion is allocated 66 per cent to non-controlling interests and the remaining 34 per cent to Rio Tinto shareholders (US $0.8 billion ) in proportion to the equity ownership interest in the project. The recoverable amount has been calculated taking into account a number of mine design options. As studies progress, this will lead to the selection of a preferred development option with detailed cost scheduling and production assumptions, which may lead to a change in recoverable amount. The recoverable amount also includes high-level risk adjustments to net cash flows to reflect the inherent uncertainty of assumptions for development capital, schedule and mineral resources. Together with development capital, scheduling and production assumptions, other critical assumptions in the determination of recoverable amount include discount rate and commodity prices. To illustrate the sensitivity of the recoverable amount to movements in these assumptions, an increase to the discount rate by 1 per cent with all other inputs remaining constant would reduce the recoverable amount by US $1.5 billion . A decrease in forecast copper prices by 10 per cent throughout the life of the mine would reduce the recoverable amount by US $2.2 billion while an increase of 10 per cent would increase the recoverable amount by US $2.1 billion . |
Acquisitions and disposals - (N
Acquisitions and disposals - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Acquisitions And Disposals [Abstract] | |
Acquisitions and disposals | Acquisitions and disposals 30 June 2019 Acquisitions There were no material acquisitions during the six months ended 30 June 2019 . Disposals There were no material disposals during the six months ended 30 June 2019 . Disposal proceeds received in the six months to 30 June 2019 include proceeds of US$26 million arising from working capital adjustments on the sale of the Hail Creek coal mine, which completed in 2018. The remainder represents cash proceeds of US$20 million received in respect of the non-contingent royalty receivable from Yancoal Australia Limited on the sale of Coal & Allied Industries Limited, which completed in 2017. Proceeds of US$60 million were received in the six months to 30 June 2018 in respect of the same arrangement. Disposals announced but not completed as at 30 June 2019 On 26 November 2018, we announced that we had entered into a binding agreement with China National Uranium Corporation Limited for the sale of our entire 68.62% stake in Rössing Uranium. The transaction completed on 16 July 2019 for an initial cash payment of US$6.5 million and a contingent payment of up to US$100 million . The sale included Rössing's cash on hand at the date of disposal, which will be reflected in net proceeds on the sale of subsidiaries. At 30 June 2019, Rössing's cash on hand amounted to US$130 million . A loss of approximately US$300 million will be recognised at the date of completion, including the loss that will be recycled from the currency translation reserve on sale of the business. 30 June 2018 Acquisitions On 10 May 2018, we created a joint venture, Elysis, with Alcoa and other partners to develop and commercialise a carbon-free aluminium smelting process. We are treating this as an acquisition for accounting purposes. We have accounted for our interest in Elysis using the equity method with the initial purchase price allocation based on an independent valuation. We invested US$5 million and contributed patents and licensed intellectual property (IP) to the venture. The patents and the IP had no carrying value; however, on formation of the arrangement, they were recorded at fair value to reflect the contributions of the other parties in the joint venture. This value was US$171 million ( US$141 million after tax). Disposals On 1 June 2018 , we disposed of our entire 75% interest in the Winchester South coal development project in Queensland, Australia to Whitehaven Coal Limited for US$200 million . This comprised US$150 million cash which was received in 2018 and recognised within 'net cash generated from operating activities' within the cash flow statement and an unconditional cash payment of US$50 million due in June 2019. A gain on disposal of US$195 million was recognised within 'profit relating to interests in undeveloped projects' in the income statement. The deferred payment was received on 3 June 2019 and included within 'net cash generated from operating activities' within the cash flow statement. Disposals announced but not completed as at 30 June 2018 On 10 January 2018, we received a binding offer from Liberty House to acquire the Dunkerque aluminium smelter in northern France for US$500 million , subject to final adjustments. The transaction completed on 14 December 2018 and we received net cash proceeds of US$385 million . Acquisitions and disposals continued On 26 February 2018, Rio Tinto received a binding offer from Hydro of US$345 million , subject to final adjustments, to acquire Rio Tinto's ISAL smelter in Iceland, its 53.3% share in the Aluchemie anode plant in the Netherlands and its 50% share in the Aluminium fluoride plant in Sweden. At 30 June 2019, following the withdrawal in 2018 of the offer by Hydro to acquire these assets, they no longer meet the accounting criteria to be classified as assets held for sale. On 20 March 2018, we entered into a binding agreement with Glencore for the sale of our entire interest in the Hail Creek coal mine ( 82% ) and the Valeria coal development project ( 71.2% ) in Queensland, Australia, for US$1.7 billion . The sale completed on 1 August 2018 . On 27 March 2018, we entered into a binding agreement with a consortium comprising private equity manager EMR Capital (EMR) and PT Adaro Energy Tbk (Adaro), an Indonesian listed coal company, for the sale of our entire 80.0% interest in the Kestrel underground coal mine in Queensland, Australia, for US$2.25 billion . In the first half of 2018, we received non-refundable deposits of US$338 million in respect of this sale. The sale completed on 1 August 2018 . Except for ISAL, all transactions were completed in the second half of 2018. At 30 June 2018, our interests in these assets were classified as held for sale. |
Prima facie tax reconciliation
Prima facie tax reconciliation | 6 Months Ended |
Jun. 30, 2019 | |
Major components of tax expense (income) [abstract] | |
Prima facie tax reconciliation | Prima facie tax reconciliation Six months Six months Profit before taxation 5,186 6,732 Deduct: share of profit after tax of equity accounted units (208 ) (326 ) Parent companies' and subsidiaries' profit before tax 4,978 6,406 Prima facie tax payable at UK rate of 19 per cent (2018: 19 per cent) 946 1,217 Higher rate of tax on Australian underlying earnings 710 553 Impact of items excluded in arriving at underlying earnings (a) : – Impairment charges (b) 462 (2 ) – Net gains on consolidation and disposal of interests in businesses — (3 ) – Exchange and gains/losses on certain derivatives (7 ) 20 – Tax charge relating to expected divestments (c) — 472 – Reversal of inventory provision at Oyu Tolgoi 5 — Other tax rates applicable outside the UK and Australia on underlying earnings (19 ) (55 ) Amounts under/(over) provided in prior years 92 (71 ) Other items 66 102 Total taxation charge (d) 2,255 2,233 (a) The impact for each item includes the effect of tax rates applicable outside the UK. (b) The tax impact of impairment includes the write down of deferred tax in respect of prior year tax losses in Mongolia and recognition of deferred tax on impaired assets. Refer to the impairment charges note on pages F-11 and F-12. (c) Capital gains tax in respect of the Australian coal disposals became chargeable upon signing of the sales agreements during the period to 30 June 2018 . The amount excluded from underlying earnings related to tax on the gains on the disposal of Hail Creek and Kestrel which were recognised in the second half of 2018; amounts relating to Winchester South and Valeria were included within underlying earnings, since they were undeveloped properties. (d) This tax reconciliation relates to the Group's parent companies, subsidiaries and joint operations, and excludes equity accounted units. The Group's share of profit of equity accounted units is net of tax charges of US$118 million ( 30 June 2018 : US$185 million ). |
Consolidated net (debt)_cash (N
Consolidated net (debt)/cash (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Consolidated Net Debt [Abstract] | |
Consolidated net debt | Consolidated net (debt)/cash Financing liabilities (b) Other assets Borrowings excluding overdrafts (a) Lease Liabilities Debt-related derivatives (included in Other financial assets/liabilities) Cash/ overdrafts (b) Other Investments (c) Net (debt)/cash Period ended 30 June 2019 US$m US$m US$m US$m US$m US$m Analysis of changes in consolidated net debt Opening balance (12,707 ) (44 ) (288 ) 10,772 2,522 255 Adjustment for transition to new accounting standards (d) — (1,248 ) — — — (1,248 ) Foreign exchange adjustment 5 (4 ) (7 ) (34 ) — (40 ) Cash movements excluding exchange movements (43 ) 136 — (3,867 ) 29 (3,745 ) Other non-cash movements (e) (217 ) (39 ) 162 (13 ) 30 (77 ) Closing balance (12,962 ) (1,199 ) (133 ) 6,858 2,581 (4,855 ) (a) Borrowings excluding overdrafts (including lease liabilities) of US$14,161 million at 30 June 2019 (31 December 2018: US$12,751 million ) differ from total borrowings and other financial liabilities of US$15,324 million ( 31 December 2018 : US$13,920 million ) on the balance sheet as they exclude overdrafts of US$3 million ( 31 December 2018 : US$1 million ), other current financial liabilities of US$901 million ( 31 December 2018 : US$761 million ) and other non-current financial liabilities of US$259 million ( 31 December 2018 : US$407 million ). (b) The opening balance at 1 January 2019 included bank overdrafts of US$1 million which are classified as financial liabilities on the balance sheet. At 30 June 2019 there were US$3 million overdrafts. Other non-cash movements represents the elimination of cash movements during the period in respect of assets held for sale which are included in the cash flow statement. (c) Other investments comprise US$2,581 million ( 31 December 2018 : US$2,522 million ) of highly liquid financial assets held in managed investment funds classified as held at fair value through profit or loss. (d) The impact of transition to new accounting standards on 1 January 2019 is discussed on pages F-26 to F-30. (e) Other movements in lease liabilities include the net impact of additions, modifications and terminations during the period. |
Financial instruments disclosur
Financial instruments disclosures (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments disclosures | Financial instruments disclosures Except where stated, the information given below relates to the financial instruments of the parent companies and their subsidiaries and joint operations, and excludes those of equity accounted units. Fair values disclosure 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 30 June 2019 and 31 December 2018 are shown in the following table. The fair values of the Group's cash 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. 