Cover page
Cover page | 6 Months Ended |
Jun. 30, 2022 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-10533 |
Entity Registrant Name | Rio Tinto plc |
Entity Address, Address Line One | 6 St James’s Square |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1Y 4AD |
Entity Address, Country | GB |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Entity Central Index Key | 0000863064 |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2022 |
Group income statement
Group income statement - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated operations | ||
Consolidated sales revenue | $ 29,775 | $ 33,083 |
Net operating costs (excluding exploration and evaluation) | (17,202) | (15,322) |
Exploration and evaluation costs | (367) | (324) |
Operating profit | 12,206 | 17,437 |
Share of profit after tax of equity accounted units | 468 | 556 |
Profit before finance items and taxation | 12,674 | 17,993 |
Finance items | ||
Net exchange gains on net cash and intragroup balances | 387 | 375 |
Net losses on derivatives not qualifying for hedge accounting | (205) | (63) |
Finance income | 17 | 42 |
Finance costs | (55) | (91) |
Amortisation of discount on provisions | (503) | (207) |
Net finance income (expense) | (359) | 56 |
Profit before taxation | 12,315 | 18,049 |
Taxation | (2,902) | (4,981) |
Profit after tax for the period | 9,413 | 13,068 |
– attributable to owners of Rio Tinto (net earnings) | 8,908 | 12,313 |
– attributable to non-controlling interests | $ 505 | $ 755 |
Basic earnings per share (in USD per share) | $ 5.501 | $ 7.610 |
Diluted earnings per share (in USD per share) | $ 5.469 | $ 7.561 |
Group statement of comprehensiv
Group statement of comprehensive income - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of comprehensive income [abstract] | |||
Profit after tax for the period | $ 9,413 | $ 13,068 | |
Items that will not be reclassified to the income statement: | |||
Re-measurement gains on pension and post-retirement healthcare plans | 829 | 712 | |
Changes in the fair value of equity investments held at fair value through other comprehensive income (FVOCI) | (8) | 12 | |
Tax relating to these components of other comprehensive income | (216) | (219) | |
Share of other comprehensive income of equity accounted units, net of tax | 5 | 12 | |
Items that will not be reclassified to profit or loss | 610 | 517 | |
Items that have been/may be subsequently reclassified to the income statement: | |||
Currency translation adjustment | [1] | (1,512) | (365) |
Fair value movements: | |||
– Cash flow hedge losses | (79) | (142) | |
– Cash flow hedge losses/(gains) transferred to the income statement | 100 | (20) | |
Net change in costs of hedging reserve | (38) | (20) | |
Tax relating to these components of other comprehensive loss | 8 | 55 | |
Share of other comprehensive (losses)/income of equity accounted units, net of tax | (7) | 10 | |
Other comprehensive (loss)/income for the period, net of tax | (918) | 35 | |
Total comprehensive income for the period | 8,495 | 13,103 | |
– attributable to owners of Rio Tinto | 8,063 | 12,342 | |
– attributable to non-controlling interests | $ 432 | $ 761 | |
[1] Excludes a currency translation charge of US$185 million for the period ended 30 June 2022 (30 June 2021: charge of US$82 million) arising on Rio Tinto Limited’s share capital , which is recognised in the Group statement of changes in equity on page F-5. |
Group statement of comprehens_2
Group statement of comprehensive income (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of comprehensive income [abstract] | ||
Currency translation loss | $ (185) | $ (82) |
Group cash flow statement
Group cash flow statement - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of cash flows [abstract] | |||
Cash flows from consolidated operations | [1] | $ 13,912 | $ 18,179 |
Dividends from equity accounted units | 633 | 726 | |
Cash flows from operations | 14,545 | 18,905 | |
Net interest paid | (217) | (208) | |
Dividends paid to holders of non-controlling interests in subsidiaries | (41) | (407) | |
Tax paid | (3,813) | (4,629) | |
Net cash generated from operating activities | 10,474 | 13,661 | |
Cash flows from investing activities | |||
Purchases of property, plant and equipment and intangible assets | (3,146) | (3,336) | |
Acquisitions of subsidiaries, joint ventures and associates | (825) | 0 | |
Disposals of subsidiaries, joint ventures, unincorporated joint operations and associates | 0 | 10 | |
Purchases of financial assets | (66) | (18) | |
Sales of financial assets | 52 | 16 | |
Sales of property, plant and equipment and intangible assets | 1 | 26 | |
Net (funding of)/receipts from equity accounted units | (48) | ||
Net (funding of)/receipts from equity accounted units | 28 | ||
Other investing cash flows | 10 | (33) | |
Net cash used in investing activities | (4,022) | (3,307) | |
Cash flows before financing activities | 6,452 | 10,354 | |
Cash flows from financing activities | |||
Equity dividends paid to owners of Rio Tinto | (7,595) | (6,435) | |
Proceeds from additional borrowings | 144 | 137 | |
Repayment of borrowings and associated derivatives | (211) | (257) | |
Lease principal payments | (183) | (170) | |
Proceeds from issue of equity to non-controlling interests | 22 | 28 | |
Other financing cash flows | 1 | 6 | |
Net cash used in financing activities | (7,822) | (6,691) | |
Effects of exchange rates on cash and cash equivalents | (26) | (21) | |
Net (decrease)/increase in cash and cash equivalents | (1,396) | 3,642 | |
Opening cash and cash equivalents less overdrafts | 12,805 | 10,381 | |
Closing cash and cash equivalents less overdrafts | $ 11,409 | $ 14,023 | |
[1] (a) Cash flows from consolidated operations Profit after tax for the period 9,413 13,068 Adjustments for: – Taxation 5 2,902 4,981 – Finance items 359 (56) – Share of profit after tax of equity accounted units (468) (556) – Depreciation and amortisation 2,459 2,307 – Provisions (including exchange differences on provisions) 8 496 485 – Pension settlement — (291) Utilisation of provision for post-retirement benefits 8 (66) (76) Utilisation of provisions 8 (363) (349) Change in inventories (582) (518) Change in receivables and other assets (128) (966) Change in trade and other payables 267 250 Other items (b) (377) (100) 13,912 18,179 |
Group cash flow statement (Pare
Group cash flow statement (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of cash flows [abstract] | |||
Profit after tax for the period | $ 9,413 | $ 13,068 | |
Adjustments for: | |||
– Taxation | 2,902 | 4,981 | |
– Finance items | 359 | (56) | |
– Share of profit after tax of equity accounted units | (468) | (556) | |
– Depreciation and amortisation | 2,459 | 2,307 | |
– Provisions (including exchange differences on provisions) | 496 | 485 | |
– Pension settlement | 0 | (291) | |
Utilisation of provision for post-retirement benefits | (66) | (76) | |
Utilisation of provisions | (363) | (349) | |
Change in inventories | (582) | (518) | |
Change in receivables and other assets | (128) | (966) | |
Change in trade and other payables | 267 | 250 | |
Other items | [1] | (377) | (100) |
Cash flows from consolidated operations | [2] | 13,912 | 18,179 |
Adjustments for gains (losses) on change in fair value of derivatives | $ (242) | $ 10 | |
[1]Other items includes realised losses of US$242 million on currency forwards not designated as hedges (30 June 2021: realised gain US$10 million).[2] (a) Cash flows from consolidated operations Profit after tax for the period 9,413 13,068 Adjustments for: – Taxation 5 2,902 4,981 – Finance items 359 (56) – Share of profit after tax of equity accounted units (468) (556) – Depreciation and amortisation 2,459 2,307 – Provisions (including exchange differences on provisions) 8 496 485 – Pension settlement — (291) Utilisation of provision for post-retirement benefits 8 (66) (76) Utilisation of provisions 8 (363) (349) Change in inventories (582) (518) Change in receivables and other assets (128) (966) Change in trade and other payables 267 250 Other items (b) (377) (100) 13,912 18,179 |
Group balance sheet
Group balance sheet - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | |
Non-current assets | |||
Goodwill | $ 849 | $ 879 | |
Intangible assets | 3,607 | 2,832 | |
Property, plant and equipment | 64,379 | 64,927 | |
Investments in equity accounted units | 3,392 | 3,504 | |
Inventories | 194 | 196 | |
Deferred tax assets | 3,411 | 3,375 | |
Receivables and other assets | 2,175 | 2,194 | |
Tax recoverable | 4 | 29 | |
Other financial assets | 477 | 528 | |
Total non-current assets | 78,488 | 78,464 | |
Current assets | |||
Inventories | 5,798 | 5,436 | |
Receivables and other assets | 3,645 | 3,574 | |
Tax recoverable | 60 | 72 | |
Other financial assets | 2,502 | 2,543 | |
Cash and cash equivalents | 11,412 | 12,807 | |
Total current assets | 23,417 | 24,432 | |
Total assets | 101,905 | 102,896 | |
Current liabilities | |||
Borrowings and other financial liabilities | (1,770) | (1,381) | |
Trade and other payables | (7,986) | (7,733) | |
Tax payable | (1,045) | (1,407) | |
Provisions including post-retirement benefits | (2,308) | (2,106) | |
Total current liabilities | (13,109) | (12,627) | |
Non-current liabilities | |||
Borrowings and other financial liabilities | (11,976) | (12,788) | |
Trade and other payables | (624) | (798) | |
Tax payable | (45) | (660) | |
Deferred tax liabilities | (3,729) | (3,503) | |
Provisions including post-retirement benefits | (15,324) | (15,930) | |
Total non-current liabilities | (31,698) | (33,679) | |
Total liabilities | (44,807) | (46,306) | |
Net assets | 57,098 | 56,590 | |
Capital and reserves | |||
Share premium account | 4,322 | 4,320 | |
Other reserves | 8,562 | 9,998 | |
Retained earnings | 34,081 | 33,337 | |
Equity attributable to owners of Rio Tinto | 50,557 | 51,432 | |
Attributable to non-controlling interests | 6,541 | 5,158 | |
Total equity | 57,098 | 56,590 | |
Rio Tinto Plc | |||
Capital and reserves | |||
Share capital | [1] | 207 | 207 |
Rio Tinto Limited | |||
Capital and reserves | |||
Share capital | [1] | $ 3,385 | $ 3,570 |
[1]At 30 June 2022, Rio Tinto plc had 1,249.3 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. There were no cross holdings of shares between Rio Tinto Limited and Rio Tinto plc in either periods presented. |
Group balance sheet (Parentheti
Group balance sheet (Parenthetical) shares in Millions | 6 Months Ended |
Jun. 30, 2022 shares | |
Rio Tinto Plc | |
Statements [Line Items] | |
Weighted average number of ordinary shares outstanding (in shares) | 1,249.3 |
Rio Tinto Limited | |
Statements [Line Items] | |
Weighted average number of ordinary shares outstanding (in shares) | 371.2 |
Group statement of changes in e
Group statement of changes in equity - USD ($) $ in Millions | Total | Adjustment for transition to new accounting pronouncements | Revision to opening balance | Total | Total Adjustment for transition to new accounting pronouncements | Total Revision to opening balance | Share capital | Share capital Revision to opening balance | Share premium account | Share premium account Revision to opening balance | Other reserves | Other reserves Revision to opening balance | Retained earnings | Retained earnings Adjustment for transition to new accounting pronouncements | Retained earnings Revision to opening balance | Non-controlling interests | Non-controlling interests Revision to opening balance | |
Opening balance at Dec. 31, 2020 | $ 51,903 | $ 47,054 | $ 3,988 | $ 4,314 | $ 11,960 | $ 26,792 | $ 4,849 | |||||||||||
Total comprehensive income for the period | 13,103 | 12,342 | (466) | 12,808 | 761 | |||||||||||||
Currency translation arising on Rio Tinto Limited's share capital | (82) | (82) | (82) | |||||||||||||||
Dividends | [1] | (6,842) | (6,435) | (6,435) | (407) | |||||||||||||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees | [2] | (17) | (17) | (13) | (4) | |||||||||||||
Change in equity interest held by Rio Tinto (refer to note 11) | 0 | 37 | 37 | (37) | ||||||||||||||
Treasury shares reissued and other movements | 6 | 6 | 6 | |||||||||||||||
Equity issued to holders of non-controlling interests (refer to note 11) | 28 | 28 | ||||||||||||||||
Employee share awards charged to the income statement | 70 | 70 | 28 | 42 | ||||||||||||||
Closing balance at Jun. 30, 2021 | 58,169 | 52,975 | 3,906 | 4,320 | 11,509 | 33,240 | 5,194 | |||||||||||
Opening balance at Dec. 31, 2021 | 56,590 | $ (17) | $ 56,573 | 51,432 | $ (17) | $ 51,415 | 3,777 | $ 3,777 | 4,320 | $ 4,320 | 9,998 | $ 9,998 | 33,337 | $ (17) | $ 33,320 | 5,158 | $ 5,158 | |
