Rio Tinto (NYSE: RIO) grows 2025 revenue and EBITDA but debt jumps on Arcadium deal
Filing Impact
Filing Sentiment
Form Type
20-F
Rio Tinto reported 2025 full-year results, with consolidated sales revenue of $57.6 billion, up from $53.7 billion in 2024. Underlying EBITDA rose 9% to $25.4 billion, driven by higher copper, bauxite, alumina and lithium volumes and a 5% reduction in operating unit costs.
Underlying earnings were stable at $10.9 billion, while net earnings fell to $10.0 billion from $11.6 billion as depreciation, finance costs and taxes increased. Net cash from operations grew to $16.8 billion, but net debt jumped to $14.4 billion after the $7.6 billion Arcadium Lithium acquisition and $11.4 billion of capital investment.
The company maintained a full-year ordinary dividend of 402 US cents per share, equal to a 60% payout of underlying earnings. Strategically, Rio Tinto highlighted ramp-up at Simandou in Guinea, record copper growth at Oyu Tolgoi, integration of its new lithium business, and continued focus on safety, decarbonisation and productivity through its Safe Production System.
Positive
- Stronger operating performance and growth exposure: 2025 consolidated sales revenue rose to $57.6 billion and underlying EBITDA increased 9% to $25.4 billion, supported by 8% copper-equivalent production growth, record copper at Oyu Tolgoi, and the Arcadium Lithium acquisition expanding future-facing commodity exposure.
- Consistent shareholder returns with disciplined capital policy: Rio Tinto maintained a 10-year record of paying 60% of underlying earnings as ordinary dividends, distributing 402 US cents per share (about $6.5 billion) in 2025 while still funding $11.4 billion of capital investment in major growth projects like Simandou.
Negative
- Higher leverage and lower net earnings: Net earnings declined from $11.6 billion to $10.0 billion, while net debt more than doubled to $14.4 billion due to the $7.6 billion Arcadium Lithium acquisition and elevated capital expenditure, increasing balance-sheet risk if commodity conditions weaken.
- Rising closure and environmental obligations: The provision for closure costs increased to $17.8 billion, reflecting new provisions, discount unwinding and currency effects, highlighting sizable long-term rehabilitation and legacy site commitments that will continue to require significant cash outflows.
Insights
Solid volume growth and portfolio moves, but higher leverage and flat earnings keep the picture balanced.
Rio Tinto delivered 2025 revenue of
However, underlying earnings were flat at
The group still generated
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 20-F
(Mark One)
| REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
or
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: | |||||
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
or
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report For the transition period from: to | |||||
Commission file number: | Commission file number: | ||||
ABN 96 004 458 404 | |||||
| (Exact Name of Registrant as Specified in Its Charter) | (Exact Name of Registrant as Specified in Its Charter) | ||||
England and Wales (Jurisdiction of Incorporation or Organization) | Victoria, (Jurisdiction of Incorporation or Organization) | ||||
(Address of Principal Executive Offices) | (Address of Principal Executive Offices) | ||||
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||
| * | Evidenced by American Depositary Receipts. Each American Depositary Share Represents one Rio Tinto plc Ordinary Shares of 10p each. | ||||
| ** | Not for trading, but only in connection with the listing of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission | ||||
Securities registered or to be registered pursuant to Section 12(g) of the Act:
| Title of Class | Title of Class Shares | ||||||||||
| None | None | ||||||||||
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
| Title of Class | Title of Class of Shares | ||||||||||
| None | None | ||||||||||
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period
covered by the annual report:
| Title of each class | Rio Tinto plc - Number | Rio Tinto Limited - Number | Title of each class | ||||||||
| Ordinary Shares of 10p each | Shares | ||||||||||
| DLC Dividend Share of 10p | 1 | 1 | DLC Dividend Share | ||||||||
| Special Voting Share of 10p | 1 | 1 | Special Voting Share | ||||||||
Indicate by check mark if the registrants are well-known seasoned issuers, as defined in rule 405 of the Securities Act.
If this report is an annual or transition report, indicate by check mark if the registrants are not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ☐ No ☒
Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such
reports), and (2) have been subject to such filing requirements for the past 90 days:
Indicate by check mark whether the registrants have submitted electronically every
Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during
the preceding 12 months (or for such shorter period that the registrants were required to submit such files).
Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, or emerging growth companies. See definition
of “large accelerated filer”, “accelerated filer” and “emerging growth company” and in Rule 12b-2 of the Exchange Act.:
| Accelerated Filer ☐ | Non-Accelerated Filer ☐ | |||||||
Emerging growth company | ||||||||
If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark
if the registrants have elected not to use the extended transition period for complying with any new or revised
financial accounting standards* provided pursuant to Section 13(a) of the Exchange Act. ☐
*The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrants have filed a report on and attestation to their management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued their audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the
registrants included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants' executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark which basis of accounting the registrants have used to prepare the financial statements included in this filing:
US GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒
Other ☐
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registrants have elected to follow:
Item 17 ☐ Item 18 ☐
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Act).
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(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)
Indicate by check mark whether the registrants have filed all documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
Yes ☐ No ☐
| Auditor Name | Auditor Location | Auditor Firm ID | ||||||
Annual Report on Form 20-F 2025
Annual Report on Form 20-F 2025 | i | riotinto.com |
Item | Form 20-F Caption | Location in this document | Page | |||
1 | Identity of directors, senior management and advisers | Not applicable | – | |||
2 | Offer statistics and expected timetable | Not applicable | – | |||
3 | Key information | |||||
3.A - [Reserved] | Not applicable | – | ||||
3.B – Capitalisation and indebtedness | Not applicable | – | ||||
3.C – Reasons for the offer and use of proceeds | Not applicable | – | ||||
3.D – Risk factors | Risk factors | 91-99 | ||||
4 | Information on the company | |||||
4.A – History and development of the company | Contents | Cover | ||||
2025 at a glance | 1 | |||||
Chair’s statement | 4 | |||||
From the Chief Executive | 5 | |||||
Strategic context | 6-7 | |||||
Our strategic framework | 8-9 | |||||
The story of our year | 10-11 | |||||
Key performance indicators | 14-15 | |||||
Chief Financial Officer’s statement | 16 | |||||
Financial review | 17-25 | |||||
Aluminium & Lithium | 26-27 | |||||
Copper | 28-29 | |||||
Iron Ore | 30-31 | |||||
Our approach to sustainability | 32-88 | |||||
Directors’ report – Additional statutory disclosure – Operating and financial review | 150 | |||||
Financial statements – Note 1 – Financial performance by segment – Note 5 – Acquisitions and disposals | 170-171 176-178 | |||||
Financial information by business unit | 267-269 | |||||
Shareholder information – Organisational structure – Nomenclature and financial data – History – Dual-listed companies structure | 336 336 336 336-337 | |||||
Additional information – US disclosure – Document on display – Contact details – Registered offices | 345 367 | |||||
4.B – Business overview | 2025 at a glance | 1 | ||||
Chair’s statement | 4 | |||||
From the Chief Executive | 5 | |||||
Strategic context | 6-7 | |||||
Our strategic framework | 8-9 | |||||
The story of our year | 10-11 | |||||
Key performance indicators | 14-15 | |||||
Chief Financial Officer’s statement | 16 | |||||
Financial review | 17-25 | |||||
Aluminium & Lithium | 26-27 | |||||
Copper | 28-29 | |||||
Iron Ore | 30-31 | |||||
Our approach to sustainability | 32-88 | |||||
Directors’ report – Additional statutory disclosure – Government regulations – Environmental regulations | 154 154 | |||||
Financial statements Note 6 – Revenue by destination and product | 179-180 | |||||
Metals and minerals production | 276-277 | |||||
Mineral Resources and Mineral Reserves | 278-279 | |||||
Qualified Persons | 280-281 | |||||
Mineral Reserves | 282-293 | |||||
Mineral Resources | 294-304 | |||||
Mines and production facilities | 305-325 | |||||
Additional information – US disclosure – Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934 | 342 | |||||
Annual Report on Form 20-F 2025 | ii | riotinto.com |
Item | Form 20-F Caption | Location in this document | Page | |||
4.C Organisational structure | Financial statements – Note 31 – Subsidiaries with material non-controlling interests – Note 32 – Principal joint operations – Note 33 – Entities accounted under the equity method Consolidated entity disclosure statement | 219 220 221-222 230-238 | ||||
Shareholder information – Organisational structure – Dual-listed companies structure | 336 336-337 | |||||
4.D – Property, plants and equipment | Key performance indicators | 14-15 | ||||
Financial review – Capital projects – Future options | 21-23 24-25 | |||||
Aluminium & Lithium | 26-27 | |||||
Copper | 28-29 | |||||
Iron Ore | 30-31 | |||||
Our approach to sustainability | 32-88 | |||||
Directors’ report – Additional statutory disclosure – Environmental regulations – Energy efficiency action | 154 154 | |||||
Financial statements Note 13 – Property, plant and equipment | 188-191 | |||||
Metals and minerals production | 276-277 | |||||
Mineral Resources and Mineral Reserves | 278-279 | |||||
Qualified Persons | 280-281 | |||||
Mineral Reserves | 282-293 | |||||
Mineral Resources | 294-304 | |||||
Mines and production facilities | 305-325 | |||||
Additional information – US disclosure – Summary disclosure of operations pursuant to Item 1303 of SK-1300 under Securities Act of 1933 | 349 | |||||
Additional information – US disclosure – Individual property disclosure pursuant to Item 1304 of SK-1300 under Securities Act of 1933 | 349-365 | |||||
Additional information – US disclosure – Internal controls disclosure pursuant to Item 1305 of SK-1300 under Securities Act of 1933 | 365 | |||||
See Exhibits 96.1-96.2 | – | |||||
4A | Unresolved staff comments | None | – | |||
5 | Operating and financial review and prospects | |||||
5.A – Operating results | Chair’s statement | 4 | ||||
Financial review | 17-25 | |||||
Aluminium & Lithium | 26-27 | |||||
Copper | 28-29 | |||||
Iron Ore | 30-31 | |||||
Our approach to sustainability | 32-88 | |||||
Directors’ report – Additional statutory disclosure – Operating and financial review – Government regulations – Environmental regulations | 150 154 154 | |||||
Financial statements – h. Climate change – Note 25 – Financial instruments and risk management | 161-164 204-208 | |||||
Financial information by business unit | 267-269 | |||||
Alternative performance measures | 270-274 | |||||
Annual Report on Form 20-F 2025 | iii | riotinto.com |
Item | Form 20-F Caption | Location in this document | Page | |||
5.B – Liquidity and capital resources | Financial review – Capital projects – Future options | 21-23 24-25 | ||||
Financial statements – Note 14 – Close-down, restoration and environmental provisions – Note 19 – Other provisions – Our capital and liquidity – Note 20 - Net debt – Note 21 – Borrowings – Note 22 – Leases – Note 23 – Cash and cash equivalents – Note 24 – Other financial assets and liabilities – Note 25 – Financial instruments and risk management – Note 29 – Post-retirement benefits – Note 37 – Contingencies and commitments | 191-195 198 199 200 200-201 202 203 203-204 204-208 213-218 225-227 | |||||
5.C – Research and development, patents and licenses, etc. | Our strategic framework | 8-9 | ||||
The story of our year | 10-11 | |||||
Our approach to sustainability - Environmentally committed | 46-52 | |||||
Directors’ report – Additional statutory disclosure – Exploration, research and development | 154 | |||||
Financial statements – Note 7 – Net operating costs (excluding items disclosed separately) – Note 13 – Property, plant and equipment – Impact of climate change on our business – Useful economic lives of our power generating assets | 180 188-191 191 | |||||
5.D – Trend information | 2025 at a glance | 1 | ||||
Chair’s statement | 4 | |||||
From the Chief Executive | 5 | |||||
Strategic context | 6-7 | |||||
Our strategic framework | 8-9 | |||||
The story of our year | 10-11 | |||||
Our continuing path to value creation | 12-13 | |||||
Key performance indicators | 14-15 | |||||
Chief Financial Officer’s statement | 16 | |||||
Financial review | 17-25 | |||||
Aluminium & Lithium | 26-27 | |||||
Copper | 28-29 | |||||
Iron Ore | 30-31 | |||||
5.E – Critical accounting estimates | Not Applicable | – | ||||
6 | Directors, senior management and employees | |||||
6.A – Directors and senior management | Directors’ report – Board of Directors – Executive Committee | 104-105 106 | ||||
Additional statutory disclosure – Directors and executives | 153 | |||||
6.B – Compensation | Directors’ report – Remuneration Policy summary – At a glance: 2025 remuneration outcomes – Implementation report – Implementation report tables | 125-126 127-128 129-144 145-149 | ||||
Financial statements – Note 27 – Employment costs and provisions – Note 28 – Share-based payments – Note 29 – Post-retirement benefits | 209 210-212 213-218 | |||||
Annual Report on Form 20-F 2025 | iv | riotinto.com |
Item | Form 20-F Caption | Location in this document | Page | |||
6.C – Board practices | Directors’ report | 102-156 | ||||
Directors’ report – Board of Directors – Executive Committee – Audit & Risk Committee report – At a glance: 2025 remuneration outcome – Application of and compliance with governance codes and standards | 104-105 106 115-119 127-128 155-156 | |||||
Shareholder information – Directors – Appointment and removal of Directors | 340 | |||||
6.D - Employees | Our approach to sustainability – Talent, respect and inclusion | 38-40 | ||||
Financial statements – Note 26 – Average number of employees – Note 27 – Employment costs and provisions | 209 209 | |||||
Financial information by business unit | 267-269 | |||||
6.E – Share ownership | Governance – Implementation report – Executive Directors’ shareholding – Non-Executive Directors – Positions held and share ownership – Other share plans | 140 143 144 | ||||
Financial statements – Note 28 – Share-based payments | 210-212 | |||||
6.F – Disclosure of a registrant’s action to recover erroneously awarded compensation | Directors’ report – Remuneration Policy summary See Exhibit 97.1 | 125-126 | ||||
7 | Major shareholders and related party transactions | |||||
7.A – Major shareholders | Shareholder information – Share ownership – Substantial shareholders in Rio Tinto plc – Substantial shareholders in Rio Tinto Limited – Analysis of ordinary shareholders – Twenty largest registered shareholders | 337 337 338 338 | ||||
7.B – Related party transactions | Financial review | 17-25 | ||||
Financial statements Note 34 – Related-party transactions | 222 | |||||
7.C – Interests of experts and counsel | Not applicable | – | ||||
8 | Financial Information | |||||
8.A – Consolidated statements and other financial information | Financial review – Shareholder returns | 20 | ||||
Additional statutory disclosure – Operating and financial review | 150 | |||||
Financial statements Note 37 – Contingencies and commitments | 225-227 | |||||
See Item 18 | – | |||||
8.B – Significant changes | Financial statements Note 39 – Events after the balance sheet date | 228 | ||||
9 | The offer and listing | |||||
9.A – Offer and listing details | Additional statutory disclosure – Operating and financial review | 150 | ||||
Shareholder information – Organisational structure – Markets | 336 337-338 | |||||
9.B – Plan of distribution | Not applicable | – | ||||
9.C – Markets | Shareholder information – Markets | 337-338 | ||||
See Exhibit 2.1 | – | |||||
9.D – Selling shareholders | Not applicable | – | ||||
9.E – Dilution | Not applicable | – | ||||
9.F – Expenses of the issue | Not applicable | – | ||||
Annual Report on Form 20-F 2025 | v | riotinto.com |
Item | Form 20-F Caption | Location in this document | Page | |||
10 | Additional information | |||||
10.A – Share capital | Not applicable | – | ||||
10.B – Memorandum and articles of association | Financial review – Shareholder returns | 20 | ||||
Directors’ report – Application of and compliance with governance codes and standards | 155-156 | |||||
Shareholder information – Dual-listed companies structures – Material contracts – Exchange controls and foreign investment – Directors | 336-337 339-340 340 340-341 | |||||
See Exhibit 2.1 | – | |||||
10.C – Material contracts | Financial statements – Our capital and liquidity | 199 | ||||
Shareholder information – Material contracts | 339-340 | |||||
10.D – Exchange controls | Shareholder information – Exchange controls and foreign investment | 340 | ||||
10.E – Taxation | Additional information – US disclosure – Taxation | 342-344 | ||||
10.F – Dividends and paying agents | Not applicable | – | ||||
10.G – Statement by experts | Not applicable | – | ||||
10.H – Documents on display | Additional information – US disclosure – Document on display | 345 | ||||
10.I – Subsidiary information | Not applicable | – | ||||
10.J – Annual report to security holders | Additional information – US disclosure – Document on display | 345 | ||||
11 | Quantitative and qualitative disclosure about market risk | Risk factors | 91-99 | |||
Financial statements Note 25 – Financial instruments and risk management | 204-208 | |||||
Cautionary statement about forward-looking statements | 368 | |||||
12 | Description of securities other than equity securities | |||||
12.A – Debt securities | Not applicable | – | ||||
12.B – Warrants and rights | Not applicable | – | ||||
12.C – Other securities | Not applicable | – | ||||
12.D – American depositary shares | Additional information – US disclosure – American Depositary Shares - American depositary receipts (ADRs) | 344-345 | ||||
13 | Defaults, dividend arrearages and delinquencies | Not applicable | – | |||
14 | Material modifications to the rights of security holders and use of proceeds | Not applicable | – | |||
15 | Controls and Procedures | Directors’ report – Additional statutory disclosure – Financial reporting | 154-155 | |||
See Item 18 for the Report of the Independent Registered Public Accounting Firm | – | |||||
16 | [Reserved] | Not applicable | – | |||
16A | Audit committee financial expert | Directors’ report – Audit & Risk Committee report – US listing requirements – Application of and compliance with governance codes and standards | 115 155-156 | |||
16B | Code of ethics | Our approach to sustainability – Governance | 87-88 | |||
16C | Principal accountant fees and services | Directors’ report – Audit & Risk Committee report – External auditors | 117-118 | |||
Financial statements – Note 38 – Auditors’ remuneration | 227 | |||||
16D | Exemptions from the listing standards for audit committees | Not applicable | – | |||
16E | Purchase of equity securities by the issuer and affiliated purchasers | Directors’ report – Additional statutory disclosure – Purchases: Rio Tinto plc shares – Purchases: Rio Tinto Limited shares | 152 152 | |||
Financial statements – Note 35 – Share capital | 223 | |||||
16F | Change in registrant’s certifying accountant | Not applicable | – | |||
16G | Corporate Governance | Directors’ report – Application of and compliance with governance codes and standards | 155-156 | |||
16H | Mine safety disclosure | See Exhibit 16.1 | – | |||
Annual Report on Form 20-F 2025 | vi | riotinto.com |
Item | Form 20-F Caption | Location in this document | Page | |||
16I | Disclosure regarding foreign jurisdictions that prevent inspections | Not applicable | – | |||
16J | Dealing in Rio Tinto securities See Exhibit 11.1 | 154 – | ||||
16K | Cybersecurity | Our approach to risk management | 89-90 | |||
Risk factors – Managing cyber security | 93 | |||||
Additional information – US disclosure – Cyber security | 346-348 | |||||
17 | Financial statements | Not applicable | – | |||
18 | Financial statements | About Rio Tinto | 158 | |||
About the presentation of our consolidated financial statements | 158 | |||||
Consolidated income statement | 165 | |||||
Consolidated statement of comprehensive income | 166 | |||||
Consolidated cash flow statement | 167 | |||||
Consolidated balance sheet | 168 | |||||
Consolidated statement of changes in equity | 169 | |||||
Financial statements – Notes 1 to 40 | 170-228 | |||||
Reports of Independent Registered Public Accounting Firms | 246-248 | |||||
19 | Exhibits | See Exhibit List at the end of this document | – |
Other information contained within Rio Tinto’s Annual Report on Form 20-F 2025 (Form 20-F) is not included in this Form 20-F unless
specifically identified above and is furnished to the SEC for information only.
Annual Report on Form 20-F 2025 | 1 | riotinto.com |
Many of our operations are located on land and waters
that have belonged to Indigenous and land-connected
Peoples for thousands of years. We respect their ongoing
deep connection to, and their vast knowledge of, the land,
water and environment. We pay our respects to Elders,
both past and present, and acknowledge the important
role Indigenous and land-connected Peoples play within
communities and our business.
Contents
Strategic report | |
2025 at a glance | 1 |
Beginning a new chapter | 2 |
Why invest in Rio Tinto | 2 |
Rio Tinto across the world | 3 |
Chair's statement | 4 |
From the Chief Executive | 5 |
Strategic context | 6 |
Our strategic framework | 8 |
The story of our year | 10 |
Our continuing path to value creation | 12 |
Key performance indicators | 14 |
Chief Financial Officer's statement | 16 |
Financial review | 17 |
Aluminium & Lithium | 26 |
Copper | 28 |
Iron Ore | 30 |
Our approach to sustainability | 32 |
Socially connected | 36 |
Environmentally committed | 46 |
Climate | 53 |
Governance | 87 |
Our approach to risk management | 89 |
Risk factors | 91 |
Five-year review | 101 |
Directors’ report | |
Chair's introduction | 102 |
Governance framework | 103 |
Board of Directors | 104 |
Executive Committee | 106 |
Our stakeholders - Section 172(1) statement | 107 |
Board activities in 2025 | 110 |
Evaluating our performance | 112 |
Nominations & Governance Committee report | 113 |
Audit & Risk Committee report | 115 |
Sustainability Committee report | 120 |
Remuneration report | 122 |
Additional statutory disclosure | 150 |
2025 Financial statements | |
About Rio Tinto | 158 |
About the presentation of our consolidated financial statements | 158 |
Consolidated primary statements | 165 |
Notes to the consolidated financial statements | 170 |
Other information | |
Consolidated entity disclosure statement | 230 |
Report of Independent Registered Public Accounting Firms | 246 |
Additional financial information | |
Financial information by business unit | 267 |
Alternative performance measures | 270 |
Production, Mineral Reserves, Mineral Resources and operations | |
Metals and minerals production | 276 |
Mineral Resources and Mineral Reserves | 278 |
Qualified Persons | 280 |
Mineral Reserves | 282 |
Mineral Resources | 294 |
Mines and production facilities | 305 |
Additional information | |
Shareholder information | 336 |
US disclosure | 342 |
Contact details | 367 |
Cautionary statement about forward-looking statements | 368 |
 | On the cover: Bauxite stockpiles at Weipa Operations, Australia. |
 | Our 2025 reporting suite | |
 | Scan the QR code or visit riotinto.com/reports | |
References to information on websites in the Form 20-F are
included as an aid to their location and such information is not
incorporated in, and does not form part of, this Form 20-F. We have
included any website as an inactive textual reference.
The independent assurance report related to sustainability is not
included within this Form 20-F and therefore any references to
this report are not incorporated in, and do not form part of this
Form 20-F.
Annual Report on Form 20-F 2025 | 1 | riotinto.com |
Strategic report
2025 at a glance
A stronger, sharper and simpler way of working, to deliver leading returns.
The world needs mining, and it needs mining done the right way. Demand for the metals and minerals we produce is rising, driven by
population growth, economic development and the energy transition. At Rio Tinto, we’re committed to providing these materials safely,
sustainably, and in a capital disciplined way, and to sharing the value we create with our stakeholders. Now we’re sharpening our strategic
focus, so we can seize the opportunities ahead, and become the most valued metals and mining business.
Fatalities at managed operations 1 (2024: 5) | All-injury frequency rate 0.37 (2024: 0.37) | Women in our workforce1 26.2% (2024: 25.2%) | ||
Employee satisfaction score from our Q4 People Survey 74 (Q4 2024: 74) | Gross Scope 1 and 2 greenhouse gas emissions (adjusted equity basis) 31.5 Mt CO2e (2024: 31.7 Mt CO2e) | Profit after tax attributable to owners of Rio Tinto2 $10.0bn (2024: $11.6bn) (net earnings) | ||
Net cash generated from operating activities $16.8bn (2024: $15.6bn) | Underlying EBITDA3 $25.4bn (2024: $23.3bn) | Total dividend per share 402 cents (2024: 402 cents) |
2025 consolidated sales revenue: $57.6bn (2024: $53.7bn)
By destination
l | Greater China | l | US | l | Japan | l | Europe | l | Other Asia | l | South Korea | l | Canada | l | Australia | l | Other |
By reportable segment (%)
l | Aluminium & Lithium | l | Copper | l | Iron Ore |
Aluminium & Lithium | Copper | Iron Ore | ||||
Underlying EBITDA $4.6bn (2024: $3.6bn)4 | Underlying EBITDA $7.4bn (2024: $3.4bn) | Underlying EBITDA $15.2bn (2024: $17.0bn)4 | ||||
Aluminium Rio Tinto share of production 3,380 kt (2024: 3,296 kt) | Bauxite Rio Tinto share of production 62.4 Mt (2024: 58.7 Mt) | Lithium Rio Tinto share of production5 57 kt (2024: NA) | Copper Consolidated basis of production 883 kt (2024: 793 kt) | Pilbara iron ore 100% basis of production 327.3 Mt (2024: 328.0 Mt) | ||
1.Based on managed operations (excludes the Group's share of non-managed operations and joint ventures) as of 31 December of the relevant year. Includes legacy Arcadium Lithium
employees for 2025 only.
2.All financial values in this Form 20-F are presented in US dollars unless otherwise stated.
3.Underlying EBITDA is a non-IFRS (International Financial Reporting Standards) measure. A definition of underlying EBITDA and a reconciliation to its closest IFRS measure is presented
in note 1 (page 171).
4.Comparative information has been adjusted to reflect the organisational changes described in note 1 (page 170) for details.
5.Q1 2025 lithium carbonate equivalent (LCE) production from Arcadium was 17 kt, of which 6 kt was produced since completion of the acquisition in March. Accordingly, of the 57 kt LCE
production in 2025, 46 kt was attributable to Rio Tinto.
 | For more information on our product groups’ performance, see pages 26-31. |
Annual Report on Form 20-F 2025 | 2 | riotinto.com |
Strategic report
Beginning a new chapter
2025 marks the start of a new era for Rio Tinto.
We welcomed Simon Trott as Chief Executive,
and outlined our intentions for our next phase:
unlocking significant value from our portfolio,
through operational performance and financial
discipline, and by capitalising on the
energy transition.
We are building on strong foundations, with fresh momentum,
and making fundamental changes to how we operate. With these
improvements, our aim is to move faster, make better decisions and
perform at our best.
We’re exploring in 15 countries, and have a rich and diverse pipeline
of options for the future. By concentrating on the most compelling
opportunities, and building a stronger, more streamlined and
efficient business, we can invest in profitable future growth.
Above all, we will do this with safety, and with respect for the
environment, communities, Indigenous Peoples and other
stakeholders as our key priorities. We are building a values-driven
performance culture where our employees feel accountable to
deliver great outcomes, guided by care, courage and curiosity.
We have clear opportunities to do better, and to improve both
our safety and operational performance. So we are making changes
today to ensure we’re in the best shape possible to
meet the demands of the future.
Why invest in Rio Tinto
Our mission is to make Rio Tinto the
most valued metals and mining business.
Most valued by our shareholders, by our
employees, customers and partners, and
by the communities where we operate.
To create a stronger business, we are taking immediate action in
3 areas for our shareholders:
•To simplify and sharpen our focus on performance - we have
already announced $650m in annualised productivity benefits,
and we're targeting significantly more
•To deliver and ramp up our major growth projects, with 3%
compound annual growth rate (CAGR) increase in copper
equivalent production from 2024 to 2030
•To release $5-10bn in cash from our asset base.
10-year record
of paying out 60% of underlying earnings
as dividends
| For more information see riotinto.com/invest |
Our strengths
Our world-class assets and increasingly diversified portfolio
drive resilience and position us to adapt to a changing and
opportunity-rich world.
We have an attractive pipeline of growth options in future-facing
commodities, and we’re focusing on bringing the best to fruition. Our
project delivery capabilities are industry-leading, and we intend to
realise the most compelling of our growth opportunities, on time and
on budget. Partnerships with customers and other industry
stakeholders are both a strength and an enabler, as we develop and
operate our assets. Our experience at the Simandou iron ore project
in Guinea, for example, has demonstrated the value such
partnerships bring.
We have a strong balance sheet, and we’re focusing on improving
our cost discipline further. Our Safe Production System aims to
transform how we operate our assets, manage performance,
and develop and empower our people. With a stronger focus on
safety and reliability, we are driving efficiency across our assets.
Our commitments and results
People and safety come first, and we are redoubling our efforts
to eliminate fatalities.
We believe good corporate governance supports high standards of
business conduct and helps ensure the long-term success of our
business – and our Board is structured to uphold this.
We are investing in the future, in accordance with our disciplined
investment approach to organic growth. We are on track for a ~20%
increase in copper equivalent production from 2024 to 2030, with
multiple options to extend our growth into the following decade. In
our Lithium business, for example, our focus is on delivering our in-
flight projects on time and on budget, towards 200 kt lithium
carbonate equivalent capacity by 2028.
We have delivered resilient earnings through cycles, and are
committed to consistent shareholder returns as we grow. Our
policy seeks to return 40% to 60% of our underlying earnings,
on average through the cycle, as dividends.
Annual Report on Form 20-F 2025 | 3 | riotinto.com |
Strategic report
Rio Tinto across the world
We have 61,0001 employees working across 342 countries on 6 continents, and
3 world-class businesses driving our performance and growth: Aluminium & Lithium, Copper
and Iron Ore.
Aluminium & Lithium brings together
businesses with extensive mining and
downstream processing capabilities.
It combines aluminium operations in the
Pacific and Atlantic regions with lithium
global operations and growth projects in
Argentina, Canada and Chile.
Our Copper group is well positioned to
capitalise on the global energy transition,
with operations in Chile, Mongolia and the
US, and future options including projects
and partnerships in Australia, Chile, Peru
and the US.
Iron Ore combines our operations in
Western Australia and Canada, and will
integrate the Simandou project in Guinea
once fully operational, creating a global iron
ore business.
Our Borates and Iron & Titanium businesses have been placed under strategic review and report into our Chief Commercial
Officer.
Operations and projects3
 | Aluminium |  | Mines | |
 | Lithium4 |  | Projects | |
 | Copper |  | Smelters, refineries, processing plants, and power and shipping facilities remote from mine | |
 | Iron Ore | |||
 | Other5 |  | Non-managed operations |
1.This represents the average number of employees for the year, including the Group's share of non-managed operations and
joint ventures, rounded to the nearest thousand. Refer to page 209 for more information.
2.Includes our mines and production facilities, main exploration activities and countries where we have a significant presence
through activities including research and development, commercial, sales, and corporate functions.
3.The map indicates the location of our global operations and projects, however it does not identify all individual facilities
included in an operation. It does not include our offices, research and development centres, and some processing and
shipping facilities. The dots on the map are indicative and in some locations we have more assets than visually represented
due to the size of the map. For more detail, see the Mines and production facilities section on pages 305-325. Management
responsibility for the Simandou iron ore project in Guinea during the build phase of the project falls under the Chief Safety &
Technical Officer and is outside of reportable segments until completion of the project. On completion, the project will transfer
to the Iron Ore product group.
4.The Lithium projects in Chile are subject to regulatory approval and final execution.
5.Includes the Borates and Iron & Titanium businesses, which were placed under strategic review during 2025,
with the Diamonds business now presented outside of our product group structure as it is managed by the
Chief Commercial Officer.
| For more information on our operating model, see page 8. For more on our mines and production facilities, Mineral Resources and Mineral Reserves around the world, see pages 282 to 304. |
Annual Report on Form 20-F 2025 | 4 | riotinto.com |
Strategic report
Chair’s statement
I believe that Rio Tinto is well on its way to becoming the most valued
metals and mining business. Over 2025, we executed some of the
most technically challenging mining projects on Earth. We forged
and reinforced extraordinary partnerships and moved decisively into a
decade of delivery and growth.
I begin this report by recognising, with great sadness, the death of a
colleague at the SimFer site in Guinea on 14 February. This tragedy
follows the death of Mohamed Camara in August at the same site, a
loss that was felt deeply across the business. We hold both
teammates’ families, friends and colleagues in our thoughts, along
with all those affected. We have taken immediate action to
understand the causes of both tragedies and we will continue to
strengthen our practices to ensure our people’s safety.
In a further 12 months characterised by geopolitical volatility and
rapid technological progress, one truth became increasingly clear:
now, more than ever, the world needs mining. The materials we
provide not only fuel modern life but also enable underlying
infrastructure for the technology revolution and energy transition.
And volatility and fragmentation has increased the imperative and
awareness of the need for critical minerals.
In the second half of last year, the Board appointed Simon Trott to
lead Rio Tinto as Chief Executive. He succeeds Jakob Stausholm,
who was instrumental in rebuilding trust with our key stakeholders
and prepared the ground for our future growth, both strategically and
culturally. The Board is deeply grateful to Jakob for his leadership
and service.
Mining at its best
In this next phase for Rio Tinto, the Board and leadership team have
focused on implementing a stronger, sharper and simpler way of
working across the business.
Our strong operating performance over the year shows that we are
building on a firm foundation. And over 2025, I saw first-hand the
strong progress being made at many of our sites as we deliver on
this work.
At Oyu Tolgoi in Mongolia, I witnessed how we are extending the
frontiers of mining technology. Here, we are ramping up copper
production from an orebody more than 1,300 metres underground
and comparable in size to Manhattan.
That same operational excellence was evident at our lithium sites in
Argentina. There, I saw our progress in supplying customers with
high-quality, battery-grade lithium carbonate.
In Canada, I met the teams operating our technologically advanced
aluminium smelters in Quebec. I also spent time with colleagues
who are driving efficiency-boosting innovations in our iron ore
business in Quebec and Labrador.
And across the year, I saw time and again, Rio Tinto’s ability to build
strong and meaningful partnerships.
In November, I joined the celebrations to mark first ore at Simandou
in Guinea. This massive achievement was made possible by a
unique partnership, consisting of the Government of Guinea,
Chinalco, Baowu and WCS. Beyond the mine, the project delivers a
major new source of high-grade iron ore to the world, a more than
620-kilometre multi-use railway and world-class port facilities.
Simandou also promises to bring vast potential economic benefits
and could grow Guinea’s GDP by up to 55% by 2030.
Responding to a changing world
I said in our 2024 Annual Report that we are living in uncertain times
and this has proved to be something of an understatement.
I am confident in our ability to navigate geopolitical challenges. Our
agile response to US trade tariff volatility exemplified this capability.
Equally, our diversified portfolio of world class assets, balance sheet
strength and focus on operational excellence and project building
enable us to respond to shifting demand in a more regionalised,
protectionist world.
Climate change is another factor shaping how we operate.
The massive cyclones in the Pilbara at the start of the year
reminded us that extreme weather conditions can materially
affect our operations. Against this backdrop, we believe our
commitment to our decarbonisation targets, which we reaffirmed in
our 2025 Climate Action Plan, is both environmentally responsible
and in our shareholders’ long-term interests.
Our operations’ benefits must be felt beyond the mine gate and within
the communities who host us. Over 2025, we strengthened our social
licence and relationships with Indigenous Peoples and communities.
In June, we opened the Western Range iron ore mine in Australia,
which we developed with our joint venture partner China Baowu
Group, in close collaboration with the Yinhawangka People.
It showed what can be achieved through meaningful engagement
with Traditional Owners in mine planning and development. We built
on this milestone by updating 3 agreements with Pilbara Traditional
Owners, reflecting modernised partnership expectations. While
these agreements mark significant progress, we know there is still
more to do.
Moving forward together
Our achievements in 2025 would not have been possible without
our people. Across Rio Tinto, we continue to build a positive, values-
driven performance culture, creating the right conditions for success.
Our aim is for our people to feel safe, respected and accountable for
their work, and confident that their voices and ideas are heard.
In turn, our colleagues’ dedication is creating a Rio Tinto that is
valued for how it performs, and the way it works with others. We
look to the year ahead with optimism, as we build on our already
strong momentum to deliver industry-leading shareholder returns
and lasting value for our stakeholders.
My thanks, and that of the Board, go to our people, partners,
customers, suppliers, investors, and governments, Indigenous
Peoples and communities for their support throughout 2025.
Dominic Barton
Chair
19 February 2026
 | Follow Dominic on LinkedIn linkedin.com/in/dominicsbarton |
Annual Report on Form 20-F 2025 | 5 | riotinto.com |
Strategic report
From the Chief Executive
In 2025, we launched a new era for Rio Tinto. This was a year
defined by progress in implementing a stronger, sharper and
simpler way of working, driven by our mission to become the
most valued metals and mining business.
The past months have also reminded us, in the most sobering way,
why safety is, and must always be, the foundation of everything we
do. We were devastated by the death of a colleague at the SimFer
site on 14 February. This loss follows the tragic death of Mohamed
Camara at the site in August. Nothing is more important than the
safety of everyone who works with us. We are determined to learn
from these incidents and to do everything to ensure everyone goes
home safe, every shift.
Unlocking Rio Tinto’s potential
My 26 years with this business has shown me that when Rio Tinto is
at its best, it is extraordinary.
In my first months as Chief Executive, my focus, with Rio Tinto’s
leadership team, has been on unlocking this potential. Our mission
is to move Rio Tinto into a new era of delivery and growth, and
become the most valued metals and mining business.
Our strategy begins with world-class assets in the right markets,
which play to our competitive advantages of expertise, size and
scale. It is enabled by our people, our strong social licence and
partnerships with communities and stakeholders. It rests on the
3 priorities of a great metals and mining businesses: operational
excellence, project execution and capital discipline.
Here are some of the actions we took under each of these priorities
in 2025.
Clear accountabilities and faster decisions
Our immediate priority under operational excellence was the
need to simplify the business’ way of working. We instilled clearer
accountabilities and reduced complexity, improving the pace
and quality of decisions.
We moved from 4 product groups to 3, bringing Aluminium and
Lithium together. We also introduced a new operating model that
places decisions at the point of impact, supported by a smaller
Executive Committee with depth and diversity of experience.
Already these efforts are delivering results. In December, we
announced $650 million in annualised productivity benefits
and savings, and we are targeting significantly more.
Crucially, our drive for operational excellence does not mean
a trade-off between performance and safety, which go hand
in hand. Over 2025, our Safe Production System, now deployed
across all managed sites, continued to drive efficiencies and
productivity, giving rise to some record production results.
Delivering world-class assets
In March, we completed the acquisition of Arcadium Lithium,
establishing Rio Tinto as a leader in supplying energy transition
materials, with one of the world’s largest lithium resource bases.
In May, we announced plans to begin early works and conduct final
engineering studies to increase production capacity at the Amrun
bauxite mine in Far North Queensland. The Kangwinan project will
involve building a new mine and expanding the existing port to
almost double bauxite production from our Weipa Southern
operations.
In June, in the Pilbara, we delivered Western Range on time and
on budget. We also secured investment in the next tranche of
projects that will sustain our Western Australian iron ore operations
for decades to come.
In Mongolia, Oyu Tolgoi delivered record copper production as the
underground ramp-up advanced. And in November, we marked the
start of operations from Simandou in Guinea, achieved less than 2
years after major construction began. Simandou sets a new
benchmark for how we deliver large projects, demonstrating that
partnership is increasingly a Rio Tinto superpower.
Performance built on trust and discipline
The world needs mining, and mining done the right way. Our social
licence is fundamental to our future business. Our plans for delivery
and growth depend on earning our partners’ trust.
Throughout 2025, we strengthened our relationships with investors,
customers, governments, Indigenous Peoples and communities.
At Rio Tinto, we believe that when our values are embedded in the
way we operate, our performance strengthens. The co-management
agreement we signed in 2025 with the Puutu Kunti Kurrama and
Pinikura (PKKP) Aboriginal Corporation reflects this approach and
supports a lasting and trusted partnership. The agreement gives the
PKKP People confidence that their heritage will be protected and Rio
Tinto certainty for our operations and development.
Equally, strong performance requires firm financial foundations.
Capital discipline is critical to converting our work into long-
term value. That starts with a resilient balance sheet, rigorous
capital allocation, and a clear focus on delivering leading returns to
shareholders. In December, we announced plans to release
$5 to $10 billion of cash from our asset base, as we direct resources
to our most compelling opportunities.
The most valued metals and mining business
At our 2025 Capital Markets Day, I was asked what it means to be
the most valued metals and mining business.
To me, this mission is defined by each group we serve: for investors,
most valued means delivering strong returns. For our people,
it means Rio Tinto is the place they most want to work. For our
partners, for our customers, and for communities, most valued
is about delivering on our promises and creating lasting
positive impact.
Simon Trott
Chief Executive
19 February 2026
| Follow Simon on LinkedIn linkedin.com/in/simon-trott |
Annual Report on Form 20-F 2025 | 6 | riotinto.com |
Strategic report
Strategic context
We conduct deep analysis of external forces, geopolitical shifts and global trends to create scenarios,
through which we develop and stress test our strategy. These scenarios explore potential futures for
our industry and commodities, and inform our business model, portfolio, financial and operating
decisions across the medium-and long-term horizon.
Our scenario approach
Our scenarios stress test our portfolio and investment decisions under alternative macroeconomic settings, to better
understand opportunities, risks and mitigations. These scenarios are created collaboratively, combining Group-wide expertise
with leading external assessment. We also test our analysis against consensus forecasts, to explore our level of conviction
against the market, and identify emerging opportunities and risks.
Our Conviction scenario reflects what we anticipate will happen, rather than our aspiration, and translates our beliefs about the future into macroeconomic and environmental drivers. This scenario envisages a period of increased geopolitical and industry fragmentation, characterised by global competition and frequent government intervention in key markets. Climate action will be non-linear and will fall short of the Paris goals, but the rising frequency of climate events and technological development will eventually galvanise significant progress. We have adjusted scenario inputs and assumptions to reflect lower global growth projections, and delays in the pace of decarbonisation. However, these do not result in significant impacts on our overall business strategy, as we foresee robust traditional growth, energy addition and supply constraints continuing to underpin strong primary demand for our portfolio in the mid to long term. | Additional scenarios provide sensitivity analysis. These include the following scenarios. •Our Resilience scenario represents a lower-growth world, where prevailing geopolitical uncertainty, and populist and nationalist movements result in weaker governance, fragmented global trade, slower energy transition and less effective climate action. •Our Aspirational Leadership scenario allows us to explore decisions in a world that remains on track to limit the global average temperature rise to 1.5°C (above pre-industrial levels) by 2100. This scenario envisages high economic growth, significant social change and accelerated climate action. | |||
These scenarios allow us to examine the robustness of our investment decisions, identify opportunities for protecting against the downside,
gauge against market conviction, and evaluate areas where we see upside potential beyond our peers.
| For more information on our scenario analysis, see the Climate section on page 73. |
Global trends
Three key global trends inform our long-run price forecasts and portfolio decisions.
Global economic development •There is increasing regionalisation and protectionism, and desire for supply security, contributing to: •the rerouting of global trade routes •increasing military expenditure •increasing trade barriers. •Global economic growth prospects over the next few decades are softening as the pace of global trade and investment slows. •However, the traditional growth drivers of metals demand remain robust (ie population growth, industrialisation and urbanisation in emerging markets), with new drivers emerging (eg AI data centres, robotics). | Energy transition •Global electricity demand continues to grow. •Although timelines to net zero are slipping, renewables are an increasing share of energy supply, supported by their improved cost competitiveness relative to hydrocarbons. •The expansion of new power generation, transmission, and distribution infrastructure is a significant driver for aluminium, copper and lithium. | Persistent supply constraints •Scrap has consistently under- performed expectations, with lower demolition rates, longer life cycles and lower scrap recovery, creating additional requirements for primary supply. •Mine delivery timelines continue to expand. Discovery rates are declining, and grades worsening. We see increasingly complex approval processes, higher environmental and social standards, and deeper orebodies requiring more complex engineering. •Supply growth is frequently more costly than previously anticipated – increasing capital intensity is a challenge across the industry. | ||||
Annual Report on Form 20-F 2025 | 7 | riotinto.com |
Strategic report | Strategic context
What these mean for our markets and commodities
•Continued strong demand outlook across our 4 commodities.
•Growth outlook for energy transition-linked metals remains strong.
•Positive upside for metals and mining companies with diverse
geographical footprints, or trading capabilities, or both.
•Price outlook across our 4 commodities remains strong.
•Iron ore: robust steel demand growth from the Global South will
compensate (in part or in full) for expected decline in demand
from China. Incremental iron ore supply growth is needed just to
offset depletions.
•Copper: has an attractive demand outlook driven by
electrification. There is a significant supply gap due to increased
cost and complexity of new primary supply.
•Aluminium: steepening of the cost curve with new supply
being added outside of China and rising electricity costs.
This underpins strong long-run pricing.
•Lithium: falling battery prices continue to improve the cost
competitiveness of electric vehicles versus internal combustion
engine vehicles, and is coupled with increasing demand for
battery energy storage systems.
Demand1 growth | 2025F2 | 2035F3 | ||
Aluminium
Transmission distances grow by 42% in next decade4
~1.2x
103 Mt
1.4 Mt
Lithium
Battery energy storage systems (BESS) installations
to triple over next decade5
~3.4x
Copper
Electrification of final energy demand increases
from 21% to 30% in 20356
~1.3x
34 Mt
~1.1x
Steel
India and ASEAN construction to grow ~65% by 20356
1.8 Bt
1.Graphic presented at Rio Tinto’s Capital Markets Day, December 2025. Semis demand, rounded figure.
2.2025 demand shown as forecast based on data available in December 2025. Actuals are not available at time of publication of the 2025 Annual Report.
3.2035 demand reflects a growth multiple from 2025F.
4.Represents kilometres of network, BloombergNEF estimate.
5.BloombergNEF estimate.
6.Rio Tinto Economics internal estimate. Source: Rio Tinto Economics Conviction scenario, BloombergNEF.
Annual Report on Form 20-F 2025 | 8 | riotinto.com |
Strategic report
Our strategic framework
How we will become the most
valued metals and mining business
We are moving at pace to increase
operational excellence, and deliver
our major growth projects, with capital
discipline. There is more to come, as
we focus on delivering industry-leading
returns, with a lasting positive impact.
Our mission is to be the world’s most valued metals and
mining business – for shareholders, employees, the
people who work with us, our customers and partners,
and the communities around us.
We will achieve our mission through a strategy
that starts with having the right assets in the right
markets, supported by a well-executed diversified model
and strong balance sheet that delivers market-leading
performance and industry-leading returns through the
commodity cycle.
We have evolved our operating model to work in a
stronger, sharper and simpler way.
Our streamlined operating model
Our new operating model makes us stronger, unlocks more
value through clearer accountability, drives productivity,
and embeds a more disciplined approach to how we allocate
capital. Everything we do is anchored in our commitment
to safety that works in harmony with better outcomes:
a safe operation is a productive and valuable one.
Operational excellence
•Unlock the full value of our assets
•Simplified structure with 3 world-class product groups, leaner
central teams, with accountability and decision-making
moved to the assets
•Stronger operational discipline and improved productivity
Project execution
•Deliver world-class projects on time, and on budget
•Scale best practices across our project portfolio
•Reduce holding costs for options
Capital discipline
•Investments that deliver industry-leading value-creation
•Maintain strong balance sheet
•Release value from our asset base
| See how we performed against our key performance indicators on pages 14-15. |
Annual Report on Form 20-F 2025 | 9 | riotinto.com |
Strategic report | Our strategic framework
Our mission |
To be the most valued metals and mining business |
Our purpose |
Finding better waysTM to provide the materials the world needs |
Our strategy |
A diversified portfolio of world-class assets and projects in the right markets, underpinned by a strong balance sheet and social licence |
Our objectives |
People and safety first Eliminating fatalities, keeping our people safe and helping them thrive, in a values-based performance culture. | Operational excellence Unlocking the full value of our assets, simplifying and driving clear accountability, with financial discipline. | Excel in development Optimising capital allocation and turning growth opportunities into long-term value. | Strong sustainability and social licence Driving decarbonisation, being the most valued partner, ensuring guardrails on commercial performance to future-proof reputation, and earning trust with communities, partners and customers. |
Our values |
Care Caring about the safety of ourselves and others, the impact we have on our colleagues, communities, and the environment, and creating an environment of trust. | Courage Showing vulnerability, speaking up and challenging when we can do better, and taking ownership of our actions and outcomes to drive performance. | Curiosity Learning and growing in our fields of expertise, looking for opportunities to solve problems with everyday innovation, and being open to different perspectives. |
Our business model delivers the value
that matters most to our stakeholders.
We are committed to being responsible
operators and achieving excellence at every
stage – from discovery to closure. For more
information, see page 12.
We ensure effective corporate governance
to manage our performance responsibly
and sustainably. For more information on
how our Board oversees the delivery of our
strategy, and how we manage risk, see our
Directors’ report from page 102.
Find out how our Remuneration Policy
supports the delivery of our strategy in
our Remuneration report from page 122.
Annual Report on Form 20-F 2025 | 10 | riotinto.com |
Strategic report
The story of our year
Link to objectives | |||||
l | People and safety first | l | Excel in development | ||
l | Operational excellence | l | Strong sustainability and social licence | ||
In 2025, we’ve made progress against our strategy,
and responded to challenges, across our global business.
Safety our priority, as cyclones hit ll When 4 cyclones hit our iron ore operations in Western Australia in early 2025, our first priority was to keep people safe. Pausing some operations and damage to equipment impacted Q1 production by 13 Mt, but our teams’ resilience and efforts to recover from the extreme weather helped us deliver record rates from April onwards and achieve stable full year Pilbara production year on year. | Investing in the next generation of Pilbara mines ll We secured investments to sustain production from our world-class iron ore operations in Western Australia for decades to come. Following Traditional Owner support, the Brockman Syncline 1, Hope Downs 2 and West Angelas Sustaining projects received all necessary state and federal government approvals. Our strategy to continue investing in Australian iron ore supports jobs, local businesses, and the state and national economies, and we are committed to ensuring the Pilbara remains critical to global steel supply well into the future. And in June, we opened Western Range, our newest iron ore mine - see page 31. | |||||
Solar and battery agreement towards BSL repowering l We continued the process of procuring renewable energy and storage projects to supply power to Boyne Smelters Ltd (BSL), an aluminium smelter in Queensland, Australia, beyond 2029. In February, we signed hybrid services agreements with Edify Energy for the Smoky Creek & Guthrie’s Gap Solar Power Stations. Together with wind and solar power purchase agreements announced in 2024, the annual energy generated could meet approximately 80% of Boyne smelter’s annual electricity demand, once operational. Currently, all contracted projects remain in project development phases, and we continue to monitor them as they progress towards final investment decisions and financial close. For more information on BSL repowering, see page 59. | ||||||
 | ||||||
Image: Fénix lithium brine operation, Argentina. | ||||||
Creating a world-class lithium business l In March, we completed the acquisition of Arcadium Lithium plc, establishing Rio Tinto as a global leader in the supply of energy transition materials, with one of the world’s largest lithium resource bases. In December, at an investor site visit to Argentina, we outlined how we are delivering the in-flight projects on time and on budget towards 200 kt lithium carbonate equivalent capacity by 2028. Beyond these committed projects, we will take a disciplined approach with future developments focusing on lowering capital intensity. | ||||||
Deepening our culture of respect l In October, teams across Rio Tinto paused work to take part in Stop for Respect. This annual initiative, founded by Iron Ore, creates space to reflect on how respect shows up in our daily work, and how it connects to physical and psychological safety – strengthening inclusion, trust and our shared commitment to a respectful workplace. We plan to expand participation in 2026 so more teams can join these important conversations. | Critical minerals R&D project milestone l We extracted the first primary gallium, a critical mineral used in technologies including radars, smartphones and electric cars, as part of a research and development project with our partner Indium Corporation. We aim to extract commercial quantities of gallium present in bauxite processed in our Vaudreuil alumina refinery in Canada. | Advancing the Winu project ll We signed the final joint venture agreements with Sumitomo Metal Mining to deliver the Winu copper-gold project in Western Australia. Our partnership strengthens the Winu project, as we continue to prioritise the strong and enduring partnerships built with the land’s Traditional Owners, the Nyangumarta and the Martu. | ||||
As we enter this new era for Rio Tinto, we’ve taken some significant steps forward ... We are delivering our major growth projects ... We are focused on capital discipline ... And behind all this progress are our people, our social licence, and our skills at developing partnerships.” Simon Trott, Chief Executive, Capital Markets Day, December 2025 | Modernising a strategic asset ll We announced the single largest investment in our hydroelectric assets since the 1950s, with $1.2 billion for the modernisation of the Isle-Maligne power plant in Quebec, which was commissioned in 1926. The project, which will run until 2032, is essential to secure the future of low-carbon aluminium production in Saguenay–Lac-St-Jean, ensuring a more efficient, safe and reliable supply of renewable energy to our facilities. | |||||
Annual Report on Form 20-F 2025 | 11 | riotinto.com |
Strategic report | The story of our year
Securing Amrun’s long-term future lll We progressed projects at our Amrun bauxite mine – important steps in securing the long-term future of our operations in Cape York, Queensland, Australia. We began early works and final studies for the Kangwinan project, which will involve building a new mine and expanding the existing port to almost double bauxite production. And we approved $180 million investment on a project that will enable mining of the Norman Creek region, where around half of the declared Amrun Mineral Reserves are held. Read about the strong performance we delivered at Amrun in 2025 on page 27. | |||
 | A renewed approach to cultural heritage protection l In 2025, the Puutu Kunti Kurrama and Pinikura (PKKP) Aboriginal Corporation signed a Co-Management Agreement with us, to support a lasting and trusted partnership. The agreement forms the overarching framework for our iron ore operations on PKKP Country, and puts knowledge-sharing and joint design at the centre. It is designed to provide certainty to the PKKP for the protection and management of their heritage, and gives us certainty for our operations and development. | ||
Image L-R: Chief Executive Simon Trott and Pinikura Traditional Owner and Chairperson of the PKKP Aboriginal Corporation, Terry Drage. | |||
Finding practical, scalable ways to eliminate falling objects ll In 2025, The Pitch – our global employee innovation program – focused on falling objects, a critical risk that was behind 25% of potential fatal incidents the previous year. We asked our people to focus on defining the challenges we face, and we’re now partnering with employees, our assets and external innovators to set out technology requirements, crowdsource solutions, and deploy proofs-of-concept at site. |  | |||||
Image: Simandou project, Guinea. | ||||||
Simandou starts operations ll In December, the first shipment of iron ore from Simandou left Guinea bound for international markets. Simandou is the largest integrated mining and related infrastructure project in Africa. It unlocks an exceptional new source of high-grade iron ore that is in demand for low-carbon steel, and complements our world-class portfolio of iron ore mines in the Pilbara and Canada. The project is delivering more than 600 kilometres of new multi-use trans-Guinean rail, together with barge and transhipment vessel port facilities. This milestone was a time to reflect, and remember our colleagues Morlaye Camara, who passed away in 2024, and Mohamed Camara who lost his life in 2025, on the project (see page 36). We are also deeply saddened by the death of a teammate in February 2026, following an incident at the SimFer mine site. Safety is the foundation of our business and our number one priority. We are committed to learning from these tragic events, so everyone goes home safe, every shift, every day. | ||||||
 | ||||||
Image: Oyu Tolgoi underground mine, Mongolia. Oyu Tolgoi underground project development complete ll Ramp-up of the Oyu Tolgoi underground mine in Mongolia made strong progress in 2025, with completion of the underground material-handling system and all major infrastructure, and delivering a record copper production increase of 61% year on year. This helped us deliver an 11% increase in total annual copper production year on year. At Oyu Tolgoi, we saw rising contribution from higher-grade underground material, supported by the conveyor to surface, and also benefited from higher-grade mine sequencing in the open pit. In November, in the US, we produced first copper using our Nuton® Technology - see page 29. | Progressing diesel alternatives in the Pilbara l We carried out a successful trial of biofuel across our Western Australian iron ore ports, railways and mines. The trial provided us with a greater understanding of how renewable diesel could be integrated across our Pilbara operations, to help bridge the gap to widespread electrification. Achieving zero exhaust emissions haulage needs involvement across the industry. At the end of the year, in collaboration with BHP and Caterpillar, we welcomed Australia's first Cat® 793 XE Early Learner battery-electric haul trucks to BHP's Jimblebar iron ore mine, marking the start of onsite testing. | SPS driving operational excellence ll The Safe Production System (SPS) is now deployed across all Rio Tinto managed sites, driving operational improvements across the Group. More than 10,000 frontline employees have completed SPS training programs, empowering them to solve problems, simplify processes, and accelerate decision-making to improve performance. These efforts have delivered operational stability and record results, including record bauxite production at Weipa, and Gudai-Darri setting 2 consecutive monthly iron ore output records in 2025. | ||||
Annual Report on Form 20-F 2025 | 12 | riotinto.com |
Strategic report
Our continuing
path to value
creation
Our simplified structure
and sharper focus equip us
to deliver new standards of
value creation, through
financial discipline,
productivity and growth.
Driven by a clear mission – to be
the most valued metals and mining
business – and by leaning into the
areas where we can carve out a
distinctive competitive advantage,
we will position ourselves to be the
best in our sector.
Throughout our business model, we
deliver value for our key
stakeholders. Our people,
communities, civil society
organisations and governments are
vital partners throughout the project
life cycle, from find to close. We
strive to maximise value for
customers and investors. And we
work closely with suppliers to
support our frontline teams
to deliver.
Our business model
We’re committed to safety,
and to working closely with the
communities who host us, at
every stage. We aspire to be
the partner of choice to find,
build and operate businesses.
Find We use new and advanced technologies to explore, discover and deliver attractive growth opportunities in the materials the world needs. | ||
Build We focus on the delivery of large and complex projects on time and on budget. | ||
Operate We own and operate mining and processing assets across the world and across commodities. We’re dedicated to operational excellence and to enabling our frontline teams to deliver. | ||
Sell, Move and Buy We market and deliver the materials our customers need, moving them safely, reliably and efficiently. Our procurement activities support our assets and projects, and strengthen local supply chains. | ||
Close We work with our stakeholders as we prepare our assets for closure, engaging with them on rehabilitation and social transition planning. We also manage and rehabilitate legacy closure sites. | ||
How we deliver value
We create value through the
work of our talented people,
our deep industry expertise,
our scale, our world-class assets
and our disciplined approach to
capital allocation.
People
We are empowering our people to deliver
excellence and contribute to our mission,
with safety as our number one priority.
Employees1
61,000
(2024: 60,000)
Portfolio
We have a strong and diverse portfolio of
operating assets and projects in 34 countries,
and compelling growth opportunities.
Operating assets2
$77bn
(2024: $61bn)
Financial strength and discipline
We continue to invest in profitable growth
while retaining a strong balance sheet.
Net gearing ratio3
18%
(2024: 9%)
Capabilities in developing
and operating
We bring exploration expertise, best-in-
class project execution, and our Safe
Production System that’s driving stability,
improvement and performance.
SPS deployed at
100%
of managed sites
(2024: 86%4)
1.This represents the average number of employees for the year, including the Group's share of non-managed operations and
joint ventures, rounded to the nearest thousand. Refer to page 209 for more information.
2.Operating assets is a non-IFRS measure. A reconciliation to the nearest IFRS measure is presented in the Financial
information by business unit (FIBU) on pages 267 to 269.
3.Net gearing ratio is a non-IFRS measure. A reconciliation to the nearest IFRS measure is presented in Alternative Performance
Measures on page 274.
4.2024 data has been restated to reflect a change in the scope of sites targeted for SPS deployment. 2024 and 2025 data
excludes sites acquired through the acquisition of Arcadium Lithium.
| See page 89 to learn how we manage our risks. |
Annual Report on Form 20-F 2025 | 13 | riotinto.com |
Strategic report | Our continuing path to value creation
Who we create value for
Here are some of the ways we
engage with our stakeholders,
and how the value we create
translates for them.
Our people
Nothing is more important than making
sure our people go home safe. We’re
building a values-driven performance
culture, where everyone feels accountable
to deliver great outcomes with care,
courage and curiosity.
Investors
It is important we understand our
investors’ needs and vision for the
company, and so we communicate
and engage with them extensively
throughout the year.
Communities
We listen to, consult and co-design
solutions with communities and
Indigenous Peoples to deliver shared
benefits and respect for people, culture,
land and environment.
Customers
Our customers are fundamental to our
success. By building strong, enduring
relationships based on trust, we work to
deliver products that meet their needs today
while supporting their ambitions for a low-
carbon future.
Civil society organisations
We regularly engage with civil society
organisations to understand societal
expectations of Rio Tinto. Although our
opinions may differ, we respect diverse
views and are open to constructive,
fact-based feedback and challenge.
Governments
Governments regulate our operations,
are among our commercial partners,
and receive revenue from our taxes
and royalties.
Suppliers
We work in partnership with suppliers
to deliver solutions that best support
our business. Where possible, we partner
with local and Indigenous businesses.
What we deliver
We have a clear focus on delivering leading returns to shareholders,
and lasting positive impact.
Industry-leading returns
We are focused on delivering leading returns to shareholders, and are committed
to our returns policy of paying 40% to 60% of underlying earnings as dividends.
We have a clear pathway to increase volumes, reduce costs, further strengthen our
balance sheet, and release cash from our asset base, all of which will drive returns.
Total shareholder return 66.4% (2024: 79.8%) | Total dividends declared to shareholders $6.5bn (2024: $6.5bn) | 10-year record of paying out 60% of underlying earnings as dividends |
Lasting positive impact
Our operations deliver meaningful benefits to host communities, including the production
of essential materials, job creation, small business growth, tax and royalty contributions,
skills development, and targeted socioeconomic programs. We partner with communities
and other stakeholders to understand their priorities and concerns, and our impact, and
respond in ways that create long-term value.
Paid in taxes and royalties over the past 10 years $83bn (2024: $77bn) | Voluntary global social investment $114.3m (2024: $95.9m) | Spent with suppliers globally $34.4bn (2024: $31.0bn) | ||
Spent with Indigenous businesses in Australia A$1.13bn (2024: A$926m) | Contestable spend sourced from suppliers local to our operations 15.4% (2024: 15.1%) |
Section 172(1) statement
This stakeholder section, together with our stakeholder pages in the Governance section (pages 107-109),
explains how the Board takes account of stakeholder interests. These comprise our “Section 172(1) statement”.
Annual Report on Form 20-F 2025 | 14 | riotinto.com |
Strategic report
Key performance indicators
We use a range of financial and non-financial metrics to measure Group performance against
our 4 objectives: people and safety first, operational excellence, excel in development, and
strong sustainability and social licence.
Link to remuneration
The People & Remuneration Committee ensures that the remuneration policies, frameworks and practices are aligned with the Group
strategy and objectives. As such, decisions on remuneration take into account a number of our key performance indicators, specifically within
our short-term and long-term incentive plans, and more broadly when considering wider business performance. Please refer to the Directors’
Remuneration Report for more detail on remuneration (see pages 122 - 149).
Link to objectives | |||||||||||
l | People and safety first | l | Operational excellence | l | Excel in development | l | Strong sustainability and social licence | ||||
Non-financial measures
All-injury frequency rate (AIFR)
per 200,000 hours worked ll
Definition
We define AIFR as the number of injuries per
200,000 hours worked by employees and
contractors at our managed operations. It
includes medical treatment cases, restricted
workday, lost-day injuries and fatal injuries.
Performance in 2025
Our all-injury frequency rate (AIFR) for 2025
was 0.37, consistent with our 2024 performance
and better than our Group target of 0.38. While
this reflects our continued focus on reducing
injuries, we tragically experienced one fatality
and one permanent damage injury during the
year. We remain deeply committed to learning
from these events and ensuring that everyone
can go home safe, every shift.
Across our operations, we continue to see
serious incidents where individuals are exposed
to potentially fatal hazards. Our highest number
of potentially fatal incidents are from falling
objects, falls from height, and vehicle and
driving-related events. Addressing these
risks remains a core priority as we work to
strengthen control effectiveness, enhance risk
management and build a learning culture.
Gross Scope 1 and 2 greenhouse gas
emissions (adjusted equity basis) lll
(Mt CO2e)
Definition
We report our Scope 1 and 2 greenhouse gas
emissions using the equity share approach.
It includes the equity share of Scope 1 and 2
emissions from managed and non-managed
operations, expressed in million metric tonnes
of carbon dioxide equivalent.
Performance in 2025
Our 2025 gross Scope 1 and 2 greenhouse
gas emissions (adjusted equity basis) were
31.5 Mt CO₂e, a reduction of 0.2 Mt CO₂e from
the previous year. Reductions were driven by
the increased use of renewable diesel at
Kennecott, offset by higher emissions from
increased production, particularly in iron ore
and copper.
As of 2025, our gross adjusted Scope 1 and 2
emissions are 14% below 2018 levels. After
applying high-integrity offsets, our net adjusted
Scope 1 and 2 emissions are 17% below our
baseline. Overall reductions were primarily
achieved through renewable energy contracts,
including the use of unbundled renewable
energy certificates in regions where new
energy is under development.
In 2025, we expect to retire approximately
1.17 million Australian Carbon Credit Units
(ACCUs) to meet our 2025 Safeguard
Mechanism compliance obligations.
For more information, see the Climate section
in this report from page 53.
Gender diversity lll
representation of women within our workforce
Definition
Includes our total workforce based on
managed operations (excludes the Group’s
share of non-managed operations and joint
ventures, and legacy Arcadium Lithium
employees).
Performance in 2025
The representation of women at Rio Tinto
increased from 25.2% in 2024 to 26.3% in
2025, which is short of our target of 26.7%. We
saw improvements across all levels of the
organisation, with senior leaders increasing
from 32.0% to 32.8%, and operations and
general support increasing from 18.9% to 20.4%.
Annual Report on Form 20-F 2025 | 15 | riotinto.com |
Strategic report | Key performance indicators
Financial measures
The financial key performance metrics used by the Board to monitor the performance of the Group comprise both IFRS and non-IFRS
measures. Reconciliations to the nearest comparable IFRS measure are set out in Alternative Performance Measures (pages 270-274).
Total shareholder return (TSR)¹ llll
measured over the preceding 5 years
(using annual average share price)
Definition
TSR is calculated as share price appreciation
over the preceding 5 years (using annual
average share price) with dividends
being reinvested.
Performance in 2025
TSR performance over the 5-year period was
driven principally by movements in commodity
prices and changes in the global macro
environment. Over the 5-year performance
period to 31 December 2025, Rio Tinto’s TSR
was 66.4% which was below the TSR of both
the S&P Global Mining Index and the MSCI
World Index.
Underlying return on capital
employed (ROCE) ll
Definition
Underlying earnings excluding net interest
divided by average capital employed
(operating assets).
Performance in 2025
Underlying ROCE decreased 2 percentage
points to 16%, reflecting stable underlying
earnings and higher operating assets as a
result of the Arcadium acquisition.
Underlying earnings and
underlying EBITDA l
$ millions
Underlying earnings | Underlying EBITDA |
Definition
Underlying earnings represents net earnings
attributable to the owners of Rio Tinto, adjusted
to exclude items that do not reflect the
underlying performance of the Group’s
operations. Underlying EBITDA is a segmental
performance measure (see note 1 of the
financial statements) and represents
underlying earnings adjusted to remove
taxation, net finance items, depreciation
and amortisation.
Performance in 2025
Underlying EBITDA increased $2 billion to
$25.4 billion driven by higher sales volumes
and a 5% reduction in operating unit costs
(in 2024 real terms). Underlying earnings of
$10.9 billion was stable, reflecting the same
factors, offset by higher depreciation, finance
items and taxes.
Net cash generated from
operating activities l
$ millions
Definition
This IFRS measure refers to cash generated
by our operations after tax and interest,
including dividends received from equity
accounted units and dividends paid to
non-controlling interests in subsidiaries.
Performance in 2025
Net cash generated from operating activities
increased 8% to $16.8 billion, driven by higher
sales volumes year on year.
Free cash flow ll
$ millions
Definition
Net cash generated from operating activities
minus purchases of property, plant and
equipment, intangibles, and payments of
lease principle, plus proceeds from the
sale of property, plant and equipment,
and intangible assets.
Performance in 2025
Free cash flow decreased to $4.0 billion, driven
by increased growth, replacement and
sustaining capital expenditures, partially offset
by higher net cash generated from operating
activities.
Net (debt)/cash ll
$ millions
Definition
Total borrowings plus lease liabilities less cash
and cash equivalents and other liquid
investments, adjusted for derivatives related to
net (debt)/cash (see note 20 of the financial
statements).
Performance in 2025
Net debt increased to $14.4 billion, reflecting
the completion of the $7.6 billion Arcadium
acquisition and $6.1 billion in dividends paid
during the year, partially offset by $4.0 billion of
free cash flow generated and $1.0 billion net
project funding received from
non-controlling interest shareholders.
1.The TSR calculation for each period is based on the change in the calendar-year average share prices for Rio Tinto plc and Rio Tinto Limited over the preceding 5 years. This is consistent with the
methodology used for calculating the vesting outcomes for Performance Share Awards. The data presented in this chart accounts for the dual corporate structure of Rio Tinto.
Annual Report on Form 20-F 2025 | 16 | riotinto.com |
Strategic report
Chief Financial Officer’s statement
We remain committed to our capital framework, including our
shareholder returns policy of paying 40% to 60% of underlying
earnings, noting we now have a 10-year record of paying at the top
of this range.
Net cash generated from operating activities
$16.8 billion
(2024: $15.6 billion)
Profit after tax attributable to owners of Rio Tinto (net earnings)
$10.0 billion
(2024: $11.6 billion)
Underlying earnings
$10.9 billion
(2024: $10.9 billion)
Stronger, sharper, simpler way of working
Delivery in 2025 has been strong, as we grew our production by 8%
and sales by 5% on a copper equivalent basis (based on long-term
consensus pricing). This was driven by the ramp-up of the Oyu
Tolgoi underground copper mine in Mongolia, record bauxite
production and our recently acquired world-class lithium business.
We are reporting net cash generated from operating activities of
$16.8 billion, underlying earnings of $10.9 billion and profit after tax
attributable to owners of Rio Tinto of $10.0 billion.
We ended the year with net debt at a comfortable level of
$14.4 billion, following the Arcadium acquisition. We continue not to
have a net debt target, but have a principles-based approach to
anchor the balance sheet around a single A credit rating.
Consistent and disciplined capital allocation
The shape of our capital spend remains consistent: in 2025 our
share of capital investment was $11.4 billion, driven by the rapid
development of the Simandou iron ore project in Guinea.
We invested around $4.5 billion for sustaining, $3.6 billion
for replacement projects, $0.2 billion for decarbonisation and $3.2
billion for growth.
We have a pathway to our 2030 target of a 50% reduction in
net Scope 1 and 2 emissions, however this requires the timely
completion of commercial discussions at our Pacific Aluminium
Operations and delivery of the underlying renewable projects, which,
if delayed, may ultimately impact our ability to meet our targets this
decade. Our pathway is estimated to underwrite up to $8.5 billion of
new, private renewable energy investment on competitive
commercial terms. This is in addition to the $1-$2 billion of our own
capital, which we have revised down from $5-$6 billion, due to the
rephasing of spend on new emission reduction technologies as they
continue to be assessed for industrial scale viability.
We have a strong portfolio of development options, particularly
copper and lithium, and will be highly disciplined in allocating capital
to them. Leveraging our industry-leading project delivery capabilities
and lowering capital intensity remains a priority.
Our financial strength means that we can reinvest for growth and
continue to pay attractive dividends through the cycle. For 2025 we
are returning 60% of underlying earnings to shareholders, which
equates to a full-year ordinary dividend of 402 US cents per share,
or $6.5 billion.
Value through financial discipline, productivity
and growth
Our mission is to be the most valued metals and mining company.
As an organisation, we have become leaner and are maintaining a
strong focus on productivity and efficiencies, which is expected to
lower unit costs, increase volumes and further enhance our margins.
We continue to drive efficiencies through our operational excellence
program, the Safe Production System, targeting improvements in
labour productivity, contractor management, raw material sourcing
and reducing central expenditure. We have become sharper with
our investment in digital solutions.