30 June 2019 (a) 31 December 2018 Carrying Fair Carrying Fair Short term borrowings (842 ) (846 ) (312 ) (312 ) Medium-term and long-term borrowings (12,123 ) (13,864 ) (12,440 ) (13,554 ) (a) The carrying value and fair value at 30 June 2019 excludes lease liabilities. This reflects the amendments made to IFRS 7 upon implementation of IFRS 16. Borrowings with a carrying value of US$7.7 billion (31 December 2018: US$7.5 billion ) relate to listed bonds. These have a fair value of US$9.0 billion (31 December 2018: US$8.3 billion ) calculated using level 1 observable market price inputs. Borrowings with a carrying value of US$4.2 billion (31 December 2018: US$4.2 billion ) relate to Oyu Tolgoi project finance and have a fair value of US$4.7 billion (31 December 2018: US$4.6 billion ). The fair value of these borrowings has been calculated using level 3 valuation inputs including a market yield, the variability of which is considered a reasonable indicator of fair value movements on amounts outstanding under the project finance facility, over the pre-completion period. Post-completion, the fair value has been estimated with reference to the annual interest rate on each tranche of the facility, and consideration of factors that could indicate a change in the credit assessment of Oyu Tolgoi LLC as a counterparty to project finance. These considerations include in-country risk relating to the Oyu Tolgoi project, and the assumed date of transition from pre-completion to post-completion. The remaining borrowings have a fair value measured by discounting estimated cash flows with an applicable market quoted yield and are categorised as level 2 in the fair value hierarchy. Fair values disclosure of financial instruments continued Valuation hierarchy of financial instruments carried at fair value on a recurring basis The table below shows the financial instruments carried at fair value by valuation method in accordance with IFRS 9 at 30 June 2019 : Total Level 1 (a)(i) US$m Level 2 (b)(i) US$m Level 3 (c)(i) US$m Held at amortised cost Assets Cash and cash equivalents (d) 6,861 4,196 — — 2,665 Investments in equity shares and funds 136 102 — 34 — Other investments, including loans (e) 2,841 2,603 — 219 19 Trade and other receivables (f) 3,052 16 1,189 — 1,847 12,890 6,917 1,189 253 4,531 Derivatives (net) Forward contracts: designated as hedges (g) 11 — — 11 — Forward contracts and option contracts, not designated as hedges (g) 416 — 38 378 — Derivatives related to net debt (h) (134 ) — (134 ) — — Liabilities Trade and other payables (5,207 ) — (54 ) — (5,153 ) 7,976 6,917 1,039 642 (622 ) The table below shows the financial instruments carried at fair value by valuation method in accordance with IFRS 9 at 31 December 2018 : Total Level 1 (a)(i) US$m Level 2 (b)(i) US$m Level 3 (c)(i) Held at amortised cost Assets Cash and cash equivalents (d) 10,773 7,994 — — 2,779 Investments in equity shares and funds 130 92 — 38 — Other investments, including loans (e) 2,782 2,544 — 232 6 Trade and other receivables (f) 3,007 20 972 — 2,015 16,692 10,650 972 270 4,800 Derivatives (net) Forward contracts and option contracts: designated as hedges (g) 8 — — 8 — Forward contracts and option contracts, not designated as hedges (g) 334 — (25 ) 359 — Derivatives related to net debt (h) (288 ) — (288 ) — — Liabilities Trade and other financial payables (5,552 ) — (39 ) — (5,513 ) 11,194 10,650 620 637 (713 ) Fair values disclosure of financial instruments continued (a) Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. This category includes listed investments in equity shares and funds. (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. (c) Valuation is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). (d) Cash and cash equivalents include money market funds which are treated as fair value through profit or loss (‘FVPL’) under IFRS 9 with the fair value movements going into finance income. (e) 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. (f) Trade receivables include provisionally priced receivables. Revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts. Changes between the provisional price and the final price are recorded separately within revenue. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2019 , US$1,065 million ( 31 December 2018 : US$889 million ) of provisionally priced receivables were recognised. (g) Level 3 financial instruments primarily consist of electricity purchase contracts linked to the LME and Mid West premium prices with terms expiring between 2025 and 2030 ( 31 December 2018 : 2025 and 2030). These contracts are measured using discounted cash flows and option model valuation techniques and have a net fair value of US$384 million at 30 June 2019 ( 31 December 2018 : US$338 million ). (h) Interest rate and currency interest rate swaps are valued using applicable market quoted swap yield curves adjusted for relevant basis and credit default spreads. Currency interest rate swap valuations also use market quoted foreign exchange rates. A discounted cash flow approach is applied to the cash flows derived from the inputs to determine fair value. (i) There were no material transfers between Level 1 and Level 2 or between Level 2 and Level 3 for the six months to 30 June 2019 or the year to 31 December 2018 . Fair values disclosure of financial instruments continued Level 3 Financial instruments The table below shows the summary of changes in the fair value of the Group's Level 3 financial assets and financial liabilities for the six months to 30 June 2019 and the year ended 31 December 2018 . Level 3 Financial assets and liabilities 30 June 2019 US$m Opening balance 637 Currency translation adjustments 2 Total realised gains included in: – net operating costs 8 Total unrealised gains included in: – net operating costs 17 Total unrealised losses transferred into other comprehensive income (10 ) Additions 2 Disposals/maturity of financial instruments (14 ) Closing balance 642 Total gains included in the income statement for assets and liabilities held at end of period 11 Sensitivity analysis in respect of level 3 financial instruments Forward contracts and options whose fair value is determined using unobservable inputs are calculated using appropriate discounted cash flow and option model valuation techniques. The most significant unobservable input relates to the aluminium price. After using the 10 year LME forward curve, prices are then flat lined and increased by projected inflation beyond the curve up to the date of expiry of each contract. The range of unobservable aluminium market prices are US$2,473 per metric tonne in 2029 to US$2,556 per metric tonne in 2030. A 10 per cent increase in the unobservable pricing assumption would result in a US$17 million ( 31 December 2018 : US$22 million ) decrease in carrying value. A 10 per cent decrease would result in a US$2 million ( 31 December 2018 : US$14 million ) increase in carrying value. The Group continues to hold royalty assets from the sale of its coal assets in prior periods. The value is determined using level 3 unobservable inputs. The main unobservable input is the long-term coal price used over the life of the royalty assets. A 15 per cent increase in the coal forward price would result in a US$195 million increase in the carrying value (31 December 2018: US$181 million ). A 15 per cent decrease would result in a US$39 million decrease in the carrying value (31 December 2018: US$95 million ). |
Events after the balance sheet
Events after the balance sheet date | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events after the balance sheet date | Events after the balance sheet date On 16 July 2019 , we announced the completion of the sale of our entire 68.62% stake in Rössing Uranium to China National Uranium Corporation Limited. Rössing Uranium was treated as an asset held for sale at 30 June 2019. Refer to 'Disposals announced but not completed as at 30 June 2019' within the Acquisitions and disposals note for further detail. |
Other disclosures - (Notes)
Other disclosures - (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Other Disclosures [Abstract] | |
Other disclosures | Other disclosures Capital commitments at 30 June 2019 Capital commitments, excluding the Group’s share of joint venture capital commitments, were US$3,230 million ( 31 December 2018 : US$2,283 million ). Capital commitments include open purchase orders for managed operations and expenditure on major projects authorised to date by the Rio Tinto Investment Committee for non-managed operations. On a legally enforceable basis capital commitments would be approximately US$0.5 billion ( 31 December 2018 : US$0.4 billion ) as many of the contracts relating to the Group’s projects have various cancellation clauses. The Group’s share of joint venture capital commitments was US$127 million ( 31 December 2018 : US$116 million ). Contingent liabilities (subsidiaries and joint operations) Contingent liabilities, indemnities and other performance guarantees were US$166 million at 30 June 2019 ( 31 December 2018 : US$317 million ). Indemnities and other performance guarantees represent the potential outflow of funds from the Group for the satisfaction of obligations including those under contractual arrangements (for example undertakings related to supplier agreements) not provided for in the balance sheet, where the likelihood of the guarantees or indemnities being called is assessed as possible rather than probable or remote. There were no material contingent liabilities arising in relation to the Group’s joint ventures and associates. In October 2017, Rio Tinto announced that it had been notified by the US Securities and Exchange Commission (SEC) that the SEC had filed a complaint in relation to Rio Tinto’s disclosures and timing of the impairment of Rio Tinto Coal Mozambique (RTCM). The impairment was reflected in Rio Tinto’s 2012 year-end accounts. The SEC alleges that Rio Tinto, a former chief executive, Tom Albanese, and a former chief financial officer, Guy Elliott, committed violations of the anti-fraud, reporting, books and records and internal control provisions of the federal securities law by not accurately disclosing the value of RTCM and not impairing it when Rio Tinto published its 2011 year-end accounts in February 2012 or its 2012 interim results in August 2012. In October 2017, an associated US class action was commenced on behalf of securities holders. In March 2018, the Australian Securities and Investments Commission (ASIC) filed civil proceedings in the NSW District Registry of the Federal Court of Australia against Rio Tinto Limited, Albanese, and Elliott. On 1 May 2018, ASIC expanded its proceedings. ASIC alleges that Rio Tinto committed violations of the disclosure, accounting, and misleading or deceptive conduct provisions of the Corporations Act by making misleading or deceptive statements related to RTCM in its 2011 Annual report and its 2012 interim financial statements, not complying with accounting standards in respect of its 2012 interim financial statements, and not disclosing an impairment of RTCM in its 2012 interim financial statements. ASIC further alleges Albanese and Elliott breached their duties as directors or officers, and failed to take all reasonable steps to comply with relevant accounting requirements. Rio Tinto believes that the SEC case and the ASIC proceedings are unwarranted and that, when all the facts are considered by the courts, the claims will be rejected. Rio Tinto will defend the allegations vigorously. In addition, Rio Tinto continues to co-operate fully with relevant authorities in connection with their investigations in relation to contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011 on the Simandou project in Guinea. In August 2018, the court dismissed a related US class action commenced on behalf of securities holders. The outcomes of these matters remain uncertain, but they could ultimately expose the Group to material financial cost. The board is giving these matters its full and proper attention and a dedicated board committee continues to monitor the progress of these matters. The Group continues to monitor developments in relation to EU State Aid investigations including the EU Commission’s State Aid investigation into the UK’s Controlled Foreign Company (CFC) tax regime. On 25 April 2019, the European Commission released its decision in relation to the group company finance exemption in the UK’s CFC rules finding that the exemption constitutes unlawful state aid if the exempted profits arise in connection with UK activity. The UK Government disagrees with the findings and has appealed against the decision to the European Court. Having analysed the latest decision, the Group does not currently consider that any provision is required in relation to EU State Aid. Related party matters Purchases and sales relate largely to amounts charged by equity accounted units for toll processing of alumina and purchases of bauxite and aluminium. Details of the Group's principal equity accounted units are given in the Exhibit 15.2 in 2018 Form 20-F. Income statement items Six months Six months Purchases from equity accounted units (529 ) (551 ) Sales to equity accounted units 141 310 Cash flow statement items Dividends from equity accounted units 318 418 Net funding of equity accounted units (12 ) (3 ) Balance sheet items 30 June 2019 31 December 2018 Investments in equity accounted units (a) 4,216 4,299 Loans to equity accounted units 40 38 Trade and other receivables: amounts due from equity accounted units 267 278 Trade and other payables: amounts due to equity accounted units (223 ) (223 ) (a) Investments in equity accounted units include quasi equity loans. Rio Tinto plc has provided a number of guarantees in relation to various pension funds. Subject to certain conditions, Rio Tinto plc would pay any contributions due from Group companies participating in these funds in the event that the companies fail to meet their contribution requirements. |
Basis of Preparation (Notes)
Basis of Preparation (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Basis Of Presentation [Abstract] | |