Total comprehensive income for the period | 8,495 | 8,063 | (1,457) | 9,520 | 432 | |||||||||||||
Currency translation arising on Rio Tinto Limited's share capital | (185) | (185) | (185) | |||||||||||||||
Dividends | [1] | (7,850) | (7,584) | (7,584) | (266) | |||||||||||||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees | [2] | (6) | (6) | (3) | (3) | |||||||||||||
Change in equity interest held by Rio Tinto (refer to note 11) | 0 | (484) | (484) | 484 | ||||||||||||||
Treasury shares reissued and other movements | 2 | 2 | 2 | |||||||||||||||
Equity issued to holders of non-controlling interests (refer to note 11) | 22 | (711) | (711) | 733 | ||||||||||||||
Employee share awards charged to the income statement | 47 | 47 | 24 | 23 | ||||||||||||||
Closing balance at Jun. 30, 2022 | $ 57,098 | $ 50,557 | $ 3,592 | $ 4,322 | $ 8,562 | $ 34,081 | $ 6,541 | |||||||||||
[1]Dividends per share announced or paid during the period are summarised below: For six months ended 30 June 2022 US$m 2021 US$m Dividends per share: Ordinary - paid during the period 417.0c 309.0c Dividends per share: Special - paid during the period 62.0c 93.0c Ordinary dividends per share: announced with the results for the period 267.0c 376.0c Special dividends per share: announced with the results for the period — 185.0c |
Group statement of changes in_2
Group statement of changes in equity (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Statement of changes in equity [abstract] | ||
Dividends per share: Ordinary - paid during the period (USD per share) | $ 4.170 | $ 3.090 |
Dividends per share: Special - paid during the period (in USD per share) | 0.620 | 0.930 |
Ordinary dividends per share: announced with the results for the period (in USD per share) | 2.670 | 3.760 |
Special dividends per share: announced with the results for the period (in USD per share) | $ 0 | $ 1.850 |
Basis of preparation
Basis of preparation | 6 Months Ended |
Jun. 30, 2022 | |
Basis Of Presentation [Abstract] | |
Basis of preparation | Basis of preparation The unaudited condensed consolidated interim financial statements included in this report have been prepared in accordance with: International Accounting Standard ('IAS') 34 'Interim Financial Reporting' as issued by the International Accounting Standards Board ('IASB'). These unaudited condensed consolidated interim financial statements 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 2021 and any public announcements made by the Group during the interim reporting period. The 2021 financial statements have been prepared on a going concern basis in accordance with International Financial Reporting Standards ('IFRS') as issued by the IASB and interpretations issued from time to time by the IFRS Interpretations Committee (IFRS IC) which are mandatory at 31 December 2021. |
Changes in accounting policies
Changes in accounting policies | 6 Months Ended |
Jun. 30, 2022 | |
Basis Of Presentation [Abstract] | |
Changes in accounting policies | 2. Changes in 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 2021, except for the modifications set out below. This basis of accounting is referred to as ‘IFRS’ in this report. Adoption of changes to IFRS applicable in 2022 did not have a significant impact on the Group's financial statements. Basis of preparation of the financial statements – accounting policies: During the six months ended 30 June 2022, the Group did not early adopt any amendments, standards or interpretations that have been issued but are not yet mandatory. The Group adopted Proceeds before Intended Use (Amendments to IAS 16 “Property, Plant and Equipment” ) at 1 January 2022. The amendment prohibits the deduction, from the cost of major project construction work in progress, of proceeds (net of additional processing costs) from selling items before the related item of property, plant and equipment is available for use. Under the amendment such proceeds are recognised in the income statement together with the costs of producing those items. During 2021 the Group completed a review of the impact of these amendments and concluded that adjustments to Group retained earnings as at 1 January 2020, and restatement of the 2020 and 2021 Group Income Statement and Balance Sheet upon adoption of the amendments were insignificant and as a result no restatements were made to comparative periods. The Group adopted Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”) at 1 January 2022. The amendments specify that the costs an entity includes in determining whether a contract is onerous comprise all directly related costs, including both incremental amounts and an allocation of other directly related expenditure. Previously, the Group made provision for onerous contracts when the assets dedicated to the contract were fully impaired or the contract became stranded as a result of a business decision (refer to note 1(i) of Annual Report 2021). From 2022, the Group records a provision if a contract is found to be loss-making on a stand-alone basis following allocation of all directly related costs as required by the amendments to IAS 37. The Group has applied the amendments without revision to comparative amounts, with a reduction to retained earnings as at 1 January 2022 of US$17 million. The Group is continuing to evaluate the impact of IAS 12 "Income Taxes" - Deferred Tax related to Assets and Liabilities arising from a Single Transactio n , mandatory in 2023 and not yet endorsed by the UK. Narrow-scope amendments to IAS 12 introduce an exception to the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. The most significant impact from implementing these amendments is expected to be from temporary differences related to the Group's provisions for close-down and restoration / environmental and lease obligations and corresponding capitalised closure costs and right-of-use assets. Our existing accounting policy states that “where the recognition of an asset and liability from a single transaction gives rise to equal and off-setting temporary differences, Rio Tinto applies the Initial Recognition Exemption allowed by IAS 12, and consequently recognises neither a deferred tax asset nor a deferred tax liability in respect of these temporary differences”. Under the amendment, deferred tax assets and liabilities will be required to be recognised in respect of such temporary differences. Upon transition in 2023, the Group anticipates material adjustments to gross deferred tax assets and deferred tax liabilities (prior to required offsetting within the same tax jurisdiction) as at 1 January 2021 and that these adjustments will partially offset one another, with the net difference recorded in reserves. Work is ongoing to quantify the impact. There will be no impact on tax cash flows or balance sheet tax recoverable or payable as a result of implementing these amendments and the unwind of the newly recognised deferred tax is not expected to materially impact the income statement. 2. Changes in accounting policies (continued) Principal accounting policies: Principal accounting policy information has been amended to reflect changes in 2022 to the following policies: Proceeds before Intended Use (Amendments to IAS 16 “Property, Plant and Equipment”). Proceeds from selling items before the related item of property, plant and equipment is available for use are recognised within “Consolidated sales revenue” in the income statement along with the costs of producing those items within “Net operating costs (excluding exploration and evaluation)”.The production cost of material sold is determined using an unit of production method for allocating development expenditure during the period, based on production in the period as a proportion of total expected production over the life of mine based on total ore reserves. Onerous Contracts – Cost of Fulfilling a Contract (Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”). The cost of fulfilling a contract comprises all directly related costs, including both incremental amounts and an allocation of other directly related expenditure in determining the cost of fulfilling a contract for the purpose of assessing whether the contract is onerous. The Group records a provision if a contract is found to be loss-making on a stand-alone basis following allocation of all directly related costs. |
Segmental information
Segmental information | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Segmental information | 3. Segmental information Rio Tinto’s management structure is based on the principal product groups (PGs) together with global support functions whose leaders make up the Executive Committee. The Executive Committee members each report directly to the Chief Executive of Rio Tinto who is the chief operating decision maker (CODM) and is responsible for allocating resources and assessing performance of the operating segments. The CODM monitors the performance of each product group based on a number of measures, including underlying earnings, underlying EBITDA, capital expenditure, net cash generated from operating activities and free cash flow. Our primary measure of profit is underlying EBITDA. Finance items and net cash are managed on a group-wide basis and are therefore excluded from the segmental results The Group's reportable segments are based on principal Product Groups (PGs) and are consistent with the internal reporting structure as at 30 June 2022. Business units (BUs) are allocated to PGs based on management structure. The reportable segments are described as follows: Reportable segment Principal activities Iron Ore Iron ore mining, salt and gypsum production in Western Australia. Aluminium Bauxite mining; alumina refining; aluminium smelting. Copper Mining and refining of copper, gold, silver, molybdenum and other by-products; exploration activities together with the Simandou iron ore project, which is the responsibility of the Copper product group chief executive. Minerals Includes businesses with products such as borates, lithium, titanium dioxide feedstock together with the Iron Ore Company of Canada (iron ore mining and iron concentrate/pellet production). Also includes diamond mining, sorting and marketing. 3. Segmental information (continued) Six months ended 30 June 2022 Gross product sales (a) US$m Underlying EBITDA (b) US$m Underlying earnings (c) US$m Capital expenditure (d) US$m Iron Ore 16,610 10,395 6,461 1,472 Aluminium 7,796 2,866 1,547 681 Copper 3,547 1,487 543 867 Minerals 3,403 1,259 420 268 Reportable segments total 31,356 16,007 8,971 3,288 Other Operations 107 (78) (167) 9 Inter-segment transactions (149) (1) — Product group total 31,314 15,928 8,804 3,297 Other items — 41 Share of equity accounted units (1,539) — (193) Proceeds from disposal of property, plant and equipment — 1 Central pension costs, share-based payments & insurance & derivatives 265 237 Restructuring, project and one-off costs (86) (61) Central costs (397) (363) Central exploration and evaluation (113) (95) Net interest — 105 — Consolidated sales revenue/Capital expenditure 29,775 3,146 Underlying EBITDA/Underlying Earnings 15,597 8,627 3. Segmental information (continued) Six months ended 30 June 2021 Gross product sales (a) US$m Underlying EBITDA (b) US$m Underlying earnings (c) US$m Capital expenditure (d) US$m Iron Ore 21,707 16,060 10,216 1,912 Aluminium 5,932 1,924 921 524 Copper 3,779 2,048 885 750 Minerals 3,270 1,398 498 209 Reportable segments total 34,688 21,430 12,520 3,395 Other Operations 85 (4) (51) — Inter-segment transactions (145) (6) (3) — Product group total 34,628 21,420 12,466 3,395 Other items — 35 Share of equity accounted units (1,545) — (120) Proceeds from disposal of property, plant and equipment — 26 Central pensions, share-based payments, insurance and derivatives 119 120 Restructuring, project and one-off costs (36) (23) Central costs (346) (294) Central exploration and evaluation (120) (100) Net interest (3) Consolidated sales revenue/Capital expenditure 33,083 3,336 Underlying EBITDA/ Underlying Earnings 21,037 12,166 (a) Gross product sales include the sales revenue of equity accounted units on a proportionate 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 product sales. (b) Underlying EBITDA (calculated on page F-13) is reported to provide greater understanding of the underlying business performance of Rio Tinto's operations. It represents profit before tax, net finance items, depreciation and amortisation excluding the EBITDA impact of the same items that are excluded in arriving at underlying earnings (as defined below). (c) Underlying earnings (calculated on page F-14) represent net earnings attributable to the owners of Rio Tinto, adjusted to exclude items, which do not reflect the underlying performance of the Group’s operations. Underlying earnings and net earnings both represent amounts attributable to owners of Rio Tinto. Exclusions from underlying earnings relating to equity accounted units are stated after tax and included in “Pre-tax” earnings, consistent with the requirements of the equity accounting method. Exclusions from underlying earnings are those gains and losses, that individually, or in aggregate with similar items, are of a nature and size to require exclusion in order to provide additional insight into underlying business performance. 