We are strategically reviewing our Borates and Iron & Titanium
businesses and simplified our early stage project portfolio where a
compelling value pathway was not evident. This includes our
decision to place the Jadar project in Serbia into care and
maintenance.
Our operational performance is on an upward trend, and strong
cash flows are being generated by our existing business, which will
be further boosted by the successful delivery of our committed
growth projects.
Peter Cunningham
Chief Financial Officer
19 February 2026
| Follow Peter on LinkedIn linkedin.com/in/peterlcunningham |
Annual Report on Form 20-F 2025 | 17 | riotinto.com |
Strategic report
Financial review
The Financial review and Business review for the year ended 31 December 2023 can be found on pages 24 to 29 and pages 32 to 39
respectively, of our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission on 23 February 2024.
Key financial highlights
Year ended 31 December | 2025 | 2024 | Change |
Net cash generated from operating activities (US$ millions) | 16,832 | 15,599 | 8% |
Purchases of property, plant and equipment and intangible assets (US$ millions) | 12,335 | 9,621 | 28% |
Free cash flow1 (US$ millions) | 4,025 | 5,553 | (28%) |
Consolidated sales revenue (US$ millions) | 57,638 | 53,658 | 7% |
Underlying EBITDA1 (US$ millions) | 25,363 | 23,314 | 9% |
Underlying earnings1 (US$ millions) | 10,868 | 10,867 | –% |
Profit after tax attributable to owners of Rio Tinto (net earnings) (US$ millions) | 9,966 | 11,552 | (14%) |
Underlying earnings per share (EPS)1 (US cents) | 669.2 | 669.5 | –% |
Ordinary dividend per share (US cents) | 402 | 402 | –% |
Underlying return on capital employed (ROCE)1 | 16% | 18% | |
At 31 December 2025 | At 31 December 2024 | ||
Net debt1 (US$ millions) | 14,362 | 5,491 | 162% |
1.This financial performance indicator is a non-IFRS (as defined below) measure which is reconciled to directly comparable IFRS financial measures (non-IFRS measures). It is used
internally by management to assess the performance of the business and is therefore considered relevant to readers of this document. It is presented here to give more clarity around
the underlying business performance of the Group’s operations. For more information on our use of non-IFRS financial measures in this report, see the section entitled “Alternative
performance measures” (APMs) and the detailed reconciliations on pages 270 to 274.
Income Statement
Financial results from our diversifying portfolio
To provide additional insight into the performance of our business, we
report underlying EBITDA and underlying earnings. Underlying EBITDA
and underlying earnings are non-IFRS measures. For definitions and a
detailed reconciliation of underlying EBITDA and underlying earnings to
the nearest IFRS measures, see pages 171, and 270 to 271, respectively.
The principal factors explaining the movements in underlying
EBITDA are set out in this table.
US$bn | |
2024 underlying EBITDA | 23.3 |
Prices | – |
Exchange rates | 0.1 |
Volumes and mix | 2.4 |
General inflation | (0.5) |
Energy | 0.1 |
Operating cash unit costs | 0.3 |
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects) | 0.4 |
Non-cash costs/other | (0.6) |
Change in underlying EBITDA | 2.0 |
2025 underlying EBITDA | 25.4 |
Financial figures are rounded to the nearest $100 million, hence small differences may
result in the totals.
•Underlying EBITDA: increased by 9% to $25.4 billion, driven by
a 5% uplift in sales volumes (on a copper equivalent, Rio Tinto
share basis), diversifying portfolio and cost discipline. In
conjunction with cost discipline, we achieved a 5% (2024 real
terms) reduction in our operating unit costs.
•Overall neutral impact of price movements reflects the
growing importance of our diversified model: the 6% lower
iron ore index price (FOB $/dmt) was offset by higher prices for
bauxite, alumina, aluminium (net of tariff impact), copper and
gold, demonstrating the resilience and value of our diversified
portfolio through the commodity cycle.
•Exchange rates $0.1 billion benefit: on average, the US dollar
strengthened by 2% against the Australian and Canadian dollars,
which was partially offset by exchange losses on revaluation of
balance sheet items as the US dollar weakened towards the end
of 2025.
•Volumes and mix $2.4 billion benefit: demonstrates our strong
foundation in operational excellence, with a 5% rise in sales
volumes (on a copper equivalent, Rio Tinto share basis).
•Uplift in volumes $2.9 billion: driven by a 12% uplift in
consolidated copper shipments underpinned by a 61% increase
in copper production at Oyu Tolgoi and increased gold grades
and volumes, along with higher throughput at Escondida. We
delivered a net 1% increase in Pilbara shipments (Rio Tinto
consolidated basis), demonstrating our operational resilience
following the four cyclones in Q1, the impact of which is
disclosed separately. The volume uplift also reflected
exceptional bauxite production underpinned by the Safe
Production System (SPS).
•Impact of cyclones in the Pilbara -$0.6 billion: the total
impact to underlying EBITDA of the cyclones was -$0.7 billion
(-$0.6 billion volume impact and cyclone recovery costs of
-$0.1 billion).
•Inflation net of energy prices -$0.4 billion impact: general
inflation on our cost base of $0.5 billion was partly offset by the
easing of diesel prices.
•Improved operating cash unit costs net $0.3 billion: sharper
focus on cost discipline.
•Cash unit cost improvement $0.8 billion: was underpinned
by enhanced cost efficiencies achieved on delivering higher
copper, bauxite and alumina volumes, whilst maintaining strong
cost discipline.
•Temporary cash unit cost increases -$0.4 billion: refined
copper production at Kennecott was 31% lower in 2025, due to the
planned smelter shutdown and limited ore availability from
geotechnical constraints until we gain access to higher grade ore in
Slice 2 in 2027. 2024 was a strong comparative year with more
refined production from the drawdown of inventory, following the
smelter rebuild in 2023. IOC's cash unit costs were impacted by
1% lower production and reflected investment in mine pit health
and operational stability.
•Higher aluminium raw material prices -$0.1 billion: reflected
increases in prices for coke and caustic, partially offset by alloys.
•Cyclone recovery costs in the Pilbara -$0.1 billion: included
repair and mitigation costs, supporting delivery of recovered
volumes.
•Exploration and evaluation $0.4 billion benefit: with Rincon
costs being capitalised from 1 July 2024 and a $0.2 billion gain on
sale of 30% interest in Winu.
•Non-cash costs/other -$0.6 billion impact: includes investment
to reflect our growth and diversification ambition, including
operating expenditure at Simandou as operations ramp up,
funding of Nuton programs and Arcadium acquisition and
integration costs. Furthermore, in 2024 we revised the closure
discount rate from 2.0% to 2.5%, increasing underlying EBITDA
by $0.2 billion, which did not recur in 2025.
Annual Report on Form 20-F 2025 | 18 | riotinto.com |
Strategic report | Financial review
Net earnings
The principal factors explaining the movements in underlying earnings and net earnings are set out below.
Net earnings and underlying earnings refer to amounts attributable to the owners of Rio Tinto. The net profit attributable to the owners of Rio
Tinto in 2025 was $10 billion (2024: $11.6 billion).
US$bn | |
2024 net earnings | 11.6 |
Changes in underlying EBITDA (see above) | 2.0 |
Increase in depreciation and amortisation (pre-tax) in underlying earnings | (0.6) |
Increase in interest and finance items (pre-tax) in underlying earnings | (0.2) |
Increase in tax on underlying earnings | (1.0) |
Increase in underlying earnings attributable to outside interests | (0.2) |
Total changes in underlying earnings | – |
Changes in items excluded from underlying earnings (see below) | (1.6) |
Movement in impairment charges net of reversals | 0.3 |
Movement from consolidation and disposal of interests in businesses | (0.9) |
Movement in closure estimates (non-operating and fully impaired sites) | (0.1) |
Movement in exchange differences and gains/losses on derivatives | (0.6) |
Other | (0.2) |
2025 net earnings | 10.0 |
Financial figures are rounded to the nearest $100 million, hence small differences may result in the totals.
•Increase in depreciation -$0.6 billion: in line with ramp-up of Oyu Tolgoi and inclusion of Arcadium since March.
•Higher taxes -$1.0 billion: increased contribution from Escondida with an associated higher underlying tax rate. Additionally, some
unrecognised deferred tax assets, disallowed costs and adjustments in respect of prior years around the Group, have driven the effective
tax rate on underlying earnings to 31.5% (28.3% in 2024).
•Higher finance items: reflecting an $8.9 billion increase in net debt in 2025 following the issuance of $9 billion of bonds to fund the
acquisition of Arcadium and for general corporate purposes.
Items excluded from underlying earnings
The differences between underlying and net earnings are set out in this table (all numbers are after tax and exclude amounts attributable to
non-controlling interests).
2025 | 2024 | |
Year ended 31 December | US$bn | US$bn |
Underlying earnings | 10.9 | 10.9 |
Items excluded from underlying earnings | ||
Net gains on consolidation and disposal of interests in businesses | – | 0.9 |
Impairment charges net of reversals | (0.2) | (0.5) |
Foreign exchange and derivative gains/(losses) on net debt and intragroup balances and derivatives not qualifying for hedge accounting | (0.4) | 0.2 |
Change in closure estimates (non-operating and fully impaired sites) | (0.2) | (0.1) |
Other | – | 0.2 |
Total items excluded from underlying earnings | (0.9) | 0.7 |
Net earnings | 10.0 | 11.6 |
Financial figures are rounded to the nearest $100 million, hence small differences may result in the totals.
On page 271 there is a detailed reconciliation from net earnings to underlying earnings, including pre-tax amounts and additional explanatory
notes. The differences between profit after tax and underlying EBITDA are set out in the table on page 171.
•In 2025, there were no significant gains on consolidation and disposal of interests in businesses. In 2024, these totalled $0.9 billion,
primarily related to a gain following the increase in ownership of Tiwai Point Smelter (NZAS), New Zealand, the sale of Sweetwater, a former
uranium legacy site in Wyoming, US, and the sale of Dampier Salt’s Lake MacLeod operation in Western Australia.
•Impairment charges net of reversals -$0.2 billion: mainly related to the tailings storage facility at the Yarwun alumina refinery, which was
expected to reach capacity by 2031. We will curtail production by 40% from October 2026 to allow another four years to explore and
develop technical solutions that could extend the refinery’s life, which resulted in an impairment charge in 2025. Refer to note 4 to the
Financial Statements of our 2025 Annual Report for further details. In 2024, we recognised impairment charges net of reversals of $0.5
billion (after tax), mainly related to our alumina refinery Queensland Alumina Limited (QAL) .
•Foreign exchange and derivative losses -$0.4 billion: includes post-tax losses on intragroup balances of $0.8 billion (2024: $0.6 billion
gain) offset by post-tax gains on external net debt of $0.3 billion (2024: $0.4 billion loss), primarily as a result of the strengthening of the
Australian dollar in 2025.
Net earnings and underlying earnings refer to amounts attributable to the owners of Rio Tinto.
Annual Report on Form 20-F 2025 | 19 | riotinto.com |
Strategic report | Financial review
Underlying EBITDA by product group
Underlying EBITDA | |||
2025 | 2024 | Change | |
Year ended 31 December | US$bn | US$bn | % |
Iron Ore | 15.2 | 17.0 | (11)% |
Aluminium & Lithium | 4.6 | 3.6 | 29% |
Copper | 7.4 | 3.4 | 114% |
Reportable segments total | 27.1 | 24.0 | 13% |
Simandou iron ore project | (0.1) | – | 336% |
Other operations | 0.1 | 0.5 | (90)% |
Central pension costs, share-based payments, insurance and derivatives | (0.1) | 0.2 | (148)% |
Restructuring, project and one-off costs | (0.6) | (0.3) | 139% |
Other central costs | (0.8) | (0.8) | –% |
Central exploration and evaluation | (0.2) | (0.2) | (3)% |
Total | 25.4 | 23.3 | 9% |
Financial figures are rounded to the nearest $100 million, hence small differences may result in the totals and year-on-year changes. Underlying EBITDA and underlying earnings are non-
IFRS measures used by management to assess the performance of the business and provide additional information which investors may find useful. For more information on our use of
non-IFRS financial measures in this report, see the section entitled "Alternative performance measures" (APMs) and the detailed reconciliations on pages 270 to 274.
Financial information has been recast in accordance with the organisational restructure announced on 27 August 2025.
•Other Operations: includes Rio Tinto Iron & Titanium, Borates and Diamonds. Underlying EBITDA was lower YoY due to weaker demand
for TiO2 in 2025 and where 2024 included a one-off insurance receipt ($0.2 billion).
•Central pension costs, share-based payments, insurance and derivatives netted to $0.1 billion: mainly associated with the premiums paid
by the business to our captive insurers offset by insurance claim settlements and unrealised losses on derivatives (vs gain in 2024).
•Restructuring, project and one-off costs $0.6 billion: YoY increase primarily in the first half, associated with the acquisition and integration of
Arcadium. It also includes centrally funded research and development programs (expected to reduce in 2026 following rationalisation), and
continued investment in Group-wide technology and systems to drive further productivity. In the second half, we simplified and streamlined our
operating model, resulting in a leaner Executive Committee (from 11 to 9) and senior management team (reduced roles by 22%). This resulted in
one-off restructuring costs in 2025, with the full benefit expected in 2026.
•Other central costs $0.8 billion: central corporate costs were flat YoY, reflecting cost productivity improvements delivered on simplifying
central functions, which offset inflationary pressures.
•Central exploration and evaluation $0.2 billion: during 2025, we further prioritised our strong portfolio of exploration projects with
activity in 15 countries across six commodities. This included simplifying the focus through decisions to cease exploration activity in Brazil
and Finland and any lithium exploration projects without remaining commitments. Importantly, we advanced the drill program and early
studies at the Nuevo Cobre project in Chile, in partnership with Codelco.
Consistently strong cash flow generation with disciplined investment
2025 | 2024 | |
Year ended 31 December | US$bn | US$bn |
Net cash generated from operating activities | 16.8 | 15.6 |
Purchases of property, plant and equipment and intangible assets | (12.3) | (9.6) |
Sales of property, plant and equipment and intangible assets | 0.1 | – |
Lease principal payments | (0.5) | (0.5) |
Free cash flow¹ | 4.0 | 5.6 |
Dividends paid to equity shareholders | (6.1) | (7.0) |
Acquisition of Arcadium (including acquired net debt) | (7.6) | – |
Net funding relating to Simandou (outside of free cash flow) | 0.8 | 0.5 |
Funding received relating to the Nemaska project | 0.2 | – |
Other | (0.1) | (0.3) |
Movement in net debt¹ | (8.9) | (1.3) |
Financial figures are rounded to the nearest $100 million, hence small differences may result in the totals.
•$16.8 billion of net cash generated from operating activities: reflecting the higher underlying EBITDA and a 66% underlying EBITDA cash
conversion rate, in line with 2024. There was a modest working capital cash outflow of $0.2 billion, including the impact of higher commodity prices in receivables.
•$12.3 billion of purchases of property, plant and equipment and intangible assets: comprised $4.1 billion of growth, $3.6 billion of
replacement, $4.5 billion of sustaining and $0.2 billion of decarbonisation capital (in addition to $0.4 billion of decarbonisation operational
expenditure). Our share of capital investment (see table below) was
$11.4 billion. We continue to fund our capital program in accordance with our disciplined capital allocation framework.
•$6.1 billion dividends paid: reflected payment of the 2024 final and the 2025 interim ordinary dividends.
•$7.6 billion Arcadium acquisition: includes $6.3 billion paid to Arcadium's shareholders, $0.4 billion paid to their convertible loan note
holders, consolidation of Arcadium's $0.7 billion net debt and $0.2 billion loaned by Rio Tinto to Arcadium prior to completion of the
acquisition. Transaction costs have been expensed and are included in operating expenses and are part of operating cash flows.
•$0.8 billion net inflow from Simandou funding: we received $1.3 billion from Chalco Iron Ore Holdings (CIOH) relating to CIOH's share
of Simandou project expenditure. This was partly offset by $0.6 billion funding provided to Winning Consortium Simandou (WCS) rail and
port entities.
•$14.4 billion net debt1 at 31 December 2025: the above movements resulted in an increase in net debt¹ of $8.9 billion in 2025.
1.This financial performance indicator is a non-IFRS (as defined below) measure which is reconciled to directly comparable IFRS financial measures
(non-IFRS measures). It is used internally by management to assess the performance of the business and is therefore considered relevant to readers of this document. It is presented
here to give more clarity around the underlying business performance of the Group’s operations. For more information on our use of non-IFRS financial measures in this report, see the
section entitled “Alternative performance measures” (APMs) and the detailed reconciliations on pages 270 to 274.
Annual Report on Form 20-F 2025 | 20 | riotinto.com |
Strategic report | Financial review
Year ended 31 December | 2025 US$m | 2024 US$m⁽ᶜ⁾ |
Purchase of property, plant and equipment and intangible assets | 12,335 | 9,621 |
Less: Sales of property, plant and equipment and intangible assets | (50) | (30) |
Capital expenditure | 12,285 | 9,591 |
Funding provided by the group to EAUs(a) | 557 | 965 |
Less: Equity or shareholder loan financing received/due from non-controlling interests(b) | (1,439) | (1,063) |
Rio Tinto share of capital investment | 11,403 | 9,493 |
(a)Funding provided by the group to EAUs relates to funding of WCS Rail and Port Holding Entities (WCS) in relation to the Simandou project, consisting of a direct equity investment in
WCS of US$249 million (2024: US$431 million) and loans provided totalling US$308 million (2024: US$534 million).
(b)We received US$1,321 million (2024: US$1,505 million) from Chalco Iron Ore Holdings Ltd (CIOH) interests of which US$1,160 million (2024: US$1,063 million) relates to CIOH’s 47%
share of capital expenditure incurred on the Simandou project and associated funding provided by the Group to EAUs during the current year on an accruals basis. In 2025, we also
received US$236 million from Investissement Québec (IQ) in respect of their 50% share of capital expenditure incurred on the Nemaska lithium development project. The equivalent
amount, on an accruals basis, of US$279 million is included in Rio Tinto share of capital investment.
(c)The 2024 comparative has been recast to include sales of property, plant and equipment and intangible assets which is now part of the definition.
Retaining a strong balance sheet
•Net debt1: $14.4 billion at 31 December 2025 increased by $8.9 billion compared to 2024 year end, mainly following completion of the
Arcadium acquisition in March.
•Net gearing ratio1 (net debt to total capital): 18% at 31 December 2025 (31 December 2024: 9%). See page 274.
•Total financing liabilities excluding net debt derivatives: $23.5 billion at 31 December 2025 following $9 billion bond issuance to fund
the acquisition of Arcadium and for general corporate purposes (31 December 2024: $13.8 billion) and the weighted average maturity was
11 years. At 31 December 2025, 76% of these liabilities were at floating interest rates (81% excluding leases). The maximum amount
within non-current borrowings maturing in any one calendar year is $2.8 billion, which matures in 2028.
•Cash and cash equivalent plus other short-term highly liquid investments: $9.2 billion at 31 December 2025 (31 December 2024:
$8.7 billion).
•Provision for closure costs: $17.8 billion at 31 December 2025 (31 December 2024: $15.7 billion). The key movements explaining the
increase were:
•+$0.9 billion due to a weakening of the US dollar against local currencies at 31 December 2025
•+$0.8 billion from amortisation of the discount on provisions
•+$1.2 billion from net increases to new provisions
•+$0.3 billion relating to the Arcadium acquisition
•partly offset by -$1.0 billion spend against the provision as we advanced our closure activities at Argyle, ERA (under a Management
Service Agreement), the Gove alumina refinery and other legacy sites, along with progressive closure activity across our operations.
Shareholder returns
Ten-year track record of 60% payout ratio on the ordinary dividend
2025 US$bn | 2024 US$bn | |
Ordinary dividend | ||
Interim⁽ª⁾ | 2.4 | 2.9 |
Final⁽ª⁾ | 4.1 | 3.7 |
Full-year ordinary dividend⁽ª⁾ | 6.5 | 6.5 |
Payout ratio on ordinary dividend | 60% | 60% |
(a)Based on weighted average number of shares and declared dividends per share for the respective periods and excluding foreign exchange impacts on payment. Financial figures are
rounded to the nearest $100 million, hence small differences may result in the totals.
Ordinary dividend per share declared | 2025 | 2024 |
Interim (US cents) | 148 | 177 |
Final (US cents) | 254 | 225 |
Full-year (US cents) | 402 | 402 |
Final dividend calendar | 2026 |
Ex-dividend date for Rio Tinto plc and Rio Tinto Limited ordinary shares | 5 March |
Ex-dividend date for Rio Tinto plc ADRs | 6 March |
Record date | 6 March |
Final date for Dividend Reinvestment Plan and alternate currency payment elections | 24 March |
Currency conversion date | 7 April |
Payment date | 16 April |
The 2025 final ordinary dividend to be paid to our Rio Tinto Limited shareholders will be fully franked. The Board expects Rio Tinto Limited to
be in a position to pay fully franked dividends for the foreseeable future.
The Board is committed to maintaining an appropriate balance between cash returns to shareholders and investment in the business, with
the intention of maximising long-term shareholder value while maintaining a strong balance sheet.
The Board expects total cash returns to shareholders over the longer term to be in a range of 40% to 60% of underlying earnings in
aggregate through the cycle. Both Rio Tinto plc and Rio Tinto Limited dividends are declared in US dollars.
1.This financial performance indicator is a non-IFRS (as defined below) measure which is reconciled to directly comparable IFRS financial measures (non-IFRS measures). It is used internally by
management to assess the performance of the business and is therefore considered relevant to readers of this document. It is presented here to give more clarity around the underlying business
performance of the Group’s operations. For more information on our use of non-IFRS financial measures in this report, see the section entitled “Alternative performance measures” (APMs) and the
detailed reconciliations on pages 270 to 274.
Annual Report on Form 20-F 2025 | 21 | riotinto.com |
Strategic report | Financial review
Capital projects
Project (Rio Tinto 100% owned unless otherwise stated) | Total capital cost (100% unless otherwise stated) | Status/Milestones | |
Iron ore | |||
Project: Western Range Location: Western Australia (WA), Australia Ownership: Rio Tinto (54%) and China Baowu Steel Group Co. Ltd (46%) Capacity: 25 Mtpa Approval: September 2022 First production: March 2025 To note: The project includes construction of a primary crusher and an 18- kilometre conveyor connection to the Paraburdoo processing plant. | $1.3bn (Rio Tinto share)1 | •Officially opened on 6 June 2025 on time and on budget. •Planned production ramp-up through 2026. | |
Project: Brockman (Brockman Syncline 1) Location: WA, Australia Ownership: 100% Capacity: 34 Mtpa Approval: March 2025 Planned first production: 2027 To note: The project is to extend the life of the Brockman regions in WA. | $1.8bn | •The project received all necessary State and Federal Government approvals in Q1 enabling bulk earthworks to commence in Q2 and mobilisation of key construction contractors in Q3. •First production remains on track for 2027. | |
Project: Hope Downs 2 (incl. Bedded Hilltop) Location: WA, Australia Ownership: Rio Tinto (50%) and Hancock Prospecting (50%) Capacity: 31 Mtpa Approval: June 2025 Planned first production: 2027 To note: The project is to extend the life of the Hope Downs 1 operation in WA. | $0.8bn (Rio Tinto share) | •Received all necessary State and Federal Government approvals in H1, enabling the commencement of construction activities. •Main construction activities continue to progress in line with plan, including bulk earthworks clearing and installation of tunnel segments over the rail line. •First production remains on track for 2027. | |
Project: West Angelas Sustaining Location: WA, Australia Ownership: Rio Tinto (53%), Mitsui Iron Ore (33%) and Nippon Steel (14%) Capacity: 35 Mtpa Approval: October 2025 Planned first production: 2027 To note: The project is to extend the life of the West Angelas hub in WA. | $0.4bn (Rio Tinto share) | •State Agreement was received in October 2025 allowing mobilisation and the start of construction activities in November. •First production remains on track for 2027. | |
Project: Simandou Location: Guinea, Africa SimFer mine ownership: SimFer (85%), Government of Guinea (GoG) (15%) SimFer mine capacity: 60 Mtpa2 (27 Mtpa Rio Tinto share) Approval: July 2024 Start date: first shipment in December 2025 To note: Investment in the Simandou high-grade iron ore project in Guinea in partnership with CIOH, a Chinalco-led consortium (the SimFer joint venture) and co-development of the rail and port infrastructure with Winning Consortium Simandou3 (WCS), Baowu and the Republic of Guinea (the partners) for the export of up to 120 Mtpa of iron ore mined by SimFer's and WCS's respective mining concessions.4 The SimFer joint venture5 will develop, own and operate a 60 Mtpa2 mine in blocks 3 & 4. WCS will construct the project's ~536 kilometre shared dual track main line, a 16 kilometre spur connecting its mine to the mainline as well as the WCS barge port, while SimFer will construct the ~70 kilometre spur line, connecting its mining concession to the main rail line, and the transhipment vessel (TSV) port. | $6.2bn (Rio Tinto share) | •We achieved first ore shipment in December. Ore is being railed from the SimFer mine to the main rail line via the SimFer rail spur and shipped through the WCS port while construction of the SimFer port is finalised. This marked the start of commissioning tests of the common rail to port infrastructure. Commissioning of the common rail to port infrastructure will be a complex process, and once complete, around the end of Q1 2026, we expect a 30 month ramp-up to full capacity. •SimFer mine construction progressed to plan, reaching 62% completion by year end, with bulk earthworks and permanent process facilities construction ongoing; ore continues to be crushed and stockpiled via temporary crushers, with first ore through permanent crushing facilities expected in H2 2026. •SimFer rail spur: Mechanically complete and operational. Full rail commissioning targeted for Q1 2026. •SimFer port: Advanced ahead of plan with 66% completed. Fabrication of transhipment vessels (TSV) continuing and the first TSV under-construction successfully launched in December in China. SimFer port commissioning is expected in Q1 2027 •Non-managed infrastructure - our partners confirm that construction is progressing well and is on track. |
Annual Report on Form 20-F 2025 | 22 | riotinto.com |
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Project (Rio Tinto 100% owned unless otherwise stated) | Total capital cost (100% unless otherwise stated) | Status/Milestones | |
Aluminium | |||
Project: Low-carbon AP60 aluminium smelter Location: Quebec, Canada Ownership: Rio Tinto (100%) Capacity: Project will add 96 new AP60 pots, increasing AP60 capacity by 160,000 tonnes of primary aluminium per annum Approval: June 2023 Planned start date: First hot metal and commissioning is expected by Q1 2026, smelter fully ramped up by end of 2026. To note: The investment includes up to $113 million of financial support from the Quebec government. This new capacity is expected to be in addition to 30,000 tonnes of new recycling capacity at Arvida, which has been rescheduled to open in Q4 2026 (previously Q4 2025). | $1.3bn | •Construction activities progressed to plan, with key milestones achieved in 2025 including completion of pot-to- pot module fabrication and installations, completion of main buildings and energisation of the first substations. •First hot metal and commissioning remains on track to be completed by Q1 2026. | |
Lithium | |||
Project: Rincon expansion Location: Salta province, Argentina Ownership: Rio Tinto (100%) Capacity: 60 ktpa (battery grade lithium carbonate) Approval: December 2024 Planned first production: 2028 with three-year ramp-up to full capacity To note: Project consists of the 3 ktpa starter plant and 57 ktpa expansion program. The mine is expected to have a 40-year6 life and operate in the first quartile of the cost curve. | $2.5bn | •Starter plant: commissioning completed and start-up in progress, aiming to reach full capacity by end 2026. •Regulatory approval received in August, enabling commencement of construction for the battery-grade lithium carbonate plant. Construction activities progressed during H2, including camp expansion works and development of site infrastructure. •Expansion project construction of full scale plant remains on track. | |
Project: Fénix expansion (1B) Location: Catamarca province, Argentina Ownership: Rio Tinto (100%) Capacity: 10 ktpa LCE (battery grade lithium carbonate) Planned first production: H2 2026 To note: product is carbonate, chloride | $0.7bn | •Project is mechanically complete with commissioning at 60%. Mechanical Vapour Recompression plant commissioned to support planned first production. •First production remains on track for H2 2026. | |
Project: Sal de Vida Location: Catamarca province, Argentina Ownership: Rio Tinto (100%) Capacity: 15 ktpa LCE Planned first production: H2 2026 To note: product is carbonate | $0.7bn | •Project is mechanically complete with commissioning at 40%. •First production remains on track for H2 2026. | |
Project: Nemaska Lithium Location: Quebec, Canada Ownership: Rio Tinto (50%), Investissement Québec (50%) Capacity: 28 ktpa LCE (100%) Planned first production: 2028 To note: product is integrated lithium hydroxide. | $1.1bn (Rio Tinto share) | •Project work progresses at Bécancour hydroxide plant in Quebec. Engineering is now complete with construction at 60%. Commissioning planned to commence in 2026 ahead of first production in 2028. •Whabouchi and Galaxy mines: we are undertaking a strategic business and capital discipline review with our partners in Canada to decide which of the two mines we will develop. We expect to make a decision in the first half of 2026, to ensure an integrated solution for spodumene supply to Bécancour is available by 2028. |
Annual Report on Form 20-F 2025 | 23 | riotinto.com |
Strategic report | Financial review
Project (Rio Tinto 100% owned unless otherwise stated) | Total capital cost (100% unless otherwise stated) | Status/Milestones | |
Copper | |||
Project: Oyu Tolgoi underground mine Location: Mongolia Ownership: Rio Tinto (66%), Government of Mongolia (34%) Capacity: from both the open pit and underground mines, average of ~500 kt⁷ per year from 2028 to 2036. Approval: 2016 First production: 2024, ramp-up till 2028 To note: Oyu Tolgoi is set to become the world’s 4th largest copper mine by 2030 | $7.06bn | •Primary Crusher #2 construction completed ahead of plan in Q3, with first ore delivered in September. •Underground project development completed during Q4. •Project is now focused on safe handover to operations. | |
Project: Kennecott open pit extension Location: Utah, US Ownership: Rio Tinto (100%) Approval: 2019 To note: The project scope includes mine stripping activities and some infrastructure development, including tailings facility expansion. The project will allow mining to continue into a new area of the orebody between 2026 and 2032. | $1.8bn | •Stripping will continue through 2027 with sustainable ore production from the second phase of the pushback expected to be reached in H2 2027. | |
Project: Kennecott North Rim Skarn (NRS) underground development8 Location: Utah, US Ownership: Rio Tinto (100%) Capacity: around 250 kt through to 20339 Approval: June 2023 First production: Q4 2025 To note: Original approval for $0.5bn with a further $0.1bn approved in December 2024 for additional infrastructure and geotechnical controls. | $0.6bn | •First production from NRS occurred in December 2025 with ramp-up from main stoping ramp sequence in Q1 2026. |
1.Rio Tinto share of the Western Range capital cost includes 100% of funding costs for Paraburdoo plant upgrades.
2.The estimated annualised capacity of approximately 60 million dry tonnes per annum iron ore for the Simandou life of mine schedule was previously reported in a release to the
Australian Securities Exchange (ASX) dated 6 December 2023 titled “Investor Seminar 2023”. Rio Tinto confirms that all material assumptions underpinning that production target
continue to apply and have not materially changed.
3.WCS is the holder of Simandou North Blocks 1 & 2 (with the Government of Guinea holding a 15% interest in the mining vehicle and WCS holding 85%) and associated infrastructure.
WCS was originally held by WCS Holdings, a consortium of Singaporean company, Winning International Group (50%) and Weiqiao Aluminium (part of the China Hongqiao Group)
(50%). On 19 June 2024, Baowu Resources completed the acquisition of a 49% share of WCS mine and infrastructure projects with WCS Holdings holding the remaining 51%. In the
case of the mine, Baowu also has an option to increase to 51% during operations. During construction, SimFer will hold 34% of the shares in the WCS infrastructure entities with WCS
holding the remaining 66%.
4.WCS holds the mining concession for Blocks 1 & 2, while SimFer holds the mining concession for Blocks 3 & 4. SimFer and WCS will independently develop their mines.
5.SimFer Jersey Limited is a joint venture between the Rio Tinto Group (53%) and Chalco Iron Ore Holdings Ltd (CIOH) (47%), a Chinalco-led joint venture of leading Chinese SOEs
(Chinalco (75%), Baowu (20%), China Rail Construction Corporation (2.5%) and China Harbour Engineering Company (2.5%)). SimFer S.A. is the holder of the mining concession
covering Simandou Blocks 3 & 4, and is owned by the Guinean State (15%) and SimFer Jersey Limited (85%). SimFer Infraco Guinée S.A. will deliver SimFer’s scope of the co-
developed rail and port infrastructure, and is co-owned by SimFer Jersey (85%) and the Guinean State (15%). SimFer Jersey will ultimately own 42.5% of La Compagnie du
Transguinéen, which will own and operate the co-developed infrastructure during operations.
6.The production target of approximately 53 kt of battery grade lithium carbonate per year for a period of 40 years was previously reported in a release to the ASX dated 4 December 2024
titled “Rincon Project Mineral Resources and Ore Reserves: Table 1”. Rio Tinto confirms that all material assumptions underpinning that production target continue to apply and have not
materially changed. Plans are in place to build for a capacity of 60 kt of battery grade lithium carbonate per year with debottlenecking and improvement programs scheduled to unlock
this additional throughput. Capacity of 60 ktpa is comprised of 3 ktpa starter plant,
50 ktpa full scale plant and 7 ktpa additional optimisation.
7.The ~500 thousand tonne per year copper production target (stated as recoverable metal) for the Oyu Tolgoi underground and open pit mines for the years 2028 to 2036 was previously
reported in a release to the Australian Securities Exchange (ASX) dated 11 July 2023 “Investor site visit to Oyu Tolgoi copper mine, Mongolia”. All material assumptions underpinning that
production target continue to apply and have not materially changed.
8.The NRS Mineral Resources and Mineral Reserves, together with the Lower Commercial Skarn (LCS) Mineral Resources and Mineral Reserves, form the Underground Skarns Mineral
Resources and Mineral Reserves.
9.The 250 thousand tonne copper production target for the Kennecott underground mines over the years 2023 to 2033 was previously reported in a release to the Australian Securities
Exchange (ASX) dated 20 June 2023 "Rio Tinto invests to strengthen copper supply in US”. All material assumptions underpinning that production target continue to apply and have not
materially changed.
Annual Report on Form 20-F 2025 | 24 | riotinto.com |
Strategic report | Financial review
Future options
Project | Status | |
Iron Ore: Pilbara brownfields | ||
Location: WA, Australia Ownership: Rio Tinto (100%) Capacity: over the medium term, our Pilbara system capacity remains between 345 and 360 million tonnes per year. Meeting this range, and the planned product mix, will require the approval and delivery of the next tranche of replacement mines over the next five years. | •Four of the five major replacement mines are currently ramping up or under construction. •The Greater Nammuldi extension project continues to be optimised with a pathway to first ore in 2028.1 | |
Iron Ore: Rhodes Ridge | ||
Location: WA, Australia Ownership: Rio Tinto (50%), Mitsui & Co. (40%), AMB Holdings Pty Ltd (10%)2 Capacity: 40 to 50 Mtpa First ore: end of decade To note: The Rhodes Ridge Joint Venture has approved a feasibility study to progress development of the first phase of the Rhodes Ridge project. The feasibility study will assess development of an operation with initial annual production capacity of 40 to 50 Mtpa, and is scheduled to commence in Q1 2026 and expected to conclude in 2029. The development will use Rio Tinto’s rail, port and power infrastructure. Following completion of the pre-feasibility study and with the environmental referral planned, we aim to progress toward reporting an initial Mineral Reserve for Rhodes Ridge in 2026, contingent on continued review of all relevant modifying factors. | •In December 2025, the Rhodes Ridge Joint Venture approved a $191 million (Rio Tinto share $96 million) feasibility study to progress development of the first phase of the project. •The joint venture partners (Rio Tinto 50%, Mitsui 40% and AMB Holdings 10%) intend to invest a further $146 million on exploration between 2026 and 2028 as part of ongoing study phases. •The feasibility study is expected to conclude in 2029. | |
Copper: Resolution | ||
Location: Arizona, US Ownership: Rio Tinto (55%), BHP (45%) To note: proposed underground copper mine in the Copper Triangle, in Arizona. | •On 20 June 2025, the United States Forest Service (USFS) republished the Final Environmental Impact Statement (FEIS) and draft Record of Decision (ROD). Absent a Court order, this publication would have enabled completion of the congressionally mandated land exchange between Resolution Copper and the federal government. But, on 18 August 2025, as the land exchange neared completion, the Ninth Circuit Court of Appeals issued an administrative order to enjoin the land exchange. •On 6 October 2025, in separate litigation brought by the Apache Stronghold, a non-profit organisation, the U.S. Supreme Court denied the group's petition for rehearing in its case seeking to prevent the land exchange. •Oral arguments in the Ninth Circuit Court of Appeals were completed on 7 January 2026. A decision is anticipated in 2026. •Resolution continues to seek to demonstrate to the Courts why the land exchange should proceed as directed by Congress. The land exchange will enable further underground mine development and place thousands of acres of ecologically and culturally significant land into permanent conservation. | |
Copper: Winu | ||
Location: WA, Australia Ownership: Rio Tinto (70%), Sumitomo Metal Mining (SMM) (30%) To note: In late 2017, we discovered copper-gold mineralisation at the Winu project (Paterson Province in Western Australia). In 2021, we reported our first Indicated Mineral Resource. The pathway remains subject to regulatory and other required approvals. Project Agreement negotiations with Nyangumarta and the Martu Traditional Owner Groups remain our priority. | •The Joint Venture agreement with SMM was completed on schedule in Q4. •The pre-feasibility study with an initial processing capacity development of up to 10 Mtpa was also completed in Q4. •The project has advanced to a feasibility study, which is currently in progress and scheduled for completion by the end of 2026. •The Environmental Review Document has been submitted to the Western Australian Environmental Protection Authority (EPA) for assessment in collaboration and support with both Traditional Owner Groups. | |
Copper: La Granja | ||
Location: Cajamarca, Peru Ownership: Rio Tinto (45%), First Quantum Minerals (55%) To note: In August 2023, we completed a transaction to form a joint venture with First Quantum Minerals (FQM) that will work to unlock the development of the La Granja project, one of the largest undeveloped copper deposits in the world, with potential to be a large, long-life operation. FQM acquired its stake for $105 million. It will invest up to a further $546 million into the joint venture to sole fund capital and operational costs to take the project through a feasibility study and toward development. | •Evaluation of drill results is underway - results are expected in Q1 2026. •Progressing the feasibility study. |
1.All necessary State and Federal Government approvals have been received. The project is still subject to Traditional Owner consultation.
2.Mitsui holds its 40% interest through an entity named SPC Blue Pty Ltd and AMB holds its 10% interest through Rhodes Ridge Mining (No 1) Pty Ltd, a wholly owned subsidiary of
Wright Prospecting Pty Ltd, that is managed and controlled by AMB.
Annual Report on Form 20-F 2025 | 25 | riotinto.com |
Strategic report | Financial review
Project | Status | |
Aluminium: Arctial partnership | ||
Location: Finland To note: Partnership agreement with the Swedish investment company Vargas, Mitsubishi Corporation and other international and local industry partners to study a low carbon aluminium greenfield opportunity in Finland. As the strategic industrial partner, Rio Tinto will provide the Arctial partnership with access to its proven industry-leading AP60 technology and assist in what would be the first AP60 deployment in an aluminium smelter outside Quebec, Canada. | •Arctial JV was formally established in Q2 2025 and a pre-feasibility study and environmental impact assessment study were conducted during the remainder of 2025. •The JV partners will review the outcome of those studies and are expected to consider next steps for further development of the project during Q1 2026. | |
Lithium | ||
Location: Argentina | •Developing the blueprint in 2026 for two future hubs, targeting $30/kg capital intensity with a 30-month timeline for development and <$5/kg C1 operating costs. | |
Location: Atacama region, Chile To note: •Binding agreement to form a joint venture (JV) with Codelco to develop and operate the high-grade Salar de Maricunga project. •Binding agreement with ENAMI to form a JV to develop the Salares Altoandinos project. | •Expected agreement closure dates: H1 2026 (for both Maricunga and Altoandinos), subject to receipt of all applicable regulatory approvals and satisfaction of other customary closing conditions. | |
Location: Serbia Ownership: Rio Tinto (100%) To note: Development of the greenfield Jadar lithium-borates project in Serbia to include an underground mine with associated infrastructure and equipment, as well as a beneficiation chemical processing plant. | •Project has been moved to care and maintenance. |
Annual Report on Form 20-F 2025 | 26 | riotinto.com |
Strategic report
 | Image: Bauxite stockpiles at the reclaimer area, Amrun Operations, Australia. |
Aluminium & Lithium
Aluminium & Lithium now sit in a single product group, reinforcing our portfolio of critical materials essential to the
transport, energy infrastructure and construction sectors. Our Aluminium business is built on a global footprint of
world-class assets, with an integrated bauxite-to-aluminium value chain. We have a diversified offering that includes
low-carbon primary and secondary aluminium, recycled aluminium, and value-added products. In Lithium, we bring
together spodumene and brine mining operations with downstream processing capability to produce high-quality
lithium hydroxide, lithium carbonate and various other lithium products. With premier resource bases in both
businesses globally, and the operational strength and flexibility to adapt to evolving customer needs, we are well
positioned to meet rising demand for the energy transition.
Snapshot of the year
AIFR 0.54 (2024: 0.38) | Employee numbers1 19,000 (2024: 16,000) | |
Net cash generated from operating activities $3.8bn (2024: $2.8bn) | Scope 1 and 2 GHG emissions (equity Mt CO2e) 24.3 Mt (2024: 22.9 Mt) |
Safety
Across Aluminium & Lithium, we prioritise safety by focusing
on preventing fatal and life-changing harm, strengthening risk
management and critical controls, and continuously elevating our
safety culture through leadership, learning and accountability.
For Aluminium, in 2025, we experienced an increase in the all-injury
frequency rate (AIFR) from 0.38 to 0.55, partly reflecting a change in
injury classification. This prompted targeted work to improve injury
performance through site-specific improvement plans. Our Safety
Maturity Model (SMM) continued to progress through structured field
engagements and integration into planning and assurance
processes, supporting our long-term goal of maturing risk
management and building a culture of accountability and care. We
initiated a safety reset in all regions to reverse the increasing trend,
which was successfully implemented in the second half of the year.
We recorded 19 potential fatal incidents (PFIs) in Aluminium, with
critical risks primarily related to contact with electricity, falling
objects, and vehicle collision or rollover. To address these, we
strengthened Critical Risk Management practices and improved the
effectiveness of controls. We also enhanced our incident
investigation process by introducing more rigorous action
effectiveness reviews, ensuring that learnings translate into
meaningful improvements.
For our Lithium business, the AIFR increased slightly from 0.24
to 0.30 in 2025. This includes existing operations, the startup of
2 new lithium extraction-to-carbonate sites - Rincon 3000 starter
plant and Sal de Vida - and the expansion of Fénix in Argentina. We
recorded one PFI in Lithium, with risk linked to vehicle collision and
rollover. Our Lithium business has begun integrating into
Rio Tinto systems, while enhancing operational ownership and
accountability for risk awareness and mitigation.
Moving forward, by prioritising engineering design, strategic capital
investment and ongoing research, we aim to minimise hazards
and remove personnel from high-risk areas as established in our
sustainability roadmap.
Market insights
World aluminium semi-fabricated demand rose by approximately 2%
year on year in 2025. The global energy transition (in electric
vehicles and renewables) remained the driver of growth while
demand in building and construction remained weak.
World aluminium primary production rose by around 1.7% in 2025
with lower growth in China as it remained constrained by its self-
imposed aluminium capacity cap. Commissioning of greenfield
smelting capacity in Indonesia and smelter restarts in Europe
(excluding Russia) and Brazil drove growth in production outside
China. Overall, the global aluminium market recorded a small deficit
in 2025, and visible weeks of inventory remain at a low level.
The London Metal Exchange (LME) cash aluminium price recorded
an impressive performance in the 2nd half of 2025. A high investor
net long position in the LME supported by a weak US dollar drove
the rally in the price. The regional market premium in the US hit a
record high by the 4th quarter, following the introduction of a 50%
US import tariff on aluminium from June which led to lower imports
and subsequent destocking of aluminium. The Australian FOB (free
on board) alumina price reached a multi-year low by the 4th quarter
on increased availability of new refinery supply in China and
Indonesia. Guinean bauxite exports to China recorded robust growth
in 2025, despite the revocation of certain Guinean bauxite mining
licences by the government. China CIF (cost, insurance and freight)
bauxite prices softened through the year because of increased
availability of bauxite.
2025 saw another strong year of lithium demand growth of
approximately 25%. Global lithium supply increased 14% year on
year, supported by Chinese investments in Africa and new projects
in South America. After a weak first half of 2025, lithium carbonate
prices surged 80% over the 2nd half to $14,500/t as of
31 December, led by supply concerns in China and growing
optimism on the demand for battery energy storage systems
(BESS). Although prices were soft in the first half, supply cuts have
been limited as producers focused on cost reductions and secured
funding to maintain production. Long-term fundamentals remain
strong, with further investment required to meet growing demand
under supportive EV and BESS policies.
1.This represents the average number of employees for the year, including the
Group's share of non-managed operations and joint ventures, rounded to the nearest
thousand. Refer to page 268 for more information.
Annual Report on Form 20-F 2025 | 27 | riotinto.com |
Strategic report | Aluminium & Lithium
Aluminium & Lithium
Year ended 31 December | 2025 | 2024 | Change |
Bauxite production ('000 tonnes — Rio Tinto share) | 62,400 | 58,653 | 6% |
Alumina production ('000 tonnes — Rio Tinto share) | 7,593 | 7,303 | 4% |
Aluminium production ('000 tonnes — Rio Tinto share) | 3,380 | 3,296 | 3% |
Lithium carbonate equivalent (LCE) production ('000 tonnes — Rio Tinto share)1 | 57 | NA | NA |
Segmental revenue (US$ millions)2 | 17,056 | 13,650 | 25% |
Average realised aluminium price (US$ per tonne) | 3,318 | 2,834 | 17% |
Underlying EBITDA (US$ millions) | 4,574 | 3,552 | 29% |
Net cash generated from operating activities (US$ millions) | 3,815 | 2,847 | 34% |
Capital expenditure — excluding EAUs (US$ millions)3 | (3,346) | (1,848) | 81% |
Free cash flow (US$ millions) | 416 | 962 | (57%) |
Aluminium underlying return on capital employed4 | 13% | 10% |
Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result in the year-on-year change. Financial information has been recast in
accordance with the organisational restructure announced on 27 August 2025.
1.Q1 2025 LCE production from Arcadium was 17 kt of which 6 kt was produced since completion of the acquisition in March. Accordingly, of the 57 kt LCE production in 2025, 46 kt was
attributable to Rio Tinto.
2.2025 freight revenue for Bauxite business was $493 million (2024: $498 million).
3.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. It
excludes equity accounted units (EAUs).
4.Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed.
Financial performance
•Underlying EBITDA: Overall we delivered a significant uplift in
profitability with a 29% increase in underlying EBITDA to $4.6 billion
primarily driven by the Aluminium business which contributed $4.4
billion and delivered an underlying ROCE of 13%. Our Lithium
business contributed $0.2 billion, including Arcadium following
completion of the acquisition in March. The result reflects strong
bauxite and aluminium prices, improved market premiums alongside
higher volumes, partly offset by approximately $1 billion of gross costs
associated with US tariffs on our primary aluminium exports. From
March 2025, we lost the 10% tariff exemption under Section 232, from
which we benefited since 2018. The US Midwest premium has
adapted to levels fully compensating for the 50% tariff.
•Capital investment: YoY increase primarily reflecting continued
investment in growth. This incorporates approximately $1.4 billion capital
expenditure related to Lithium projects, including Rincon, Fénix
expansion (1B), Sal de Vida and Nemaska. Capital expenditure
increased by about $300 million to $2 billion in the Aluminium business,
reflecting the acceleration of the low-carbon AP60 aluminium smelter
project in Quebec, Canada and early works to increase capacity at the
Weipa Southern Operations in Queensland, Australia.
•Cash flow: Aluminium business generated $1.9 billion of free cash flow,
a 45% YoY increase, driven by higher underlying EBITDA, and
represents an increase in underlying EBITDA cash conversion
compared to 2024. This was partly offset by a $1.5 billion cash outflow in
the Lithium business mainly on investment in growth capital projects.
•Pricing: Our aluminium price comprises the LME price, a market
premium and a value-added product (VAP) premium.
•Realised price:
$/tonne | 2025 | 2024 | 2025 vs 2024 |
Average LME price | 2,632 | 2,419 | +9% |
Average product premiums for VAP sales1 | 336 | 295 | +14% |
1.Our VAP sales were 42% of primary metal sold in 2025 (2024: 46%).
Review of operations
•Bauxite: Delivered another steady year with production increasing 6%
YoY to a new annual production record of 62.4 Mt. This followed a 7%
increase in the prior year, reflecting sustained operational improvements
from application of the Safe Production System at Amrun.
•Alumina: 4% YoY increase in production, driven by improving plant
performance at Yarwun and stable operations across other sites.
At Yarwun, we announced we will reduce production by 40% from
October 2026 to extend the operation's life until 2035 and allow time
to explore further life-extension and modernisation options.
•Aluminium: Stable production as the group continued to adapt to
market and supply chain dynamics, maintaining output near historical
highs. The YoY increase in production reflected increased ownership
interests in Boyne Smelters from 59.4% to 71% effective 1 October
and further to 73.5% from 1 November 2024, and Tiwai Point Smelter
from 79.4% to 100% effective 1 November 2024. New Zealand
Aluminium Smelter (NZAS) returned to full production rates in Q4
following the call from Meridian Energy to reduce electricity usage from
early March to 15 June 2025. The Kitimat smelter continued stable
operations despite operating with fewer pots than targeted, as we
adapt to lower reservoir levels.
•Lithium: Completed the acquisition of Arcadium in March, formed Rio
Tinto Lithium business together with Rincon. Achieved record Q4
hydroxide production at Bessemer City and record carbonate
production at Fénix and Olaroz, supported by the ramp-up to
nameplate capacity of Fénix 1A and Olaroz stage 1 running at full
capacity as planned, with stage 2 performing in line with expectations.
Mt Cattlin spodumene operation in Western Australia was placed on
care and maintenance by end of March 2025.
| For more information about our capital projects and future growth options, see pages 21-25. |
Case study |
Amrun: Unlocking full potential in bauxite
Our Amrun bauxite operation in Queensland, Australia continues to deliver strong performance, underpinned by a focused journey toward operational
excellence. Building on the substantial work done in 2024, Amrun produced 25.3 million tonnes in 2025 – an 8.7% uplift that marks a significant step
toward sustained growth.
This increase reflects disciplined execution, empowered teams, and strategic enhancements across the value chain. A standout example is a low-cost
enhancement to the crude ore circuit that improved feed stability and unlocked an additional 900,000 tonnes of production. These results demonstrate
the impact of our Safe Production System in driving flow and reducing variability.
Amrun’s transformation has been enabled by clear leadership focus, strong operational ownership at all levels, and a mindset geared toward
innovation and problem solving. With these foundations in place, the site is well positioned to sustain high performance and pursue further productivity
gains. Amrun’s success offers a blueprint for scalable excellence across our aluminium portfolio, supporting our commitment to operational efficiency,
resilience and long-term value creation.
 | For more information see riotinto.com/unlockingpotential |
Annual Report on Form 20-F 2025 | 28 | riotinto.com |
Strategic report
| Image: Copper cathode produced using our Nuton® Technology at the Johnson Camp mine, Arizona. Read more in the case study on page 29. |
Copper
To meet strong structural demand driven by electrification, decarbonisation and technological infrastructure such as
data centres, we are targeting 1 million tonnes of copper annually by 2030. Coupled with operational excellence and
advanced technical capabilities, our focus is on delivering disciplined, resilient and profitable growth from our global
portfolio of operations and projects.
Snapshot of the year
AIFR 0.25 (2024: 0.32) | Employee numbers1 9,000 (2024: 9,000) | |
Net cash generated from operating activities $4.7bn (2024: $2.6bn) | Scope 1 and 2 GHG emissions (equity Mt CO2e) 0.9 Mt (2024: 1.0 Mt) |
Safety
Safety is our first priority. We never lose sight of the responsibility
we carry to ensure our people are removed from harm’s way at
every level of our Copper business, every day.
In 2025, we recorded 17 potential fatal incidents (PFIs), down from
24 the previous year. Notable critical risks associated with these
events included falls from height, falling objects and vehicle
incidents. This downward trend reflects our continued focus on
Critical Risk Management and proactive measures to prevent
serious harm.
Our all-injury frequency rate (AIFR) reduced to 0.25, a marked
improvement from 0.32 in 2024. Employee AIFR is 0.14, while
contractor AIFR is 0.31, highlighting the importance of ongoing
efforts to improve monitoring and two-way learning with our
contractor partners.
During the year, we introduced the Copper Fatality Elimination
Forum. This is dedicated to rigorously reviewing potential fatal
events to ensure transferable learnings are converted into
meaningful actions, better hazard identification and stronger control
effectiveness.
Our Safety Maturity Model (SMM) saw improvements through
structured field engagements, while sites embedded SMM principles
into their planning and assurance processes.
Concurrently, we reinforced site-specific health and hygiene risk
management initiatives, including mitigation projects to reduce
exposure to silica at Oyu Tolgoi, and silica and noise at Kennecott.
We also maintained strong focus on psychological safety, delivering
annual mental health and psychosocial training across US assets.
Contractor safety performance at Kennecott saw improvement
through Keep Each Other Safe workshops to reinforce Rio Tinto risk
management practices. These efforts were complemented by
inclusive engagement, ensuring all contracting partners participated
in safety forums and programs.
For 2026, our focus will remain on fatality elimination, strengthened
risk management and compliance, and maintaining our social
licence. These priorities will further mature our approach to risk
management by embedding it into core business decisions and
reinforcing a culture of accountability and operational excellence.
Oyu Tolgoi and Kennecott will continue advancing our assurance
processes, while Resolution will implement risk‑based assurance for
material risks. Supported by a high‑level Copper integrated plan, we
will monitor progress and control performance more systematically
throughout the year, improving visibility and governance.
Market insights
London Metal Exchange (LME) prices finished 2025 at a record high
of $12,504 per tonne (567 US cents per pound) in response to a
succession of supply disruptions at major mines, a softer US dollar,
and low inventory at LME warehouses. Alongside weak supply
growth, copper demand rose by 3% in 2025. This was led by strong
electrification-related demand in China, which more than offset
weakness in other sectors, such as construction. Gold also hit
record highs, breaking past $4,000 per ounce, as rate cuts, dollar
weakness and geopolitical tensions drove investor buying.
The US Government initiated a Section 232 tariff investigation
into copper during the first half of 2025. As a result, the Chicago
Mercantile Exchange (CME) copper price traded significantly above
the LME as markets priced in potential tariffs. On 31 July, the US
Government announced Section 232 tariffs on copper. These did not
cover refined copper. As a result, the CME price fell back towards
the LME price. For the year as a whole, CME copper averaged 30
US cents per pound ($667 per tonne) above the LME price.
The copper concentrate market remains exceptionally tight due
to excess smelting capacity. Spot treatment and refining charges
continue to trade in negative territory as a result. The 2026 annual
benchmark has settled at $0 per tonne, an all-time low.
1.This represents the average number of employees for the year, including the
Group's share of non-managed operations and joint ventures, rounded to the nearest
thousand. Refer to page 268 for more information.
Annual Report on Form 20-F 2025 | 29 | riotinto.com |
Strategic report | Copper
Copper
Year ended 31 December | 2025 | 2024 | Change |
Copper production ('000 tonnes) (consolidated basis)1 | 883 | 793 | 11% |
Gold production - mined ('000 oz - Rio Tinto share) | 464 | 282 | 65% |
Segmental revenue (US$ millions) | 13,729 | 9,275 | 48% |
Average realised copper price (US cents per pound)2 | 457 | 422 | 8% |
Underlying EBITDA (US$ millions) | 7,369 | 3,437 | 114% |
Net cash generated from operating activities (US$ millions)3 | 4,702 | 2,590 | 82% |
Capital expenditure — excluding EAUs (US$ millions)4 | (1,872) | (2,055) | (9%) |
Free cash flow (US$ millions) | 2,820 | 526 | 437% |
Underlying return on capital employed (product group operations)5 | 14% | 6% |
Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result in the year-on-year change.
1.Includes Oyu Tolgoi and Kennecott on a 100% consolidated basis, and Escondida on an equity share basis.
2.Average realised price for all units sold. Realised price does not include the impact of the provisional pricing adjustments, which positively impacted revenues by $758 million (2024: $92
million negative).
3.Net cash generated from operating activities excludes the operating cash flows of equity accounted units (EAUs) but includes dividends from EAUs (Escondida).
4.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. It
excludes EAUs.
5.Underlying return on capital employed (ROCE) is defined as underlying earnings (product group operations) excluding net interest divided by average capital employed.
Financial performance
•Underlying EBITDA: Delivered a standout year with underlying
EBITDA up 114% driven by a 9% increase in copper LME price and a
12% increase in consolidated copper sales volumes, further supported
by the strong gold price and higher gold volumes from Oyu Tolgoi. In
addition, a $195 million gain was recognised from the sale of a 30%
interest in the Winu copper project in Australia to Sumitomo Metal
Mining, with the joint venture agreement completed in Q4. The strong
underlying EBITDA supported a 14% return on capital employed,
increasing by 8 percentage points from 2024.
•Unit costs: Copper C1 net unit costs, at 67 cents per pound were
lower than the revised guidance provided at the Capital Markets Day
on 4 December 2025 (80 - 100c/lb). This reduced by 53% from 2024
(142 c/lb), driven by higher copper production at Escondida and Oyu
Tolgoi. In addition, higher by-product credits from higher gold volumes
and a rising gold price further reduced net unit costs. This was
partially offset by cost inefficiencies at Kennecott on lower refined
production.
•Capital investment: 9% YoY decrease in capital investment as we
completed the Oyu Tolgoi underground project development in Q4.
•Cash flow: We generated 82% higher net cash from operating
activities of $4.7 billion, driven by the higher underlying EBITDA, albeit
representing a lower underlying EBITDA cash conversion, mainly due
to lower dividends from Escondida relative to its underlying EBITDA
as the asset moves into an investment phase. Together with a 9%
reduction in capital investment, free cash flow of $2.8 billion was
delivered, a substantial uplift from 2024.
Review of operations
•Production: 11% increase in copper production YoY, mainly driven by
a 61% YoY increase from Oyu Tolgoi supported by a now fully
operational conveyor to surface combined with higher grade from the
open pit. We also benefited from improving head grade and recovery
rates at Escondida. This was partially offset by lower refined volumes
at Kennecott due to a planned 45-day smelter shutdown and a strong
2024 where we benefited from the drawdown of inventory following
the smelter rebuild in late 2023. Mined production at Kennecott was
stable YoY as we continue to successfully navigate challenging
geotechnical conditions.
•Oyu Tolgoi: ramp-up is on track to reach an average of around 500
thousand tonnes of copper per year (100% basis and stated as
recoverable metal) from 2028 to 2036.1 Continuing engagement with
Government of Mongolia including for the Entrée licence transfer. We
maintain flexibility and options in the mine plan, including bringing
Panel 1 or Panel 2 South into production first, depending on the timing
of the licence transfer.
| For more information about our capital projects and future growth options, see pages 21-25. |
1.The 500 thousand tonne per year copper production target (stated as recoverable metal)
for the Oyu Tolgoi underground and open pit mines for the years 2028 to 2036 was
previously reported in a release to the Australian Securities Exchange (ASX) dated 11
July 2023 “Investor site visit to Oyu Tolgoi copper mine, Mongolia”. All material
assumptions underpinning that production target continue to apply and have not
materially changed.
Case study |
Nuton® Technology moves from concept to copper cathode in 18 months
In December, we announced the production of first copper from our advanced bioleaching technology venture, Nuton, which successfully
commissioned its inaugural industrial-scale demonstration at Johnson Camp Mine in Arizona. The rapid speed of deployment in just 18 months is a
major breakthrough, showcasing that cleaner, faster, and more efficient copper production is possible.
Nuton® Technology eliminates the need for conventional refining and smelting by relying on naturally occurring microorganisms to leach copper from
primary sulphide ores. The process requires significantly less energy and water and also eliminates the need for tailings. Primary sulphide ores are
traditionally considered difficult to process despite accounting for up to 70% of the world’s untapped copper.
In 2026, Nuton will validate its long-term technical performance at Johnson Camp Mine while looking to other demonstration sites. Its modular brick
system is designed to be rapidly scaled and tailored according to different orebody characteristics.
| For more information see riotinto.com/nuton |
Annual Report on Form 20-F 2025 | 30 | riotinto.com |
Strategic report
| Image: Our Western Range iron ore mine in Western Australia, which opened in 2025. Read more in the case study on page 31. |
Iron Ore
In 2025, we announced we are bringing together our world-class Pilbara Iron Ore operations in Western Australia, the
Iron Ore Company of Canada (IOC) and – once fully operational – Simandou in Guinea. This unified portfolio will
create a global iron ore business, combining proven performance with future potential, enabling shared safety
practices, cutting-edge technology and operational excellence across our network. It positions us to deliver stronger
outcomes for customers, communities and shareholders.
Snapshot of the year
AIFR 0.66 (2024: 0.65) | Employee numbers1 18,000 (2024: 19,000) | |
Net cash generated from operating activities $10.6bn (2024: $12.1bn) | Scope 1 and 2 GHG emissions (equity Mt CO2e) 3.8 Mt |
Safety
Nothing is more important than the safety and wellbeing of our
people, and fatality prevention remains our core priority across
all operations. For IOC and our Pilbara Iron Ore operations, we’ve
seen a sustained reduction in potential fatal incidents (PFIs), down
from 32 in 2022 to 21 in 2025. Most of these incidents continue
to involve falling objects and falls from heights. Our all-injury
frequency rate (AIFR) was 0.66, increasing from 0.65 in 2024.
Across our Pilbara Iron Ore operations, we continued with our
program of work to strengthen critical controls relating to fall from
heights and falling objects risks. For example, we reviewed elevated
work platform standards to verify the stability and suitability of
equipment, updated scaffold and rope access guidance, and we are
working with our industry partners to standardise barricading
controls. We have been focusing on safety and health with our
contractor partners who complete some of the high risk work such
as shutdowns, and saw an improvement in 2025. We will continue to
focus on this area in 2026. To reduce hand injuries, we introduced
a program combining targeted training and tooling redesign, to keep
hands out of harm’s way. We also advanced our approach
to psychosocial risk management by deploying our psychosocial
incident investigation process. We delivered targeted awareness
programs on vicarious trauma and suicide prevention, and fatigue
risk roster modelling aligned with industry best practice.
At IOC, we focused significant effort on the mine’s vehicle fatality
elimination program through disciplined leadership and the
continued application of the Safety Maturity Model (SMM), which
advanced in maturity in 2025. SMM enables us to move beyond
compliance to proactive, high-performing safety behaviours,
embedding safety as a core consideration in every decision.
Our Courage to Care program reached its 6th year in 2025 and
continued to engage frontline employees by strengthening risk
awareness and fostering personal accountability. Together,
SMM and Courage to Care form the foundation of our safety
transformation, driven by the belief that every individual plays a vital
role in preventing harm and promoting wellbeing.
Market insights
In 2025, steel demand continued to be resilient in both China and
other markets. Global crude steel production grew by 1% year on
year in 2025, primarily reflecting China’s robust performance as
gains in infrastructure, machinery, and energy transition steel
demand offset the continuing but modest contraction in the property
sector’s consumption. China’s steel exports (including semis) rose
14% year on year to 134 million tonnes despite an environment of
higher trade barriers. Notably, domestic steel production in the major
importers of Chinese steel (eg ASEAN, the Middle East and India)
also expanded in 2025, demonstrating the resilience of ex-China
steel demand.
On the supply side, global seaborne iron ore shipments rose
by ~2% year on year to 1.6 billion tonnes, as the major producers’
combined exports were effectively unchanged year on year at
~1.25 billion tonnes. The ramp-ups of smaller-scale and typically
higher-cost projects lifted non-major producers’ aggregate volume
above 370 million tonnes for the first time in 2025. With around half
of this supply relatively high cost and price elastic, average annual
iron ore prices still exceeded $100/dmt CFR China for the 6th
consecutive year. Iron ore imports in China continued to be stable at
close to or above 1.3 billion tonnes, while shipments to other
markets continued to fluctuate around 400 million tonnes.
1.This represents the average number of employees for the year, including the
Group's share of non-managed operations and joint ventures, rounded to the
nearest thousand. Refer to page 268 for more information.
Annual Report on Form 20-F 2025 | 31 | riotinto.com |
Strategic report | Iron Ore
Iron Ore
Year ended 31 December | 2025 | 2024 | Change |
Pilbara production (million tonnes — 100%) | 327.3 | 328.0 | 0% |
Pilbara shipments (million tonnes — 100%) | 326.2 | 328.6 | (1)% |
Salt production (million tonnes — Rio Tinto share)¹ | 4.8 | 5.8 | (18)% |
IOC pellets and concentrates production (million tonnes — Rio Tinto share)² | 9.3 | 9.4 | (1)% |
Simandou production (million tonnes — Rio Tinto share) | 1.0 | NA | NA |
Segmental revenue (US$ millions) | 28,989 | 31,601 | (8)% |
Average Pilbara iron ore realised price (US$ per dry metric tonne, FOB basis) | 90.0 | 97.4 | (8)% |
IOC pellets realised price (US$ per wet metric tonne, FOB basis)2 | 125.7 | 144.0 | (13)% |
Underlying EBITDA (US$ millions) | 15,194 | 16,985 | (11)% |
Net cash generated from operating activities (US$ millions) | 10,605 | 12,132 | (13)% |
Capital expenditure (US$ millions)³ - excludes Simandou project | (4,422) | (3,303) | 34% |
Free cash flow (US$ millions) | 6,061 | 8,740 | (31)% |
Underlying return on capital employed⁴ | 39% | 48% |
Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result in the year-on-year change. Financial information has been recast in
accordance with the organisational restructure announced on 27 August 2025.
1.Dampier Salt is reported within Iron Ore, reflecting management responsibility. The Simandou iron ore project in Guinea reports to the Chief Safety & Technical Officer and financial
information is reported outside the Reportable segments.
2.Iron Ore Company of Canada (IOC) has been moved from the former Minerals product group to the Iron Ore product group.
3.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.
4.Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed.
Financial performance
•Pilbara product strategy: Following a review of our product strategy,
we made some changes to specifications of the Pilbara Blend. These
predominantly combined the previous Pilbara Blend and SP10 products
into a single blend with the average iron content moving to 60.8% Fe
(from 61.6%). Shipments of the new Pilbara Blend commenced in July
2025. As planned, SP10 levels have reduced by around half YoY,
accounting for 10% of Pilbara shipments in H2 2025 (100% basis), from
20% in H2 2024.
•Underlying EBITDA: 11% lower than 2024, primarily reflecting lower
realised prices across both Pilbara and IOC ($2.3 billion impact)
alongside inflation. These impacts were partly offset by a 1% increase
in Pilbara shipments (consolidated basis), despite disruption from the
cyclones in Q1, along with a lower proportion of SP10 volumes
following implementation of the Pilbara product strategy.
•Pilbara unit costs: Strong Pilbara shipment performance and mining
productivity in the second half drove a reduction in unit costs from $24.3
per tonne in H1 to $23.5 per tonne for the full year, which were $0.5 per
tonne higher than 2024. This was primarily driven by inflation, a higher
work index and $0.1 billion of recovery costs incurred following the
cyclones in Q1, which were partially offset by productivity improvements.
•Capital investment: 34% increase YoY reflecting the progress we have
made at our Pilbara projects. Four of the five major replacement mines
are currently ramping up or under construction. We opened Western
Range in June 2025 on time and on budget, and Brockman Syncline 1,
Hope Downs 2 and West Angelas have received all necessary approvals,
enabling commencement of main construction works, laying the
foundation to achieve our mid-term capacity of 345 to 360 Mtpa.
•Cash flow: Cash generated from operating activities was 13% lower
than 2024, driven by the same factors as underlying EBITDA and
representing an underlying EBITDA cash conversion comparable to
2024. Net of the increase in capital investment, Iron Ore delivered free
cash flow of $6.1 billion.
•Pilbara pricing:
% of total shipments | 2025 | 2024 |
Average index for the month | 75% | 78% |
Quarterly lag | 10% | 10% |
Quarterly average & others | 15% | 12% |
FOB pricing | 25% | 25% |
•Pilbara average prices:
Units | 2025 | 2024 | % change YoY | |
Platts 62% index | FOB, $/dmt | 92.5 | 98.4 | (6)% |
Pilbara iron ore | FOB, $/wmt | 82.8 | 89.6 | (8)% |
Pilbara iron ore | FOB, $/dmt | 90.0 | 97.4 | (8)% |
•Freight revenue: Segmental revenue for our Pilbara operations
included freight revenue of $2.1 billion (2024: $2.3 billion).
Review of operations
•Pilbara iron ore: Production was flat YoY (100% basis) following a
rebound from the cyclone impacts in Q1 and the achievement of record
mining rates since April. This performance was underpinned by continued
investment in mine health and productivity. While cyclone recovery
constrained the port operations for most of H1, surplus inventories
accumulated at the mines. Enhanced resilience across our rail and port
infrastructure subsequently enabled record shipments in H2.
•Iron Ore Company of Canada: 2025 production was 1% lower YoY,
due to pit health and mine equipment reliability challenges which
constrained ore availability and resulted in lower ore feed to the
concentrator. Annual rail haulage set a record at 37.8 Mt driven by
continued operational improvements to meet increasing third party
demand and IOC material.
•Simandou: First ore from the SimFer mine commenced train loading in
October, with first shipment from the WCS port in December, landing at the
port in China in January 2026. Stockpiles have continued to build at the
SimFer mine gate. In total, 2.3 Mt of crushed iron ore was produced in 2025
(100% SimFer). Tertiary crushing will be undertaken in China. There is a two
to three month lag between mine gate production and sales.
•Portside business: Total iron ore sales in China at our portside were
23.2 Mt (29.9 Mt in 2024), of which 95% were either screened or
blended in Chinese ports. The decrease in sales reflects lower
SP10 shipments.
•Inventory levels at portside: 6.4 Mt at year end (7.1 Mt at 31
December 2024), including 3.3 Mt of Pilbara product.
| For more information about our capital projects and future growth options, see pages 21-25. |
Case study |
Western Range: Strengthening the Pilbara’s future
Together with joint venture partner China Baowu Group, we officially opened Western Range – our newest and 18th iron ore mine in the Pilbara –
alongside Yinhawangka Traditional Owners. The $2 billion project ($1.3 billion Rio Tinto share) was delivered on time and on budget and could sustain
the existing Paraburdoo mining hub for up to 20 years, with a capacity of up to 25 million tonnes per year.
Western Range provides stability for more than 880 residential and fly-in, fly-out employees in Paraburdoo. It also strengthens the Western Australian
and national economies through royalties and taxes.
| For more information see riotinto.com/westernrange |
Annual Report on Form 20-F 2025 | 32 | riotinto.com |
Strategic report
Our approach to sustainability
As stewards of the lands where we operate,
we have a responsibility to access and develop
the world’s essential materials safely and sustainably,
and make a positive contribution to society.
This responsibility underpins everything we do, and drives our
commitment to embedding sustainability considerations into every
stage of the business, from exploration to closure.
Our sustainability priorities are informed by society’s evolving
expectations. Each year we complete a materiality assessment to
understand the sustainability topics that matter most to our
stakeholders and our business.