Basis of preparation | Basis of preparation The unaudited condensed consolidated interim financial statements included in this interim report have been prepared in accordance with International Accounting Standard ('IAS') 34 'Interim financial reporting' as adopted by the European Union ('EU'), the Disclosure Guidance and Transparency Rules sourcebook ('DTR') of the Financial Conduct Authority ('FCA') applicable to interim financial reporting and an Order under section 340 of the Australian Corporations Act 2001 issued by the Australian Securities and Investments Commission on 14 December 2015. These unaudited condensed consolidated interim financial statements represent a ‘condensed set of financial statements’ as referred to in the DTR issued by the FCA. Accordingly, they do not include all of the information required for a full annual financial report and are to be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2018 and any public announcements made by the Group during the interim reporting period. In addition, the impact of newly adopted accounting standards (IFRS 16 ‘Leases' and IFRIC 23 'Uncertainty over Income Tax Treatments') which became applicable for the current reporting period and required the Group to change its accounting policies are disclosed on pages F-26 to F-30. The 2018 annual financial statements were prepared on a going concern basis in accordance with the Companies Act 2006 applicable to companies reporting under International Financial Reporting Standards and in accordance with applicable UK law, applicable Australian law as amended by the Australian Securities and Investments Commission Order dated 14 December 2015 and Article 4 of the European Union IAS regulation and in accordance with: – International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB) and interpretations issued from time to time by the IFRS Interpretations Committee (IFRS IC) both as adopted by the European Union and which were mandatory for EU reporting as at 31 December 2018; and – International Financial Reporting Standards as issued by the IASB and interpretations issued from time to time by the IFRS IC which were mandatory as at 31 December 2018. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of significant accounting policies [Abstract] | |
Accounting policies | Accounting policies The unaudited condensed consolidated interim financial statements have been drawn up on the basis of accounting policies, methods of computation and presentation consistent with those applied in the financial statements for the year ended 31 December 2018 , and in the corresponding interim period, except for changes in accounting requirements set out below, all of which were effective as at 1 January 2019 without restatement of prior years. This basis of accounting is referred to as ‘IFRS’ in this report. The Group adopted IFRS 16 ‘Leases’, IFRIC 23 ‘Uncertainty over Income Tax Treatments' and a number of other minor amendments to IFRS on 1 January 2019. All of these pronouncements have been endorsed by the European Union (‘EU’). Information on the transition impact of these new pronouncements is included in the ‘Change in Accounting Policies’ section below. The Group has not early adopted any amendments, standards or interpretations that have been issued but are not yet effective. Critical accounting judgments have been updated to reflect the additional judgments made following adoption of IFRIC 23 at 1 January 2019 as follows: Areas of judgment in the application of accounting policies: – Uncertain tax positions - technical interpretation of tax law and evaluation of outcomes in the determination of whether multiple or binary scenarios are the appropriate basis for provision measurement. Other than as a result of implementing IFRIC 23, the critical accounting judgements and key sources of estimation uncertainty for the half year are the same as those disclosed in the Group's consolidated financial statements for the year ended 31 December 2018 . The financial information by business unit and the geographic analysis of sales by destination provided on pages 11 to 14, F-9 and F-10 of this press release respectively, satisfy the disclosure requirements of IFRS 8 ‘Operating Segments’ for interim financial statements and also provide additional voluntary disclosure which the Group considers is useful to the users of the financial statements. International financial reporting standards mandatory beyond 2019 The Group disclosed information relating to standards and pronouncements mandatory beyond 2019 in the financial statements for the year ended 31 December 2018 , and continues to evaluate the impact of these pronouncements. Changes in accounting policies This note explains the impact of the adoption of IFRS 16 'Leases' and IFRIC 23 'Uncertainty over Income Tax Treatments' on the Group's financial statements and also discloses the new accounting policies applied from 1 January 2019, where these differ from those applied in prior periods. Prior period accounting policies are disclosed in note 1 to Exhibit 15.2 in 2018 Form 20-F. The adoption of other minor changes to IFRS applicable to 2019 did not have a significant impact on the Group's financial statements. The impact on Equity attributable to owners of Rio Tinto as at 1 January 2019 from the adoption of IFRS 16 and IFRIC 23 is as follows: US$m Equity attributable to owners of Rio Tinto at 31 December 2018 43,686 IFRS 16 net impact from recognising lease liabilities, right-of-use-assets and other items after tax (69 ) IFRIC 23 recognition of provisions for uncertain tax position on a weighted average basis (44 ) Restated equity attributable to owners of Rio Tinto as at 1 January 2019 43,573 IFRS 16 ‘Leases’ - Accounting policy applied from 1 January 2019 IFRS 16 'Leases' applies to the recognition, measurement, presentation and disclosure of leases. Certain leases are exempt from the standard, including leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources. The Group does not apply IFRS 16 to arrangements which fall within the scope of IAS 38 'Intangible Assets'. A significant proportion by value of the Group’s lease arrangements relate to dry bulk vessels and offices. Other leases include land and non-mining rights, warehouses, equipment and vehicles. The majority of lease terms are negotiated through the Group’s procurement function, although agreements contain a wide range of different terms and conditions. The Group recognises all lease liabilities and corresponding right of use assets, with the exception of short-term (12 months or fewer) and low value leases, on the balance sheet. Lease liabilities are recorded at the present value of: fixed payments; variable lease payments that depend on an index or rate; amounts payable under residual value guarantees; and extension options expected to be exercised. Where a lease contains an extension option which the Group can exercise without negotiation, lease payments for the extension period are included in the liability if the Group is reasonably certain that it will exercise the option. Variable lease payments not dependent on an index or rate are excluded from the calculation of lease liabilities. Payments are discounted at the incremental borrowing rate of the lessee, unless the interest rate implicit in the lease can be readily determined. For lease agreements relating to vessels and properties, non-lease components are excluded from the projection of future lease payments and recorded separately within operating costs on a straight-line basis. The right of use asset, resulting from a lease arrangement, at initial recognition reflects the lease liability, initial direct costs and any lease payments made before the commencement date of the lease less any lease incentives and, where applicable, provision for dismantling and restoration. The Group recognises depreciation of right of use assets and interest on lease liabilities in the income statement over the lease term. Repayments of lease liabilities are separated into a principal portion (presented within financing activities) and interest portion (which the Group presents in operating activities) in the cash flow statement. Payments made before the commencement date are included within financing activities unless they in substance represent investing cash flows, for example where pre-commencement cash flows are significant relative to aggregate cash flows of the leasing arrangement. Right of use assets are included in the review for impairment of property, plant and equipment and intangible assets with finite lives, if there is an indication that the carrying amount of the cash generating unit may not be recoverable. Impact of transition to IFRS 16 ‘Leases’ The Group implemented the standard as at 1 January 2019. For contracts in place at this date, the Group continued to apply its existing definition of leases under the previous standards, IAS 17 ‘Leases’ and IFRIC 4 ‘Determining Whether an Arrangement Contains a Lease’ (‘grandfathering’), instead of reassessing whether existing contracts were or contained a lease at the date of application of the new standard. For transition, as permitted by IFRS 16, the Group applied the modified retrospective approach to existing operating leases which are capitalised under the new standard (i.e. retrospectively, with the cumulative effect recognised at the date of initial application as an adjustment to the opening balance of retained earnings with no restatement of comparative information in the financial statements). For existing finance leases, the carrying amounts before transition represented the 31 December 2018 values assigned to the right of use asset and lease liability. The Group made the following additional choices, as permitted by IFRS 16, for existing operating leases: • not to bring leases with12 months or fewer remaining to run as at 1 January 2019 (including reasonably certain options to extend) on balance sheet. Costs for these items will continue to be expensed directly to the income statement. • for all leases, the lease liability was measured at 1 January 2019 as the present value of any future lease payments discounted using the appropriate incremental borrowing rate. The carrying value of the right of use asset for property, vessels and certain other leases was generally measured as if the lease had been in place since commencement date. For all other leases the right of use asset was measured as equal to the lease liability and adjusted for any accruals or prepayments already on the balance sheet. The Group also excluded any initial direct costs (e.g. legal fees) from the measurement of the right of use assets at transition. • an impairment review was required on right of use assets at initial application of the standard. The Group elected to rely on its onerous lease assessments under IAS 37 'Provisions, Contingent Liabilities and Contingent Assets', as at 31 December 2018 as permitted by IFRS 16. Any existing onerous lease provisions were adjusted against the right of use asset carrying value upon transition. • to apply the use of hindsight when reviewing the lease arrangements for determination of the measurement or term of the lease under the retrospective option. • to separate non-lease components from lease components for vessels and properties for the first time as part of the transition adjustment. • in some cases, to apply a single discount rate to a portfolio of leases with reasonably similar characteristics. Impact of transition to IFRS 16 ‘Leases’ continued The impact of transition to IFRS 16 on the Group’s 1 January 2019 balance sheet is an increase in lease liabilities (debt) of US$1,248 million , an increase in right of use assets/net investments in leases of US$1,067 million , net adjustments to other assets and liabilities of US$110 million , and a charge of US$69 million to retained earnings. The weighted average incremental borrowing rate applied to the Group’s lease liabilities recognised on the balance sheet at 1 January 2019 is 4.7% . The most significant differences between the Group’s undiscounted non-cancellable operating lease commitments of US $1,717 million at 31 December 2018 and lease liabilities upon transition of US $1,292 million are set out below: US$m Operating lease commitments reported as at 31 December 2018 under IAS 17 1,717 Exclude/deduct Leases expiring in 12 months or fewer (130 ) Committed leases not commenced (undiscounted) (133 ) Components excluded from the lease liability (undiscounted) (169 ) Include/add Cost of reasonably certain extensions (undiscounted) 324 Other 103 Sub total 1,712 Effect of discounting on payments included in the calculation of the lease liability (excluding finance lease balances) (420 ) Lease liability opening balance reported as at 1 January 2019 under IFRS 16 1,292 The Group’s activities as a lessor are not material and hence there is not a significant impact on the financial statements on adoption of IFRS 16. As the Group has some property sub lease arrangements, these were reassessed for classification purposes as operating or finance leases at transition. Implementation, presentation and impact of IFRS 16 information for the six months ended 30 June 2019 The following amounts were recorded in the unaudited condensed interim financial statements for the six months ended 30 June 2019: US$m Included within Income statement Depreciation and amortisation (114 ) Net operating costs Cash flow statement Lease principal payments (136 ) Cash flows from financing activities Lease interest paid (24 ) Net interest paid Balance sheet Right of use assets: - carrying value 961 Property, plant and equipment Lease liabilities: - current (260 ) Borrowings and other financial liabilities - non-current (939 ) The Group has implemented a lease accounting system which is used for the majority of the Group’s leases. A separate contract-linked system is in use for the Group’s shipping leases. Contracts signed, or amended, after 1 January 2019 are assessed against the lease identification