3. Segmental information (continued) The following items are excluded from net earnings in arriving at underlying earnings in each period irrespective of materiality: – Net gains/(losses) on disposal of interests in businesses. – Impairment charges and reversals. – Profit/(loss) after tax from discontinued operations. – Exchange and derivative gains and losses. This exclusion includes exchange gains/(losses) on external net cash and intragroup balances, unrealised gains/(losses) on currency and interest rate derivatives not qualifying for hedge accounting, unrealised gains/(losses) on certain commodity derivatives not qualifying for hedge accounting, and unrealised gains/(losses) on embedded derivatives not qualifying for hedge accounting. – Adjustments to closure provisions where the adjustment is associated to an impairment charge and for legacy sites where the disturbance or environmental contamination relates to the pre-acquisition period. (d) 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. Reconciliation of underlying EBITDA to profit after taxation For six months ended 30 June 2022 2021 Underlying EBITDA 15,597 21,037 Depreciation and amortisation in subsidiaries excluding capitalised depreciation (2,405) (2,253) Depreciation and amortisation in equity accounted units (242) (249) Finance items in subsidiaries (359) 56 Taxation in subsidiaries (2,902) (4,981) Taxation and finance items in equity accounted units (363) (365) Gains recognised by Kitimat relating to LNG Canada's project 116 — Gains/(Losses) on embedded commodity derivatives not qualifying for hedge accounting (including foreign exchange) 14 (2) Increase in closure estimates (non-operating and fully impaired sites) (43) (175) Profit after tax 9,413 13,068 3. Segmental information (continued) Reconciliation of underlying earnings to net earnings Six months ended 30 June Pre-tax Taxation Non-controlling Net amount Net amount Underlying earnings 12,044 (2,918) (499) 8,627 12,166 Items excluded from underlying earnings Foreign exchange and derivative gains/(losses): – Foreign exchange gains on external net cash, intragroup balances and derivatives (a) 383 (15) — 368 347 – Losses on currency and interest rate derivatives not qualifying for hedge accounting (b) (194) 42 (2) (154) (45) – Gains/(Losses) on embedded commodity derivatives not qualifying for hedge accounting (c) 9 (4) (4) 1 (22) Gains recognised by Kitimat relating to LNG Canada's project (d) 116 (9) — 107 — Losses from movements to closure estimates (non-operating and fully impaired sites) (e) (43) 2 — (41) (133) Total excluded from underlying earnings 271 16 (6) 281 147 Net earnings 12,315 (2,902) (505) 8,908 12,313 (a) Foreign exchange gains on external net cash and intragroup balances comprise post-tax gains of US$508 million (30 June 2021:US$351 million) on intragroup balances offset by post-tax foreign exchange losses on net cash of US$140 million (30 June 2021: US$4 million) primarily as a result of the Australian dollar weakening against the US dollar. (b) Valuation changes on currency and interest rate derivatives, which are ineligible for hedge accounting, other than those embedded in commercial contracts, and the currency revaluation of embedded US dollar derivatives contained in contracts held by entities whose functional currency is not the US dollar. (c) Valuation changes on derivatives, embedded in commercial contracts, that are ineligible for hedge accounting, but for which there will be an offsetting change in future Group earnings. Mark-to-market movements on commodity derivatives entered into with the commercial objective of achieving spot pricing for the underlying transaction at the date of settlement are included in underlying earnings. (d) During the first half of 2022, LNG Canada elected to terminate their option to purchase additional land and facilities for expansion of their operations at Kitimat, Canada. This has been excluded from underlying earnings consistent with prior years as it is part of a series of transactions that together were material. (e) In 2022 the charge relates to inflationary increases to the closure provision for non-operating and fully impaired sites in excess of the unwind of the discount. In 2021, the charge related to an increase to the Diavik closure provision to reflect the final results of the Pre-Feasibility Study that was in progress when the asset was fully impaired in 2020 and further increases at a number of the Group's legacy sites where the environmental damage preceded ownership by Rio Tinto. |
Segmental information - additio
Segmental information - additional information | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Segmental information - additional information | 4. Segmental information - additional information Geographical analysis (by destination) Consolidated sales revenue by destination (a) Six months ended 30 June 2022 2021 2022 2021 China 52.1 % 59.9 % 15,521 19,805 United States of America 16.3 % 11.5 % 4,848 3,816 Asia (excluding China and Japan) 9.1 % 9.5 % 2,698 3,157 Japan 6.8 % 7.2 % 2,039 2,373 Europe (excluding UK) 6.7 % 5.0 % 1,995 1,667 Canada 3.1 % 2.4 % 933 793 Australia 2.0 % 1.6 % 596 519 UK 0.4 % 0.5 % 133 166 Other countries 3.5 % 2.4 % 1,012 787 Consolidated sales revenue 100.0 % 100.0 % 29,775 33,083 (a) Consolidated sales revenue by geographical destination is based on the ultimate country of the product's destination, if known. Where the ultimate destination is not known, we have defaulted to the shipping address of the customer. Rio Tinto is domiciled in both the UK and Australia. Product analysis (by revenue type) Six months ended 30 June 2022 Six months ended 30 June 2021 Consolidated sales revenue by product Revenue from contracts with customers Other revenue (a) US$m Consolidated sales revenue Revenue from contracts with customers US$m Other revenue (a) US$m Consolidated sales revenue Iron ore 17,547 91 17,638 21,964 1,108 23,072 Aluminium, alumina and bauxite 7,321 298 7,619 5,733 84 5,817 Copper 1,702 (38) 1,664 1,472 77 1,549 Industrial minerals (comprising titanium dioxide slag, borates and salt) 1,233 (3) 1,230 1,141 4 1,145 Gold 322 9 331 506 (6) 500 Diamonds 465 — 465 160 — 160 Other products (b) 829 (1) 828 827 13 840 Consolidated sales revenue 29,419 356 29,775 31,803 1,280 33,083 (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) “Other products” includes metallic co-products, molybdenum, silver and other commodities with immaterial revenues. |
Taxation
Taxation | 6 Months Ended |
Jun. 30, 2022 | |
Major components of tax expense (income) [abstract] | |
Taxation | 5. Taxation Prima facie tax reconciliation Six months ended 30 June 2022 US$m 2021 US$m Profit before taxation 12,315 18,049 Deduct: share of profit after tax of equity accounted units (a) (468) (556) Parent companies' and subsidiaries' profit before tax 11,847 17,493 Prima facie tax payable at UK rate of 19% (2021: 19%) (b) 2,251 3,324 Higher rate of taxation of 30% on Australian underlying earnings (2021: 30%) 924 1,609 Other tax rates applicable outside the UK and Australia on underlying earnings 60 77 Impact of items excluded in arriving at underlying earnings (c) : – Losses/gains on foreign exchange and on derivatives (61) (34) – Losses from increases to closure estimates (non-operating and fully impaired sites) 6 (9) – Utilisation of capital losses on the gain recognised by Kitimat relating to LNG Canada's project (13) — Impact of changes in tax rates and laws (12) — Recognition of previously unrecognised deferred tax assets (d) (209) (77) Write-down of previously recognised deferred tax assets 8 8 Adjustments in respect of prior periods (e) (137) 43 Other items 85 40 Total taxation charge (a) 2,902 4,981 (a) 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$289 million (30 June 2021: US$318 million). (b) As a UK headquartered and listed Group, the reconciliation of expected tax on accounting profit to tax charge uses the UK corporation tax rate to calculate the prima facie tax payable. Rio Tinto is also listed in Australia, and the reconciliation includes the impact of the higher tax rate in Australia where a significant proportion of the Group's profits are currently earned. The impact of other tax rates applicable outside the UK and Australia is also included. The weighted average statutory corporation tax rate on profit before tax is approximately 29% (30 June 2021: 29%). (c) The impact for each item includes the effect of tax rates applicable outside the UK. (d) In the period to 30 June 2022 and 30 June 2021 the recognition of previously unrecognised deferred tax assets relates to the recognition of prior year deferred tax assets at Oyu Tolgoi due to improved deferred tax asset recovery expectations. (e) In the period to 30 June 2022, adjustments in respect of prior periods includes amounts related to the settlement of all tax disputes with the Australian Tax Office for the years 2010 to 2021. 5. Taxation (continued) Future tax developments We continue to closely monitor the Organisation for Economic Co-operation and Development’s (OECD) Two Pillar Solution to address the Tax Challenges Arising from the Digitalisation of the Economy which are currently expected to be enacted in 2023 with application to the Group from 1 January 2024. We note the release of associated draft legislation on 20 July 2022 by the UK government in relation to a proposed "Multinational Top-up Tax" on a country-by-country basis in line with the OECD Pillar Two 15% global minimum tax. We are in the process of evaluating the cash tax and accounting implications of the Pillar Two global minimum tax rules under IAS 12. Given the UK legislation is only in draft form and is subject to further consultation it is too early to reliably estimate the potential impact. Recognition of any such impact will only occur once legislation has been substantively enacted. We will closely monitor developments to the proposed legislation accordingly. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisitions | 6. Acquisitions On 29 March 2022 we completed the acquisition of Rincon Mining Pty Limited, the owner of a lithium project in Argentina. Total cash consideration was US$825 million, following approval from Australia’s Foreign Investment Review Board (FIRB). The transaction has been treated as an asset purchase with US$822 million of capitalised exploration and evaluation recorded for the principal economic resource. The balance of total consideration has been allocated to property, plant & equipment and other assets / liabilities. No goodwill was recorded on the transaction as the Rincon project's activities did not, at the time of purchase, meet the definition of a business as defined by IFRS 3 "Business Combinations". |
Cash and cash equivalents
Cash and cash equivalents | 6 Months Ended |
Jun. 30, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents | 7. Cash and cash equivalents Closing cash and cash equivalents less overdrafts for the purposes of the cash flow statement differs from cash and cash equivalents on the Group balance sheet as per the following reconciliation: Closing cash and cash equivalents less overdrafts 30 June 31 December 30 June US$m US$m US$m Balance per Group balance sheet 11,412 12,807 14,027 Bank overdrafts repayable on demand (unsecured) (3) (2) (4) Balance per Group cash flow statement 11,409 12,805 14,023 |
Provisions including post-retir
Provisions including post-retirement benefits | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of other provisions [abstract] | |