It’s essential we manage priority areas well as we build strong
sustainability performance and social licence. Insights gathered
through this process help us to strengthen our approach, and
contribute to the long-term sustainability and success of our
business for all stakeholders.
Sustainability framework
Our sustainability framework shows the areas where we can have
the greatest impact, by bringing together our existing targets,
standards and commitments. We embed sustainability into how we
plan, make decisions and measure progress across our business.
This isn’t always easy. At times, stakeholders have varying needs
and expectations of us, which we take care to understand and
balance. There are also other considerations – many of which reflect
a navigation between short-term gains and long-term resilience –
that form part of our decision making.
| Image: A turtle hatchling held by an Amrun Land and Sea Management Program Advisor and as part of the turtle survey program at Amrun Operations, Australia. |
In 2025, we refreshed our sustainability framework, to achieve better
alignment with our purpose, strategy and stakeholder expectations.
We developed the framework through engagement with a range of
external stakeholders and internal subject matter experts, to create
a framework that focuses our efforts on the most critical areas.
We’ve simplified the framework into 2 pillars: socially connected and
environmentally committed, underpinned by our 5 themes of
greatest impact. Under the social pillar, we focus on people and
communities. Under the environmental pillar, we focus on
decarbonisation and nature. Indigenous Peoples is positioned at the
intersection of social and environmental priorities, reflecting their
deep connection to the land and interdependencies between social,
cultural and environmental elements. At the centre of the framework
are 4 enablers – respecting rights, transparency, innovation and
partnership – which underpin how we deliver on our commitments
and embed strong governance into everything we do.
Environmentally
committed
Socially
connected
People Prioritising health, safety and wellbeing, and nurturing talent | Communities Building relationships and strengthening engagement to co-create positive outcomes | Indigenous Peoples Respecting and protecting culture and heritage, and increasing participation | Nature Protecting and restoring shared ecosystems, and contributing to a nature-positive future | Decarbonisation Reducing our own emissions and partnering across our value chain |
Annual Report on Form 20-F 2025 | 33 | riotinto.com |
Strategic report | Our approach to sustainability
The United Nations Sustainable Development
Goals
Our sustainability framework describes how we manage and report
externally on sustainability topics. We also consider how we can
contribute to the United Nations Sustainable Development Goals
(UN SDGs), which are recognised as the global blueprint for a
sustainable future.
The SDGs are a useful reference point, helping us to prioritise our
efforts to align with society’s expectations and deliver meaningful
impact. We focus on goals we feel are most relevant to operating
our business responsibly and where we can make the greatest
difference. Our 2 lead goals are SDG 12 (responsible consumption
and production) and SDG 8 (decent work and economic growth).
These goals guide our decarbonisation, resource stewardship
and creation of safe, inclusive workplaces. We set clear targets
for reducing emissions, advancing nature-positive outcomes,
and strengthening partnerships with Indigenous Peoples and
local communities.
Our operations also support and contribute to 8 supporting SDGs:
SDG 1 (no poverty), SDG 3 (good health and well-being), SDG 4
(quality education), SDG 5 (gender equality), SDG 9 (industry,
innovation and infrastructure), SDG 10 (reduced inequalities), SDG
13 (climate action) and SDG 15 (life on land). SDG 17 (partnerships
for the goals) reflects our approach to sustainability and is
fundamental to the way we run our business.
| For more information see riotinto.com/sustainabilityapproach |
How we report on sustainability
Social | Environment | Governance | ||||||||
 |  |  | ||||||||
People | Communities | Indigenous Peoples | Nature | Decarbonisation | Transparency, partnerships and ethical business | |||||
Respecting human rights | Community relations | Cultural heritage management | Water management | Climate change | Business integrity and governance | |||||
Safety, health and wellbeing | Impact of technology | Biodiversity and ecosystems | End-to-end materials management | Sustainability transparency and disclosure | ||||||
Respect and inclusion | Industrial environment impacts | Future-proof assets | Business performance | |||||||
Employment and talent retention | Tailings and mineral waste management | Risk management and cyber security | ||||||||
Pandemic response and public health | Closure, post-mining and land rehabilitation | Responsible tax and royalty payments | ||||||||
Each topic above appears under either the environment, or the social or governance theme to which it primarily relates. However, there is crossover among sustainability themes, meaning some topics can be relevant to 2 or even all 3 themes. Accordingly, we work with themes and topics holistically, not in silos. | Supply chain transparency | |||||||||
Key
Material Important
Reporting what matters
We complete a materiality assessment every year, so we can better
understand what matters the most to our stakeholders and our
business. We gather information on sustainability topics and their
impacts from internal and external stakeholders via interviews,
surveys, and reviews of publicly available information. We ask them
what is significant now, and what they think will be significant in
5 to 10 years. The insights we gather through this process also
guide our approach to how we report externally on sustainability.
What matters now
Our internal and external stakeholders are broadly aligned on
the 4 material sustainability topics. Climate change is a key material
topic and includes greenhouse gas emissions reduction, climate
resilience and adaptation, and just transition. Respecting human
rights, cultural heritage management, and health, safety and
wellbeing are the other 3 material topics. For our business,
the safety and wellbeing of our people remains our highest priority. In
addition, biodiversity and ecosystems, business integrity and
governance, ESG transparency and disclosure, respect and
inclusion; community relations, tailings and mineral waste
management, and water management are considered important
sustainability topics for our business, as we strive to find better ways
to produce the materials society needs and continue to
build a sustainable business.
What will matter in the future
Our internal and external stakeholders feel that climate change
will only continue to increase in importance over the next decade, as
will biodiversity and ecosystems, the impact of technology,
respecting human rights, business integrity and governance, supply
chain transparency, and end-to-end materials management. Water
management will continue to be an extremely important topic in the
future due to the reliance of local communities, the surrounding
environment and our mining operations on this increasingly scarce
resource. The preservation of nature will
also grow in importance over the next decade due to its circular
relationship (cause and effect) with climate change. Managing all
these sustainability topics well will be integral to building strong
social licence and the success of our business.
Annual Report on Form 20-F 2025 | 34 | riotinto.com |
Strategic report | Our approach to sustainability
Reporting our performance
Our materiality assessment records the threshold at which an issue
or topic becomes significant enough for us to report on externally.
The significance of a topic is based on the magnitude
of its impacts, threats and opportunities for stakeholders. Our
materiality assessment considers our impacts externally and,
conversely, the effect of external factors on our business.
As an ICMM member, we commit to reporting on our sustainability
performance against the Global Reporting Initiative (GRI) standards
and implementing the ICMM Performance Expectations (PEs). The
ICMM Mining Principles framework focuses on the implementation
of systems and practices related to a broad range of sustainability
areas.
Since 2022, we have been progressing the validations for the ICMM
Performance Expectations according to plan. In 2025, we completed
the remaining 3 validations, concluding the 3-year assurance cycle
for our 28 prioritised operating and refining assets for 2023-2026.
The validation reports demonstrate a high level of alignment
between the self-assessment and validation outcomes, with
identification of relevant areas for improvement. The validation
outcomes are detailed in the ICMM PE Summary tab in the 2025
Sustainability Fact Book. From 2024, we also introduced the TSM
Summary tab showing the Towards Sustainable Mining (TSM)
outcomes for 3 of our Canadian sites and all of our Pilbara iron ore
sites. This tab has been updated to reflect the 2025 TSM annual
self-assessment outcomes.
We have continued to improve our reporting to meet additional
disclosure requirements, including the ICMM Social and Economic
Reporting Framework (SERF). Since 2024, we have disclosed our
performance against the SERF indicators in the ICMM SERF tab.
The majority of our sustainability reporting is incorporated into this
Form 20-F, and supplemented by our 2025 Sustainability Fact Book,
which contains current and historical data on topics including health,
safety, environment, climate, communities, human rights, local
sourcing, ICMM PEs and transparency.
Governance and assurance
The Sustainability Committee oversees strategies to manage social
and environmental impacts, threats and opportunities, including
management processes and standards. The Committee reviews the
effectiveness of management policies and procedures relating to
safety, health, employment practices (apart from remuneration,
which is the responsibility of the People & Remuneration
Committee), relationships with neighbouring communities,
environment, tailings, security and human rights,
land access, political involvement and sustainable development.
Given its strategic significance, climate change is overseen directly
by the Board.
| For more information about our Sustainability Committee see pages 120-121. |
This year, the Group’s external assurance provider was engaged to
provide the Directors of Rio Tinto with assurance on selected
sustainability subject matters. The limited assurance statement
satisfies the requirements of subject matters 1 to 4 of the ICMM
assurance procedure.
Non-financial and sustainability
information statement
The sustainability section includes information required by regulation
and stakeholders in relation to:
•environmental and climate matters, including the Task Force
on Climate-Related Financial Disclosures (TCFD) and Australian
Sustainability Reporting Standards (ASRS) disclosures (pages
46-86)
•our employees (pages 36-40)
•social matters (pages 40-44)
•human rights (page 45)
•governance and transparency (pages 87-88)
Other related information can be found here:
•our business model (page 12)
•non-financial key performance indicators (pages 14 & 35)
•material risks and how they are managed (pages 91-99).
Notes on data
The data summarised in this sustainability section relates to
calendar years. Unless stated otherwise, parameters are reported
for all managed operations without adjustment for equity interests.
Where possible, we include data for operations acquired before
1 October of the reporting period. Divested operations are included
in data collection processes up until the transfer of management
control.
| For more information see our 2025 Sustainability Fact Book at riotinto.com/sustainabilityreporting |
Where we report
Annual Report | Tax reports1 | Human rights statements2 | Sustainability Fact Book | |
Linking sustainability to purpose and strategy | l | |||
Materiality and material topics | l | |||
Climate change3 | l | l | ||
Economic contribution | l | l | l | |
Human rights | l | l | l | |
Indigenous Peoples | l | l | ||
Memberships and certifications | l | |||
Sustainability data and trends | l |
1.Includes our Taxes and Royalties Paid Report and Country-by-Country Report.
2.Includes our Modern Slavery Statement and our Voluntary Principles on Security and Human Rights report.
3.Also refer to our Scope 1, 2 and 3 Emissions Calculation and Climate Methodology - 2025 Addendum.
Annual Report on Form 20-F 2025 | 35 | riotinto.com |
Strategic report | Our approach to sustainability
2025 performance against sustainability targets
Targets | 2025 performance | |
Reach zero fatalities and eliminate workplace injuries and catastrophic events. | 1 fatality at managed operations. (2024: 5 fatalities). •All-injury frequency rate (AIFR) at 0.37 (target: 0.38). (2024: 0.37). •2.1 million Critical Risk Management (CRM) verifications. (2024: 1.78 million). | |
Have all of our businesses identify at least one critical health hazard material to their business and demonstrate a year-on-year reduction of exposure to that hazard. | 14 of our assets across Rio Tinto achieved an exposure reduction to known health risks (airborne contaminants and noise). (2024: 6 assets). | |
Reduce the rate of new occupational illnesses each year. | 7.9% decrease in the rate of new occupational illnesses from 2024. (2024: 51.7% increase). | |
Reduce our absolute Scope 1 and 2 greenhouse gas emissions by 15% by 2025 and by 50% by 2030 (when compared to 2018 levels), and achieve net zero emissions from our operations by 2050.1 | The 2025 gross Scope 1 and 2 GHG emissions (adjusted equity basis) are 31.5 Mt CO2e2, a reduction of 5.2 Mt CO2e relative to our 2018 base year. As of 2025, our adjusted gross Scope 1 and 2 emissions are 14% below 2018 levels. After applying high-integrity offsets, our net adjusted Scope 1 and 2 emissions are 17% below our baseline. (2024: 14% gross, 17% net) | |
Achieve our global Communities and Social Performance (CSP) targets as follows: •Year-on-year increase in contestable spend sourced from suppliers local to our operations. •All sites to co-manage cultural heritage with communities and knowledge holders by 2027. •70% of total social investment to be made through strategic, outcomes-focused partnerships by 2027. •All employees to complete general human rights training by 2027. •100 Indigenous leaders in Australia (managers and above) by 2026. | •15.44% of contestable spend was sourced from suppliers local to our operations, an increase from 15.08%³ in 2024. Progress for each product group is included in the 2025 Sustainability Fact Book. •26 sites completed a Cultural Heritage Maturity Framework self-assessment, to identify existing gaps and establish actions to progress along the maturity continuum4. 12 assets matured in their performance in 2025 (others maintaining their performance from 2024) and all assets assessed themselves as Level 3 (Defined) or above. •Social investment initiatives that were identified as strategic partnerships increased to 51%⁵ when assessed against the Strategic Partnering Principles. •We continued to trial the incorporation of human rights content into Group mandatory Code of Conduct training. In 2025 the training was completed by more than 38,000 employees. •At the end of 2025, we had 54 Indigenous leaders in our business in Australia, down6 from 61 in 2024. | |
Improve diversity7 in our business by: •Increasing women in the business (including in senior leadership8) each year. •Aiming for 50% women in our graduate intake. •Aiming for 30% of our graduate intake to be from places where we are developing new businesses. | •26.2% of our workforce were women, up 1% from 2024. •33.3% of our executive leaders were women, no change from 2024. •32.5% of senior leadership were women, up 0.5% from 2024. •40% of Board roles were held by women, down 2.8% from 2024. •65% of our graduate intake were women, up 8.5% from 2024. •27% of our graduate intake were from places where we are developing new businesses, up 7% from 2024. | |
Improve our employee engagement and satisfaction. | No change to our employee satisfaction (eSAT9) score since 2024 (score remains 74). (2024: no change) |
Note: data related to the former Arcadium Lithium business is not included in our 2025 performance calculations, except where indicated in the footnotes below.
1.Refer to the Climate section in this report (pages 53-86) for details on how we are progressing towards our greenhouse gas emissions targets.
2.Data related to the former Arcadium Lithium business is included in our Scope 1 and 2 greenhouse gas emissions calculations.
3.2024 progress has been restated from those originally published to reflect adjustments post disclosure and/or ensure comparability over time.
4.The Cultural Heritage Co-management Maturity Framework sets out a maturity model consisting of 5 levels of maturity – from "learning the practice" to "leading practice". A rating of
Level 3 (Defined) reflects defined and functioning co-management as per our 2027 commitment.
5.A further 21% of initiatives are progressing into developing or emerging strategic partnerships, which will support achievement of the final target due in 2027.
6.The decrease was a result of natural attrition and organisational changes across the business. With the target due in 2026, achieving 100 Indigenous leaders will be challenging.
7.From 2021, the definition used to calculate diversity was changed to include people not available for work, and contractors (those engaged on temporary contracts to provide services
under the direction of Rio Tinto leaders), excluding project contractors. Data related to the former Arcadium Lithium business is included in our gender diversity performance calculations.
8.We define senior leadership as Managing Directors, General Managers, Group Advisers and Chief Advisers.
9.eSAT (Employee Satisfaction) is a measure of “how happy an employee is to work at Rio Tinto”. It is calculated by averaging the responses on a 1-7 scale and expressing this out of 100.
Annual Report on Form 20-F 2025 | 36 | riotinto.com |
Strategic report | Our approach to sustainability
Socially connected
Our values of care, courage and curiosity define who we are. They shape how we behave, how we
operate and how we solve problems. By putting these values into action, we will continue to build trust
with partners, from the inside out.
The safety, health and wellbeing of our employees, contractors and
communities is core to our values, and to what we stand for as a
company. Nothing matters more.
We are on a multi-year journey to build a values-driven culture
where everyone is accountable to deliver great outcomes with care,
courage and curiosity. Long-term, transformational cultural change
is a complex process, and the Everyday Respect Progress Review,
conducted in 2024, confirms that serious challenges remain and
must continue to be addressed. We are focused on continuing to
strengthen our work culture. Everyone deserves to feel physically
and psychologically safe at work, without exception.
We recognise that while the benefits of our business activities are
widespread, many of the adverse impacts are localised. Wherever
we operate, we work with host communities to understand and
mitigate any adverse social, cultural, environmental and human
rights impacts of our activities.
Our operations span the traditional lands and waters of more
than 50 Indigenous groups worldwide. We have a responsibility to
listen, to learn, and to work in genuine partnership with Indigenous
Peoples and communities.
We engage with communities and Indigenous Peoples regularly, in
good faith, and in ways that are transparent, inclusive and culturally
appropriate. Our engagement practices are designed to respect
human rights, hear diverse voices and provide a safe space for
vulnerable and at-risk groups to participate.
Our social investment approach is outcomes-focused to support
meaningful change and maximise the impact and value of our
contributions. By aligning our efforts with the needs and aspirations
of communities, we aim to help build strong, resilient communities
within thriving regional economies.
Living and working with care, courage and curiosity will help us
deliver the future we want for our people, and be the best partner we
can be.
Safety
Tragically, in August 2025, our colleague Mohamed Camara was fatally
injured while changing a heavy mobile equipment tyre at the SimFer
mine site in Guinea. A comprehensive investigation was completed and
several key actions are underway to strengthen fatality prevention
measures, including enhancements to our Critical Risk Management
framework. In addition, critical lessons have been shared with our
leaders globally to drive broader organisational learning. This was a
devastating loss, and we know we can never replace what has been
taken from Mohamed’s family, friends and colleagues.
We are also greatly saddened by the recent death of a colleague
following an incident at the SimFer mine site in February 2026. We
are determined to learn from these incidents, improve the
effectiveness of our controls, and to do everything we can to prevent
tragedies like this from happening.
We also share, with deep sadness, that we were informed by our
joint venture partners of 3 fatalities at our non-managed operations
and one fatality on one of the non-managed marine vessels. Every
person connected to our business deserves to return home safe and
healthy every day. These events have been shared across our
business to drive learning and action, and we continue to work
closely with people and partners across our diverse portfolio to
ensure the standards, safeguards, and resources needed to keep
everyone safe are firmly in place.
We care deeply about the safety, health and wellbeing of everyone
involved in our business, and these tragedies highlight the ongoing
need to prioritise these aspects every shift, every day.
We recorded 87 potential fatal incidents (PFIs) during the year. PFIs
provide critical insight into what was unknown about risks and their
control effectiveness, and we are intentional about learning from
them to prevent future harm.
Falling objects, fall from height, and vehicles and driving remain our
most prominent critical safety risks, representing almost 70% of our
PFI profile. Entanglement and crushing has also emerged over 2025
as a critical exposure, with one permanent damage injury (right
hand finger amputation) sustained at Rincon.
Targeted initiatives were implemented this year in response to these
trends, alongside an ongoing focus on building a resilient and agile
system to improve control performance.
Enhancing our control framework
We continue to enhance our safety control framework by defining
and embedding minimum performance requirements for our most
critical controls. These requirements will reduce variability, improve
reliability, and enable consistent execution. Developed through a
risk-based lens, they reflect lessons from significant incidents and
align with industry best practice.
Defining minimum performance requirements has also laid the
foundation for a more effective and meaningful assurance process.
By shifting focus from compliance to control performance, we can
better assess whether critical controls are not only present but
functioning as intended. Early feedback indicates these activities are
well received and driving actionable improvements.
Critical Risk Management (CRM) remains our primary tool for fatality
elimination and the key mechanism for translating performance
requirements to frontline teams. CRM ensures that critical controls
are not only identified but are actively verified to be in place and
effective where they matter most. We continue to evolve our CRM
approach to better reflect our fatal risk profile, deepen frontline
engagement, and strengthen leader ownership.
Safety Maturity Model
Now in its seventh year, the Safety Maturity Model (SMM) remains
our cornerstone framework for safety, and the primary lever for driving
cultural and system maturity across the group. In 2025, safety
maturity improved by over 5%, reaching our target score of 5.7. All 12
criteria recorded enhanced performance. SMM outcomes highlighted
the need to maintain focus on assessing control performance to
support decision-making and drive risk reduction.
While the score provides an overall view of performance, its true value
lies in the detailed, actionable feedback that assets receive and use to
guide safety improvements, along with the enhanced collaboration
across the group that the SMM assessment process fosters.
As safety maturity has continued to strengthen, we saw the need to
evolve our approach to continue driving continuous improvement.
This year, an Integrated Maturity Model was designed and piloted,
aimed at enhancing asset management and Safe Production
System (SPS) elements of SMM, and introducing Communities and
Social Performance (CSP). These improvements reinforce the
critical link between strong safety performance, well-maintained
assets, and operational excellence, bringing them together in one
unified approach, to support frontline leaders to focus on what
matters most.
Annual Report on Form 20-F 2025 | 37 | riotinto.com |
Strategic report | Our approach to sustainability | Socially connected
Operational learning
We remain committed to becoming a true learning organisation; one
that embraces failure as an opportunity and learns deliberately from
serious events, everyday work and emerging trends. This year we
advanced efforts to maximise the learning value of PFIs across the
business, through an enhanced definition and decision tree, a focus
on high-quality investigations, disciplined action implementation and
governance, and stronger feedback loop with our risk systems.
To strengthen how we learn from events, we introduced a Leading
Practice framework, supported by targeted capability uplift, including
training and live coaching. This approach helps leaders and
investigation teams approach events with openness and a learning
mindset, gain deeper insight into operational work, uncover systemic
factors contributing to events, and enable more informed actions
that sustainably reduce risk and strengthen our control framework.
Our all-injury frequency rate (AIFR) remained at 0.37 in 2025,
consistent with 2024. We continue to see a disparity in safety
performance for employees compared to contractors and remain
focused on supporting contractor safety by further integrating teams
into our safety culture and learning from them.
In 2025, we experienced 5 significant potential process safety
events: 2 at Yarwun in Australia, one at Vaudreuil in Canada, one in
Sorel-Tracy in Canada and one at Grande-Baie in Canada. This
year we have continued to mature our process safety management
system and culture through our process safety improvement plan.
Safety and health performance
2025 | 2024 | 2023 | 2022 | 2021 | |
Fatalities at managed operations | 1 | 5 | 0 | 0 | 0 |
All-injury frequency rate (per 200,000 hours worked) | 0.37 | 0.37 | 0.37 | 0.40 | 0.40 |
Number of lost-time injuries | 322 | 270 | 236 | 225 | 216 |
Lost-time injury frequency rate (per 200,000 hours worked) | 0.23 | 0.23 | 0.23 | 0.25 | 0.25 |
Safety Maturity Model score1 | 5.7 | 5.4 | 5.2 | 4.7 | 5.7 |
Rate of new cases of occupational illness (per 10,000 employees)2 | 28.1 | 30.5 | 20.1 | 17.6 | 15.4 |
Number of employees3 | 61,000 | 60,000 | 57,000 | 54,000 | 49,000 |
Noise-induced hearing loss4 | 77 | 82 | 45 | 37 | 20 |
Musculoskeletal disorders4 | 52 | 51 | 45 | 32 | 38 |
Mental stress4 | 9 | 8 | 7 | 6 | 5 |
Others4 | 8 | 13 | 6 | 7 | 2 |
Fines and prosecutions – safety ($’000)5 | 1,469.4 | 873.0 | 363.8 | 339.0 | 706.3 |
Fines and prosecutions – health ($’000) | 0.0 | 0.0 | 0.9 | 0.0 | 5.0 |
1.Figures in the table represent the Rio Tinto Group average SMM score at the end of each year. Each year, assets are added or removed from the SMM program based on project and
closure cycles. New assets to the program are baselined in the first quarter of each year and added to the Group average at the end of the year.
2.Rate of new cases of occupational illness = number of all new cases of occupational illnesses x 10,000/number of employees (based on average monthly statistics).
3.This is the average number of employees for the year and includes the Group's share of joint ventures and associates (rounded).
4.There can be one or more illness reported for each employee/contractor. Illness sub-categories have been restated across all the years following a review of the data collection process.
5.In 2025, we incurred the listed safety related fines and penalties resulting from regulatory actions across our operations. WorkSafeBC issued two penalties to our Kitimat operations
relating to historical contractor safety incidents and a past combustible dust explosion event. In Australia, Boyne Smelters received an infringement notice for an electrical safety non
compliance. In the United States, our Boron Operations received multiple citations from the Mine Safety and Health Administration (MSHA), and Kennecott Utah Copper received MSHA
fines across its Mine, Concentrator & Tailings, and Underground operations.
Health and wellbeing
Occupational health
We aim to ensure everyone goes home safe and healthy every
day. In 2025, we recorded 196 new occupational health illnesses
(2024: 225). Many occupational illnesses develop over a long and
continuous period, requiring sustained efforts to reduce exposure
over time.
In 2025:
•We focused on strengthening the accuracy and clarity of health
risk profiles across the business. This is underpinned by the
implementation of Group health bowties, which provide a
structured approach to identifying hazards, controls, and
escalation pathways. Complementing this, control verification
guidance helps to review the effectiveness of critical controls and
supports informed decision-making and proactive risk
management.
•We continued to standardise how occupational health and
hygiene data is digitally collected and accessed, transitioning from
manual to more secure and streamlined digital collection
processes that deliver improved risk and trends insights to
support our health management initiatives. Furthermore, we
expanded health and hygiene reporting availability to provide real
time insights and enable targeted risk-reduction focus. We
implemented 22 targeted projects across 14 assets to
successfully reduce exposures to known health risks for our
employees and contractors.
| For more information see riotinto.com/health |
Mental health and wellbeing
Psychological health is a core part of our safety and health culture,
with particular attention on creating a psychologically
safe and healthy workplace.
In 2025:
•We enhanced psychosocial risk management through the
introduction of a Group Psychological Harm Bowtie, supporting
effective control of identified risks. This was reinforced by mental
health and wellbeing training completed by 3,948 leaders (61%).
•We embedded principles of good work through people experience
programs that promoted respect and inclusion, fair pay and flexible
work, effective consultation and communication, and career
development and progression opportunities. This included
improvements to talent identification processes and the
implementation of job adjustments across the employee lifecycle.
•We continued to shape the approach to psychological health with
data-driven insights, including results from the twice-yearly
People Survey informing targeted interventions and areas for
improvement.
•We advanced workplace and role design initiatives to enable
psychologically safe and healthy working environments. These
efforts included facility upgrades and actions to strengthen team
and organisational culture, all aimed at reducing or eliminating
psychosocial risks.
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•We provided employees with tools and skills to support their
psychological health, such as our global Employee Assistance
Program (EAP) and our global Peer Support Program, where
all of our 2129 peer supporters are trained in mental health
support. We also continued to offer domestic violence support
programs to all Rio Tinto employees.
•We delivered awareness initiatives through global campaigns
such as World Mental Health Day and our company-wide Mental
Health month, “Wellness Matters”, which featured activities,
wellbeing resources and an external video series.
•We maintained meaningful partnerships with mental health
organisations, including Lifeline Australia, a new 5-year
partnership with Western Australia-based Telethon, and our
continuing support for the Fondation Jeunes en Tête in Quebec
over the last 30 years.
•We made contributions to industry-wide improvements of
psychosocial risk management as an active member of the
Minerals Council of Australia Psychosocial Risk Management
Working Group, and through our active participation in the ICMM
Psychosocial Risk and Worker Wellbeing Management Working
Group, including a significant contribution to the newly released
tools for psychological safety and health.
•We improved our standing in the CCLA Corporate Mental Health
Benchmark Global 100+ ranking to the Top Tier, for the first time
since the benchmark’s inception.
| For more information on how we’re creating an environment where everyone feels safe, respected and empowered, see pages 38-39 and 87-88. |
Rio Tinto is required to disclose mine safety violations or other
regulatory matters in accordance with Sections 1503(a) of the Dodd-
Frank Wall Street Reform and Consumer Protections Act, which are
included in Exhibit 16.1 to this filing.
Talent, respect and inclusion
We’re building a values-driven performance culture, where everyone
feels accountable to deliver great outcomes with care, courage and
curiosity.
Listening to our people
In 2025, we ran 2 People Surveys to hear directly from employees
and identify how we can make improvements across the business.
Almost 40,000 employees participated in the Q4 survey, contributing
over 140,000 comments – a 40% increase from Q4 2024 – showing
a strong willingness to share honest feedback. Our employee
satisfaction score (eSAT) was 74 and our Recommend Rio score
was 72, both consistent with prior years. “I feel safe at work”
remained the highest-scoring statement (79, up from 78 in Q4
2024), followed by “I am treated with respect at work” (78 up from 77
in Q4 2024) and “The work we do here is meaningful” (77 up from
76 in Q4 2024). Scores for taking meaningful action (60 up from 58
in Q4 2024) and confidence in Rio Tinto’s Executive Committee (62)
were in line with 2024, indicating stability but reinforcing the need for
continued focus.
We empower leaders to turn survey insights into meaningful
conversations that drive progress. With advanced AI sentiment
analysis, leaders gain a clearer view of employee feedback, uncover
deeper insights and better understand what results mean for their
teams.
Building respect
Our updated mandatory Code of Conduct training was completed by
21,693 digitally connected employees and in-person by 17,182
digitally disconnected employees. The Respect and Inclusion
module reinforces Rio Tinto’s behavioural expectations and our
shared responsibility to act as upstanders. It offers practical
guidance and real examples on safely addressing disrespectful or
harmful behaviour, along with scenarios to help employees apply
these principles in real situations.
This year, we published 19 Purple Banners across the business,
including 2 global banners supporting our commitment to
strengthening respectful transparency, as recommended in the
Everyday Respect Progress Review (2024).
First introduced by our Iron Ore business in 2022 through the
Everyday Respect Review, Purple Banners share real examples of
disrespectful or harmful behaviour to promote open discussion,
learning and prevention. They build shared understanding of
acceptable conduct, support those affected and reinforce that
inclusion and respect are essential to our culture.
Creating an inclusive workplace
We aim to reflect the diversity of our communities and create
a workplace where everyone feels included, respected and able
to thrive.
In 2025, we continued focusing on increasing women’s
representation through a Group scorecard target. While we did not
meet our 26.7% goal, we made progress, reaching 26.3%1, and
remain committed to a more gender-balanced workforce.
Targeted, business-led actions are strengthening attraction,
retention and inclusion. Accountability is supported through site-level
targets, dashboards and quarterly reviews, and inclusive recruitment
practices are becoming standard. Businesses are expanding entry
pathways through apprenticeships, traineeships and new-to-mining
programs, and improving retention through more welcoming
workplaces and development. Feedback from stay and exit
interviews, listening sessions and People Surveys continues to
guide improvements.
We are making progress in increasing the representation of ethnic
minorities in our Senior Management population (Executive
Committee and their direct reports). In December 2023, and as part
of the Parker Review,2 we set a target of 18% ethnic minority
representation globally by the end of 2027. In 2024, the Parker
Review refined its scope to focus on Senior Management roles in
the UK. In response, we set a UK-specific target of 17% by
31 December 2027.
As of 31 December 2025, our global representation stands at 16%
and UK representation at 15%, reflecting steady progress towards
these goals.
Inclusive Voices, our global network of Employee Resource Groups
(ERGs), continues to grow as we strengthen inclusion and
representation. In 2025, we introduced 4 new ERGs – DisAbility
Voices, Asian Voices, Latinos’ Voices and Afrocentric Voices – each
focused on amplifying diverse perspectives, fostering allyship and
building a stronger sense of belonging worldwide. Our ERGs
continue to drive meaningful change, turning ideas into actions that
advance inclusion.
1.Includes our total workforce based on managed operations (excludes the Group’s share of
non-managed operations and joint ventures, and legacy Arcadium Lithium employees). The
percentage of women in our workforce, including legacy Arcadium Lithium employees (and
excluding the Group’s share of non-managed operations and joint ventures) was 26.2%, as
of 31 December 2025.
2.A UK business-led and Government-backed review that has established targets relating to
the number of directors, and requires companies to set a target relating to the number of
senior management, who identify as minority ethnic in UK-listed companies.
Annual Report on Form 20-F 2025 | 39 | riotinto.com |
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Developing our talent
We strengthened our Talent Management by introducing a refreshed
talent evaluation approach, including a new potential model to
assess employees’ readiness for more complex or senior roles.
Talent evaluations were completed for the majority of people in
leadership or professional roles. In 2026, we will expand evaluations
further across the business and enhance how we develop all
employees, including accelerated development for those showing
potential for more complex and challenging roles.
Career conversations continued to be embraced, and to simplify our
People Practices, we integrated these into the Performance 6
framework for 2026.
Our Graduate and Intern Programs remain key talent pipelines. In
2025, we welcomed 140 graduates from 8 countries, of whom 65%
were women, and 270 interns across 12 countries, of whom 57%
were women. Our graduate program ranked #1 in the Mining,
Oil and Gas sector on Prosple Australia’s Top 100 Graduate
Employers list for 2025, and we were recognised as one of
Canada’s Top Employers for Young People. We also simplified
processes and communications to improve the experience for
graduates and interns globally.
In 2025, 6,606 new hires joined the business, of whom 1,843 were
contractors becoming permanent employees (2024: 6,084 new hires
of whom 1,821 were contractors).
Investing in leadership development
In 2025, 124 of our most senior leaders completed the Voyager
program, bringing overall participation to 91%. The program
strengthens leaders’ ability to model psychological safety,
demonstrate empathy and build genuine connection, helping them
lead with confidence in an increasingly complex environment.
We maintained a strong focus on coaching, with 461 leaders
completing the Leader as Coach program – a key enabler of our
Safe Production System rollout.
Leadership Fundamentals, launched last year, continued to grow in
2025. The program builds core leadership skills through modules on
team development and creating safe, inclusive environments. To
date, 351 frontline leaders have participated, supporting consistent
leadership capability across our operations. This year, we also
developed new supervisor and superintendent programs to reinforce
leadership expectations and skills. Piloted in Brisbane, Oyu Tolgoi
and Saguenay with positive feedback, these programs will roll out
globally from 2026.
Equality through pay equity
Pay equity remains a core pillar of our values and business strategy,
underpinning our commitment to inclusion and diversity. We
continue to ensure that employees with comparable skills,
knowledge, experience and performance receive equal pay for
equal work. Our approach is guided by 2 key measures that monitor
pay equity across the organisation.
In 2025, our equal pay gap – which measures the extent to which
women and men employed by our company in the same location
and performing work of equal value receive the same pay - was less
than 1.5% in favour of men. Our gender pay gap - which reflects the
difference between the average earnings of women and men across
the Group – was less than 1% in favour of women. Together, these
outcomes reinforce our ongoing commitment to ensuring fair,
equitable pay across our global workforce.
| For more information about our commitment to pay equity see riotinto.com/payequity |
Workforce data by region(1)(2)(7)
Region | Average employee headcount(3) | Headcount distribution % | Absenteeism(4) | Average contractor headcount(5) | Headcount distribution % |
Africa | 3,469 | 6.2% | 2.6% | 167 | 4.1% |
Americas | 18,333 | 33.0% | 0.7% | 743 | 18.2% |
Asia | 6,953 | 12.5% | 1.8% | 248 | 6.1% |
Australia/New Zealand | 25,541 | 46.0% | 4.6% | 2,871 | 70.2% |
Europe | 1,276 | 2.3% | 0.4% | 63 | 1.5% |
Total⁶ | 55,572 | 100.0% | 2.8% | 4,092 | 100.0% |
1.Includes our workforce based on managed operations (excludes the Group's share of non-managed operations and joint ventures) as of 31 December 2025.
2.Rates have been calculated based on average monthly headcount in the year.
3.Employee headcount excludes Non-Executive Directors and contractors.
4.Absenteeism includes unplanned leave (sick leave, disability, parental and other unpaid leave) for populations on global, centralised HR systems. Excludes Non-Executive Directors and contractors.
5.Contractors include those engaged on temporary contracts to provide services under the direction of Rio Tinto leaders.
6.The sum of the categories may be slightly different to the Rio Tinto total shown due to rounding.
7.Rio Tinto acquired Arcadium Lithium during 2025 and they are included in the above calculations.
Annual Report on Form 20-F 2025 | 40 | riotinto.com |
Strategic report | Our approach to sustainability | Socially connected
Workforce data by category and diversity(1)(2)(5)
Gender(3) | Age Group(4) | Region(4) | |||||||||||||||
Category | Headcount distribution % | Women (count) | Men (count) | Undeclared (count) | Women % | Men % | Under 30 | 30-39 | 40-49 | Over 50 | Africa | Americas | Asia | Australia /NZ | Europe | ||
Senior leaders | 1.1% | 205 | 424 | 2 | 32.5% | 67.2% | —% | 5.5% | 41.2% | 52.8% | 5.1% | 34.7% | 10.3% | 36.3% | 13.2% | ||
Managers | 9.2% | 1,908 | 3,327 | 16 | 36.3% | 63.4% | 0.8% | 24.8% | 45.3% | 28.1% | 5.1% | 35.0% | 11.8% | 41.5% | 5.6% | ||
Supervisory and professional | 37.6% | 6,691 | 14,661 | 41 | 31.3% | 68.5% | 9.9% | 37.0% | 30.7% | 20.7% | 7.1% | 25.0% | 17.9% | 46.5% | 1.9% | ||
Operations and general support | 51.5% | 5,908 | 23,346 | 36 | 20.2% | 79.7% | 18.2% | 28.4% | 25.8% | 25.7% | 5.5% | 36.7% | 8.5% | 45.9% | 1.4% | ||
Graduates | 0.6% | 196 | 128 | 1 | 60.3% | 39.4% | 85.5% | 13.5% | 0.9% | –% | 7.1% | 20.9% | 19.1% | 52.9% | —% | ||
Total | 100.0% | 14,908 | 41,886 | 96 | 26.2% | 73.6% | 13.6% | 31.0% | 29.5% | 24.2% | 6.1% | 32.0% | 12.4% | 45.7% | 2.1% | ||
1.Includes our total workforce based on managed operations (excludes the Group's share of non-managed operations and joint ventures) as of 31 December 2025.
2.Excludes Non-Executive Directors, Executive Committee, contractors and people not available for work 2017-2020. From 2021, the definition used to calculate diversity was changed to include
people not available for work and contractors (those engaged on temporary contracts to provide services under the direction of Rio Tinto leaders) excluding project contractors.
3.In 2025, 96 individuals' gender was undeclared.
4.Representation by Age and Region includes employees only, excludes contractors.
5.Rio Tinto acquired Arcadium Lithium during 2025 and they are included in the above calculations.
Employee hiring and turnover rates(1)(2)(3)(8)
Gender(4) | Age group | Region | |||||||||||
Total | Women | Men | Undeclared | Under 30 | 30-39 | 40-49 | Over 50 | Africa | Americas | Asia | Australia/NZ | Europe | |
Employee hiring rate(5)(6) | 11.1% | 41.1% | 58.6% | 0.3% | 45.1% | 28.9% | 17.3% | 8.7% | 4.5% | 27.6% | 10.1% | 53.7% | 4.2% |
Employee turnover rate(7) | 9.5% | 10.3% | 9.2% | 12.7% | 9.3% | 7.8% | 7.6% | 13.9% | 5.8% | 10.6% | 5.0% | 10.2% | 14.5% |
1.Includes our total workforce based on managed operations (excludes the Group's share of non-managed operations and joint ventures) as of 31 December 2025.
2.Excludes Non-Executive Directors and contractors.
3.Rates have been calculated based on average monthly headcount in the year per category.
4.In 2025, 96 individuals' gender was undeclared.
5.Total hiring rate is calculated as total employee hires over average employee headcount for the year.
6.Hiring rate includes total employee hires per category over total hires for the year.
7.Turnover rate excludes temporary workers and the reduction of employees due to business divestment. Turnover rate includes total terminations per category over average monthly
headcount in the year per category.
8.Rio Tinto acquired Arcadium Lithium during 2025 and they are included in the above calculations from March 2025.
Community engagement and social investment
Strong relationships with Indigenous Peoples, communities who
host us, and broader society are essential to our success. Without
their support, we cannot operate effectively or sustainably.
We recognise that mining and processing can disturb the
environment and impact surrounding communities. At the same
time, our operations can bring significant benefits: the production of
essential materials, job creation, small business growth, tax and
royalty contributions, skills development, and targeted
socioeconomic programs.
Our work can have lasting positive impacts, and our aim
is to make a meaningful contribution wherever we operate.
That means helping build strong, thriving communities through
responsible management of our adverse impacts, respectful and
responsive engagement, thoughtful investment, and enduring
partnerships. Delivering meaningful outcomes is a whole-of-
business accountability, requiring collective ownership across our
operational teams and functions, supported by the specialist
guidance of our Communities and Social Performance (CSP) teams.
Through deep listening, meaningful engagement, and values-led
action, these teams help the business foster trusted relationships
and guide the delivery of outcomes that reflect community priorities.
They include archaeologists, anthropologists, social scientists,
economic development experts, human rights specialists and
operational leaders.
The CSP Standard, revised and strengthened in 2022, sets clear
expectations for how our assets manage social risks and impacts. It
provides a consistent framework that supports the delivery of better
social outcomes across our operations.
We aim to build enduring relationships with Indigenous and land-
connected Peoples, respecting their deep cultural connection to
land, waterways and nature, and partnering to unlock opportunities
through our operations and decarbonisation strategy.
2025 progress
In 2025, we strengthened social performance capability across the
business. Our CSP practitioners deepened their technical
knowledge through online and face-to-face learning, peer
exchanges, and targeted development programs.
We continued to embed our global community perception monitoring
program, Local Voices, in partnership with Voconiq, a company that
specialises in data-driven community engagement. Listening to, and
acting on, the views of communities who host our operations is
essential. Local Voices helps us better understand community
perceptions, engage more effectively and make informed decisions.
Since its launch in 2023, the program has completed more than
14,000 surveys, providing valuable insights into how communities
experience and perceive our operations. In 2025, Local Voices
expanded its reach with 3 new assets joining for the first time. Many
of our assets have now completed 2 Local Voices surveys, enabling
longitudinal analysis and deeper insight into trust and acceptance
trends across our operations.
CSP targets
In 2025, we progressed initiatives towards our CSP targets.
This year, we updated our Human Rights in Action learning program,
which is mandatory for employees in higher-risk human rights roles.
We continued to implement maturity frameworks for cultural heritage
management and strategic social investment partnerships to enable
assets to track progress.
| For more information about our CSP targets see page 35 or visit riotinto.com/communities |
Annual Report on Form 20-F 2025 | 41 | riotinto.com |
Strategic report | Our approach to sustainability | Socially connected
Social contribution
We work in partnership with host communities to help deliver
outcomes that are positive and lasting. By engaging local services,
employing local people, sourcing local products and supporting
diverse regional economies, we create shared value for communities
and for our business. Our goal for social investment is to contribute to
strong and resilient communities in thriving regional economies. In
2025, our total voluntary global social investment was $114.3 million,
addressing critical community issues across 4 impact themes: human
rights; culture, heritage and place; community capacity and
connections; and economic opportunity and just transition.
By taking a more strategic approach to partnering, we invest in
programs that reflect community needs, priorities and aspirations;
are designed with and for communities; deliver tangible and
measurable outcomes; and build the capacity and capability needed
for lasting impact.
| For more information about our social investment, see riotinto.com/ socialperformance and the 2025 Sustainability Fact Book. |
Country updates
QIT Madagascar Minerals (QMM), Madagascar
In Madagascar’s Anôsy region, QIT Madagascar Minerals (QMM) is
committed to responsible mining practices by building strong
partnerships with communities and government, and by fostering
transparency in water management and performance.
Under a 25-year agreement with the Government of Madagascar, QMM
has committed $4 million annually in community development initiatives
designed in consultation with local stakeholders and aligned with
national and regional priorities. Highlights from 2025 include:
•Education: Over 30,000 children received school supplies across 83
primary schools at the start of the school year, while 5,000 students
planted 170,000 trees, combining environmental restoration with
hands-on learning and fostering a culture of sustainability.
•Healthcare: In partnership with the Regional Public Health
Directorate, free mobile clinics delivered medical care to 23,000
people, while the rebuilt Mandromondromotra medical centre
strengthened healthcare infrastructure for 4,600 residents,
expanding access to essential services.
•Livelihoods and clean energy: Income-generating activities
supported thousands of farmers and fisherfolk through training
and equipment. Meanwhile 20,000 solar kits were distributed to
households across 8 communes, improving living standards and
reducing energy poverty.
QMM continues to prioritise direct community engagement. In the past
year, QMM hosted over 500 visitors at its site and met with more than
3,500 community members through its mobile “community kiosks”, to
engage, listen and respond to local concerns.
QMM also publishes an annual Water Report, confirming that water
quality monitoring upstream and downstream of its release point
remains comparable.
| For more information on QMM’s water management, visit riotinto.com/qmmwater |
Resolution Copper project, Arizona, US
In 2025, we strengthened our partnerships with Native American
Tribes and local communities through expanded engagement, multi-
Tribe meetings, and the inaugural All-Tribes Conference, which
united 9 Tribal Nations in support of cultural stewardship and
collaborative planning. The U.S. Forest Service’s republication of the
Final Environmental Impact Statement (FEIS) marked an important
milestone in the federal permitting process, reflecting years of
extensive environmental and social review. We reinforced regional
support by contributing $1 million from the Rio Tinto disaster relief
fund to assist Globe-Miami communities recovering from severe
flood damage, complemented by the volunteer efforts of our
employees. Operationally, we achieved a major milestone with the
safe completion of the No. 9 Shaft, delivered in partnership with
contractors and skilled workers from surrounding communities
including Superior, Miami, Globe, the San Carlos Apache Tribe,
Hayden, Kearny and Winkleman.
While legal hurdles exist before the land exchange can be finalised,
we remain committed to progressing the project responsibly,
delivering long-term economic and community benefits for rural
Arizona and the Tribes, while honouring the cultural and
environmental integrity of the region.
| For more information visit riotinto.com/resolution |
Simandou project, Guinea
We are working together with local community representatives
to build trust-based, enduring relationships that are essential
for sustaining a positive social environment, advancing project
development, and enabling transformative opportunities for all
stakeholders. We continue to strengthen our focus on managing
potential health and safety impacts on communities.
The latest Local Voices survey reaffirms strong community support,
with trust and acceptance scores continuing to improve and tracking
above mining sector benchmarks.
In May 2025, we launched a $14 million Livelihood Restoration Plan
in partnership with Winning Consortium Simandou. This program is
specifically designed to mitigate the impacts of the Morebaya port
project on local fishing communities, while creating sustainable long-
term economic opportunities.
Our commitment to community development is further demonstrated
through the delivery of essential infrastructure, including the
construction of 10 schools, which has enabled more than 2,500
children in the mining area to access education.
All initiatives are developed through consultation and collaboration
with government and other stakeholders, ensuring alignment with
the needs and priorities of beneficiary communities.
| For more information visit riotinto.com/simandou |
Panguna mine, Bougainville, Papua New Guinea
The Panguna Mine Legacy Impact Assessment (PMLIA) was
published in December 2024 and is a critical step forward in building
understanding of the long-term legacy impacts of the former mine in
Bougainville.
Throughout 2025, we continued to engage with the PMLIA Oversight
Committee and the Autonomous Bougainville Government (ABG) and
Bougainville Copper Limited (BCL) through a Roundtable, to identify
ways forward and key priority actions.
Ongoing efforts by the Roundtable parties to address high and very
high saliency impacts and imminent risks include:
•Works on 4 structural sites that pose severe and imminent risks to
nearby communities.
•Removal of hazardous materials associated with a risk to life from
Loloho Port.
•Works to address the impact of flooding for Kuneka Creek
communities.
•Geotechnical monitoring and hazard awareness campaigns to
ensure local communities and small-scale miners are made
aware of potential risks; and
•Additional investigations to address the most critical impacts
identified in the PMLIA.
We continue to support a water and sanitation project in Central
Bougainville, in cooperation with the ABG, providing drinking water
facilities and youth training to communities.
Rio Tinto previously acknowledged a class action claim filed in Papua
New Guinea's National Court of Justice in 2024, against Rio Tinto and
BCL. In September 2025, the National Court dismissed the case
entirely and an appeal of this decision has been filed in the Supreme
Court of Papua New Guinea. The company will continue to strongly
defend its position in the proceeding.
| For more information on our ongoing commitments, see riotinto.com/ panguna |
Annual Report on Form 20-F 2025 | 42 | riotinto.com |
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Lithium operations and projects, Argentina
Through our operations and growth projects in Argentina, we are
partnering with communities to create lasting benefits.
•Province of Jujuy – Olaroz operation: The Unidades de Producción
de Alimentos Familiares (Family Food Production Units) Greenhouse
Program, implemented in 8 communities, supports 68 families and 6
schools with greenhouse construction and training. It strengthens
food security and self-sufficiency while building skills and delivering
intergenerational benefits. The Sustainable Vicuña Management
Program, implemented in 2 Indigenous communities, benefits 49
families by providing technical assistance, equipment and
materials.
•Province of Salta – Rincon project: Education programs
implemented in 3 communities support 41 families with young
children, 61 primary school students and 6 teachers. The initiative
also helps 9 students and adults complete secondary education
and provides 16 university scholarships through the Catholic
University of Salta (UCASAL) and Fundación Anpuy, expanding
access to higher education and creating pathways to employment
and socioeconomic development.
•Province of Catamarca – Fénix operation and Sal de Vida project:
The Local Suppliers Program boosts business capability and
competitiveness, with over 50 suppliers trained and supported
through 800 hours of assistance and 290 improvement actions,
resulting in a 60% increase in requests for quotations and a 90%
acceptance rate.
Together, these initiatives reflect our commitment to education,
economic opportunity, and community resilience – creating shared
value that lasts well beyond our operations.
Update on our CSP commitments
In this section, we provide an update on our progress on the
commitments we made as part of the Rio Tinto Board Review in
2020 on cultural heritage management. This progress is
summarised under 3 areas: relationships, governance and process,
and leadership and inclusion.
Relationships
Over the past 5 years, we’ve taken meaningful steps to strengthen
our relationships with Indigenous Peoples. This journey has been
grounded in listening, learning and building trust. One of the most
significant shifts has been our move towards co-management of
cultural heritage – sharing information early, engaging deeply, and
making decisions collaboratively. This approach is helping to build
greater confidence among Indigenous Peoples that their cultural
heritage will be respected and protected. These efforts reflect our
broader commitment: to build respectful, enduring partnerships and
to support positive, long-term outcomes for the Indigenous
communities where we operate.
Strengthening agreements with Pilbara Traditional
Owners in Australia
In 2025, we strengthened our commitment to respectful partnerships
by updating agreements with several Traditional Owner groups in
the Pilbara, and working with others to establish and update
agreements that embed shared decision-making and cultural
heritage protections.
Landmark Co-Management Agreement with the PKKP People
In May, we reached a landmark Co-Management Agreement with
the Puutu Kunti Kurrama and Pinikura (PKKP) People. This
agreement provides certainty that significant places on PKKP
Country will be protected from mining, while giving us clarity earlier
in the mine life cycle about where development can occur. It reflects
four years of listening, learning and working together — placing
knowledge-sharing and joint design at the centre of our operations
so that cultural heritage is preserved and co-managed.
Updated agreement with the Nyiyaparli People
In November, we signed an updated agreement with Karlka
Nyiyaparli Aboriginal Corporation (KNAC) to strengthen our
partnership and deliver long-term benefits for the Nyiyaparli People.
The agreement includes enhanced cultural heritage and
environmental protections, supports earlier and ongoing
consultation, and promotes greater transparency in decision-making
for mining activities.
Strengthening our partnership with the
Yinhawangka People
In December, we signed an Interim Modernised Agreement with
Yinhawangka Aboriginal Corporation, building on our 2013
Participation Agreement with the Yinhawangka People. The
agreement introduces a co-management approach that reflects
modern expectations for partnership. It ensures Yinhawangka are
involved earlier and more meaningfully in mine planning, with both
parties collaborating on key decisions, including cultural heritage
and environmental protection. This interim agreement lays the
foundation for a full modernised agreement, which we aim to finalise
with Yinhawangka Aboriginal Corporation in 2026.
We also announced a long-term partnership with Yinhawangka
Aboriginal Corporation to deliver meaningful social outcomes for the
Yinhawangka People. Through the Yinhawangka Social Outcomes
Partnering Agreement, we will support programs and initiatives led by
the Yinhawangka Foundation – a community-led organisation created
to strengthen self-determination, elevate cultural authority, and drive
long-term, community-driven outcomes.
Partnering with purpose in Salta Province
At the Rincon lithium project in Argentina’s Salta Province, we’ve
continued to build respectful relationships with local Indigenous
communities. In 2025, this commitment led to the signing of
framework agreements with the Kolla Indigenous Community of
Salar de Pocitos and the Atacama Indigenous Community of Catua.
These agreements mark a shared step forward, shaped by dialogue,
trust and mutual respect.
Managing closure in Canada’s Northwest
At the Diavik Diamond Mine, we are working in partnership with
Indigenous Governments and Organisations to co-develop a
Traditional Knowledge Monitoring Program (TKMP) – a collaborative
approach to closure shaped by Indigenous perspectives. Building on
more than a decade of Traditional Knowledge work, the TKMP focuses
on monitoring caribou, water, fish, vegetation and wildlife, and reflects
community priorities for closure. These include safe land and water,
support for traditional use, and protection of culturally significant
landscapes. By placing Indigenous knowledge at the centre, we are
helping ensure that closure planning is inclusive, respectful and
aligned with long-term community aspirations.
Strengthening relationships in Canada
In British Columbia, we signed a Memorandum of Understanding
with the Nadleh Whut’en, Saik’uz, Stellat’en and Cheslatta Carrier
Nations, reinforcing our commitment to transparent dialogue and
collective action. This MoU covers the pre-feasibility study aiming to
improve the livelihood of communities and the environment, and to
increase operational flexibility to mitigate climate impacts.
A resilient water supply for the Pilbara,
Western Australia
Water is a very precious resource, both environmentally and culturally,
for the people who call the Pilbara home. We are committed to
ensuring a secure water supply for all users in the region. To reduce
reliance on climate-dependent water sources, we are building the
Dampier Seawater Desalination Plant, with Stage 1 (4 GL) due to be
operational in 2026 (for more information, see page 68). We have also
reduced our draw on the Bungaroo Coastal Water Supply borefield,
with further reductions expected as the desalination plant ramps up its
capacity. We continue to monitor all water sources under our
environmental approvals and work closely with stakeholders to
manage water responsibly. Our goal is a resilient water system that
supports communities, culture and industry.
Annual Report on Form 20-F 2025 | 43 | riotinto.com |
Strategic report | Our approach to sustainability | Socially connected
Governance and process
We continue to implement our Communities and Social
Performance Standard, improving systems and processes to help us
meet external expectations and deliver stronger social and human
rights outcomes. In 2025, we continued to enhance our risk
management processes and provided assurance over key social
risks, testing Group level “bowties” (analysis tools for risk
management) and critical controls at selected operations, to ensure
cultural heritage and social impact risks are prevented and mitigated
effectively across our business.
Australian Advisory Group
We established the Australian Advisory Group (AAG) in 2022 to
provide independent expert advice to our executives on matters
impacting our relationship with Indigenous Peoples and
communities in Australia. In 2025, conversations centred around the
dynamic balance that the extractives industry must navigate
between western and traditional Indigenous knowledge and value
systems while managing operations and striving for innovation and
improved performance. As part of the AAG’s staggered terms of
engagement, inaugural member Professor Peter Yu AM retired as
Chairman, succeeded by June Oscar AO. We also welcomed Nigel
Browne, a descendant of the Larrakia and Wulna Peoples, with a
wealth of experience across both public and private sectors. Nigel is
widely known for his leadership, legal expertise, and long-standing
commitment to empowering Aboriginal communities in the Northern
Territory through economic development and advocacy. His diverse
experience includes advancing Aboriginal land rights, fostering
economic independence, leading strategic development projects,
and holding various senior legal and advisory roles. Other AAG
members are Djawa Yunupingu, Nyadol Nyuon OAM, Cris Parker
and Dr Teagan Shields.
Cultural heritage management
In 2025, we made progress towards our 2027 target of co-managing
cultural heritage with communities and knowledge holders. This was
supported by assets completing self-assessments against our
cultural heritage maturity framework. More assets are beginning to
co-manage heritage by making decisions together with Indigenous
Peoples about how they want their heritage protected.
Another key milestone was the significant progress on actions
arising from the global Independent Cultural Heritage Management
audits conducted in 2021 and 2022. Ongoing consultation with
assets throughout the year enabled us to complete all remaining
actions. In addition, the introduction and growing adoption of the
Cultural Heritage Management Plan template in 2025 has
strengthened cultural heritage management practices across our
operations. These practices are helping to embed a unified and
consistent approach to protecting and managing cultural heritage
across our business.
In September 2025, we hosted a 3-day Agreements and Cultural
Heritage Symposium in Vancouver, bringing together more than 90
internal and external Indigenous leaders, operational teams, subject
matter experts and practitioners. The event provided a space for
open dialogue and shared learning, enabling us to reflect on how we
can build better relationships, co-develop and implement
agreements, and manage cultural heritage across our business.
| Find out more about our approach to cultural heritage at riotinto.com/ culturalheritage |
Leadership, inclusion and partnership
Growing Indigenous leadership
We are committed to increasing Indigenous participation and
leadership, not only by attracting new talent, but also by investing in
the growth and development of our people. Since 2020, our
Indigenous Leadership Program in Australia has focused on creating
meaningful pathways to employment, expanding opportunities and
supporting long-term career development.
At the end of 2025, we had 54 Indigenous leaders across our
Australian business, down from 61 in 2024. The change was a result
of natural attrition and organisational changes across the business.
We remain committed to rebuilding and strengthening Indigenous
leadership capability, recognising the vital role these leaders play in
shaping our strategy, culture and long-term success.
Having Indigenous voices prominent in our business helps us make
more informed decisions and fosters a workplace where leadership
reflects the diversity of the communities in which we operate, and
where all employees feel empowered to grow, contribute and lead.
RioInspire
In 2022, we partnered with the Australian Graduate School of
Management at the University of New South Wales to develop and
deliver the RioInspire Indigenous Leadership Program. RioInspire is
a ground-breaking, globally recognised program that focuses on
developing executive-ready Indigenous future leaders. To date,
71 Indigenous leaders have graduated from the program, with 8 of
them continuing to complete graduate certificates and MBAs. Since
launching the program globally in 2024, 5 Indigenous leaders from
Canada and the US have participated.
Embedding cultural respect into everyday practice
We are committed to creating culturally safe and inclusive
environments where people of diverse backgrounds feel respected.
This commitment is reflected in initiatives that deepen cultural
understanding and elevate Indigenous voices across our business.
In Quebec, Canada, 90% of our Aluminium workforce (about
4,300 employees) have completed cultural awareness training,
developed with a local Indigenous consultant. At BC Works, all new
employees receive cultural awareness training during onboarding,
ensuring early engagement with the values of respect and inclusion.
Our 2-day Cultural Connection Program in Australia, co-designed
with Indigenous leaders and educators, is reshaping how leaders
engage with Indigenous culture, knowledge and communities. To
date, more than 80% of senior leaders have completed the program.
The impact is clear: 100% of participants say they would speak up
against racism, and positivity towards Aboriginal and Torres Strait
Islander Peoples has risen by 29%.
At New Zealand Aluminium Smelters (NZAS) all employees and
visitors now complete a compulsory cultural induction. Delivered
through an immersive digital experience, it shares the cultural and
historical significance of the Murihiku region from the perspective of
Ngāi Tahu, the local iwi with guardianship responsibilities over the
area. This fosters deeper connection to place and reinforces shared
responsibility to land and sea.
Together, these initiatives are helping build a workplace culture
grounded in respect, accountability and a genuine commitment
to reconciliation.
Annual Report on Form 20-F 2025 | 44 | riotinto.com |
Strategic report | Our approach to sustainability | Socially connected
Combining cultural knowledge and technology
Through our Living Languages Living Cultures program, we’ve
partnered with Indigital, an Indigenous-led social enterprise, and the
communities of Weipa, Aurukun, Napranum and Mapoon, to co-
design Caring for Country.
The program places Indigenous voices and expertise at the centre,
while also building digital skills for employment, entrepreneurship
and future industries. In November 2025, the program was
honoured with the “Collaboration of the Year” award at the Aboriginal
Enterprises in Mining, Energy & Exploration Awards for its role in
empowering Indigenous communities through the integration of
traditional knowledge and digital technologies to support cultural
preservation and environmental stewardship.
Supporting Indigenous businesses
We support local businesses, employ local people and buy local
products, especially from Indigenous, small and regional
enterprises. In 2025, we spent more than A$1.13 billion with
Indigenous businesses across Australia, marking a 22.6% increase
from the previous year. We're also continuing to grow our
partnerships with local and Indigenous businesses in North America.
In 2025, our spend with Indigenous suppliers in the region reached
$213.9 million.
These partnerships are demonstrations of real economic
development impact in communities. At our Rincon project in
Argentina, we are supporting local contractors and subcontractors,
offering direct assistance, and engaging proactively with
communities. As a result, community-based contractors and
subcontractors – mainly led by women – have grown from 3 in 2023
to 21 in 2025. At the same time, local spending has expanded 25-
fold, rising from ARS 277 million to ARS 7,309 million.
Truth and reconciliation
We recognise and celebrate Indigenous events and observance
days across our business. In 2025, we supported NAIDOC Week
and National Reconciliation Week in Australia, Indigenous History
Month in Canada, and the International Day of the World’s
Indigenous Peoples through global communications and
engagement campaigns.
By sharing stories, messages and educational materials, we help
our people deepen their understanding of Indigenous history,
cultures and Peoples. This ongoing awareness-building contributes
to a safer, more respectful and inclusive workplace.
Economic contributions ($ million)
2025 | 2024 | 2023 | 2022 | 2021 | |
Consolidated sales revenue | 57,638 | 53,658 | 54,041 | 55,554 | 63,495 |
Net cash generated from operating activities1 | 16,832 | 15,599 | 15,160 | 16,134 | 25,345 |
Profit after tax for the year | 10,249 | 11,574 | 9,953 | 13,048 | 22,597 |
Underlying earnings | 10,868 | 10,867 | 11,755 | 13,359 | 21,401 |
Underlying earnings per share (US cents) | 669.2 | 669.5 | 725.0 | 824.7 | 1,322.4 |
Net (debt)/cash | (14,362) | (5,491) | (4,231) | (4,188) | 1,576 |
Purchases of property, plant and equipment and intangible assets | (12,335) | (9,621) | (7,086) | (6,750) | (7,384) |
Employment costs | (7,605) | (7,055) | (6,636) | (6,002) | (5,513) |
Payables to governments2 | (10,229) | (8,214) | (7,881) | (9,313) | (12,789) |
Amounts paid by Rio Tinto | N/A3 | (8,401) | (8,524) | (10,779) | (13,334) |
Amounts paid by Rio Tinto on behalf of its employees | N/A3 | (1,821) | (1,755) | (1,622) | (1,486) |
1.Data includes dividends from equity accounted units, and is after payments of interest, taxes and dividends to non-controlling interests in subsidiaries.
2.Payables to governments includes corporate taxes, government royalties and employer payroll taxes.
3.Our Taxes and Royalties Paid Report will be published later this year on riotinto.com.
2025 | 2024 | 2023 | 2022 | 2021 | |
Social investment1 (discretionary) | 114.3 | 95.9 | 84.0 | 62.6 | 72.1 |
Mandatory social contributions2 (non-discretionary) | 34.6 | 23.3 | 17.6 | 18.2 | 19.1 |
Payment to landowners3 (non-discretionary) | 222.7 | 221.9 | 231.9 | 299.0 | 222.9 |
1.Social investments (previously referred to as community investments) are voluntary financial commitments, including in-kind donations of assets and employee time, made by Rio Tinto
managed operations to third parties to address identified community needs or social risks.
2.Mandated social contributions (previously referred to as development contributions) are defined as non-discretionary financial commitments, including in-kind donations of assets and employee
time, made by Rio Tinto to a third party to deliver social, economic and/or environmental benefits for a community, which Rio Tinto is mandated to make under a legally binding agreement, by a
regulatory authority or otherwise by law.
3.Payment to landowners are non-discretionary compensation payments made by Rio Tinto to third parties under land access, mine development, native title, impact benefit and other
legally binding compensation agreements.
Annual Report on Form 20-F 2025 | 45 | riotinto.com |
Strategic report | Our approach to sustainability | Socially connected
Human rights
Respecting human rights is core to our values, to maintaining strong
sustainability performance and to our social licence.
Commitment
We are committed to treating everyone with dignity and respect –
from our employees, contractors and workers in our value chain, to
the communities we partner with, and others affected by our
activities and business relationships. We know that our activities,
and those of our partners, can have both positive and negative
impacts on human rights. By embedding rights-respecting and
ethical behaviour throughout our business, we are better able to
prevent human rights harm. To do this, we rely on:
•empowering people through an inclusive and supportive business
culture that aligns with our values
•embedding human rights due diligence into business processes
and systems
•engaging with stakeholders to improve how we identify and
address root causes of human rights harm.
Everywhere we operate, people and safety come first. By committing to
implement the UN Guiding Principles on Business and Human Rights
(UNGPs) and other international standards outlined in our Human
Rights Policy, we strengthen our ability to uphold this priority.
| For more information see our Human Rights Policy at riotinto.com/humanrights |
2025 progress
Governance
We continue to evolve our human rights performance to help prevent
involvement in adverse human rights impacts. This has included
refining our internal standards, systems and processes to integrate
human rights due diligence, and to promote more responsible and
ethical ways of working. In 2025, we provided the Sustainability
Committee with an update on our human rights performance.
Salient human rights issues
These are the priority human rights issues that could severely
impact people through our activities or business relationships. They
consider our operational footprint, value chain and external contexts,
and include:
•land access and use
•Indigenous Peoples’ rights
•security
•inclusion and diversity
•community health, safety and wellbeing
•workplace health and safety
•labour rights (including modern slavery)
•climate change and just transition
We continue to monitor how these issues could manifest within our
business and our relationships with others. In 2025, we focused
particular attention on labour rights in the contracted workforce, and
community health, safety and wellbeing.
Assets conduct self-assessments to enable a more complete
understanding of their risk context and to help them prioritise and take
action to prevent human rights harm. A reduced number of assessments
were conducted in 2025 (21 in 2025 compared to 59 in 2024). The
higher number in 2024 was due to 2 regional assessments conducted
that year, which together covered 39 assets across closure and
operating sites. Assessments conducted in 2025 included at Richards
Bay Minerals, Rincon and Oyu Tolgoi.
In 2025, we also published a summary report of an independent Human
Rights Impact Assessment conducted at the SimFer project in Guinea in
2024. In March 2025, we reported on our progress to address identified
human rights risks and impacts at the mine, rail spur and port. Visit
riotinto.com/humanrights to read the reports.
| For more information see our 2025 Sustainability Fact Book at riotinto.com/sustainabilityreporting |
Our business relationships
Building trust with communities, business partners and other
stakeholders is key to meeting our objectives and advancing respect
for human rights. In 2025, we worked with suppliers and business
partners in Argentina, China, Guinea and other regions where we
operate to share insights and learn from each other. This work
strengthened our collective ability to advance labour rights in diverse
local contexts. We continue to work with joint venture partners to
provide human rights support and monitor human rights
performance, including through Board and Committee roles for non-
managed operations.
Suppliers
We expect our suppliers and sub-contractors to respect human rights,
including as outlined in our Supplier Code of Conduct. Using a risk-
based approach through our third-party due diligence process, we pre-
screen potential business partners and complete specialist human rights
reviews. In 2025, we completed 5,860 third party due diligence
assessments, and 174 were escalated to the human rights team for
further review. For higher-risk suppliers, we develop action plans to
mitigate salient human rights risks identified. Our approach focuses
on improving supplier performance through dialogue and partnership,
rather than avoidance or termination of relationships.
We focused our supplier due diligence efforts on renewables
equipment manufacturers and labour hire providers in 2025,
and conducted specialised assessments to support our projects,
including repowering our Gladstone aluminium operations.
In 2025, we engaged independent, certified labour rights auditors to
assess 3 suppliers in Australia and Canada. We also worked
to monitor non-conformances identified in 2024 through our supplier
audit program.
Grievance and remedy
Effective grievance management can enable more trusted relationships
and help prevent human rights harm. Every asset is required to have a
local grievance mechanism. Consistent with the UNGPs, we are
committed to providing for, or cooperating in, remediation when we
identify we have caused or contributed to human rights harm. We may
also play a role in remediation where we are directly linked to harm
through our products, services or operations.
In 2025, our human rights team supported a range of internal
investigations and assessments with a focus on grievance and remedy
processes, including at Oyu Tolgoi, Simandou and Rincon. This work
was reinforced by the launch of our in-house Worker Welfare
Assessment, designed to identify and respond to risks in our workforce.
We also continued to monitor a supplier’s ongoing mitigation and
preventative actions regarding hazardous child labour, as reported in
our 2024 Modern Slavery Statement.
| For more information see our Modern Slavery Statement at riotinto.com/modernslavery |
Capacity-building on human rights
Everyone has a role in respecting human rights. In 2025, we refreshed
our Group-wide human rights training program for higher-risk roles by
incorporating more real-world scenarios, equipping these leaders with
practical guidance to take rights-respecting action. We also delivered an
updated Modern Slavery Training module to our Commercial function,
focusing on the specific risks and indicators most relevant to their roles
and responsibilities.
Collaboration
Human rights challenges can be systemic, and can require
collaboration with peers, civil society organisations, workers’
organisations, business partners and others. In 2025, we continued
to support ICMM’s Social Performance working group, the Human
Rights Resources and Energy Collaborative, and the Mining
Association of Canada’s International Social Responsibility
Committee. We participated in the Voluntary Principles Initiative and
with UN Global Compact Network Australia, and attended business
and human rights forums in Australia, the US and Canada. We also
engaged with Australia’s Office of the Anti-Slavery Commissioner on
our response to modern slavery. These engagements help us better
identify, mitigate and address the root causes of human rights harm.
Annual Report on Form 20-F 2025 | 46 | riotinto.com |
Strategic report | Our approach to sustainability
Environmentally committed
We recognise that our operations have an inherent impact on nature, both directly
and indirectly, and we are committed to contributing to the global shift toward a
nature positive future.
Achieving our mission to be the most valued metals and mining
business relies on the responsible stewardship of shared natural
resources. Sustainable success is driven by better decision-making,
fostering collaboration, maintaining transparency, and measuring
performance as we aim to minimise our impact on nature and
society.
Governance
Business decisions centred on strong sustainability and social
licence are imperative to creating long-term value. Our Executive
Committee and Board have overall responsibility for, and oversight
of, environmental management and performance through our Risk
Management and Sustainability Committees, including a principal
environment risk that we track at a Group level.
We have shared our support for the ICMM’s Nature Position
Statement, to align industry action on the Kunming-Montreal Global
Biodiversity Framework (GBF) and 2030 targets. Our nature
framework outlines the processes and actions that underpin our
contribution to a nature positive future, in line with increasing
societal expectations.
We take a long-term view of our responsibilities, managing the risks
and impacts of our activities from exploration and project inception
through closure and beyond. We are committed to refining our
systems and processes to ensure transparent, accountable
decision-making that strengthens environmental outcomes and
manages nature-related risks responsibly.
As stewards of natural resources, we recognise the trust placed in
us. We manage air, biodiversity, land, and water with care, along
with the material inputs and outputs of our operations and their full
life cycle footprint. This commitment ensures we operate responsibly
while supporting resilient ecosystems and sustainable communities.
Our nature framework Ambition: To meaningfully contribute to a nature positive future through integrated environmental management practices that support our operational excellence objective. Commitments: Deliver on our commitments for nature - including our Standards and the ICMM Nature Position Statement. Risk: Enhance our understanding and management of material business risks across our operations and value chain. Assurance Increase stakeholder confidence in performance and reporting through internal and external assurance activities for our assets and supply chains. Targets: Operational nature targets to focus our efforts on continuous improvement. Disclosures: Enhance transparency of environmental performance information and data over time. | ||
Commitments
Our commitment to the ICMM Nature Position Statement informs
our actions and accountabilities to deliver the desired
environmental, social and economic outcomes for the business. This
includes the following clear commitments:
•We contribute to the global nature positive goal of “halting and
reversing biodiversity loss by 2030 from a 2020 baseline, with a
full recovery by 2050”.