criteria under IFRS 16. This may increase or decrease the number of contracts which are deemed to be leases compared with assessments of similar arrangements under IAS 17. Practical application of IFRS 16 continues to develop and the Group continues to monitor this. EBITDA, as disclosed in the Financial Information by Business Unit on page 11 increased as the operating lease cost previously charged against EBITDA under IAS 17 has been replaced under IFRS 16 with charges for depreciation and interest which are excluded from EBITDA (although included in earnings). Short-term, low value and variable leasing costs and non-lease components associated with vessels and property continue to be charged against EBITDA. Operating cash flows increased under IFRS 16 as the element of cash paid attributable to the repayment of principal is included in financing cash flow. The net increase/decrease in cash and cash equivalents remains unchanged . IFRIC 23 ‘Uncertainty over Income Tax Treatments’ - Accounting policy applied from 1 January 2019 IFRIC 23 changed the method of calculating provisions for uncertain tax positions. The Group previously recognised provisions based on the most likely amount of the liability, if any, for each separate uncertain tax position. The interpretation requires a probability weighted average approach to be taken in situations where there is a wide range of possible outcomes. For tax issues with a binary outcome, the most likely amount method remains in use. The Group has implemented the interpretation retrospectively, with the cumulative impact of application recognised at 1 January, 2019 without restatement of comparatives. The effect of this was an increase to provision for uncertain tax positions of US $44 million . Upon implementation of IFRIC 23, the Group changed its accounting policy for current tax (refer to note 1(m) to Exhibit 15.2 in 2018 Form 20-F) to reflect adoption of the probability weighted approach: • Current tax is the tax expected to be payable on the taxable income for the year calculated using rates that have been enacted or substantively enacted at the balance sheet date. It includes adjustments for tax expected to be payable or recoverable in respect of previous periods. Where the amount of tax payable or recoverable is uncertain, Rio Tinto establishes provisions based on either: the Group’s judgment of the most likely amount of the liability or recovery; or, when there is a wide range of possible outcomes, a probability weighted average approach. Implementation of the interpretation did not result in any changes to the Group’s accounting policy for deferred tax. |
Accounting Policies - (Policies
Accounting Policies - (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of significant accounting policies [Abstract] | |
Leases | IFRS 16 ‘Leases’ - Accounting policy applied from 1 January 2019 IFRS 16 'Leases' applies to the recognition, measurement, presentation and disclosure of leases. Certain leases are exempt from the standard, including leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources. The Group does not apply IFRS 16 to arrangements which fall within the scope of IAS 38 'Intangible Assets'. A significant proportion by value of the Group’s lease arrangements relate to dry bulk vessels and offices. Other leases include land and non-mining rights, warehouses, equipment and vehicles. The majority of lease terms are negotiated through the Group’s procurement function, although agreements contain a wide range of different terms and conditions. The Group recognises all lease liabilities and corresponding right of use assets, with the exception of short-term (12 months or fewer) and low value leases, on the balance sheet. Lease liabilities are recorded at the present value of: fixed payments; variable lease payments that depend on an index or rate; amounts payable under residual value guarantees; and extension options expected to be exercised. Where a lease contains an extension option which the Group can exercise without negotiation, lease payments for the extension period are included in the liability if the Group is reasonably certain that it will exercise the option. Variable lease payments not dependent on an index or rate are excluded from the calculation of lease liabilities. Payments are discounted at the incremental borrowing rate of the lessee, unless the interest rate implicit in the lease can be readily determined. For lease agreements relating to vessels and properties, non-lease components are excluded from the projection of future lease payments and recorded separately within operating costs on a straight-line basis. The right of use asset, resulting from a lease arrangement, at initial recognition reflects the lease liability, initial direct costs and any lease payments made before the commencement date of the lease less any lease incentives and, where applicable, provision for dismantling and restoration. The Group recognises depreciation of right of use assets and interest on lease liabilities in the income statement over the lease term. Repayments of lease liabilities are separated into a principal portion (presented within financing activities) and interest portion (which the Group presents in operating activities) in the cash flow statement. Payments made before the commencement date are included within financing activities unless they in substance represent investing cash flows, for example where pre-commencement cash flows are significant relative to aggregate cash flows of the leasing arrangement. Right of use assets are included in the review for impairment of property, plant and equipment and intangible assets with finite lives, if there is an indication that the carrying amount of the cash generating unit may not be recoverable. |
Uncertainty over Income Tax Treatments' | IFRIC 23 ‘Uncertainty over Income Tax Treatments’ - Accounting policy applied from 1 January 2019 IFRIC 23 changed the method of calculating provisions for uncertain tax positions. The Group previously recognised provisions based on the most likely amount of the liability, if any, for each separate uncertain tax position. The interpretation requires a probability weighted average approach to be taken in situations where there is a wide range of possible outcomes. For tax issues with a binary outcome, the most likely amount method remains in use. |
Geographical analysis (by des_2
Geographical analysis (by destination) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of geographical areas [abstract] | |
Disclosure Of Sales Revenue By Destination Explanatory | Consolidated sales revenue by destination (a) Six months Six months to 30 June 2018 % (b) Six months Six months to 30 June 2018 US$m (b) China 49.8 % 44.9 % 10,321 8,946 Asia (excluding China and Japan) 11.2 % 11.6 % 2,331 2,316 United States of America 13.7 % 15.4 % 2,834 3,058 Japan 8.7 % 10.1 % 1,793 2,019 Europe (excluding UK) 7.1 % 8.8 % 1,466 1,745 Canada 4.0 % 3.4 % 821 671 Australia 1.6 % 1.8 % 325 353 UK 0.5 % 0.6 % 115 117 Other 3.4 % 3.4 % 716 689 Consolidated sales revenue 100.0 % 100.0 % 20,722 19,914 The financial information by business unit and the geographic analysis of sales by destination satisfy the disclosure requirements of IFRS 8 ‘Operating Segments’ for interim financial statements and also provide additional voluntary disclosure which the Group considers is useful to the users of the financial statements. (a) Consolidated sales revenue by geographical destination is based on the ultimate country of destination of the product, if known. If the eventual destination of the product sold through traders is not known then revenue is allocated to the location of the product at the time when the risks and rewards of ownership are transferred. Rio Tinto is domiciled in both the UK and Australia. (b) The 30 June 2018 comparatives have been amended to correct the allocation of sales revenue by destination. This resulted in a decrease in sales to the United States of America and the UK by US$59 million and US$56 million respectively with a corresponding increase in sales to Europe (excluding UK) of US$45 million , Canada of US$37 million and Other countries of US$33 million . |
Consolidated sales revenue by product | Product analysis (by revenue type) Six months to 30 June 2019 Six months to 30 June 2018 Consolidated sales revenue by product Revenue from contracts with customers Other revenue (a) US$m Consolidated sales revenue Revenue from contracts with customers (b) Other revenue (a) US$m Consolidated sales revenue Iron ore (b) 11,571 543 12,114 9,633 (61 ) 9,572 Aluminium 5,057 (29 ) 5,028 6,027 38 6,065 Copper 1,061 11 1,072 1,077 5 1,082 Coal — — — 835 5 840 Industrial minerals (b) 1,117 (6 ) 1,111 1,064 — 1,064 Gold 393 — 393 228 — 228 Diamonds 271 — 271 323 — 323 Other (b) 732 1 733 740 — 740 Consolidated sales revenue 20,202 520 20,722 19,927 (13 ) 19,914 Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales 1,087 1,293 Gross sales revenue 21,809 21,207 Product analysis (by revenue type) continued (a) Certain of the Group’s products may be provisionally priced at the date revenue is recognised. The change in value of the provisionally priced receivables is based on relevant forward market prices and is included in ‘Other revenue’ above. (b) The 30 June 2018 comparatives have been amended to correct the allocation of sales revenue by product. The most significant impacts are an increase in Other products revenues of US$39 million and a decrease in Iron ore revenues of US$36 million . |
Impairment charges - (Tables)
Impairment charges - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of impairment of assets [Abstract] | |
Impairment | Impairment charges Non-controlling Net Net Pre-tax Taxation interest amount amount HY 2019 HY 2019 HY 2019 HY 2019 HY 2018 US$m US$m US$m US$m US$m Aluminium - ISAL Smelter (109 ) 23 — (86 ) (98 ) Copper & Diamonds - Oyu Tolgoi (2,240 ) (39 ) 1,506 (773 ) — Total impairment charge (2,349 ) (16 ) 1,506 (859 ) (98 ) |
Prima facie tax reconciliation
Prima facie tax reconciliation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Major components of tax expense (income) [abstract] | |
Summary of prima facie tax reconciliation | Six months Six months Profit before taxation 5,186 6,732 Deduct: share of profit after tax of equity accounted units (208 ) (326 ) Parent companies' and subsidiaries' profit before tax 4,978 6,406 Prima facie tax payable at UK rate of 19 per cent (2018: 19 per cent) 946 1,217 Higher rate of tax on Australian underlying earnings 710 553 Impact of items excluded in arriving at underlying earnings (a) : – Impairment charges (b) 462 (2 ) – Net gains on consolidation and disposal of interests in businesses — (3 ) – Exchange and gains/losses on certain derivatives (7 ) 20 – Tax charge relating to expected divestments (c) — 472 – Reversal of inventory provision at Oyu Tolgoi 5 — Other tax rates applicable outside the UK and Australia on underlying earnings (19 ) (55 ) Amounts under/(over) provided in prior years 92 (71 ) Other items 66 102 Total taxation charge (d) 2,255 2,233 (a) The impact for each item includes the effect of tax rates applicable outside the UK. (b) The tax impact of impairment includes the write down of deferred tax in respect of prior year tax losses in Mongolia and recognition of deferred tax on impaired assets. Refer to the impairment charges note on pages F-11 and F-12. (c) Capital gains tax in respect of the Australian coal disposals became chargeable upon signing of the sales agreements during the period to 30 June 2018 . The amount excluded from underlying earnings related to tax on the gains on the disposal of Hail Creek and Kestrel which were recognised in the second half of 2018; amounts relating to Winchester South and Valeria were included within underlying earnings, since they were undeveloped properties. (d) This tax reconciliation relates to the Group's parent companies, subsidiaries and joint operations, and excludes equity accounted units. The Group's share of profit of equity accounted units is net of tax charges of US$118 million ( 30 June 2018 : US$185 million ). |
Consolidated net (debt)_cash (T
Consolidated net (debt)/cash (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Of Consolidated Net Debt [Abstract] | |