Provisions including post-retirement benefits | 8. Provisions including post-retirement benefits Pensions and post-retirement healthcare Other employee entitlements (a) Close-down and restoration/ environmental (b) Other Total US$m US$m US$m US$m US$m Opening Balance 2,098 394 14,542 1,002 18,036 Change in accounting policy (c) — — — 17 17 Revision to opening balance 2,098 394 14,542 1,019 18,053 Adjustment on currency translation (20) (19) (514) (34) (587) Adjustments to mining properties/right of use assets: – increases to existing and new provisions (d) — — 345 — 345 Charged/(credited) to profit: – increases to existing and new provisions (d) 62 57 206 200 525 – unused amounts reversed — (10) (18) (26) (54) – exchange losses on provisions — — 24 1 25 – amortisation of discount (d) — — 503 1 504 Utilised in the period (66) (56) (256) (51) (429) Re-measurement gains recognised in other comprehensive income (739) — — — (739) Transfers and other movements — — 3 (14) (11) Closing balance 1,335 366 14,835 1,096 17,632 Balance sheet analysis: Current 68 293 1,145 802 2,308 Non-current 1,267 73 13,690 294 15,324 Total 1,335 366 14,835 1,096 17,632 (a) The provision for other employee entitlements includes a provision for long service leave of US$275 million (31 December 2021: US$272 million), based on the relevant entitlements in certain Group operations and includes US$31 million (31 December 2021: US$60 million) of provision for redundancy and severance payments. (b) Close-down, restoration and environmental liabilities at 30 June 2022 have not been adjusted for closure related receivables amounting to US$391 million (31 December 2021: US$410 million) due from the ERA trust fund and other financial assets held for the purposes of meeting closure obligations. These are included within “Receivables and other assets” on the balance sheet. (c) The way we calculate the cost of fulfilling a contract when assessing whether it is onerous has changed with the adoption of the amendments of IAS 37 (refer to note 2). This has led to an increase in the opening provision by US$17 million. (d) Higher inflation has driven increases in closure and restoration/environmental liabilities. The Income Statement charge for amortisation of discount of US$503 million ( 30 June 2021 : US$207 million ) incorporates inflation expectations for 2022 as at the start of the year. We also recorded adjustments to mining properties and charges within operating costs of US$360 million and US$180 million respectively, reflecting changes in forecast cash flows due to our current outlook on inflation being in excess of expectations at the start of the year. |
Financial instruments
Financial instruments | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 9. Financial Instruments Except where stated, the information relates to the financial instruments of the parent companies and their subsidiaries and joint operations, and excludes those of equity accounted units. Valuation hierarchy of financial instruments carried at fair value on a recurring basis The Group classifies its financial assets into those to be measured subsequently at fair value and those to be held at amortised cost. Trade and other financial payables are recognised initially at fair value, net of transaction cost incurred and are subsequently measured at amortised cost. The table below shows the classifications of financial instruments carried at fair value by valuation method in accordance with IFRS 13 at 30 June 2022 and 31 December 2021: At 30 June 2022 At 31 December 2021 Held at fair value Held at fair value Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Assets Cash and cash equivalents (d) 3,916 — — 4,138 — — Investments in equity shares and funds 76 — 63 64 — 53 Other investments, including loans (e) 2,326 — 254 2,422 — 238 Trade and other financial receivables (f) 3 1,365 — 1 1,163 — Derivatives (net) Forward contracts and option contracts: designated as hedges (g) — — (148) — — (125) Forward contracts and option contracts, not designated as hedges (g) — 32 17 — (131) 11 Derivatives related to net cash — (566) — — (101) — Liabilities Trade and other financial payables — (80) — — (67) — Total 6,321 751 186 6,625 864 177 9. Financial Instruments (continued) (a) Valuation is based on unadjusted quoted prices in active markets for identical financial instruments. (b) Valuation is based on inputs that are observable for the financial instruments, which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or inputs, either directly or indirectly based on observable market data. (c) Valuation is based on inputs that cannot be observed using market data (unobservable inputs). The change in valuation of our level 3 instruments for the six months to 30 June 2022 is below: Level 3 financial assets and liabilities US$m Opening balance 177 Currency translation adjustments (8) Total realised gains/(losses) included in: – consolidated sales revenue 11 – net operating costs (31) Total unrealised gains included in: – net operating costs 32 Total unrealised losses transferred into other comprehensive income through cash flow hedges (60) Additions to financial instruments 36 Disposals/maturity of financial instruments 29 Closing balance 186 Net gains included in the income statement for assets and liabilities held at period end 20 (d) Our "cash and cash equivalents" of US$11,412 million, includes US$3,916 million relating to 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. (f) Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes between the provisional price and the final price recorded separately within “Other revenue”. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2022, US$1,155 million (31 December 2021: US$1,114 million) of provisionally priced receivables were recognised. (g) Level 3 derivatives consist of derivatives embedded in electricity purchase contracts linked to the LME, midwest premium and billet premium with terms expiring between 2025 and 2036 (31 December 2021: 2025 and 2036). There were no material transfers between level 1 and level 2, or between level 2 and level 3 in the period ended 30 June 2022 or in the year ended 31 December 2021. 9. Financial Instruments (continued) Valuation techniques and inputs The techniques used to value our material fair value assets/(liabilities) categorised under Level 2 and Level 3 are summarised below: Description Fair Value Valuation technique Significant Inputs Level 2 Interest rate swaps (257) Discounted cash flows Applicable market quoted swap yield curves Cross currency interest rate swaps (309) Discounted cash flows Applicable market quoted swap yield curves Provisionally priced receivables 1,155 Closely related listed product Applicable forward quoted metal price Level 3 Derivatives embedded in electricity contracts (178) Discounted cash flows/option model LME forward aluminium price Royalty receivables 235 Discounted cash flows Forward commodity price Sensitivity analysis in respect of level 3 financial instruments For assets/(liabilities) classified under Level 3, the effect of changing the significant unobservable inputs on carrying value has been calculated using a movement that we deem to be reasonably probable. To value the long-term aluminium embedded power derivatives, we use unobservable inputs when the term of the derivative extends beyond observable market prices. Changing the level 3 inputs to reasonably possible alternative assumptions does not change the fair value significantly, taking into account the expected remaining term of contracts for either reported period. The fair value of these derivatives are a net liability of US$178 million at 30 June 2022 (31 December 2021:net liability of US$146 million). Royalty receivables includes amounts arising from our divested coal businesses with a carrying value of US$146 million (31 December 2021: US$136 million). These are classified as “Other investments”, including loans within “Other financial assets”. The fair values are determined using level 3 unobservable inputs. This royalty receivable includes US$55 million from forecast production beyond 2030. This has not been adjusted for potential changes in production rates that could occur due to climate change targets impacting the operator. The main unobservable input is the long-term coal price used over the life of this royalty receivable. A 15% increase in the coal spot price would result in a US$15 million increase (31 December 2021: US$63 million increase) in the carrying value. A 15% decrease in the coal spot price would result in a US$41 million decrease (31 December 2021: US$53 million decrease) in the carrying value. We have used a 15% assumption to calculate our exposure as it represents the annual coal price movement that we deem to be reasonably probable (on an annual basis over the long run). 9. Financial Instruments (continued) Fair values disclosure of financial instruments The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which approximates their fair value at 30 June 2022 and 31 December 2021. The fair values of our remaining financial instruments approximate their carrying values because of their short maturity, or because they carry floating rates of interest. 30 June 2022 31 December 2021 Carrying Fair Carrying Fair Borrowings (including overdrafts) 11,587 11,997 12,168 13,904 Total borrowings with a carrying value of US$6.7 billion (31 December 2021: US$7.3 billion) relate to listed bonds with a fair value of US$7.0 billion (31 December 2021: US$8.7 billion) and are categorised as level 1 in the fair value hierarchy. Borrowings with a carrying value of US$4.1 billion (31 December 2021: US$4.2 billion) relate to project finance drawn down by Oyu Tolgoi, with a fair value of US$4.3 billion (31 December 2021: US$4.4 billion) using a number of level 3 valuation inputs. Our 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. |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Capital commitments [abstract] | |
Commitments and contingencies | 10. Commitments and contingencies Capital commitments at 30 June 2022 Capital commitments, excluding the Group's share of joint venture capital commitments, were US$2,905 million (31 December 2021: US$2,551 million). Our capital commitments include open purchase orders for managed operations and expenditure on major projects already authorised by our Investment Committee for non-managed operations. It does not include the estimated incremental capital expenditure relating to decarbonisation projects of US$7.5 billion between 2022 and 2030 unless otherwise contractually committed. On a legally enforceable basis, capital commitments would be approximately US$1.3 billion (31 December 2021: US$1.1 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$17 million at 30 June 2022 (31 December 2021: US$11 million). Contingent liabilities (subsidiaries, joint operations joint ventures and associates) Contingent liabilities, 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 contingent liabilities, guarantees or indemnities being called is assessed as possible rather than probable or remote. 10. Commitments and contingencies (continued) Contingent liabilities, indemnities and other performance guarantees were US$275 million at 30 June 2022 (31 December 2021: US$441 million). There were no material contingent liabilities arising in relation to the Group’s joint ventures and associates.The Group has not established provisions for certain additional legal claims in cases where we have assessed that a payment is either not probable or cannot be reliably estimated. A number of Group companies are, and will likely continue to be, subject to various legal proceedings and investigations that arise from time to time. As a result, the Group may become subject to substantial liabilities that could affect our business, financial position and reputation. Litigation is inherently unpredictable and large judgments may at times occur. The Group may incur, in the future, judgments or enter into settlements of claims that could lead to material cash outflows. We do not believe that any of these proceedings will have a materially adverse effect on our financial position. Contingent liabilities - not quantifiable The current status of the following contingent liabilities means it is not practicable to provide a reliable estimate of possible financial exposure: Litigation disputes In October 2017, Rio Tinto announced that it had been notified by the U.S. 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 antifraud, 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 June 2019, the trial court dismissed an associated US class action on behalf of securities holders. In August 2020, the appeals court partially overturned the court’s dismissal and the trial court dismissed the case again in 2022. On 6 March 2022 we reached a settlement with the Australian Securities and Investment Commission (ASIC) regarding the disclosure of the impairment of Rio Tinto Coal Mozambique (RTCM), which was reflected in Rio Tinto’s 2012 year-end accounts. As part of this court approved settlement, we paid a A$750,000 penalty for a single contravention of its continuous disclosure obligations in the period 21 December 2012 to 17 January 2013, immediately preceding the impairment announcement. As part of this court approved settlement between ASIC and Rio Tinto, there were no findings of fraud or any systemic or widespread failure by Rio Tinto. The case against Tom Albanese and Guy Elliott brought by ASIC has been wholly dismissed. 