•We do not explore or extract resources within the boundaries of
UNESCO World Heritage sites. All reasonable steps will be taken
to ensure future operations adjacent to World Heritage sites are
not incompatible with the outstanding universal value for which
these sites are listed and do not put the integrity of these sites at
risk.
•We respect legally designated protected areas and ensure any
new operations or changes to existing operations are not
incompatible with the objectives for which the protected areas
were established.
•We do not undertake deep-sea mining, and believe it should not
take place unless comprehensive scientific research refutes
currently held evidence that it will create significant environmental
and socioeconomic implications.
Performance and targets
Our nature target program is a core component of our nature
framework and one of the ways we plan to contribute to a nature
positive future. The program acknowledges the interconnectedness
of the realms of nature – air, land and water - and their ties to
biodiversity, climate and society. The nature targets program
includes a set of locally focused, site improvement plans, initiated in
2025. The program seeks to enhance the transparency of our nature
risks, challenges and performance. Progress on the nature targets
will be reported annually on our website.
Annual Report on Form 20-F 2025 | 47 | riotinto.com |
Strategic report | Our approach to sustainability | Environmentally committed
Water
Water is essential to life. It is inherently linked to healthy, thriving
ecosystems and communities, and holds spiritual significance to
Indigenous and land-connected Peoples all over the world. It is also
an essential resource for our operations, enabling access to
orebodies and processing of ore to provide the materials the world
needs. As water is a finite shared resource, responsible water
stewardship is critical to our business’s success. Protecting water
ensures it remains available and clean for the ecosystems and
communities that depend on it, and for stable and sustainable
operations to continue for generations.
Our commitment to responsible water stewardship is reflected
through our business strategy, standards, policies and member
association commitments.
We have developed a water risk framework that we use to
consistently identify, assess, manage and communicate water risk
across our portfolio. The framework allows us to have relevant
conversations about water threats and opportunities, informing
decisions and strategic plans, for operational and catchment-level
decisions beyond an individual site. It covers four water risk
categories:
1)water resource (issues relating to water withdrawals for
supply purposes)
2)water quality and quantity (issues relating to excess surface
water management, discharges or seepage)
3)dewatering (issues relating to groundwater withdrawals to safely
depressurise and access below water table orebodies)
4)long-term obligations (consideration of items 1-3 over long
timescales, eg post mining).
Our 2025 water risk profile shows how our exposure varies across
the four risk categories. We manage all risks in accordance with our
company standards and applicable local regulations and guidelines.
We have a library of water management controls that promote
consistent operational risk management and assurance by our
frontline asset teams and supporting second-line functions. The
controls guide and organise how we monitor, plan, use infrastructure
and adaptively manage water. Our approach to water is integrated
with our approach to communities, climate change, tailings
management and closure.
Group water risk profile (percentage of managed operations1)
Examples of ranking |
Water resource
Is there enough water available for environment needs, community
needs and our operational use?
Our iron ore port operations in the Pilbara, Western Australia, are
supplied with water from the West Pilbara Water Supply Scheme.
The scheme is vulnerable to drought, and Traditional Owner groups
have raised concerns about environmental and cultural impacts. The
water resource risk for these operations is assessed as high. Rio
Tinto is committed to enhancing water security in this region.
Water quality and quantity
Does the way we manage water onsite, or discharge excess water,
cause environmental impacts or operational constraints?
Our ilmenite mine near Havre-Saint-Pierre (HSP) in Quebec,
Canada is surrounded by ecologically and socially significant lakes
and water features. The quality and quantity risk for HSP mine is
assessed as high and excess water from the mine needs to be
carefully managed. To ensure water is released to the environment
at a suitable quality, we are working on a multi-year water
management improvement project.
Dewatering
Does the removal of water from the operational areas of our sites
impact regional aquifers or our mine plans?
Impacts associated with dewatering and water supply activities in
the Pilbara, Western Australia are recognised as a very high risk for
our business. Returning water to the aquifers impacted by our
mining activities in a controlled manner is the focus of a number of
ongoing studies. We are also continuing to work with Traditional
Owners on water management.
Long-term obligations
Do our operational activities generate long-term or ongoing
obligations related to water?
We may sometimes generate impacts that we are required to
manage over the long term, such as post-closure pit lakes in the
Pilbara, or potential seepage from our waste rock or tailings facilities
in our aluminium and copper sites. Our systems and standards aim
to ensure that risks are identified early and managed appropriately
and responsibly throughout the asset life cycle, including legacy
issues.
l Not applicable | l Low risk | l Moderate risk | l High risk | l Very high risk |
1.Due to rounding, the sum may not total 100%. Ratings based on 2025 assessment, excluding projects and recent lithium acquisitions. Refer to Sustainability Fact Book for additional
information.
Annual Report on Form 20-F 2025 | 48 | riotinto.com |
Strategic report | Our approach to sustainability | Environmentally committed
2025 progress
Our water balance
Our Group water balance outlines where water was withdrawn from,
discharged to, recycled, or reused and consumed at our operations.
The reported categories correlate with the requirements of ICMM
and the Global Reporting Initiative.
We also report on our aggregated water balance for sites in water-
stressed areas. We assess water stress using the World Resources
Institute’s Aqueduct Water Risk Atlas mapping tool.
| For more information see our 2025 Sustainability Fact Book at riotinto.com/sustainabilityreporting |
Our water performance
Our total operational withdrawals for 2025 were 1,147 gigalitres (GL)
(2024: 1,250 GL). Freshwater, or category 1 quality, withdrawals
accounted for 386 GL or 34% of this total (2024: 399 GL).
Freshwater is generally suitable for consumption with minimal
treatment required. Where possible, we aim to minimise our
extractions from water sources of this quality.
Total discharges for 2025 were 626 GL (2024: 641 GL). Total water
recycled or reused for 2025 was 374 GL (2024: 344 GL).
Our activity
We progressed several initiatives in 2025 that demonstrate our
ongoing recognition of the importance of respecting rights,
partnerships, innovation and transparency. These include:
•Implementation of the QIT Madagascar Minerals water strategy,
with transparent reporting of water management and performance
data through the 2024 Water Report and monthly dashboard, in
parallel with community-focused programs.
•Construction of Stage 1 (4 GL) Dampier desalination plant, which will
allow us to reduce our groundwater withdrawals from the Bungaroo
Aquifer in the Pilbara, Western Australia, and establishment of a
Memorandum of Understanding with the Western Australian
Government to assess feasibility for a Stage 2 plant expansion.
•Management or involvement in regional water monitoring and
engagement programs, including initiatives in Gladstone Harbour
(Queensland, Australia), Nechako Valley (British Columbia, Canada),
and Saguenay–Lac-Saint-Jean (Quebec, Canada).
•Piloting technologies for water treatment and metal recovery at
our Kennecott operation in the US, including use of plant-based
methods (phytoremediation).
•Working collaboratively with stakeholders to improve our
understanding of the cultural value of water.
•Entering a partnership with Skarn to develop an innovative water
intensity benchmarking dataset for the lithium sector.
•Updating our Surface Water Allocation Disclosure Dashboard and
continued work on an expansion of the dashboard to include
groundwater information in 2026.
| For more information see riotinto.com/water |
Biodiversity
Biodiversity underpins the ecosystems that sustain life, livelihoods,
and economies. For Rio Tinto, healthy ecosystems are critical – not
only for supporting ecological communities but also for ensuring
operational resilience. Our mining activities often intersect with
areas of high ecological value, and the industry relies on ecosystem
services such as clean water and air, erosion control, and climate
stability.
We recognise the potential impacts of our activities on biodiversity
and are committed to achieving no net loss (NNL) or a net gain (Net
Positive Impact, NPI) to biodiversity, measured against a 2020
baseline, by the end of closure.
Rio Tinto’s approach to biodiversity management is embedded in
Environment Standards and aligned with global frameworks,
including the Global Reporting Initiative. We apply the mitigation
hierarchy - avoid, minimise, rehabilitate and offset - to prioritise
avoidance across all stages of the mining lifecycle, including
exploration, project development, operations and closure.
Where impacts cannot be avoided, we implement mitigation and
rehabilitation measures. Where applicable, offsets are initiated early
in the project life cycle and developed in consultation with
stakeholders to address residual impacts. Recent updates to our
exploration procedures have improved the capture and reporting of
avoidance actions as part of tenure management. Additionally,
enhancements to our Studies guidance will strengthen the
integration of mitigation, offsetting and avoidance measures during
project initiation.
We maintain asset-level biodiversity action plans, addressing priority
species – including those listed on the International Union for
Conservation of Nature (IUCN) Red List. These efforts are guided
by site-specific assessments and inclusive engagement with
stakeholders, particularly Indigenous and land-connected
communities.
Globally, one of the central challenges for business is establishing
scalable approaches to assess the condition of nature. We actively
participate in industry and cross-sectoral forums to advance our
methodologies to measure no net loss or net gain to biodiversity
across our operations; this includes the ICMM Nature Working
Group.
Our strategic partnerships with Proteus (UNEP-WCMC) and BirdLife
International continued, allowing us to contribute to, and benefit
from, global biodiversity expertise. We also had the opportunity to
sponsor the Western Australia Biodiversity Conference, and
participate in the UNEP-WCMC Nature Action Dialogues.
Annual Report on Form 20-F 2025 | 49 | riotinto.com |
Strategic report | Our approach to sustainability | Environmentally committed
2025 progress
Through 2025, Rio Tinto continued to strengthen its biodiversity
management approach, translating our nature positive commitments
into tangible actions across our global operations. Guided by the
ICMM Nature Position Statement and aligned with emerging global
frameworks such as the Taskforce on Nature-related Financial
Disclosures (TNFD), we focused on building robust baselines,
piloting measurement methodologies, enhancing transparency and
investing in conservation partnerships that deliver ecological
benefits beyond our operational footprint.
We actively participated in the Nature Positive Initiative (NPI) Pilot
Program for our Pilbara Iron Ore and Oyu Tolgoi copper assets,
supported by our piloting partner BirdLife International. This initiative
tested draft global terrestrial biodiversity metrics using site-specific
and public data to assess the current and 2020 baseline state of
nature through real-world case studies. The results will contribute to
NPI’s further refinement of recommended metrics and guidance
material in 2026.
Environmental data collection at our assets continues to inform our
understanding of the ecological context within and surrounding our
operational footprint, and it is a critical step toward measuring
progress against no net loss. In alignment with our Environment
Standards, these monitoring activities are shaped by regulatory
requirements and host community engagement. In 2025, we
continued a portfolio-wide program to develop biodiversity baselines
and an NNL prioritisation framework aligned with global best
practice principles and ICMM commitments.
To further support our baselining and state-of-nature measurement
efforts, we conducted a comprehensive review of publicly available
data and tools. Using NNL/NPI calculation methodologies and a
suite of global guidance and reference documents, we derived
insights into the 2020 ecosystem extent, condition and species
presence across key assets in Australia, Asia, Africa and Canada.
This generated a detailed technical understanding of available tools
applicable to a global footprint that encompasses a wide range of
biomes.
Additional Conservation Actions (ACAs) play a complementary role
in strengthening our biodiversity management approach, particularly
where opportunities remain to uplift ecological outcomes after
applying mitigation processes. ACAs help deliver broader ecological
benefits beyond our operational footprint, be that supporting species
recovery, enhancing ecosystem resilience or enhancing
understanding of our natural environment. In 2025, we initiated and
continued several key projects, such as our Pilbara Conservation
Project, Founders Factory Start-up Partnerships for Sustainability
and the North Queensland Land and Sea Program. Visit our website
for more information.
| For more information see riotinto.com/biodiversity |
Land
Effective land management is essential to minimising environmental
impacts and supporting sustainable mining operations. Key activities
include planning and managing land use to reduce disturbance,
implementing progressive rehabilitation during the life of mine, and
restoring ecosystems post-closure. We focus on soil conservation,
erosion control, and revegetation practices, while engaging with
stakeholders to align land use with community and environmental
values. These efforts ensure responsible stewardship of land
resources and contribute to long-term environmental resilience.
In 2025, we rehabilitated 26 km2 of land, mostly at our Argyle
diamond mine in Australia, Simandou project in Guinea and iron ore
mines and exploration areas in the Pilbara.
In Mongolia, we rehabilitated another 6 km² of abandoned mine
workings outside our operational footprint, near the Tsagaan Zur
river in the Selenge province. This effort supports Oyu Tolgoi’s
commitment to the Government of Mongolia’s national initiative to
plant one billion trees by 2030. We established and handed over
another 3 tree nurseries in the South Gobi to the local community,
with a combined capacity to produce an additional one million
saplings annually. We planted 1.6 million trees and awarded 5 more
scholarships to students pursuing forestry studies.
Throughout the last year, we continued to transform commitments
into action. We developed a number of site improvement plans
focused on land stewardship for priority operations as part of the
implementation of our nature targets program.
At the end of the year, our land footprint – total disturbed area – was
1,818 km2, an increase of 56 km2 from 2024. This includes all
disturbances at our operating assets and activities, such as
exploration activities, smelters, mines and supporting infrastructure.
The majority of disturbance occurred at Weipa and Simandou as a
result of the establishment of new mining areas.
Our rehabilitation and closure teams continue to partner with
research centres to refine our approaches and improve outcomes.
At our bauxite mines and refineries, we have progressed trials
focusing on transforming stored tailings material into soils that will
support plant growth. To strengthen monitoring of rehabilitated
areas, we advanced trials of digital tools designed to complement
traditional on-ground data collection.
In addition, 14 of our operations completed rehabilitation
trials aimed at improving seed germination, reducing erosion
and enhancing topsoil quality – critical factors for
rehabilitation success.
| For more information about our closure work see page 51. |
Waste
As the global population continues to grow and industrialise,
effective management of waste materials is expected to become
increasingly important for people and nature. Rio Tinto produces
materials that play an important role in the economy while managing
mineral and non-mineral materials responsibly. We strive to enhance
our approach to materials management practices by designing out
waste where possible, keeping resources in use longer, and safely
and responsibly disposing of wastes across our business and value
chain.
Our mineral waste generation and disposal volumes have remained
similar over the past 5 years, however there is more annual
variability in non-mineral waste volumes and disposals, which is
largely driven by mine development and closure activities. Looking
ahead, we aim to maximise resource efficiency while eliminating
waste and recovering valuable materials. We will continue to explore
circular solutions and innovative ways to manage materials.
| For more information about tailings see page 51. |
Annual Report on Form 20-F 2025 | 50 | riotinto.com |
Strategic report | Our approach to sustainability | Environmentally committed
Air quality
Clean air is essential for the health of ecosystems and host
communities that surround our operations. Emissions such as
particulates and gases have the potential to impact air quality and
the atmosphere, so we have a responsibility to ensure they are
managed in line with regulations and stakeholder expectations.
Some emissions can be hazardous and require careful monitoring
and management. The potentially hazardous emissions we monitor
at operations are:
•sulphur oxides (SOx), mainly at our aluminium and copper smelters
•nitrogen oxides (NOx), mainly from burning fossil fuels
•gaseous fluoride emissions from aluminium smelters
•respirable particulate emissions (PM10 and PM2.5) - very fine particles
from mining and processing operations and from burning fossil fuels.
We apply the mitigation hierarchy across all phases of the mining
life cycle to keep air emissions within acceptable limits. Our first
priority is to avoid generating emissions wherever possible.
Progress on decarbonisation initiatives has supported reductions in
air pollutants, including the installation of solar power, heat recovery
systems, and the use of renewable fuels.
Many of our hazardous emission levels have remained relatively
stable over the past 5 years (NOx, SOx, fluoride), though we have
seen a slight increase in PM10 values over the past 3 years. We aim
to reduce point source emissions by upgrading equipment with best-
available technologies and incorporating control technology
evaluations into capital projects. Proper operation and maintenance
of assets is critical to minimising emissions, though some inevitably
leave our sites. We implement and expand air monitoring networks
inside and outside our site boundaries.
Operational environment overview
2025 | 2024 | 2023 | 2022 | 2021 | |
Significant environmental incidents1 | 0 | 0 | 1 | 1 | 2 |
Fines and prosecutions – environment ($’000)2 | 1,639.3 | 604.8 | 987.0 | 109.8 | 7.4 |
Land footprint – disturbed (cumulative square kilometres)3 | 1,818 | 1,762 | 1,813 | 1,775 | 1,700 |
Land footprint – rehabilitated (cumulative square kilometres) | 610 | 587 | 552 | 522 | 494 |
Mineral waste disposed or stored (million tonnes) | 924 | 980 | 983 | 978 | 1,005 |
Non-mineral waste disposed or stored (million tonnes) | 0.77 | 0.66 | 0.73 | 0.75 | 0.65 |
SOx emissions (thousand tonnes) | 75.2 | 73.7 | 72.8 | 66.2 | 70.2 |
NOx emissions (thousand tonnes) | 58.7 | 55.3 | 67.2 | 64.6 | 62.3 |
Fluoride emissions (thousand tonnes) | 2.23 | 2.40 | 2.61 | 2.36 | 2.36 |
Particulate (PM10) emissions (thousand tonnes) | 176.2 | 168.2 | 169.5 | 146.3 | 142.3 |
1.Significant environmental incident is an incident with an actual consequence rating of high or very high. We measure and rate incidents according to their actual environmental and
compliance impacts using 5 severity categories: very low, low, moderate, high and very high. Very high and high environmental incidents are usually reported to the relevant product
group head and the Rio Tinto Chief Executive as soon as possible.
2.In 2025, we received environmental fines and administrative penalties relating to contaminant releases, permitting non compliances, discharge exceedances and failures to meet
regulatory requirements across several operations. At Yarwun in Australia, regulators issued two penalty infringement notices for contaminant releases involving saline effluent from a
pipeline and the discharge of bauxite washwater slurry from a wharf. In Canada, the Vaudreuil plant received non compliances under the Environmental Quality Act and hazardous
materials regulations, the Roberval/Port Alfred site was cited for delayed incident reporting, and the Arvida plant exceeded discharge criteria for toxicity and hydrocarbons and received a
non compliance relating to environmental operating conditions. Further administrative penalties were issued at Havre Saint Pierre and Lac Tio for inadequate project construction
authorisations and containment infrastructure maintenance practices, delayed reporting of permit exceedances, and unauthorized disposal of residual materials, along with federal
penalties related to 2023 effluent exceedances and sampling errors during an unauthorized discharge. In the United States, enforcement actions continued under the Wilmington
operations consent decree. Following extensive investigations at Kennecott Copper, historical permitting non-compliances related to water containment failures and upset conditions was
resolved through a monetary penalty, with no detectable contamination identified. Separately, at Rotterdam operations in Europe, a transporter was fined for non compliant hazardous
goods labelling under EU ADR regulations during shipment of product in France.
3.A reduction in cumulative disturbance from 2023-2024 is a result of the sale of Dampier Salt Limited’s Lake MacLeod operation.
Note: The numbers may change year to year and retrospectively due to reconciliations of data.
Annual Report on Form 20-F 2025 | 51 | riotinto.com |
Strategic report | Our approach to sustainability | Environmentally committed
Tailings
We engage with stakeholders throughout the life cycle of our tailings
storage facilities (TSFs), from design to closure. We also collaborate
closely with external bodies to improve the way tailings are
managed across our industry.
We operate 111 TSFs across our global assets. Of the 111 TSFs, 40
are active, 24 are inactive and 47 are closed.
We work through technical committees and joint venture
relationships to support leading practice in tailings management.
Our full tailings disclosure is available on our website. We
periodically update the list of TSFs to reflect operational and
ownership changes. These include changes due to the transition to
closure or remediation obligations for legacy assets, and
reclassification of facilities.
Our facilities are regulated and permitted and have been managed
for many years to comply with local laws, regulations, permits,
licences and other requirements. Tailings management has been
included in the Group risk register since 2010, and our Group safety
standard for tailings and water storage facilities has been in place
since 2015. Our internal assurance processes verify that our
managed TSFs operate in accordance with this standard, which we
updated in 2021.
Our TSFs have emergency response plans – tested through training
exercises in collaboration with stakeholders such as local
emergency services – and follow strict business resilience and
communication protocols.
2025 progress
We have continued to progress our implementation of the Global
Industry Standard on Tailings Management (GISTM). This focuses
on preventing tailings facility failures, reducing the social and
environmental impacts of tailings facilities, and improving
engagement and transparency on tailings with local communities.
We have also assessed our progress on implementation through
self-assessment and independent audits, using ICMM’s GISTM
Conformance Protocols.
In 2025, we achieved full GISTM conformance for the “Very High”
and “Extreme” consequence classification tailings facilities, and for
the majority of the “Low”, “Significant” and “High” consequence
facilities.
Our product group and Closure teams will continue to work towards
full conformance and we will report our performance yearly in
accordance with the GISTM requirements.
In August 2025, in accordance with Principle 15 of the GISTM, we
updated our public tailings disclosures for the 14 “Very High” and
“Extreme” TSFs we operate and published new information on a
further 84 tailings facilities rated “Low”, “High” or “Significant”.
| For more information see riotinto.com/tailings |
In 2025:
•We continued to regularly convene the Tailings Management
Committee with our designated Accountable Executives. This
provides coordinated governance of tailings management
practices across the Group.
•We continued to play an active role in the ICMM tailings working
group, which provides guidance to support the safe, responsible
management of tailings with the goal of eliminating fatalities and
catastrophic events.
Closure
We are committed to being responsible operators throughout the
entire life of our assets, delivering value at every stage – from
discovery to closure.
Today, we plan for the end right from the beginning, incorporating
closure in each stage of the asset life cycle in the way we design,
build and operate.
We work with communities, governments and other stakeholders to
complete closure activities and repurpose and renew sites for their
next use.
At the end of 2025, closure provisions on our balance sheet totalled
$17.8 billion (2024: $15.7 billion).
2025 progress
In 2025, we continued to advance delivery of our major closure projects
in Australia and management of our global legacy portfolio.
Argyle diamond mine
We continue rehabilitating the former Argyle diamond mine on
Miriwoong and Gija country in Western Australia. We have made
significant progress on reprofiling the former processing plant area,
and waste rock dumps, and capping the tailings storage facility. We
have now passed beyond 85% overall project completion, and the
removal of the Argyle mine accommodation facilities, utilities
infrastructure and airport is nearly complete.
We are continuing to review our contracting strategy to focus on
work awarded to Traditional Owner businesses, spending
A$47.1 million in 2025 (2024: A$44.9 million).
Gove refinery and residue disposal areas
While bauxite mining operations continue until the end of the
decade, we are progressing demolition of the Gove alumina refinery
and rehabilitation work on the former bauxite residue disposal areas
(BRDA), a type of tailings storage facility, on the lands of the Yolŋu
peoples in the Northern Territory of Australia.
In 2025, we completed demolition of the remaining large structures
of the refinery. Working with Traditional Owners, and through careful
planning, we took measures to ensure the protection of an important
cultural heritage site during demolition activity, understanding its
importance to the Yolŋu. We have processed around 127,000
tonnes of scrap steel for recycling since 2023. We continue to
advance soil remediation of the refinery site as we work towards
final landform and revegetating the area.
We are progressing rehabilitation work of the former BRDAs,
completing civil works on Pond 5 to prepare for monitoring and
maintenance, and starting work on Pond 6 South, working with a
Traditional Owner business on enabling works.
We launched a pilot housing demolition program for properties
unsuitable to be retained, to create opportunities for local builders to
develop new and diverse housing on vacant, serviced lots. Work to
upgrade services such as sewer lines, power and water
is also underway.
We are developing programs that build local capability and
resilience, including partnering with schools to offer virtual work
experience opportunities for young people.
We continue to be an active member of the Gove Peninsula Future
Reference Group along with Traditional Owners, Northern Territory
and Commonwealth governments, and the Northern Land Council,
to support planning for the region’s future and helping transition to a
post-mining future.
Annual Report on Form 20-F 2025 | 52 | riotinto.com |
Strategic report | Our approach to sustainability | Environmentally committed
Ranger Rehabilitation Project
We continue to operate under the Management Services Agreement
(MSA) with Energy Resources of Australia Ltd. (ERA) to manage the
Ranger Rehabilitation Project with oversight from the ERA board.
The former Ranger uranium mine is located on the traditional lands
of the Mirarr People in the Northern Territory. The MSA builds on
ERA’s existing rehabilitation efforts and enables us to share our
technical expertise in the design, planning and execution of closure
projects, including managing stakeholder engagement and delivery
partner relationships.
Rio Tinto holds approximately 98.43% of ERA’s shares and in April
2025, we began the compulsory acquisition process to acquire the
remaining shares in ERA. In May 2025, objections were lodged
during the objection period by the holders of at least 10% of the ERA
shares subject to the acquisition notice. We have applied for court
approval of the proposed compulsory acquisition of the remaining
shares in ERA, and the matter remains before the court.
In 2025, we progressed Pit 3 dry capping, installing geotextile
and beginning the initial dry capping layers. We continue to
face challenges in drying the tailings surface and are assessing
engineering options and solutions to continue the capping
works in 2026. Other aspects of the project are making good
progress including environmental management, regulatory
approvals, stakeholder engagement, land tenure negotiations
and technical studies.
We remain committed to the rehabilitation of the Ranger Project
Area to a standard that will establish an environment similar to the
adjacent Kakadu National Park, a World Heritage site. We continue
to work with all key stakeholders, including the Mirarr People, to
complete this important rehabilitation project.
Legacy assets
We manage over 90 legacy assets in 9 countries and 30 tailings
storage facilities (TSF) across our portfolio.
We have achieved safe closure status at Argyle TSFs ATD 1, ATD 2
and ATD 3 at the former Argyle Diamond Mine in Western Australia
and the Kelian in-pit TSF at Kelian in Indonesia. At Holden and
Ridgeway in the US, Kelian Namuk in Indonesia, and Segoussac in
France, TSF risks are considered as low as reasonably practicable,
demonstrating improvement in risk management.
| For more information on tailings management, see page 51. |
We continue to progress execution and enabling work across the
global legacy portfolio to meet our commitments. In 2025:
•We started phase 2 of our rehabilitation work at Dammarie-lès-
Lys in France. Work includes removal of contaminated soil,
enabling the site for repurposing. To reduce impacts due to dust,
noise and traffic to the nearby community, work will be completed
under a tent.
•We restarted rehabilitation work at Salindres in France. Work
includes land shaping, reinforcement of a dyke, capping and
improved water management.
•We progressed regulatory approval for our remediation plan at
Beatson, a series of former copper mines in Alaska, US, which
enables us to prepare for execution.
•We continued to review our portfolio for commercial opportunities,
completing the surrender of the lease of land at the Anglesey site
in Wales, UK. This site is a former aluminium smelter
decommissioned in 2013, with voluntary remediation works
completed from 2018 to 2024, enabling the area for
redevelopment.
Our approach
Where relevant, all of our operating sites have closure plans, and
we are developing closure plans for assets that have an indefinite
life, such as some port facilities. We review these plans regularly to
align with stakeholder expectations and to incorporate lessons
learned from other closure projects. At operations with joint
ownership structures, we endeavour to work in partnership with
other asset owners to ensure we consider closure through asset
design, planning and operations. Further review and update of
closure planning at Arcadium assets will be carried out to ensure
they are consistent with Rio Tinto requirements.
While planning for closure currently starts when we first design a
mine, we start more detailed planning at least a decade before we
expect an operation will close.
In 2025, we met our guidance provided to the market in 2024,
spending ~$1 billion on closure activities as we progressively
rehabilitate our operations and progress work at Argyle, Ranger, the
Gove alumina refinery and legacy sites.
| For more information about our closure risks see page 96, and for more on closure provisions and financial statements, see page 163. |
Partnering for the future
We work to solve the challenges of the future to reduce our liabilities
and create better outcomes.
We continued partnering with research and academic organisations,
start-ups and technology solutions providers to
find better ways to close and repurpose our assets. These include
opportunities to reprocess mineral and industrial residues,
selectively recover minerals from mine-influenced waters, augment
our knowledge base for closure, and improve execution and
monitoring of rehabilitation and revegetation.
•We continued our partnership with SiTration, a Massachusetts
Institute of Technology mining start-up, to remediate and unlock
value from mine-influenced waters.
•We have been collaborating with the Australian National
University to develop an advanced filtration system, inspired by
nature, that can recover critical resources such as copper and
lithium from mining wastewater, while simultaneously turning dirty
water into clean water.
•We have been working with university partners in Europe to
recover critical minerals and remediate alkaline seepage from
bauxite residue deposit areas.
•We have been trialling AI-driven workflows and remotely operated
platforms to help us track our progress and predict trajectories
towards rehabilitation and closure completion criteria on mine
sites, combining in situ and remote sensing.
Annual Report on Form 20-F 2025 | 53 | riotinto.com |
Strategic report | Our approach to sustainability
Climate
The commodities we produce are essential to the global energy transition. As demand for these
materials grows, so too does the importance of ensuring that climate-related risks and opportunities
are appropriately addressed across our business.
2025 at a glance
Gross Scope 1 and 2 GHG emissions (adjusted equity basis) 31.5 Mt CO2e (2024: 31.7 Mt CO2e) | Scope 3 GHG emissions 575.7 Mt CO2e (2024: 569.8 Mt CO2e) | |
Electricity from renewable sources 77% (2024: 78%) | Total decarbonisation spend $612m (2024: $589m) |
Delivering on our climate commitments is central to strengthening
resilience and economic performance as we work to become the
most valued metals and mining company. Our Climate Action Plan
(CAP) remains at the heart of this mission, guiding our strategy to
grow production of materials essential for the energy transition,
decarbonise our operations, and support our partners in reducing
value chain emissions. It also reflects our commitment to a just
transition for the communities where we work and to grow
responsibly in a changing world.
Our updated 2025 CAP provides an overview of our climate change
strategy, commitments, targets, and forward-looking plans. It builds
on our 2022 CAP and reflects our commitment to transparency,
disciplined investment and long-term value creation. The 2025 CAP
was approved by shareholders at our 2025 AGM and is integrated
into our 2024 Annual Report. It is also available online at
riotinto.com/climatereporting.
This section of the Form 20-F provides an update on our progress
against the 2025 CAP. It outlines the actions we have taken across our
operations and value chains, the emissions reductions achieved, and
the abatement projects we have committed to.
The climate change targets and commitments published in our 2025
CAP are unchanged. Our ambition is to grow total production by
~3% per year on a copper equivalent basis1, while targeting a 50%
reduction in our net Scope 1 and 2 emissions by 2030 (relative to
2018 levels) and reaching net zero by 2050.
We have updated our capital expenditure guidance to principally
reflect the slower pace of commercially viable technology
development that we, our industry, and the world has experienced in
hard-to-abate sectors. Pre-2030 abatement is therefore expected to
be predominantly delivered through low-capital solutions and proven
technologies.
Our pathway to a 50% reduction in our Scope 1 and 2 emissions by
2030 primarily relies on commercially available solutions such as
renewable energy contracts and is contingent on advancing viable
solutions for our Pacific Aluminium smelters (BSL and Tomago),
where discussions are progressing but are finely balanced.
To support this, we are actively working with the federal and state
Australian governments to secure a long-term, low-carbon future for
the aluminium industry, with discussions ongoing. Any delay in
concluding these discussions or delivering these projects may
impact our ability to meet our 2030 target within this decade.
At the same time, we are collaborating with industry and
government partners on pilot and demonstration technologies
expected to deliver significant emissions reductions beyond 2030,
including ELYSISTM, hydrogen calcination, battery electric haul
trucks and double digestion. These projects are progressing and we
hope they are able to meaningfully contribute to long-term
decarbonisation, though the pace of global technology development
and the need for commercial viability remain essential
considerations. Further details on our abatement pathways and our
full CAP progress report can be found on pages 58-72.
Looking ahead, we will continue working with partners and
governments to advance and deploy transformational technologies
and solutions. Our approach will remain disciplined, balancing
innovation with commercial feasibility, and we will support these
efforts through capital and operational expenditure.
Addressing climate risks and opportunities is critical to maintaining
resilience, creating value, and meeting the expectations of our
stakeholders. We will continue to work towards delivering our 2030
and 2050 emissions targets through commercially viable solutions,
while supporting regional development, a just and orderly transition,
and the production of materials vital for the global energy transition.
Our reporting framework
Under Chapter 2M of the Australian Corporations Act 2001, our
climate reporting complies with the Australian Accounting Standards
Board (AASB)’s S2 Climate-related Disclosures, which is the
mandatory Australian Sustainability Reporting Standard (ASRS). It
also meets UK Listing Rule 6.6.6R and the Climate-related Financial
Disclosure (CFD) Regulations 2022. It is consistent with all 11 Task
Force on Climate-related Financial Disclosures (TCFD)
recommendations and all 8 CFD requirements.
Our reporting is also guided by the Transition Plan Taskforce (TPT)
Framework and the CA100+ Net Zero Company Benchmark and
their Standard for Diversified Mining.
| Our full Directors’ declaration on climate can be found on page 71. |
1.Ambition for compound annual growth rate (CAGR) for copper equivalent production is
from 2024 to 2030F.
Annual Report on Form 20-F 2025 | 54 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Preparing for the impact of climate change
Our portfolio is built around the materials essential for a low-carbon
future. Copper, lithium, aluminium and iron ore are fundamental to
renewable energy infrastructure, electric vehicles, and energy
storage solutions. The energy transition will drive significant demand
for these critical minerals and our ambition remains to grow their
production.
Although climate change presents clear growth opportunities for our
commodities, it also presents physical and transition risks to our
portfolio. The transition to a low-carbon economy impacts the
commodities we produce and how they are processed in our value
chains – particularly for carbon-intensive steel and aluminium.
Carbon pricing mechanisms currently apply to parts of our
operations and to some of our customers. If climate policy ambition
increases globally, this may affect our operational costs, market
dynamics and technology development.
Physical risks such as extreme weather events, rising sea levels and
temperature fluctuations can disrupt our supply chains, damage
infrastructure and impact the availability and cost of raw materials.
We use scenarios to identify and assess risks and opportunities,
including those related to climate change, that may affect our
business in the short, medium and long term. The impact of climate
change is recognised as a material risk within our Group risk
management framework and underpins our overall strategy.
Our CAP is structured to address these risks alongside other
material climate change-related physical and transition risks that
contribute to our material risk. A summary of the material climate
change-related risks and opportunities (CROs) relevant to our
business is set out below.
Effectively managing these CROs is essential to safeguarding our
operational resilience, sustaining stakeholder trust, and positioning
ourselves for long-term success in a low-carbon economy.
Coordinated global action, supported by enabling policy frameworks,
clean energy infrastructure, and technological innovation, is required
to achieve a net zero future. Our climate transition plan is grounded
in a clear understanding of the associated challenges and
opportunities.
While business plays a critical role in managing climate risks,
government support is required to accelerate progress through
targeted policies, streamlined regulations, and incentives that
support early movers and industrial transformation. Measures such
as tax credits, efficient permitting systems, and public-private
research and development partnerships are essential to unlock low-
emissions technologies, particularly in hard-to-abate sectors.
Climate-related risks and opportunities | Actions underway |
Energy transition commodity demand | Customer interest in materials required for the energy transition is accelerating demand for critical minerals such as copper, aluminium and lithium. This presents an opportunity to strengthen our portfolio and capture growth in markets prioritising decarbonisation. | •Grow in production of materials essential for the energy transition | |||||
Global technology development | Low-emissions technologies will support emissions abatement, improve efficiency, and enhance competitiveness. However, uncertainty in deploying breakthrough technologies at scale creates risk, as hard-to-abate emissions could remain exposed to carbon pricing for an extended period. Solutions such as ELYSIS™ and hydrogen-based processing offer potential to address these emissions, but scaling at pace in a cost competitive manner is critical to meet long-term goals. | •Develop low-emissions technologies for minerals and metals processing, refining and smelting •Transition to low-emissions mining vehicles or fuel supply | |||||
Climate policy and regulation | Increasingly stringent and uneven climate change-related policies are driving higher compliance costs and impacting competitiveness, particularly in jurisdictions where carbon pricing mechanisms are in place. Our reliance on fossil fuels exposes us to rising liabilities and operational costs as emissions frameworks tighten. | •Reduce emissions from our own operations •Partner to decarbonise our value chains •Actively engage on climate change and energy policy aligned with net zero ambition •Increase renewable power •Invest in a portfolio of high-integrity voluntary and compliance carbon credits | |||||
Social licence and ability to access ore bodies | Decarbonisation, and meeting stakeholder expectations for a just transition, are increasingly becoming a prerequisite for securing approvals and maintaining stakeholder trust. Failure to act could result in project delays, increased costs and reduced access to resources as expectations for environmental and social performance intensify. | •Community engagement and social investment •Embed just transition principles in our decarbonisation strategy | |||||
Acute and chronic physical risks | Extreme heat: rising temperatures and frequent heatwaves impact worker safety, reduce productivity, increase cooling costs and accelerate infrastructure wear. Extreme rainfall, flooding, sea level rise and cyclones: severe weather events and coastal flooding damage infrastructure, disrupt operations and supply chains and impact closure planning due to erosion, instability and asset inundation. Water scarcity, drought and wildfire: dry conditions reduce water availability for operations, increase competition for resources, raise wildfire risks to infrastructure and safety and impact closure planning. | •Enhance our physical resilience to a changing climate, supporting the viability of our assets, our people and communities |
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Scope 1 and 2 emissions: Reduce emissions from our own operations
We aim to reduce our net Scope 1 and 2 emissions by 50% by 2030 (relative to 2018 levels), and to
reach net zero by 2050.
Our approach to emissions reduction
We are committed to reducing our operational greenhouse gas
emissions in line with the principles of the mitigation hierarchy,
which prioritises direct abatement of emissions over the use
of offsets and other non-direct abatement tools.
We aim to reduce our net Scope 1 and 2 emissions by 50% by 2030,
relative to a 2018 baseline, and limit the contribution of carbon credits to
10% of that baseline. To ensure comparability over time and reflect
genuine progress, we adjust our 2018 baseline to exclude emissions
reductions resulting from divestments and to incorporate emissions
associated with acquisitions.
Our decarbonisation efforts are focused on reducing operational
emissions from electricity use by deploying renewable electricity
solutions, fuel consumption by transitioning mining operations away
from diesel, and reducing process heat emissions in smelting and
refining through energy efficiency improvements and emerging
technologies.
While our asset portfolio has evolved as we shift towards transition
materials, the emissions profile by commodity has remained
relatively stable. Approximately 77% of our Scope 1 and 2 emissions
originate from our Aluminium & Lithium business which is highly
energy-intensive.
Reduction progress and challenges
Our 2025 gross Scope 1 and 2 greenhouse gas emissions (adjusted
equity basis) were 31.5 Mt CO₂e, a reduction of 0.2 Mt CO₂e from
the previous year. Reductions were driven by the increased use of
renewable diesel at Kennecott offset by higher emissions from
increased production, particularly in iron ore and copper.
As of 2025, our gross adjusted Scope 1 and 2 emissions are
14% below 2018 levels. After applying high-integrity offsets,
our net adjusted Scope 1 and 2 emissions are 17% below our
baseline. Overall reductions were primarily achieved through
renewable energy contracts including the use of unbundled
renewable energy certificates in regions where new energy is under
development.
We retired approximately 1.01 million Australian Carbon Credit Units
(ACCUs) to meet our 2024 Safeguard Mechanism compliance
obligations, compared to the anticipated 1.1 million ACCUs.
Final safeguard liability and surrendered ACCUs for financial years
2024-2025 were less than the planned reported values, therefore
the net emissions number and carbon credits have been restated.
For 2025, we expect to retire approximately 1.17 million ACCUs to
meet our compliance obligations. ACCUs retired under the
Safeguard Mechanism are counted toward our net emissions
number after passing our due diligence assessment, including
meeting our high-integrity criteria. This information is available at
riotinto.com/naturesolutions.
Delivering reductions in absolute emissions requires additional
abatement to cover organic growth from production growth and
increasing work indexes. Production growth can come through
brownfield expansions such as in the Pilbara or greenfield
developments like Simandou.
Work index growth, a measure of productivity that is typical for the
mining sector, is a result of our existing mining operations facing longer
haul distances and declining ore grades, requiring additional energy to
achieve the same level of production output.
Delays may arise from engineering and construction challenges, the
pace of technology development, and the need to balance
decarbonisation with community and stakeholder expectations as
well as disciplined capital allocation.
Despite this, we are making measurable progress towards achieving
our targets and investing towards future abatement.
Looking ahead
We recognise that abatement progress will not be linear. The
biggest driver of this is the repowering of the Pacific Aluminium
operations, our largest source of emissions, and planned for the end
of the decade. The schedule is contingent on finalising full
competitive solutions for the smelters. Discussions with state and
federal governments and energy contracting partners are ongoing.
In response to these challenges, we continue to work closely with
partners, governments, and other stakeholders to advance
abatement opportunities.
Our strategy also includes advocating for climate action-aligned
policy, enhancing resilience to physical climate change risks, and
embedding just transition principles in our engagement with
communities and host countries.
See our roadmap to 2030 and 2050 on pages 56 and 57 for
more detail.
2025 gross Scope 1 & 2 GHG emissions
(31.5 Mt CO2e, adjusted equity basis)
Electricity generation and purchase 40% | Anode reductants 21% | Stationary heat and steam 23% | Mobile and transport fuels 13% | Other emissions 3% |
l | Aluminium & Lithium |
l | Copper |
l | Iron Ore |
l | Other |
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Strategic report | Our approach to sustainability | Climate
Our roadmap to 2030
Between now and 2030, the most significant opportunities to reduce
our Scope 1 and 2 emissions are to switch the electricity we
generate and purchase to renewables and to address process heat
emissions from our alumina refineries.
Our 2030 pathway prioritises proven, cost-effective solutions such
as power purchase agreements (PPAs) and other structural
abatement measures, while using unbundled renewable energy
certificates (RECs) as a transitional option in the short term.
Our single largest lever to meet our 2030 target of a 50% reduction
is repowering our Boyne and Tomago aluminium smelters in our
Pacific Aluminium Operations portfolio, which together account for
one quarter of our emissions and are critical to our decarbonisation
pathway.
Beyond smelter repowering, we are progressing other key projects
in our pipeline, including renewable electricity contracts, and
processing heat reduction initiatives such as Queensland Alumina
Limited’s double digestion project, and the use of biocarbon. These
efforts are essential to meeting our 2030 target while
accommodating organic growth, which represents around 1.5 Mt
CO2e against our baseline.
We also expect to use high-quality carbon credits from nature-based
solutions towards our 2030 Scope 1 and 2 net emissions target,
limiting their contribution to 10% of our 2018 baseline emissions.
Our emissions reporting will continue to transparently distinguish
between our gross operational emissions and net emissions for the
Group, and disclose the volume and type of carbon credits retired, in
line with transparency standards.
Further required details on our methodology and approach are set
out in the Climate-related metrics and data section on pages 81-86.
Additional supporting material is available in the Scope 1, 2 and 3
Emissions Calculation and Climate Methodology - 2025 Addendum,
available at riotinto.com/climatereporting (pages 1–3).
Repowering Pacific Aluminium Operations The repowering of Boyne Smelter (BSL) is an opportunity to showcase how a large-scale industrial asset can transition to a renewable energy solution. We have already contracted 2.7 GW of renewable generation and 540 MW of battery storage through power purchase agreements (PPAs), demonstrating our commitment to Boyne Smelter’s future. Currently, all contracted projects remain in project development phases, and we continue to monitor them as they progress towards final investment decisions. Once operational, the contracted projects could supply approximately 80% of BSL’s annual average electricity demand, enabling a projected 70% reduction in the smelter’s Scope 1 and 2 emissions. Securing an economically viable future for BSL still requires contracting additional energy and storage, as well as support from state and federal governments. We are continuing to actively engage with both state and federal governments. Earlier this year, we announced that Tomago faced the risk of closure before 2030 due to challenges in securing a competitive energy solution after its current electricity contract expires. Following constructive engagement, Tomago Aluminium has welcomed a joint announcement by the federal and New South Wales Governments to explore a new pathway for reliable, long- term, and competitively-priced energy beyond 2028, underscoring a shared commitment to maintaining local manufacturing capability in Australia. Repowering is not a simple task. Whilst we are working hard to secure our pathway to repower both smelters before 2030, delivering the solutions successfully requires significant transmission infrastructure, supportive policy frameworks and a competitive renewable energy investment environment. Each of these factors have associated risks which, if realised, may impact our ability to implement the repowering solution, potentially leading to delays in emissions reduction. | ||
Pathway to 2030 target
(Mt CO2e, adjusted equity basis)
l | Pacific Aluminium Operations repowering | l | Renewable Energy | l | Diesel Transition | l | Minerals Processing | l | Alumina Processing | l | Aluminum Anodes | l | Nature-based solutions |
Note: The pathway to 2030 is contingent on individual project investment decisions as well as obtaining necessary government and regulatory approvals.
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Strategic report | Our approach to sustainability | Climate
Our roadmap to 2050
We have a roadmap to achieve net zero operational emissions
by 2050. This is a significant challenge for Rio Tinto, our industry
and the world, reflecting the need to replace long‑established
industrial processes with new technologies that are not yet proven
or available at industrial scale. Addressing this challenge will require
collaboration and supportive policy settings to enable the
development and future deployment of low‑emissions technologies.
This next phase of decarbonisation is expected to rely on more
capital‑intensive technologies with higher marginal abatement costs.
These initiatives are focused on our most challenging sources of
operational emissions, and while outcomes remain uncertain, we
continue to support their development through targeted investment
and collaboration. Many of these technologies remain at pilot or
demonstration stage and are not yet ready for deployment at
industrial scale. As these solutions develop, we will continue to
consider their commercial viability ahead of any future adoption.
We are progressing a range of pilot and demonstration projects,
working in partnership with original equipment manufacturers
(OEMs), governments and research organisations. In aluminium, we
are advancing ELYSIS™, a breakthrough technology designed to
eliminate all direct greenhouse gas emissions from the smelting
process. In alumina refining, we are piloting hydrogen‑based
process heat through the Yarwun Hydrogen Calcination Pilot in
Queensland. If successful, this could replace natural gas with green
hydrogen. We are also undertaking fleet electrification trials across
parts of our operations.
Our capital allocation and guidance for decarbonisation has been
revised to reflect the technical maturity, feasibility, and progress of
projects to date. Investment continues to prioritise options with a
credible pathway to scale, while supporting targeted pilot and
demonstration activities to develop future abatement solutions.
However, these breakthroughs may not all turn out to be scalable
and competitively deployable. Given the uncertain timing of suitable,
proven and commercial-scale technology, our roadmap to 2050
allows for future opportunities to be defined post-2040.
Group decarbonisation pathway1, 2
(Mt CO2e, adjusted equity basis)
l | Electricity | l | Diesel | l | Processing | l | Land management | l | Nature-based solutions | l | Organic growth without decarbonisation3 |
1.Totals shown represent 2018 baseline emissions, adjusted in 2025 to reflect QAL participation changes due to tolling arrangements (80% to 100%), as well as other equity share
changes and acquisitions.
2.The net zero Pathway is contingent on individual project investment decisions as well as obtaining necessary government and regulatory approvals.
3.Baseline emissions extended post-2040 using assumed asset life extensions.
4.Represents net emissions reduction vs 2018 baseline.
Carbon removals
By 2050, small sources of hard-to-abate emissions may remain, and
we will therefore rely on some carbon removals to achieve net zero.
This may be through natural or technological removals and storage.
In the short to medium term, we are investing in high-integrity
nature-based solutions in the regions where we operate, and will
voluntarily retire carbon credits to complement other decarbonisation
investments. In the medium to long term, technological removals
may offer a more permanent solution to any remaining emissions
from fossil fuel consumption. We are also exploring the potential
of carbon capture and mineralisation technologies.
In early 2025, we signed a partnership agreement with Hydro
(Norway) to identify and evaluate carbon capture technologies
for future implementation in the aluminium smelting process.
Separately, in partnership with Carbfix, we are exploring a pilot
project to capture carbon dioxide (CO₂) from the atmosphere
and convert it to solid minerals before storing it underground at our
ISAL smelter using their technology. The project is in its early stages
and would involve binding up to 200 tonnes of CO₂ over
a 12-month period, with system delivery targeted for early 2027.
If successful, the project could pave the way for further trials to
capture and store emissions from the aluminium plant itself. Carbfix’s
process converts CO₂ into solid minerals in volcanic rock, providing a
safe and permanent storage solution.
This initiative represents an important step toward developing
innovative approaches to reduce emissions and support long-term
climate goals.
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Capital allocation and investment framework
Group capital allocation
In the medium term, we will invest up to $10 billion (in real terms)
annually in sustaining, replacement and growth capital to ensure the
continued supply of materials, including those that are essential to
the energy transition. This investment underpins our commitment to
meeting growing demand for critical resources while maintaining
operational resilience and long-term value creation.
Decarbonisation capital allocation
Our decarbonisation investment is derived from the Group’s capital
allocation framework and aligned to our 2030 Scope 1 and 2
emissions targets.
Decarbonisation investment decisions are made under a dedicated
evaluation framework which considers the impact of the investment
on shareholder value, asset cost base, level of emissions
abatement, maturity of technology and delivery risk, competitiveness
of the investment as per the marginal abatement cost curve
(MACC), external benchmarks, policy context, and alternative
options on the pathway to net zero. Projects are also assessed
against our approach to a just transition, with the impact on
employees, local communities and industry considered. Governance
of decarbonisation investments depends on the nature and size of
the project and is consistent with our broader investment decision-
making approach.
We expect pre-2030 abatement projects predominantly to be
delivered through low-capital solutions and proven technologies,
while post-2030 abatement projects are generally characterised as
high-cost, capital-intensive projects that require technological
breakthroughs.
Our total decarbonisation spend1 for 2025 was $612 million (2024:
$589 million). This included capital expenditure, investments and
carbon credits of $182 million (2024: $283 million), and operational
expenditure of $430 million (2024: $306 million).
Capital and operational expenses: Scope 1 and 2 project
spend and carbon credits
$ million
l | Processing minerals and metals |
l | Renewable electricity |
l | Diesel transition |
l | Nature-based solutions and carbon credits |
l | Other |
Note: The above does not represent total decarbonisation spend, as it reflects only costs
related to Scope 1 and 2 project spend and carbon credits. Team costs, investments and
Scope 3 expenditures are excluded. Additionally, 2024 decarbonisation spend, as
presented in the graph above, has been revised to include additional relevant
decarbonisation‑related costs.
2030 decarbonisation spend and capital guidance
We have a pathway to deliver on our 2030 decarbonisation targets,
supported by low-capital solutions. Our current pipeline indicates
that <10% of our required abatement to 2030 will require capital
expenditure.
Our updated capital expenditure forecast is now $1-2 billion to 2030,
a reduction from the previously issued range of $5–6 billion. This
includes $0.6 billion in the period 2025-2027. The guidance includes
voluntary carbon credits and investment in nature-based solutions
projects but excludes the cost of carbon credits purchased for
compliance purposes.
In addition to leveraging commercially available solutions, the
reduction reflects the slower pace of commercially viable technology
development in the hard-to-abate sector, with low-emissions
technologies globally taking longer to mature than anticipated.
Before large-scale deployment, these solutions must demonstrate
both technical performance and commercial viability. While we have
made progress through trials and development such as
BlueSmelting™, hydrogen calcination, ELYSIS™, Évolys™, and
battery electric haul trucks, current efforts remain focused on
proving feasibility ahead of progressing industrial-scale
implementation.
We will invest wisely when technology is available to support the scale of
our business. As a result, major capital investment initially expected by
2030 for ELYSIS™, alumina process heat electrification, and self-
generated renewable diesel expansion initiatives will be considered
post-2030 when technology is available and can be commercially
deployed. We remain committed to long-term emissions reductions and
supporting solutions which can deliver large-scale, industrial investment
and deployment.
This refined approach supports our near-term targets while
preserving optionality for longer-term technological breakthroughs. It
also aligns with our Group strategy of focused capital deployment –
balancing stakeholder expectations, emissions reduction, capital
efficiency, and commercial viability.
Path to 2030 and beyond
While the feasibility of converting pilot projects in hard-to-abate
sectors to full-scale implementation will need to be considered and
aligned to the strategic needs of the Group, we recognise the
importance of transformational projects and their contribution to
decarbonising our operations. Although certain projects are
generally expected to contribute to post-2030 abatement, research
and development spend continues to be factored into our capital
guidance and we will continue to assess the viability and possibility
of low-emissions technologies.
Our strategy remains focused on delivering a net zero pathway that
manages exposure to volatile fossil fuel prices, supports
long-term energy security, maintains optionality and mitigates the
cost impact of current and potential future carbon pricing.
Decarbonisation through partnerships While our capital allocation framework underpins the decarbonisation of our portfolio, direct capital expenditure does not necessarily correlate with emissions abatement. Our strategy leverages partnerships with energy developers, enabling a low-capex pathway through long-term PPAs. These commitments are expected to underwrite up to $8.5 billion in competitive greenfield energy projects, subject to final approvals and successful delivery. Delivering on our decarbonisation ambitions requires more than investment; it requires collaboration with governments, industry bodies and policy makers to ensure enabling pathways are available. A key example is repowering our Pacific Aluminium Operations, where securing a commercially viable future for BSL still requires support from state and federal governments. We are continuing to actively engage with both, including on initiatives such as the A$2 billion Green Aluminium Production Credit scheme announced in January 2025. | ||
1.Decarbonisation spend refers to the total cost of delivering our global decarbonisation
projects, nature-based solutions, and select Scope 3 activities. Expenditure must be incurred
for decarbonisation purposes and can be either capital or operating in nature, based on
financial accounting principles (whereas capital expenditure guidance relates to capital
investment only). It includes costs related to the purchase of offsets, renewable energy
certificates, decarbonisation team costs and external decarbonisation investments.
Decarbonisation spend forms a key component of our strategy for managing climate change-
related transition risks and opportunities.
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2025 Climate Action Plan update
We continue to implement our CAP, progressing toward our 2030 target
and 2050 net-zero ambition across our operations.
This section provides an overview of 3 key areas: our achievements to
date, the challenges we face, and our path forward as we continue to
accelerate decarbonisation across our portfolio.
Our Global Decarbonisation Programs (GDPs) target all sources of
carbon emissions in our business.
These programs are complemented by investment in nature-based
solutions and the purchase of high-quality carbon credits.
We recognise that technical challenges, infrastructure constraints,
and the need to balance ambition with transitioning in a fair and
equitable way may cause delays. Success also depends on
supportive policy and regulatory frameworks that accelerate
progress toward shared net zero goals. Trials of low-emissions
technologies are complex and costly, and scaling them requires
incentives, streamlined systems, and collaboration with
governments, technology partners and OEMs.
While the journey presents challenges, each step provides valuable
lessons that strengthen our approach. We continue to apply these
learnings across our portfolio and remain focused on reducing
emissions, creating value, and delivering regional benefits –
ensuring our transition supports strong, resilient communities.
2025 performance and key achievements
Jinbi PPA: An agreement to secure energy from a 75 MW solar
farm, being developed by Yindjibarndi Energy Corporation, through
the Jinbi PPA, has now been finalised. With first power expected in
2028, this project represents a new way of working for our Pilbara
grid and is a landmark partnership with Traditional Owners. Located
on a greenfield site within Yindjibarndi Native Title Determination
Areas, the project includes a 75 MW solar array with the potential to
incorporate battery energy storage systems (BESS). Subject to state
agreement and joint venture partner approvals, Jinbi will connect
directly to our existing transmission infrastructure, providing
renewable power to support our operations. This is an important
step toward integrating large-scale renewables into our network and
strengthening relationships with communities.
BSL repowering: We have continued the progress of procuring
renewable energy and storage projects to supply power to BSL
beyond 2029. Finalisation of the repowering solution requires further
renewable energy and storage procurement, agreement with BSL
joint venture participants as to the future operating arrangements,
and conclusion of support arrangements with the Queensland and
Australian Governments.
In February 2025, we executed 2 hybrid services agreements with Edify
Energy for the Smoky Creek and Guthrie’s Gap Solar Power Stations.
Together, these will form a 600 MW solar farm paired with a 2,400 MWh
BESS. Under the agreements, we will purchase 90% of the electricity
and battery storage capacity generated by the projects over a 20-year
term. Combined with the 2.2 GW of renewable energy PPAs announced
in 2024, we have contracted a total of 2.7 GW of future renewable
energy capacity in Queensland. Currently, all contracted projects remain
in project feasibility study phases, and we continue to monitor them as
they progress towards final investment decisions and financial close.
There are risks to project schedule for some projects in the renewables
portfolio, which could have implications for our ability to achieve our
repowering objectives ahead of 2030. Once operational, the contracted
projects could supply approximately 80% of BSL’s annual average
electricity demand, enabling a projected 70% reduction in BSL’s Scope
1 and 2 emissions.
Following the announcement of initial support arrangements with the
Queensland Government in 2024, and the Australian Government’s
announcement of the Green Aluminium Production Credit scheme,
we have continued to work collaboratively with the Queensland and
Australian Governments to realise and conclude these support
arrangements, where discussions are progressing but are finely
balanced.
Tomago repowering: In December 2025 we announced that Tomago
was engaging with the federal and New South Wales governments to
support the provision of an internationally competitive energy supply for
the smelter. The details of these arrangements remain under
consideration and will be finalised if and when binding agreements are
executed. The ultimate implications for the smelter, including the timing
of any transition, its future emissions profile and the ability to achieve our
PacOps repowering objectives ahead of 2030 remain subject to these
discussions.
Oyu Tolgoi battery swap: We started our first trial of battery swap
electric haul trucks in surface mining at the Oyu Tolgoi copper mine
in Mongolia, in partnership with China’s State Power Investment
Corporation (SPIC) Qiyuan. The trial includes eight 91-tonne trucks
supported by 13 high-capacity 800 kWh batteries, a battery
swapping station, static charger and charging infrastructure.
Following successful Factory Acceptance Testing and
commissioning in October, the trucks will now be used for tailings
storage facility construction and topsoil transportation tasks,
providing us with hands-on experience operating and maintaining a
complete battery electric truck and swap charging system. This
marks a significant step in enabling a reduction in emissions from
haulage, one of Rio Tinto’s largest sources of Scope 1 and 2
emissions, while gaining operational insights into battery electric
systems. The swap technology enables battery replacement in
under 7 minutes, minimising downtime and enhancing efficiency.
The trial will run through 2026 and inform broader adoption across
our global fleet, particularly among the 100 small- to medium-class
haul trucks (100-200 tonne payload).
Évolys™: We completed the construction and commissioning of
Évolys™, our joint venture with Aymium to produce biocarbon from
biomass residues. The project will assist in reducing emissions in
ilmenite smelting by replacing anthracite with a sustainable
alternative. Operational readiness activities are in progress and the
site is now prepared for full-scale production. Évolys™ strengthens
our ability to decarbonise critical minerals processing and
demonstrates how innovation and partnerships can deliver low-
carbon solutions for hard-to-abate processes. The focus is now on
diversifying biocarbon customers to unlock potential development
for expansion.
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Yarwun Hydrogen Calcination: Construction and
commissioning of the Yarwun Hydrogen Calcination
Pilot have now commenced, marking an important
milestone in our efforts to decarbonise alumina
refining. Through our partnership with Sumitomo
Corporation and the Australian Government
(through the Australian Renewable Energy Agency
(ARENA), and Central Queensland Hydrogen hub),
we have constructed a 2.5 MW electrolyser and
have retrofitted one of Yarwun’s 4 calciners to
operate with a hydrogen burner. The pilot is
demonstrating the viability of using hydrogen in the
calcination process and is an important step toward
reducing emissions in one of the most energy-
intensive stages of alumina production. Commercial
deployment at scale will depend on the availability
of low-cost renewable hydrogen. If successful, this
project could pave the way for broader global
adoption of hydrogen-based calcination technology.
Continued progress towards our 2030 targets
Renewables: Meaningful progress was achieved across our
renewable energy portfolio in 2025. At Richards Bay Minerals
(RBM), construction commenced in July on the 230 MW Overberg
wind project. The 130 MW Bolobedu solar project was completed in
October and is now pending grid connection. In the US, commercial
operations were achieved in October for the 78.5 MW Monte Cristo
wind project, alongside the execution of an additional 179 MW wind
PPA. At Kennecott, the second phase of solar development, adding
25 MW of capacity, was completed, with commercial operations
commencing in December.
We continue to advance structural solutions for long-term emissions
reduction at other key sites. At Simandou, we are evaluating PPA
and financing options as alternatives to direct capital investment,
which will apply to solar installations at multiple scales, including
rooftop systems, mine-site arrays, and a larger port-based facility.
At Winu, wind resource monitoring is underway following the
installation of a meteorological mast in September, supporting the
development of one of Australia’s largest off-grid hybrid renewable
power solutions. The development remains subject to full Winu
project approval (project currently in feasibility stage). Preparations
for a PPA are progressing to support the Kangwinan mine expansion
at Amrun, currently in feasibility stage. At Oyu Tolgoi, a 20-year PPA
for a 150 MW wind farm and a 100 MWh BESS is advancing, with
the project working through permitting and approval of the
construction licence in late 2025.
Anodes: ELYSIS™ is a breakthrough aluminium smelting
technology that eliminates carbon anodes and removes direct
greenhouse gas emissions from the smelting process. While scaling
this innovation presents typical challenges for major technology
changes, we continue to make progress with our partners.
The ELYSIS™ joint venture (JV) achieved a key milestone with
more than one year of inert anode life in testing at the 100 kA cell in
Arvida, which included production of aluminium at P1020 standards
and validating its industrial performance. In late 2025, the ELYSIS™
JV started up the first industrial-scale 450 kA cell at Alma,
representing a major milestone in the company’s transition from
research and development to full-scale commercialisation.
In parallel, we are progressing the implementation of the first
ELYSIS™ demonstration plant by deploying an initial 7 new 100 kA
cells in a separate site under construction at Arvida. First hot metal
is expected in 2027.
We are also working with ELYSIS™ and Alcoa on different options
and partnerships to de-risk the electrode supply chain and support
the deployment of inert anode solutions in the future.
While progress on the ELYSIS™ demonstration plant continues to
be made, the commercial viability of the project will still need to be
assessed prior to deploying the technology at industrial scale.
Yarwun TES: Work continues on our Thermal Energy Storage (TES)
project at Yarwun which remains on schedule. The pre-feasibility study
(PFS) for the industrial demonstration project to produce electric steam
was completed in 2025 and the project is progressing towards
feasibility study (FS) in 2026. This initiative will enable us to store
excess renewable energy as heat and reduce reliance on coal,
lowering emissions and improving energy resilience at Yarwun.
Following successful initial site trials with biopellets and a request-
for-proposals market process, we are progressing several
partnership opportunities for biopellet offtake agreements for both
Yarwun and QAL.
QAL double digestion: The feasibility study is now well underway
and progressing to schedule. A trial utilising a new heat exchanger
has seen promising initial results. Innovative design options to
simplify and optimise the flowsheet have also been identified. The
order of magnitude study, to recover waste heat from the process, is
in progress and options are being explored to upgrade this.
The project is expected to commence pre-feasibility in 2026.
Nature-based solutions: A vital part of our climate strategy, nature-
based solutions complement structural abatement while delivering
benefits for people, nature and climate. These projects help protect
and restore ecosystems, support sustainable livelihoods and
generate high-quality carbon credits, reinforcing our commitment to
a just and inclusive transition.
In 2025, we made strong progress on nature-based solutions,
having enabled more than 500,000 hectares of high-integrity
projects. Key achievements include surpassing cookstove
distribution targets in Madagascar, advancing clean cooking and
reforestation initiatives in Guinea, and progressing grasslands
management scale-up in Argentina and a sustainable landscapes
project in South Africa. We also expanded our environmental
planting (EP) ACCU pipeline with support for new projects in
Western Australia and a foundation offtaker role in the new Meldora
platform in Central Queensland. The Cooplacurripa EP project in
New South Wales, developed by the Silva Carbon Origination Fund
in which we are a foundation investor, was registered as the first
ever project under Australia’s Nature Repair Market.
In Q4, we launched a review of our portfolio to reflect our changing
operating context and the Rio Tinto Iron & Titanium strategic review,
which encompasses operations in Madagascar and South Africa. The
outcome of the strategic review will be a determining factor in our future
investment decisions in these regions. We continue to apply our due
diligence process to all projects. For more information see
riotinto.com/naturesolutions
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Challenges faced and lessons learnt
BlueSmelting™: The BlueSmelting™ demonstration plant was developed to test the viability of pre-reduction technology aimed at reducing carbon
emissions from ilmenite processing. The project forms part of our broader efforts to explore lower-carbon pathways for titanium dioxide production.
The trial program continued into 2025 and is scheduled to phase out by mid-2026, subsequent to a final iron metallisation assessment. The program
provided valuable technical insights, confirming the compatibility with existing industrial processes and delivering improvements in furnace
productivity, efficiency and operational flexibility. The trial has shown that industrial-scale deployment would require significant capital investment that
is not yet commercially viable. We will continue monitoring conditions that could support broader deployment over time.
Battery electric haul truck (BEHT) trials: We began a BEHT trial in
2025 in collaboration with BHP, working with haul truck manufacturer
Caterpillar, and a similar trial is anticipated with Komatsu, in the
Pilbara region.
The trials are focused on collecting data on battery performance,
charging systems, and overall productivity in Pilbara conditions.
The BEHT and associated equipment trials are a technically complex
program, involving site integration and ensuring safety and compliance
with regulatory requirements for battery electric equipment in Australia.
Caterpillar and Komatsu are continuing to adapt their designs to ensure
they are technically, commercially and operationally mature, and the
strong collaboration on technology development and learning continues.
Safe, reliable, and adaptable charging infrastructure is also critical to the
success of this work and is being progressed in parallel.
Caterpillar BEHT trials began in 2025, while Komatsu’s program has
almost reached design maturity and is targeting trial commencement
from 2029. The updated timeframe for trial of Komatsu's BEHT
reflects the importance of technology readiness and Rio Tinto's
increasing threshold for appropriate readiness and testing ahead of
investment approvals.
Pilbara renewables: We continue to pursue solar energy projects to
reduce gas consumption. However, deploying value-accretive
renewables at scale presents significant and complex challenges,
resulting in a slower deployment schedule than expected.
The Gudai Darri Solar PV farm is operating at nameplate capacity,
with the Jinbi Solar Farm expected to start construction in 2026 and
achieve its commercial operating date (COD) in 2028. Karratha solar
farm studies are continuing, some schedule delays have been
experienced as geotechnical and other project factors are evaluated.
These projects represent important steps forward, but the broader
pathway will require careful sequencing and leveraging technology
improvements to enhance value, reduce capital intensity, and ensure a
reliable and safe grid integration. Specifically, grid connection and
commissioning in the Pilbara has become more complex under the
newer staged access/compliance regime, requiring deeper independent
ISO/regulatory scrutiny and multi-party technical due diligence. The
permitting and approvals process requires a rigorous, collaborative and
in-depth engagement, translating into an appropriate timeline to engage
with Traditional Owners and partners to ensure developments are
delivered responsibly.
Our approach prioritises flexibility and risk management while
maintaining the ability to accelerate deployment as conditions evolve.
Self-generated renewable diesel: We have invested in establishing the foundations for our own biofuel supply, beginning with the
early development of our Pongamia program. The pilot project has purchased approximately 2,500 ha of land and completed the first
100,000 plantings of Pongamia across properties in the Burdekin region of Queensland. This marks a key milestone in our research and
development efforts to stimulate Australia’s low-carbon liquid fuel industry. The initiative aims to support a pathway to cost-competitive
production of sustainable fuels.
Future expansion beyond the 2,500 ha remains uncertain due to high commercial costs, the need for strategic partnerships to reduce capital
requirements, and unclear policy settings in Australia. Government support, industry alignment, and shared investment will be critical to
enable any potential scale-up to meet our requirements. This may include value chain partnerships, targeted supply-side incentives,
infrastructure investment and sustainability frameworks.
Action to reduce our emissions
The 3 main areas of our abatement work are: developing renewable electricity solutions at our Pacific Aluminium Operations and other
assets that rely on gas or coal-based power; transitioning away from diesel in trucks, trains and mobile equipment; and tackling hard-to-abate
emissions from processing minerals and metals. Additionally, we are developing and investing in nature-based solutions projects.
Progress in 2025 | Action in 2026 | |
Renewable electricity | ||
Repowering Pacific Aluminium Operations •Executed agreements with Edify Energy for Smoky Creek and Guthrie’s Gap Solar Power Stations (600 MW solar, 2,400 MWh BESS with 90% Rio Tinto offtake). •Progressed further procurement of renewable energy and storage projects. •Progressed engagement with state and federal governments to secure support agreements for BSL. •Announcement from state and federal governments to explore energy pathway for Tomago beyond 2028. | •Complete remaining renewable energy sourcing, support energy projects progression to financial close, and develop market operations capability to support operationalisation at BSL. Finalise support arrangements with State and Federal governments. •Progress QAL options review to repower existing load with renewable energy. •Continue Tomago discussions. |
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Progress in 2025 | Action in 2026 | |
Other renewable electricity developments •Commissioning was successfully completed at Gove (10 MW) in November, while Amrun (22 MW) has experienced some delays and will now achieve commercial operations in 2026. •Construction completed and commercial operations achieved at Kennecott solar phase 2 (25 MW) in December 2025. •Construction completed at QIT Madagascar Minerals (QMM) wind facility (16 MW) with commercial operations expected in 2026. •Construction commenced at Richards Bay Minerals (RBM) Overberg wind PPA (230 MW). •Completed construction at the RBM Bolobedu solar project (130 MW), grid connection now pending. •Executed the Jinbi solar (75 MW) agreement with Yindjibarndi Energy Corporation. •Karratha solar (80 MW) approval deferred to 2026. •Commercial operations achieved for the Monte Cristo VPPA (78.5 MW) wind project with an additional 179 MW wind PPA executed. •Secured 100 MW of renewable energy at Resolution Copper through a Green Tariff agreement with local utility Salt River Project. Delivery scheduled to begin in mid-2028. | •Begin feasibility study to support the construction of a 10 MW onsite solar farm at Simandou. •Execute the 150 MW Oyu Tolgoi wind PPA and a BESS. •Commercial operations set to begin at the 140 MW RBM Khangela wind farm. •Commercial operations set to begin at RBM Bolobedu. •Received notice to proceed for the 56 MW Winu hybrid PPA. •Begin construction on a 179 MW wind VPPA. •Begin construction on the 75 MW Jinbi Solar farm. | |
Diesel transition | ||
•BEHT: In the Pilbara, Caterpillar trials started at Jimblebar. •Oyu Tolgoi: Battery swap truck trial initiated with full system commissioning on site. •Pongamia: Development progressed in Queensland, with the first 100,000 plantings. | •BEHT: Progress Caterpillar trial at Jimblebar (two CAT 793 BEHT), finalise Komatsu BEHT design, validation and commercialisation planning, and collaborate on the broader program activities required to support a pilot commencing from 2029. •Oyu Tolgoi: Full battery equipment and system testing and validation of 8 battery electric trucks, battery swapping station, static charger and associated infrastructure. •Pongamia: Continue initial farm operations, including research and development, and planting across the 2,500 ha properties. | |
Processing minerals and metals | ||
Aluminium anodes •Arvida: Achieved record-breaking longevity for a 100 kA ELYSIS™ cell, while advancing site works, infrastructure and construction for the additional 10 ELYSIS™ cells. •Alma: Launched the industrial-scale (450 kA) ELYSIS™ cell #1. | •Arvida: Continue to operate 100 kA cell. •Arvida: Finalise the implementation of the first 7 cells and begin commissioning and start-up with first hot metal expected in 2027. •Alma: Launch the industrial-scale (450 kA) cell #2 and cell #3. | |
Alumina processing •QAL (double digestion): Feasibility study progressing, heater trial progressing and transport study underway. •Yarwun (hydrogen calcination): Commissioning activities have commenced and will continue through early 2026 with hydrogen calcination trials expected to commence at the start of 2026. •Vaudreuil (electric boiler): Site preparation work has begun. •Vaudreuil (electric calcination): Pilot commissioning and pre-tests are underway. | •QAL (double digestion): Complete feasibility study and commence detailed engineering plan. •Yarwun (hydrogen calcination): Execute trial program. •Yarwun (TES): Complete feasibility study. •Gladstone biofuels: Finalise initial supply contract for supply to begin in 2027/28. •Vaudreuil (electric boiler): Construction will continue through 2026 with commissioning planned for 2027. •Vaudreuil (electric calcination): Preparatory work for the industrial-scale demonstration, following piloting results, is scheduled to begin. | |
Minerals processing •Évolys™: Completed construction and commissioning, with readiness activities in progress. •BlueSmelting™: Conversion of the plant to enable iron metallisation is complete, with commissioning activities well advanced. •Iron Ore Company of Canada (IOC) electric boiler: Installation and commissioning complete; 40 MW unit now operational. | •Évolys™: Industrial ramp-up to maximise biocarbon replacement at Rio Tinto Iron and Titanium Quebec Operations/RBM and developing alternate customers. •Évolys™: Develop phase 2 business case to lower production costs and expand the product portfolio. •BlueSmelting™: Complete the final iron metallisation assessment and prepare the phase-out of BlueSmelting™. | |
Nature-based solutions | ||
•Clean cooking pilots listed on registries: 120,000 cookstoves distributed in Madagascar. User Acceptance Testing completed in Guinea. •Reforestation pilots: initiated investment in 2 Guinea projects. Pilot in Madagascar completed. •Guinea agroforestry project: feasibility study completed. •Verified Emissions Reduction Purchase Agreement (VERPA) signed for Makira Natural Park REDD+1 Project in Madagascar. •South Africa feasibility study completed. Project Design Document finalised for KwaZulu-Natal (KZN) Sustainable Landscapes Program. Enabled stakeholder engagement for expanded World Heritage site in KZN. Funded initiation of co-management agreement between Ezemvelo KZN Wildlife and Peace Parks Foundation. •Argentina sustainable grasslands project: offtake agreement secured, complementing 2025 investment in conservation and soil carbon research. •Australia environmental planting ACCU pipeline: market review completed and new offtake agreements secured. | •Conclusion of Madagascar clean cooking pilot2. •Distribute cookstoves for Guinea clean cooking pilot. •Progress Guinea blue carbon mangrove protection and restoration project. •Progress Guinea community reforestation project. •Scale-up Australia environmental planting projects. |
1.United Nations Climate Change: ‘REDD’ stands for ‘Reducing emissions from deforestation and forest degradation in developing countries. The ‘+’ stands for additional forest-related activities that
protect the climate, namely sustainable management of forests and the conservation and enhancement of forest carbon stocks.