Analysis of changes in consolidated net debt | Financing liabilities (b) Other assets Borrowings excluding overdrafts (a) Lease Liabilities Debt-related derivatives (included in Other financial assets/liabilities) Cash/ overdrafts (b) Other Investments (c) Net (debt)/cash Period ended 30 June 2019 US$m US$m US$m US$m US$m US$m Analysis of changes in consolidated net debt Opening balance (12,707 ) (44 ) (288 ) 10,772 2,522 255 Adjustment for transition to new accounting standards (d) — (1,248 ) — — — (1,248 ) Foreign exchange adjustment 5 (4 ) (7 ) (34 ) — (40 ) Cash movements excluding exchange movements (43 ) 136 — (3,867 ) 29 (3,745 ) Other non-cash movements (e) (217 ) (39 ) 162 (13 ) 30 (77 ) Closing balance (12,962 ) (1,199 ) (133 ) 6,858 2,581 (4,855 ) (a) Borrowings excluding overdrafts (including lease liabilities) of US$14,161 million at 30 June 2019 (31 December 2018: US$12,751 million ) differ from total borrowings and other financial liabilities of US$15,324 million ( 31 December 2018 : US$13,920 million ) on the balance sheet as they exclude overdrafts of US$3 million ( 31 December 2018 : US$1 million ), other current financial liabilities of US$901 million ( 31 December 2018 : US$761 million ) and other non-current financial liabilities of US$259 million ( 31 December 2018 : US$407 million ). (b) The opening balance at 1 January 2019 included bank overdrafts of US$1 million which are classified as financial liabilities on the balance sheet. At 30 June 2019 there were US$3 million overdrafts. Other non-cash movements represents the elimination of cash movements during the period in respect of assets held for sale which are included in the cash flow statement. (c) Other investments comprise US$2,581 million ( 31 December 2018 : US$2,522 million ) of highly liquid financial assets held in managed investment funds classified as held at fair value through profit or loss. (d) The impact of transition to new accounting standards on 1 January 2019 is discussed on pages F-26 to F-30. |
Financial instruments disclos_2
Financial instruments disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of detailed information about financial instruments [abstract] | |
Carrying Amounts And Fair Values | The carrying amounts and fair values of all of the Group’s financial instruments which are not carried at an amount which approximates their fair value at 30 June 2019 and 31 December 2018 are shown in the following table. The fair values of the Group's cash and loans to equity accounted units approximate their carrying values as a result of their short maturity or because they carry floating rates of interest. 30 June 2019 (a) 31 December 2018 Carrying Fair Carrying Fair Short term borrowings (842 ) (846 ) (312 ) (312 ) Medium-term and long-term borrowings (12,123 ) (13,864 ) (12,440 ) (13,554 ) The impact on Equity attributable to owners of Rio Tinto as at 1 January 2019 from the adoption of IFRS 16 and IFRIC 23 is as follows: US$m Equity attributable to owners of Rio Tinto at 31 December 2018 43,686 IFRS 16 net impact from recognising lease liabilities, right-of-use-assets and other items after tax (69 ) IFRIC 23 recognition of provisions for uncertain tax position on a weighted average basis (44 ) Restated equity attributable to owners of Rio Tinto as at 1 January 2019 43,573 |
Summary of fair value of financial instruments | The table below shows the financial instruments carried at fair value by valuation method in accordance with IFRS 9 at 30 June 2019 : Total Level 1 (a)(i) US$m Level 2 (b)(i) US$m Level 3 (c)(i) US$m Held at amortised cost Assets Cash and cash equivalents (d) 6,861 4,196 — — 2,665 Investments in equity shares and funds 136 102 — 34 — Other investments, including loans (e) 2,841 2,603 — 219 19 Trade and other receivables (f) 3,052 16 1,189 — 1,847 12,890 6,917 1,189 253 4,531 Derivatives (net) Forward contracts: designated as hedges (g) 11 — — 11 — Forward contracts and option contracts, not designated as hedges (g) 416 — 38 378 — Derivatives related to net debt (h) (134 ) — (134 ) — — Liabilities Trade and other payables (5,207 ) — (54 ) — (5,153 ) 7,976 6,917 1,039 642 (622 ) The table below shows the financial instruments carried at fair value by valuation method in accordance with IFRS 9 at 31 December 2018 : Total Level 1 (a)(i) US$m Level 2 (b)(i) US$m Level 3 (c)(i) Held at amortised cost Assets Cash and cash equivalents (d) 10,773 7,994 — — 2,779 Investments in equity shares and funds 130 92 — 38 — Other investments, including loans (e) 2,782 2,544 — 232 6 Trade and other receivables (f) 3,007 20 972 — 2,015 16,692 10,650 972 270 4,800 Derivatives (net) Forward contracts and option contracts: designated as hedges (g) 8 — — 8 — Forward contracts and option contracts, not designated as hedges (g) 334 — (25 ) 359 — Derivatives related to net debt (h) (288 ) — (288 ) — — Liabilities Trade and other financial payables (5,552 ) — (39 ) — (5,513 ) 11,194 10,650 620 637 (713 ) Fair values disclosure of financial instruments continued (a) Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. This category includes listed investments in equity shares and funds. (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. (c) Valuation is based on inputs for the asset or liability that are not based on observable market data (unobservable inputs). (d) Cash and cash equivalents include money market funds which are treated as fair value through profit or loss (‘FVPL’) under IFRS 9 with the fair value movements going into finance income. (e) 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. (f) Trade receivables include provisionally priced receivables. Revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts. Changes between the provisional price and the final price are recorded separately within revenue. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2019 , US$1,065 million ( 31 December 2018 : US$889 million ) of provisionally priced receivables were recognised. (g) Level 3 financial instruments primarily consist of electricity purchase contracts linked to the LME and Mid West premium prices with terms expiring between 2025 and 2030 ( 31 December 2018 : 2025 and 2030). These contracts are measured using discounted cash flows and option model valuation techniques and have a net fair value of US$384 million at 30 June 2019 ( 31 December 2018 : US$338 million ). (h) Interest rate and currency interest rate swaps are valued using applicable market quoted swap yield curves adjusted for relevant basis and credit default spreads. Currency interest rate swap valuations also use market quoted foreign exchange rates. A discounted cash flow approach is applied to the cash flows derived from the inputs to determine fair value. (i) There were no material transfers between Level 1 and Level 2 or between Level 2 and Level 3 for the six months to 30 June 2019 or the year to 31 December 2018 . |
Summary of changes in the fair value of Level 3 financial assets and financial liabilities | The table below shows the summary of changes in the fair value of the Group's Level 3 financial assets and financial liabilities for the six months to 30 June 2019 and the year ended 31 December 2018 . Level 3 Financial assets and liabilities 30 June 2019 US$m Opening balance 637 Currency translation adjustments 2 Total realised gains included in: – net operating costs 8 Total unrealised gains included in: – net operating costs 17 Total unrealised losses transferred into other comprehensive income (10 ) Additions 2 Disposals/maturity of financial instruments (14 ) Closing balance 642 Total gains included in the income statement for assets and liabilities held at end of period 11 |
Other disclosures - (Tables)
Other disclosures - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Disclosures [Abstract] | |
Summary of transactions and balances with equity accounted units | Income statement items Six months Six months Purchases from equity accounted units (529 ) (551 ) Sales to equity accounted units 141 310 Cash flow statement items Dividends from equity accounted units 318 418 Net funding of equity accounted units (12 ) (3 ) Balance sheet items 30 June 2019 31 December 2018 Investments in equity accounted units (a) 4,216 4,299 Loans to equity accounted units 40 38 Trade and other receivables: amounts due from equity accounted units 267 278 Trade and other payables: amounts due to equity accounted units (223 ) (223 ) (a) Investments in equity accounted units include quasi equity loans. |
Accounting Policies - (Tables)
Accounting Policies - (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of significant accounting policies [Abstract] | |
Schedule of impact on Equity attributable to owners of Rio Tinto on the adoption of IFRS 16 and IFRIC 23 | 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 30 June 2019 and 31 December 2018 are shown in the following table. The fair values of the Group's cash 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. 30 June 2019 (a) 31 December 2018 Carrying Fair Carrying Fair Short term borrowings (842 ) (846 ) (312 ) (312 ) Medium-term and long-term borrowings (12,123 ) (13,864 ) (12,440 ) (13,554 ) The impact on Equity attributable to owners of Rio Tinto as at 1 January 2019 from the adoption of IFRS 16 and IFRIC 23 is as follows: US$m Equity attributable to owners of Rio Tinto at 31 December 2018 43,686 IFRS 16 net impact from recognising lease liabilities, right-of-use-assets and other items after tax (69 ) IFRIC 23 recognition of provisions for uncertain tax position on a weighted average basis (44 ) Restated equity attributable to owners of Rio Tinto as at 1 January 2019 43,573 |
Leases | US$m Operating lease commitments reported as at 31 December 2018 under IAS 17 1,717 Exclude/deduct Leases expiring in 12 months or fewer (130 ) Committed leases not commenced (undiscounted) (133 ) Components excluded from the lease liability (undiscounted) (169 ) Include/add Cost of reasonably certain extensions (undiscounted) 324 Other 103 Sub total 1,712 Effect of discounting on payments included in the calculation of the lease liability (excluding finance lease balances) (420 ) Lease liability opening balance reported as at 1 January 2019 under IFRS 16 1,292 |
IFRS16 Impact | US$m Included within Income statement Depreciation and amortisation (114 ) Net operating costs Cash flow statement Lease principal payments (136 ) Cash flows from financing activities Lease interest paid (24 ) Net interest paid Balance sheet Right of use assets: - carrying value 961 Property, plant and equipment Lease liabilities: - current (260 ) Borrowings and other financial liabilities - non-current (939 ) |
Schedule of financial informati
Schedule of financial information by business unit (Detail) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | ||||
EBITDA | $ 5,484 | $ 6,784 | ||
Depreciation and amortisation in subsidiaries excluding capitalised depreciation | (2,059) | (2,019) | ||
Impairment charges | (2,349) | (123) | ||
Net earnings | 4,130 | 4,380 | ||
Consolidated sales revenue | 20,722 | 19,914 | ||
Add back: Proceeds from disposal of property, plant and equipment | 17 | 18 | ||
Total capital expenditure per cash flow statement | 2,391 | 2,363 | ||
Less: Net (debt)/cash | (4,855) | $ 255 | ||
Equity attributable to owners of Rio Tinto | 39,565 | $ 43,573 | 43,686 | |
Reportable segments | ||||
Disclosure of operating segments [line items] | ||||
Capital expenditure | 2,374 | 2,345 | ||
Depreciation and amortisation | 2,096 | 2,049 | ||
Operating Assets | 44,420 | 43,431 | ||
Reportable segments | Iron ore(b) | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 7,552 | 5,685 | ||
Net earnings | 4,506 | 3,231 | ||
Consolidated sales revenue | 11,208 | 9,293 | ||
Capital expenditure | 669 | 488 | ||
Depreciation and amortisation | 826 | 879 | ||
Operating Assets | 14,579 | 14,653 | ||
Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 1,127 | 1,831 | ||
Net earnings | 315 | 871 | ||
Consolidated sales revenue | 5,100 | 6,148 | ||
Capital expenditure | 711 | 885 | ||
Depreciation and amortisation | 597 | 558 | ||
Operating Assets | 16,978 | 16,446 | ||
Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 1,213 | 1,360 | ||
Net earnings | 348 | 450 | ||
Consolidated sales revenue | 2,959 | 3,032 | ||
Capital expenditure | 1,002 | 969 | ||
Depreciation and amortisation | 642 | 679 | ||
Operating Assets | 11,279 | 11,389 | ||
Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 954 | 1,008 | ||
Net earnings | 341 | 464 | ||
Consolidated sales revenue | 2,539 | 2,741 | ||
Capital expenditure | 188 | 211 | ||
Depreciation and amortisation | 214 | 251 | ||
Operating Assets | 4,424 | 3,696 | ||
Reportable segments | Other operations | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (88) | (27) | ||
Net earnings | (80) | (67) | ||
Consolidated sales revenue | 10 | 9 | ||
Capital expenditure | 2 | 8 | ||
Depreciation and amortisation | 80 | 17 | ||
Operating Assets | (178) | (442) | ||
Intersegment transactions | ||||
Disclosure of operating segments [line items] | ||||
Consolidated sales revenue | (7) | (6) | ||
Operating Assets | 152 | 129 | ||
Product group total | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 10,758 | 9,857 | ||
Net earnings | 5,430 | 4,949 | ||
Consolidated sales revenue | 21,809 | 21,217 | ||
Capital expenditure | 2,572 | 2,561 | ||
Depreciation and amortisation | 2,359 | 2,384 | ||
Operating Assets | 47,082 | 45,742 | ||
Central pension costs, share-based payments and insurance | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 77 | (83) | ||
Net earnings | 77 | (54) | ||
Restructuring, project and one-off costs | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (175) | (177) | ||
Net earnings | (119) | (39) | ||
Central costs | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (272) | (299) | ||
Net earnings | (258) | (236) | ||
Capital expenditure | 25 | 23 | ||
Depreciation and amortisation | 36 | 19 | ||
Operating Assets | (3,031) | (2,880) | ||