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. At 30 June 2022, the outcomes of these matters remain uncertain, but they could ultimately expose the Group to material financial cost. We believe these cases are unwarranted and will defend the allegations vigorously. No provisions have been recognised for these cases however a dedicated Board committee continues to monitor the progress of these matters, as appropriate. 10. Commitments and contingencies (continued) Other contingent liabilities The Group is in the process of modernising agreements with Traditional Owner groups as outlined in our response to the Juukan Gorge incident. We have provided for our best estimate of historical claims; however, the process is incomplete and it is possible that further claims could arise relating to past events. Close-down and restoration provisions are not recognised for those operations that have no known restrictions on their lives as the date of closure cannot be reliably estimated. This applies primarily to Canadian aluminium smelters which are not dependent upon a specific orebody and have access to indefinite-lived power from owned hydro-power stations with water rights permitted by local governments. In these instances a closure obligation may exist at the reporting date; however, due to the indefinite nature of asset lives it is not possible to arrive at a sufficiently reliable estimate for the purposes of recognising a provision. Close-down and restoration provisions are recognised at these operations for separately identifiable closure activities which can be reasonably estimated, such as the demolition and removal of fixed structures after a pre-determined period, refer to note 8. Any contingent liability for these assets will crystallise into a closure provision if and when a decision is taken to cease operations. |
Non-controlling interests mater
Non-controlling interests material to the Group | 6 Months Ended |
Jun. 30, 2022 | |
Equity1 [Abstract] | |
Non-controlling interests material to the Group | 11. Non-controlling interests material to the Group Since 31 December 2021 the only significant changes at subsidiaries that have non-controlling interest that are material to the Group related to Turquoise Hill Resources Limited (Turquoise Hill). 11. Non-controlling interests material to the Group (continued) Retained earnings Non-controlling interests US$m US$m Change in equity interest held by Rio Tinto - interest accrued in 2022 (between 1 January and waiver date) 6 (6) - total accrued interest on funding balances waived on 25 January 2022 (490) 490 (484) 484 Equity issued to owners of non-controlling interests - funding balance principal waived on 25 January 2022 (711) 711 - equity issued to owners of non-controlling interests (subsidiaries other than Turquoise Hill) — 22 (711) 733 |
Events after the balance sheet
Events after the balance sheet date | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Events after the balance sheet date | 12. Events after the balance sheet date On 20 July 2022 we announced that agreement had been reached with the Australian Taxation Office (ATO) on all tax matters in dispute. We also reached agreement with the Inland Revenue Authority of Singapore in relation to transfer pricing for the same historical years (2010 to 2021). In the second half of 2022, we will pay additional tax of A$613 million to the ATO, relating to this agreement. This was fully provided for at 30 June 2022. There were no other significant events after the balance sheet date requiring disclosure. |
Segmental information (Tables)
Segmental information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Summary of operating segments | The Group's reportable segments are based on principal Product Groups (PGs) and are consistent with the internal reporting structure as at 30 June 2022. Business units (BUs) are allocated to PGs based on management structure. The reportable segments are described as follows: Reportable segment Principal activities Iron Ore Iron ore mining, salt and gypsum production in Western Australia. Aluminium Bauxite mining; alumina refining; aluminium smelting. Copper Mining and refining of copper, gold, silver, molybdenum and other by-products; exploration activities together with the Simandou iron ore project, which is the responsibility of the Copper product group chief executive. Minerals Includes businesses with products such as borates, lithium, titanium dioxide feedstock together with the Iron Ore Company of Canada (iron ore mining and iron concentrate/pellet production). Also includes diamond mining, sorting and marketing. 3. Segmental information (continued) Six months ended 30 June 2022 Gross product sales (a) US$m Underlying EBITDA (b) US$m Underlying earnings (c) US$m Capital expenditure (d) US$m Iron Ore 16,610 10,395 6,461 1,472 Aluminium 7,796 2,866 1,547 681 Copper 3,547 1,487 543 867 Minerals 3,403 1,259 420 268 Reportable segments total 31,356 16,007 8,971 3,288 Other Operations 107 (78) (167) 9 Inter-segment transactions (149) (1) — Product group total 31,314 15,928 8,804 3,297 Other items — 41 Share of equity accounted units (1,539) — (193) Proceeds from disposal of property, plant and equipment — 1 Central pension costs, share-based payments & insurance & derivatives 265 237 Restructuring, project and one-off costs (86) (61) Central costs (397) (363) Central exploration and evaluation (113) (95) Net interest — 105 — Consolidated sales revenue/Capital expenditure 29,775 3,146 Underlying EBITDA/Underlying Earnings 15,597 8,627 3. Segmental information (continued) Six months ended 30 June 2021 Gross product sales (a) US$m Underlying EBITDA (b) US$m Underlying earnings (c) US$m Capital expenditure (d) US$m Iron Ore 21,707 16,060 10,216 1,912 Aluminium 5,932 1,924 921 524 Copper 3,779 2,048 885 750 Minerals 3,270 1,398 498 209 Reportable segments total 34,688 21,430 12,520 3,395 Other Operations 85 (4) (51) — Inter-segment transactions (145) (6) (3) — Product group total 34,628 21,420 12,466 3,395 Other items — 35 Share of equity accounted units (1,545) — (120) Proceeds from disposal of property, plant and equipment — 26 Central pensions, share-based payments, insurance and derivatives 119 120 Restructuring, project and one-off costs (36) (23) Central costs (346) (294) Central exploration and evaluation (120) (100) Net interest (3) Consolidated sales revenue/Capital expenditure 33,083 3,336 Underlying EBITDA/ Underlying Earnings 21,037 12,166 (a) Gross product sales include the sales revenue of equity accounted units on a proportionate 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 product sales. (b) Underlying EBITDA (calculated on page F-13) is reported to provide greater understanding of the underlying business performance of Rio Tinto's operations. It represents profit before tax, net finance items, depreciation and amortisation excluding the EBITDA impact of the same items that are excluded in arriving at underlying earnings (as defined below). (c) Underlying earnings (calculated on page F-14) represent net earnings attributable to the owners of Rio Tinto, adjusted to exclude items, which do not reflect the underlying performance of the Group’s operations. Underlying earnings and net earnings both represent amounts attributable to owners of Rio Tinto. Exclusions from underlying earnings relating to equity accounted units are stated after tax and included in “Pre-tax” earnings, consistent with the requirements of the equity accounting method. Exclusions from underlying earnings are those gains and losses, that individually, or in aggregate with similar items, are of a nature and size to require exclusion in order to provide additional insight into underlying business performance. 3. Segmental information (continued) The following items are excluded from net earnings in arriving at underlying earnings in each period irrespective of materiality: – Net gains/(losses) on disposal of interests in businesses. – Impairment charges and reversals. – Profit/(loss) after tax from discontinued operations. – Exchange and derivative gains and losses. This exclusion includes exchange gains/(losses) on external net cash and intragroup balances, unrealised gains/(losses) on currency and interest rate derivatives not qualifying for hedge accounting, unrealised gains/(losses) on certain commodity derivatives not qualifying for hedge accounting, and unrealised gains/(losses) on embedded derivatives not qualifying for hedge accounting. – Adjustments to closure provisions where the adjustment is associated to an impairment charge and for legacy sites where the disturbance or environmental contamination relates to the pre-acquisition period. (d) 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. |
Segmental information - addit_2
Segmental information - additional information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of operating segments [abstract] | |
Consolidated revenue by destination | Geographical analysis (by destination) Consolidated sales revenue by destination (a) Six months ended 30 June 2022 2021 2022 2021 China 52.1 % 59.9 % 15,521 19,805 United States of America 16.3 % 11.5 % 4,848 3,816 Asia (excluding China and Japan) 9.1 % 9.5 % 2,698 3,157 Japan 6.8 % 7.2 % 2,039 2,373 Europe (excluding UK) 6.7 % 5.0 % 1,995 1,667 Canada 3.1 % 2.4 % 933 793 Australia 2.0 % 1.6 % 596 519 UK 0.4 % 0.5 % 133 166 Other countries 3.5 % 2.4 % 1,012 787 Consolidated sales revenue 100.0 % 100.0 % 29,775 33,083 (a) Consolidated sales revenue by geographical destination is based on the ultimate country of the product's destination, if known. Where the ultimate destination is not known, we have defaulted to the shipping address of the customer. Rio Tinto is domiciled in both the UK and Australia. |
Consolidated sales revenue by product | Product analysis (by revenue type) Six months ended 30 June 2022 Six months ended 30 June 2021 Consolidated sales revenue by product Revenue from contracts with customers Other revenue (a) US$m Consolidated sales revenue Revenue from contracts with customers US$m Other revenue (a) US$m Consolidated sales revenue Iron ore 17,547 91 17,638 21,964 1,108 23,072 Aluminium, alumina and bauxite 7,321 298 7,619 5,733 84 5,817 Copper 1,702 (38) 1,664 1,472 77 1,549 Industrial minerals (comprising titanium dioxide slag, borates and salt) 1,233 (3) 1,230 1,141 4 1,145 Gold 322 9 331 506 (6) 500 Diamonds 465 — 465 160 — 160 Other products (b) 829 (1) 828 827 13 840 Consolidated sales revenue 29,419 356 29,775 31,803 1,280 33,083 (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) “Other products” includes metallic co-products, molybdenum, silver and other commodities with immaterial revenues. |
Taxation (Tables)
Taxation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Major components of tax expense (income) [abstract] | |