2.Further investment decision subject to outcome of RTIT strategic review.
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Operational decarbonisation project tracker
Milestones post-2025 are indicative, based on current goals and plans, subject to investment decisions and so they may change. There is increasing uncertainty further into the future.
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Scope 3 emissions: Partner to decarbonise our value chains
In 2025, our Scope 3 emissions were 575.7 Mt CO2e (equity basis),
approximately 18 times higher than our Scope 1 and 2 emissions.
This is higher by 5.9 Mt CO2e compared to a restated 2024 number
of 569.8 Mt CO2e (equity basis).
The majority of these emissions (95%) stem from our customers
processing our products, particularly iron ore (69%) and bauxite and
alumina (23%).
Emissions related to iron ore processing were 398.5 Mt CO2e in
2025, compared to 395.9 Mt CO2e in 2024. Emissions related to
bauxite and alumina processing increased from 134 Mt CO2e in
2024 to 135.2 Mt CO2e in 2025 due to increases in bauxite and
alumina sales.
Many of our customers have set public targets for their Scope 1 and
2 emissions (our Scope 3). About 54%1 of our steel-producing
customers by direct iron ore sales volume have set public targets to
reach net zero or carbon neutrality by 2050. Meanwhile, nearly
40%1 of our bauxite sales are to customers with net zero emissions
targets, though only 22% of customers are aiming for net zero
by 2050.
As things stand today, our analysis of our customers’ targets and
their governments’ commitments to reduce their emissions shows a
trajectory for those processing emissions to approach net zero or
carbon neutrality by around 2060. This is driven in large part by
China (80% of Scope 3 emissions), which has pledged to be carbon
neutral by 2060. Approximately 20% of our emissions come from
countries such as South Korea and Japan, which have pledged to
be net zero by 2050.
We are committed to partnering with customers and suppliers to
help them achieve their targets earlier, reaching net zero by 2050.
We have not set an overall Scope 3 emissions target due to the
limited direct influence we have on the decarbonisation activities of
our customers, required maturation of technology adoption and grid
decarbonisation in customers’ host countries.
Instead, we are holding ourselves accountable on real and
measurable commitments in the near term, which will ensure
technologies are available to accelerate the longer-term transition.
We have set near-term, action-oriented, and measurable targets in
the areas where we believe we have agency and can support
meaningful change. We take accountability and track our progress
on individual projects and partnerships, and stay deeply connected
across the value chain, ensuring we are up to date on developments
and maintaining ambitious decarbonisation goals.
1.This figure is dependent on our sales mix, so is not comparable year-on-year.
2025 Scope 3 emissions
575.7 Mt CO2e
(2024: 569.8 Mt CO2e)
0.4% – DRI |
7% – Coke production |
9% – Steel converter |
20% – Sinter plant |
63% – Blast furnace |
398.5 | 135.2 | 12. 2 | 10 | 19.1 | 0.7 |
Other customer processing | 57% – Chartered vessels | |
44% – Raw materials / high emission goods | ||
67% – Smelting electricity |
2% – Refining electricity |
18% – Smelting anodes & other |
13% – Refining process heat |
Iron Ore | Bauxite & Alumina processing | ||||
Other customer processing | |||||
Marine & logistics | |||||
Procurement | |||||
Business travel & waste | |||||
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Scope 3 progress
We continue advancing our climate commitments by working closely
with customers, suppliers and partners to decarbonise the steel,
aluminium, shipping and procurement value chains. While
challenges remain, we are making tangible progress and building
the foundations for long-term transformation.
Steel value chain
Steel decarbonisation targets •Support our customers’ ambitions to reduce their carbon emissions from blast furnace–basic oxygen furnace (BF- BOF) process by 20–30% by 2035.¹ •Reduce our net Scope 3 emissions from IOC high-grade ores by 50% by 2035, relative to 2022.² •Commission a shaft furnace – direct reduced iron (DRI) + electric smelting furnace (ESF) pilot plant by 2028 (revised from 2026), in partnership with a steelmaker. •Finalise study on a beneficiation pilot plant in the Pilbara by 2026. | ||
The steel industry overall accounts for approximately 8% of global
carbon emissions. As one of the world’s largest iron ore producers,
we have a key role to play in decarbonising the steel value chain. In
2025, we spent $65m on steel decarbonisation initiatives.
Our approach is defined by 3 pathways:
1. Existing pathways (blast furnace optimisation): We’re working
with our customers to help reduce their carbon emissions from the
current blast furnace. Examples of our initiatives include optimising
blast furnace burden (eg using more pellets and lump), and carbon
capture, utilisation and storage.
2. Emerging pathways: We’re supporting early development of
emerging low-carbon DRI projects that use high-grade iron ores,
such as those we produce from IOC and Simandou.
3. Future pathways: While low-carbon DRI technology is established
for high grade ores, there is currently no economic low-carbon iron and
steelmaking technology for low- and medium-grade ores, such as those
from the Pilbara. We are supporting the development of technology for
these ores, with a focus on:
•beneficiating our ores to remove impurities before ironmaking
•pelletising our ores to improve their suitability to proven shaft
furnace technology
•developing fines-based fluid bed technology, which may be a
suitable process for our fines products, removing the need to
pelletise or sinter
•developing ESF technology, which is required for all pathways for
low-medium grade ores as a second stage of ironmaking.
In 2025, the NeoSmeltTM ESF pilot entered feasibility stage, supported by
~A$19.8 million in federal funding from the Australian Government.
The NeoSmelt joint venture, which was initially a partnership between
Rio Tinto, BlueScope and BHP, was also joined by Woodside and Mitsui
Iron Ore Development. Given the research and development nature of
the project, the exact timeline is uncertain, however, commissioning of
the shaft furnace and ESF is expected to begin in 2028.
The BioIronTM pilot plant work, and associated commissioning target,
has been paused due to technical and design challenges often
associated with early-stage innovation. We remain committed to the
long-term potential of BioIronTM technology, with research and
development continuing in partnership with the University of Nottingham
and sustainable technology company, Metso. Significant progress has
been made in understanding how materials perform under high
temperatures in the BioIronTM microwave furnace. However, the current
furnace design requires additional development to minimise technical
risks and optimise performance. This pause will allow the team to
address these challenges and refine our approach.
1.The support will be in the form of direct technical support and co-developing technology
solutions.
2.Subject to funding approval and technical feasibility.
Steel decarbonisation projects tracker
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Aluminium value chain
Alumina decarbonisation targets •In 2025, partner with at least 2 bauxite customers with the goal of improving energy efficiency and reducing emissions, focusing on digestion improvement technology; controlling or removing organic compounds from the refining process; and technical options to reduce moisture content in our bauxite. | ||
Energy efficiency is a key priority for our customers due to its direct
impact on emissions. In the alumina refining process, steam is used
to heat the bauxite slurry in the digestion unit to high temperatures,
dissolving the alumina content. This digestion process is a crucial
aspect in determining the overall energy efficiency of the refinery.
Organic control is equally important, particularly when processing
Australian bauxites. Effective management supports consistent
production rates and ensures the delivery of alumina quality aligned
with customer requirements.
Across the aluminium value chain, over 85% of our 135.2 Mt CO₂e
Scope 3 emissions originate from the electricity- and emissions-
intensive smelting process. Most of our product is processed in
China, where coal-fired refining and smelting are prevalent and
our ability to influence the energy mix in these regions is limited.
Additionally, some bauxite sales are made through intermediaries,
which restricts our direct engagement with end customers and limits
our influence on decarbonisation initiatives at those refineries.
Despite these challenges, we maintain regular dialogue with our
customers to understand their sustainability priorities and explore
collaborative opportunities that align with our capabilities. In the
short to medium term, our focus is on supporting improvements in
the alumina refining process, enhancing energy efficiency and
optimising the use of our bauxite.¹
In 2025, we met our partnership targets and strengthened our
partnerships with bauxite customers to drive refining efficiency and
reduce emissions. A milestone was the signing of a Memorandum of
Understanding with a strategic partner, establishing a platform for
regular technical exchanges and collaboration across the aluminium
sector. Through this partnership, we aim to optimise bauxite
processing and explore decarbonisation technologies and bauxite
residue reuse options.
We also supported several customer refineries in the design,
construction, and commissioning of processing technologies. This
included the delivery of a new low temperature digestion unit at one
operation and the advancement of sweetening concept at another
site scheduled for commissioning in 2026. In parallel, multiple
refineries are transitioning to a co-precipitation technology with our
technical support, a step change that improves the product quality
and organic management.
Together, these initiatives are enabling more efficient processing of our
bauxite, lowering energy intensity, and supporting our customers’
decarbonisation pathways across the alumina refining process.
Shipping
Shipping decarbonisation targets •Reach net zero shipping by 2050 across our shipping footprint. •Fulfil First Movers Coalition (FMC) pledge of 10% of time- chartered fleet to be running on low-carbon fuels2 by 2030 and progressing to 100% of time-chartered fleet by 20403. •Reduce emissions intensity by 40% by 2025 (5 years ahead of the target set by the International Maritime Organization (IMO)), and deliver 50% intensity reduction by 2030.4 | ||
Our Scope 3 emissions from shipping and logistics are 10 Mt CO2e.
Of this, 5.7 Mt CO2e (57%) is generated by our chartered fleet, and
around 2.6 Mt CO2e (26%) comes from shipping our products,
where freight has been arranged by the purchaser.
The remaining 1.7 Mt CO2e (17%) comprises other logistics
elements such as truck, rail, container movement and other logistics
related emissions. An additional 0.4 Mt CO2e of Scope 1 shipping-
related emissions is attributed to the vessels we own.
To reduce the emissions intensity of our shipping activities, we focus
on energy efficiency improvements and switching to lower-carbon
fuels. Against the IMO’s 2008 baseline year for emissions intensity,
our 2025 performance showed a 39% improvement. This result falls
1% short of our ambition to deliver a 40% reduction by 2025, largely
due to weather impacts in the Pilbara region. We continue to
progress towards our 2030 target of a 50% reduction in emissions
intensity.
We continue to implement energy efficiency measures, such as the
incorporation of larger vessels, technical and design modifications,
and speed and route optimisation. Energy-saving device
installations have progressed on our chartered vessels, building on
the energy efficiency program on our owned vessels.
We also continue to progress the business case for lower-carbon
fuels, including through industry initiatives such as the Western
Australia-East Asia Green Corridor, which in 2025 saw the launch of
the Pilbara Clean Fuel Bunkering Hub. Regulatory frameworks
remain a critical enabler for economic fuel switching pathways, and
we continue to monitor the IMO’s efforts to create an equitable
decarbonisation pathway at a global level.
Procurement
Procurement decarbonisation targets •Engage with 50 of our highest-emitting suppliers on emissions reduction, focused on driving supplier accountability for setting and delivering against their decarbonisation targets. •Implement decarbonisation evaluation criteria for new sourcing in high-emitting categories5. | ||
Upstream Scope 3 emissions from procurement were 19.1 Mt CO₂e
(excluding business travel) in 2025, split between purchased fuels,
goods and services. The goods and services are further divided
between emissions related to operational expenditure purchases
(such as caustic, explosives, coke, pitch) of 12.8 Mt CO₂e, and
capital expenditure purchases (such as machinery, electrical
equipment) of 1.8 Mt CO₂e. Due to the nature of our businesses,
many of our purchased inputs are from hard-to-abate sectors, such
as caustic, coke, pitch and steel.
We work with more than 20,000 suppliers across complex
multi-layered supply chains. To address upstream emissions,
we are taking a systematic approach, prioritising engagement with
50 of our highest-emitting suppliers. The prioritisation of suppliers
and categories followed the assessment of the sources of emissions
across the Global Procurement portfolio and available abatement
pathways.
In 2025, we advanced supplier engagement. Decarbonisation
criteria are embedded in our evaluation processes for new sourcing
in high-emission categories, ensuring climate considerations are
present in procurement decisions. This systematic approach is
helping to drive accountability and align our supply chain with our
net zero ambitions.
1.This is mostly via sweetening and improved digestion. In the longer term, this will be
mostly through using renewable energy for the heat source, via hydrogen calcination
and electric boilers.
2.Although the FMC currently employs the terminology “zero-emission” rather than “low-
carbon”, with a guiding principle of delivering a well-to-wake greenhouse gas emission
reduction of 80% or more compared to fuel oil, we have updated our terminology to
reflect that these fuels are unlikely to be fully net zero emissions on
a life cycle basis over the coming years. While we endeavour to achieve the guiding
principle proposed by the FMC, we may initially consider fuel pathways with a lesser
emission reduction with consideration to factors such as supply, availability of
technology and regulatory developments from the IMO.
3.Subject to the availability of technology, supply, safety standards and a reasonable price
premium.
4.Relative to IMO’s 2008 baseline.
5.High emitting categories: Raw materials, explosives, global equipment.
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Progress in 2025 | Action in 2026 |
Scope 3 emissions goals and customer engagement We are committed to partnering with customers and suppliers to help achieve their targets earlier, reaching net zero by 2050. | |
Steel value chain | |
Existing pathways | |
•Produced up to 50% Pilbara blend fines based pellets and completed successful industrial scale blast furnace trials with customers. •Completed construction of a large-scale (3,000 m3/hr) blast furnace carbon capture and utilisation (CCU) facility with Shougang. | •Continue Rio Tinto iron ore pelletising trials with additional steelmaking customers. •Commission the large-scale CCU facility with Shougang. •Finalise lump usage guidelines for broader industry sharing. •Continue test work with universities and steel mills to reduce carbon emission through optimising blast furnace burden structure. •Conduct research and development on the carbon hydrogen recycle furnace process. |
Emerging pathways | |
•Commenced early-stage customer engagement for GravitHy’s 2 million tonnes per year ultra- low carbon hot briquetted iron (HBI). | •Continue support for GravitHy feasibility study, with target to operationalise by 2029. |
Future pathways | |
•Completed beneficiation pilot plant trials, successfully producing >30 kt of high-grade material using Pilbara ores. •Conducted Baowu shaft furnace direct reduction trials using Pilbara ore-based pellets. •Paused construction of the BioIronTM pilot plant, due to technical and design challenges. •Entered Joint Development Agreement with Calix to support construction of Calix’s Zero Emissions Steel Technology (ZestyTM) demonstration plant in WA which could enable Pilbara iron ores to be used in producing steel with lower emissions. •Entered consortium with Primetals and voestalpine to develop an industrial-scale prototype plant of Hy4Smelt, integrating fines-based fluid bed technology (HyFORTM) with an electric smelting furnace (ESF). •Completed NeoSmeltTM pre-feasibility study and commenced feasibility study with support from the federal government. | •Finalise desktop study on a beneficiation pilot plant in the Pilbara. •Conduct further shaft furnace trials with Rio Tinto Iron Ore, including pellets and lump. •Continue BioIronTM technology development to minimise technical risks and optimise performance. •Continue support for Calix’s demonstration plant towards FID. •Continue Hy4Smelt construction with target to operationalise by 2027. •Complete ESF trials for PBF based DRI with Baowu. •Complete NeoSmeltTM feasibility study and target FID. |
Aluminium value chain | |
•Planning continues for digestion technology upgrades, with cost estimates underway for key equipment. •Commissioned a new low temperature digestion unit. •Work is progressing with customers on precipitation system upgrades, with commissioning expected by 2026. •The bauxite moisture reduction project was discontinued due to resource and capital constraints. | •QAL double digestion process to advance to detailed engineering phase. •Sweetening process to be commissioned for 2 customer refineries. •Co-precipitation upgrade to be commissioned at 2 sites. |
Shipping | |
•Energy-saving devices have been installed on some of our chartered vessels, extending beyond our owned fleet. •Progressed the business case for lower-carbon fuels, including through industry initiatives such as the Western Australia-East Asia Green Corridor, which in 2025 saw the launch of the Pilbara Clean Fuel Bunkering Hub. | •Advance energy efficiency program, particularly on chartered vessels. •Sustain engagement in industry initiatives to explore opportunities for deployment of low- carbon fuel while monitoring regulatory developments. |
Procurement | |
•High-emissions categories are progressing to complete supplier engagements with 50 of the highest-emitting suppliers. •Decarbonisation criteria are embedded in sourcing processes for high-emissions categories. | •Ensure decarbonisation criteria and engagements remain embedded within standard procurement processes for high-emissions suppliers and categories. |
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Physical climate risk and resilience
Understanding and managing physical climate risk is essential to the
resilience and long-term performance of our business. As climate-
related hazards, such as extreme weather, flooding, and
temperature variability, become more frequent and severe, they
pose direct risks to our operations, infrastructure, workforce and
surrounding communities. These risks can disrupt production,
damage assets, affect supply chains, and impact the health and
safety of our people.
To address this, we have embedded climate risk management
across the asset lifecycle, from project initiation to closure planning,
ensuring our operations remain robust, adaptive, and responsive to
a changing climate.
Our climate risk management approach is built around 4 pillars,
supported by operational standards, resilience frameworks, and
specialised programs:
1. Weather/climate analytics and insights
We apply advanced weather and climate data to support operational
planning, emergency response, and long-term resilience:
•Short-term and severe weather forecasts inform day-to-day
operations.
•Climate outlooks guide mine planning, particularly around rainfall
and cyclone patterns.
•Catastrophe modelling estimates financial impacts of
extreme events.
•Long-term climate projections (CMIP5 and CMIP6) support risk
assessments and planning.
Climate projections are available for all assets, including
non-managed sites, covering over 60 variables and multiple
emissions scenarios. Flood risk modelling has been completed
for 100% of assets across present-day, medium, and
long-term horizons.
2. Physical risk identification and assessment
All sites within our portfolio are exposed to varying degrees of
physical climate risk. As climate conditions continue to evolve, these
exposures may shift over time, potentially impacting asset resilience
and overall performance.
Our approach to quantifying and assessing physical risk covers
individual assets (bottom-up) and Group level (top-down). We first
identify climate risks and opportunities across varying time horizons
and emission scenarios. Next, we evaluate their potential financial
and non-financial consequences and likelihood. Then we prioritise
these risks by materiality for effective risk management and
appropriate resource allocation. This process is integrated within the
Rio Tinto Risk Management Information System.
The scope of our assessments includes our operations and the
environments in which we operate, our people, the communities
who host us and our supply chain.
See pages 78-80 for further details on our approach to physical
climate risk and resilience, as well as our modelling of financial
exposure to physical climate risk.
3. Resilience planning and adaptation
Our resilience planning identifies the most appropriate measures to
manage climate risks and adapt to them. We comprehensively
evaluate an investment decision before funding is approved. This
includes prioritising projects and engaging key stakeholders to seek
alignment on the investment and implementation of adaptation
measures.
4. Monitoring and evaluation
We actively and regularly monitor risks, with clearly defined roles
and responsibilities. We continually evaluate the latest generation of
climate change data and emerging technologies to assess the risk
profile of our assets and infrastructure over time. Assessment
processes are revisited where we have identified a material change
to the economic, social, environmental or physical context of the
risk.
From risk to resilience: applying our framework in
practice
Our most material physical risks have been identified at a Group
level and are described in detail on page 78 along with the specific
actions we are taking to build resilience and reduce exposure.
These actions include infrastructure improvements, operational
adaptations, and enhanced contingency planning.
Investments to support asset resilience to physical climate risks are
considered in both sustaining and development expenditure. When
undertaken during the initial design and development phases of an
asset or site, these investments are classified as development capital.
Similarly, expenditure aimed at preserving the original capacity and
functionality of existing assets is treated as sustaining capital, and forms
part of our standard operating activities.
Building on our physical resilience approach, we implemented a
number of measures to strengthen our resilience to physical climate
risks during the year.
Case study: Pilbara rail Pilbara Rail demonstrates how climate resilience is actively designed into major infrastructure projects and operational systems. The network is engineered to remain functional during extreme weather events, with integrated systems that monitor track conditions – such as temperature spikes and structural anomalies – to support early intervention and maintain safety and performance. Autonomous locomotive operations play a key role in maintaining productivity during extreme heat events. Resilience planning is embedded from the outset, not only in day- to-day operations but also in the design of new developments and significant renewal programs. | ||
Case study: Dampier seawater desalination plant The West Pilbara Water Supply Scheme supports several towns and industrial sites in Western Australia. Declining rainfall and reduced streamflow have led to lower aquifer recharge. In response, we are developing a seawater desalination plant in Dampier to provide a climate-resilient water source for its Pilbara operations and the communities it supplies. Stage 1 will deliver 4 gigalitres annually by 2026, with potential expansion to 8 gigalitres, reducing reliance on stressed groundwater sources like Bungaroo and Millstream. The plant is designed to minimise environmental impact, using reclaimed land and existing infrastructure. Climate resilience features include elevated siting to protect against future storm surges. Developed in consultation with Traditional Owners and supported by the Western Australian Government and Water Corporation, the project aligns with our broader sustainability and climate adaptation goals, helping secure long-term water supply for coastal operations and West Pilbara communities. | ||
Case study: Simandou mine and rail Guinea is exposed to climate extremes that include increasing rainfall intensity, flooding, erosion and heat. Physical climate change resilience has been embedded into the design and operation of the Simandou iron ore mine following a structured climate resilience assessment. A key feature is ongoing monitoring of climate‑sensitive performance thresholds, including rainfall, performance of water management systems and slope stability, to support adaptive management and emergency response preparedness. At the mine, resilience measures include landform designs accounting for more intense precipitation, mine water management controls addressing flooding, erosion and water quality risks, and emergency response planning for foreseeable extreme weather events. Along the rail corridor, climate change projections have informed drainage, flood protection and embankment stability and erosion controls. Rail resilience is further supported by emergency power generation, enabling continued operation during disruptions. | ||
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Strategic report | Our approach to sustainability | Climate
Just transition
Our just transition strategy recognises that we have a role to play in
optimising the socio-economic opportunities associated with
decarbonising our assets, while safeguarding the rights of workers
and communities. We remain committed to ensuring that the
transition to a low-carbon future is inclusive, equitable and
responsive to the needs of workers, communities and Indigenous
Peoples. Our just transition strategy focuses on the areas most
within our control, with a strong emphasis on stakeholder and
community engagement, impact assessment and transparent
communication.
Principles and progress
In 2025, we strengthened our approach to integrating just transition
principles into project planning and decision making. We have
sought to embed the following global just transition principles into
our decarbonisation strategy to minimise impacts and optimise
socio-economic opportunities.
Principle 1: We will take a place-based approach to planning
for a just transition, and focus on those regions where our
emissions are greatest and our decarbonisation activities
have a significant interface with communities
We mapped our emissions profile and decarbonisation projects this
year to understand which communities could face the most
significant transition changes. We have evolved our tools and
processes to understand the specific needs and expectations of
these communities. For example, through our Local Voices
community sentiment survey.
This survey now includes questions on climate change and energy
transition awareness, providing insights into community
understanding and concerns at a local and regional level.
Principle 2: We will work collaboratively with communities,
government and industry to enhance regional economic
diversification and skills development
We remain committed to early, inclusive, and transparent
engagement with employees and unions, and have created a
working group on the subject with our global Industrial Relations
Steering Committee.
We are investing in infrastructure, education, and innovation hubs to
help mining regions thrive beyond extraction. For example,
we have committed $150 million to create a Centre for Future
Materials led by Imperial College London to find innovative ways to
provide the materials the world needs for the energy transition. The
“Rio Tinto Centre for Future Materials” will fund research programs
to transform the way vital materials are produced, used and
recycled, and make them more environmentally, economically and
socially sustainable.
We are actively participating in industry and investor working groups
to help shape emerging guidance and policy on just transition.
Principle 3: We will build just transition considerations into
relevant scopes of work so that the impacts of decarbonisation
activities are well considered and embedded in our
decision making
Our decarbonisation and nature-based solutions projects are
typically delivered in partnership with other organisations. We have
developed due diligence and project evaluation processes that
assess alignment with just transition principles, including partner
capability to uphold these standards.
As part of our due diligence or project planning process, we
undertake a robust analysis of workforce, social, political and
cultural risk ahead of project development to build just transition
considerations into planning.
We are embedding just transition considerations into the scope of
Social and Human Rights Impact Assessments, ensuring that the
social dimensions of decarbonisation are well understood and
inform decision-making.
Principle 4: We will proactively engage with Indigenous
Peoples, host communities, government, civil society
organisations and industry to share the information we have
about climate change and our plans to decarbonise
We engage with our communities on climate change projections and
decarbonisation activities in priority regions, so that they can make
informed decisions and feel prepared for the energy transition. In
2025, we collated key data from different parts of the business to
prepare for meaningful, two-way engagement.
As part of this engagement we will bring key stakeholders together
to take shared accountability for adapting to the impacts of climate
change and decarbonisation.
Our engagement forums with host communities, civil society
organisations and the local workforce continue to be key platforms
for facilitating transparency and listening to stakeholder concerns.
Climate policy and advocacy
While business has a vital role in managing the risks and
uncertainties of climate change, governments are essential to
support the challenge by providing enabling frameworks, including
policies and programs, which enable change and create the right
frameworks for change and increase momentum to shared net zero
goals.
We actively engage on climate and energy policy with governments,
industry, investors and civil society in the countries where we
operate to shape policies, regulations and frameworks that help
meet our decarbonisation goals and support global goals, including
those of the Paris Agreement.
In 2025, we continued to advocate for policies that enable
decarbonisation of our operations and support the production of
transition materials. Our engagements align with the goals of the
Paris Agreement, including efforts to limit global warming to 1.5°C,
and we encouraged alignment across industry associations.
We participated in direct policy consultations with governments,
contributed to policy development through industry bodies, and
published all our standalone submissions to public consultation
processes on climate-related policy.
We also completed and disclosed our annual review of industry
association climate advocacy.
We remain committed to transparency in our advocacy activities and
to supporting policy frameworks that accelerate the transition to net
zero.
| For more information on our climate position and advocacy, see riotinto.com/climateposition |
Annual Report on Form 20-F 2025 | 70 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Climate policy and regulation | 2025 Activities | |
Development of carbon pricing schemes to support the transition In the absence of global carbon prices, country-level carbon pricing or emissions reductions schemes must balance shared net zero emissions with the competitiveness of our operations and risks of carbon leakage. | •In Australia, we provided feedback via our industry associations into the Climate Change Authority’s review of the Carbon Credits (Carbon Farming Initiative) Act 2011, with a focus on delivering high integrity methods to support abatement. •We provided feedback directly and through industry associations to the European Commission on several Carbon Border Adjustment Mechanism (CBAM) implementing acts. We support the inclusion of indirect emissions and a fair treatment of scrap content. •In Canada, we provided feedback directly and through industry associations to the provincial government on the development of their assessment of the operating parameters of the Quebec Cap-and-Trade System. We support the use of high-quality offsets and the continued protection of the competitiveness of our industry. •In 2026, we will engage in the scheduled review of the Australian Safeguard Mechanism. We support the scheme’s ongoing role in incentivising the private sector to make low-emissions investments. | |
Climate-related financial reporting We support the development of frameworks that encourage transparency and provide the key disclosures required for investors and other external stakeholders to compare progress against climate ambitions, enhance competitiveness in global markets, attract investment and accelerate the transition of economies. | •We provided feedback directly to the European Financial Reporting Advisory Group (EFRAG) and through our European industry associations on the proposed revisions to the European Sustainability Reporting Standards under the Corporate Sustainability Reporting Directive, supporting alignment with international standards to promote transparency, consistency and comparability of sustainability disclosures, including climate-related information. •In Australia, we provided input into updates to the National Greenhouse and Energy Reporting Scheme to support enhancements to market-based reporting, in line with the GHG Protocol. | |
Energy transition and commodity demand | 2025 Activities | |
Growing demand for low carbon products Policy is necessary to transform the metals sector including by supporting research and development, and driving deployment of pre-commercial technology. | •We engaged in the development of the Australian Guarantee of Origin Scheme for the certification of renewable electricity and low carbon products and note its potential to support the development of markets and international trade of low emissions products and renewable electricity. | |
Decarbonising energy systems Government’s sectoral decarbonisation plans and policies should support investment certainty and drive an orderly transition of energy systems while supporting operational decarbonisation through the delivery of a sufficient supply of competitively priced, reliable, low-carbon energy. | •In Australia, we responded to the Productivity Commission’s interim report on “Investing in cheaper, cleaner energy and the net zero transformation” to reiterate our advocacy for competitively-priced, firmed, renewable electricity at scale as the critical enabler for decarbonisation, and the role of policy and regulation to support the energy transition. | |
Progressing decarbonisation plans for the aluminium industry | •In Australia, we participated in the design process for the Green Aluminium Production Credit, advocating for the scheme to focus on increasing renewable electricity use at smelter facilities. | |
Global technology development | 2025 Activities | |
Decarbonisation of hard-to-abate energy intensive processing activities requires significant investment in technology development and deployment, and support which ensures global competitiveness of these sectors through the transition in the absence of a global carbon price. | •We engaged with ARENA across our portfolio to explore partnership options and advocate for Government support for technology development and deployment. | |
Development of a sustainable low-carbon liquid fuels industry Displacing diesel use requires a range of options, including fleet electrification and the use of renewable diesel. Government policies are required to support the development of a competitive and sustainable low-carbon liquid fuels market. | •In Australia, we continued to advocate for government’s role in scaling up a domestic biofuels industry by focusing on the supply of sustainable feedstocks. Our advocacy included responding to the public consultation on developing a National Bioenergy Feedstocks strategy. |
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Strategic report | Our approach to sustainability | Climate
Climate-related governance
Directors' declaration in relation to the
consolidated Sustainability Report of Rio Tinto
As required by the Australian Corporations Act 2001 (Cth) as
modified by ASIC Instrument 26-0081 (Corporations Act), and in
accordance with Australian sustainability standards and other
emerging standards, Rio Tinto has prepared the climate‑related
disclosures included in this Form 20-F in the section titled “Climate”,
in other sections cross‑referenced from that section, and in the 2024
Scope 1, 2 and 3 Emissions Calculation and Climate Methodology
and the 2025 Addendum (riotinto.com/climatereporting), (the
Sustainability Report), in respect of Rio Tinto plc, Rio Tinto Limited
and their respective subsidiaries (the Rio Tinto Group). Other
sustainability‑related information included elsewhere in this Form
20-F, or published on our website (unless specifically referred to by
document and page number), is not part of the Sustainability Report
and has not been prepared pursuant to the Corporations Act,
Australian sustainability standards or related ASIC instruments.
Under the Corporations Act, the Directors must provide a declaration
in respect of the Sustainability Report. Each of the current Directors,
whose names and function are listed on pages 104 and 105 in the
Directors’ Report, declare that, in their opinion, Rio Tinto Limited has
taken reasonable steps to ensure that the substantive provisions of
the Sustainability Report are in accordance with the Corporations
Act, including:
•complying with applicable sustainability standards
•complying with section 296D of the Corporations Act (climate
statement disclosures).
The ASIC relief referred to above permits the Sustainability Report to
relate to the Rio Tinto Group as a whole, rather than to only Rio Tinto
Limited and its subsidiaries. For the purposes of sections 342(C)(4) and
(5) of the Corporations Act, the Directors intend that subsection 342C(6)
of the Corporations Act apply to the Sustainability Report.
This declaration is made in accordance with a resolution of the Board.
Dominic Barton
Chair
19 February 2026
The Board
The Board has ultimate responsibility for our overall approach to
climate change. This includes the oversight of climate-related risks,
opportunities, strategy, projects, partnerships, physical resilience,
engagement, reporting, and advocacy as per the Schedule of
Matters. Climate change and the low-carbon transition present
material risks and opportunities for our business, forming a key part
of our strategy and sustainability and social licence objectives. The
Board approves our overall strategy, policy positions, and climate
disclosures within this report, delegating specific responsibilities to
committees and the Chief Executive. These factors are considered in
strategy discussions, risk management, financial reporting,
investment decisions, and executive remuneration.
The Board receives regular updates on climate-related matters
through the Monthly Performance Review scorecard, which
includes KPIs and a detailed decarbonisation scorecard covering
operational emissions, offsets, abatement projects and Scope 3
emissions. During the year, climate is also addressed through
other agenda items. For example, the Board and the Audit &
Risk Committee considered climate-related risks and
opportunities as part of their review of the Group’s material risks
and uncertainties. See further required details in “Our risk
management governance structure” on page 89, and “Risk
factors” on pages 91 and 97.
In the past 12 months, the Board agendas have included climate-
related items, such as discussions on repowering options for our
Pacific Aluminium Operations. This has included oversight of the
Group’s emissions reduction pathway and its reliance on securing
commercially viable renewable energy contracts for the Boyne and
Tomago smelters. The Board balances environmental goals with
social and financial considerations and continues to oversee these
discussions to ensure decisions reflect both strategic priorities and
stakeholder impacts.
In 2022, our shareholders supported our first CAP put forward to them
by the Board, in a non-binding advisory vote on our ambitions,
emissions targets and actions to achieve them.
The Board further committed to repeating this vote every 3 years, at a
minimum, unless there were significant changes in the interim, in which
case the CAP would be returned to the next immediate AGM. The 2025
CAP was approved by shareholders at our 2025 AGM.
When considering Board composition, an external consultant is used
to support the appointment of new directors. No new non-executive
directors were appointed in 2025. This year we undertook an internal
review of Board performance and considered the skills of Directors,
including those relating to climate and renewable energy. These skills
are reflected in a matrix approved by the Nominations & Governance
Committee. We expect our Directors to remain informed and up to
date on relevant matters.
To support the Board’s oversight of climate-related matters, this year
the Audit & Risk Committee, joined by members of the Sustainability
Committee, received an externally facilitated session on climate
governance and considerations for boards in preparing for mandatory
climate reporting, including new Australian disclosure obligations. In
addition, the Chief Decarbonisation Officer presented on our
approach to climate reporting, the organisational model in place to
oversee climate-related risks and opportunities, and our approach to
mandatory assurance requirements. These sessions complement
ongoing updates on strategic priorities and decarbonisation initiatives
and form part of our commitment to strengthening Board capability in
managing climate-related matters.
| For additional information see our Strategic context and Strategic framework on pages 6-9. |
Summary of 2025 Board activities: •Approved the Group’s strategy and scenarios, including the use of climate scenarios and the impact and opportunities arising from the energy transition. •Approved the 2025 Climate Action Plan (CAP) and climate-related disclosures in the 2024 Annual Report, including the notes to the financial statements. •Engaged with investors and civil society organisations following the publication of our 2025 CAP. •Approved various projects that support the growth in production of transition materials and our internal decarbonisation objectives. •Oversaw adoption and implementation of the Australian climate reporting standards (AASB S2). •Updated the Group’s operational decarbonisation pathway and associated expenditure. | ||
Sustainability Committee
The Sustainability Committee is responsible for the oversight of key
sustainability issues including social and environmental matters that are
impacted by climate change, particularly those relating to water and
biodiversity. In 2025, the Terms of Reference were updated to reflect
these responsibilities including oversight of physical resilience to climate
change, which the Committee discusses on a periodic basis.
The committee works with the Audit & Risk Committee to ensure the
effectiveness of the risk management framework, and to oversee
engagement with the external auditors who conduct sustainability
assurance, including assurance in relation to GHG emissions.
For more information see pages 120-121.
Audit & Risk Committee
The Audit & Risk Committee is responsible for risk management
systems and internal controls, financial reporting processes and the
relationship with the external auditors as noted in its committee terms of
reference. This involves the oversight of significant areas of judgement
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Strategic report | Our approach to sustainability | Climate
relating to the financial statements including those relating to climate,
consideration of climate policies, and stress testing our strategy against
selected scenarios. It ensures the effectiveness of the risk management
framework and also endorses the appointment and fees of the external
auditors who assure GHG emissions.
The Committee’s terms of reference were revised in February 2026 to
formalise the oversight of the non-financial reporting process (supported
by the Sustainability Committee) including those disclosures relating to
climate.
People & Remuneration Committee
The role of the People & Remuneration Committee includes the
oversight of the Group’s remuneration structure, including the use of
short- and long-term incentive plans for the Executive Directors, as
reflected in its charter.
This includes performance against strategic measures linked to
decarbonisation. In 2025, 10% of the short-term incentive plan
(STIP) and 20% of the long-term incentive plan (LTIP) were
weighted towards decarbonisation, including the progress of our
carbon abatement projects. See pages 122-139 for our 2025
remuneration outcomes and the incorporation of climate-related
measures in the STIP and LTIP.
Management
Investment Committee
The Investment Committee reviews and approves the Group’s
capital allocation in relation to high-cost projects and climate change
research and development.
| For more information on our Capital allocation and investment framework, see page 58. |
Chief Executive and Executive Committee
The Chief Executive is responsible for delivering the CAP, as
approved by the Board, with the Executive Committee supporting
this role. The Executive Committee receives a quarterly
decarbonisation progress report which includes updates on
abatement projects and other areas of our CAP.
Risk management, portfolio reviews, capital investments, annual
financial planning and our approach to government engagement are
integrated into our approach to climate change and emissions
targets. The annual financial planning process focuses on the short
term (up to 2 years). The new growth and decarbonisation strategy
is part of the medium-term planning process.
Remuneration: Our Chief Executive’s performance objectives in the
STIP include delivery of the Group’s strategy on climate change.
These are cascaded down into the annual objectives of relevant
members of the Executive Committee, including the Chief Safety &
Technical Officer, and other members of senior management.
Decarbonisation is also included as a performance measure in the
STIP and LTIP as described above. See pages 131-139 for our
2025 remuneration outcomes and the incorporation of climate-
related measures in the STIP and LTIP.
Energy and Climate team
Since 2022, we have managed delivery of our CAP through a central
team, Rio Tinto Energy & Climate (RTEC). This team, led by the Chief
Decarbonisation Officer who reports to the Chief Safety & Technical
Officer, has been accountable for all aspects of the CAP.
The RTEC team has been structured around the main areas of our
abatement work that drive decarbonisation across our operations,
including a dedicated Nature-based Solutions team. A Decarbonisation
Office (DO) supports this work by monitoring and forecasting GHG
emissions, tracking investment decisions, coordinating our approach to
physical climate risks, and engaging on climate-related policies, regulation
and reporting. It also prepares the quarterly decarbonisation progress
report for the Executive Committee.
As part of the evolution of our strategy and operating model,
we are transitioning delivery of decarbonisation projects to our
product groups and assets. This shift reflects a move to embed
delivery more directly within our operational structure. Central
oversight will continue for emissions reductions tracking and
investment strategy review, ensuring alignment with our overall
climate objectives. The current model, with delivery led centrally by
the RTEC team, has remained in place throughout 2025.
Rio Tinto Commercial continues to lead our approach to Scope 3
emissions, given its responsibility for procurement, shipping and
customer engagement. Updates on Scope 3 emissions abatement
projects are included in the quarterly decarbonisation report
prepared by the DO.
Management of climate-related risks
and opportunities
The Board approves our risk appetite and oversees our material risks.
The Board is supported in monitoring a range of material financial and
non-financial current and emerging risks by the Audit & Risk and
Sustainability committees. Climate-related risks1 and opportunities are
integrated in our enterprise-wide risk management framework. These
are identified by product groups and supporting functions, then
included in the appropriate risk register. These will be assigned a risk
owner and evaluated on the maximum reasonable consequence (non-
financial and financial) and likelihood of the risk. Consequences may
include the impact on Group free cash flow or business value, or
reputation and licence to operate. These risks are escalated to the
appropriate level of management for oversight and action. Processes
remain unchanged from the prior year. See further required details in
“Our risk management governance structure” on page 89; “Emerging
risks” on page 90 and “Our approach to risk management” on page 89
for more detail on our risk management process, emerging risks and
our current assessment of risk factors.
Under our 3 lines of defence model, all employees are empowered to
own and manage the risks that arise within their area of responsibility.
Our Enterprise functions are our 2nd line of defence, providing deep
subject matter expertise and objective challenge. Our Internal Audit
function provides independent assurance. Where required by law, or
where deemed appropriate, we also engage third parties to provide
independent assurance. Where risks are material to the Group, they
are escalated to the Risk Management Committee and, as
appropriate, to the Board or its committees.
We actively monitor and assess the potential impact of climate risks
and opportunities on our operations and business through scenario
planning. See pages 73 and 79 for more detail on how we use
scenarios to identify climate-related transition and physical risks, and
portfolio opportunities. Additionally, climate-related opportunities are
prioritised by considering factors such as shareholder value, asset cost
base, emissions abatement potential, and competitiveness against the
marginal abatement cost curve, as outlined in our “Capital allocation
and investment framework” section on page 58.
Climate change and the low-carbon transition remain critical
emerging risks, with potential to have a significant impact on our
business and the communities where we operate. Emerging risks
that could materially impact strategic objectives are incorporated
within our material risks and, where possible, we develop responses
to mitigate threats and create opportunities for the Group.
In 2025, climate change has been elevated to a standalone material
risk to reflect its increasing relevance and potential to materially
impact our business. “Preparing our business for climate change”
includes both physical risks (such as extreme weather events and
long-term environmental changes) and transition risks and
opportunities (arising from shifts in policy, technology, and market
expectations as the global economy decarbonises). See further
information on “Preparing our business for climate change” including
opportunities, threats, key exposures and key management
responses on page 97.
Recognising climate change as a material risk reflects the growing
complexity and interconnection of climate-related risks and
opportunities across our business. It also supports continued
integration of climate-related considerations into strategic planning and
risk management across the Group. All Group material risks and
uncertainties are reviewed on a quarterly basis by the Enterprise Risk
function and the Risk Management Committee (RMC).
1.Our Group Risk Management framework refers to “risks” in the context of both threats
and opportunities. For purposes of disclosure in this section, we refer to climate risks
and opportunities separately.
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Strategic report | Our approach to sustainability | Climate
Scenario analysis
We use scenario analysis to identify and assess material risks and
opportunities, including those related to climate change, that may
affect our Group in the medium and long term. All material Group
operations are included in our analysis.
Transition risks and opportunities are assessed using short‑term
market analysis and our Group Conviction, Resilience and
Aspirational Leadership scenarios for the medium and long term.
These scenarios are macroeconomic in nature and reflect an
integrated assessment of climate change, geopolitics, policy
developments and broader economic conditions. As these factors
are closely interrelated, we assess transition impacts through our
Group scenarios rather than through discrete climate models.
The temperature outcomes of these scenarios are informed by
detailed economic modelling, combining internal and external
sector‑focused insights.
Physical climate risks are assessed separately using bottom‑up,
asset‑level analysis aligned to discrete climate model‑based emissions
scenarios, including intermediate and high‑emissions pathways.
Our process for identifying material transition risks considers whether
climate-related factors, such as regulatory and policy changes,
technology developments, community expectations, and physical
climate impacts, could have a material impact on our business model,
strategy, or financial statements. Climate risks and opportunities are
considered material when they could reasonably affect our ability to
deliver on strategic objectives, maintain financial resilience, or require
changes to operations or investment priorities.
While specific thresholds vary by risk type and scenario, we
consider indicators such as potential for sustained cost increases,
prolonged operational disruption, impact on shareholder value or
reputational impacts that could influence long-term value.
Examples include:
•regulatory or policy changes that increase costs or delay projects
•technology shifts that alter competitiveness or investment
priorities
•community or stakeholder actions that affect access to resources
or require major changes in approach.
Rather than applying a single threshold, we use structured analysis
to identify risks that could have a meaningful effect on our business
performance or strategic objectives. These risks are escalated for
management oversight and actioned as appropriate.
Additional information on scenario analysis
We review our scenario approach every year as part of our Group
strategy engagement with the Board. For planning purposes, we
define short term as up to 2 years, medium term as 2 to 10 years
and long term as beyond 10 years.
Our short‑term timeframe aligns with our annual planning process
and is informed by market analysis, allowing us to respond swiftly to
immediate market conditions and trends, and remain agile and
competitive in the near term.
The medium‑term timeframe aligns with extended planning horizons
for our growth and emissions abatement projects, while the
long‑term timeframe considers the full lifespan of our mining assets
and infrastructure, as well as the continued impact climate risks and
opportunities are expected to have on the business.
Scenarios are used primarily over the medium and long term to
identify and evaluate transition risks that can affect our business
model, financial performance and market positioning, assess
opportunities such as low‑carbon technologies and the transition to
renewable energy, and inform strategic planning and investment
decisions, recognising that uncertainty in assumptions and
projections inevitably increases further into the future.
We do not undertake climate modelling ourselves, but rather determine
the approximate temperature outcomes by comparing the emissions
pathways to 2100 in each of our scenarios with the Shared Socio-
economic Pathways (SSP) set out in the Intergovernmental Panel on
Climate Change (IPCC) Sixth Assessment Report. We also consider the
carbon budgets associated with different temperature outcomes which
are inevitably uncertain. In 2024, we updated the scenario framework
used to assess the resilience of our business under different transition-
related scenarios. This year, the Conviction scenario was rerun to reflect
updated assumptions and temperature outcomes, while the Resilience
and Aspirational scenarios were not rerun as no material changes were
made to their underlying assumptions or inputs.
Alongside commodity, energy, currency and other macroeconomic
assumptions, carbon pricing is also factored into our scenario
analysis and used to evaluate investment decisions. Our short-term
carbon pricing assumptions align with consensus price forecasts in
each region, accounting for transitional assistance, such as free
allocation, where appropriate. Medium- to long-term carbon prices
are determined by national climate targets, and our understanding of
the marginal abatement costs and objectives for each scheme.
Dependent on location and time horizon, our internally applied
carbon prices range from $0/t CO2e to $250/t CO₂e.
The temperature outcomes of scenarios and sensitivities are based
on detailed economic modelling using various tools and analyses,
combining internal and external insights focused on sectors relevant
to our commodities. The emissions pathways in Conviction and
Resilience limit temperature rises to around 2.1 – 2.3°C (previously
2.1°C), and around 2.5°C by 2100 respectively. This roughly aligns
with the IPCC’s intermediate emissions scenario (SSP2-4.5). We
also use the SSP2-4.5 (intermediate emissions) and SSP5-8.5
(highest emissions) scenarios in our bottom-up asset-level physical
risk and resilience assessments. See page 79 for more information.
There are no portfolio adjustments made to the Group’s medium- to
long-term plan under the various scenarios. As good practice on
scenario analysis and climate modelling evolves, we will continue to
evaluate the robustness of our assessments of climate-related risks
and opportunities, drawing on more recently published studies and
analysis.
Scenario analysis temperature pathways (to 2100)
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Strategic report | Our approach to sustainability | Climate
Our core scenarios
Conviction
This is our “central case” scenario and underlies strategic planning
and portfolio investment decisions across the Group. Consequently,
we limit disclosure of our detailed assumptions. In this scenario,
countries are expected to electrify and decarbonise at a moderate
pace, with increasing awareness of climate-related physical risks
prompting more progressive policy action over time. Climate policies
in Conviction remain more ambitious than in Resilience, although
overall climate ambition has moderated compared to prior
expectations. This results in an estimated temperature rise of
approximately 2.1°C to 2.3°C by 2100, where the lower end
assumes developing countries achieve stated net zero targets
post-2050 and the upper end assumes a delay of one to 2 decades.
Developed economy targets are nearer term and introduce less
uncertainty. The uncertainty reflects the highly unpredictable
decarbonisation pathways of non-OECD countries beyond 2050 and
does not materially affect group value.
Real gross domestic product (GDP) grows at 2.2% between
2023–2050, but energy intensity of GDP reduces approximately
2.1% per year due to sectoral shifts and greater efficiency. For the next
decade, greenhouse gas (GHG) emissions are slightly higher than those
in the Resilience scenario due to a higher GDP, but emissions then
decline, although not as quickly as previously anticipated, as low-carbon
electrification expands to supply over half of final energy by 2050. The
impact on corporate balance sheets will be mixed – overall, although
carbon pricing varies by region, it will increase costs. GDP growth and
the global energy transition are expected to increase demand for
copper, lithium and aluminium through to 2050. Steel demand is
expected to grow more modestly, and incentives to recycle scrap
increase. Lower quality iron ore products are expected to receive greater
discounts. Additionally, near-term costs for low-carbon technologies in
developed economies may be higher due to technology maturity and
investment conditions, while lower carbon prices could slow adoption.
Updates to inputs and assumptions this year reflect changes in
global growth and climate ambition outlook and do not result in a
significant impact on our overall business strategy.
Resilience
Weaker governance, declining global trade, and lower economic
growth lead to less effective climate action. Real GDP growth only
averages 1.6% between 2023 and 2050. Lower economic growth
and a slower energy transition lead to lower commodity demand and
prices across all time periods compared to Conviction. Lower policy
ambition and the inability of the international community to tackle
carbon leakage without resorting to protectionism leads to climate
policies advancing sporadically and in an uncoordinated way.
Slower global climate action and lower commodity prices delay the
development and deployment of low-carbon technologies,
potentially pushing progress on hard-to-abate emissions back by a
decade or more. In regions where we operate emissions-intensive
assets, this could hinder our ability to meet decarbonisation targets
and reduce long-term competitiveness. Overall, there is still a 38%
reduction (relative to 2025) in global GHG emissions by 2050. The
result is a temperature rise of around 2.5°C by 2100. Consequently,
climate-related weather events and natural disasters become more
frequent and severe in this scenario but are met by fragmented and
variable policy responses.
Aspirational Leadership scenario 1.5°C
This scenario reflects our view of a world of high economic growth,
significant social change and accelerated climate action that
achieves net zero emissions by mid-century. While GDP growth is
similar to that in our Conviction scenario, significantly more
ambitious climate policy limits warming to 1.5°C (aligning with
SSP1-1.9). Stronger climate ambition is expected to be
accompanied by more supportive policy frameworks that
accelerate the development and adoption of low-carbon
technologies. This scenario affects our balance sheet in different
ways and is subject to great uncertainty. Overall, in Aspirational
Leadership the Group's economic performance would fall between
Conviction and Resilience. While higher scrap use reduces the
medium-term demand for Pilbara products, increased carbon
pricing and penalties boost long-term demand for high-grade iron
ore. Aluminium demand growth is limited in the short term, but
increases in the longer term. Copper demand grows due to
increasing electrification, strong GDP growth, and accelerated
electric vehicle (EV) penetration. These trends also support
minerals projects.
Despite global agreements reached in Glasgow and Dubai, emissions
today continue to rise, making the 1.5°C goal of the Paris Agreement
unlikely to be achieved. Overall, based on the Aspirational Leadership
scenario pricing outcomes, and with all other assumptions remaining
consistent with those applied to our 2025 financial statements, we do
not currently envisage a material adverse impact of the 1.5°C Paris-
aligned sensitivity on asset carrying values, remaining useful life, or
closure and rehabilitation provisions for the Group. It is possible that
other factors may arise in the future, which are not known today, that
may impact this assessment.
Additional scenario parameters
The next table shows some of the key data derived from our internal macroeconomic and energy models that form the basis for all our long-
term commodity analysis. Changes in scenario inputs reflect revised methodologies and calculations. We now assume higher energy
consumption through to 2050, with differences becoming more pronounced beyond 2050. This results in a wider temperature range in our
conviction scenario, now 2.1–2.3°C. Carbon prices are slightly lower than previous assumptions, but this does not directly translate into
higher emissions, as other policies continue to influence outcomes.
Key scenario metrics | Base year | Conviction | Resilience | ||
2023 | 2030 | 2023–2050 CAGR | 2030 | 2023–2050 CAGR | |
Average exposed carbon price, (2025 $/t CO2e)1 | 37 | 70 | 6.3% | 69 | 5% |
Global GHG emissions, (Gt CO2e) | 55 | 57 | -1.6% | 51 | -1.8% |
Global CO2 combustion emissions, (Gt CO22) | 34 | 34 | -2.8% | 31 | -2.7% |
Global final energy demand, exajoule (EJ) | 445 | 481 | 0.5% | 455 | 0.1% |
Electricity share of final energy | 21% | 25% | 3.6%3 | 24% | 2.2%3 |
Non-fossil share of electricity generation | 46% | 58% | 6.2%3 | 60% | 4.2%3 |
1.Simple unweighted average across Australian, European and North American national carbon schemes. This is a simplified representation of regional, and in some cases sub regional,
level analysis.
2.While total GHG emissions is the primary metric for estimating global warming, CO2 combustion emissions give a clearer picture of the energy transition in the power and industrial sectors.
3.Indicates annual % growth of total electricity generation and non-fossil electricity generation.
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Portfolio resilience
Our CAP is designed to address material climate-related risks and
opportunities identified across a range of scenarios and time
horizons. It integrates actions to mitigate transition risks such as
stricter carbon regulations, uneven climate policies and social
licence to operate, and to capture opportunities from the growing
demand for materials essential to the global energy transition.
We have assessed the resilience of our portfolio under multiple
transition scenarios aligned with 1.5°C, 2.1–2.3°C, and 2.5°C
outcomes. These assessments consider factors such as emission
intensity relative to industry peers, regional exposure to climate
regulations, and product suitability for downstream decarbonisation.
Our economic performance is stronger in Conviction than in
Resilience, where there is higher GDP growth and a faster low-
carbon transition. In Aspirational Leadership, higher carbon
penalties and potential impacts on demand for mid- and lower-grade
iron ore result in mixed performance for iron ore, but stronger
demand for other metals than in Conviction.
Key elements of the plan include reducing operational emissions
through renewable electricity deployment, transitioning mining
operations away from diesel, and lowering process emissions in
smelting and refining. These measures strengthen resilience under
all scenarios considered and support delivery of our 2030 and 2050
emissions targets, while enabling a just and orderly transition. See
pages 55–67 for more information on our CAP, including
decarbonisation strategy, Scope 3 approach, and transition-related
spend.
Financial resources and flexibility
Financial resources remain available to support our decarbonisation
strategy (see page 58). Our Group capital allocation framework
guides investment decisions that support both growth and climate-
related initiatives. We maintain flexibility to respond to emerging
risks and opportunities, as demonstrated by our ability to fund major
growth projects such as copper at Oyu Tolgoi, high-grade iron ore at
Simandou, and lithium at Rincon. In addition, our recent acquisitions
show the availability of funds to pursue inorganic growth
opportunities aligned with our strategy.
Asset redeployment and portfolio flexibility
We regularly review our portfolio to ensure alignment with strategic
priorities and climate objectives. This includes divesting assets that
do not meet return criteria or strategic priorities, as evidenced by the
currently ongoing strategic review of businesses from our former
Minerals product group. Our approach ensures continued disciplined
investment in organic growth and flexibility to repurpose or upgrade
existing assets to support climate resilience.
Current and planned investments
Our planned investments in decarbonisation and growth are
embedded in our operations and capital plans (see page 58). These
include renewable electricity deployment, electrification of mining
fleets, and process innovation in smelting and refining. Our ambition
remains to grow production of transition materials by approximately
3%, supported by capital allocation and major projects across our
global portfolio.
Through disciplined capital allocation, operational decarbonisation,
and portfolio flexibility, we are resilient to identified climate-related
risks and well-positioned to capture opportunities arising from the
global energy transition.
Determining the financial impact of climate-related
risks and opportunities
Climate-related risks and opportunities (CROs) can affect our
financial position, financial performance and cash flows in the
current reporting period (current financial effects) and in future
periods (anticipated financial effects).
Information on the current impacts of climate change and the
execution of our climate change strategy on our financial statements
is available on pages 161-164, and has also been referenced
alongside each relevant CRO on page 76.
Based on information to date, and where separately identifiable,
none of the identified climate‑related risks or opportunities are
expected to result in a material adjustment to the carrying amounts
of assets and liabilities disclosed in the financial statements within
the next annual reporting period.
Anticipated portfolio impacts derived from scenario analysis are
subject to inherent uncertainty due to multiple interdependent
estimates and assumptions. Our macroeconomic modelling
incorporates a range of variables and, as a result, isolating and
measuring the anticipated impact of specific CROs can be
challenging. Due to these circumstances, it is not currently possible
to disclose quantitative financial impacts for certain CROs. Instead,
to disclose the potential impacts of these on Group performance, we
have provided qualitative narrative on each CRO’s impact, how
outcomes may differ under our Resilience and Aspirational
scenarios, a link to identified current impacts on the financial
statements, and a relative impact range1 across our portfolio over
the short, medium and long term.
Quantitative financial impacts have not been disclosed for the
following CROs.
Energy transition commodity demand: Demand for our materials
is influenced by a range of factors, including the energy transition,
broader macroeconomic conditions, supply availability and
commodity prices. As these drivers are interrelated, it is not possible
to separately identify or quantify the financial impact of demand
attributable to the energy transition from general market demand, as
commodity prices and volumes reflect the combined effect of
multiple factors operating simultaneously. While not separately
identifiable, see page 76 for our analysis of the anticipated increase
in overall commodity demand.
Global technology development (opportunity): Our technology
development opportunity is primarily focused on enhancing
competitiveness over the medium to long term. While these
technologies are already informing strategic positioning, most
remain in development or pilot stages. Their short‑term impact on
competitiveness is still emerging and being shaped by ongoing
technology development and broader macroeconomic factors. While
not yet quantified, we expect decarbonisation technologies to
improve asset competitiveness by potentially increasing revenue
through demand for low-carbon products, reducing carbon costs,
and strengthening cash flows. Anticipated carbon costs have been
provided on page 76.
Social licence to operate and access orebodies: Our social
licence is critical to our operations and is embedded across our
business. The impact of these risks, and the climate-related
influence on licensing, is difficult to isolate. They are inherently
qualitative and depend on factors such as stakeholder trust,
community relationships and permitting processes, all of which
cannot be consistently expressed in monetary or numerical terms.
Physical risks: All of our inventory and PPE ($91.6 billion), which
together account for 72% of our total assets, are exposed to some
degree of unmitigated physical climate‑related risk. Given the
variability of physical hazards, modelling approaches and inherent
uncertainty in outcomes, we are unable to produce precise
quantitative estimates of anticipated financial impacts under each
scenario2. Instead, we assess potential exposure and impact using
our Value at Risk (VaR) analysis, as outlined on page 80, and
supplement this with qualitative assessments on page 78.
Any material current physical climate‑related impacts are disclosed
in our financial statements as, among other line items, physical
damage or disruption could primarily affect asset carrying values
and cash flows. No such instances were noted in FY2025.
Separately, costs to enhance asset resilience are embedded within
our operational and capital expenditure processes and therefore
cannot be separately identified.
1.The relative impact disclosed has been assessed under our Conviction scenario,
considering the potential portfolio effect each individual CRO may have compared to
other CROs identified. These potential impacts carry inherent uncertainty due to their
dependence on multiple forward‑looking assumptions.
2.See “Considerations and limitations“ on page 79.
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Strategic report | Our approach to sustainability | Climate
Key: | L = Low | M = Medium | H = High |
Climate-related risks and opportunities
Portfolio risks and opportunities in the low-carbon transition
We address climate-related risks and opportunities through our CAP, which sets out current and planned actions to mitigate identified risks
and capture opportunities. These actions include changes to strategy and resource allocation, process improvements, renewable energy
deployment, and collaboration across our value chain. The table below summarises the impact of material climate-related risks under our
scenarios and the actions within our CAP to mitigate them.
Risk Opportunity | Relative impact over time (Conviction) | ||
Short-term | Medium-term | Long-term | |
Energy transition commodity demand | M | M | H |
Customer interest in materials required for the energy transition is growing and may increasingly influence future pricing and demand, primarily leading to an increase in revenue. We see an opportunity in the short term to strengthen our role as a key supplier of these materials, while positioning for medium- and long-term growth as demand for copper, aluminium, lithium, and high-grade iron ore is expected to grow, particularly in markets prioritising decarbonisation. Underlying EBITDA1 is projected to increase by around 40–50% from the 2024 baseline to 2030 (based on long-run consensus prices, consolidated volume growth, and unit cost reductions) as a result of volume growth supported by the diversification of our portfolio. Demand growth across key commodities underpins this outlook. Aluminium is forecast to grow by ~1.2x by 2035, lithium by ~3.4x, copper by ~1.3x, and steel by ~1.1x, driven by electrification, energy storage, and infrastructure expansion in markets prioritising decarbonisation. These trends highlight the potential to capture value through portfolio diversification and supply growth as global energy systems transition. Our production outlook on a CuEq basis shows a 3% CAGR to 2030, supported by the addition of Simandou and our lithium assets at Arcadium and Rincon. The pace of the transition in the value chain, such as the grade and quality of these commodities, influences portfolio composition, capital allocation, and technology investment decisions over the medium to long term. By partnering with technology providers to develop low-carbon pathways and adapt to evolving product specifications, we can better meet customer expectations, support portfolio growth, and capture value in a shifting market landscape. This includes potential upside from emerging green premiums for low-carbon products. | Financial statement impact: •Transition materials metrics: consolidated sales revenue, capital expenditure, operating assets, page 83. •Estimation of asset lives, page 188. | ||
Global technology development | L | M | M to H |
Low-carbon technologies such as ELYSIS™, Évolys™ and hydrogen-based processing are expected to reduce hard-to- abate emissions and enhance competitiveness over the medium to long term. These technologies offer potential to reshape legacy operations and support strategic differentiation across key parts of our value chain. While work on low-emission technologies continues, some breakthroughs are likely to take longer to achieve than initially anticipated, creating uncertainty around their availability at scale. This means that residual emissions from hard-to-abate areas for us, our industry, and more broadly the world, may remain elevated and exposed to carbon pricing for an extended period, impacting our ability to achieve net zero in 2050 or beyond. Post-2030 abatement projects are typically high-cost and capital-intensive, relying on industry-wide technological breakthroughs to transform decades- to centuries-old industrial processes. These factors are shaping our strategic planning and portfolio decisions, with potential financial impacts such as higher capital requirements, alongside slower progress in achieving long-term emissions reduction targets. Currently, 59% of our Scope 1 and 2 emissions (18.5 Mt CO2e) are classified as hard-to-abate2, with $0.56 billion spent/ committed co-investment in industrial scale R&D to support solutions for hard-to-abate emissions. Our total decarbonisation spend for 2025 was $612 million (2024: $589 million) and our updated capital expenditure forecast is $1-2 billion to 2030. Further details on our decarbonisation capital allocation can be found on page 58. | Financial statement impact: •Decarbonisation spend, page 163 and 180. •Decarbonisation capital commitments, page 226. •Carbon abatement spend on procurement of carbon units and renewable energy certificates, page 187. •Additions to property, plant and equipment with a primary purpose of reducing carbon emissions, page 190. | ||
Climate policy and regulation | L | M | H |
Increasing regulatory costs, uneven climate policies and border tariffs are impacting asset competitiveness and risk fragmenting markets if not implemented appropriately. Our operations are facing growing exposure to climate-related regulations, particularly carbon pricing in Australia, Canada and the European Union. As transitional support measures phase out, assets in these regions risk losing cost competitiveness compared to peers in lower-carbon jurisdictions. Currently, 82% of our global Scope 1 GHG emissions (19.6 Mt CO2e) are covered by emissions-limiting frameworks, exposing a substantial portion of our portfolio to rising compliance costs. Currently, carbon costs3 are <$0.1 billion, with annual penalties potentially reaching $0.3 billion by 2030 and $2.6 billion by 2040 without further emissions reductions. Our continued, but declining, reliance on fossil fuels also increases exposure to both carbon costs and energy price volatility, with ~7% of our operating costs (~$3.1 billion) attributable to fossil fuels.4 | Financial statement impact: •Carbon tax sensitivity on impairment charge, page 175. •Carbon abatement spend on procurement of carbon units and renewable energy certificates, page 187. •Useful economic lives of power generating assets, page 191. •Renewable PPAs accounted for as derivatives, page 206. | ||
Social licence and ability to access orebodies | M | H | H |
Varying by jurisdiction, climate action and support for a just transition are becoming increasingly critical for securing a social licence to operate and for supporting the competitiveness of both new greenfield developments and existing operations. This is driven by rising stakeholder expectations, as well as statutory requirements and national emissions targets in key jurisdictions. This is relevant for projects in the Pilbara and Simandou, where community and investor scrutiny is high. Meeting decarbonisation and sustainability expectations is important, as delays or restrictions could lead to increased project costs (both operating and capital expenditure), slower delivery of growth volumes, or – in extreme cases – project cancellation. While decarbonisation is the primary focus of this risk, broader environmental factors such as biodiversity, water use, and land impacts also play a role and may influence project outcomes. Additional detail on biodiversity and our water management risks and responses is on pages 47-48. | Financial statement impact: •Close-down, restoration and environmental cost, page 194. | ||
1.Forward looking view of underlying EBITDA is not a profit forecast. This consolidated measure, presented in nominal terms, is calculated using long-run consensus prices, volume
growth (on a consolidated basis) and unit cost decreases presented, using 2024 as a baseline.
2.Hard‑to‑abate emissions are those requiring technological advancement to enable viable long‑term abatement solutions. In our context, this includes emissions associated with anodes
and alumina processing, as well as diesel-related emissions that will need to be addressed through electrification.
3.Real terms (2025 prices).
4.This includes operating costs associated with fuel, natural gas, diesel, coal and non‑renewable power (including grid electricity and other non‑renewable energy sources as defined in
the Energy table on page 82).
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Strategic report | Our approach to sustainability | Climate
Impacts under alternate scenarios | Current and anticipated direct and indirect mitigation actions | |||||
Resilience - Slower economic growth and a delayed energy transition reduce demand and pricing for key transition materials, such as copper, lithium, and aluminium, across all timeframes. These materials are central to our growth strategy, and evolving customer expectations and uncertainty in processing technologies pose risks to competitiveness and revenue. Demand for high-grade iron ore also remains subdued in the medium to long term compared to more ambitious scenarios. Aspirational Leadership - Strong long-term demand for transition materials helps offset slightly lower demand for lower-grade iron ore. Annual demand for low-carbon aluminium and copper is expected to exceed levels seen in the Conviction scenario. Lithium continues to show robust growth, supporting portfolio expansion in transition materials. | We are scaling up production of transition materials to meet rising demand and evolving customer expectations. Our goal is to grow total output by approximately 3% per year (copper equivalent basis), supported by targeted investments in lithium growth through the Rincon project in Argentina and acquisition of Arcadium Lithium, copper expansions at Kennecott (US), and the development of high-grade iron ore capacity at Simandou (Guinea). We are also partnering with technology providers to develop low-carbon solutions suited to a broader range of ore grades. These efforts are embedded in our capital planning and portfolio decisions, helping to maintain market competitiveness over the long term. See page 6 for further details on our Group strategic context. | |||||
Resilience - Slower global climate action and lower commodity prices delay the development and deployment of low-carbon technologies, potentially pushing progress on hard-to-abate emissions back by a decade or more. In regions like Australia, where we operate emissions-intensive assets, this could hinder our ability to meet decarbonisation targets and reduce long- term competitiveness. Aspirational Leadership - Stronger climate ambition is expected to be accompanied by more supportive policy frameworks to accelerate the development and adoption of low-carbon technologies. In the short to medium term, this enables meaningful progress in reducing hard-to-abate emissions across key operations. Over the long term, successful deployment of these technologies can lower production costs and enhance competitiveness in a low-carbon economy. | We are advancing the development and adoption of low-carbon technologies as a core pillar of our decarbonisation strategy – aimed at reducing emissions, lowering production costs, and strengthening long-term competitiveness. Beyond 2030, abatement will increasingly depend on capital-intensive technologies that require further innovation, industry collaboration, and supportive policy frameworks to become commercially viable. We continue to collaborate with industry partners and engage with governments to support technology development, deployment and enabling policy settings. In aluminium, we are progressing ELYSIS™ and are also piloting hydrogen-based process heat through the Yarwun Hydrogen Calcination Pilot in Queensland. However, we have also experienced delays in deploying hard-to-abate technologies, including BEHT trials, due to technical complexity and low readiness, and uncertainty around renewable diesel expansion given high costs and unclear policy settings. For more detail on the low-carbon technologies we are piloting to address hard-to-abate emissions, refer to our 2025 CAP update on pages 59–61. | |||||
Resilience – Climate policies remain uneven. Carbon pricing stays low in regions like Guinea, while countries such as Australia see moderate cost increases. Weak global coordination limits near-term pressure but adds long-term uncertainty and dampens low-carbon investment. Slow energy transition prolongs fossil fuel reliance, heightening exposure to price swings and future policy shifts. Aspirational Leadership – Policies become ambitious and aligned, with large carbon price increases in key jurisdictions like Australia, Canada and Europe, increasing short-term costs. High-grade, low-emission iron ore assets (eg Simandou, IOC) gain advantage as demand shifts to greener materials. Faster decarbonisation expands renewable access, enabling asset repowering, reducing fossil volatility, and improving long-term cost stability. These developments could also significantly shape the competitiveness of Aluminium, depending on how regional energy and policy trends unfold. | We are reducing exposure to carbon pricing and regulation by decarbonising operations. Our CAP targets a 50% reduction in Scope 1 and 2 emissions by 2030 (vs 2018) and net zero by 2050. A key focus is shifting from fossil fuels to low-emissions energy. We already source 77% of our electricity from renewables, and are aiming to increase this to around 90% by 2030 through strategic investments and supply agreements to secure renewable power and reduce our emissions. We apply an internal carbon price to help understand the impact of potential future carbon policies and inform investment decisions. See our 2025 CAP update (pages 59–61) for details. | |||||
Resilience – Slower global climate action means stakeholder expectations around decarbonisation evolve more gradually, easing short-term pressure. However, in jurisdictions such as Australia and Canada, expectations from regulators, investors, and communities will still rise over time. If not addressed, this could create medium- to long-term challenges in securing approvals for new projects and maintaining support for existing operations. Aspirational Leadership – Coordinated and ambitious climate action drives consistently high stakeholder expectations across all time horizons. Meeting these expectations is essential to maintain access to capital, secure project approvals, and sustain our licence to operate. | Stakeholder expectations around climate change and decarbonisation are increasingly tied to our ability to maintain a social licence to operate. Our CAP provides a strategic framework that guides investment decisions and project development across the business, shaping how projects are assessed and approved, and integrating just transition principles into planning and decision‑making. Our CAP helps to inform site-level planning and approvals. Climate-related risks and opportunities are evaluated through environmental impact assessments and life cycle emissions analyses, alongside just transition‑focused impact assessments, enabling site teams to assess long‑term climate and social impacts, support stakeholder and community engagement, and ensure alignment with regulatory requirements and stakeholder expectations. We also have a portfolio of nature‑based solutions projects, co‑designed with communities and local partners to deliver positive outcomes for people, nature and climate. This helps minimise adverse impacts and optimise socio‑economic opportunities, supporting our social licence to operate. See page 69 for further detail on our just transition approach. | |||||
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Strategic report | Our approach to sustainability | Climate
Physical climate risk
We have assessed the current and anticipated impacts of physical climate risks on our business across short- (0 to 2 years), medium- (2 to 10 years), and
long-term (>10 years) horizons, outlining our ongoing and planned adaptation actions. Our approach integrates continuous measures to enhance resilience,
applying advanced weather and climate data for operational planning, emergency response, and long-term risk management, ranging from short-term severe
weather forecasts to long-term climate projections and flood modelling, as described in more detail below.