Exploration and evaluation | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (138) | (100) | ||
Net earnings | (109) | (86) | ||
Net interest | ||||
Disclosure of operating segments [line items] | ||||
Net earnings | (89) | (118) | ||
Underlying EBITDA/earnings | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 10,250 | 9,198 | ||
Net earnings | 4,932 | 4,416 | ||
Items Excluded From Underlying Earnings [Member] | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 117 | 325 | ||
Net earnings | (802) | (36) | ||
Consolidated sales revenue | 0 | (10) | ||
EBITDA/net earnings | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 10,367 | 9,523 | ||
Net earnings | 4,130 | 4,380 | ||
Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales | ||||
Disclosure of operating segments [line items] | ||||
Adjustment for equity accounted units revenue | (1,087) | (1,293) | ||
Depreciation and amortisation in equity accounted units | (299) | (354) | ||
Taxation and finance items in equity accounted units | (176) | (243) | ||
Capital expenditure | (223) | (239) | ||
Depreciation and amortisation | (299) | (354) | ||
Pilbara | Reportable segments | Iron ore(b) | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 7,528 | 5,626 | ||
Net earnings | 4,548 | 3,202 | ||
Consolidated sales revenue | 11,039 | 9,113 | ||
Capital expenditure | 663 | 485 | ||
Depreciation and amortisation | 817 | 869 | ||
Operating Assets | $ 14,427 | 14,486 | ||
Rio Tinto Kennecott | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 10000.00% | |||
EBITDA | $ 425 | 343 | ||
Net earnings | 171 | 107 | ||
Consolidated sales revenue | 892 | 851 | ||
Capital expenditure | 179 | 158 | ||
Depreciation and amortisation | 216 | 205 | ||
Operating Assets | $ 1,910 | 1,864 | ||
Escondida | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 3000.00% | |||
EBITDA | $ 568 | 790 | ||
Net earnings | 213 | 316 | ||
Consolidated sales revenue | 1,061 | 1,271 | ||
Capital expenditure | 147 | 159 | ||
Depreciation and amortisation | 237 | 287 | ||
Operating Assets | 2,951 | 3,057 | ||
Rio Tinto Coal Australia | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 0 | 560 | ||
Net earnings | 0 | 342 | ||
Consolidated sales revenue | 0 | 837 | ||
Capital expenditure | 0 | 42 | ||
Depreciation and amortisation | 0 | 34 | ||
Operating Assets | $ 0 | (837) | ||
Iron Ore Company of Canada | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 5870.00% | |||
EBITDA | $ 526 | 122 | ||
Net earnings | 171 | 16 | ||
Consolidated sales revenue | 1,075 | 495 | ||
Capital expenditure | 73 | 59 | ||
Depreciation and amortisation | 84 | 79 | ||
Operating Assets | 827 | 975 | ||
Rio Tinto Iron & Titanium | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 339 | 229 | ||
Net earnings | 144 | 60 | ||
Consolidated sales revenue | 983 | 857 | ||
Capital expenditure | 95 | 86 | ||
Depreciation and amortisation | 99 | 107 | ||
Operating Assets | $ 3,489 | 3,390 | ||
Rio Tinto Borates | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 10000.00% | |||
EBITDA | $ 98 | 107 | ||
Net earnings | 54 | 60 | ||
Consolidated sales revenue | 304 | 324 | ||
Capital expenditure | 17 | 21 | ||
Depreciation and amortisation | 30 | 29 | ||
Operating Assets | $ 525 | 518 | ||
Dampier Salt | Reportable segments | Iron ore(b) | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 6840.00% | |||
Dampier Salt | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 6840.00% | |||
EBITDA | $ 38 | 29 | ||
Net earnings | 14 | 9 | ||
Consolidated sales revenue | 128 | 123 | ||
Capital expenditure | 6 | 3 | ||
Depreciation and amortisation | 9 | 10 | ||
Operating Assets | 150 | 165 | ||
Simandou iron ore project | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (6) | (6) | ||
Net earnings | (3) | (3) | ||
Operating Assets | 21 | 15 | ||
Grasberg joint venture | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 0 | (5) | ||
Net earnings | 0 | (13) | ||
Capital expenditure | 0 | 20 | ||
Depreciation and amortisation | 0 | 20 | ||
Operating Assets | 0 | 0 | ||
Oyu Tolgoi and Turquoise Hill | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 306 | 202 | ||
Net earnings | 52 | 38 | ||
Consolidated sales revenue | 735 | 587 | ||
Capital expenditure | 651 | 593 | ||
Depreciation and amortisation | 109 | 114 | ||
Operating Assets | 5,954 | 6,072 | ||
Evaluation projects/other | Reportable segments | Iron ore(b) | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (14) | 30 | ||
Net earnings | (56) | 20 | ||
Consolidated sales revenue | 41 | 57 | ||
Operating Assets | 2 | 2 | ||
Evaluation projects/other | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 60 | 85 | ||
Net earnings | 41 | 75 | ||
Consolidated sales revenue | 45 | 51 | ||
Evaluation projects/other | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (155) | (102) | ||
Net earnings | (83) | (53) | ||
Capital expenditure | 2 | 1 | ||
Depreciation and amortisation | 3 | 3 | ||
Operating Assets | 152 | 129 | ||
Evaluation projects/other | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (42) | (18) | ||
Net earnings | (38) | (17) | ||
Consolidated sales revenue | 31 | 27 | ||
Operating Assets | 42 | 41 | ||
Bauxite | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 472 | 452 | ||
Net earnings | 231 | 246 | ||
Consolidated sales revenue | 1,182 | 1,207 | ||
Capital expenditure | 242 | 480 | ||
Depreciation and amortisation | 112 | 78 | ||
Operating Assets | 2,681 | 2,494 | ||
Alumina | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 461 | 435 | ||
Net earnings | 247 | 222 | ||
Consolidated sales revenue | 1,455 | 1,605 | ||
Capital expenditure | 114 | 79 | ||
Depreciation and amortisation | 96 | 97 | ||
Operating Assets | 2,481 | 2,721 | ||
Bauxite & Alumina | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 931 | 884 | ||
Net earnings | 477 | 466 | ||
Consolidated sales revenue | 2,212 | 2,365 | ||
Capital expenditure | 356 | 559 | ||
Depreciation and amortisation | 208 | 175 | ||
Operating Assets | 5,141 | 5,195 | ||
Primary Metal | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 306 | 917 | ||
Net earnings | (14) | 437 | ||
Consolidated sales revenue | 2,490 | 3,328 | ||
Capital expenditure | 303 | 272 | ||
Depreciation and amortisation | 312 | 311 | ||
Operating Assets | 9,890 | 9,306 | ||
Pacific Aluminium | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (54) | 151 | ||
Net earnings | (96) | 55 | ||
Consolidated sales revenue | 1,112 | 1,265 | ||
Capital expenditure | 52 | 54 | ||
Depreciation and amortisation | 77 | 72 | ||
Operating Assets | 1,148 | 1,156 | ||
Integrated operations | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 1,211 | 1,912 | ||
Net earnings | 387 | 925 | ||
Consolidated sales revenue | 4,553 | 5,508 | ||
Other product group Items | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (144) | (166) | ||
Net earnings | (113) | (129) | ||
Consolidated sales revenue | 502 | 589 | ||
Product group operations | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 1,067 | 1,746 | ||
Net earnings | 274 | 796 | ||
Consolidated sales revenue | 5,055 | 6,097 | ||
Product group operations | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 1,368 | 1,462 | ||
Net earnings | 431 | 503 | ||
Consolidated sales revenue | 2,959 | 3,032 | ||
Capital expenditure | 1,000 | 968 | ||
Depreciation and amortisation | 639 | 676 | ||
Operating Assets | 11,127 | 11,260 | ||
Product group operations | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 1,002 | 1,032 | ||
Net earnings | 382 | 484 | ||
Consolidated sales revenue | 2,508 | 2,714 | ||
Capital expenditure | 188 | 211 | ||
Depreciation and amortisation | 214 | 251 | ||
Operating Assets | 4,361 | 3,640 | ||
Diamonds | ||||
Disclosure of operating segments [line items] | ||||
Consolidated sales revenue | 271 | 323 | ||
Diamonds | Reportable segments | Copper & Diamonds | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 69 | 132 | ||
Net earnings | (5) | 55 | ||
Consolidated sales revenue | 271 | 323 | ||
Capital expenditure | 23 | 38 | ||
Depreciation and amortisation | 77 | 50 | ||
Operating Assets | 312 | 267 | ||
Uranium | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 39 | 14 | ||
Net earnings | 13 | 6 | ||
Consolidated sales revenue | 146 | 201 | ||
Capital expenditure | 3 | 3 | ||
Depreciation and amortisation | 1 | 2 | ||
Operating Assets | (480) | (406) | ||
Intrasegment | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | (2) | (3) | ||
Net earnings | (1) | (2) | ||
Consolidated sales revenue | (425) | (447) | ||
Operating Assets | (21) | (20) | ||
Inter-segment and other | Reportable segments | Aluminium | ||||
Disclosure of operating segments [line items] | ||||
EBITDA | 28 | (40) | ||
Net earnings | 20 | (33) | ||
Consolidated sales revenue | (1,261) | (1,450) | ||
Capital expenditure | 0 | |||
Depreciation and amortisation | 0 | $ 0 | ||
Operating Assets | 799 | 789 | ||
Net assets of disposal groups held for sale | ||||
Disclosure of operating segments [line items] | ||||
Operating Assets | $ 217 | $ 440 |
Notes to financial informatio_2
Notes to financial information by business unit (Detail) - USD ($) $ in Millions | Aug. 01, 2018 | Jun. 30, 2019 | Aug. 01, 2018 | Dec. 31, 2018 |
Disclosure of operating segments [line items] | ||||
Percentage of capital expenditure in subsidiaries (as a percent) | 100.00% | |||
Reportable segments | ||||
Disclosure of operating segments [line items] | ||||
Operating Assets | $ 44,420 | $ 43,431 | ||
Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
Operating Assets | $ 4,424 | 3,696 | ||
Hamersley Iron Pty Limited | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 100.00% | |||
Argyle Diamonds Limited | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 100.00% | |||
Rio Tinto Coal Australia | Reportable segments | Energy & Minerals | ||||
Disclosure of operating segments [line items] | ||||
Operating Assets | $ 0 | (837) | ||
Rio Tinto Fer et Titane Inc. | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 100.00% | |||
QIT Madagascar Minerals SA | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 80.00% | |||
Richards Bay Minerals | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 74.00% | |||
Energy Resources of Australia Limited | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 68.40% | |||
Rossing Uranium Limited | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 68.60% | |||
Simfer Jersey Limited | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 53.00% | |||
Simfer S.A. | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 85.00% | |||
Non-controlling interest (as a percent) | 45.05% | |||
Gove Alumina Refinery and Rio Tinto Marine | ||||
Disclosure of operating segments [line items] | ||||
Rio Tinto interest (as a percent) | 100.00% | |||
Hope Downs Joint Venture | ||||
Disclosure of operating segments [line items] | ||||
Proportion of ownership interest in joint venture (as a percent) | 50.00% | |||
Robe river iron associates | ||||
Disclosure of operating segments [line items] | ||||
Proportion of ownership interest in joint venture (as a percent) | 65.00% | |||
Proportion of net beneficial interest (as a percent) | 53.00% | |||
Robe river iron associates | 30 Percent | ||||
Disclosure of operating segments [line items] | ||||
Net beneficial interest held percentage (as a percent) | 30.00% | |||
Net beneficial interest held percentage as owned subsidiary (as a percent) | 60.00% | |||
Robe river iron associates | 35 Percent | ||||
Disclosure of operating segments [line items] | ||||
Net beneficial interest held percentage (as a percent) | 35.00% | |||
Net beneficial interest held percentage as owned subsidiary (as a percent) | 100.00% | |||
Freeport Mc Mo Ran Inc | ||||
Disclosure of operating segments [line items] | ||||
Percentage of material mined (as a percent) | 40.00% | |||
Diavik joint venture | ||||
Disclosure of operating segments [line items] | ||||
Proportion of ownership interest in joint venture (as a percent) | 60.00% | |||
Hail Creek Coal Mine | ||||
Disclosure of operating segments [line items] | ||||
Ownership interest in joint venture disposed (as a percent) | 82.00% | |||
Hail Creek Coal Mine | ||||
Disclosure of operating segments [line items] | ||||
Ownership interest in joint venture disposed (as a percent) | 82.00% | |||
Valeria | ||||
Disclosure of operating segments [line items] | ||||
Ownership interest in joint venture disposed (as a percent) | 71.20% | |||
Turquoise hill resources Ltd | Oyu Tolgoi LLC | ||||
Disclosure of operating segments [line items] | ||||
Percentage of share class held in subsidiaries (as a percent) | 50.80% | |||
Oyo Tolgoi Copper-Gold Mine | Turquoise hill resources Ltd | Oyu Tolgoi LLC | ||||
Disclosure of operating segments [line items] | ||||
Percentage of share class held in subsidiaries (as a percent) | 66.00% | |||
Australia | ||||
Disclosure of operating segments [line items] | ||||
Operating Assets | $ (837) | |||
Australia | Valeria | ||||
Disclosure of operating segments [line items] | ||||
Proportion of ownership amount in joint venture disposed | $ 1,700 | |||
Australia | Kestrel | ||||
Disclosure of operating segments [line items] | ||||
Proportion of ownership amount in joint venture disposed | $ 2,250 | |||