Summary of prima facie tax reconciliation | Prima facie tax reconciliation Six months ended 30 June 2022 US$m 2021 US$m Profit before taxation 12,315 18,049 Deduct: share of profit after tax of equity accounted units (a) (468) (556) Parent companies' and subsidiaries' profit before tax 11,847 17,493 Prima facie tax payable at UK rate of 19% (2021: 19%) (b) 2,251 3,324 Higher rate of taxation of 30% on Australian underlying earnings (2021: 30%) 924 1,609 Other tax rates applicable outside the UK and Australia on underlying earnings 60 77 Impact of items excluded in arriving at underlying earnings (c) : – Losses/gains on foreign exchange and on derivatives (61) (34) – Losses from increases to closure estimates (non-operating and fully impaired sites) 6 (9) – Utilisation of capital losses on the gain recognised by Kitimat relating to LNG Canada's project (13) — Impact of changes in tax rates and laws (12) — Recognition of previously unrecognised deferred tax assets (d) (209) (77) Write-down of previously recognised deferred tax assets 8 8 Adjustments in respect of prior periods (e) (137) 43 Other items 85 40 Total taxation charge (a) 2,902 4,981 (a) 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$289 million (30 June 2021: US$318 million). (b) As a UK headquartered and listed Group, the reconciliation of expected tax on accounting profit to tax charge uses the UK corporation tax rate to calculate the prima facie tax payable. Rio Tinto is also listed in Australia, and the reconciliation includes the impact of the higher tax rate in Australia where a significant proportion of the Group's profits are currently earned. The impact of other tax rates applicable outside the UK and Australia is also included. The weighted average statutory corporation tax rate on profit before tax is approximately 29% (30 June 2021: 29%). (c) The impact for each item includes the effect of tax rates applicable outside the UK. (d) In the period to 30 June 2022 and 30 June 2021 the recognition of previously unrecognised deferred tax assets relates to the recognition of prior year deferred tax assets at Oyu Tolgoi due to improved deferred tax asset recovery expectations. (e) In the period to 30 June 2022, adjustments in respect of prior periods includes amounts related to the settlement of all tax disputes with the Australian Tax Office for the years 2010 to 2021. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of cash and cash equivalents | Closing cash and cash equivalents less overdrafts for the purposes of the cash flow statement differs from cash and cash equivalents on the Group balance sheet as per the following reconciliation: Closing cash and cash equivalents less overdrafts 30 June 31 December 30 June US$m US$m US$m Balance per Group balance sheet 11,412 12,807 14,027 Bank overdrafts repayable on demand (unsecured) (3) (2) (4) Balance per Group cash flow statement 11,409 12,805 14,023 |
Provisions including post-ret_2
Provisions including post-retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of other provisions [abstract] | |
Summary of provisions including post-retirement benefits | Pensions and post-retirement healthcare Other employee entitlements (a) Close-down and restoration/ environmental (b) Other Total US$m US$m US$m US$m US$m Opening Balance 2,098 394 14,542 1,002 18,036 Change in accounting policy (c) — — — 17 17 Revision to opening balance 2,098 394 14,542 1,019 18,053 Adjustment on currency translation (20) (19) (514) (34) (587) Adjustments to mining properties/right of use assets: – increases to existing and new provisions (d) — — 345 — 345 Charged/(credited) to profit: – increases to existing and new provisions (d) 62 57 206 200 525 – unused amounts reversed — (10) (18) (26) (54) – exchange losses on provisions — — 24 1 25 – amortisation of discount (d) — — 503 1 504 Utilised in the period (66) (56) (256) (51) (429) Re-measurement gains recognised in other comprehensive income (739) — — — (739) Transfers and other movements — — 3 (14) (11) Closing balance 1,335 366 14,835 1,096 17,632 Balance sheet analysis: Current 68 293 1,145 802 2,308 Non-current 1,267 73 13,690 294 15,324 Total 1,335 366 14,835 1,096 17,632 (a) The provision for other employee entitlements includes a provision for long service leave of US$275 million (31 December 2021: US$272 million), based on the relevant entitlements in certain Group operations and includes US$31 million (31 December 2021: US$60 million) of provision for redundancy and severance payments. (b) Close-down, restoration and environmental liabilities at 30 June 2022 have not been adjusted for closure related receivables amounting to US$391 million (31 December 2021: US$410 million) due from the ERA trust fund and other financial assets held for the purposes of meeting closure obligations. These are included within “Receivables and other assets” on the balance sheet. (c) The way we calculate the cost of fulfilling a contract when assessing whether it is onerous has changed with the adoption of the amendments of IAS 37 (refer to note 2). This has led to an increase in the opening provision by US$17 million. (d) Higher inflation has driven increases in closure and restoration/environmental liabilities. The Income Statement charge for amortisation of discount of US$503 million ( 30 June 2021 : US$207 million ) incorporates inflation expectations for 2022 as at the start of the year. We also recorded adjustments to mining properties and charges within operating costs of US$360 million and US$180 million respectively, reflecting changes in forecast cash flows due to our current outlook on inflation being in excess of expectations at the start of the year. |
Financial instruments (Tables)
Financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Summary of fair value of financial instruments | The table below shows the classifications of financial instruments carried at fair value by valuation method in accordance with IFRS 13 at 30 June 2022 and 31 December 2021: At 30 June 2022 At 31 December 2021 Held at fair value Held at fair value Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Level 1 (a) US$m Level 2 (b) US$m Level 3 (c) US$m Assets Cash and cash equivalents (d) 3,916 — — 4,138 — — Investments in equity shares and funds 76 — 63 64 — 53 Other investments, including loans (e) 2,326 — 254 2,422 — 238 Trade and other financial receivables (f) 3 1,365 — 1 1,163 — Derivatives (net) Forward contracts and option contracts: designated as hedges (g) — — (148) — — (125) Forward contracts and option contracts, not designated as hedges (g) — 32 17 — (131) 11 Derivatives related to net cash — (566) — — (101) — Liabilities Trade and other financial payables — (80) — — (67) — Total 6,321 751 186 6,625 864 177 (b) Valuation is based on inputs that are observable for the financial instruments, which include quoted prices for similar instruments or identical instruments in markets which are not considered to be active, or inputs, either directly or indirectly based on observable market data. (c) Valuation is based on inputs that cannot be observed using market data (unobservable inputs). The change in valuation of our level 3 instruments for the six months to 30 June 2022 is below: Level 3 financial assets and liabilities US$m Opening balance 177 Currency translation adjustments (8) Total realised gains/(losses) included in: – consolidated sales revenue 11 – net operating costs (31) Total unrealised gains included in: – net operating costs 32 Total unrealised losses transferred into other comprehensive income through cash flow hedges (60) Additions to financial instruments 36 Disposals/maturity of financial instruments 29 Closing balance 186 Net gains included in the income statement for assets and liabilities held at period end 20 (d) Our "cash and cash equivalents" of US$11,412 million, includes US$3,916 million relating to 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. (f) Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes between the provisional price and the final price recorded separately within “Other revenue”. The selling price can be measured reliably for the Group's products, as it operates in active and freely traded commodity markets. At 30 June 2022, US$1,155 million (31 December 2021: US$1,114 million) of provisionally priced receivables were recognised. (g) Level 3 derivatives consist of derivatives embedded in electricity purchase contracts linked to the LME, midwest premium and billet premium with terms expiring between 2025 and 2036 (31 December 2021: 2025 and 2036). The techniques used to value our material fair value assets/(liabilities) categorised under Level 2 and Level 3 are summarised below: Description Fair Value Valuation technique Significant Inputs Level 2 Interest rate swaps (257) Discounted cash flows Applicable market quoted swap yield curves Cross currency interest rate swaps (309) Discounted cash flows Applicable market quoted swap yield curves Provisionally priced receivables 1,155 Closely related listed product Applicable forward quoted metal price Level 3 Derivatives embedded in electricity contracts (178) Discounted cash flows/option model LME forward aluminium price Royalty receivables 235 Discounted cash flows Forward commodity price The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which approximates their fair value at 30 June 2022 and 31 December 2021. The fair values of our remaining financial instruments approximate their carrying values because of their short maturity, or because they carry floating rates of interest. 30 June 2022 31 December 2021 Carrying Fair Carrying Fair Borrowings (including overdrafts) 11,587 11,997 12,168 13,904 |
Summary of changes in the fair value of Level 3 financial assets and financial liabilities | The change in valuation of our level 3 instruments for the six months to 30 June 2022 is below: Level 3 financial assets and liabilities US$m Opening balance 177 Currency translation adjustments (8) Total realised gains/(losses) included in: – consolidated sales revenue 11 – net operating costs (31) Total unrealised gains included in: – net operating costs 32 Total unrealised losses transferred into other comprehensive income through cash flow hedges (60) Additions to financial instruments 36 Disposals/maturity of financial instruments 29 Closing balance 186 Net gains included in the income statement for assets and liabilities held at period end 20 |
Non-controlling interests mat_2
Non-controlling interests material to the Group (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity1 [Abstract] | |
Reallocation of net asset value | A reallocation of the net asset value attribution between owners of Oyu Tolgoi has been recorded in the Group Statement of Changes in Equity for the six months ended 30 June 2022 by reducing equity attributable owners of Rio Tinto and increasing equity attributable to non-controlling interests: Retained earnings Non-controlling interests US$m US$m Change in equity interest held by Rio Tinto - interest accrued in 2022 (between 1 January and waiver date) 6 (6) - total accrued interest on funding balances waived on 25 January 2022 (490) 490 (484) 484 Equity issued to owners of non-controlling interests - funding balance principal waived on 25 January 2022 (711) 711 - equity issued to owners of non-controlling interests (subsidiaries other than Turquoise Hill) — 22 (711) 733 |
Changes in accounting policies
Changes in accounting policies - Additional information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Other Disclosures [Line Items] | ||||
Equity | $ (57,098) | $ (56,590) | $ (58,169) | $ (51,903) |
Adjustment for transition to new accounting pronouncements | ||||
Other Disclosures [Line Items] | ||||
Equity | $ 17 |
Segmental information - Summary
Segmental information - Summary of performance of operating segments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | $ 29,775 | $ 33,083 |
Underlying EBITDA | 15,597 | 21,037 |
Underlying earnings | 8,627 | 12,166 |
– attributable to owners of Rio Tinto (net earnings) | 8,908 | 12,313 |
Proceeds from disposal of property, plant and equipment | 1 | 26 |
Consolidated sales revenue/Capital expenditure | 3,146 | 3,336 |
Other Operations | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 107 | 85 |
Underlying EBITDA | (78) | (4) |
Underlying earnings | (167) | (51) |
Capital expenditure | 9 | 0 |
Product group | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 31,314 | 34,628 |
Underlying EBITDA | 15,928 | 21,420 |
Underlying earnings | 8,804 | 12,466 |
Capital expenditure | 3,297 | 3,395 |
Other items | ||
Disclosure of operating segments [line items] | ||
Capital expenditure | 41 | 35 |
Share of equity accounted units | ||
Disclosure of operating segments [line items] | ||
Share of equity accounted units | (1,539) | (1,545) |
Capital expenditure | (193) | (120) |
Central pension costs, share-based payments & insurance & derivatives | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | 265 | 119 |
– attributable to owners of Rio Tinto (net earnings) | 237 | 120 |
Restructuring, project and one-off costs | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | (86) | (36) |
– attributable to owners of Rio Tinto (net earnings) | (61) | (23) |
Central costs | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | (397) | (346) |
– attributable to owners of Rio Tinto (net earnings) | (363) | (294) |
Central exploration and evaluation | ||
Disclosure of operating segments [line items] | ||
Underlying EBITDA | (113) | (120) |
– attributable to owners of Rio Tinto (net earnings) | (95) | (100) |
Net interest | ||
Disclosure of operating segments [line items] | ||
– attributable to owners of Rio Tinto (net earnings) | 105 | (3) |
Underlying earnings | ||
Disclosure of operating segments [line items] | ||
– attributable to owners of Rio Tinto (net earnings) | 8,627 | 12,166 |
Operating segments | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 31,356 | 34,688 |
Underlying EBITDA | 16,007 | 21,430 |
Underlying earnings | 8,971 | 12,520 |