Risk description | Direct and indirect actions to adapt to risk | |
Acute | ||
Damage to infrastructure from extreme weather events, resulting in operational and supply chain disruption | ||
Coastal infrastructure Coastal sites are exposed to hazards including cyclones, storm surge, and inundation, which can damage critical assets such as shipping berths, ship loaders, stackers/reclaimers, and conveyors. This results in short-term emergency repairs and delays in goods movement. Over time, financial impacts may escalate due to rising maintenance costs, reduced asset life, and increased logistics complexity. Tailings storage facilities (TSFs) at coastal locations may also face erosion or containment risks. In both the intermediate and high emissions scenarios, by 2050, eastern Australia and New Zealand are currently classified as high risk with over a four-fold increase in annualised damage over this period. This is principally due to the potential effects of coastal inundation, surface water flooding and cyclonic winds. Other notable increases in risk are in Western Australia (an approximate 110% increase). The damages in the Pilbara are significant for the ports, but the mines and inland sites which represent the majority of asset values are relatively safe from climate damage. | Coastal infrastructure is designed in line with local engineering standards to withstand cyclones, storm surges and inundation. Where upgrades are not feasible, site-specific emergency plans are implemented, including evacuation protocols and procedures to protect personnel and maintain operational continuity. To reduce supply chain disruption, real-time hazard analytics are in use across a significant amount of tier 1-3 suppliers. Risk screening has been conducted to assess potential business interruption across interconnected operations, and planning is underway to address climate impacts on supply chains by identifying critical components, assessing vulnerabilities and developing contingency measures. Additionally, following the cyclones experienced in Western Australia during 2025, we undertook targeted upgrades to barriers and pumping infrastructure as part of our ongoing resilience program. Insights from associated reviews contribute to annual Pilbara‑wide flood‑preparedness studies. | |
Mining infrastructure Inland operations face heightened flood risk and geotechnical instability due to more intense and variable rainfall and storms. Infrastructure such as rail lines, production equipment, and electrical systems (motors, generators, substations, transformers) are vulnerable to inundation, wash-outs, and lightning damage. Short-term impacts include emergency response activation and asset downtime. Medium- to longer-term consequences include increased maintenance needs, asset degradation, and potential production losses. TSFs are also at risk of containment breaches. Annualised damage risk is currently relatively low across several inland regions, with both eastern and western Canada projected to experience approximately a 60% increase by 2050. Riverine flooding is expected to see the largest increase in site exposure under a high emissions scenario. | Inland mining infrastructure is exposed to flood risk, geotechnical instability and storm damage. Flood modelling is conducted across managed and non-managed sites using future climate projections to inform planning. Emergency response procedures, including safe exit routes and evacuation protocols, are regularly reviewed and updated to reflect evolving risks and lessons learned. Across both coastal and inland operations, TSFs are managed under Group-level safety and engineering standards. Global Industry Standard on Tailings Management (GISTM) assessments have been completed, including performance testing under extreme rainfall scenarios, and regular internal and external assurance checks are conducted. These risks are considered throughout the asset life cycle, from feasibility and design through to maintenance and renewal. | |
Health and safety risk to the workforce, and damage to mining infrastructure from extreme heat stress | ||
Rising maximum temperatures and more frequent heatwaves are increasing health and safety risks for our workforce, including dehydration and reduced productivity. Intense heat also affects the reliability of rail, mining and electrical infrastructure, with short-term impacts such as equipment outages and medium- to long-term effects including accelerated wear and increased maintenance costs. Productivity loss is expected to intensify in eastern Australia, New Zealand and eastern Canada by over 100% through to 2050 under a high emissions scenario, driven by increasing coastal and riverine flooding risks. Heat-related risks predominantly affect Western Australia, but remain consistently low in all regions under future emissions scenarios. | Workforce protocols are regularly updated to reflect climate projections, including acclimatisation, hydration, shaded rest areas and self-paced workloads. Electrical infrastructure is designed to meet local engineering standards and internal safety requirements, with climate resilience integrated into asset design. This includes planning for future maintenance and renewal programs to ensure continued performance under changing climate conditions. These measures are embedded across workforce planning, project design, and asset life cycle management, supporting long- term operational resilience. | |
Chronic | ||
Water shortages and seasonal variability affecting operations and energy supply | ||
Medium- to long-term changes in rainfall patterns and drought conditions are increasing the risk of water shortages across our operations. These shortages affect production, water treatment, dust control, environmental compliance and community relations. Seasonal changes to hydropower inflows are also impacting electricity generation and aluminium smelter operations. Financial impacts include increased operating costs and potential production losses if water availability is constrained. Drought risk has not been incorporated into the current Value at Risk (VaR) assessment, however, the existing pressures on water supply are expected to intensify as climate change drives more frequent and severe periods of water scarcity. Please see pages 47-48 for further detail on our water management risks and responses. See page 186 for the impact of water rights on our financial statements. | We manage water scarcity through a comprehensive water risk framework that guides the identification, assessment, and reduction of water-related risks across its operations. This framework ensures sufficient water availability for both operational needs and broader catchment stakeholders, even under conditions of seasonal variability and long-term climate change. Group-wide standards for water quality and management are applied consistently, supported by a centralised control library and asset-specific climate risk and resilience assessments. These measures are embedded in catchment-level planning, project design, and asset life cycle reviews, enabling proactive responses to drought conditions and shifting rainfall patterns. The approach also includes monitoring systems, forecasting tools, and adaptive infrastructure planning to support long-term water resilience. | |
Higher average temperatures and changing rainfall patterns impacting forest fire management and closure planning | ||
Over the medium to long term, there is an increased risk of wildfires due to prolonged heat and dry conditions, posing threats to workforce safety, operational infrastructure, and surrounding ecosystems. Closure objectives in terms of landform resilience and environmental management will also be impacted by these long-term climate shifts. Financial impacts include increased emergency response costs, asset damage, and long-term maintenance requirements to meet environmental obligations. Forest fires are expected to drive annualised damage risk in eastern Australia and South Africa through to 2050 under all future emissions scenarios. | Fire risks are addressed through site-specific emergency plans, fire prevention protocols, and collaboration with local authorities and Indigenous landholders. These are integrated into climate resilience planning and inform infrastructure design and maintenance to support fire-safe operations. Teams are trained in fire response, with regular drills to ensure readiness as fire-related risks increase under more extreme climate conditions. Closure planning includes climate change considerations to anticipate future conditions and guide adaptive strategies for landform design, water management, and vegetation selection. A more robust methodology is being developed to address seasonal extremes, identifying thresholds for interventions like erosion control and supplemental watering. Ongoing monitoring and periodic reviews ensure long-term resilience under changing climate conditions. | |
Annual Report on Form 20-F 2025 | 79 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Modelling financial exposure to physical climate risk
We have continued to progress our Value at Risk (VaR) analysis by
advancing physical climate change risk assessments through
financial modelling at the product group level. In 2025, we
completed assessments for our Aluminium & Lithium, Copper and
Iron Ore product groups. These assessments consider the potential
financial impacts of physical climate risks, including asset damage
and expected annual downtime, providing a view on business
interruption losses, thereby supporting a more robust understanding
of risk exposure across key parts of our portfolio.
Our climate physical risk modelling analysis, undertaken in
collaboration with an external consultant, estimated expected
financial losses from damage to individual assets, across various
time horizons and emission scenarios caused by physical climate
hazards. This modelling process and methodology considers
the following:
1) Asset portfolio: Includes a significant breadth of assets,
including mining assets and critical infrastructure components
integral to our operations. Only active industrial and mining facilities
were modelled, including non-managed operations. Corporate
offices and remote operation centres have been modelled but are
not presented in this analysis. Assets in our closure portfolio have
not been modelled, but are considered in bottom-up physical risk
and resilience assessments.
Each asset was assigned an asset archetype to represent its
vulnerability to different physical climate hazards. Archetypes reflect
typical construction types and operational characteristics and are
used to estimate how climate hazards may affect different
components of an asset. These archetypes form the basis for
calculating expected damage and productivity loss for each climate
scenario and hazard.
2) Climate scenarios, time horizons and hazards: Multiple future
time horizons are modelled, including 2030, 2040 and 2050.
Long‑term climate projections, including CMIP5 and CMIP6
datasets, were used to support hazard projections across all time
horizons. Nine climate hazards are modelled in this analysis,
including flooding (riverine and surface water), coastal inundation,
including sea level rise, extreme heat, cyclonic wind, extreme wind,
soil subsidence, forest fire and freeze-thaw.
Emission scenario | Description and outcome |
Intermediate emissions scenario IPCC Representative Concentration Pathway 4.5 (RCP4.5) | SSP2-4.51 | Emissions peak around 2040 and then decline, reflecting moderate global mitigation efforts. Relative to the 1986-2005 period, global mean surface temperature changes are likely to be 1.1°C-2.6°C higher by 2100, resulting in moderately increased physical climate impacts. |
High emissions scenario IPCC Representative Concentration Pathway 8.5 (RCP8.5) | SSP5-8.51 | Emissions continue to rise throughout the 21st century under limited global mitigation, and is considered a worst-case climate change scenario. Relative to the 1986-2005 period, global mean surface temperature changes are likely to be 2.6°C-4.8°C higher by 2100, leading to substantially more severe physical climate impacts. |
1.In the near term, RCP and SSP projections closely align and therefore can be
considered as comparable.
The intermediate scenario (RCP4.5) assumes global action begins
quickly and escalates steadily, capping temperatures around 2°C
through a faster transition and immediate climate action. The high-
emissions scenario assumes climate action is not achieved, with
emissions continuing to rise throughout the century and limited
action by governments and businesses.
These scenarios enable the Group to assess the resilience of its
strategy and operations by stress-testing performance under varying
temperature and emissions trajectories, identifying potential
vulnerabilities, and informing adaptation measures across the short-,
medium-, and long-term horizons discussed on page 78.
3) Annualised damage (AD): The output of the modelling is
calculated for each asset under various climate scenarios, time
horizons and hazards. Asset-specific outputs have been aggregated
to the site, region and Group level. Site‑level risk was calculated by
combining hazard results with asset replacement values, using
weighted averages where available. Where individual asset
valuations were not available, site level impacts were assessed on a
simple average basis. These results were then aggregated to
regional level by weighting each site’s results by its replacement
value, providing a consolidated view of physical climate risk across
broader operating areas.
AD, expressed as a percentage, represents the expected average
annual damage to an asset attributable to climate-related hazards
relative to a fixed value (e.g. $1 million). As such, an AD of 0.5%
would mean that for every $1 million of exposure, $5,000 could be
damaged, on average, in any given year.
Asset-specific outputs have been aggregated to the site, region and
Group level. Risk categorisation is based on the AD values, with
thresholds set at <0.2% for low AD risk, 0.2-1% for medium AD risk,
and >1% for high AD risk.
4) Productivity loss (PL): Each asset is evaluated under each
climate scenario, time horizon and hazard. PL, expressed as a
percentage, is the average proportion of the year an asset is
inoperable due to a climate-related hazard. For example, a PL of
0.5% translates to an asset losing 1.8 days of operation in a given
year due to climate conditions.
Estimates consider a stationary “do nothing” approach for our
operating assets and do not consider present or future controls, or
adaptation or resilience projects that will likely materially impact AD
or PL costs.
Due to the complexity of our value chain and the increased subjectivity of
loss attribution at present, losses associated with business interruption or
productivity loss are disclosed on a qualitative basis only.
Considerations and limitations Our climate physical risk modelling acknowledges limitations and uncertainties due to the dynamic nature of the earth’s climate and unpredictable future GHG emissions. These models represent plausible futures, not predictions, and are useful for assessing risks and informing strategic decisions. The accuracy of our analysis depends on the quality of asset data and assumes no changes in operations or design standards. Each asset is assigned an archetype, which may not fully capture its unique characteristic, affecting the risk profile, and site‑level results may be less representative where detailed inputs were unavailable. The modelling reflects only climate‑related physical hazards and current asset configurations, and does not include network effects or wider supply‑chain impacts. This analysis is iterative, evolving with new insights and projections. We plan to update it regularly to reflect changes in our asset base, guiding our physical resilience program. | ||
| For more information on physical risk and resilience, see riotinto.com/climaterisk |
Annual Report on Form 20-F 2025 | 80 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Annualised damage risk | Group and regional
Intermediate emissions scenario | High emissions scenario | |||||||||||||||||||
Present | 2030 | 2040 | 2050 | 2030 | 2040 | 2050 | Dominant perils | |||||||||||||
Rio Tinto Group | ||||||||||||||||||||
Africa | Soil movement | |||||||||||||||||||
Asia | Freeze thaw | |||||||||||||||||||
Australia East and New Zealand | Coastal inundation | |||||||||||||||||||
Australia West | Coastal inundation | |||||||||||||||||||
Canada East | Surface water flooding | |||||||||||||||||||
Canada West | Riverine flooding | |||||||||||||||||||
Europe and Middle East | Coastal inundation | |||||||||||||||||||
South America | Soil movement | |||||||||||||||||||
US | Riverine flooding | |||||||||||||||||||
Low risk (<0.2%) | Medium risk (0.2-1%) | High risk (>1%) | |||
Productivity loss results
The table above describes the risk to the portfolio as a result
of annualised damage, exclusive of business interruption or
productivity loss impacts. Initial analysis indicates that assets in
Western Australia are most likely to be impacted by productivity
losses as a result of climate change. The number of assets at risk of
significant disruption is forecast to more than double under a high
emissions scenario, driven by a significant rise in coastal inundation
risk. Assets in Europe are not at risk of significant PL disruption in
the short term, however from 2040 onwards the risk from coastal
inundation increases. Sites in other regions are lower risk, with less
than 1% of assets facing significant disruption from climate change,
even by 2050.
Overall, RCPs used follow broadly the same trajectory to 2040
before diverging, largely owing to carbon emissions already
embedded within the climate system. Therefore, physical risk
impacts out to 2040 will likely remain similar across all scenarios
assessed, with the level of physical risk post-2040 differentiating
more strongly under each climate scenario.
Where specific impacts have been identified through our Climate
Change Resilience Assessments, they have been noted accordingly.
Our adaptation actions remain consistent across all scenarios,
supported by investments in sustaining and development capital to
embed resilience into both asset design and ongoing operations.
We remain resilient to identified physical climate risks due to our
robust adaptation and resilience measures.
Annual Report on Form 20-F 2025 | 81 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Climate-related metrics and data
We disclose the quantitative climate-related targets we have set, supported by key metrics that help us track progress against our
decarbonisation objectives and manage our climate-related risks and opportunities. We have also disclosed other sustainability-related KPIs,
metrics and targets aligned with our objective of maintaining strong sustainability and social licence credentials, summarised on page 35 and
detailed within the “Our approach to sustainability” section of this Form 20-F. The table below presents the metrics used to assess
performance against our climate-related targets.
Climate-related target1, 2 | Climate related metric |
Reduce emissions from our own operations 50% by 2030, net zero by 2050 | –Scope 1 and 2 emissions from our operations |
Steel value chain targets | – See Scope 3 emissions: Partner to decarbonise our value chains table below. |
Alumina decarbonisation targets | |
Shipping decarbonisation targets | |
Procurement decarbonisation targets | |
Cross-industry metrics | Reference |
Amount and percentage of assets/business activities vulnerable to climate- related transition risks | –% and amount of Scope 1 GHG emissions covered under an emissions-limiting regulation, see table below –% and amount of hard-to-abate emissions, page 76 –% and amount of operating costs exposed to fossil fuels, page 76 |
Amount and percentage of business activities vulnerable to climate-related physical risks | –% and amount of assets exposed to unmitigated physical risks, see page 75, supplemented by annualised damage risk score, page 80 |
Amount and percentage of business activities aligned with climate-related opportunities | –Transition materials metrics: KTM and OTM production3, page 83 –% and amount of hard-to-abate emissions, page 76 |
Capital expenditure, financing or investment deployed towards climate- related risks and opportunities | –Decarbonisation spend, page 58 –Transition materials metrics: capital expenditure, page 83 |
Internal carbon price | –See page 73 for our internal carbon price range and scenario parameters used to inform consensus price forecasts. |
Percentage of executive management remuneration linked to climate- related considerations | –See pages 122-139 for our 2025 remuneration outcomes and the incorporation of climate-related measures in the STIP and LTIP. |
1.For the purposes of this disclosure, a climate-related target is a specific, measurable objective that includes a defined metric, baseline, and timeframe to track progress toward reducing
greenhouse gas emissions or achieving other climate outcomes. Any other goal or objective that does not include these measurable elements is referred to as a climate-related
commitment, which reflects a strategic aspiration rather than a formal target, and thus is not included in this table. Although these are not classified as formal climate-related targets for
purposes of this disclosure, they still represent formal commitments and are intended to hold us accountable for progress toward our stated climate objectives.
2.The targets and commitments presented relate solely to those identified and adopted by Rio Tinto. In addition to these, we seek to comply with all applicable climate‑related laws,
regulations and policy frameworks that contribute to national or regional climate objectives, including mechanisms such as Nationally Determined Contributions (NDCs) and the
Australian Safeguard Mechanism. While these frameworks establish requirements or objectives at a jurisdictional level, they are externally defined and are therefore not presented as Rio
Tinto targets.
3.We define climate-related opportunities as production and capital expenditure on key transition materials and other transition materials, as identified by the CA100+ Net Zero Standard for
Diversified Mining. The global energy transition, including growth in electric vehicles and renewable energy, is driving significant demand for aluminium, copper and lithium, creating an
opportunity for us to be a leading supplier of these materials.
2025 Disaggregation of total gross Scope 1 and Scope 2 (location-based) GHG emissions (equity basis) | Scope 1 | Scope 2 | Total |
Consolidated accounting group | 14.4 | 2.7 | 17.1 |
Other investee (e.g. investment in associate and joint venture) | 9.6 | 5.8 | 15.4 |
Total | 24.0 | 8.5 | 32.5 |
This table is the disaggregation of Scope 1 and Scope 2 GHG emissions between the consolidated accounting group and other investees. The grouping is determined by the financial
definitions, but the emissions are calculated using the equity share method and percentages of emissions per site aligned with the carbon accounting protocol. Scope 2 GHG emissions are
location-based.
Scope 1 GHG emissions covered under an emissions-limiting regulation (Mt CO2e) (equity basis) | 2025 |
Total gross global Scope 1 GHG emissions covered under emissions-limiting regulations (Mt CO2e) | 19.6 |
Total gross global Scope 1 GHG (Mt CO2e) | 24 |
% Global Scope 1 GHG emissions covered under an emissions-limiting regulation | 82% |
Emissions-limiting regulations applicable to Rio Tinto are listed in the Scope 1, 2 and 3 Emissions Calculation and Climate Methodology - 2025 Addendum,
available at riotinto.com/climatereporting (page 3).
Carbon credits retired towards net emissions, actual equity basis
Project description | Carbon credit type | Project type | Mitigation activity type | Certification scheme | Location | Vintage | 2025 Quantity retired for compliance | Quantity held for planned 2026 compliance (retired in 2026)1 |
Savanna fire management with Traditional Owner co-benefits | ACCU | Nature- based | Avoidance | Clean Energy Regulator | Australia | VY21-25 | 112,583 | 230,000 |
Human-induced regeneration | ACCU | Nature- based | Removal | Clean Energy Regulator | Australia | VY21-25 | 424,920 | 401,576 |
Total | 537,503 | 631,576 | ||||||
Total credits counted towards net emission for the current reporting period (year ended 31 December 2025) | 1,169,079 | |||||||
1.This is estimated based on our Scope 1 emissions for the period 1 July - 31 December 2025. See further required detail in our 2025 Sustainability Fact Book (available at riotinto.com/
sustainabilityreporting, tab “carbon credits”); and our 2025 Scope 1, 2 and 3 Emissions Calculation and Climate Methodology - 2025 Addendum (available at riotinto.com/
climatereporting, page 3).
Annual Report on Form 20-F 2025 | 82 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Scope 1, 2 and 3 GHG emissions – actual equity basis
Equity greenhouse gas emissions (Mt CO2e) | 2025 | 2024 | 2023 | 2022 | 2021 |
Scope 1 emissions | 24.0 | 23.0 | 23.3 | 22.8 | 22.8 |
Scope 2: Market-based emissions1, 2 | 7.5 | 6.9 | 9.3 | 9.6 | 10.1 |
Total gross Scope 1 and Scope 2 (market-based) GHG emissions (equity basis) | 31.5 | 29.9 | 32.7 | 32.3 | 32.9 |
Carbon credits3 | 1.2 | 1.0 | — | — | — |
Total net Scope 1 and Scope 2 GHG emissions (equity basis) (with carbon credits retired) | 30.3 | 28.8 | 32.7 | 32.3 | 32.9 |
Scope 2: Location-based emissions4 | 8.5 | 7.8 | 7.8 | 8.2 | 8.5 |
Scope 3 emissions | 575.7 | 569.8 | 572.5 | 572.3 | 558.3 |
Operational emissions intensity (t CO2e/t Cu-eq)(equity)5 | 6.1 | 6.3 | 7.0 | 7.1 | 7.3 |
Direct CO2 emissions from biologically sequestered carbon (eg CO2 from burning biofuels/biomass)6 | 0.8 | 0.5 | — | — | — |
Queensland Alumina Limited (QAL) is a tolling company and is 80% owned by Rio Tinto and 20% owned by Rusal. However, as a result of the Australian Government’s sanction measures,
QAL is currently prevented from tolling for Rusal and Rio Tinto is currently utilising 100% of the tolling capacity at QAL. Our 2025 equity emissions and our 2018 baseline have been
updated this year to include QAL emissions on the basis of Rio Tinto’s 100% offtake of production.
1.Scope 2: market-based emission purchases reported as zero include Oyu Tolgoi, ISAL aluminium, Resolution Copper, Weipa, Richards Bay Minerals and Kennecott Copper with surrendered
Renewable Energy Certificates (RECs). Escondida and QMM have contracts with energy attributes (EACs).
2.Scope 2: Market-based method counts commercial decisions to purchase the unique rights to renewable energy as zero emissions and applies a residual mix factor (or similar) to the remaining
MWh purchased. The residual mix factor is typically equivalent to the grid intensity with renewable attributes that have been sold removed from the factor. Scope 2 emission factors are consistent
with the Australian National Greenhouse and Energy Reporting Measurement Determination 2008 for Australian operations location-based reporting. For non-Australian operations, where possible,
factors are sourced from public grid level data or electricity retailers. For market-based reporting, Scope 2 includes the use of RECs and all contracts where we have the exclusive rights to the
renewable energy attributes. .
3.Carbon credits used towards our 2025 net emissions calculation include Australian Carbon Credit Units (ACCUs) that were retired for compliance for the period 1 January to 30 June
2025 plus a projection of the number of ACCUs we expect to retire for the period 1 July to 31 December 2025. This projection is based on our Scope 1 emissions for the period 1 July -
31 December 2025. For details, refer to the “Carbon credits” tab in our 2025 Sustainability Fact Book (available at riotinto.com/sustainabilityreporting).
4.Location-based method reflects the emissions grid intensity of the location which the operation is located and includes the percentage of renewables that make up the total unadjusted
grid intensity. Total gross Scope 1 and Scope 2 (location-based) GHG emissions (equity basis): 32.5 Mt CO2e.
5.Historical information for copper equivalent intensity has been restated in line with the 2025 review of commodity pricing to allow comparability over time.
6.GHG Protocol Corporate Accounting and Reporting Standard recommends disclosure of CO2 emissions from biologically sequestered carbon for transparency. These are from biofuel
use and are not classified as our Scope 1 emissions.
Energy - equity basis
2025 Total energy use breakdown by product group | Aluminium & Lithium | Iron ore | Copper | Other | Energy use (PJ) | Electricity generation and use (GWh) |
Total energy consumed (PJ) | 379.1 | 32.3 | 59.4 | 46.0 | 516.8 | 65,104.0 |
% of renewable electricity used | 77% |
Energy consumption includes energy from all sources, including energy purchased from external sources and energy produced (self-generated). Energy reported excludes exports of
energy to third parties.
Proposed updates to the IFRS S2 Climate-related Disclosures guidance includes energy purchased under power purchase agreements (PPAs) supported by renewable energy certificates
(RECs) or guarantees of origin (GOs), direct contractual arrangements for renewable electricity supply, renewable electricity from self-generation, and renewable energy consumed from
biomass-based fuels. Although these revisions have not yet been formally adopted, we have updated our reporting to reflect this definition, as it provides clearer alignment with the GHG
Protocol Scope 2 Guidance on what is considered renewable energy under a market-based method, as well as with our existing methodologies.
In 2025, changes were announced in relation to Minerals portfolio and alternative product group naming and structure. Lithium is added in with the renamed "Aluminium and Lithium" PG,
Iron ore of Canada moved into Iron Ore, Rio Tinto Iron and Titanium, Borates and Diamonds are reported in the table above under "Other".
For a more detailed breakdown of 2025 total energy use and electricity by Product Group, see the "Energy" tab in our 2025 Sustainability Fact Book (available at riotinto.com/sustainabilityreporting).
Scope 3 GHG emissions – equity basis
Sources of Scope 3 equity GHG emissions (Mt CO2e) | 2025 | 2024 | 2023 | 2022 | 2021 |
Upstream emissions | |||||
1. Purchased goods and services | 12.8 | 12 | 15.2 | 16.7 | 19.5 |
2. Capital goods | 1.8 | 1.7 | 2.2 | 1.8 | 1.9 |
3. Fuel and energy-related activities | 4.5 | 4.2 | 4.4 | 4.5 | 4.5 |
4. Upstream transportation and distribution | 7.1 | 6.5 | 6.8 | 6.5 | 5.9 |
5. Waste generated in operations | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 |
6. & 7. Business travel and employee commuting | 0.6 | 0.5 | 0.8 | 0.5 | 0.4 |
Downstream emissions | |||||
9. Downstream transportation and distribution | 2.9 | 2.1 | 2.4 | 2.3 | 2.7 |
10. Processing of sold products | |||||
–Iron ore | 398.5 | 395.9 | 399.9 | 386.6 | 364.6 |
–Bauxite and alumina | 135.2 | 134.0 | 127.1 | 138.2 | 144.5 |
–Titanium dioxide feedstock | 4.7 | 4.5 | 4.9 | 5.9 | 4.9 |
–Copper concentrate | 1.1 | 0.7 | 0.5 | 0.5 | 0.5 |
–Salt | 5.6 | 6.6 | 7.0 | 7.1 | 7.2 |
–Other | 0.8 | 1.0 | 1.2 | 1.6 | 1.6 |
Total | 575.7 | 569.8 | 572.5 | 572.3 | 558.3 |
Note: The sum of the categories may be slightly different to the Rio Tinto total due to rounding.
The following categories are excluded for the reasons provided:
Category 11 (Use of sold products): Not applicable since Rio Tinto does not produce fossil fuels or manufacture products applicable to this category.
Category 8 (Upstream leased assets); Category 12 (End-of-life treatment of sold products); Category 13 (Downstream leased assets); Category 14 (Franchises) - Not applicable since Rio
Tinto does not lease significant upstream and downstream assets or have franchised operations. In relation to end-of-life treatment, our products, and end use materials from our products,
are predominantly recycled.
Category 15 (Investments) -This category is for reporting emissions from company investments not already reported in Scope 1 and 2. Rio Tinto reports using the equity share approach, so all Scope
1 and 2 emissions from managed and non-managed investments are included in Scope 1 and 2 reporting and Scope 3 emissions within other applicable categories of Scope 3 reporting.
In 2025, Scope 3 emissions from acquired Arcadium Lithium assets were included as well as 100% of QAL.
For spend-based emissions, the currency and country-specific inflation factors have been refreshed, along with the full alignment to EXIOBASE dataset. Restatements to 2024 values are
reflective of these changes.
Simandou produced first ore in 2025, emissions from produced iron ore in Simandou are not yet included in Cat 10 and Cat 4/9. This is because the production quantities used in the
calculations are based on 2025 Fourth Quarter Operations Review Iron Ore Shipments.
For further details on Scope 3 reporting refer to the Scope 1, 2, and 3 Emissions Calculation and Climate Methodology 2025 Addendum (available at riotinto.com/climatereporting,
pages 4-6).
Annual Report on Form 20-F 2025 | 83 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Transition materials metrics
Our products are classified as key transition materials (KTM) and other transition materials (OTM), aligning with the CA100+ Net Zero
Standard for Diversified Mining Companies. Iron ore and gold are classified as transition neutral materials (TNM). Of the consolidated sales
revenue disclosed below, KTMs accounted for US$7,608 million (13%) in 2025 and US$4,728 million (9%) in 2024.
Commodity | Classification | Year ended 31 December | Emissions Mt CO2e5,6 | Production1 | Consolidated sales revenue2 $ millions | Capital expenditure3 $ millions | Operating assets4 $ millions | 2026 guidance Rio Tinto production share, unless otherwise stated |
Lithium7 ('000 tonnes) | KTM | 2025 | 0.2 | 46 | 944 | 1,365 | 9,783 | 61 to 64 LCE kt |
2024 | – | N/A | – | 155 | 1,088 | |||
Copper8 (mined) ('000 tonnes) | KTM | 2025 | 2025: 0.9 2024: 1.0 | 735 | 2025: 6,664 2024: 4,728 | 2025: 1,872 2024: 2,055 | 2025: 22,992 2024: 22,124 | Copper (consolidated basis): 800 to 870kt |
2024 | 624 | |||||||
Copper8 (refined) ('000 tonnes) | KTM | 2025 | 190 | |||||
2024 | 248 | |||||||
Silver (mined) ('000 ounces) | OTM | 2025 | 5,516 | 2025: 158 2024: 98 | Guidance not provided | |||
2024 | 4,236 | |||||||
Silver (refined) ('000 ounces) | OTM | 2025 | 1,838 | |||||
2024 | 2,314 | |||||||
Molybdenum ('000 tonnes) | OTM | 2025 | 5 | 2025: 263 2024: 159 | ||||
2024 | 3 | |||||||
Gold (mined) ('000 ounces) | TNM | 2025 | 464 | 2025: 1,922 2024: 797 | ||||
2024 | 282 | |||||||
Gold (refined) ('000 ounces) | TNM | 2025 | 117 | |||||
2024 | 144 | |||||||
Aluminium9 ('000 tonnes) | OTM | 2025 | 16.7 | 3,380 | 11,275 | 1,461 | 13,039 | 3.3 to 3.5Mt |
2024 | 16 | 3,296 | 9,363 | 1,256 | 12,017 | |||
Alumina9 ('000 tonnes) | OTM | 2025 | 6.4 | 7,593 | 1,272 | 289 | 689 | 7.6 to 8Mt |
2024 | 5.7 | 7,303 | 1,522 | 279 | 804 | |||
Bauxite9 ('000 tonnes) | OTM | 2025 | 0.9 | 62,400 | 2,848 | 231 | 2,105 | 58 to 61Mt |
2024 | 1 | 58,653 | 2,110 | 159 | 2,289 | |||
Minerals10 (‘000 tonnes/carats) | OTM/TNM | 2025 | 1.8 | See footnote 12 | 2,702 | 349 | 3,693 | See footnote 13 |
2024 | 1.7 | 2,954 | 379 | 3,662 | ||||
Iron ore11 ('000 tonnes) | TNM | 2025 | 3.7 | 290,639 | 28,376 | 6,612 | 26,678 | Total iron ore sales guidance: 343 to 366Mt14 |
2024 | 3.7 | 287,676 | 30,804 | 5,108 | 20,903 | |||
Thermal and metallurgical coal | Not applicable | 2025 | – | – | – | – | – | – |
2024 | – | – | – | – | – | – |
1.Production figures are measured according to Rio Tinto's ownership % share of each site. For further details on the % share, see pages 276-277 where these have been highlighted.
2.Consolidated sales revenue by product, as defined within Consolidated sales revenue by product on page 180, include 100% of subsidiaries’ consolidated sales revenue and Rio Tinto’s
share of the consolidated sales revenue of joint operations but exclude equity accounted units. The product analysis above does not include certain other products and freight services
disclosed in note 6 on page 180, which are not considered material.
3.Capital expenditure by product 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 as derived from the Consolidated Cash Flow Statement. The details provided include 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of
joint operations but exclude equity accounted units. The product analysis above excludes amounts that are not directly attributable to individual commodities.
4.Operating assets by product recorded above are the net assets of subsidiaries, joint operations and the Group’s share relating to equity accounted units adjusted for net (debt)/cash and
post-retirement assets and liabilities, net of tax, after the deduction of non-controlling interests. The product analysis above excludes amounts that are not directly attributable to
individual commodities.
5.Scope 1 and 2 emissions are measured on an equity basis and align to the Rio Tinto ownership % share used to record production values. For additional information on our emissions
methodology, see our 2025 Sustainability Fact Book.
6.The emissions in this table are Scope 1 and 2 GHG emissions (market-based) for the operating sites producing the commodity listed. The total differs from the full Group share reported
numbers as these exclude development, closure sites, marine shipping, aluminium recycling and corporate emissions.
7.Figures exclude Jadar following the November 2025 announcement that the project will be placed under care and maintenance.
8.Copper production from Oyu Tolgoi, Kennecott and Escondida has been certified under the Copper Mark system. The Copper Mark certification for Escondida has been obtained via
BHP which is the majority partner.
9.For a list of assets certified under the Aluminium Stewardship Initiative, see our 2025 Sustainability Fact Book.
10.Minerals comprise titanium dioxide slag (OTM), borates (TNM), salt (TNM) and diamonds (TNM).
11.Iron ore production refers to saleable production, after crushing, screening and beneficiation processes. For purposes of this disclosure, Simandou's 2025 production has been included,
which represents crushed ore at the mine gate.
12.2025 mineral production is as follows:
(a)Titanium dioxide slag, (‘000 tonnes): 975 (2024: 990)
(b)Borates (‘000 tonnes): 502 (2024: 504)
(c)Salt (‘000 tonnes): 4,750 (2024: 5,823)
(d)Diamonds (‘000 carats): 4,429 (2024: 2,759)
13.Our strategic reviews are advancing as planned, with the next phase focused on identifying the best path to unlock value. As such, we will no longer provide production guidance for Iron
and Titanium, and Borates, while this process is underway.
14.Wet metric tonne basis.
Annual Report on Form 20-F 2025 | 84 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
GHG emissions methodology
Our emissions reporting complies with the World Resources Institute
(WRI) and World Business Council for Sustainable Development
(WBCSD)’s Greenhouse Gas (GHG) Protocol: A Corporate
Accounting and Reporting Standard (Revised Edition) (2015), GHG
Protocol Corporate Value Chain (Scope 3) Accounting and
Reporting Standard (2013) and the Technical Guidance for
Calculating Scope 3 Emissions (version 1.0).
Emissions are reported using the equity share approach, which
attributes GHG emissions according to the company’s economic interest
in each asset. Where ownership changes occur during the reporting
year, emissions are apportioned to reflect the actual equity share over
time. For consistency in tracking progress against targets, we report
baseline emissions on an adjusted equity basis. This method applies our
current economic interest (equity share) to all operational emissions,
standardised to current corporate and asset ownership back through to
the 2018 base year (adjusted equity).
Adjustments are made for acquisitions and divestments; expansions
or closures do not result in changes.
Scope 1 emissions are direct GHG emissions from facilities we own or
control, including fuel use, onsite electricity generation, anode and
reductant use, process emissions, land management and livestock.
Emission factors are sourced from applicable national or regional
reporting schemes, or from the Intergovernmental Panel on Climate
Change (IPCC) Guidelines for National Greenhouse Gas Inventories,
where local factors are unavailable.
Scope 2 emissions arise from purchased electricity, heat or steam.
From 2023, we report Scope 2 using both the location-based
method, which reflects grid emissions intensity, and the market-
based method, which accounts for contractual instruments such as
renewable energy certificates and exclusive energy attribute
contracts. Emission factors are sourced from the National
Greenhouse and Energy Reporting (Measurement) Determination
2008 for Australian operations, and from public grid data or
electricity retailers for non-Australian operations.
Scope 2 emissions are reported on both an equity share and 100%
managed basis (where indicated).
Scope 3 emissions are indirect GHG emissions generated as a result of
activities undertaken across the value chain, either upstream or
downstream of our operations. These are calculated in accordance with
the GHG Protocol Corporate Value Chain (Scope 3) Accounting and
Reporting Standard (2013) and supporting technical guidance. Scope 3
emissions are reported on an equity share basis and include the most
material categories: processing of sold products (including iron ore,
bauxite and alumina), purchased goods and services, and upstream
transportation and distribution.
Total GHG emissions are calculated as Scope 1 plus Scope 2
emissions, minus carbon credits retired from recognised sources.
For further detail on calculation methodologies, key assumptions
and emission factors, see our 2024 Scope 1, 2 and 3 Emissions
Calculation and Climate Methodology report and the 2025
Addendum (available at riotinto.com/climatereporting).
Scope 1 and 2 emissions: Reduce emissions from our own operations | |
Target details | 2025 target: Reduce our net Scope 1 and 2 emissions by 15% by 2025 (relative to 2018 levels1) |
2030 target: Reduce our net Scope 1 and 2 emissions by 50% by 2030 (relative to 2018 levels1) | |
2050 target: Net zero by 2050 (relative to 2018 levels) | |
Target setting | |
Metric: | Operational emissions: Scope 1 and 2 GHG emissions, adjusted1 equity basis |
Objective: | Mitigation of Scope 1 and 2 GHG emissions |
Scope: | Applies to our economic interest (equity share) of all operational emissions, standardised to current corporate and asset ownership in the 2018 base year (adjusted equity). Our targets cover more than 95% of our operational emissions. Scope 2 emissions are calculated using the market-based method. |
Base year period: | 2018 |
Target type: | Percentage (2030), Absolute (2050) |
Influence of international climate agreements: | Targets support the Paris Agreement objectives |
Approach to target management | |
Third-party validation: | In 2021, an external assurance provider, provided limited assurance over the alignment of our targets with efforts to limit warming to 1.5°C. Scope 1 and 2 GHG emissions are audited to reasonable assurance annually by the third-party auditors which validates Rio Tinto's performance against target. In 2025, an external assurance provider, provided limited assurance over our 2025 progress reporting against our CAP in addition to its reasonable assurance of our Scope 1 and 2 emissions, and limited assurance of Scope 3 emissions. |
Review process: | Decarbonisation review sessions are held each year as part of the regular ExCo schedule to discuss the overall decarbonisation roadmap and abatement portfolio. This includes any future changes to our targets or commitments should they be necessary. |
Revisions to the target: | Any revision to the target will be disclosed and explained in the Rio Tinto Annual Report. No revisions have been made to the target in the current period. |
Greenhouse gas emissions targets | |
GHGs covered by the target: | CO2, CH4, N2O, HFCs, PFCs, SF6. (NF3 is not applicable) |
Gross vs. net emissions target: | Net emissions target: 50%, Gross emissions target: 40% |
Sectoral decarbonisation approach: | While there is no universal standard for determining the alignment of targets with the Paris Agreement goals, we concluded that our Scope 1 and 2 target for 2030 was aligned with efforts to limit warming to 1.5°C when we set it in 2021. Our targets were not set using a sectoral decarbonisation approach as there was no sector-specific methodology then. This remains the case today. |
Planned use of carbon credits: | The use of carbon credits towards our target will be limited to 10% of our 2018 baseline. In 2025, our net emissions include the use of Australian Carbon Credit Units (ACCUs) by our Australian assets to comply with the Safeguard Mechanism in the calendar year 2025. |
Performance against targets | |
Progress achieved Scope 1 and 2 GHG emissions (adjusted equity basis) (Mt CO2e)1 | Gross: 2025: 31.5 | 2024: 31.7 | 2018: 36.7 Net: 2025: 30.4 | 2024: 30.7 | 2018: 36.7 See page 55 for additional details on progress against our Scope 1 and 2 targets. |
1.We adjust our baseline to exclude reductions achieved by divesting assets and to account for acquisitions. Changes to our 2018 baseline include: Acquisition of Arcadium Lithium portfolio of
sites, change in equity to Winu from 100% to 70% due to the new joint venture with Sumitomo Metal Mining Co. Due to the adjusted economic interest relating to offtake of production in
Queensland Alumina (utilising 100% of tolling capacity), the baseline has been updated to reflect 100% instead of 80% share.
Annual Report on Form 20-F 2025 | 85 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Scope 3 emissions: Partner to decarbonise our value chains | ||||
Target details | Steel decarbonisation | |||
Support our customers’ ambitions to reduce their carbon emissions from blast furnace-basic oxygen furnace (BF-BOF) process by 20-30% by 2035. | Reduce our net Scope 3 emissions from IOC high- grade ores by 50% by 2035 relative to 2022. | Commission a shaft furnace (DRI) + Electric Smelting Furnace (ESF) pilot plant by 2028, in partnership with a steelmaker. | Finalise study on a beneficiation pilot plant in the Pilbara by 2026. | |
Target setting | ||||
Metric: | % reduction in carbon emissions from BF-BOF process | Net Scope 3 emissions from IOC high grade ores | Commissioning status of DRI + ESF pilot plant | Completion status of beneficiation pilot study |
Objective: | To partner with customers and suppliers to decarbonise the steel value chain by supporting their emissions reduction ambitions and accelerating the development and adoption of low-emissions technologies, thereby reducing our Scope 3 emissions. | |||
Scope: | Customer operations (Scope 1 and 2 for steelmakers using BF- BOF process) | Processing emissions from Rio Tinto IOC high-grade iron ore | Shaft furnace DRI + ESF pilot plant | Beneficiation pilot plant in the Pilbara |
Base year period: | Customer specific baseline year | 2022 | Target date is 2028, base year does not apply | Target date is 2026, base year does not apply |
Target type: | Percentage | Percentage | Action-based (engagement and process improvement, not expressed as absolute or percentage emissions reduction) | |
Influence of international climate agreements: | Our Scope 3 steel decarbonisation targets and commitments have not been influenced by international agreements. | |||
Approach to target management | ||||
Third-party validation: | We engage an external assurance provider to provide limited assurance on our Scope 3 emissions calculations and progress made in relation to the 4 most significant categories of our Scope 3 footprint: steel and aluminium value chains, shipping and procurement. Scope 3 emissions reduction targets and methodologies have not been independently validated, however, they have undergone our internal review and validation processes and are subject to regular review to ensure continued relevance. See review process below. | |||
Review process: | Decarbonisation review sessions are held each year as part of the regular ExCo schedule to discuss the overall decarbonisation roadmap and abatement portfolio. This includes any future changes to our targets or commitments should they be necessary. | |||
Revisions to the target: | The following targets have been revised in the year: –Commission a shaft furnace – direct reduced iron (DRI) + electric smelting furnace (ESF) pilot plant by 2028 (revised from 2026), in partnership with a steelmaker. –The BioIronTM pilot plant work, and associated commissioning target, has been paused. See page 65 for further detail. | |||
Greenhouse gas emissions targets | ||||
GHGs covered by the target: | CO2, CH4, N2O | |||
Gross vs. net emissions target: | Not applicable to action-based targets. All other steel decarbonisation Scope 3 targets are set on a gross basis, as we do not currently plan to use or retire carbon credits to achieve these targets. | |||
Sectoral decarbonisation approach: | Not applicable to action-based targets. All other steel decarbonisation Scope 3 targets have not been derived using a sectoral decarbonisation approach. Instead, we have set these targets based on what we can achieve practically and effectively under each category. | |||
Planned use of carbon credits: | Not planned. | |||
Performance against targets | ||||
Progress achieved as at year-end: | See pages 65-67 for detail on how we are progressing against our Scope 3 targets. | |||
Annual Report on Form 20-F 2025 | 86 | riotinto.com |
Strategic report | Our approach to sustainability | Climate
Scope 3 emissions: Partner to decarbonise our value chains (continued) | ||||||
Target details | Shipping decarbonisation | Alumina | Procurement | |||
Reach net zero shipping by 2050 across our shipping footprint | 10% of time-chartered fleet to be running on low-carbon fuels by 2030 and progressing to 100% of time-chartered fleet by 2040 | Reduce emissions intensity by 40% by 2025 and deliver 50% intensity reduction by 2030 | In 2025, partner with at least 2 bauxite customers with the goal of improving energy efficiency and reducing emissions | Engage with 50 of our highest-emitting suppliers on emissions reduction | Implement decarbonisation evaluation criteria for new sourcing in high- emitting categories | |
Target setting | ||||||
Metric: | Net shipping emissions (Mt CO₂e) | % of time-chartered fleet operating on low-carbon fuels | Shipping emissions intensity | Number of partnerships | Number of suppliers engaged | Decarbonisation evaluation criteria for new sourcing in high- emitting categories |
Objective: | To decarbonise our shipping footprint by improving energy efficiency, transitioning to low-carbon fuels, and partnering with industry stakeholders to achieve net zero shipping by 2050. | Improve energy efficiency and reduce emissions in alumina refining through technical solutions | Reduce upstream Scope 3 emissions by driving supplier accountability and integrating decarbonisation into procurement decisions | |||
Scope: | Emissions from the shipping of our products | Time-chartered fleet only; applies to use of low‑carbon fuels | Emissions from Rio Tinto-managed bulk marine shipping | Emissions from alumina refining at customer operations processing Rio Tinto bauxite | Upstream emissions from goods and services procurement | Upstream emissions from procurement in high-emitting categories |
Base year period: | No base year | No base year | 2008 (IMO’s baseline year) | No base year | No base year | No base year, ongoing |
Target type: | Absolute | Percentage | Intensity | Action-based target (engagement and process improvement, not expressed as absolute or percentage emissions reduction) | ||
Influence of international climate agreements: | Our Scope 3 targets and commitments have not been influenced by international agreements. | |||||
Approach to target management | ||||||
Third-party validation: | We engage an external assurance provider to provide limited assurance on our Scope 3 emissions calculations and progress made in relation to the 4 most significant categories of our Scope 3 footprint: steel and aluminium value chains, shipping and procurement. Our emissions intensity reduction target and methodology was independently reviewed and validated by DNV Maritime Advisory Services and an external assurance provider in 2023. Other shipping decarbonisation targets and methodologies have not been independently validated, however, they have undergone our internal review and validation processes and are subject to regular review to ensure continued relevance. See review process below. | |||||
Review process: | Decarbonisation review sessions are held each year as part of the regular ExCo schedule to discuss the overall decarbonisation roadmap and abatement portfolio. This includes any future changes to our targets or commitments should they be necessary. | |||||
Revisions to the target: | Any revision to the target will be disclosed and explained in the Rio Tinto Annual Report. No revisions have been made to the target in the current period. | |||||
Greenhouse gas emissions targets | ||||||
GHGs covered by the target: | CO2, CH4, N2O | CO2, CH4, N2O | CO₂, CH₄, N₂O, SF₆, HFCs, and PFCs. | |||
Gross vs. net emissions target: | All Scope 3 targets are set on a gross basis, as we do not currently plan to use or retire carbon credits to achieve these targets. | |||||
Sectoral decarbonisation approach: | Our shipping targets have been informed by sectoral decarbonisation pathways, including those established by the International Maritime Organization and industry initiatives such as the First Movers Coalition, which guided the timing and ambition of our emissions intensity reductions and fuel transition commitments. | Alumina and procurement Scope 3 targets have not been derived using a sectoral decarbonisation approach. Instead, we have set these targets based on what we can achieve practically and effectively under each category. | ||||
Planned use of carbon credits: | Not planned. | |||||
Performance Against Targets | ||||||
Progress achieved as at year-end: | See pages 65-67 for detail on how we are progressing against our Scope 3 targets. | |||||
Annual Report on Form 20-F 2025 | 87 | riotinto.com |
Strategic report | Our approach to sustainability
Governance
Our reputation as a business that operates with high levels of integrity depends on the actions we take
and decisions we make each day. We expect our people to uphold the highest standard of integrity,
act ethically, and do the right thing for each other, for our partners and for the communities where we
operate.
Transparent, values-driven
performance culture
We empower our people to seek guidance when faced with ethical
or business dilemmas – both to prevent incidents from occurring,
and to protect them and others from harm. The way we treat our
people, our partners, the environment and the communities where
we work, and how we conduct business, is what makes us a
responsible partner of choice.
Code of Conduct and annual training
The Way We Work is our Code of Conduct (“the Code”). It sets the
foundation for doing business the right way and reflects our
significant ambitions for a safe and sustainable future. Our Code
applies to everyone who works for Rio Tinto, including our Board,
Executive Committee, employees and third parties working under
the direction of Rio Tinto.
Our employees are required to complete annual mandatory training
on the Code. In 2025, we tailored the training to employee needs
through adaptive learning. This training sets the foundation for how
we work, guiding ethical decision making and reflecting the safe and
respectful environment we want to achieve for our people. The
annual training incorporates topics across all areas of the Code and
is designed to help employees and contractors understand what’s
expected of them, providing guidance for making decisions
consistent with our values of care, courage and curiosity.
The 2025 annual online training was released in September and has
been completed by 21,693 employees. The offline version has been
completed by 17,182 employees. Our Executive Committee
attended an immersive face-to-face session on the Code.
In addition to annual mandatory Code training, the Ethics and
Compliance team delivered additional risk-based face-to-face
training on anti-bribery and corruption, data privacy, anti-trust and
trade sanctions. A total of 7,519 employees received this training in
2025. We also provided business integrity training to our third
parties on a risk basis.
| For information on our Code of Conduct, see riotinto.com/ethics |
Ethics & Compliance program developments
We have continued to enhance our ethics and compliance program
to align with our risk profile and to changes in the regulatory
landscape across the countries where we operate. During the year,
we undertook a maturity assessment of our program, which
concluded our program has a higher level of maturity than
benchmarked peers.
In 2025, we:
•Continued to enhance our compliance monitoring framework and
are in the process of implementing an analytics-driven compliance
monitoring solution to complement our existing program.
•Undertook ethical perception assessments across selected sites
to better understand the ethical culture and inform compliance
priorities.
•Further embedded our Compliance Champions program,
developing and leveraging a site-level network of employees to
promote an ethical culture.
•Simplified our Data Privacy Compliance Program. This included
integrating our Privacy Threshold Assessment and Privacy Impact
Assessment into a single Privacy Risk Review, while continuing to
ensure compliance with new and changing privacy legislation
across the jurisdictions where we operate.
•Integrated Data Governance (previously within Information
Systems & Technology) with Data Privacy, focusing on a
business-oriented operating model and framework.
•Launched our new Third Party Risk Management (TPRM) system
that introduces automated review and clearance of low-risk third
parties, allowing analysts to spend more time assessing higher-
risk third parties. For more information, see our
2025 Sustainability Fact Book.
•Issued a new Sanctions & Trade Controls Standard and continued
to strengthen our Sanctions Compliance Program through
enhanced third-party sanctions screening processes, deep dive
reviews across parts of the business with higher sanctions
exposure, and increased employee training.
•Issued a new myVoice Standard covering Rio Tinto’s
whistleblower and confidential reporting program.
| For further information on the ethics and compliance program, see riotinto.com/ethics |
Annual Report on Form 20-F 2025 | 88 | riotinto.com |
Strategic report | Our approach to sustainability | Governance
myVoice, our confidential reporting program
A respectful and inclusive workplace, with a strong ethical
culture that reflects our values, must include a safe space where
individuals can speak up with confidence and without fear of
retaliation. A strong culture of speaking up enables us to identify and
address potential issues swiftly, respond appropriately, minimise
risk, and ensure care for our people and the communities where
we operate.
The myVoice program enables confidential and anonymous
reporting, including protected whistleblower disclosures. myVoice is
operated by the Ethics & Compliance function, with regular reporting
to the Board Audit and Risk Committee and the Group Ethics &
Compliance Committee (a sub-committee of the Executive
Committee).
The number of reports received to myVoice1 continues to increase
yearly, with 1,9422 reports in 2025 (2024: 1,920). The reporting rate
per 100 headcount rose to 3.41 in 2025 from 3.38 in 2024, with 51%
(2024: 54%) of reporters willing to reveal their identity. The
percentage of anonymous reporters has increased each year since
2022. Of the 608 reports investigated, the substantiation rate was
43% (2024: 44% of 642).3
myVoice by case class (and % of substantiated reports)
2025 | 2024 | 2023 | 2022 | 2021 | ||||||
Case rate (number of reports per 100 headcount) | 3.41 | 3.38 | 2.91 | 2.81 | 2.57 | |||||
Reports received1 | 1,9422 | 1,920 | 1,614 | 1,459 | 1,246 | |||||
Reports received | Reports substantiated3 | Reports received | Reports substantiated³ | Reports received | Reports substantiated | Reports received | Reports substantiated | Reports received | Reports substantiated | |
Business integrity | 298 | 37% | 307 | 42% | 249 | 52% | 210 | 52% | 154 | 36% |
Personnel | 1,341 | 48% | 1,340 | 46% | 1,201 | 55% | 1,034 | 65% | 819 | 57% |
Health, safety, environment | 156 | 75% | 139 | 52% | 107 | 61% | 120 | 47% | 186 | 22% |
Communities | 13 | 8% | 8 | 0% | 5 | 0% | 10 | 0% | 6 | 0% |
Information security | 53 | 30% | 55 | 40% | 22 | 0% | 17 | 67% | 18 | 36% |
Finance | 6 | 0% | 7 | 25% | 3 | 50% | 1 | 0% | 0 | 0% |
Other | 75 | 0% | 64 | 40% | 27 | 0% | 67 | 33% | 63 | 14% |
1.Each myVoice report may include multiple allegations. Where figures in this table slightly differ from previous reported periods, this can be due to factors including reopening of reports,
case class reclassification, internal reviews and quality assurance processes.
2.Includes 86 reports related to the former Arcadium Lithium business, 27 received directly to myVoice platform following re-branding and formal launch of the Code of Conduct on 30
September 2025.
3.The number of reports substantiated as a percentage of total reports investigated by Ethics & Compliance. A report is substantiated if one or more of the allegations contained in the
report is substantiated. Can include reports received in previous year.
Care Hub
In 2025 we continued to embed the Care Hub, which is a
confidential service to access support, and explore non-investigative
resolution options. Care Hub helps manage psychosocial risks,
address systemic hazards and prevent harm.
The service is available to anyone directly or indirectly impacted by
disrespectful or harmful workplace behaviours, such as bullying,
harassment, sexual harm, racism and discrimination.
Care Hub supported 702 individuals in 2025 (up from 568 in 2024).
208 non-investigative resolutions were facilitated during the year, an
increase from 167 in 2024.
| For more information and periodic updates on the results of the myVoice program, visit riotinto.com/ethics |
Transparency
We believe greater transparency and accountability are key to
earning and building trust with partners, encouraging sustainable
business practices, and translating taxes and royalties into
beneficial outcomes for communities who host our operations.
Being transparent about our tax payments, mineral development
contracts, beneficial ownership, and our stance on a range of other
sustainability issues – such as climate change – allows us to enter
into open, fact-based conversations with our stakeholders. This
leads to a better understanding of everyone’s roles and
responsibilities.
We are a founding member of the Extractive Industries
Transparency Initiative (EITI), and a signatory to The B Team
Responsible Tax Principles. We report in full the requirements of the
“Tax” standard (GRI 207) of the Global Sustainability Standards
Board of the Global Reporting Initiative, including full country-by-
country reporting.
Political integrity
We do not favour any political party, group or individual, or involve
ourselves in party political matters. We prohibit the use of company
funds to support political candidates or parties. Our business
integrity procedure includes strict guidelines for dealing with current
and former government officials and politicians. They cannot be
appointed to senior employee positions or engaged as consultants
without the approval of executive management and our Chief Ethics
and Compliance Officer. We regularly engage with governments and
share information and our experiences on issues that affect our
operations and our industry.
We join industry associations where membership provides value to
our business, investors and other stakeholders. We outline the
principles that guide our participation and the way we engage, and a
list of the top 5 associations by membership fees paid, in our 2025
Industry Association Disclosure. We also track and disclose how we
engage on climate policy issues, disclosing when the policies and
advocacy positions adopted by industry associations differ materially
from ours. We continue to strengthen our approach and disclosures
on industry associations.
| For more information, see riotinto.com/industryassociations |
Voluntary commitments, accreditations
and memberships
We take part in global, national and regional organisations and
initiatives that inform our sustainability approach and standards,
helping us better manage our risks. These independent
organisations and initiatives assess and recognise our performance,
and we participate in industry accreditation programs for some of
our products.
| For more information about our voluntary commitments, accreditations and memberships see riotinto.com/sustainabilityapproach |
Annual Report on Form 20-F 2025 | 89 | riotinto.com |
Strategic report
Our approach to risk management
To deliver our strategy, in a way that creates value for
our customers, shareholders, employees and partners,
it is essential that we take risks responsibly.
 | Image: The Safe Production System team at the Laterrière plant, Canada. |
Our risk culture fosters awareness, transparency, and informed decision-making. It reflects our values, is consistent with our Code of
Conduct, The Way We Work, and is implemented through our risk management framework. Our risk management framework includes our
risk appetite, which outlines the level of uncertainty we are willing to accept to achieve our strategic objectives. It is developed with input from
our leadership, approved by the Board, and is used throughout our risk management process.
This integration ensures we are effectively managing threats and opportunities to our business and host communities, as well as protecting
the environments where we operate.
Our risk management process
Plan | Do | Check | Act |
Define risk appetite Define the types and amount of risk we are seeking to take to deliver our strategy. | Perform risk assessment Identify, analyse, and evaluate risks to strategy and objectives. | Perform risk management Implement controls and actions to manage risks within appetite. | Perform risk assurance Verify controls are designed and operating effectively to manage risks within appetite. Undertake improvement actions where required. | Derive risk insights Derive insights from risk information to inform strategic and operational decisions. | Improve and embed Build risk capability and culture so active risk management is embedded in how we operate. |
Our risk management process follows international standards and
operates as a Plan-Do-Check-Act cycle. This provides a systematic yet
flexible approach to respond to the dynamic business environment we
operate in. When identifying and assessing risk, we take into account
both financial and non-financial impacts on our business and people, the
environment and communities where we operate. We assess the
materiality of each risk, enabling us to escalate when necessary and
prioritise resources where they are most needed. We actively monitor
how well we manage risks that are material to our objectives by verifying
that the design of our response (actions and controls) remains resilient
to changing conditions, and by checking the implementation of the
response against our actual performance. We enhance the check step
by applying the 3 lines of defence approach, which remains a core part
of our risk management framework. We look to continually improve
and strengthen our risk culture and framework through enhancing
processes, tools and training.
We use an enterprise-wide risk management information system
with integrated tools and applications to capture, manage and
communicate material business risks. These tools support decision-
making and prioritisation through transparent, up-to-date data.
Our risk management governance structure
Our risk management framework is structured to assign
accountability for risks to leaders who are in the best position to
address them, while offering support via specialist capabilities and
expertise along with independent review and oversight.
The Board approves our risk appetite and oversees our material risks.
The Board is supported in monitoring a range of material financial and
non-financial current and emerging risks by the Audit & Risk and
Sustainability committees. The Audit & Risk Committee also monitors
the overall effectiveness of our risk management and internal control
frameworks, our material risks and assurance activities. We are on
schedule to meet the additional requirements that come into effect in
2026 under Provision 29 of the UK Corporate Governance Code (2024)
with respect to assessing the effectiveness of material controls. To
identify and assess our material controls, we adopted a top-down, risk-
led methodology anchored to the Group’s material risks and our risk
appetite. Dry run design and operating effectiveness testing of material
controls was performed during 2025. We have also established a
methodology for assessing any future deficiencies should they be
identified. Regular updates have been provided to the Audit & Risk
Committee, with the Board maintaining visibility throughout the process.
In 2026, we will transition into business-as-usual, with continuous testing
and monitoring. For more information see the Audit & Risk Committee
report on page 115.
Pages 115-121 details the Audit & Risk and Sustainability
committees’ activities in 2025. The Board’s extensive range of skills,
experience, and knowledge contributes to a well-rounded
perspective on risk management.
The Board has delegated responsibility for day-to-day management of
the business to the Chief Executive, and through him, to other members
of the Executive Committee under a Group delegation of authority
framework. Our product groups and functions, along with risk-oversight-
focused executive and operational committees, support the Chief
Executive in the effective management of our material risks. Our
Enterprise Risk function is responsible for defining and maintaining the
Group’s risk framework and methodology globally, supporting risk
assessments and delivering timely insights to executives and the Board.
Under our 3 lines of defence model, all employees are empowered to
own and manage the risks that arise within their area of responsibility.
Our Enterprise functions are our 2nd line of defence, providing deep
subject matter expertise and objective challenge. Our Internal Audit
function provides independent assurance. Where required by law, or
where deemed appropriate, we also engage third parties to provide
independent assurance. Where risks are material to the Group, they
are escalated to the Risk Management Committee and, as
appropriate, to the Board or its committees.
Annual Report on Form 20-F 2025 | 90 | riotinto.com |
Strategic report | Our approach to risk management
Our risk management governance structure – continued
Stakeholders
Board and Board sub-committees
Audit & Risk
Committee
Sustainability
Committee
People &
Remuneration
Committee
Delegations of authority
Chief Executive
Executive Management Committee
Aluminium &
Lithium product
group
Copper product
group
People and safety first, Operational excellence, Excel in development,
Strong sustainability and social licence
Risk appetite, risk culture, values
Executive steering committees
Risk Management Committee
Financial risks
Operational
risks
Enterprise Risk Management
Enterprise functions with specialist capabilities and expertise
Group Internal Audit
Third party assurance
Emerging risks
We operate in an industry where the risk environment is increasingly
complex and interconnected. Our diverse portfolio and geographical
footprint add to this complexity. Where sufficient information is available,
we capture material risks that can impact our production, reputation and
long-term prospects. These risks are outlined in the following Risk
factors section. The Board reviews these risks periodically.
Emerging risks are new or evolving risks that are highly uncertain by
their nature and have the potential to significantly impact the Group.
These emerging risks are typically driven by external forces, are
less predictable and lack precedents, making them challenging to
assess. We monitor these risks closely for changes in the external
factors and reassess them as they evolve and new information is
discovered.
Geopolitical risks remain a dominant global concern. They create
uncertainty through geoeconomic confrontations, tensions between
major economies, regional conflicts, and sanctions which could disrupt
supply chains and market access. We continue to monitor global
developments closely and stress-test the resilience of our business
model, including our supply chains, through scenario planning to identify,
and implement where possible, potential management responses. See
material risk 3 for more details.
Climate change and the low-carbon transition remain critical
emerging risks, with the potential to have a significant impact on our
business and the communities where we operate. Physical risks
such as extreme weather events, water scarcity, and shifting
temperature patterns have the potential to disrupt production, impact
supply chains, damage infrastructure and reduce workforce
productivity. Transition risks continue to arise as governments and
regulatory bodies implement emissions regulations and carbon
pricing mechanisms, alongside growing investor and societal
expectations for sustainability.
Nominations &
Governance
Committee
Chair’s
Committee
1st
line of
defence
Iron Ore product
group
Group functions
2nd
line of
defence
Compliance and
reporting risks
Portfolio and
investment risks
3rd
line of
defence
These can influence market access, asset valuations and capital
allocation strategies. We actively monitor and assess the potential
impact of these on our operations and business through scenario
planning. Where appropriate, we take a proactive approach to
responding to the uncertainty. This includes committing to
decarbonisation targets and associated capital expenditure,
optimising our portfolio for future demand, and developing deeper
understanding of exposures across the business using the latest-
generation climate analytics. See material risk 11, and our climate
disclosures on page 53 for further details on our Climate Action
Plan.
Artificial intelligence (AI) and advancing technologies continue
to unlock transformative opportunities for businesses, driving
efficiency, data-driven insights, and accelerating innovation.
They also have the potential to introduce complex and evolving
risks, including data privacy breaches, intellectual property
challenges, misinformation and cybersecurity vulnerabilities.
Emerging concerns include regulatory uncertainty and
implementation of AI systems, which could impact compliance
obligations or result in loss of sensitive information. Generative AI is
a fast-moving and evolving technology where vendors often
prioritise feature release over security. As a result, increased use of
AI also comes with incremental cyber security risk. In response, our
approach prioritises robust monitoring and internal upskilling to
understand this evolution, supported by strong governance
processes to support its use. See material risk 13 for more details.
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Risk factors
The risk factors outlined in this section could materially affect our ability to meet our strategic objectives. They could
materialise from a combination of external or internal factors and manifest or escalate from
any part of the business as an opportunity or threat.
To ensure we can prioritise our efforts and resources, we regularly
assess the materiality of our material risks in terms of potential
consequence and likelihood. This allows us to implement responses
that reduce negative impacts and realise the benefits of
opportunities. These assessments, and the effectiveness of our
associated responses, reflect management’s current expectations,
forecasts and assumptions. They involve judgement and can be
affected by unexpected changes in our external environment. While
we endeavour to reduce negative impacts to our business, some
inherent risks remain. However, we closely monitor these threats
and have developed business resilience plans.
The risk factors mapped below are based on our managed
operations. We are also exposed to risks associated with our
non-managed joint ventures which, if they arise, may have
consequences on our reputation and finances. We seek to bring an
equal level of rigour and discipline to our managed and
non-managed joint ventures as we do to our wholly-owned assets,
where possible through engagement with partners, embedded
representatives and influence, in line with applicable laws and
shareholder agreements.
The timeframe of our risk factors is within 5 years, unless explicitly
stated otherwise. We frame our risk factors in the context of our
overarching strategic objectives: People and safety first; Operational
excellence; Excel in development; and Strong sustainability and
social licence. These are summarised in the table below in order of
consequence and likelihood.
Current assessment of risk factors
As of February 2026
Material risks | Objective | Oversight | ||
1 | Keeping our people safe and healthy | l | People and safety first | Sustainability Committee |
2 | Maintaining the integrity and operating performance of our assets | l | Operational excellence | Sustainability Committee |
3 | Maintaining our resilience to geopolitical events | l l | Operational excellence Excel in development | Board |
4 | Meeting our evolving customer requirements | l l | Strong sustainability and social licence Operational excellence | Audit & Risk Committee |
5 | Maintaining the trust of Indigenous Peoples and communities | l | Strong sustainability and social licence | Sustainability Committee |
6 | Managing our impact on the environment - water, biodiversity and nature | l | Strong sustainability and social licence | Sustainability Committee |
7 | Exercising responsible mineral asset stewardship | l | Operational excellence | Audit & Risk Committee |
8 | Maintaining effective relationships with governments and civil society | l | Strong sustainability and social licence | Board |
9 | Managing closure costs and outcomes responsibly | l l | Operational excellence Strong sustainability and social licence | Sustainability Committee |
10 | Delivering value from growth | l | Excel in development | Board |
11 | Preparing our business for climate change | l | Strong sustainability and social licence | Board |
12 | Operating with integrity, and meeting legal and regulatory requirements | l | Strong sustainability and social licence | Audit & Risk Committee |
13 | Managing cyber security | l | Operational excellence | Audit & Risk Committee |
14 | Demonstrating sound financial stewardship | l l | Operational excellence Excel in development | Audit & Risk Committee |
15 | Building an adaptive and resilient workforce in line with our culture and values | l l l | People and safety first Operational excellence Strong sustainability and social licence | People & Remuneration Committee |
1.Free cash flow or business value (net present value).
2.Considering effectiveness of existing controls.
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Risk to People and safety first objective
Keeping our people safe and healthy Nothing is more important than the safety, health and wellbeing of our employees and contract partners. Caring for each other is one of our values. It’s part of who we are and the way we work. We are dedicated to working together to create a physically and psychologically safe and healthy workplace for everyone. |
Risk oversight | Strategic objectives |
Sustainability Committee | l People and safety first |
Change vs 2024 | Stable |
Risks (threats)
Our mining, processing and logistics activities are inherently
hazardous. Our employees and contract partners are exposed to
safety and health risks which may have previously caused, and
have the potential in the future to result in, debilitating injuries, single
or multiple fatalities, or chronic health conditions. For example:
•Mass transportation events: land (rail and road), air and marine
transportation events (such as aircraft crashes, vessel collisions
or groundings, train derailments and road accidents) can occur
while transporting people and products across our value chain.
•Workplace exposures: such as working with and around heavy
equipment, at height, with high voltage or pressurised equipment,
or with exposure to hazardous chemicals or carcinogens can
expose people to potentially serious injuries, fatalities or chronic
health conditions.
In addition to impacting the health and wellbeing of our people,
these risks can erode stakeholder confidence, expose us to legal
and regulatory claims, and ultimately impact our social licence.
These risks may be further heightened as we expand into more
complex operating environments, work with business partners and
contractors, or in response to evolving regulatory changes.
Key exposures
Mass transport (aviation and buses) at Oyu Tolgoi, Simandou,
Rincon. Fall from height, falling objects, vehicles and driving and
contact with electricity, which are prevalent across most of our
operations. Workplace exposures to physical and chemical hazards,
including carcinogens at aluminium smelters (Kitimat, Bell Bay, New
Zealand, Tomago and Boyne), Oyu Tolgoi, Iron Ore Company
of Canada.
Risk to Operational excellence objective
Maintaining the integrity and operating performance of our assets Managing major hazard risks is essential to ensuring safe and reliable operations, preventing significant production impacts and delivering on production plans. Effective asset management supports our drive for operational excellence by managing risks and enabling consistent operational outcomes. |
Risk oversight | Strategic objectives |
Sustainability Committee | l Operational excellence |
Change vs 2024 | Increasing |
Risks (threats)
We engage in mining, processing and logistics activities that have
the potential to trigger major hazards that can cause significant
harm, including the loss of lives and livelihoods, damage to personal
property and sites of cultural or community significance, and
irreparable damage to the environment. A major hazard event could
cause significant damage to our assets, decrease mineral reserves,
and disrupt our operations and value chain for a prolonged period.
This would impact our financial performance and financial position,
exposing us to litigation, legal action, government investigations,
additional regulations or restrictions, fines and penalties, and
damaging our licence to operate and reputation.
We are exposed to major hazards such as:
•process safety – eg explosions or fires
•functional safety – eg loss of control of underground hoisting
devices or autonomously operated vehicles
•underground operations – eg failure in underground excavations
•slope geotechnical stability – eg slope failure in our surface mines
•tailings and water storage facilities - eg a catastrophic failure of
a facility.