2018 Disposals | Kestrel Underground Coal Mine | ||||
Disclosure of operating segments [line items] | ||||
Ownership interest in joint venture disposed (as a percent) | 80.00% |
Geographical analysis (by des_3
Geographical analysis (by destination) Disclosure Of Sales Revenue By Destination Explanatory (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of geographical areas [line items] | ||
Consolidated sales revenue | $ 20,722 | $ 19,914 |
China | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 49.80% | 44.90% |
Consolidated sales revenue | $ 10,321 | $ 8,946 |
Asia (excluding China and Japan) | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 11.20% | 11.60% |
Consolidated sales revenue | $ 2,331 | $ 2,316 |
United States of America | ||
Disclosure of geographical areas [line items] | ||
Increase (Decrease) In Revenue | $ (59) | |
Sales revenue by destination (as a percent) | 13.70% | 15.40% |
Consolidated sales revenue | $ 2,834 | $ 3,058 |
Japan | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 8.70% | 10.10% |
Consolidated sales revenue | $ 1,793 | $ 2,019 |
Europe (excluding UK) | ||
Disclosure of geographical areas [line items] | ||
Increase (Decrease) In Revenue | $ 45 | |
Sales revenue by destination (as a percent) | 7.10% | 8.80% |
Consolidated sales revenue | $ 1,466 | $ 1,745 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Increase (Decrease) In Revenue | $ 37 | |
Sales revenue by destination (as a percent) | 4.00% | 3.40% |
Consolidated sales revenue | $ 821 | $ 671 |
Australia | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 1.60% | 1.80% |
Consolidated sales revenue | $ 325 | $ 353 |
UK | ||
Disclosure of geographical areas [line items] | ||
Increase (Decrease) In Revenue | $ (56) | |
Sales revenue by destination (as a percent) | 0.50% | 0.60% |
Consolidated sales revenue | $ 115 | $ 117 |
Other | ||
Disclosure of geographical areas [line items] | ||
Increase (Decrease) In Revenue | $ 33 | |
Sales revenue by destination (as a percent) | 3.40% | 3.40% |
Consolidated sales revenue | $ 716 | $ 689 |
Consolidated sales revenue | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 100.00% | 100.00% |
Consolidated sales revenue | $ 20,722 | $ 19,914 |
Geographical analysis (by des_4
Geographical analysis (by destination) Consolidated sales revenue by product (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | $ 20,202 | $ 19,927 |
Other revenue | 520 | (13) |
Consolidated sales revenue | 20,722 | 19,914 |
Iron ore(b) | ||
Disclosure of products and services [line items] | ||
Increase (Decrease) In Revenue | (36) | |
Revenue from contracts with customers | 11,571 | 9,633 |
Other revenue | 543 | (61) |
Consolidated sales revenue | 12,114 | 9,572 |
Aluminium | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 5,057 | 6,027 |
Other revenue | (29) | 38 |
Consolidated sales revenue | 5,028 | 6,065 |
Copper | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 1,061 | 1,077 |
Other revenue | 11 | 5 |
Consolidated sales revenue | 1,072 | 1,082 |
Coal | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 0 | 835 |
Other revenue | 0 | 5 |
Consolidated sales revenue | 0 | 840 |
Industrial minerals | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 1,117 | 1,064 |
Other revenue | (6) | 0 |
Consolidated sales revenue | 1,111 | 1,064 |
Gold | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 393 | 228 |
Other revenue | 0 | 0 |
Consolidated sales revenue | 393 | 228 |
Diamonds | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 271 | 323 |
Other revenue | 0 | 0 |
Consolidated sales revenue | 271 | 323 |
Other | ||
Disclosure of products and services [line items] | ||
Increase (Decrease) In Revenue | 39 | |
Revenue from contracts with customers | 732 | 740 |
Other revenue | 1 | 0 |
Consolidated sales revenue | 733 | 740 |
Share of equity accounted unit sales and intra-subsidiary/equity accounted unit sales | ||
Disclosure of products and services [line items] | ||
Consolidated sales revenue | 1,087 | 1,293 |
Gross sales revenue | ||
Disclosure of products and services [line items] | ||
Consolidated sales revenue | $ 21,809 | $ 21,207 |
Impairment charges - Narrative
Impairment charges - Narrative (Details) - USD ($) $ in Millions | Jul. 16, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ 859 | $ 98 | ||
Property development and project management expense | $ 5,300 | |||
Aluchemie Anode Plant | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Interest Sold (as a percent) | 53.30% | |||
Sales Price Agreed For Disposal Of Subsidiary | $ 345 | |||
Impairment loss | $ (123) | |||
Aluminium Fluoride Plant | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Interest Sold (as a percent) | 50.00% | |||
Discount rate applied (as a percent) | 6.90% | |||
ISAL Smelter, Aluchemie Anode Plant and Aluminium Fluoride Plant | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Recoverable amount | $ 302 | |||
Alufluor | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Recoverable amount | $ 46 | |||
Oyo Tolgoi Copper-Gold Mine | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
NCI share of Impairment | 66.00% | |||
Rio share of impairment | 34.00% | |||
Rio Share Of Impairment, Value | $ 800 | |||
Tax Impact of impairment | 320 | |||
Tax Losses Expected To Expire | $ 359 | |||
Discount rate applied (as a percent) | 8.30% | 8.00% | ||
Recoverable amount | $ 8,300 | |||
Discount rate assumption (as a percent) | 1.00% | |||
Recoverable amount assumption | $ 1,500 | |||
10% decease in recoverability | 2,200 | |||
10% Increase in recoverability | 2,100 | |||
Aluminium | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 86 | $ 98 | ||
Pre-tax | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 2,349 | |||
Pre-tax | Oyo Tolgoi Copper-Gold Mine | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | (2,200) | |||
Pre-tax | Aluminium | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 109 | |||
Post Tax | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | 16 | |||
Post Tax | Oyo Tolgoi Copper-Gold Mine | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | (2,300) | |||
Post Tax | Aluminium | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Impairment loss | $ (23) | |||
Minimum | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Increase in project expenses | 1,200 | |||
Maximum | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Increase in project expenses | $ 1,900 |
Impairment charges - Impairment
Impairment charges - Impairment (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | $ (859) | $ (98) |
Aluminium | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (86) | (98) |
Copper & Diamonds | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (773) | $ 0 |
Non-controlling interests | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | 1,506 | |
Non-controlling interests | Aluminium | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | 0 | |
Non-controlling interests | Copper & Diamonds | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | 1,506 | |
Pre-tax | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (2,349) | |
Pre-tax | Aluminium | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (109) | |
Pre-tax | Copper & Diamonds | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (2,240) | |
Taxation | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (16) | |
Taxation | Aluminium | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | 23 | |
Taxation | Copper & Diamonds | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | (39) | |
Oyo Tolgoi Copper-Gold Mine | Pre-tax | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | 2,200 | |
Oyo Tolgoi Copper-Gold Mine | Taxation | ||
Disclosure of impairment loss recognised or reversed for cash-generating unit [line items] | ||
Impairment loss | $ 2,300 |
Acquisitions and disposals - Ad
Acquisitions and disposals - Additional information (Detail) - USD ($) $ in Millions | Jul. 16, 2019 | Nov. 26, 2018 | Jun. 01, 2018 | May 10, 2018 | Mar. 27, 2018 | Mar. 20, 2018 | Feb. 26, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 03, 2019 | Mar. 27, 2019 | Dec. 14, 2018 | Jan. 10, 2018 | |
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Disposals of subsidiaries, joint ventures and associates | $ 46 | $ 402 | ||||||||||||
Impairment loss recognised in profit or loss | [1] | $ 2,349 | 123 | |||||||||||
Dunkerque Aluminium Smelter | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Business acquisition binding offer amount | $ 500 | |||||||||||||
Payment from disposal of business | $ 385 | |||||||||||||
Simfer Jersey Limited | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Rio Tinto interest (as a percent) | 53.00% | |||||||||||||
Simfer S.A. | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Rio Tinto interest (as a percent) | 85.00% | |||||||||||||
Non-controlling interest (as a percent) | 45.05% | |||||||||||||
Elysis | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Cash investment in joint venture | $ 5 | |||||||||||||
Copyrights, patents and other industrial property rights, service and operating rights | 171 | |||||||||||||
Copyrights, Patents And Other Industrial Property Rights, Service And Operating Rights After Tax | $ 141 | |||||||||||||
Whitehaven Coal Limited | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Disposal amount | $ (200) | |||||||||||||
Disposals of subsidiaries, joint ventures and associates | $ 150 | |||||||||||||
Unconditional cash payment receivable from disposals | $ 50 | |||||||||||||
Percentage of ownership interest sold | 75.00% | |||||||||||||
Gains (losses) on disposals of property, plant and equipment | $ 195 | |||||||||||||
Hydro | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Business acquisition binding offer amount | $ 345 | |||||||||||||
Aluchemie | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Ownership interest in joint venture disposed (as a percent) | 53.30% | |||||||||||||
Aluminium Fluoride Plant | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Ownership interest in joint venture disposed (as a percent) | 50.00% | |||||||||||||
Hail Creek Coal Mine | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
cash received from working capital adjustments | $ 26 | |||||||||||||
Disposal amount | (20) | |||||||||||||
Business acquisition binding offer amount | $ 1,700 | |||||||||||||
Proportion of ownership interest in joint venture (as a percent) | 82.00% | |||||||||||||
Yancoal | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Disposal amount | 60 | |||||||||||||
Valeria Project | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Proportion of ownership interest in joint venture (as a percent) | 71.20% | |||||||||||||
Kestrel Underground Coal Mine | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Unconditional cash payment receivable from disposals | $ 338 | |||||||||||||
Business acquisition binding offer amount | $ 2,250 | |||||||||||||
Proportion of ownership interest in joint venture (as a percent) | 80.00% | |||||||||||||
China National | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Disposal amount | $ 6.5 | |||||||||||||
Contingent Payment | $ 100 | |||||||||||||
Ownership interest in joint venture disposed (as a percent) | 68.62% | |||||||||||||
Rossing Uranium Limited | ||||||||||||||
Disclosure Of Acquisitions And Disposals [Line Items] | ||||||||||||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | 130 | |||||||||||||
Unrealized loss on sale | $ 300 | |||||||||||||
[1] | Refer to Impairment charges note on pages F-11 and F-12. |
Prima facie tax reconciliatio_2
Prima facie tax reconciliation Summary of prima facie tax reconciliation (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Major components of tax expense (income) [abstract] | ||
Applicable tax rate | 19.00% | 19.00% |
Profit before taxation | $ 5,186 | $ 6,732 |
Deduct: share of profit after tax of equity accounted units | (208) | (326) |
Parent companies' and subsidiaries' profit before tax | 4,978 | 6,406 |
Prima facie tax payable at UK rate of 19 per cent (2018: 19 per cent) | 946 | 1,217 |
Higher rate of tax on Australian underlying earnings | 710 | 553 |
Impact of items excluded in arriving at underlying earnings: | ||
– Impairment charges(b) | 462 | (2) |
– Net gains on consolidation and disposal of interests in businesses | 0 | (3) |
– Exchange and gains/losses on certain derivatives | (7) | 20 |
Tax charge relating to expected divestments | 0 | 472 |
Write-down of previously recognised deferred tax assets in Mongolia | 5 | 0 |
Other tax rates applicable outside the UK and Australia on underlying earnings | (19) | (55) |
Amounts under/(over) provided in prior years | 92 | (71) |
Other items | 66 | 102 |
Total taxation charge | 2,255 | 2,233 |
Tax charges | $ 118 | $ 185 |
Consolidated net (debt)_cash A
Consolidated net (debt)/cash Analysis of changes in consolidated net debt (Detail) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | ||
Net (debt)/cash | ||||
Opening balance | $ 255 | |||
Foreign exchange adjustment | (40) | |||
Cash movements excluding exchange movements | (3,745) | |||
Other non-cash movements(e) | (77) | |||
Closing balance | (4,855) | |||