Capital expenditure | 3,288 | 3,395 |
Operating segments | Iron Ore | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 16,610 | 21,707 |
Underlying EBITDA | 10,395 | 16,060 |
Underlying earnings | 6,461 | 10,216 |
Capital expenditure | 1,472 | 1,912 |
Operating segments | Aluminium | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 7,796 | 5,932 |
Underlying EBITDA | 2,866 | 1,924 |
Underlying earnings | 1,547 | 921 |
Capital expenditure | 681 | 524 |
Operating segments | Copper | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 3,547 | 3,779 |
Underlying EBITDA | 1,487 | 2,048 |
Underlying earnings | 543 | 885 |
Capital expenditure | 867 | 750 |
Operating segments | Minerals | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | 3,403 | 3,270 |
Underlying EBITDA | 1,259 | 1,398 |
Underlying earnings | 420 | 498 |
Capital expenditure | 268 | 209 |
Inter-segment transactions | ||
Disclosure of operating segments [line items] | ||
Consolidated sales revenue | (149) | (145) |
Underlying EBITDA | (1) | (6) |
Underlying earnings | $ 0 | $ (3) |
Segmental information - Reconci
Segmental information - Reconciliation of underlying EBITDA to profit after taxation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of operating segments [line items] | ||
Underlying EBITDA | $ 15,597 | $ 21,037 |
Taxation in subsidiaries and finance items in equity accounted units | (2,902) | (4,981) |
Gains recognised by Kitimat relating to LNG Canada's project | 116 | 0 |
Gains/(Losses) on embedded commodity derivatives not qualifying for hedge accounting (including foreign exchange) | 14 | (2) |
Increase in closure estimates (non-operating and fully impaired sites) | (43) | (175) |
Profit before taxation | 12,315 | 18,049 |
Unconsolidated subsidiaries | ||
Disclosure of operating segments [line items] | ||
Depreciation and amortisation in subsidiaries and equity accounted units | (242) | (249) |
Taxation in subsidiaries and finance items in equity accounted units | (363) | (365) |
Subsidiaries | ||
Disclosure of operating segments [line items] | ||
Depreciation and amortisation in subsidiaries and equity accounted units | (2,405) | (2,253) |
Finance items in subsidiaries | (359) | 56 |
Taxation in subsidiaries and finance items in equity accounted units | $ (2,902) | $ (4,981) |
Segmental information - Recon_2
Segmental information - Reconciliation of underlying earnings to net earnings (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Exchange and derivative gains/(losses), pre-tax [abstract] | ||
Underlying earnings, pre-tax | $ 12,044 | |
Foreign exchange gains on external net cash, intragroup balances and derivatives, pre-tax | 383 | |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, pre-tax | (194) | |
Gains/(Losses) on embedded commodity derivatives not qualifying for hedge accounting, pre-tax | 9 | |
Gains recognised by Kitimat relating to LNG Canada's project, pre-tax | 116 | $ 0 |
Losses from movements to closure estimates (non-operating and fully impaired sites), pre-tax | (43) | |
Items excluded from underlying earnings pre-tax | 271 | |
Profit before taxation | 12,315 | 18,049 |
Exchange and derivative gains/(losses), tax [abstract] | ||
Underlying earnings, tax | (2,918) | |
Foreign exchange gains on external net cash, intragroup balances and derivatives, tax | (15) | |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, tax | 42 | |
Gains/(losses) on embedded commodity derivatives not qualifying for hedge accounting, tax | (4) | |
Gains recognised by Kitimat relating to LNG Canada's project, tax | (9) | |
Losses from movements to closure estimates (non-operating and fully impaired sites, tax | 2 | |
Total excluded from underlying earnings, tax | 16 | |
Taxation | (2,902) | (4,981) |
Exchange and derivative gains/(losses), non-controlling interests [abstract] | ||
Underlying earnings attributable to noncontrolling interests | (499) | |
Foreign exchange gains on external net cash, intragroup balances and derivatives, noncontrolling interests | 0 | |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, noncontrolling interests | (2) | |
Gains/(losses) on embedded commodity derivatives not qualifying for hedge accounting, noncontrolling interests | (4) | |
Gains recognised by Kitimat relating to LNG Canada's project, noncontrolling interests | 0 | |
Losses from movements to closure estimates (non-operating and fully impaired sites, noncontrolling interests | 0 | |
Total excluded from underlying earnings, noncontrolling interests | (6) | |
Profit (loss), attributable to non-controlling interests | (505) | (755) |
Exchange and derivative gains/(losses), net [abstract] | ||
Underlying earnings, net | 8,627 | 12,166 |
Foreign exchange gains on external net cash, intragroup balances and derivatives, net | 368 | 347 |
Losses on currency and interest rate derivatives not qualifying for hedge accounting, net | (154) | (45) |
Gains/(losses) on embedded commodity derivatives not qualifying for hedge accounting, net | 1 | (22) |
Gains recognised by Kitimat relating to LNG Canada's project, net | 107 | 0 |
Losses from movements to closure estimates (non-operating and fully impaired sites, net | (41) | (133) |
Total excluded from underlying earnings, net | 281 | 147 |
Net earnings, attributable to owners of Rio Tinto | 8,908 | 12,313 |
Net foreign exchange gain | 508 | 351 |
Net foreign exchange loss | $ (140) | $ (4) |
Segmental information - addit_3
Segmental information - additional information - Disclosure of sales revenue by destination (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 100% | 100% |
Consolidated sales revenue | $ 29,775 | $ 33,083 |
China | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 52.10% | 59.90% |
Consolidated sales revenue | $ 15,521 | $ 19,805 |
UNITED STATES | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 16.30% | 11.50% |
Consolidated sales revenue | $ 4,848 | $ 3,816 |
Asia (excluding China and Japan) | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 9.10% | 9.50% |
Consolidated sales revenue | $ 2,698 | $ 3,157 |
Japan | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 6.80% | 7.20% |
Consolidated sales revenue | $ 2,039 | $ 2,373 |
Europe (excluding UK) | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 6.70% | 5% |
Consolidated sales revenue | $ 1,995 | $ 1,667 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 3.10% | 2.40% |
Consolidated sales revenue | $ 933 | $ 793 |
Australia | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 2% | 1.60% |
Consolidated sales revenue | $ 596 | $ 519 |
UK | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 0.40% | 0.50% |
Consolidated sales revenue | $ 133 | $ 166 |
Other countries | ||
Disclosure of geographical areas [line items] | ||
Sales revenue by destination (as a percent) | 3.50% | 2.40% |
Consolidated sales revenue | $ 1,012 | $ 787 |
Segmental information - addit_4
Segmental information - additional information - Consolidated sales revenue by product (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | $ 29,419 | $ 31,803 |
Other Revenue | 356 | 1,280 |
Consolidated sales revenue | 29,775 | 33,083 |
Iron Ore | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 17,547 | 21,964 |
Other Revenue | 91 | 1,108 |
Consolidated sales revenue | 17,638 | 23,072 |
Aluminium, alumina and bauxite | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 7,321 | 5,733 |
Other Revenue | 298 | 84 |
Consolidated sales revenue | 7,619 | 5,817 |
Copper | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 1,702 | 1,472 |
Other Revenue | (38) | 77 |
Consolidated sales revenue | 1,664 | 1,549 |
Industrial minerals (comprising titanium dioxide slag, borates and salt) | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 1,233 | 1,141 |
Other Revenue | (3) | 4 |
Consolidated sales revenue | 1,230 | 1,145 |
Gold | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 322 | 506 |
Other Revenue | 9 | (6) |
Consolidated sales revenue | 331 | 500 |
Diamonds | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 465 | 160 |
Other Revenue | 0 | 0 |
Consolidated sales revenue | 465 | 160 |
Other products | ||
Disclosure of products and services [line items] | ||
Revenue from contracts with customers | 829 | 827 |
Other Revenue | (1) | 13 |
Consolidated sales revenue | $ 828 | $ 840 |
Taxation - Summary of prima fac
Taxation - Summary of prima facie tax reconciliation (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Major components of tax expense (income) [abstract] | ||
Profit before taxation | $ 12,315 | $ 18,049 |
Deduct: share of profit after tax of equity accounted units | (468) | (556) |
Parent companies' and subsidiaries' profit before tax | $ 11,847 | $ 17,493 |
Applicable tax rate | 19% | 19% |
Prima facie tax payable at UK rate of 19% (2021: 19%) | $ 2,251 | $ 3,324 |
Higher rate of taxation of 30% on Australian underlying earnings (2021: 30%) | 924 | 1,609 |
Other tax rates applicable outside the UK and Australia on underlying earnings | 60 | 77 |
Impact of items excluded in arriving at underlying earnings: | ||
– Losses/gains on foreign exchange and on derivatives | (61) | (34) |
– Losses from increases to closure estimates (non-operating and fully impaired sites) | 6 | (9) |
– Utilisation of capital losses on the gain recognised by Kitimat relating to LNG Canada's project | (13) | 0 |
Impact of changes in tax rates and laws | (12) | 0 |
Recognition of previously unrecognised deferred tax assets | (209) | (77) |
Write-down of previously recognised deferred tax assets | 8 | 8 |
Adjustments in respect of prior periods | (137) | 43 |
Other items | 85 | 40 |
Total taxation charge | 2,902 | 4,981 |
Income tax on share of profit of equity accounted units | $ (289) | $ (318) |
Weighted average statutory tax rate | 29% | 29% |
Acquisitions - Additional infor
Acquisitions - Additional information (Detail) - Rincon $ in Millions | Mar. 29, 2022 USD ($) |
Disclosure Of Acquisitions And Disposals [Line Items] | |
Consideration transferred | $ 825 |
Goodwill | 0 |
Exploration and evaluation assets | |
Disclosure Of Acquisitions And Disposals [Line Items] | |
Consideration transferred | $ 822 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||||
Balance per Group balance sheet | $ 11,412 | $ 12,807 | $ 14,027 | |
Bank overdrafts repayable on demand (unsecured) | (3) | (2) | (4) | |
Balance per Group cash flow statement | $ 11,409 | $ 12,805 | $ 14,023 | $ 10,381 |
Provisions including post-ret_3
Provisions including post-retirement benefits - Summary of provisions, including post-retirement benefits (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | $ 18,053 | ||
Adjustment on currency translation | (587) | ||
Adjustments to mining properties/right of use assets: | |||
increases to existing and new provisions | 345 | ||
Charged/(credited) to profit: | |||
-Increases to existing and new provisions | 525 | ||
– unused amounts reversed | (54) | ||
– exchange losses on provisions | 25 | ||
-amortisation of discount | 504 | ||
Utilised in the period | (429) | ||
Re-measurement gains recognised in other comprehensive income | (739) | ||
Transfers and other movements | (11) | ||
Provisions (including post-retirement benefits), ending balance | 17,632 | $ 18,053 | |
Balance sheet analysis: | |||
Current | 2,308 | 2,106 | |
Non-current | 15,324 | 15,930 | |
Total | 17,632 | 18,053 | |
Previously stated | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 18,036 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 18,036 | ||
Balance sheet analysis: | |||
Total | 18,036 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 17 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 17 | ||
Balance sheet analysis: | |||
Total | 17 | ||
Pensions and post-retirement healthcare | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 2,098 | ||
Adjustment on currency translation | (20) | ||
Adjustments to mining properties/right of use assets: | |||
increases to existing and new provisions | 0 | ||
Charged/(credited) to profit: | |||
-Increases to existing and new provisions | 62 | ||
– unused amounts reversed | 0 | ||
– exchange losses on provisions | 0 | ||
-amortisation of discount | 0 | ||
Utilised in the period | (66) | ||
Re-measurement gains recognised in other comprehensive income | (739) | ||
Transfers and other movements | 0 | ||
Provisions (including post-retirement benefits), ending balance | 1,335 | 2,098 | |
Balance sheet analysis: | |||
Current | 68 | ||
Non-current | 1,267 | ||
Total | 1,335 | 2,098 | |
Pensions and post-retirement healthcare | Previously stated | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 2,098 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 2,098 | ||