We rely on an expansive portfolio of complex infrastructure and
assets to mine, process and transport our products. A failure to
adequately maintain and operate the assets could contribute to a
major hazard event, result in fatalities or damage to areas of
community or cultural significance, negatively impact the
environment, disrupt critical infrastructure (including shared ports,
rail and roads), undermine the delivery of operational plans or
reduce efficiencies. A systemic underperformance of our fleet of
assets can negatively impact financial performance and
organisational value.
Key exposures
Underground operations at Oyu Tolgoi, Kennecott and Diavik. Slope
geotechnical risks across our surface mining operations, such as at
Kennecott and our Iron Ore business in Western Australia and on
the Kitimat-Kemano power line. Tailings and water storage facilities
across our Aluminium, Iron Ore, Copper and Closure assets.
Process safety related to operating smelters and refineries in
Copper, Aluminium & Lithium and across assets in our former
Minerals product group (currently under strategic review) such as
Sorel-Tracy. Functional safety at our underground shaft operations
in Oyu Tolgoi and Resolution, and autonomous train and haulage
operations across our Iron Ore assets. Critical ports, such as
Dampier in Western Australia.
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Exercising responsible mineral asset stewardship Our ability to convert mineral asset into Mineral Reserves in an efficient and timely manner impacts our competitive advantage and licence to operate. Optimising the recovery of the underlying mineral asset and delivering the planned production underpins our business plans and ultimately our strategic objectives. Orebody knowledge and mine planning are among the most significant drivers to extracting maximum value from our mineral assets for all our stakeholders. |
Risk oversight | Strategic objectives |
Audit & Risk Committee | l Operational excellence |
Change vs 2024 | New risk |
Risks (threats)
Failure to optimise our portfolio through effective and efficient
stewardship of mineral assets may adversely impact our financial
performance, jeopardise our competitive advantage and impact
shareholder returns. This may arise from:
•limited orebody knowledge may lead to poor mine planning and
capital allocation, leaving value unextracted
•inconsistent Mineral Resource to Mineral Reserve conversion can
reduce project returns
•inadequate planning processes may increase operational
variability.
•poor operational discipline results in deviation from optimal mining
sequences and long-term value
•low orebody utilisation may impact social licence and government
support amid growing resource scarcity
•delayed access and approvals could hinder orebody data
collection and timely reserve conversion.
Managing cyber security The cyber threat landscape is evolving, with new and increasingly sophisticated threats emerging continuously. Effective management of cyber security risk enables us to adapt to new threats, protect our systems and people, comply with data privacy requirements and sustain operational resilience. |
Risk oversight | Strategic objectives |
Audit & Risk Committee | l Operational excellence |
Change vs 2024 | Stable |
Risks (threats)
Cyber threats are evolving and becoming more advanced, including
through the use of artificial intelligence to bypass security controls.
Cyber incidents can occur due to malicious external or internal
attacks, either directly or through third-party business partners. They
may also arise from inadvertent human error.
A successful cyber attack has the potential to disrupt critical systems
at one or more of our assets, which may reduce operational
productivity and cause workforce disruption, adversely impact the
safety and health of our people, result in environmental damage or
expose sensitive personal or commercial information related to
customers, contractors, employees or suppliers. Such disruptions,
or unauthorised publication of exfiltrated data following a data
breach, may adversely affect our financial performance and expose
us to fines, penalties, litigation, regulatory or government action and
attract negative media attention impacting our reputation.
The rise of digitisation has driven greater convergence and
connectivity between traditional information technology (IT) and
industrial and operational technology (I&OT) environments. This
increases our attack surface and introduces new vulnerabilities,
particularly as we adopt emerging, autonomous or disruptive
technologies, which may include artificial intelligence, to automate
and inform our decision-making and operating environment.
For more information see US disclosure, Cyber security on
pages 346-348.
Key exposures
Our greatest exposures continue to be through our global
ecosystem of third-party suppliers, and the rapid development of
new projects, with an increasing reliance on technology.
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Demonstrating sound financial stewardship We are committed to maintaining financial flexibility to ensure resilience as we operate through the cycle, absorb market volatility and withstand economic shocks, while delivering long-term value and executing our strategy. This is achieved through disciplined financial management, a strong balance sheet, and prudent capital allocation, underpinned by our focus on unlocking the full potential of our portfolio of assets and growth options. |
Risk oversight | Strategic objectives |
Audit & Risk Committee | l Operational excellence l Excel in development |
Change vs 2024 | Stable |
Risks (threats)
A deteriorating economic or political environment could arise from or be
compounded by events such as:
•falling commodity prices (reduced cash flows and profitability)
•trade actions (increased tariffs, retaliations, input costs inflation
and sanctions)
•creeping expropriation and liquidity constraints (restricts access to
funding, increases cost of capital).
These may impact our financial performance and operating resilience.
Operational and capital project plans are approved based on
assumptions, including price and economic assumptions, Resource and
Reserve estimates, and stripping, waste volume and productivity
estimates. Actual performance may differ significantly as a result of a
range of factors, including weather or natural disaster-related
disruptions, workforce or community action, supply chain disruptions,
operational incidents and asset failures. Significant underperformance to
plan may negatively impact financial performance, the financial returns
on investments and ultimately shareholder returns.
Failing to prevent breaches of international standards, regulations or
governance obligations, such as external misstatements, inaccurate
financial or operational reporting, or a breach of our continuous
disclosure obligations, could impair investor confidence and our
reputation, and attract fines, penalties, litigation and regulatory action.
Risk to Strong Sustainability and
social licence objective
Meeting our evolving customer requirements We are focused on delivering the materials the world needs both now, and for the future. Our customers’ requirements are evolving rapidly, primarily driven by decarbonisation imperatives and shifting geopolitical and global trade dynamics, and security of supply requirements. We see a need for low-carbon solutions across iron ore, aluminium, copper and lithium - materials that are also critical to the energy transition. Responding to evolving market and customer requirements is essential if we are to remain a partner of choice, retain stakeholder trust, and position our portfolio for long-term success in a low-carbon economy. |
Risk oversight | Strategic objectives |
Audit & Risk Committee | l Strong sustainability and social licence l Operational excellence |
Change vs 2024 | Stable |
Risks (threats)
Commodity prices have historically been and may continue to be
subject to significant volatility. Long-term price volatility with
sustained low prices or increases in costs may negatively impact our
financial performance through lower revenues and compressed
margins. Failure to maintain strong relationships with customers and
respond to their evolving requirements may exacerbate the impact
of commodity markets by reducing our market share. Factors that
may contribute to this include:
•geopolitical fragmentation and rising resource nationalism could
disrupt trade flows and increase compliance complexity, while the
persistence of reconfigured supply chains may remain uncertain.
•adverse macroeconomic conditions could exacerbate the impact
of geopolitical tensions by reducing demand for our products.
•uncertainty around the pace of transition across the steel value
chain, and the implications for the quality of iron ore products
required to support future low-carbon technologies, may decrease
the demand for some of our products or increase our operating
costs.
•our aluminium customers are also seeking low-carbon and
circular solutions, while increased recovery and recycling may
reduce demand for our products.
Key exposures
Pilbara low-mid grade ores. Low-carbon aluminium products
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Maintaining the trust of Indigenous Peoples and communities Strong trust-based relationships with Indigenous Peoples and local communities are a cornerstone of the way we do business. A breakdown in these relationships poses a significant threat to our projects and operations, reputation, and long-term viability. Recognising that our success is interdependent with the wellbeing and support of host communities, we prioritise building respectful partnerships that deliver tangible benefits, support community aspirations, and build the mutual trust required to achieve our strategic objectives. |
Risk oversight | Strategic objectives |
Sustainability Committee | l Strong sustainability and social licence |
Change vs 2024 | Stable |
Risks (threats)
Access to land and resources may be impacted if we are not
considered a trusted partner that respects Indigenous and human
rights, and sustainably improves social and economic outcomes in
host communities.
Other potential company impacts include operational disruption,
security incidents, expropriation, increased government regulation
and delays in approvals, which may threaten the growth and
development pipeline, investment proposition, title, carrying value of
assets, and successful closure outcomes.
Business activities may also strain relationships with Indigenous
Peoples, where actual or perceived damage of lands and waters or
significant cultural values (cumulative or acute) occurs without
consultation and consent. This may result in loss of trust with
Indigenous Peoples.
Key exposures
Communities surrounding the Simandou project, Pilbara operations,
Richards Bay Minerals, QIT Madagascar Minerals and Oyu Tolgoi
and closure sites including Argyle, Ranger and Gove. Indigenous
Peoples across our assets in Australia, Canada, Argentina and US.
Managing our impact on the environment - water, biodiversity and nature Producing the materials the world needs means we have an impact on the environment. We are dependent on nature to run a successful business, with many of our projects and operations in remote locations and sensitive environments. Our activities have the potential to cause harm through disturbance, emissions and water use. Our operations and projects require proactive management to minimise and restore potential impacts to water, biodiversity, land and air across the mining lifecycle and value chain. |
Risk oversight | Strategic objectives |
Sustainability Committee | l Strong sustainability and social licence |
Change vs 2024 | Stable |
Risks (threats)
Mining transforms landscapes, with impacts to habitats and
ecosystems across soil, flora and fauna. Several of our operations
and future development opportunities exist within, or close to,
sensitive biodiverse regions. Building and maintaining our
social licence requires us to demonstrate our capability to
manage the operational and cumulative impacts of our activities and
protect ecosystems, through reliable practices and technological
solutions.
Our business portfolio is changing against a backdrop of
increasingly complex regulatory and stakeholder expectations,
and an expanding operational footprint. Inadequate management of
environmental risks may adversely affect our ability to
obtain development approvals, permits or licences, expose us to
litigation, erode our social licence and negatively impact our
financial performance.
Water is fundamental to our business continuity and a significant
ongoing interest for host communities, Indigenous Peoples,
regulators and investors. Complexities for managing water across
our operations and projects include water resources (operational
needs, shared supply, scarcity), dewatering (access to ore, aquifer
impacts), and wastewater management (quality, quantity).
Key exposures
Our operations in the Pilbara region, Guinea, QIT Madagascar
Minerals, South America, and the Saguenay–Lac-Saint-Jean region.
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Maintaining effective relationships with governments and civil society We rely on the support of, and partnerships with, governments across all aspects of our business. Governments are our partners (equity) in key projects and determine our operating and investment environment through political support, financing, licences and permits, regulation and trade policy. Civil society at local, national and international levels can influence public, policy, and investor perspectives on both the industry as a whole and Rio Tinto. Proactive relationship-building and engagement with government representatives, and influential civil society actors, across Rio Tinto’s footprint is therefore vital to maintain our social licence. |
Risk oversight | Strategic objectives |
Board | l Strong sustainability and social licence |
Change vs 2024 | New risk |
Risks (threats)
Weak relationships with governments could put key partnerships,
projects and operations at risk and make Rio Tinto less able to
navigate the complex geopolitical dynamics, country-specific risks,
resource nationalism, and regulatory landscapes that govern how
and where we operate now and in the future. This may hinder our
growth agenda and negatively impact financial performance,
investment returns and our financial position.
Weak relationships with civil society can lead to mistrust and
opposition, influencing governments, regulators, and other
stakeholders. This may reduce our access to growth opportunities,
delay or derail projects, and increase costs through withdrawn
support or legal action.
Our activities across multiple jurisdictions can expose us to
reputational and political contagion. Our actions, relationships, or
policy positions in one jurisdiction may influence perceptions and
responses from governments, regulators, and civil society in other
jurisdictions.
Managing closure costs and outcomes responsibly We are committed to being responsible operators throughout the entire life of our assets, from discovery to closure. We maintain a sustainable business strategy by ensuring decisions that impact closure are informed by effective strategic planning and governance over the life of the asset. We continue to plan and execute closure in partnership with our internal and external stakeholders, such as host communities, Indigenous Peoples, regulators and joint venture partners, embedding closure considerations throughout the entire lifespan of our assets. |
Risk oversight | Strategic objectives |
Sustainability Committee | l Operational excellence l Strong sustainability and social licence |
Change vs 2024 | Stable |
Risks (threats)
Closure costs may increase over time due to changes in the Group’s
portfolio, stakeholders’ and community expectations, regulations,
standards, technical understanding and techniques.
Key exposures
Pilbara mines near-term closures (including Channar and Eastern
Range), Gove, Argyle, Energy Resources of Australia (ERA),
Mange-Garri, Diavik, as well as legacy sites.
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Preparing our business for climate change Climate-related risks, both physical and transition, pose significant opportunities and challenges to achieving our strategic objectives. Transition risks arise from the shift to a low-carbon economy, such as regulatory changes, evolving stakeholder expectations, energy market volatility, and the pace of technological innovation in our industry, suppliers and our customers. Physical risks are direct impacts of climate change and increasingly affect our assets, infrastructure, communities and value chains. |
Risk oversight | Strategic objectives |
Board | l Strong sustainability and social licence |
Change vs 2024 | Stable |
Risks (threats)
Societal, political, business and investor expectations on the
performance and pace of companies’ ability to deliver climate
actions is rapidly evolving. This may result in changes or opposing
positions in the laws, regulations, and policies across the different
jurisdictions where we operate. A misalignment between these
expectations, laws, regulations and policies, and our performance in
delivering our targets may give rise to adverse regulatory or legal
responses and impair government support for our investment
ambitions, impair investor confidence and the associated pricing of
our securities, cause financial institutions to limit or withhold
financing or impact customers’ or suppliers’ willingness to do
business with us. This could adversely affect our financial
performance and ability to deliver our growth agenda. We could also
be exposed to climate-related litigation.
The carbon transition relies on new technologies, some of which do
not yet exist, or which cannot economically operate at the required
scale. Delays (from the failure of suppliers to deliver products, or the
inability of governments or other external parties to deliver electrical
grid upgrades with sufficient decarbonised power, or supply chain
disruptions, or skilled labour shortages) or quality issues in securing
the required renewable energy projects could hinder our progress in
achieving our 2030 and beyond decarbonisation targets.
Carbon compliance costs are rising due to existing climate policies
and may increase as emissions regulations tighten, and carbon
pricing expands.
Acute hazards (eg heat stress) threaten safety, communities, and
operational continuity, while chronic changes (eg sea level rise)
strain infrastructure and workforce resilience. Recent events have
exceeded climate change projections, highlighting the sensitivity of
current risk analysis and the need for adaptive planning using
conservative assumptions.
Key exposures
Physical climate risks across several priority assets, including
Pilbara Ports, New Zealand Aluminium Smelter and hydropower at
BC Works. Achieving our 2030 target is contingent on successful
outcomes at our Boyne Smelters Limited (BSL) and Tomago
Aluminium operations.
Operating with integrity, and meeting legal and regulatory requirements Our determination to deliver operational excellence and maintain strong sustainability and social licence credentials is underpinned by our commitment to act with integrity and comply with applicable legal and regulatory requirements. These expectations are outlined in our Code of Conduct (The Way We Work) and our Group policies, standards and procedures, published on our website at riotinto.com/policies. |
Risk oversight | Strategic objectives |
Audit & Risk Committee | l Strong sustainability and social licence |
Change vs 2024 | Stable |
Risks (threats)
A serious breach in our operations, or in our value chain, of
anti-corruption legislation or sanctions, data privacy, human rights,
anti-trust rules, or inappropriate business conduct, could result in
serious harm to our people or contractors, and significant legal,
reputational and financial damage.
Key exposures
Argentina (lithium assets), Guinea (Simandou), and Mongolia
(Oyu Tolgoi)
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Risk to Excel in development objective
Delivering value from growth Delivering our growth strategy depends on our ability to develop resources faster and more competitively than others, while maintaining our social licence. Success also relies on strategic acquisitions, partnerships and effective exploration (greenfield and brownfield). Delivering value from growth requires active portfolio management directing capital toward the most value-accretive organic and inorganic growth options. Project development requires complex multi-year planning and execution and carries significant delivery risk. |
Risk oversight | Strategic objectives |
Board | l Excel in development |
Change vs 2024 | Stable |
Risks (threats)
A failure to optimise our portfolio for the commodities needed by
society now and into the future could compromise our competitive
advantage, adversely impacting our financial performance and
shareholder returns. Factors that may contribute to this include:
•High-quality deposits are increasingly scarce, and those that
are known require advances in processing technology, significant
capital investment or may negatively impact our sustainability
credentials.
•As studies and projects progress, they are susceptible to changes
in: approvals, societal expectations, or underlying commercial or
economic assumptions, which could impact economic viability.
Project portfolios may be disproportionately exposed to increasing
capital intensity driven by escalation and inflation.
•Acquisition-driven growth carries inherent risks, particularly in
selecting the right targets, accurately assessing synergy potential,
and unlocking long-term value. Misjudgements in strategic fit,
cultural alignment, or integration complexity can erode expected
returns. Assumptions underpinning value creation, such as cost
synergies or operational improvements, may not materialise as
planned.
•Partnering with other companies, business partners and
contractors may accelerate growth opportunities. They may also
introduce the potential for financial, reputational and legal risks if
their actions are misaligned with our values and standards,
particularly if we do not operate or have a controlling interest in
the venture.
Key exposures
Simandou, increasing approval timeframes in the Pilbara, lithium
market downturn post Arcadium acquisition, Oyu Tolgoi underground
expansion, Rincon and Resolution.
Risk to Operational excellence and
Excel in development objectives
Maintaining our resilience to geopolitical events Geopolitical tensions are creating increased volatility, characterised by conflicts, trade restrictions, protectionism and geopolitical fragmentation. Escalation of these tensions has the potential to reorganise global alliances, commodity demand and trade flows, impacting our strategic and business objectives, particularly if we fail to anticipate changes in the geopolitical environment in a timely manner. These events have the potential to disrupt key markets, operations, supply chains and investments, as well as our ability to enter new markets, and to trade freely across borders. |
Risk oversight | Strategic objectives |
Board | l Operational excellence l Excel in development |
Change vs 2024 | Increasing |
Risks (threats)
Further deterioration of the global political and economic order can
lead to additional trade barriers (economic sanctions, tariffs, or other
trade restrictions imposed by or on countries where we operate, or
into which we sell or deliver our products, or from where we procure
key supplies), increased resource nationalism (royalties, taxes,
direct ownership), and competition for resources. This may lead to
higher costs or other limitations on our ability to conduct business
freely and openly. Trade wars could lead to a drop in global gross
domestic product and make it more difficult to sell our products in
key markets, adversely impacting the price we obtain or the volumes
we can sell for our products.
Geopolitical actions (trade policy or armed conflict) may also result
in physical disruptions of shipping routes or the closure or blocking
of ports or land (road and rail) logistics. This can materially disrupt
our ability to sell our products or import key supplies, adversely
affecting our results of operations and financial position.
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Risk to People and safety first, Operational
excellence and Strong sustainability and
social licence objectives
Building an adaptive and resilient workforce in line with our culture and values Delivering our strategy relies on a skilled, engaged and inclusive workforce that operates safely, collaboratively and in alignment with our values. Our ability to attract, develop and retain the right people, foster respect and inclusion, maintain constructive labour relations, and support workforce health and wellbeing – including psychological safety and adaptability to change – underpins our operational performance, safety outcomes and social licence to operate. |
Risk oversight | Strategic objectives |
People & Remuneration Committee | l People and safety first l Operational excellence l Strong sustainability and social licence |
Change vs 2024 | Stable |
Risks (threats)
Failing to attract and retain critical talent can erode our capabilities
and culture, and hinder our ability to achieve our strategic
objectives. Tight labour markets and competition for core and
differentiating capabilities, particularly in regions with limited local
talent pools or lower brand recognition, may lead to elevated
turnover, role vacancies and greater reliance on contractors,
impacting productivity, safety performance and cost efficiency.
Failing to respond to evolving societal expectations around
inclusion, wellbeing and purpose may lead to lower engagement,
reduce discretionary effort and adversely impact our reputation.
An evolving industrial relations landscape across our operating
regions presents continued challenges in sustaining constructive
engagement and compliance. Legislative changes, workforce
activism and divergent union expectations may lead to disputes,
operational disruption and reputational impacts. This could
negatively impact our financial performance and the anticipated
financial returns on investments.
Key exposures
Availability of critical capabilities and industrial relations volatility.
Annual Report on Form 20-F 2025 | 100 | riotinto.com |
Strategic report | Our approach to risk management
Longer-term viability statement
Context
Our business model forms the foundation for delivering our strategic
objectives, as outlined on page 12. Our planning process
incorporates detailed modelling of macro-economic scenarios and
applies a range of assumptions that reflect both internal dynamics
and external market factors. Within our risk management
framework, we actively monitor and evaluate risks to ensure the
resilience of our business plan and underlying model.
Viability assessment process and key assumptions
The assumptions underpinning our business plan and macro-
economic forecasts are most reliable over the initial 3-year period.
Our longer-term viability assessment extends to the first 5 years
(2026–2030) of the plan, enabling a detailed evaluation of risks that
could materialise early on and allowing us to stress test the plan for
potential challenges emerging later in the period, albeit with a lower
degree of certainty.
The Risk factors section outlines risks that could materially affect
our performance, prospects, or reputation. For the viability
assessment, we focused on those risks with the potential to
significantly impact the Group’s liquidity and solvency, while also
considering non-financial implications.
We estimate the financial impact of each risk using internal
macro-economic and business analysis, supported by
benchmarking against comparable internal and external data.
Where appropriate, a probabilistic approach was applied to quantify
risk exposure and potential outcomes.
The first 5 years of the Group’s business plan were stress tested
against these risks to evaluate their effect on long-term viability,
including the potential need for additional financing facilities. Beyond
liquidity and solvency, the assessment also considered other key
financial metrics, such as dividend capacity, all of which were
subjected to robust stress testing.
Results of assessment
The Group’s balance sheet strength and liquidity are able to absorb
the financial impact of each of the scenarios modelled in the stress
and sensitivity analysis.
We have a suite of management actions available to preserve
resilience through the period of assessment, including accessing
lines of credit, reducing organic and inorganic growth capital
expenditure and raising capital. The viability of the Group under all
the scenarios tested remained sound.
The resilience of the Group’s business model is largely underpinned
by 4 factors:
•the competitive position and diversification of our commodities
portfolio
•our disciplined capital allocation framework and commitment to
prudent financial policy
•the payout shareholder return policy being based off underlying
earnings
•the focus on sustainability and strengthening our social licence,
which allows for growth and maintaining access to debt capital
and bank loan markets.
Therefore, considering the Group’s current position and the robust
assessment of our emerging and material risks, the Directors have
assessed the prospects of the Group over the next 5 years (until 31
December 2030) and have a reasonable expectation that we will be
able to continue to operate and meet our liabilities as they fall due
over that period.
In the long term, there are 5 material risks with long-dated
consequences that could have a material impact on our viability:
•meeting our evolving customer requirements
•managing our impact on the environment - water, biodiversity and
nature
•exercising responsible mineral asset stewardship
•managing closure costs and outcomes responsibly
•delivering value from growth
The Risk factors section provides further details including current
management responses.
Longer-term viability assessment scenario description | ||||||
Scenario 1 The occurrence of independent and correlated global risks resulting in a major protracted macroeconomic crisis within the next 5 years. | Scenario 2 (cluster event) A catastrophic event occurs, resulting from a major operational incident such as a tailings and water storage facility failure, extreme weather event, underground or geotechnical event or a cyber event that impacts operational systems. It assumes multiple fatalities, disruption to operations and significant financial impacts. We have assumed 3 such events occur within the assessment period, each with significant but varied impacts. | Scenario 3 A risk driven by evolving societal expectations and changing laws affecting the timelines for delivering sustaining or growth projects. We have assumed an impact on our near-term key projects and considered available alternatives. The financial impact assumed here is in addition to any non-financial impact, such as reputational harm. | ||||
Related material risks | ||||||
3: Maintaining our resilience to geopolitical events | 2: Maintaining the integrity and operating performance of our assets | 5: Maintaining the trust of Indigenous Peoples and communities | ||||
14: Demonstrating sound financial stewardship | 13: Managing cyber security | 8: Maintaining effective relationships with governments and civil society | ||||
10: Delivering value from growth | ||||||
Annual Report on Form 20-F 2025 | 101 | riotinto.com |
Strategic report
Five-year review
Selected financial data
The selected consolidated financial information below has been derived from the historical audited consolidated financial statements of the
Rio Tinto Group. The selected consolidated financial data should be read in conjunction with, and qualified in their entirety by reference to,
the 2025 financial statements and notes thereto. The financial statements as included on pages 157-228 have been prepared in accordance
with International Financial Reporting Standard (IFRS) as defined in “The basis of preparation” section to the financial statements on
page 158.
Rio Tinto Group
Income statement data
For the years ending 31 December Amounts | 2025 $m | 2024 $m | 2023 $m | 2022 $m | 2021 $m |
Consolidated sales revenue | 57,638 | 53,658 | 54,041 | 55,554 | 63,495 |
Group operating profit1 | 14,936 | 15,653 | 14,823 | 19,933 | 29,817 |
Profit after tax for the year | 10,249 | 11,574 | 9,953 | 13,048 | 22,597 |
Basic earnings for the year per share (US cents) | 613.7 | 711.7 | 620.3 | 765.0 | 1,304.7 |
Diluted earnings for the year per share (US cents) | 608.4 | 707.2 | 616.5 | 760.4 | 1,296.3 |
Dividends per share | |||||
Dividends declared during the year | |||||
US cents | |||||
–interim | 148.0 | 177.0 | 177.0 | 267.0 | 376.0 |
–interim special | – | – | – | – | 185.0 |
–final | 254.0 | 225.0 | 258.0 | 225.0 | 417.0 |
–special | – | – | – | – | 62.0 |
Dividends paid during the year (US cents) | |||||
–ordinary | 373.0 | 435.0 | 402.0 | 684.0 | 685.0 |
–special | – | – | – | 62.0 | 278.0 |
Weighted average number of shares basic (millions) | 1,624.0 | 1,623.1 | 1,621.4 | 1,619.8 | 1,618.4 |
Weighted average number of shares diluted (millions) | 1,638.0 | 1,633.4 | 1,631.5 | 1,629.6 | 1,628.9 |
Cash flow statement data | |||||
Net cash generated from operating activities | 16,832 | 15,599 | 15,160 | 16,134 | 25,345 |
Balance sheet data | |||||
Total assets | 128,102 | 102,786 | 103,549 | 96,744 | 102,896 |
Share capital/premium | 7,834 | 7,593 | 7,908 | 7,859 | 8,097 |
Total equity/net assets | 67,024 | 57,965 | 56,341 | 52,741 | 57,113 |
Equity attributable to owners of Rio Tinto | 62,203 | 55,246 | 54,586 | 50,634 | 51,947 |
1.Group operating profit includes the effects of charges and reversals resulting from impairments (other than impairments of equity accounted units) and profit and loss on consolidation and
disposal of interests in businesses. Group operating profit amounts shown above exclude equity accounted operations, finance items, tax and discontinued operations.
Directors’ approval statement
This Strategic report is delivered in accordance with a resolution of the Board, and has been signed on behalf of the Board by:
Dominic Barton
Chair
19 February 2026
Annual Report on Form 20-F 2025 | 102 | riotinto.com |
Directors’ report
Chair’s introduction | 102 |
Governance framework | 103 |
Board of Directors | 104 |
Executive Committee | 106 |
Our stakeholders – Section 172(1) statement | 107 |
Board activities in 2025 | 110 |
Evaluating our performance | 112 |
Nominations & Governance Committee report | 113 |
Audit & Risk Committee report | 115 |
Sustainability Committee report | 120 |
Remuneration report | |
Annual statement by the People & Remuneration Committee Chair | 122 |
Implementation report | 129 |
Additional statutory disclosure | 150 |
| Image: West Angelas iron ore mine, Australia. |
Chair’s introduction
Over 2025, as a Board, we spent much of our time considering how Rio Tinto can unlock its full
potential, as it moves into a new chapter of delivery and growth.
Our focus was on ensuring the business was equipped to respond
to rising demand in an increasingly uncertain and complex world –
with the right portfolio of assets and commodities, strong social
licence and an engaged workforce.
In this report we set out the Board’s activities over the past year. We
also describe the structures and processes that underpin effective
oversight and strengthen decision-making. Together, they ensure
the Board focuses on the right issues, at the right time, informed by
the right people and insights.
Our Board members have depth and diversity of experience and come
from a variety of professional backgrounds. This breadth of perspective is
particularly important as we move into a new phase for Rio Tinto, with a
mission of becoming the most valued metals and mining business.
This year reminded us that safety needs to remain central to
everything we do.
Following the tragic death of Mohamed Camara at Simandou, the
Board and Sustainability Committee reflected deeply on the need to
eliminate fatalities and ensure every colleague goes home safe
every shift, every day. Our thoughts are with all those affected by
this tragedy and by the devastating death of a colleague at the
SimFer mine site on 14 February 2026.
In the first half of the year, the Board worked closely with the Executive
Committee to complete the Arcadium transaction. This has resulted in
Rio Tinto holding a world-class portfolio of lithium assets, at a time when
demand continues to grow rapidly. The Board saw the impact of this
work first hand during our visit to Argentina at the end of the year.
Another significant area of focus in 2025 was identifying Jakob
Stausholm’s successor.
Jakob made a significant contribution to Rio Tinto at a critical time in
its evolution and the Board is thankful for his leadership.
Simon Trott’s appointment at our July Board followed a rigorous
search process led by the Nominations & Governance Committee.
Its objective was to identify a successor with the right attributes to
lead Rio Tinto into its next phase. This process built on routine
succession planning work undertaken over the previous 3 years and
included potential internal and external candidates.
At the July meeting we also approved changes to Rio Tinto’s operating
model and executive team and set out our goal of creating a stronger,
sharper, simpler way of working across the business.
Central to this work are our people, who are critical to Rio Tinto’s
success. Throughout 2025, the Board maintained close oversight of
efforts to build a more engaged and diverse workforce and to
continue strengthening our culture. More detail on the actions we
have taken in this respect can be found in the report on page 111.
The Board’s oversight of organisational culture was reinforced through
regular, direct engagement. Over 2025, Board members connected with
colleagues via town halls and Q&A sessions. I also had the opportunity to
meet many colleagues on my 18 visits to Rio Tinto sites and offices
around the world. Those conversations were a valuable opportunity to
connect with colleagues and hear their thoughts and concerns.
Our engagement also extended beyond our organisation.
In 2025, Board members also carried out meetings with customers,
suppliers, investors and other stakeholders – including in China,
Australia, Canada, Guinea, Mongolia, South Africa, the US and, as
previously mentioned, Argentina. The new perspectives that Board
members bring to our discussions following these meetings play an
important role in shaping decision-making.
Good governance is a critical factor in any organisation’s success –
all the more so in a fast-changing world.
Over the year, we have again evolved our governance arrangements as
part of our commitment to continuous improvement.
The updated UK Corporate Governance Code, which sets expectations
for trust, accountability and transparency on a comply-or-explain basis,
has further sharpened our focus on internal controls. More detail on our
approach is set out in the Audit & Risk Committee report.
As I said a year ago, the size of the Board peaked at 14 Directors in
2024 as we retained the expertise of longer-serving Directors during
a period of transition.
That transition concluded in 2025 with Sam Laidlaw, Kaisa Hietala,
Simon Henry and Martina Merz stepping down from the Board.
I would like to thank each of them for their contributions to the Board and
to Rio Tinto. It is never easy saying farewell to colleagues of such high
quality. However, now with a Board comprising 10 Directors, we are well
aligned with Simon Trott’s drive to create a stronger, sharper, simpler
way of working across the business.
Looking ahead, the Board will continue to approach its role with
discipline and care, supporting the executive team as Rio Tinto
moves into its next phase of growth.
I am very grateful to my fellow Board members for the hard work, energy
and commitment they have demonstrated throughout the year.
Dominic Barton
Chair
19 February 2026
Annual Report on Form 20-F 2025 | 103 | riotinto.com |
Directors’ report
Governance framework
Our Board is structured to support good governance, which means considering the right things, at the
right time, with the right people and insights. Our framework also helps the Board support the
executive team, and strengthen our strategic focus.
Board of Directors We believe good corporate governance supports high standards of business conduct and helps ensure the long-term success of our business - and our Board is structured to uphold this. | |||||
Audit & Risk Committee Helps the Board monitor decisions and processes designed to ensure the integrity of financial reporting, the independence and effectiveness of the external auditors, and robust systems of internal control and risk management. | Nominations & Governance Committee Helps the Board determine Board and committee composition to ensure the right balance of skills, experience, and background, and oversees succession, director development, and governance arrangements and disclosures. | People & Remuneration Committee Helps the Board ensure the Remuneration Policy and practices reward employees and executives fairly and responsibly, with a clear link to corporate and individual performance, and focuses on people and culture. | Sustainability Committee Helps the Board oversee the Group’s integrated approach to sustainability and strategies designed to manage safety and health, and social and environmental risks, including management processes and standards. | Chair’s Committee Supports the functioning of the Board and will consider urgent matters between Board meetings. | Chief Executive Has delegated responsibility for the executive management of Rio Tinto, consistent with the Group’s purpose and strategy, and subject to matters reserved for the Board, as set out in the Schedule of Matters Reserved for the Board and in accordance with the Group’s delegation of authority framework. | |||||||||||
See page 115 | See page 113 | See page 122 | See page 120 | |||||||||||||
| For more information and to view the Board Charter - outlining the Board's role and delegation to management - the schedule of matters reserved for the Board, and committee terms of reference see riotinto.com/corporategovernance |
Executive Committee
The Executive Committee supports the Chief Executive in delivering
strategy, annual plans and commercial objectives, and in managing
the financial and operational performance of the Group.
A number of executive level committees support the Chief Executive
in the performance of his duties. The key committees are as follows:
Investment Committee
Reviews proposals on investments, acquisitions and disposals.
Approves capital decisions within delegated authority limits, and
otherwise recommends matters for approval to the Board, where
appropriate.
Capital Committee
Reviews proposals for investments that are not strategically
complex. Focused on capital approvals supporting the continuity,
asset health, decarbonisation and closure programs of existing
businesses and approved growth projects.
Risk Management Committee
Oversees the management and mitigation of the material risks that
could materially impact the Group’s business objectives and exceed
its risk tolerances.
Ore Reserves Steering Committee
Responsible for standards and control procedures in the Mineral
Resources and Ore Reserves estimation and disclosure process.
Ensures that they are effective in meeting internal objectives and
regulatory requirements.
Closure Steering Committee
Oversees the process and controls designed to manage the material
risks related to rehabilitation, closure and legacy operations.
Disclosure Committee
Reviews and approves the release of all significant public
disclosures on behalf of the Group. Oversees the Group’s
compliance with its disclosure obligations in accordance with all
relevant legal and regulatory requirements, including processes to
ensure such disclosures are accurate and timely.
Annual Report on Form 20-F 2025 | 104 | riotinto.com |
Directors’ report
Board of Directors
Rio Tinto plc and Rio Tinto Limited have a common Board of Directors. The Directors are collectively
responsible for the stewardship and long-term sustainable success of the Group.
Dominic Barton BBM
Chair
BA (Hons), MPhil. Age 63. Appointed April 2022;
Chair from May 2022.
Skills and experience
Dominic spent over 30 years at McKinsey &
Company, including 9 years as the Global
Managing Partner, and has also held a broad
range of public sector leadership positions. He
has served as Canada’s Ambassador to China,
Chair of Canada’s Advisory Council for Economic
Growth, and Chair of the International Advisory
Committee to the President of South Korea on
National Future and Vision. Dominic brings a
wealth of global business experience, including
deep insight of geopolitics, corporate sustainability
and governance. His business acumen and public
sector experience position him to provide
balanced guidance to Rio Tinto.
Current external appointments
Chair of LeapFrog Investments and Asia House.
Simon Trott
Chief Executive
BSc (Agric) with Honours. Age 51. Appointed
August 2025.
Skills and experience
Simon has more than 25 years’ experience in
operating, commercial and business development
roles across a range of commodities and
geographies at Rio Tinto.
Since joining, Simon has led businesses including
Salt, Uranium, Borates and Diamonds. He has
been an Executive Committee member since
2018, most recently as Chief Executive, Iron Ore,
and previously as Rio Tinto’s first Chief
Commercial Officer.
Simon is focused on building a performance
culture grounded in clear values. His priorities are
delivering new standards of safety and operational
excellence, investment discipline and creating
long-term value by working closely with
customers, partners and communities.
Current external appointments
None.
Peter Cunningham
Chief Financial Officer
BA (Hons), Chartered Accountant (England and
Wales). Age 59. Appointed June 2021.
Skills and experience
As Chief Financial Officer, Peter brings
extensive commercial expertise from working
across the Group in various geographies. He is
strongly focused on the decarbonisation of our
assets, investing in the commodities essential
for the energy transition, and delivering attractive
returns to shareholders while maintaining financial
discipline. Peter has been with Rio Tinto for over
30 years, during which he has held a number of
senior leadership roles, including Group
Controller, Chief Financial Officer – Organisational
Resources, Global Head of Health, Safety,
Environment & Communities, Head of Energy and
Climate Strategy, and Head of Investor Relations.
Current external appointments
None.
Dean Dalla Valle
Independent Non-Executive Director
MBA. Age 66. Appointed June 2023.
Skills and experience
Dean brings over 4 decades of operational and
project management experience in the resources
and infrastructure sectors. He draws on 40 years’
experience at BHP where he was Chief
Commercial Officer, President of Coal and
Uranium, President and Chief Operating Officer
Olympic Dam, President Cannington, Vice
President Ports Iron Ore and General Manager
Illawarra Coal. He has had direct operating
responsibility in 11 countries, working across
major mining commodities and brings a wealth of
experience in engaging with a broad range of
stakeholders globally, including governments,
investors and communities. Dean was Chief
Executive Officer of Pacific National (2017–21).
Current external appointments
Chair of Hysata.
Susan Lloyd-Hurwitz
Independent Non-Executive Director
BA (Hons), MBA (Dist). Age 58. Appointed
June 2023.
Skills and experience
Susan brings significant experience in the built
environment sector with a global career spanning
over 30 years. Most recently Susan was Chief
Executive Officer and Managing Director of Mirvac
Group for over a decade. Prior to this, she was
Managing Director at LaSalle Investment
Management, and held senior executive positions
at MGPA, Macquarie Group and Lendlease
Corporation.
Current external appointments
Chair of both the Australian National Housing
Supply & Affordability Council and the Australian
Centre for Gender Equality and Inclusion @ Work
Advisory Board, Non-Executive Director of
Macquarie Group, Member of the Sydney Opera
House Trust, Global Board member at INSEAD
and Fellow of the University of Sydney Senate
including Chair of the Senate Building and Estates
Committee.
Jennifer Nason
Independent Non-Executive Director
BA, BCom (Hons). Age 65. Appointed
March 2020.
Skills and experience
Jennifer has 39 years’ experience in corporate
finance and capital markets. She was the Global
Chair of Investment Banking at JP Morgan, based
in the US until she retired in February 2025. At JP
Morgan, she led the Technology, Media and
Telecommunications global client practice for 20
years. She also worked in the metals and mining
sector team in Australia, co-founded and chaired
the Investment Banking Women’s Network, and
sat on the Executive Committee for the
Investment Bank.
Current external appointments
Co-Chair of the American Australian Business
Council, Non-Executive Director at Accenture,
Trustee of Dodge and Cox, Member of the Board
of GoopKitchen.
Annual Report on Form 20-F 2025 | 105 | riotinto.com |
Directors’ report | Board of Directors
Board changes The following directors stepped down during the year: Sam Laidlaw and Kaisa Hietala on 1 May 2025; Simon Henry and Martina Merz on 23 October 2025. |
Past external appointments over the last 3 years For details of each Director’s previous directorships of other listed companies see the Directors’ report on page 153. |
Joc O’Rourke
Independent Non-Executive Director
BSc, EMBA. Age 65. Appointed October 2023.
Skills and experience
Joc has over 35 years’ experience across the
mining and minerals industry. He was the Chief
Executive Officer of The Mosaic Company, the
world’s leading integrated producer and marketer
of concentrated phosphate and potash, from
August 2015 to December 2023. He also served
as President of Mosaic until recently and
previously held roles there including Executive
Vice President of Operations and Chief Operating
Officer. Prior to this, he was President of Australia
Pacific at Barrick Gold Corporation, leading gold
and copper mines in Australia and Papua New
Guinea. Joc is known for his deep knowledge of
the mining industry, and passion for improving
safety and operational performance.
Current external appointments
Independent Non-Executive Director at The Toro
Company and The Weyerhaeuser Company.
Sharon Thorne
Independent Non-Executive Director
BA (Hons), FCA. Age 60. Appointed July 2024.
Skills and experience
Sharon has extensive experience of auditing and
advising clients across a broad range of sectors.
She had a 36-year career with Deloitte, becoming
an audit partner in 1998. During her time at
Deloitte, she held numerous Executive and Board
roles before becoming Deputy CEO Deloitte
North-West Europe in 2017 and Global Chair from
2019, before retiring at the end of 2023. With a
wealth of strategic, transformational and
governance experience, Sharon is also an
advocate for collective action on environmental
sustainability and climate change and is a strong
believer in the need for greater diversity, equity,
and inclusion in business and civil society. She
has long championed greater diversity in senior
leadership roles.
Current external appointments
Director, Chapter Zero Alliance, Governor, London
Business School, Trustee, Royal United Services
Institute, Advisory Board Member, Common Goal.
Ngaire Woods CBE
Independent Non-Executive Director
BA/LLB, DPhil. Age 63. Appointed
September 2020.
Skills and experience
Ngaire is the founding Dean of the Blavatnik
School of Government, Professor of Global
Economic Governance and the Founder of the
Global Economic Governance Programme at
Oxford University. As a recognised expert in public
policy, international development and governance,
she has served as an adviser to the African
Development Bank, the Asian Infrastructure
Investment Bank, the Center for Global
Development, the International Monetary Fund,
and the European Union.
Current external appointments
Trustee of the Stephen A. Schwarzman Education
Foundation, Member of the Conseil
d’administration of L’Institut national du service
public, the Board of Directors of the Berggruen
Institute, and the Mo Ibrahim Foundation Council.
Ben Wyatt
Independent Non-Executive Director
LLB, MSc. Age 50. Appointed September 2021.
Skills and experience
Ben had a prolific career in the Western Australian
Parliament before retiring in 2021. He held a
number of ministerial positions and became the
first Indigenous treasurer of an Australian
parliament. His extensive knowledge
of public policy, finance, international trade and
Indigenous affairs brings valuable insight and adds
to the depth of knowledge on the Board. Ben was
previously an officer in the Australian Army
Reserves and went on to have a career in the legal
profession as a barrister and solicitor.
Current external appointments
Non-Executive Director of Woodside Energy Group
Ltd and Non-Executive Director of West Coast
Eagles, member of the Advisory Committee of
Australian Capital Equity. Non-Executive Director
(Chair) of Crown Resorts Perth.
Andy Hodges
Group Company Secretary
ACG, MBA. Age 58. Appointed August 2023.
Skills and experience
Andy joined Rio Tinto in 2018 and was appointed
Group Company Secretary in 2023. He has nearly
20 years’ experience in senior company
secretarial and governance roles across large,
complex organisations. Prior to joining Rio Tinto,
Andy held senior positions including Deputy
Company Secretary at Anglo American and
Assistant Company Secretary at Aviva, where he
supported boards and executive leadership on
governance, compliance, and regulatory matters.
Current external appointments
None.
Tim Paine
Company Secretary, Rio Tinto Limited
BEc, LLB, FGIA, FCIS. Age 62. Appointed
January 2013.
Skills and experience
Tim joined Rio Tinto in 2012 and became Joint
Company Secretary of Rio Tinto Limited in
January 2013. He has over 30 years of
experience in corporate counsel and company
secretary roles, including as General Counsel and
Company Secretary at Mayne Group, Symbion
Health and Skilled Group. Tim also spent 12 years
at ANZ Bank, including as Acting General Counsel
and Company Secretary.
Current external appointments
Member of the ASX Advisory Group on Corporate
Governance, Joint Company Secretary for the
Australia-Japan Innovation Fund and member of
the Governance Institute of Australia’s Legislation
Review Committee.
Board Committee membership key | |||||||
 | Committee Chair | | Audit & Risk Committee | | People & Remuneration Committee | ||
| Nominations & Governance Committee | | Sustainability Committee | ||||
Annual Report on Form 20-F 2025 | 106 | riotinto.com |
Directors’ report
Executive Committee
Day-to-day management of the business is delegated by the Board to the Chief Executive and, through
him, to other members of the Executive Committee and to certain management committees.
Simon Trott
Chief Executive
Peter Cunningham
Chief Financial Officer
| Biographies can be found on page 104. |
Bold Baatar
Chief Commercial Officer
Bold was appointed Chief
Commercial Officer in September
2024, with responsibility for sales
and marketing, procurement,
marine, logistics, and business
development. Since joining Rio Tinto
in 2013, he has held senior
leadership roles across operations,
Marine, Iron Ore Sales & Marketing,
and Copper. A member of the
Executive Committee since 2016,
Bold previously served as Chief
Executive of Energy & Minerals and
Copper, and led the commercial
development of the Simandou
project in Guinea, which
commenced operations in
November 2025.
Georgie Bezette
Chief People Officer
Georgie was appointed Chief People
Officer in January 2025 with nearly
30 years’ experience as a global
leader. Since joining Rio Tinto in
2008, Georgie has held diverse HR
leadership roles in various product
groups and at the Group level. Prior
to this, she served as Chief
Operating Officer, People, leading
the function’s transformation
agenda. Georgie is committed to
unlocking the full potential of our
people and strengthening a culture
where safety, respect and inclusion
underpin performance and
sustainable growth.
Mark Davies
Chief Safety & Technical Officer
Mark was appointed to the
Executive Committee in 2020
and leads Safety, Development
& Technical.
As Chief Safety & Technical Officer,
Mark is accountable for Group-wide
standards and assurance, covering
safety, technical, and communities
and social performance. In this role,
Mark is also accountable for
exploration, major capital projects,
and managing closure legacy sites.
Mark joined Rio Tinto in 1995 as a
Senior Mechanical Engineer and
has worked in operational and
functional leadership roles, including
Iron and Titanium, Group Risk and
Global Procurement.
Isabelle Deschamps
Chief Legal, Governance &
Corporate Affairs Officer
Isabelle joined Rio Tinto in
November 2021 and brings
extensive international legal and
leadership experience. She is
admitted to practise law in England
and Wales and in Quebec, Canada.
Prior to joining Rio Tinto, Isabelle
was General Counsel of the
AkzoNobel Group and a member
of its Executive Committee, and
previously held senior roles at
Unilever. At Rio Tinto, she leads the
global Legal, Communications and
Government Relations teams, and
oversees governance functions
including Company Secretariat and
Ethics & Compliance. Isabelle is a
pragmatic and transparent leader
committed to integrity, inclusion and
continuous learning.
Katie Jackson
Chief Executive, Copper
Katie was appointed Chief Executive,
Copper in September 2024. Prior to
this, she was President of National
Grid Ventures, where she led the
development, financing and operation
of large-scale energy infrastructure
assets. With a career spanning 3
continents, including senior roles at
Shell, UBS, Anadarko, Equinor and
BG Group, Katie brings deep
operational, commercial and strategic
experience. She is passionate about
solving complex technical, operational
and financial challenges to deliver
value from large, global projects and to
support the growth of Rio Tinto’s
Copper business.
Matthew Holcz
Chief Executive, Iron Ore
Matthew was appointed Chief
Executive, Iron Ore in August 2025.
He joined Rio Tinto in 2007 and
brings more than 20 years’ mining
industry experience across
operations, major projects, business
development and commercial roles.
Matthew has worked across iron
ore, copper and nickel operations in
Australia, South America and the
United Kingdom. Prior to his current
role, he was Managing Director,
Pilbara Mines, where he led Rio
Tinto’s 18 iron ore operations in
Western Australia. Matthew is
known for delivering strong
performance through systems
thinking, talent development and an
empowered, collaborative culture.
Jérôme Pécresse
Chief Executive, Aluminium
& Lithium
Jérôme was appointed Chief
Executive, Aluminium & Lithium in
August 2025, having joined Rio Tinto
as Chief Executive, Aluminium in
2023. Previously, he served as
President and CEO of GE Renewable
Energy, where he helped define and
implement strategy supporting the
energy sector‘s decarbonisation.
Jérôme brings extensive global
experience across energy, mining,
business development and strategy
from roles at GE, Alstom and Imerys.
He is focused on decarbonising
operations, growing future-facing
materials businesses, building a strong
culture of diversity and
entrepreneurship, and forging
partnerships with Indigenous peoples,
communities and governments.
Former Executive members: Kellie Parker and Sinead Kaufman stepped down as Chief Executive, Australia and Chief Executive, Minerals respectively on 1 November 2025.
Annual Report on Form 20-F 2025 | 107 | riotinto.com |
Directors’ report
Our stakeholders
This stakeholder section, together with the information on pages 12-13, constitutes our
Section 172(1) statement.
The Board is required by the UK Companies Act 2006 to promote the success of the company for the
benefit of our shareholders, and in doing so, take into account the interests of our wider stakeholders.
Our key stakeholders are our people, our investors, the communities where we operate, our customers,
governments, civil society organisations, and our suppliers.
Our people Engaged people are key to our success. How our Board engages •Susan Lloyd-Hurwitz, our designated Non-Executive Director for workforce engagement, oversees our program of workforce engagement events. •In-person and virtual town halls with the Board and Executive Committee members. •The Board engaged with our workforce while visiting several sites and offices throughout the year, including in Perth, Argentina, Mongolia, China, Japan and Singapore. These engagements have included town halls and meetings with smaller groups of employees to exchange insights and reflections about the business. •Employees are informed of the Group’s production and financial results, and in the event of any significant events, Group-wide communications are made through a number of channels. | ||||
How the Board has taken account of these interests •An engaged and diverse workforce is imperative to the success of the business. As part of the regular program, the Board reviews the results of the twice-yearly people surveys and oversees myVoice, our confidential whistleblowing program. •The safety, health and wellbeing of our people is a key priority for the Board. The Board considers this in all decisions to ensure we continually evolve our assets’ safety maturity and aim to create a physically and psychologically safe workplace. •During the year, the Board received updates from Georgie Bezette, our Chief People Officer, on our operating model, talent and culture agendas. •The Board considers our workforce, among a number of factors, when making decisions on new ventures, projects and other growth opportunities, and aims to support job opportunities and fair work. |
What was important in 2025
•ensuring that our policies, practices and expected
behaviours are well understood, and our values guide the
way we make decisions.
•driving consistent implementation of the
recommendations from the Everyday Respect report
across the business.
•business growth, operational performance
•societal issues.
Investors Our strategy and long-term success depend on the support of our investors. How our Board engages •Institutional and retail investors engaged directly with the Board and management at our annual general meetings, giving them the opportunity to ask questions on matters relating to the operations of the company. •In 2025, our Chair, Dominic Barton, met with investors predominately from the UK, EU, US and Australia to convey how our strategy integrates into our business, including our portfolio, capital investment decisions and business planning. •Regular calls, one-on-one meetings and group events, roadshows, presentations and attendance at investor conferences. •Our corporate reporting suite and regular updates on our website and social media. •In December 2025, our Chief Executive and Chief Financial Officer led a Capital Markets Day in London updating investors on our strategy. We also hosted around 30 investors and analysts at the Rincon project and Fénix operation in Argentina. •As part of its commitment to ongoing shareholder engagement, Rio Tinto commissioned an independently conducted investor perception study covering a broad range of topics. The overall picture was very positive on the strategy presented at the Capital Markets Day, with confidence in management’s ability to execute to deliver shareholder value. | ||||
How the Board has taken account of these interests •With regard to capital allocation and shareholder returns, the Board is committed to maintaining an appropriate balance between cash returns to shareholders and investment in the business, with the intention of maximising long-term shareholder value. •Given investor interest in ESG issues, including climate change and our work with communities around the world, the Board considers these issues during its yearly strategy sessions when assessing our portfolio positions. •The Board’s engagement in civil society organisation roundtables and some investor events provides a sounding board as we implement our strategy, respond to shareholder requisitioned resolutions and develop our reporting. •During the year, the Board received updates on investors’ feedback and key areas of concerns. |
What was important in 2025
•financial and operational performance
•Chief Executive succession
•our ESG performance, including the impact of climate change
and how we are decarbonising our business
•compliance with laws and regulations
•remuneration policy
Annual Report on Form 20-F 2025 | 108 | riotinto.com |
Directors’ report | Our stakeholders
Communities The strength of our relationships with host communities, and broader society, is fundamental to our business. Without their support we cannot operate successfully. How our Board engages •We continue to strengthen our social performance capability to be better operators and partners. We have increased engagement between Indigenous Peoples and our senior operational leaders and teams, as well as our Board. •In May 2025, Board members met with Pilbara Traditional Owner group representatives. •In 2025, we continued to implement our global Community Perception Monitoring program, Local Voices, together with Voconiq, a third-party engagement science research company. The program is helping us to more effectively engage and better understand communities’ perceptions, leading to improved data- driven social performance. Progress and insights of the program are overseen by the Sustainability Committee. | ||||
How the Board has taken account of these interests •The Board oversees and receives regular updates on many projects and the impact they have, or will have, on communities. Supporting economic opportunities for host communities and regions is a key priority for us and, in addition to our strategic outcome-focused social investment programs, we strive to employ local people and engage local services. •The Australian Advisory Group guides us on current and emerging issues, which helps us better manage policies and positions important to Australian communities and our broader business. |
What was important in 2025
•job creation and procurement opportunities
•land access
•socioeconomic development projects
•environmental management, tailings storage facilities,
operational impacts and potential site closures
•security
Customers The needs of our customers are central to our operational decision-making. How our Board engages •In 2025, Simon Trott, Ben Wyatt, and Peter Cunningham engaged with several of our key customers in China, Japan and Korea, meeting senior leaders from key markets. •Our Chair, Dominic Barton, met with senior leaders from our Joint Venture partners in Simandou, facilitating strategic discussions and reinforcing the Group’s commitment to partnership and innovation. •In October 2025, Simon Trott engaged with customers at appreciation dinners in China and Japan. These engagements focused on strengthening partnerships, supporting supply chain resilience, and advancing decarbonisation initiatives. •Ongoing dialogue and stakeholder sessions. | ||||
How the Board has taken account of these interests •The Board receives updates on Commercial priorities, market development, and customer engagement initiatives, ensuring customer interests are reflected in Group strategy and operational priorities. •The Board receives regular updates from customer interactions and business forums. In 2025, insights and feedback were drawn from ongoing dialogue and stakeholder sessions. |
What was important in 2025
•product quality
•product delivery management
•innovation for decarbonisation solutions
•strategic partnerships
•access to ESG traceability data
•supply security
•responsible sourcing and supply
Governments Governments – national, state and provincial, and local – are important stakeholders for our business. They provide the legal and policy framework that supports our businesses, and ensures that our communities and people are protected. How our Board engages •We participate in multi-stakeholder organisations, initiatives and roundtables, such as the Extractive Industry Transparency Initiative, and ICMM. •We have innovative partnerships with governments, such as ELYSISTM with the Governments of Canada and Quebec. We also partner with governments on projects, such as with the Government of Guinea on the Simandou iron ore deposit. •Government representatives regularly visit our sites. •In Australia, we engage with governments on issues such as project approvals and cultural heritage protection. •In the US, we advocate on public policy related to the North American supply chain and alignment on climate change, critical minerals and materials, renewable energy and trade. •In China, we partner and engage with a range of government and state-owned entities on issues related to climate change, innovation, training, procurement and product supply. •We contribute to UK and EU public policy development. | ||||
How the Board has taken account of these interests •We engage with government officials to understand their expectations, concerns and policies. This helps us align our activities with government interests. The Board receives regular updates regarding all our projects and, in doing so, oversees our engagement with governments. •The Board oversees our financial management to ensure we comply with tax obligations and make a fair contribution to our host country's revenue. We comply with regulations and contribute positively to the economic and social development of the regions where we operate. |
What was important in 2025
•tax and royalty payments
•compliance with laws and regulations
•local employment, procurement, safety and health
•ESG issues, decarbonisation opportunities and socioeconomic
development projects
•operational environmental management
•transparency and human rights
•industrial policy
•new technology and innovation
•security
Annual Report on Form 20-F 2025 | 109 | riotinto.com |
Directors’ report | Our stakeholders
Civil society organisations Civil society organisations (CSOs) play an important role in society. They hold us to account and help us understand societal expectations across environmental, social and governance (ESG) issues, and identify risks and opportunities to collaborate. How our Board engages •We engage regularly with a wide range of CSOs to understand and respond to areas of interest and concern, communicate progress, share challenges and advance common goals. In 2025, we expanded our outreach to CSOs in Europe, Argentina and Chile. We also organised civil society dialogues on the Panguna Legacy Impact Assessment and decarbonisation, as well as field visits for CSOs to Resolution Copper and Simandou. •We engage locally, nationally and globally on specific issues related to an operation. For example, through civil society roundtables in Guinea, Chile and the US. •We attend industry and multi-stakeholder forums such as the Executive Industry Transparency Initiative, where CSOs are present to understand the latest trends and expectations of civil society on ESG issues. •Since 2018, we have held annual roundtables with CSO leaders and members of the Board and Executive Committee. The roundtables provide a dedicated forum for our most senior leaders to engage directly with CSOs and discuss issues of mutual concern. Twelve CSOs took part in our 2025 roundtables in London and Buenos Aires. | ||||
How the Board has taken account of these interests •The Board and its committees consider issues raised by CSOs throughout the year, particularly through the Sustainability Committee. The Board is represented at the CSO roundtables through the Chair and other Directors. •The Board considers ESG issues and our social licence to operate when making decisions on new ventures, projects and other growth opportunities. •The Chair and executives engaged with investors on these areas, reflecting civil society’s emphasis. |
What was important in 2025
•water management, biodiversity protection and nature targets
•decarbonisation, carbon offsets and Scope 3 emissions
•the Panguna Mine Legacy Impact Assessment
•Australia’s nature-positive plan and nature reforms
•Indigenous Peoples’ rights in the energy transition
•the Simandou project
•lithium projects in Argentina and Chile
•civic space and human rights defenders
Suppliers Our suppliers are critical to our ability to run efficient and safe global operations. How our Board engages •In 2025, Peter Cunningham engaged with suppliers through meetings and collaborative initiatives in China, Korea and Japan. In addition, Peter met with Accenture and SAP on the Modern Enterprise Resource Platform program, a strategic initiative to operational excellence. •In October 2025, Simon Trott engaged with suppliers and service providers at appreciation dinners in China and Japan. These engagements reinforced relationships and addressed challenges in sustainable supply, responsible and resilient supply chains, electrification trends, and the evolving role of suppliers in meeting global demand for critical minerals. •Ongoing dialogue and supplier forums. | ||||
How the Board has taken account of these interests •The Board receives updates on suppliers’ activities, including metrics regarding Group’s support for Indigenous-owned suppliers and reviews of supply chain competitiveness, technology leadership and sustainability standards. •In 2025, we developed our first battery-swap electric haul truck trial fleet, jointly developed with SPIC-Qiyuan and Tonly at the Oyu Tolgoi site, a significant step towards decarbonising mining operations. |
What was important in 2025
•payment terms and processes
•partnership and collaboration
•contract terms and conditions
•sustainability and ethical practices
•efficiency and simplification
•support and engagement
•innovations and improvement
•responsible and resilient supply chains
Annual Report on Form 20-F 2025 | 110 | riotinto.com |
Directors’ report
Board activities in 2025
At every Board meeting, the Chief Executive and Chief Financial Officer report on the safety,
operating, and business performance of the Group, the Committee Chairs report on proceedings of the
committees, and the Board consider and reflect on safety issues.
In 2025, the Board reviewed its forward agenda of matters to be discussed, considered its constitution, composition and performance, and
reviewed any new or amended Group policies. The Board has ultimate oversight of sustainability matters, but has delegated responsibility for
certain matters to the Sustainability Committee. The Board had 7 scheduled meetings in 2025.
Set out below are some of the specific matters that the Board considered during the year.
In February, the Board: •Carefully considered the shareholder requisitioned resolution related to the dual-listed companies unification, unanimously concluded that it was not in the best interests of the Group, and approved the statement included in the notices of meeting. •Reviewed and approved the resolutions to be put to the Annual General Meetings. •Reviewed and approved the Group's 2024 full-year results and final shareholder returns, which had been considered by the Audit & Risk Committee. •Reviewed the findings of the annual Board evaluation. •Approved the Group’s 2025 Funding Plan. •Received updates on compliance: program developments, effectiveness, risks, litigation and business integrity myVoice insights. |
In April, the Board: •Considered Board succession planning. •Reviewed and discussed an update on the Lithium portfolio and the integration of Arcadium Lithium. •Approved the 2024 Modern Slavery Statement. In late April the Board met in Perth and held a two-day strategy session, during which they discussed the following: •The global strategic context, including the geopolitical landscape and macro-economic environment. •The Group’s recycling strategy, the energy transition and its implications, global socio-economic trends, and a review of reserves and resources. •Implications of these topics for the Group’s strategy and core projects. |
In July, the Board: •Approved the appointment of Simon Trott as Chief Executive. •Approved changes to the operating model and executive team. •Approved funding to progress the first phase of data collection for the Resolution Copper project in Arizona. •Approved funding to develop the West Angelas Sustaining Project with Robe River Joint Venture. •Approved the Group’s 2025 half-year results statement and interim shareholder returns, which had been considered by the Audit & Risk Committee. •Approved the mid-year confirmation of material risks. |
In September, the Board: •Reviewed an update from the Chief People Officer covering organisational change, culture, talent, People Survey results and progress with the Everyday Respect report recommendations. •Discussed an update on Tomago Aluminium. |
In October, the Board: •Approved a funding request to progress the Winu 10 Mtpa Project into Feasibility Study phase. •Received and considered an update on the Group’s tax policy. The Board also held a 2-day strategy session covering the following: •The Group’s long-term financial plan, capital allocation and financial resilience. •Industry structure and the Group’s strategies for copper, aluminium, lithium and iron ore. •Our competitive landscape, competitive advantages and our position. •Constraints on the business and how to mitigate them. |
Annual Report on Form 20-F 2025 | 111 | riotinto.com |
Directors’ report | Board activities in 2025
In December, the Board:
•Visited Argentina for government, and other stakeholder,
engagement, and visited operations at the Rincon Lithium Project
and our Fénix facility.
•Reviewed and considered an update on the Panguna Mine.
•Approved the Group’s 2026 Annual Plan.
•Discussed an update from the Chief People Officer regarding
People and culture matters.
•Discussed initial results from the annual Board evaluation.
How the Board monitors culture
The Board is responsible for establishing the company’s purpose, strategy and values. Our people are critical to Rio Tinto’s success, and
throughout 2025, the Board maintained close oversight of efforts to build a more engaged and diverse workforce, and to continue
strengthening our culture.
| For more information on our people, see page 107. |
The Board monitors culture in a number of different ways – seeking to ensure alignment with our strategy and values. This includes making sure that our policies, practices and expected behaviours are well understood, and our values guide the way we make decisions. In 2025, we reaffirmed our commitment to creating a safer, more respectful and inclusive workplace, that fosters diverse perspectives and better outcomes. We continue to drive the consistent implementation of the recommendations from the Everyday Respect report across the business. This work reflects the ongoing need to ensure that our purpose, strategy and values are aligned with the culture colleagues experience every day. The Board receives regular updates about our people from the Chief People Officer and management. This, together with data from the myVoice confidential whistleblower program, the People Survey (our employee engagement survey), and key metrics such as data on retention, provides the Board with a comprehensive overview of culture. This provides a clear and grounded view of where we are making progress, and where further focus and action are required. Colleague feedback from the People Survey confirms that while momentum is building, there is more to do. | The Board’s oversight of organisational culture was reinforced through regular, direct engagement. During 2025, Board members connected with colleagues at round tables and visits to sites and offices around the world. This is important in facilitating two-way dialogue between the Board and wider workforce, and gives a different perspective for the Board on culture. Board members find these opportunities to hear colleagues’ perspectives and concerns invaluable – helping to ensure our focus remains firmly on people, culture and continuous improvement. Susan Lloyd-Hurwitz is our designated Non- Executive Director for engagement with the workforce. In 2025, the Non-Executive Directors visited a large number of projects, sites and offices. In May, the Board meeting was held in Perth which gave the Board the opportunity to meet with leadership and employees through briefings and more informal engagements. Following this, the Board visited Hope Downs 1 in the Pilbara and met with the local management team. Non-Executive Directors also took the opportunity to visit our operations. This included Canada, Guinea, Mongolia, Singapore and the US. The Board visited Argentina in December. During their time in Argentina, the Board met with the local workforce. This supported the Board’s understanding of the ongoing integration of Arcadium Lithium. The insights we bring back to the Boardroom play an important role in shaping our discussions and decision-making. | |||
Annual Report on Form 20-F 2025 | 112 | riotinto.com |
Directors’ report
Evaluating our performance
This year, the Board’s annual performance evaluation was led internally. This aligns with the corporate
governance principles for both the UK and Australia.
How the 2025 evaluation worked
In 2025, we completed a review of the Board and Committees using
an online questionnaire platform that emphasised the following
objectives:
1)Capturing areas of strength and areas for improvement at the
start of the new Chief Executive’s tenure.
2)Benchmarking (where useful) against the 2024 internal survey
and external data.
3)Undertaking a deeper dive into Committees.
What the evaluation found
The evaluation concluded that the Board and its Committees
continued to demonstrate strong and constructive governance
throughout the year, underpinned by effective working relationships,
high ethical standards and a culture that supports open, respectful
and well-balanced debate. Well-structured agendas, improving
paper quality and strong leadership from the Chair enabled
thoughtful discussion and sound decision-making, while the broad
mix of experience across the Board contributed to robust and
informed oversight.
Overall performance was found to be very effective, though some
areas for further improvement were identified.
These include clearer communication of strategic priorities,
strengthening the alignment between long-term objectives,
performance measures and incentives, and how the Board oversees
operational performance, organisational change and talent
development. These focus areas reflect both the organisation’s
evolving context and the Board’s commitment to continuous
improvement.
Encouragingly, the review reflects a governance system operating
from a strong foundation in support of the effective delivery of the
Group’s long-term ambitions.
The Non-Executive Directors, led by the Senior Independent
Director, are responsible for the performance evaluation of the
Chair. They met in May 2025 to review this and the Senior
Independent Director (Sam Laidlaw at that time) met with the Chair
to feedback the outcome of that evaluation. The Chair met with each
non-executive director regularly throughout the year to discuss,
among other things, board effectiveness and individual director
performance. It was concluded that the performance of individual
directors continued to be effective.
Every 3 years, in accordance with the UK Corporate Governance
Code, we engage a professional external adviser to undertake an
independent evaluation of the Board’s effectiveness. In 2026, we will
conduct an external review.
Directors’ attendance at scheduled Board and Committee meetings during 20251
Committee Appointments | Board | Audit & Risk | Nominations & Governance | People & Remuneration | Sustainability | |
Chair and Executive Directors | ||||||
Dominic Barton | | 7/7 | 4/4 | 5/5 | 4/4 | |
Jakob Stausholm2 | 4/4 | |||||
Simon Trott3 | 3/3 | |||||
Peter Cunningham | 7/7 | |||||
Non-Executive Directors | ||||||
Dean Dalla Valle | | 7/7 | 4/4 | 5/5 | 4/4 | |
Simon Henry - retired 23 October 20254&5 | 6/6 | 6/6 | 3/3 | |||
Kaisa Hietala - retired 1 May 20256 | 2/3 | 2/2 | 2/2 | |||
Sam Laidlaw - retired 1 May 20257 | 3/3 | 3/3 | 2/2 | 2/2 | ||
Susan Lloyd-Hurwitz8 | | 7/7 | 5/5 | 1/1 | ||
Martina Merz - retired 23 October 20259 | 5/6 | 2/3 | ||||
Jennifer Nason10 | | 7/7 | 6/6 | 5/5 | ||
Joc O'Rourke11 | | 6/7 | 7/7 | 1/2 | ||
Sharon Thorne12&13 | | 7/7 | 7/7 | 1/1 | ||
Ngaire Woods | | 7/7 | 3/4 | 3/4 | ||
Ben Wyatt14 | | 7/7 | 7/7 | 1/1 | 5/5 |
1.In addition to the scheduled meetings of the Board and Committees for 2025, in order to attend to urgent matters, additional ad hoc meetings of the Board and Committees were
convened. Other than as expressly noted below, these meetings were attended by each member of those Committees.
2.Jakob Stausholm stepped down from the Board with effect from 24 August 2025.
3.Simon Trott became Chief Executive with effect from 25 August 2025.
4.Simon Henry stepped down as Chair of the Audit & Risk Committee with effect from 9 June 2025.
5.Simon Henry stepped down from the Board with effect from 23 October 2025. Simon was a member of the Audit & Risk and Nominations & Governance Committees.
6.Kaisa Hietala stepped down from the Board with effect from 1 May 2025. Kaisa was a member of the Audit & Risk and Sustainability Committees.
7.Sam Laidlaw stepped down from the Board with effect from 1 May 2025. Sam was Chair of the People & Remuneration Committee, member of the Nominations & Governance and
Sustainability Committees and Senior Independent Director of Rio Tinto plc.
8.Susan Lloyd-Hurwitz became a member of the Sustainability Committee with effect from 23 October 2025.
9.Martina Merz stepped down from the Board with effect from 23 October 2025. Martina was a member of the Sustainability Committee.
10.Jennifer Nason became a member of the Audit & Risk Committee with effect from 17 February 2025.
11.Joc O’Rourke became a member of the Sustainability Committee on 1 May 2025.
12.Sharon Thorne became Senior Independent Director of Rio Tinto plc and a member of the Nominations & Governance Committee with effect from 1 May 2025.
13.Sharon Thorne became Chair of the Audit & Risk Committee with effect from 9 June 2025.
14.Ben Wyatt became Chair of the People & Remuneration Committee with effect from 1 May 2025 and Senior Independent Director of Rio Tinto Limited with effect from 23 October 2025.
Board Committee membership key | |||||||
| Committee Chair | | Audit & Risk Committee | | People & Remuneration Committee | ||
| Nominations & Governance Committee | | Sustainability Committee | ||||
Annual Report on Form 20-F 2025 | 113 | riotinto.com |
Directors’ report
Nominations & Governance Committee report
The Nominations & Governance Committee ensures appointments
to the Board are subject to a formal, rigorous and transparent
procedure, oversees succession planning for the Board and
senior management, and develops the Group’s governance
arrangements on behalf of the Board.
Nominations & Governance Committee members1,2 |
Dominic Barton (Chair) |
Dean Dalla Valle |
Sharon Thorne |
Ngaire Woods |
Ben Wyatt |
1.Sam Laidlaw was a member of the Committee until his retirement from the Board on
1 May 2025.
2.Simon Henry was a member of the Committee until his retirement from the Board on 23
October 2025.
2025 was a busy year for the Committee and I would like to extend
my thanks to the Committee members for their support during this
period. We decided in 2025 to expand the remit of our Nomination
Committee, now renamed our Nominations & Governance
Committee effective 1 January 2026, to include responsibility for
developing and overseeing the Group’s governance arrangements
on behalf of the Board.
The Committee’s priorities this year have been Chief Executive
succession and continuing to right-size the Board to ensure the right
balance of skills and experience in the boardroom to help deliver
implementation of the Group’s strategy and objectives.
As we have previously reported, the size of the Board peaked at 14
Directors during a transitional period in which we retained the
expertise and experience of longer-serving Directors as newer
Directors familiarised themselves with the Group.
Sam Laidlaw and Kaisa Hietala stepped down from the Board at the
conclusion of the 2025 AGMs, and on 23 October 2025, Simon
Henry stepped down as Director. Sam and Simon completed a
comprehensive handover to Ben Wyatt and Sharon Thorne, who
have succeeded them respectively as Chairs of the People &
Remuneration and Audit & Risk Committees. During the year,
Sharon was also appointed Senior Independent Director of Rio Tinto
plc , and Ben was appointed Senior Independent Director of Rio
Tinto Limited.