Financing liabilities | ||||
Adjustment for transition to new accounting standards | 1,248 | |||
Other assets | ||||
Borrowings excluding overdrafts | 14,161 | $ 12,751 | ||
Bank overdrafts repayable on demand (unsecured) | (3) | (1) | $ 0 | |
Other current non-financial liabilities | [1] | 2,003 | 1,073 | |
Other Investments | 2,581 | 2,522 | ||
Overdraft | ||||
Other assets | ||||
Bank overdrafts repayable on demand (unsecured) | 3 | 1 | ||
Borrowings (including finance leases) Excluding Overdraft | ||||
Financing liabilities | ||||
Opening balance | (12,707) | |||
Adjustment for transition to new accounting standards | 0 | |||
Foreign exchange adjustment | 5 | |||
Cash movements excluding exchange movements | (43) | |||
Other non-cash movements(e) | (217) | |||
Closing balance | (12,962) | |||
Other assets | ||||
Borrowings And Other Financial Liabilities | 15,324 | 13,920 | ||
Bank overdrafts repayable on demand (unsecured) | 3 | 1 | ||
Other current financial liabilities | 901 | 761 | ||
Other current non-financial liabilities | 259 | $ 407 | ||
Lease liabilities [member] | ||||
Financing liabilities | ||||
Opening balance | (44) | |||
Adjustment for transition to new accounting standards | 1,248 | |||
Foreign exchange adjustment | (4) | |||
Cash movements excluding exchange movements | 136 | |||
Other non-cash movements(e) | (39) | |||
Closing balance | (1,199) | |||
Debt-related derivatives (included in Other financial assets/liabilities) | ||||
Financing liabilities | ||||
Opening balance | (288) | |||
Adjustment for transition to new accounting standards | 0 | |||
Foreign exchange adjustment | (7) | |||
Cash movements excluding exchange movements | 0 | |||
Other non-cash movements(e) | 162 | |||
Closing balance | (133) | |||
Other Overdrafts | ||||
Financing liabilities | ||||
Adjustment for transition to new accounting standards | 0 | |||
Other assets | ||||
Opening balance | 10,772 | |||
Foreign exchange adjustment | (34) | |||
Cash movements excluding exchange movements | (3,867) | |||
Other non-cash movements(e) | (13) | |||
Closing balance | 6,858 | |||
Other Investments | ||||
Financing liabilities | ||||
Adjustment for transition to new accounting standards | 0 | |||
Other assets | ||||
Opening balance | 2,522 | |||
Foreign exchange adjustment | 0 | |||
Cash movements excluding exchange movements | 29 | |||
Other non-cash movements(e) | 30 | |||
Closing balance | $ 2,581 | |||
[1] | Refer to pages F-26 to F-30 for the impact of transition to new accounting standards; IFRS 16 'Leases' and IFRIC 23 'Uncertainty over Income Tax Treatments' on 1 January 2019 and as at 30 June 2019. |
Financial instruments disclos_3
Financial instruments disclosures Carrying Amounts And Fair Values (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Short term borrowings | $ (846) | $ (312) |
Medium-term and long-term borrowings | (13,864) | (13,554) |
Carrying Value | ||
Short term borrowings | (842) | (312) |
Medium-term and long-term borrowings | $ (12,123) | $ (12,440) |
Financial instruments disclos_4
Financial instruments disclosures Summary of fair value of financial instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 6,861 | $ 10,773 | $ 5,989 |
Provisionally Priced Receivables | 1,065 | 889 | |
Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 6,861 | 10,773 | |
Investments in equity shares and funds | 136 | 130 | |
Other investments, including loans | 2,841 | 2,782 | |
Trade and other receivables | 3,052 | 3,007 | |
Financial assets (excluding derivative assets) | 12,890 | 16,692 | |
Forward contracts: designated as hedges | 11 | 8 | |
Forward contracts and option contracts, not designated as hedges | 416 | 334 | |
Derivatives related to net debt | (134) | (288) | |
Trade and other payables | (5,207) | (5,552) | |
Financial Assets And Liabilities Net | 7,976 | 11,194 | |
Not held at fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 2,665 | 2,779 | |
Investments in equity shares and funds | 0 | ||
Other investments, including loans | 19 | 6 | |
Trade and other receivables | 1,847 | 2,015 | |
Financial assets (excluding derivative assets) | 4,531 | 4,800 | |
Trade and other payables | (5,153) | (5,513) | |
Financial Assets And Liabilities Net | (622) | (713) | |
Level 1 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 4,196 | 7,994 | |
Investments in equity shares and funds | 102 | 92 | |
Other investments, including loans | 2,603 | 2,544 | |
Trade and other receivables | 16 | 20 | |
Financial assets (excluding derivative assets) | 6,917 | 10,650 | |
Financial Assets And Liabilities Net | 6,917 | 10,650 | |
Level 2 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments in equity shares and funds | 0 | ||
Trade and other receivables | 1,189 | 972 | |
Financial assets (excluding derivative assets) | 1,189 | 972 | |
Forward contracts and option contracts, not designated as hedges | 38 | (25) | |
Derivatives related to net debt | (134) | (288) | |
Trade and other payables | (54) | (39) | |
Financial Assets And Liabilities Net | 1,039 | 620 | |
Level 3 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Investments in equity shares and funds | 34 | 38 | |
Other investments, including loans | 219 | 232 | |
Financial assets (excluding derivative assets) | 253 | 270 | |
Forward contracts: designated as hedges | 11 | 8 | |
Forward contracts and option contracts, not designated as hedges | 378 | 359 | |
Financial Assets And Liabilities Net | 642 | 637 | |
Aluminium Forward Contracts Embedded In Electricity Purchase Contracts | Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Longterm Embedded Derivatives At Fair Value | $ 384 | $ 338 |
Financial instruments disclos_5
Financial instruments disclosures Summary of changes in fair value of Level 3 financial assets and financial liabilities (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Disclosure of detailed information about financial instruments [line items] | |||
Currency translation adjustments | [1] | $ (269) | $ 2,304 |
Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Opening balance | 637 | ||
Currency translation adjustments | 2 | ||
– net operating costs | 8 | ||
– net operating costs | 17 | ||
Total unrealised losses transferred into other comprehensive income | (10) | ||
Additions | 2 | ||
Disposals/maturity of financial instruments | (14) | ||
Closing balance | 642 | ||
Total gains included in the income statement for assets and liabilities held at end of period | $ 11 | ||
[1] | US$31 million for the period ended 30 June 2019 (30 June 2018: loss of US$231 million) arising on Rio Tinto Limited’s share capital, which is recognised in the Group statement of changes in equity. Refer to Group statement of changes in equity on pages F-7 and F-8. |
Financial instruments disclos_6
Financial instruments disclosures Additional information (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | |||
Increase in coal carrying amount | $ 195,000,000 | $ 181,000,000 | |
Decrease in coal carrying amount | 39,000,000 | 95,000,000 | |
Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | 9,000,000,000 | 8,300,000,000 | |
Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | $ 4,700,000,000 | 4,600,000,000 | |
Change in London Metal Exchange (as a percent) | 10.00% | ||
Period of London metal exchange curve (in years) | P10Y | ||
Decrease in carrying value of forward contract due to long-term metal pricing assumptions | $ 17,000,000 | 22,000,000 | |
Increase in carrying value of forward contract due to long-term metal pricing assumptions | 2,000,000 | $ 14,000,000 | |
Bonds | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | 7,700,000,000 | 7,500,000,000 | |
Project Finance Drawn Down | |||
Disclosure of detailed information about financial instruments [line items] | |||
Borrowings | 4,200,000,000 | $ 4,200,000,000 | |
Minimum | |||
Disclosure of detailed information about financial instruments [line items] | |||
Aluminium Market Price | 2,473 | ||
Maximum | |||
Disclosure of detailed information about financial instruments [line items] | |||
Aluminium Market Price | $ 2,556 |
Events after the balance shee_2
Events after the balance sheet date - Narrative (Details) | Nov. 26, 2018 |
China National | |
Entity Information [Line Items] | |
Ownership interest in joint venture disposed (as a percent) | 68.62% |
Other disclosures - Additional
Other disclosures - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Disclosures [Line Items] | ||
Capital commitments | $ 3,230 | $ 2,283 |
Contractual capital commitments | 500 | 400 |
Contingent liabilities indemnities and other performance guarantees | 166 | 317 |
Payments Under Investigation | 10.5 | |
Joint ventures | ||
Other Disclosures [Line Items] | ||
Capital commitments | $ 127 | $ 116 |
Other disclosures - Summary of
Other disclosures - Summary of transactions and balances with equity accounted units (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Disclosures [Line Items] | |||
Dividends from equity accounted units | $ 318 | $ 418 | |
Investments in equity accounted units | 4,216 | $ 4,299 | |
Investment in equity accounted units | |||
Other Disclosures [Line Items] | |||
Purchases from equity accounted units | (529) | (551) | |
Sales to equity accounted units | 141 | 310 | |
Dividends from equity accounted units | 318 | 418 | |
Net funding of equity accounted units | (12) | $ (3) | |
Investments in equity accounted units | 4,216 | 4,299 | |
Loans to equity accounted units | 40 | 38 | |
Trade and other receivables: amounts due from equity accounted units | 267 | 278 | |
Trade and other payables: amounts due to equity accounted units | $ (223) | $ (223) |
Accounting Policies - Schedule
Accounting Policies - Schedule of impact on Equity attributable to owners of Rio Tinto on the adoption of IFRS 16 and IFRIC 23 (Details) $ in Millions | Jan. 01, 2019USD ($) |
Disclosure of significant accounting policies [Abstract] | |
IFRS 16 Net Impact | $ (69) |
IFRIC 23 Impact | $ (44) |
Accounting Policies - Leases (D
Accounting Policies - Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2019 | |
Disclosure of significant accounting policies [Abstract] | ||
Operating lease commitments reported as at 31 December 2018 under IAS 17 | $ 1,717 | |
Leases expiring in 12 months or fewer | (130) | $ (260) |
Committed leases not commenced (undiscounted) | (133) | |
Components excluded from the lease liability (undiscounted) | (169) | |
Cost of reasonably certain extensions (undiscounted) | 324 | |
Other | 103 | |
Sub total | 1,712 | |
Differential on measurement of any residual value guarantees - undiscounted | (420) | |
Lease liability opening balance reported as at 1 January 2019 under IFRS 16 | $ 1,292 |
Accounting Policies - IFRS 16 I
Accounting Policies - IFRS 16 Impact (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Disclosure of significant accounting policies [Abstract] | ||
Depreciation and amortisation | $ (114) | |
Lease principal payments | (136) | |
Lease interest paid | (24) | |
- carrying value | 961 | |
Leases expiring in 12 months or fewer | (260) | $ (130) |
- non-current | $ (939) |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of significant accounting policies [Abstract] | ||
Increase To Provision For Uncertain Tax Positions | $ 44 | |
Increase To Lease Liability | 1,248 | |
Additions to right-of-use assets | 1,067 | |
Adjustments To Other Assets And Liabilities | 110 | |
Adjustment to retained earnings due to IFRS 16 | $ 69 | |
Borrowing rate applied to lease liabilities (as a percent) | 4.70% | |
Operating lease commitments reported as at 31 December 2018 under IAS 17 | $ 1,717 | |
Lease liability opening balance reported as at 1 January 2019 under IFRS 16 | $ 1,292 |
Uncategorized Items - rio-20190
Label | Element | Value | |
Purchase Of Entity Shares Pursuant To Share Buy Back | rio_PurchaseOfEntitySharesPursuantToShareBuyBack | $ 1,444,000,000 | |
Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 169,000,000 | [1] |
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 115,000,000 | [2] |
Equity attributable to owners of parent [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 169,000,000 | [1] |
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 113,000,000 | [2] |
Other reserves [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | (10,000,000) | [1] |
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 0 | [2] |
Non-controlling interests [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 0 | [1] |
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 2,000,000 | [2] |
Retained earnings [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member] | |||
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | 179,000,000 | [1] |
Adjustment For Transition To New Accounting Standards | rio_AdjustmentForTransitionToNewAccountingStandards | $ 113,000,000 | [2] |
[1] | {F|ag9lfndlYmZpbGluZ3MtZXVyagsSBlhNTERvYyJeWEJSTERvY0dlbkluZm86NjdjOTA4NmJjOWJkNGYwN2JmNTM0NTk2NjZmZDc3ZDd8VGV4dFNlbGVjdGlvbjo2REM0NjI3QjYzQUVDOTA3MkFBMTQ5MzQ3REM0NzcxQQw} | ||
[2] | The impact of transition to new accounting standards; IFRS 16 ‘Leases’ and IFRIC 23 'Uncertainty over Income Tax Treatments' on 1 January 2019 is discussed on pages F-26 to F-30. |