Balance sheet analysis: | |||
Total | 2,098 | ||
Pensions and post-retirement healthcare | Increase (decrease) due to changes in accounting policy required by IFRSs | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 0 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 0 | ||
Balance sheet analysis: | |||
Total | 0 | ||
Other employee entitlements | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 394 | ||
Adjustment on currency translation | (19) | ||
Adjustments to mining properties/right of use assets: | |||
increases to existing and new provisions | 0 | ||
Charged/(credited) to profit: | |||
-Increases to existing and new provisions | 57 | ||
– unused amounts reversed | (10) | ||
– exchange losses on provisions | 0 | ||
-amortisation of discount | 0 | ||
Utilised in the period | (56) | ||
Re-measurement gains recognised in other comprehensive income | 0 | ||
Transfers and other movements | 0 | ||
Provisions (including post-retirement benefits), ending balance | 366 | 394 | |
Balance sheet analysis: | |||
Current | 293 | ||
Non-current | 73 | ||
Total | 366 | 394 | |
Provision for long service leave | 275 | 272 | |
Provisions for redundancy and severance payments | 31 | 60 | |
Other employee entitlements | Previously stated | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 394 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 394 | ||
Balance sheet analysis: | |||
Total | 394 | ||
Other employee entitlements | Increase (decrease) due to changes in accounting policy required by IFRSs | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 0 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 0 | ||
Balance sheet analysis: | |||
Total | 0 | ||
Close down and restoration/ environmental | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 14,542 | ||
Adjustment on currency translation | (514) | ||
Adjustments to mining properties/right of use assets: | |||
increases to existing and new provisions | 345 | ||
Charged/(credited) to profit: | |||
-Increases to existing and new provisions | 206 | ||
– unused amounts reversed | (18) | ||
– exchange losses on provisions | 24 | ||
Utilised in the period | (256) | ||
Re-measurement gains recognised in other comprehensive income | 0 | ||
Transfers and other movements | 3 | ||
Provisions (including post-retirement benefits), ending balance | 14,835 | 14,542 | |
Balance sheet analysis: | |||
Current | 1,145 | ||
Non-current | 13,690 | ||
Total | 14,835 | 14,542 | |
Closure related receivables | 391 | 410 | |
Close down and restoration/ environmental | Amortisation of discount | |||
Charged/(credited) to profit: | |||
-amortisation of discount | 503 | $ 207 | |
Close down and restoration/ environmental | Adjustments to mining properties | |||
Charged/(credited) to profit: | |||
-amortisation of discount | 360 | ||
Close down and restoration/ environmental | Operating cost | |||
Charged/(credited) to profit: | |||
-amortisation of discount | 180 | ||
Close down and restoration/ environmental | Previously stated | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 14,542 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 14,542 | ||
Balance sheet analysis: | |||
Total | 14,542 | ||
Close down and restoration/ environmental | Increase (decrease) due to changes in accounting policy required by IFRSs | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 0 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 0 | ||
Balance sheet analysis: | |||
Total | 0 | ||
Other | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 1,019 | ||
Adjustment on currency translation | (34) | ||
Adjustments to mining properties/right of use assets: | |||
increases to existing and new provisions | 0 | ||
Charged/(credited) to profit: | |||
-Increases to existing and new provisions | 200 | ||
– unused amounts reversed | (26) | ||
– exchange losses on provisions | 1 | ||
-amortisation of discount | 1 | ||
Utilised in the period | (51) | ||
Re-measurement gains recognised in other comprehensive income | 0 | ||
Transfers and other movements | (14) | ||
Provisions (including post-retirement benefits), ending balance | 1,096 | 1,019 | |
Balance sheet analysis: | |||
Current | 802 | ||
Non-current | 294 | ||
Total | 1,096 | 1,019 | |
Other | Previously stated | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | 1,002 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 1,002 | ||
Balance sheet analysis: | |||
Total | 1,002 | ||
Other | Increase (decrease) due to changes in accounting policy required by IFRSs | |||
Disclosure of other provisions [Line Items] | |||
Provisions (including post-retirement benefits), beginning balance | $ 17 | ||
Charged/(credited) to profit: | |||
Provisions (including post-retirement benefits), ending balance | 17 | ||
Balance sheet analysis: | |||
Total | $ 17 |
Financial instruments - Summary
Financial instruments - Summary of fair value of financial instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 11,412 | $ 12,807 | $ 14,027 |
Investments in equity shares and funds | 3,392 | 3,504 | |
Net assets | 57,098 | 56,590 | |
Level 1 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 3,916 | 4,138 | |
Investments in equity shares and funds | 76 | 64 | |
Other investments, including loans | 2,326 | 2,422 | |
Trade and other financial receivables | 3 | 1 | |
Forward contracts and option contracts: designated as hedges | 0 | 0 | |
Forward contracts and option contracts, not designated as hedges | 0 | 0 | |
Derivatives related to net debt | 0 | 0 | |
Trade and other financial payables | 0 | 0 | |
Net assets | 6,321 | 6,625 | |
Level 2 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 0 | 0 | |
Investments in equity shares and funds | 0 | 0 | |
Other investments, including loans | 0 | 0 | |
Trade and other financial receivables | 1,365 | 1,163 | |
Forward contracts and option contracts: designated as hedges | 0 | 0 | |
Forward contracts and option contracts, not designated as hedges | 32 | (131) | |
Derivatives related to net debt | (566) | (101) | |
Trade and other financial payables | (80) | (67) | |
Net assets | 751 | 864 | |
Level 3 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 0 | 0 | |
Investments in equity shares and funds | 63 | 53 | |
Other investments, including loans | 254 | 238 | |
Trade and other financial receivables | 0 | 0 | |
Forward contracts and option contracts: designated as hedges | (148) | (125) | |
Forward contracts and option contracts, not designated as hedges | 17 | 11 | |
Derivatives related to net debt | 0 | 0 | |
Trade and other financial payables | 0 | 0 | |
Net assets | $ 186 | $ 177 |
Financial instruments - Summa_2
Financial instruments - Summary of changes in fair value of Level 3 financial assets and financial liabilities (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |
Currency translation adjustments | $ (587) |
Level 3 | |
Disclosure of detailed information about financial instruments [line items] | |
Opening balance | 177 |
Currency translation adjustments | (8) |
Total realised gains/(losses) included in consolidated sales revenue | 11 |
Total realised gains/(losses) included in net operating costs | (31) |
Total unrealised gains included in net operating costs | 32 |
Total unrealised losses transferred into other comprehensive income through cash flow hedges | (60) |
Additions to financial instruments | 36 |
Disposals/maturity of financial instruments | 29 |
Closing balance | 186 |
Net gains included in the income statement for assets and liabilities held at period end | $ 20 |
Financial instruments - Additio
Financial instruments - Additional information (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 11,412 | $ 12,807 | $ 14,027 |
Provisionally priced receivables | 1,155 | 1,114 | |
Expected unconditional guaranteed royalty payments to be received | 146 | 136 | |
Expected unconditional guaranteed royalty payments to be received, unadjusted | $ 55 | ||
Percentage of change in coal spot price | 15% | ||
Level 3 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of change in coal spot price | 15% | ||
Increase in carrying value of forward contract due to coal spot price assumptions | $ 15 | 63 | |
Decrease in carrying value of forward contract due to decrease in spot price | (41) | (53) | |
Borrowings | 4,100 | 4,200 | |
Level 3 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | 0 | 0 | |
Borrowings | 4,300 | 4,400 | |
Level 3 | Aluminium forward contracts embedded in electricity purchase contracts | |||
Disclosure of detailed information about financial instruments [line items] | |||
Long-term embedded derivatives at fair value | 178 | 146 | |
Level 1 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Bonds, carrying value | 6,700 | 7,300 | |
Bonds, fair value | 7,000 | 8,700 | |
Level 1 | Fair value | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 3,916 | $ 4,138 |
Financial instruments - Summa_3
Financial instruments - Summary of valuation techniques and inputs (Details) - Fair value $ in Millions | Jun. 30, 2022 USD ($) |
Level 2 | Closely related listed product | Provisionally priced receivables | |
Disclosure of detailed information about financial instruments [line items] | |
Financial assets | $ 1,155 |
Level 3 | Discounted cash flow | Royalty receivables | |
Disclosure of detailed information about financial instruments [line items] | |
Financial assets | 235 |
Interest rate swaps | Level 2 | Discounted cash flow | |
Disclosure of detailed information about financial instruments [line items] | |
Financial liabilities | (257) |
Cross currency interest rate swaps | Level 2 | Discounted cash flow | |
Disclosure of detailed information about financial instruments [line items] | |
Financial liabilities | (309) |
Derivatives embedded in electricity contracts | Level 3 | Discounted cash flows/option model | |
Disclosure of detailed information about financial instruments [line items] | |
Financial liabilities | $ (178) |
Financial instruments - Carryin
Financial instruments - Carrying amounts and fair values (Detail) - Borrowings excluding overdrafts - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings (including overdrafts), carrying value | $ 11,587 | $ 12,168 |
Borrowings (including overdrafts), fair value | $ 11,997 | $ 13,904 |
Commitments and contingencies -
Commitments and contingencies - Additional information (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) | Mar. 06, 2022 AUD ($) | Dec. 31, 2021 USD ($) | |
Other Disclosures [Line Items] | |||
Capital commitments | $ 2,905 | $ 2,551 | |
Contractual capital commitments | 1,300 | 1,100 | |
Contingent liabilities indemnities and other performance guarantees | 275 | 441 | |
Penalty for single contravention of disclosure obligations | $ 750,000 | ||
Contractual payments | 10.5 | ||
Decarbonisation projects | |||
Other Disclosures [Line Items] | |||
Capital commitments | 7,500 | ||
Joint ventures | |||
Other Disclosures [Line Items] | |||
Capital commitments | $ 17 | $ 11 |
Non-controlling interests mat_3
Non-controlling interests material to the Group - Additional Information (Details) $ in Billions | Jan. 25, 2022 USD ($) |
Equity1 [Abstract] | |
Borrowings, amount forgiven | $ 2.4 |
Interest, amount forgiven | $ 1 |
Non-controlling interests mat_4
Non-controlling interests material to the Group - Reallocation of net asset value (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jan. 25, 2022 | Jan. 25, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disclosure of classes of share capital [line items] | ||||
Change in equity interest held by Rio Tinto | $ 0 | $ 0 | ||
Equity issued to holders of non-controlling interests | 22 | 28 | ||
Retained earnings | ||||
Disclosure of classes of share capital [line items] | ||||
Change in equity interest held by Rio Tinto | $ (490) | $ 6 | (484) | 37 |
Equity issued to holders of non-controlling interests | (711) | (711) | ||
Non-controlling interests | ||||
Disclosure of classes of share capital [line items] | ||||
Change in equity interest held by Rio Tinto | 490 | $ (6) | 484 | (37) |
Equity issued to holders of non-controlling interests | $ 711 | 733 | $ 28 | |
Non-controlling interests | Subsidiaries other than Turquoise Hill | ||||
Disclosure of classes of share capital [line items] | ||||
Equity issued to holders of non-controlling interests | $ 22 |
Events after the balance shee_2
Events after the balance sheet date - Narrative (Details) $ in Millions | Jul. 20, 2022 AUD ($) |
Transfer pricing agreement | Forecast | Provision for taxes other than income tax | Australian Taxation Office (ATO) | |
Entity Information [Line Items] | |
New provisions, other provisions | $ 613 |