Martina Merz stepped down as a Director on 23 October 2025, concluding
this phase of Board right-sizing. Martina has been a valuable addition to
the Board since her appointment in February 2024.
I would like to express my sincere thanks to Simon and Martina, on
behalf of the Board, for their outstanding contribution to Rio Tinto.
The Committee spent a significant amount of time in 2025 overseeing
the Chief Executive succession. Upon conclusion of the process, I am
delighted that the Board approved the appointment of Simon Trott as
Chief Executive, who stepped into the role on 25 August 2025.
Simon has been on the Executive Committee since 2018, most
recently as Chief Executive, Iron Ore, and before that as Rio Tinto’s
first Chief Commercial Officer.
Simon is an outstanding leader with a deep understanding of mining
and a track record of delivering operational excellence and creating
value across our business – attributes Simon is now bringing to Rio
Tinto at scale.
Dominic Barton
Nominations & Governance Committee Chair
19 February 2026
Chief Executive Succession
In May 2025, Jakob Stausholm confirmed he intended to step down
from the Board as a Director and Chief Executive and the
Committee oversaw a comprehensive selection process that built
upon extensive existing succession planning.
The Committee appointed executive search agency Spencer Stuart
to support the process, working with the Senior Independent
Directors, and led by the Chief People Officer, Georgie Bezette.
By considering the key challenges and opportunities facing the
business over the next 5 to 10 years, the Committee identified the
leaderships skills, experience and expertise required, and agreed a
detailed candidate profile and role specification.
These were then used to identify an initial longlist of internal and
external potential candidates. After an assessment process and
interviews, the Committee recommended a final shortlist to be
interviewed by the Board.
Upon conclusion of the interviews, the Board agreed that Simon
Trott was the right leader for Rio Tinto.
Following the Board’s approval, the appointment was announced
and a formal induction process commenced, including an extensive
handover from Jakob Stausholm.
| For more information about our Non-Executive Directors, see the Board biographies on pages 104-105. |
Length of tenure of Non-Executive Directors
l | 0-3 years: 4 |
l | +3-6 years: 4 |
l | +6-9 years: 0 |
Annual Report on Form 20-F 2025 | 114 | riotinto.com |
Directors’ report | Nominations & Governance Committee report
Our key responsibilities
The purpose of the Nominations & Governance Committee is to
review the composition of the Board and develop and oversee the
Group’s governance arrangements on behalf of the Board.
The Committee leads the process for appointments, making
recommendations to the Board as part of succession planning for
Non-Executive Directors. It also approves proposals for
appointments to the Executive Committee.
Membership of the Committee
The members of the Committee are all independent Non-Executive
Directors, and their biographies can be found on pages 104-105.
The Chief Executive and the Chief People Officer are invited to
attend all or part of meetings, as appropriate. The Committee is
chaired by the Chair of the Board, unless the matter under
consideration relates to the role of the Chair.
The Committee had 4 scheduled meetings in 2025 and met
regularly during the Chief Executive succession process.
Attendance at the formal meetings is included in the table
on page 112.
Appointments to the Board – our policy
We base our appointments to the Board on merit, and on objective
selection criteria, with the aim of bringing a range of skills,
knowledge and experience to Rio Tinto. This involves a formal and
rigorous process to source strong candidates from diverse
backgrounds, and conducting appropriate background and
reference checks on the shortlisted candidates. We aim to appoint
people who will help us address the operational and strategic
challenges and opportunities facing the company and ensure that
our Board is diverse in terms of experience, gender, nationality,
social background and cognitive style. As such, we engage only
recruitment agencies that are signed up to the Voluntary Code of
Conduct on diversity best practice.
We believe that an effective Board combines a range of
perspectives with strong oversight, combining the experience of
Directors who have developed a deep understanding of our
business over several years with the fresh insights of newer
appointees. We aim for the Board’s composition to reflect the global
nature of our business - we currently have 5 different nationalities
(including dual nationalities) on a Board of 10.
The Committee engaged Spencer Stuart to support the search for
our new Chief Executive. The Committee is satisfied that Spencer
Stuart does not have any connections with the company or
individual Directors that may impair their independence.
When recruiting government or former government officials to join
the Rio Tinto Board, we comply with any restrictions and obligations
existing pursuant to relevant laws and regulations, including with
respect to confidentiality, lobbying and conflicts of interest.
The key skills and experience of our Board are set out on this page
of the report.
Diversity
The Board recognises that it has a critical role to play in creating an
environment in which all contributions are valued, different
perspectives are embraced, and biases are acknowledged and
overcome. The Board shares ownership with the Executive
Committee of the Group’s Respect, Inclusion and Diversity Policy,
which can be found at riotinto.com/policies.
The proportion of women on the Board is currently 40% (4 women
and 6 men). Sharon Thorne was appointed Senior Independent
Director on 1 May 2025, satisfying the UK Listing Rule target.
The Group has continued to set measurable gender diversity
objectives for the composition of senior leadership and graduate
intake and achievement of these targets contributes to the variable
remuneration of senior executives. Progress on diversity is shown in
the Our approach to Sustainability section on page 35, where we
show a breakdown by seniority.
The number of Directors who identify themselves as being from an
ethnic background is one (Ben Wyatt), aligned to the objectives of
The Parker Review in the UK.
For further information on the gender and ethnic diversity of the
Board and Executive Committee please see page 151 of the
Additional statutory disclosure section.
| Progress on diversity is shown in the Talent, respect and inclusion section on pages 38-39. |
Skills and experience of the Chair and Non-Executive Directors
Skills and experience | Some experience | Extensive experience | Total |
Chief Executive experience: Chief Executive-level experience of a major corporation | 1 | 4 | 5 |
Chief Financial Officer and audit experience: Experience in financial accounting and reporting, corporate finance, internal controls, treasury and associated risk management | 1 | 2 | 3 |
Mining and broader industrial operations: Senior executive experience in a large, global mining or industrial organisation | 2 | 2 | |
Major projects: Experience in developing large-scale, long-cycle capital projects | 2 | 3 | 5 |
Corporate governance: Experience on the board of a major quoted corporation subject to rigorous corporate governance standards | 1 | 5 | 6 |
Global experience, including multinational and geopolitical experience: Experience working in multiple global locations, exposed to a range of cultural, business, regulatory and political environments and/or in-depth understanding of public policy and government relations | 1 | 6 | 7 |
Relevant country/regional expertise: Knowledge of countries or regions of strategic relevance to the Group | 3 | 1 | 4 |
Downstream customer markets: Understanding of value chain development, including consumers, customers and marketing demand drivers | 3 | 1 | 4 |
ESG: Experience of issues associated with environmental and social responsibility, including communities and social performance, government relations, workplace health and safety and stakeholder engagement | 4 | 4 | 8 |
Energy transition: Knowledge and experience of managing climate-related threats and opportunities including climate science, the low-carbon transition and public policy | 5 | 5 | |
Industrial technology and innovation: Experience of nurturing and harnessing research, development and innovation, including digital technology and cyber security | 5 | 5 | |
Mergers and acquisitions and private equity/investing: Experience of mergers, acquisitions, disposals, joint ventures, private equity and investing | 3 | 1 | 4 |
Annual Report on Form 20-F 2025 | 115 | riotinto.com |
Directors’ report
Audit & Risk Committee report
The Committee supports the Board in discharging its governance
responsibilities and oversees the integrity of the Group’s financial
reporting and associated narrative statements.
Audit & Risk Committee members1,2,3 |
Sharon Thorne (Chair) |
Jennifer Nason |
Joc O’Rourke |
Ben Wyatt |
1.Simon Henry stepped down from the Board on 23 October 2025.
2.Kaisa Hietala stepped down from the Board on 1 May 2025.
3.Jennifer Nason joined the Committee on 17 February 2025.
I was appointed Chair of the Audit & Risk Committee in June 2025 and
am grateful to the Board and my fellow Committee members for their
support as I completed my handover from Simon Henry. On behalf of
the Committee, I would like to thank Simon for his strong leadership and
stewardship during the 6 years he was Chair of the Committee. His
experience provided continuity and discipline, and I valued his support
during the transition.
2025 saw a number of changes to the Group. This included the
acquisition and integration of Arcadium Lithium, the appointment of
a new Chief Executive and the subsequent evolution of the
operating model. Against this backdrop, the Committee’s work
reflected the importance of maintaining strong oversight of risk,
control and assurance during a time of transition. When considering
the work of Group Internal Audit, we have paid particular attention to
how the delivery of the audit program will support the delivery of the
new operating model.
An area of focus was the continued evolution of the Group’s risk
management framework. This included review of updates to the Risk
factors, which are reflected in the disclosures in this Form 20-F, and
revisions to risk appetite statements. The Committee also received
updates on the implementation of the refreshed Three Lines of Defence
model, with discussion focusing on governance, clarity of roles and
responsibilities, and how accountability for risk and control will operate
under the evolving operating model. Independent benchmarking of
aspects of the Group’s risk maturity was also considered, alongside
insights from management and Group Internal Audit, to inform the
Committee’s oversight of risk management arrangements. Working with
the Head of Risk, the Committee has developed a program of work for
the Committee that reflects the increased time needed to oversee risk
matters, including the use of deep dives on specific risks.
Internal control and assurance were considered in the context of
evolving governance and regulatory expectations in the UK and
Australia. The Committee considered the Group’s approach to
internal control and assurance, and how we are addressing
governance requirements across the 3 jurisdictions, including
Provision 29 of the 2024 UK Corporate Governance Code. Cyber
security and technology risk also featured during the year. The
Committee received updates on cyber risk governance, including
independent assessments and the importance of cyber resilience
within the Group’s overall risk management framework.
The Committee maintained close engagement with the external
auditor throughout the year, including consideration of audit quality,
independence and inspection outcomes, and matters relevant to
audit planning and partner rotation.
During the year, the Committee worked alongside the Sustainability
Committee on matters of shared responsibility, including oversight of
assurance arrangements supporting sustainability and climate-related
disclosures. This included consideration of mandatory climate
reporting requirements and the proposed approach to assurance in
advance of inclusion in the Form 20-F.
Sharon Thorne
Audit & Risk Committee Chair
19 February 2026
Membership
The members of the Committee are all independent Non-Executive
Directors, and their biographies can be found on pages 104-105.
The Chair of the Board is not a member of the Committee.
As Rio Tinto’s securities are listed in Australia, the UK and the US,
we follow the regulatory requirements and best practice governance
recommendations for audit committees in each of these markets.
Australian listing requirements
In Australia, the members, and the Committee as a whole, meet the
independence requirements of the Australian Securities Exchange –
ASX Corporate Governance Council’s Corporate Governance
Principles and Recommendations (4th edition) (the ASX Principles).
Specifically, the Committee members between them have the
accounting and financial expertise, and a sufficient understanding of
the industry in which the company operates, to be able to discharge
the Committee’s mandate effectively.
UK listing requirements
In the UK, the members meet the requirements of the Financial
Conduct Authority’s (FCA) Disclosure Guidance and Transparency
Rules, and the provisions of the UK Corporate Governance Code
relating to audit committee composition. Sharon Thorne, the Chair of
the Committee, is considered by the Board to have recent and
relevant financial experience.
Joc O’Rourke has extensive experience in the natural resources
sector and Ben Wyatt, Jennifer Nason and Sharon Thorne have
gained experience in the mining sector by serving on the Board and
through regular site visits, reports and presentations. The
Committee as a whole has competence relevant to the sector in
which the company operates. The Committee complies with the
Audit Committees and the External Audit: Minimum Standard.
US listing requirements
In the US, the requirements for the Committee’s composition and
role are set out in the Securities and Exchange Commission (SEC)
and New York Stock Exchange (NYSE) rules. The members of the
Committee meet the independence requirements set out under Rule
10A-3 of the US Exchange Act and under Section 303A of the NYSE
Listed Company Manual. The Board has designated Sharon Thorne
as an “audit committee financial expert”. The Board also believes
that the other members of the Committee are financially literate by
virtue of their wide business experience.
Annual Report on Form 20-F 2025 | 116 | riotinto.com |
Directors’ report | Audit & Risk Committee report
Committee remit
The Committee’s objectives and responsibilities are set out in our
Terms of Reference (see riotinto.com/corporategovernance).
These follow the relevant best practice recommendations in
Australia, the UK and the US.
Our main duties
•Financial reporting: We review the key judgements needed to
apply accounting standards and to prepare the Group’s financial
statements. We also review the narrative reporting that goes with
them, with the aim of maintaining integrity in the Group’s financial
reporting. And we monitor items excluded in deriving alternative
performance measures such as underlying earnings.
•External audit: We oversee the relationship with the external
auditors and review all the non-audit services they provide and
their fees, to safeguard the auditors’ independence and
objectivity. We also assess the effectiveness of the external audit
and, when necessary, carry out a formal tender process to select
new auditors.
•Framework for internal control and risk management: We
monitor the effectiveness of the Group’s internal controls,
including those over financial reporting. We also oversee and
carry out a review of the Group’s risk management framework.
•Group Internal Audit (GIA): We oversee the work of GIA and its
head, who reports functionally to the Committee Chair.
•Mineral Resources and Ore Reserves: We oversee the reporting
and assurance of Mineral Resources and Ore Reserves, and
consider the impact on financial reporting.
•Distributable reserves: We provide assurance to the Board that
distributable reserves are sufficient, and in the correct corporate
entities, to support any dividend proposals.
These duties feed into an annual work plan that ensures we
consider issues on a timely basis. The Committee has authority to
investigate any matters within its remit. We have the power to use
any Group resources we may reasonably require, and we have
direct access to the external auditors. We can also obtain
independent professional advice at the Group’s expense, where we
deem necessary. No such advice was required during 2025.
The Committee Chair reports to the Board after each meeting on the
main items discussed, and the minutes of Committee meetings are
circulated to the Board.
We had 7 Committee meetings in 2025. Attendance at these
meetings is included in the table on page 112. The Committee has
met twice to date in 2026.
The Chair of the Board, the Chief Financial Officer, the Group
Financial Controller and the heads of GIA and Risk regularly attend
Committee meetings, as does the Chief Legal, Governance &
Corporate Affairs Officer. Other senior executives and subject-matter
experts are invited as needed.
The external auditors were present at all of the Committee meetings
during the year. The auditors review all materials on accounting or
tax matters in advance of each meeting, and their comments are
included in the papers circulated to Committee members. The audit
partners also meet with the Committee Chair ahead of each meeting
to discuss key issues and raise any concerns.
The Committee meets regularly in private sessions. We also hold
regular private discussions with the external auditors. Management
does not attend these sessions. The Committee Chair also has
regular contact and discussions with these stakeholders outside the
formal meetings.
Use of Committee meeting time in 2025
l | Financial reporting: 40% |
l | Internal control and risk management: 25% |
l | External audit: 15% |
l | Internal audit: 15% |
l | Governance: 5% |
Other focus areas in 2025
In addition to the main duties, the Committee also:
•Considered updates to the Group’s Risk factors and risk appetite,
including underlying risk evaluations, changes to risk disclosures,
and refinements of risk appetite statements. Considered the
assurance framework and the linkage between material risks,
material controls and assurance across the lines of defence.
Oversaw the effectiveness of the risk framework and considered
improvement plans and performance against those plans.
•Reviewed the analysis underpinning the longer-term viability
statement, including severe but plausible scenarios and reverse
stress testing, and confirmed the Group’s resilience to operate
and discharge its liabilities as they come due over the
assessed period.
•Considered the Group’s arrangements for internal control and
assurance in the context of the UK Corporate Governance Code,
including the requirements of Provision 29. This included
oversight of the governance, roles and responsibilities supporting
the program to adopt Provision 29, key design decisions and
progress against plan.
•Received updates on the Group’s approach to managing cyber
risk and technology resilience, including the governance, policies
and controls in place to support the protection of information and
operational technology. This included consideration of the cyber
threat environment, incident response arrangements, and
escalation processes. The Committee considered cyber risk as
part of its broader oversight of the Group’s risk management and
internal control framework.
•Received updates on the Group’s approach to managing its risks
associated with mineral assets stewardship. This included
consideration of the strategic, operational and regulatory
compliance dimensions of the risk across the discovery-to-closure
lifecycle and the controls and governance in place. The
Committee considered mineral assets stewardship as part of its
broader oversight of the Group’s risk management and internal
control framework.
•Oversaw the effectiveness of the Group’s ethics and compliance
framework, including the policies, systems and processes in place
to support compliance with legal and regulatory requirements and
to promote ethical conduct across the Group. This included
oversight of whistleblowing arrangements and reporting
mechanisms, and consideration of how responsibilities and
controls operated under the operating model.
•After a robust process, in early 2026, recommended to the Board
that the draft 2025 Annual Report should be taken as a whole, to
be fair, balanced and understandable.
•Reviewed the quality and effectiveness of the Group’s internal
control and risk management framework. This review included the
effectiveness of the Group’s internal controls over financial
reporting, and the Group’s disclosure controls and procedures in
accordance with sections 404 and 302 of the US Sarbanes-Oxley
Act 2002. The Committee also considered reports from GIA and
KPMG on their work in reviewing and auditing the control
environment.
Annual Report on Form 20-F 2025 | 117 | riotinto.com |
Directors’ report | Audit & Risk Committee report
Significant issues relating to financial statements
There were 4 significant issues considered by the Committee in relation to the financial statements.
Matters considered | Conclusion |
Review Arcadium Lithium purchase price allocation and goodwill carrying value | The Committee discussed management’s allocation of purchase consideration for Arcadium Lithium plc to identifiable assets and liabilities and the goodwill arising of $2.1 billion. Subsequent to the finalisation of this exercise, the Committee considered management’s annual impairment test of goodwill with a particular focus on forecast prices, discount rate and the associated disclosures. |
Review of carrying value of cash-generating units and impairment charges/ reversals | The Committee assessed management’s determination of cash-generating units, review of impairment triggers, and consideration of potential impairment charges and reversals over the course of the year. The key assets discussed included Rio Tinto Iron and Titanium where a transformation to respond to challenging market conditions was identified as an impairment trigger, and at Yarwun where a second tailings storage facility was determined not to be economically feasible and resulted in a curtailment of alumina operations to provide more time to identify technical solutions that could extend the life of the refinery. |
Application of the policy for items excluded from underlying earnings and underlying EBITDA | The Committee reviewed the Group’s policy for exclusion of certain items from underlying earnings and confirmed the consistent application of this policy year on year. The post-tax Rio Tinto share of items excluded from underlying earnings comprised charges of $949 million and income of $47 million. A reconciliation of net earnings to underlying earnings is presented in the Alternative Performance Measures section. |
Estimate for provision for closure, restoration and environmental obligations | The Committee reviewed the significant changes in the estimated provision for closure, restoration and environmental obligations by product group and Rio Tinto Closure. The Committee received updates on the closure studies completed in the period and reviewed economic assumptions assessed by management, including consideration of the discount rate. |
Climate change-related financial reporting
The Directors have considered the impact of climate-related risks
and opportunities when preparing and signing off the Company’s
accounts. The narrative reporting on climate-related matters is
consistent with the accounting assumptions and judgements made
in this report. The Audit & Risk Committee reviews and approves all
material accounting estimates and judgements relating to financial
reporting, including those relating to climate. The Committee also
works closely with the Sustainability Committee to oversee
engagement with the auditors who conduct assurance over climate-
related disclosures. Oversight of climate‑related matters is
embedded within the Group’s governance and risk management
processes.
We use scenarios to identify risks and opportunities, including those
related to climate change, and to assess the resilience of our
business under different transition scenarios. The Conviction
scenario is our central case. It underlies strategic planning across
the Group, is used in commodity price forecasts, valuation models,
reserves and resources determination, and in determining estimates
for assets and liabilities in our financial statements, including
impairment testing, estimating remaining economic life, and
discounting closure and rehabilitation provisions. The Resilience
scenario is our sensitivity analysis designed to test our annual plan
and investment proposals.
Neither the Conviction nor the Resilience scenarios above are
consistent with climate policies required to accelerate the global
transition to meet the stretch goal of the Paris Agreement. Despite
global agreements on climate change reached in Glasgow, Dubai
and Belem, emissions today continue to rise, making the 1.5°C goal
of the Paris Agreement unlikely to be achieved. In 2022, we
developed a Paris-aligned scenario, referred to as the Aspirational
Leadership scenario, which helps us better understand the
pathways to meet the Paris Agreement goal, and what this could
mean for our business.
Overall, the economic performance of our portfolio would be
stronger in scenarios with higher GDP growth and proactive climate
action, and is resilient under pricing scenarios aligned with 1.5°C,
2.1-2.3°C and 2.5°C outcomes, respectively.
We also use scenarios in our bottom-up asset-level physical risk
and resilience assessments. During the year, the assessment
performed under the physical resilience approach, together with our
ongoing review processes, including impairment assessments, did
not identify any material accounting impacts as a consequence of
the physical risks associated with climate change.
| For more information on climate change impact on our Group, see pages 53-86 and 161-164 in this report. |
Contact with financial regulators during 2025
During the year, the Independent Consultant retained as part of the
2023 court-approved settlement with the SEC concerning the 2012
Rio Tinto Coal Mozambique impairment, delivered their report to the
SEC. Their recommendations largely relate to training,
documentation and information sharing. Rio Tinto expects to have
completed its remediation activities by half-year 2026.
External auditors
Engagement of the external auditors
For the 2025 financial year, KPMG served as our auditors. Their
appointment was approved by shareholders at our AGMs in 2025.
The UK entity of KPMG audits Rio Tinto plc, and the Australian
entity audits Rio Tinto Limited. The UK audit engagement partner,
Jonathan Downer, was appointed in 2021 and the Australian partner,
Graham Hogg, was appointed in 2025. Jonathan Downer will rotate
off the audit at the conclusion of the 2025 audit and Simon Haydn-
Jones has been selected as the UK audit engagement partner. This
is a planned partner rotation, in line with the requirements of the
Financial Reporting Council’s (FRC) Ethical Standards and SEC
requirements.
We agreed on the scope of the auditors’ review of the half-year
accounts, and of their audit of the full-year accounts, taking into
consideration the key risks and areas of material judgement for the
Group. We also approved the fees for this work and the
engagement letters for the auditors.
The Group has fully complied with the Statutory Audit
Services Order.
Safeguarding independence and objectivity, and maintaining
effectiveness
In our relationship with the external auditors, we need to ensure that
they retain their independence and objectivity, and are effective in
performing the external audit.
Use of the external auditors for non-audit services
The external auditors have significant knowledge of our business
and of how we apply our accounting policies. That means it is
sometimes cost-efficient for them to provide non-audit services.
There may also be confidentiality reasons that make the external
auditors the preferred choice for a particular task.
However, safeguarding the external auditors’ objectivity and
independence is an overriding priority. For this reason, and in line
with the FRC’s Ethical Standard and the SEC independence rules,
the Committee ensures that the external auditors do not perform any
functions of management, undertake any work that they may later
need to audit or rely upon in the audit, or serve in an advocacy role
for the Group.
Annual Report on Form 20-F 2025 | 118 | riotinto.com |
Directors’ report | Audit & Risk Committee report
We have a policy governing the use of the auditors to provide non-
audit services. The cap on the total fees that may be paid to the
external auditors for non-audit services in any given year is 70% of
the average of the audit fees for the preceding 3 years. This is in
line with the FRC’s Ethical Standard. Non-audit assignments fall into
2 broad categories:
•Audit, audit-related or other “pre-approved” services where we
believe there is no threat to auditors’ independence and
objectivity, other than through the fees payable.
•Other services approved under delegated authority.
We apply different approval regimes to these areas of work.
Approval of “pre-approved” services is as follows:
•Up to $50,000: subject to prior notification to management, this
work can be awarded.
•From $50,001 to $100,000: requires the Chief Financial Officer’s
approval.
•Over $100,000 and with a tender process: if the external auditors
are successful in the tender, the appointment requires the Chief
Financial Officer’s approval.
•From $100,001 to $250,000 without a tender process: requires
the Chief Financial Officer’s approval.
•Over $250,000 without a tender process: requires the
Committee’s or Committee Chair’s approval.
In each case, the nature of the assignment and the fees payable are
reported to the Committee.
The Chief Financial Officer can approve permitted services that are
not “pre-approved” up to the value of $50,000 and an aggregate
value of no more than $100,000. Fees exceeding $100,000 in
aggregate require approval from the Committee or the
Committee Chair.
At the half-year and year-ends, the Chief Financial Officer and the
external auditors report to the Committee on non-audit services
performed and the fees payable. Individual services are also
reported to the Committee at each meeting that have either been
approved since the previous meeting, or that require approval for
commencement following the meeting.
Non-audit services provided by KPMG in 2025 were either within the
predetermined approval levels or approved by the Committee and
were compatible with the general standard of independence for
auditors and the other requirements of the relevant regulations in
Australia, the UK and the US.
Fees for audit and non-audit services
The amounts payable to the external auditors, in each of the past
2 years, were:
2025 $m | 2024 $m | |
Audit fees | 29.1 | 28.1 |
Non-audit service fees: | ||
Assurance services | 5.3 | 5.2 |
All other fees | 0.2 | 0.2 |
Total non-audit service fees | 5.5 | 5.4 |
Non-audit: audit fees (in-year) | 19% | 19% |
For further analysis of these fees, please see note 38 on page 227.
None of the individual non-audit assignments was significant in
terms of either the work done or the fees payable. We have
reviewed the non-audit work in aggregate. We are satisfied that
neither the work done, nor the fees payable, compromised the
independence or objectivity of KPMG as our external auditors.
No person who served as an officer of Rio Tinto during 2025 was a
Director or partner of KPMG at a time when they conducted an audit
of the Group.
Effectiveness of the external auditors
We review the effectiveness of the external auditors annually.
We consider the results of a survey containing questions on the
auditors’ objectivity, quality and efficiency. The survey, conducted in
the 2nd quarter of 2025, was completed by a range of operational
and corporate executives across the business, and by Committee
members.
We are satisfied with the quality and objectivity of KPMG’s 2024 audit.
Appointment of the auditors
The Committee has reviewed the independence, objectivity and
effectiveness of KPMG as external auditors in 2025 and in the year
to date. We have recommended to the Board that KPMG should be
retained in this role for 2026, which the Board supports.
KPMG have indicated that they are willing to continue as auditors of
Rio Tinto. A resolution to reappoint them as auditors of Rio Tinto plc
will be proposed as a joint resolution at the 2026 AGMs, together
with a separate resolution seeking authority for the Committee to
determine the external auditors’ remuneration.
Subject to the approval of the above resolution, KPMG will continue
in office as auditors of Rio Tinto Limited.
Risk management and internal controls
We review Rio Tinto’s internal control and risk management framework.
We also monitor the risks and material controls falling within our remit,
including financial, operational, reporting and compliance controls. A
summary of the business’s internal control and risk management
framework, and of the risk factors we face, is available in the Strategic
report on pages 91-99.
Our risk management framework is structured to assign
accountability for risks to leaders who are in the best position to
address them, while offering support via specialist capabilities and
expertise along with independent review and oversight. Leaders of
our businesses and functions are required to maintain adequate
internal controls, to verify that these are operating effectively and
are designed to identify any failings and weaknesses that may exist,
and that any required actions are taken promptly.
The Audit & Risk Committee also regularly monitors our risk
management and internal control framework (including internal
financial controls). We aim to have appropriate policies, standards
and procedures in place, and ensure that they operate effectively.
As part of considering the risk management framework, the
Committee receives regular reports from the Group Financial
Controller, the Chief Legal, Governance & Corporate Affairs Officer,
the Head of Risk, the Head of Group Internal Audit and the Head of
Tax on material developments including with respect to the legal,
regulatory and fiscal landscape in which the Group operates.
The Board, supported by the Audit & Risk Committee, has
completed its annual review of the effectiveness of our risk
management and internal control framework. This review included
consideration of our material financial, operational, reporting
and compliance controls along with improvements made to the
framework during the year. During the year, management identified
a material weakness in internal control over financial reporting
for the purposes of compliance with the Sarbanes-Oxley Act. No
corrected or uncorrected misstatement arose as a consequence of
this material weakness. Having considered this matter in the context
of the Group’s broader risk management and internal control
framework, the Board concluded that the Group has an effective risk
management and internal control framework. See page 119 for more
information on how we will meet the requirements of Provision 29 of
the 2024 UK Corporate Governance Code.
Internal control over financial reporting
The main features of our internal control and risk management
framework in relation to financial reporting are explained on
page 155.
Annual Report on Form 20-F 2025 | 119 | riotinto.com |
Directors’ report | Audit & Risk Committee report
Internal audit program structure
GIA provides independent and objective assurance of the adequacy
and effectiveness of risk management and internal control
framework. It may also recommend improvements.
While the Head of GIA reports administratively to the Chief Financial
Officer, appointment to, or removal from, this role requires the
consent of the Audit & Risk Committee Chair. The Head of GIA is
accountable to the Chairs of the Audit & Risk and the Sustainability
Committees, and communicates regularly with both. The Head of
GIA meets regularly with the Chair of the Audit & Risk Committee.
Our GIA team therefore operates independently of management. Its
mandate is set out in a written charter, approved by the Audit & Risk
Committee. GIA uses a formal internal audit methodology that is
consistent with the Institute of Internal Auditors’ (IIA) internationally
recognised standards.
GIA utilise an external service provider to support delivery of the
program of work whose appointment is approved by the Audit & Risk
Committee. There is a clear policy to address any conflicts of
interest, which complies with the IIA’s standards on independence.
This policy identifies a list of services that need prior approval from
the Head of GIA.
Governance of the annual plan
Each year’s internal audit plan is approved by the Audit & Risk
Committee and the Sustainability Committee. The plan is focused
on higher-risk areas and any specific areas or processes chosen by
the committees. It is also aligned with any risks identified by the
external auditors. Both committees are given regular updates on
progress, including any material findings, and can refine the plans
as needed. The Head of GIA also provides a thematic review of
previous audit findings for discussion with the Audit & Risk
Committee to identify any areas of future focus.
Effectiveness of the internal audit program
The Audit & Risk Committee monitors the effectiveness of the GIA
function throughout the year at its meetings.
We are satisfied that the quality, experience and expertise of GIA
are appropriate for the business and that GIA was objective and
performed its role effectively. We are satisfied that GIA is
appropriately resourced. We also monitored management’s
response to internal audits during the year. We are satisfied that
improvements are being implemented promptly in response to GIA
findings, and believe that management supports the effective
working of the GIA function. Initiatives such as the Guest Auditor
Program, where select Rio Tinto employees take the opportunity to
step into the role of an internal auditor, allow for a broader
understanding of the role of GIA and the development of valuable
new skills.
Committee effectiveness
The Committee reviews its effectiveness annually. In 2025, this was
accomplished through an internally-facilitated evaluation, with a
deeper dive taking place for the committees.
The performance of the Committee continued to be highly rated,
with no areas of concern raised and no significant changes
recommended. There was acknowledgement of the breadth of the
remit of the Committee and the continued need to ensure papers
focus on the key issues.
Rio Tinto is on schedule to meet the updated governance requirements introduced by Provision 29 of the 2024 UK Corporate Governance Code. Identification of material controls We have developed and implemented the Material Controls Assurance Program (MCAP) to identify and assess Rio Tinto’s material financial reporting, operational, compliance, and non- financial reporting controls. The MCAP adopts a top-down, risk-led methodology. The risk taxonomy for MCAP begins with the Group’s material risks and the financial reporting risk, followed by the most significant underlying risks (including price sensitive disclosure and reporting risks) that underpin them. The material controls were identified to align and mitigate the significant underlying risks. The existing Sarbanes-Oxley Act program is the basis for addressing financial reporting risk while our broader Three Lines of Defence model provides bottom-up risk-based assurance coverage for operational, compliance and non- financial reporting controls. All MCAP controls have been identified through collaboration between management, the risk owners and the control operators. These controls have been documented, along with their associated design and operating effectiveness attributes. We have established a methodology for assessing the severity of any deficiency identified. A monitoring process is in place to ensure the control population remains accurate and complete as the organisation’s operations and risk profile evolve. The MCAP is appropriately resourced and the implementation process was governed through a dedicated Steering Committee. Assurance and testing A formal assurance plan has been developed to support internal evaluation of control effectiveness. Dry run design and operating effectiveness testing of material controls was performed during 2025. This assurance plan was completed using cross-function inputs into control design, assurance scope and the articulation of risk appetite. Testing outcomes performed by the accountable control owners and the second line testing team were documented. Where enhancement opportunities were identified, these have been implemented. No external assurance has been sought over material controls. Governance Regular updates on the methodology, timeline and controls are provided to the Board’s Audit & Risk Committee, with the Board maintaining visibility and support throughout the process. Looking ahead The 2025 program has been treated as a “dry run” year. In 2026, the MCAP activities will transition into business-as- usual, with continuous testing and monitoring. | ||
Annual Report on Form 20-F 2025 | 120 | riotinto.com |
Directors’ report
Sustainability Committee report
The Sustainability Committee oversees our business’s sustainable
development activities and the integrity of our sustainability reporting.
The Committee supports the Board in ensuring that Rio Tinto
continues to supply the materials the world needs in a way that
prioritises the safety and wellbeing of our people and of the
communities who host us, protects the environment, and contributes
positively to the societies in which we operate.
Sustainability Committee members1, 2 |
Dean Dalla Valle (Chair) |
Dominic Barton |
Susan Lloyd-Hurwitz3 |
Joc O’Rourke4 |
Ngaire Woods |
1.Sam Laidlaw and Kaisa Hietala ceased to be members of the Committee when they
stepped down from the Board on 1 May 2025.
2.Martina Merz ceased to be a member of the Committee when she stepped down from
the Board on 23 October 2025.
3.Susan Lloyd-Hurwitz became a member of the Committee on 23 October 2025.
4.Joc O’Rourke became a member of the Committee on 1 June 2025.
The Committee’s priority is the safety, health and wellbeing of our
people and host communities. We were devastated by the tragic
death of our colleague Mohamed Camara, who suffered a fatal
injury while changing a haul truck tyre at the Simandou mine in
Guinea on 22 August 2025. We acknowledge the grief suffered by
his family, friends and coworkers, and will strive to ensure that the
critical lessons learned as a result of the detailed investigation
prevent such an event occurring again.
We are also greatly saddened by the death of a colleague following
an incident at the SimFer mine site on 14 February 2026. Our
deepest condolences are with the family, friends and colleagues of
our teammate who lost their life. We are determined to understand
and learn the lessons from this tragedy.
These, and other potential fatal incidents, illustrate that we must continue
to focus relentlessly on our fatality prevention measures, maintenance
procedures and safety culture. Following January 2024’s fatal plane
crash at Fort Smith involving Diavik employees, we have completed an
aviation review in which we benchmarked our aviation activities against
industry standards, closed identified gaps, and sought to embed a
proactive approach to the management of aviation risks.
With every fatal incident in the wider industry, including 3 fatalities at
our non-managed operations and one fatality on one of the non-
managed marine vessels, we take the time to reflect, learn critical
lessons, and implement change so that we can work towards every
colleague going home safe, every day. We continue to believe that
all fatalities are preventable, and the job of keeping people safe
rests with all of us.
The Committee has sought to re-emphasise this collective
responsibility in the past 12 months by:
•Overseeing the performance of the Group’s Safety Maturity
Model, our blueprint for safety, which enhances cultural and
system maturity. Insights from the SMM complement trends
identified through safety performance data.
•Focusing on PFIs involving energy transfer, including falling
objects and vehicle interactions.
•Reviewing our classification of work-associated injuries, ensuring
adherence to industry best practice.
In 2025, the Committee maintained its approach of dedicating
a meeting to each of the key themes in its scope: Health and Safety;
Environment and Closure; and Communities and Social
Performance (CSP). A 4th meeting included presentations
from each of our product group Chief Executives as well as the
Chief Commercial Officer and Chief Safety & Technical Officer, and
provided detailed insights into material sustainability and major
hazard risks and controls across each Product Group, our major
projects, exploration activities and our marine operations.
The Committee continues to oversee the Group’s progress towards
conformance with GISTM across all tailings storage facilities.
Updates to the Committee from accountable executives confirmed
substantial progress towards completion of verification activities and
closing of outstanding actions for several facilities.
Over the course of 2025, the Committee has also reviewed:
•the Group’s model for Closure and legacy management
•a renewed Nature Strategy and approach to Biodiversity
Management, which integrates nature-based risk assessment
into decision-making
•the work underway to manage the Group’s permanent impact on
water resources
•our relationships with Indigenous and land-connected Peoples
•progress on our Human Rights program and related disclosures
including the Modern Slavery Statement
•outcome-based measurement of our community investment
•ongoing Security initiatives, including continued adherence to the
Voluntary Principles on Security and Human Rights.
On community engagement and transparency, we are proud of the
Local Voices program which provides on-the-ground data and insights
into how communities experience and perceive our presence and
activities. Over time, these insights can enhance asset decision-making
and contribute to building and maintaining local trust and acceptance.
Since our Group-wide roll out in Q4 2023, more than 14,000 surveys
have been completed, with the program currently spanning 7 countries.
The Group Internal Audit function continued to provide assurance
across the Committee’s scope, including reviews of safety,
environment (including biodiversity), CSP management systems and
human rights. The Committee also reviewed and approved the scope
of the 2025 Sustainable Development External Assurance Plan.
Meeting the site teams and our local stakeholders is always
valuable for the Committee to further understand the context, their
challenges, and how the policies and practices are managed day to
day. Committee members were able to visit a number of sites in
2025, including in Canada, Mongolia, Argentina, Australia and
Guinea, to see progress on critical risk controls, environmental
management and social engagement.
The Committee will continue its focus in 2026 on preventing
fatalities, improving safety culture, embedding environmental
resilience, strengthening community partnerships and overseeing
human rights performance.
Dean Dalla Valle
Sustainability Committee Chair
19 February 2026
Annual Report on Form 20-F 2025 | 121 | riotinto.com |
Directors’ report | Sustainability Committee report
The role of the Committee
The Committee’s scope and responsibilities are set out in its Terms of
Reference, which can be found at riotinto.com/corporategovernance.
Activities in 2025
The Committee met 4 times in 2025. During these meetings, the
Committee:
•received presentations from each of the product group Chief
Executives, our Chief Commercial Officer, and our Chief Safety &
Technical Officer on the key sustainability and social licence, and
operational risks and trends for their respective product group or
function.
Safety and health
•Reviewed the learnings from the tragic incident at the Simandou
project in August 2025 that resulted in the death of Mr Mohamed
Camara, and received a briefing on the improvements that had
been shared across the Group as a result of these learnings.
•Received regular updates on the Group’s performance across key
safety and health metrics.
•Conducted regular reviews of PFIs occurring across the Group.
•Received regular updates on Major Hazard incidents across
the Group.
•Received an update on Aviation Safety, one year on from the Fort
Smith incident, which looked at key internal learnings, work
completed to address identified gaps, the initiatives taken to build
knowledge and capability across the Group, and the planned
initiatives to further strengthen and embed a proactive approach
to the management of aviation risks across the Group.
•Received a presentation on the improvements to processes across
the Group that had been adopted as a result of the learnings from the
fatality in October 2024 at the SimFer port project.
•Conducted deep dives into key safety risks and controls, including
process safety (focusing on the Sorel-Tracy furnace explosions in
June and July 2023).
Environment
•Conducted regular reviews of the Group’s performance across
key environmental metrics.
•Reviewed our biodiversity management strategies at the
Simandou project, including an outline of the critical biodiversity
risks across the project.
•Received updates on the Group’s implementation of GISTM,
and engaged with Accountable Executives in line with the
Standard’s requirements.
•Received an update on nature strategy and biodiversity
management which provided an update on Rio Tinto’s approach
to nature and the 2025 deliverables, and the short-, mid- and
long-term nature target program.
Communities and social performance
•Received progress updates on the Group’s CSP strategy.
•Received presentations from each of the product group Chief
Executives, our Chief Commercial Officer, and our Chief Safety &
Technical Officer on their key CSP risks.
•Oversaw regular updates on the work being done to mitigate the
economic and social risks as a result of the imminent
demobilisation of the Simandou construction workforce.
•Received a report from the Chair of the Australian Advisory
Group, an advisory forum, on implications for our Australian
business from emerging developments, policies or initiatives.
•Reviewed progress on development of the Group’s 2024 Modern
Slavery Statement and our embedded human rights due diligence
program.
Assurance, risk management and global sustainability trends
•Received a report from KPMG on their sustainability external
assurance program for 2024.
•Approved the external assurance plan for the Group’s
sustainability reporting, and for the performance data supporting
the safety and ESG performance outcomes under the short-term
incentive plan.
•Received reports from GIA on their audits relating to matters
within the Committee’s scope.
•Reviewed recommendations for the Group’s 2026 sustainable
development internal assurance plan.
Governance and disclosure
•Reviewed various sustainability disclosure materials.
•Reviewed an assessment of the Group’s most material sustainability
topics to be reported on in the 2025 Annual Report.
Other (including closure and security)
•Received an update on the Group’s closure strategy
implementation following the Executive Committee’s recent
endorsement of a change to the closure operating model.
•Received regular updates on security issues across the Group
and key insights on risk assessments and controls.
•Members of the Committee provided observations from recent
site visits they had attended.
The chart below represents the allocation of the Committee’s
meeting time during 2025:
l | Safety and health: 28% |
l | Communities and social performance (including cultural heritage and human rights): 28% |
l | Environment, including tailings management, water and biodiversity: 24% |
l | Assurance, risk management and global sustainability trends: 11% |
l | Governance and disclosure: 7% |
l | Other (including closure and remediation, and security): 2% |
The Committee Chair reports to the Board after each meeting and
our minutes are tabled before the Board. All Directors have access
to the Committee’s papers.
Sustainability disclosures
| Our sustainability framework and performance is described in detail on pages 32-88. |
| For more information and to access our 2025 Sustainability Fact Book see riotinto.com/sustainabilityreporting |
| Our 2024 Modern Slavery Statement can be found at riotinto.com/ modernslavery |
Annual Report on Form 20-F 2025 | 122 | riotinto.com |
Directors’ report
Remuneration report
Annual statement by the People & Remuneration Committee Chair
The Committee’s overarching purpose is to ensure the people, culture and
remuneration policies, frameworks and practices are aligned with the Group’s
strategy, objectives and values.
Dear Shareholders,
On behalf of the Board, I am pleased to introduce my first Directors’
Remuneration report since being appointed the Chair of the People
& Remuneration Committee. I want to begin by acknowledging the 7
years my predecessor, Sam Laidlaw, served as Committee Chair.
While there is a change in Committee Chair, I want to emphasise
that the Committee will continue to be mindful of its responsibilities
in overseeing executive pay and alignment with your interests. To
that end, we will maintain our engagement with shareholders in a
transparent and collaborative manner.
Nothing is more important than the safety, health and wellbeing of
our people.
Reflecting on the past year, I was greatly saddened that our
colleague Mohamed Camara died following a work-related incident
at the SimFer mine site in Guinea. This has been taken into
consideration in determining the 2025 STIP outcome.
I also feel a deep sense of loss after the death of the employee of a
contracting company following an incident at the SimFer mine site
on 14 February 2026.
Any death is devastating. Lessons have been, and continue to be,
learnt, with changes being made to enable the return of a fatality-
free company. Among them are changes to our remuneration,
outlined in this letter to you and further detailed on page 136.
Executive changes
In 2025, Jakob Stausholm, Chief Executive since 2021, stepped
down from his role. I want to extend my sincere gratitude to Jakob
for his service to Rio Tinto since joining as Chief Financial Officer in
2018. Under Jakob’s leadership, we made significant progress in
rebuilding relationships and our reputation following the events at
Juukan Gorge in 2020. Under his tenure as Chief Executive, we
returned over $40 billion to shareholders and advanced key
projects, namely at Simandou and Oyu Tolgoi, that will support long-
term shareholder value and create opportunities and prosperity for
local communities. Details of Jakob’s exit arrangements are included
on page 140.
Simon Trott, formerly Chief Executive, Iron Ore and prior to that our
Chief Commercial Officer, was appointed as Jakob’s successor in
August. As Chief Executive, Simon brought his wealth of commercial
and operational experience accumulated in his decades with Rio
Tinto to implement a stronger, sharper, simpler way of working which
contributed to our 2025 results. Simon was appointed on terms
consistent with our Remuneration Policy (Policy) and details are
included on page 125.
The organisational changes, announced following Simon's
appointment, have been to simplify our structure, allowing us to
focus on core assets to maximise value and shareholder returns.
As part of these changes, Matthew Holcz was appointed Chief
Executive, Iron Ore and Sinead Kaufman, Chief Executive, Minerals
and Kellie Parker, Chief Executive, Australia stepped down from
their roles in 2025. Both Sinead and Kellie have made significant
and valuable contributions to Rio Tinto over their combined 52 years
of service. They leave with the best wishes from the Board and their
colleagues at Rio Tinto.
Operational performance
Operational performance in 2025 showed solid improvements on
2024, allowing $6.5 billion to be returned to shareholders as
dividends. During 2025, we achieved 2 significant milestones that
have strengthened our portfolio and have the potential to generate
significant value. In March, we completed the acquisition of
Arcadium Lithium plc which provided us with the platform to develop
a world-class lithium business and deliver a critical material the
world needs as it shifts towards electrification. In December, the first
shipment of iron ore from Simandou left Guinea bound for
international markets. This is one of the biggest and most complex
mining projects in the world and after many years of developing our
infrastructure we have unlocked an exceptional new source of high-
grade iron ore that complements our world-class portfolio
of iron ore mines in Australia and Canada.
Our performance in 2025 was underpinned by the continuing
progress of our Safe Production System (SPS) which is now in
place at all our operating sites. Since its launch in 2021, we have
steadily integrated this across our assets and are seeing operational
improvements flowing through to our financial performance.
We continued to progress against our ambitious decarbonisation
goals to halve our emissions by 2030. In 2025, we delivered modest
reductions in emissions, despite underlying growth increases in
CuEq production. Whilst our progress towards our 2030 ambition
will not be linear, we are seeing the benefit of our focus and
innovation in this area translate into tangible emission reductions
year on year.
With decarbonisation-related targets incorporated in both our short-
term incentive plan (STIP) and long-term incentive plan (LTIP), we
have incentives for building the pipeline of opportunities over the
short term, and executing and delivering tangible environmental and
commercial benefits over the longer term.
Overview of pay and performance in 2025
Looking at pay in the broader context, we give significant focus
to fair and equitable pay as evidenced by our gender pay metrics.
Further details on our equal pay gap and gender pay gap, along with
a wider discussion on talent, workplace culture, respect and
inclusion, are provided in the sustainability section of this report on
pages 38-39.
We are also proud to be accredited members of the Fair Wage
Network as a Living Wage Employer, which reinforces our pay
principles of fairness and equity, as well as competitiveness.
Annual Report on Form 20-F 2025 | 123 | riotinto.com |
Directors’ report | Remuneration report
Short-term incentive plan
For 2025, our STIP scorecard remained unchanged with half
assessed against financial targets and half measured against
annual strategic measures. The financial measures include
underlying EBITDA and STIP free cash flow, assessed on a flexed
and unflexed basis. The other half of the scorecard is linked to
our performance around safety, carbon reduction, people and
culture, and progress on our objectives to excel in development and
strengthen our licence to operate. Overlaying the scorecard is a
fatality deduction as well as an individual performance multiplier.
STIP fatality deduction
A work-related incident at SimFer in 2025 resulted in a colleague's
tragic loss of life. The Committee treats any workplace fatality with
the utmost gravity and, accordingly, it was determined that the STIP
fatality deduction should be applied for 2025 which reduced the final
STIP result by 10% of the overall scorecard outcome for all eligible
employees.
STIP scorecard performance
The Group’s financial performance in 2025 was underpinned by
strong operational performance with an 8% uplift in CuEq
production, cost discipline, along with our diversifying portfolio. After
applying the fatality deduction, the Committee’s assessment of the
Group’s performance against the STIP scorecard determined an
overall scorecard outcome of 59.5% of maximum. Further details of
the specific measures and targets and the calculation of the 2025
scorecard outcome are included on page 131 .
The outcome of the financial component of the STIP scorecard was
at 64.4% of maximum, with adjusted STIP results for underlying
EBITDA of $25.9 billion and STIP free cash flow of $13.2 billion.
Further details can be found on page 131.
The strategic component of the STIP scorecard is underpinned by 4
strategic priorities - Impeccable ESG, Excel in Development, People
& Culture and Social Licence. Overall outcome against the strategic
scorecard was assessed by the Committee as 67.5% of maximum
which comprised a range of performance outcomes as explained
below.
Our Impeccable ESG measure was above target for the year, driven
by strong delivery of decarbonisation projects with multiple projects
continuing through the various approval stage-gates over the year.
Performance against the Excel in Development element, which
measures our progress in exploration, studies and project execution,
was assessed as above target for the year, reflecting further strong
delivery across a number of opportunities at different stages of
development.
Our People & Culture measure assesses the effectiveness of our
leadership, talent and engagement practices, including indicators
such as workforce representation and employee engagement
survey results. While we continue to make progress, the overall
outcome was assessed as below target with gender representation
meeting threshold performance and culture change progress
meeting target performance.
The Social Licence measure assesses changes in how we are
perceived by the general public using RepTrak, and by communities
that are local to operations through Voconiq’s Local Voices program.
Overall outcome for 2025 was above target.
Under the STIP operated since 2023, an individual multiplier can be
applied to reflect exceptional performance. This structure applies to
all participants in the plan and is used sparingly. The Committee
considered the individual performance of each Executive Committee
member, including the Executive Directors during 2025 and
determined that it would be applied to Simon Trott and Jérôme
Pécresse for their exceptional contributions over the financial year.
Further details on the individual performance and STIP outcomes
can be found on pages 131 to 135 and page 142. In light of the
strong financial and operating performance, progress on various
strategic initiatives, and the substantial value returned to
shareholders, the Committee considered the overall outcomes to be
a fair reflection of performance during the year.
Long-term incentive plan
The performance period for the 2021 Performance Share Award
(PSA) concluded in December 2025. Despite a strong Total
Shareholder Return (TSR) of 66.4% over the 5-year performance
period, this fell below the TSR of the S&P Global Mining Index
(91.2%). While this index includes a number of our key sector peers,
many of which we outperformed over this period, there was
recognition that the performance of certain peers was driven by
commodity prices, in particular with gold prices reaching record
highs.
The outcome was also below the TSR of the MSCI World Index
(93.2%). The Committee noted that despite our TSR being higher
than the majority of constituents of the MSCI, the performance of
this index has been driven by some exceptionally high performing
technology stocks rather than outperformance of the market as a
whole. Despite this, the Company has again delivered substantial
returns for our shareholders over the last 5 years, while also making
substantial investment in future growth opportunities.
In addition to reviewing the formulaic TSR outcomes which resulted
in a nil vesting result, the underlying business performance and the
consequence management framework were also considered by the
Committee and no changes to the formulaic outcomes were deemed
appropriate or necessary. In line with the new UK Corporate
Governance Code requirements, the Committee also confirms that
there was no application of malus or clawback provisions in the
reporting period.
2026 remuneration decisions
I met with a number of our major shareholders towards the end of
2025 to begin early dialogue on our Policy (due for renewal in 2027)
and how this may evolve given the fast pace at which the executive
pay landscape is changing across sector peers and the broader
market. In addition, the Committee believes our next Policy should
sharpen management’s focus on safe and efficient production,
strengthen mid‑term value creation by outperforming peers on TSR,
support continued abatement of carbon emissions, and reinforce
long‑term decision‑making that secures a strong legacy for the next
generation of leadership. In this context, recent market examples of
global companies seeking to structure long-term incentives as a
combination of performance shares and time-vested stock
potentially provide a balance between a performance focus and
longer-term stewardship.
Annual Report on Form 20-F 2025 | 124 | riotinto.com |
Directors’ report | Remuneration report
The Committee has decided against seeking an early shareholder
vote on our next Policy, and will present this for approval at the
usual triennial date in 2027, but it remains mindful that despite
changes made as part of our 2024 Policy, our relative market
positioning on pay has further weakened over time. Despite this, the
Committee will continue with the current approach to pay as I
engage with major shareholders during 2026 on our next Policy
proposal to ensure we have an executive pay framework that
attracts, retains and incentivises the best calibre of executive talent
with shareholder support.
The Chief Executive’s 2026 salary will remain below that of his
predecessor's salary even though he will receive a 5% increase to
reflect the assessment of how well he has transitioned into the role.
For the 2026 STIP, the weighting of the safety metric within the
scorecard will increase from 10% to 15%, with a corresponding
reduction in the decarbonisation metric from 10% to 5%. This
adjustment reflects the Board’s deep concern following two
consecutive years in which the Group experienced workplace
fatalities. Strengthening the weighting of safety reinforces the
Group’s unwavering commitment to ensuring that every employee
returns home safe and further elevates safety as a priority within the
STIP scorecard.
For LTIP awards to be granted in 2026, the Committee identified the
importance of aligning part of the incentive outcome to delivery
against the strategic priorities of operational excellence, project
execution and capital discipline, announced at our Capital Markets
Day in December 2025. The emphasis will be accommodated within
the LTIP strategic scorecard that has been used initially to focus on
decarbonisation. These new strategic priority measures will apply to
10% of the 2026 LTIP, with 10% assessed against decarbonisation
measures. TSR measures will continue to be emphasised and will
apply to 80% of the 2026 LTIP. Further details are provided on page
139.
The adjustments to the decarbonisation components of the STIP
and LTIP do not represent a reduction in the Group’s commitment to
its 2030 decarbonisation goals. Our climate strategy remains
unchanged. The refinements for 2026 are intended to ensure that
the Group’s incentive arrangements remain fully aligned with the
overall strategic priorities and that they continue to support a
balanced, long‑term performance framework while placing
enhanced focus on safety as our foremost priority.
I want to thank those investors whom I met and consulted with in
2025 and look forward to continued dialogue on these topics
in 2026.
I also want to reiterate our approach of engaging with shareholders
in a transparent and collaborative manner and of course welcome
shareholder feedback and comments on our 2025 Directors’
Remuneration report.
Yours sincerely,
Ben Wyatt
People & Remuneration Committee Chair
19 February 2026
Annual Report on Form 20-F 2025 | 125 | riotinto.com |
Directors’ report | Remuneration report
Remuneration Policy summary
Our Remuneration Policy applies to our Executive and Non-Executive Directors and to the Chair. In accordance with Australian law, it also
sets out the Remuneration Policy principles that apply to key management personnel (KMP) who are not directors. Our Remuneration Policy,
as approved at our 2024 annual general meetings (AGMs), can be found on our website. When developing the Remuneration Policy, the
Committee considered the pay arrangements from the perspective of clarity, simplicity, risk, predictability, proportionality and alignment to
culture. Further detail is set out on pages 119-126 of the 2023 Annual Report. The Remuneration Policy applicable to our executives and its
implementation in 2025 and 2026 is summarised below.
Fixed pay
Base salary
•Base salaries are set to reflect broad alignment with comparable roles
in the global external market and the executive’s qualifications,
responsibilities and experience.
•Base salaries are reviewed annually by the Committee. Any increase
is normally aligned with the wider workforce, with no cap on individual
salary increases to better align with market practice and to provide
sufficient flexibility where appropriate.
•Above average increases may be made in specific circumstances, such
as promotion, increased responsibilities or market competitiveness.
Pension or superannuation
•Rio Tinto may choose to offer participation in a pension plan,
superannuation fund, or a cash allowance in lieu.
•The maximum annual benefit is set to reflect the pension
arrangements for the wider employee population and is currently
capped at 14% of base salary.
Other benefits
•Executives are eligible to receive benefits which may include private
healthcare cover, life and accident insurances, professional advice and
other minor benefits.
•Secondment, relocation and localisation benefits may also be made
to, and on behalf of, executives living outside their home country.
STIP
•Measures and weightings for the scorecard are selected by the
Committee for each financial year. At least 50% of the measures will
relate to financial performance, and a significant component will relate
to safety. Other strategic, environmental, social and governance (ESG)
and individual business outcomes may be included.
•Underlying EBITDA and STIP free cash flow are used for the financial
measures, half of which are adjusted for commodity prices.
•For financial performance, threshold performance results in a nil
award (25% of award pays out for threshold performance for
non-financial measures) and outstanding performance results in
maximum payout. The payout for specific metrics may be varied
to reflect the stretch of the underlying target.
•Maximum opportunity is capped at 200% of base salary for
each executive.
•An individual performance multiplier may be applied to the STIP
outcome, but the final payout may not exceed 200% of salary.
•Normally, 50% of the STIP is delivered in cash and the balance is
delivered in shares that are deferred for 3 years as a Bonus Deferral
Award (BDA).
•Dividends (or equivalents) may accrue in respect of any BDA
that vest.
•The Committee retains the right to exercise discretion to ensure that
the level of award payable is appropriate.
•Malus, clawback and suspension provisions apply to the STIP
and BDA.
LTIP
•80% of the award is subject to performance measured against Total
Shareholder Return (TSR) relative to the constituents of the S&P
Global Mining Index and the MSCI World Index, and 20% is assessed
against a strategic scorecard (for Performance Share Award (PSA)
grants made from 2024).
•The Committee will set performance conditions aligned with the
Group’s long-term strategic objectives for each PSA grant. Relative
TSR has been chosen as the predominant measure of long-term
performance. The Committee retains the discretion to adjust the
performance measures and weightings as appropriate.
•Awards have a maximum face value of 500% of base salary.
Threshold vesting is 22.5% of face value. Target is 50% of face value.
•Dividends (or equivalents) may accrue in respect of any PSA
that vest.
•The Committee retains the right to exercise discretion and seeks
to ensure that outcomes are fair and reflective of the overall
performance of the company during the performance period.
•Performance period of 3 years, followed by a holding period of 2 years
(for PSA grants made from 2024).
•Malus, clawback and suspension provisions apply to LTIP awards
(noting clawback provisions comply with SEC requirements).
Shareholding requirements
•Over a 5-year period, executives should reach a share ownership in
Rio Tinto shares (expressed as a fixed number of shares and subject
to review every 2 years). The shareholding requirement for 2026 is:
•Chief Executive: 120,000 Rio Tinto plc shares or 105,000 Rio Tinto
Limited shares, or combination thereof
•Chief Financial Officer: 60,000 Rio Tinto plc shares
•Other executives (requirement varies by individual): 48,000-
54,000 Rio Tinto plc shares or 40,000-46,000 Rio Tinto Limited
shares.
•Longer periods may be accepted for new appointments.
•Executive Directors are required to retain a holding for 2 years after
leaving the Group, in line with the shareholding requirements.
Recruitment policy
•No form of “golden hello” will be provided upon recruitment. In
the case of internal appointments, existing commitments will be
honoured.
•Our approach concerning “buy-outs” is to determine a reasonable
level of award, on a like-for-like basis, consisting primarily of share-
based awards, but also potentially cash, taking into consideration the
quantum of forfeited awards, their performance conditions and their
vesting schedules.
•Other elements of remuneration are to be consistent with the Policy
applicable to other executives.
Termination policy
•An Executive Director’s notice period is normally 12 months, during
which they will receive their base salary and other benefits.
•Ineligible leavers forfeit their unvested LTIP and STIP entitlements.
•An eligible leaver may receive the following:
•A discretionary STIP award on a pro-rata basis, payable on the
normal STIP payment date in cash.
•Any unvested BDA from prior year awards will normally vest on the
scheduled vesting date.
•Unvested LTIPs will normally be retained and vest on the scheduled
vesting date, subject to performance conditions where applicable.
•PSA and Management Share Awards (MSA), where applicable, will be
reduced if the executive leaves within 36 months of grant.
•STIP and LTIP awards are subject to malus, clawback and suspension
following termination.
Annual Report on Form 20-F 2025 | 126 | riotinto.com |
Directors’ report | Remuneration report
Consequence management framework
•Under both the malus and clawback provisions, where the Committee
determines that an exceptional circumstance has occurred, it may, at
its discretion, reduce the number of shares to be received on vesting
of an award, or, for a period of 2 years after the vesting, the end of
any holding period or payment of a share or cash award, the
Committee can claw back value from a participant. This period is
deemed appropriate in light of the risk profile of the business and
standard market practice.
•The Committee will apply the consequence management framework,
and the circumstances under which the Committee exercises such
discretion may include, inter alia:
•fraud, misconduct or an exceptional event which has had, or may
have, a material effect on the value, reputation, or social licence of
any member of the Group
•an error in the Group’s financial statements which requires a material
downward restatement
•personal performance and leadership behaviour of a participant, of
their product group, or of the Group, which does not justify vesting; or
where the participant’s conduct or performance has been in breach
of their employment contract, any laws, rules or codes of conduct
applicable to them; or the standards or demeanour reasonably
expected of a person in their position
•misstatement or misrepresentation of performance
•where any team, business area, member of the Group or profit
centre in which the participant works (or worked) has been: found
guilty in connection with any regulatory investigation; or has been in
breach of any laws, rules or codes of conduct applicable to it; or the
standards, leadership behaviour or demeanour reasonably
expected of it
•where the Committee determines that there has been material
damage to the Group’s social licence to operate
•a catastrophic safety or environmental event.
•Under the suspension provisions, the Committee may suspend the
vesting of an award for up to 5 years until the outcome of any internal or
external investigation is concluded, and may then reduce or lapse the
participant’s award based on the outcome of that investigation. Where
suspension applies, the 2 year clawback period will not extend beyond the
period commencing from the original vesting date, or the end of any
holding period.
•Remuneration delivered under the Policy is subject to SEC-compliant
clawback policies for up to 3 financial years, requiring the clawback of
erroneously awarded incentives as a result of material misstatements.
Discretion
•The Committee reserves the right to review all remuneration
outcomes arising from mechanistic application of performance
conditions, and to exercise discretion to make adjustments where
such outcomes do not properly reflect underlying performance or
•the experience of shareholders or other stakeholders.
•The Committee may at its discretion adjust, or change performance
measures, or both, if events occur which cause the Committee to
determine that the measures are no longer appropriate or in the best
interests of shareholders or other stakeholders, and that amendment
is required so that the measures, as far as possible, achieve their
original purpose. Such discretion will be exercised judiciously and
clearly disclosed and explained in the Implementation report.
When remuneration is delivered
The following chart provides a timeline of when remuneration is delivered, using 2025 as an example.
Performance year
2025
+1
2026
+2
2027
+3
2028
+4
2029
+5
2030
Salary
Base
e.g. Health insurance,
Pension
Benefits
Performance period
STIP
LTIP
3-year performance period
JAN
25
MAR
25
MAR
26
How are performance
metrics for incentives
aligned with our strategy?
Approximately 27,000 employees
participate in the STIP through a single
Group scorecard. The metrics in the
STIP design remain aligned with the
implementation of our strategy and are
linked to our areas of strategic focus.
The PSA is targeted at our most senior
leaders, with consistent metrics applied for
all participants. The award is intended to
capture how we create sustainable value
for our shareholders over the longer term.
LTIP awards are based on relative TSR
performance plus a scorecard linked to the
Group’s long-term decarbonisation
ambitions and other strategic priorities.
50% deferred shares (BDA)
2-year holding period
DEC
27
DEC
28
DEC
29
Strategic priorities | Incentive | Reflection in scorecard |
People and Safety | STIP | Focuses on how we do things as well as what we achieve, as a critical lever of accelerating our culture change and building an inclusive workplace environment. Safety in all its aspects remains a key priority. |
Excel in Development | STIP | Measures progress in relation to exploration, studies and project execution. |
Sustainability and Social Licence | STIP LTIP | Progressing the work on our decarbonisation pathways towards achieving our 2030 ambition. The strategic scorecard in the LTIP includes measures linked to our multi-year and ambitious decarbonisation strategy, with a focus on a combination of offensive and defensive metrics to incentivise long-term competitive advantage. |
STIP | Measures our progress in building trust and meaningful relationships with our community of stakeholders. | |
Operational excellence | STIP | Focuses on achievement of financial plan commitments with financial measures that are assessed on both a flexed and unflexed basis. |
Total Shareholder Return | LTIP | Measures relative share price and shareholder return performance. |
Annual Report on Form 20-F 2025 | 127 | riotinto.com |
Directors’ report | Remuneration report
At a glance: 2025 remuneration outcomes
Executive Director remuneration (£’000)
The charts below set out the actual, threshold and maximum executive remuneration, as calculated under the UK regulations. As explained on
page 129, there are differences in both the reporting of remuneration and the methodology for measuring remuneration under the
Australian regulations. Percentages shown in the charts below represent percentage of maximum.
Chief Executive (from 25 August 2025)
Simon Trott
2025 Actual remuneration
100% | 74.4% | 0% |
2025 Threshold remuneration
100% | 25% | 22.5% |
£237
2025 Maximum remuneration
100% | 100% | 100% |
l | Fixed | l | STIP | l | LTIP |
Chief Executive (to 24 August 2025)
Jakob Stausholm
2025 Actual remuneration
100% | 59.5% | 0% |
2025 Threshold remuneration
100% | 25% | 22.5% |
£456
2025 Maximum remuneration
100% | 100% | 100% |
Chief Financial Officer
Peter Cunningham
2025 Actual remuneration
100% | 59.5% | 0% |
2025 Threshold remuneration
100% | 25% | 22.5% |
£158
2025 Maximum remuneration
100% | 100% | 100% |
£1,125
2025 short-term incentive plan
Group financial scorecard | ||
l | Weighting | 50% |
l | Weighted performance | 32.2% |
Group strategic scorecard | ||
l | Weighting | 50% |
l | Weighted performance | 33.8% |
Group financial scorecard performance
In 2025, the Group financial STIP outcome was above target at
64.4% of maximum.
Underlying EBITDA target range (threshold to outstanding) – $bn
Target: 21.9 | Actual: 25.94 |
30.1 |
Unflexed |
Target: 25.1 |
34.5 |
Flexed |
STIP free cash flow target range (threshold to outstanding) – $bn
Target: 11.0 | Actual: 13.23 |
15.5 |
Unflexed |
Target:12.9 |
18.0 |
Flexed |
Group strategic scorecard performance
2024 shareholding | 136% |
In 2025, the Group strategic scorecard outcome was above target at
67.5% of maximum.
2025 shareholding | 146% |
Impeccable ESG (20%) |
Excel in Development (10%) |
People and Culture (10%) |
Social Licence (10%) |
The STIP scorecard outcome post fatality deduction was 59.5%
of maximum.
2021–2025 long-term incentive plan
TSR relative to EMIX/S&P Global Mining Index | ||
l | Weighting | 50% |
l | Weighted performance | 0% |
TSR relative to MSCI World Index | ||
l | Weighting | 50% |
l | Weighted performance | 0% |
LTIP
Our TSR over the 5-year performance period was 66.4%, which was
below both the EMIX/S&P Global Mining Index and the MSCI World
Index, resulting in nil vesting of the 2021 PSA.
Share ownership requirements
The shareholding requirement for Executive Directors is expressed
as a fixed number of Rio Tinto plc or Rio Tinto Limited shares, or a
combination thereof. Simon Trott has only recently been appointed
as Chief Executive and will continue to build up his shareholding
towards his requirement over time.
Simon Trott
Appointed August 2025
2025 shareholding | 43% |
Requirement | 120,000 plc / 105,000 Limited | 100% |
Peter Cunningham
Appointed June 2021
Requirement | 60,000 plc | 100% |
Annual Report on Form 20-F 2025 | 128 | riotinto.com |
Directors’ report | Remuneration report
Wider employee remuneration
How is the Remuneration Policy applied to the wider employee population?
Our remuneration framework as it applies to the wider employee population is firmly anchored to our Remuneration Policy principles and
directly informs how competitiveness, performance linkage, fairness, and cultural alignment are operationalised throughout our programs
across the organisation. This ensures our reward philosophy and principles remain consistently embedded in all aspects of our remuneration
design and decision-making.
Fairness | Competitiveness | Performance | Potential | Retention | Wellbeing |
Consistency |
•We set pay through a globally consistent, principles‑driven
framework for all employees not covered by collective bargaining
or local legislative requirements.
•Our STIP design uses one scorecard for around 27,000
employees, including executives. This consistent approach
supports the delivery of our strategy, and a mindset shift in
how we win collectively.
Equity |
•We are committed to providing fair and equitable pay for
equivalent roles and contribution. We review and monitor pay
equity through multiple lenses, including gender, as part of our
annual remuneration review process.
•We annually review employee remuneration against living wage
benchmarks, and achieved accreditation as a Living Wage
Employer from the Fair Wage Network in 2024.
•Minimum global standards, which we implement across all
countries to ensure the foundations of our reward offerings, meet
levels determined by the Group irrespective of local market
practices. Examples include global standards for parental leave
and life assurance.
Ownership |
•We promote material participation in our all-employee share plan
(myShare) to create stewardship and provide employees with
access to help build to longer-term financial security.
•As at 31 December 2025, approximately 37,000 (2024: 36,000) of
our employees across more than 30 countries were shareholders
in the company.
•Employees invest approximately $27 million (2024: $26 million) in
Rio Tinto shares every quarter through myShare.
•Employees eligible for LTIP awards receive these as either MSA,
vesting over 3 years and not subject to performance conditions, or
PSA which are performance-tested over 3 years.
Recognition |
•RockStars is our global recognition and service milestones
program, reaching over 50,000 employees.
•Recognition moments are aligned with our company values,
promoting the behaviours we want to see at Rio Tinto.
•The program is complemented by our annual RockStars of the
Year Awards, where we recognise individuals who show above-
and-beyond care, courage and curiosity, and teams driving high-
impact collaboration against our strategic objectives.
Wellbeing |
•We provide industry and market leading benefit programs that focus on holistic and integrated support for physical, mental and financial
wellbeing.
•The benefits we offer can be tailored to suit different needs and life stages, including: employee assistance; minimum standards for life,
accident and disability insurances; medical plans and virtual care, health screening and prevention; and subsidised health and
wellbeing services.
Numbers at a glance | <1.5% Equal pay gap in favour of men (2024: <1.5%) | 37,000 Employee shareholders (2024: 36,000) | 27,000 STIP participants (2024: 27,000) | |
<1% Gender pay gap in favour of women (2024: <1%) | 201,000 Recognition and service milestone moments (2024: 195,000) | 2,300 LTIP participants (2024: 2,200) |
Annual Report on Form 20-F 2025 | 129 | riotinto.com |
Directors’ report | Remuneration report
Implementation report
This Implementation report is presented to shareholders for approval at our AGMs. It outlines how our
Remuneration Policy was implemented in 2025, and the intended operation in 2026.
About our reporting
As our shares are listed on both the Australian Securities Exchange
and the London Stock Exchange, the information provided within our
Remuneration report must comply with the reporting requirements of
both countries.
Our regulatory responsibilities impact the volume of information we
provide, as well as the complexity. In Australia, we need to report on
a wider group of executives, as described in the following
paragraph. In addition, as set out in the summary table below, the 2
reporting regimes follow different methodologies
for calculating remuneration.
In the UK, disclosure is required for the Board, including the
Executive Directors. The Australian legislation requires disclosures
in respect of key management personnel (KMP), being those
persons having authority and responsibility for planning, directing
and controlling the activities of the Group. In 2025, our KMP
comprise the Board, and all product group Chief Executives.
Executive KMP are listed on pages 140 and 141, with details of
the positions held during the year and dates of appointment to
those roles.
The single total figure of remuneration table on page 131 shows
remuneration for our Executive Directors, gross of tax and in the
relevant currency of award or payment.
In table 1a on page 145, we report information regarding executives in
accordance with Australian statutory disclosure requirements. The
information is shown gross of tax and in US dollars. The remuneration
details in table 1a include accounting values relating to various parts of
the remuneration package, most notably LTIP awards, and require a
different methodology for calculating the pension value. The figures in
the single total figure of remuneration table are therefore not directly
comparable with those in table 1a. Where applicable, amounts have
been converted using the relevant average exchange rates included in
the notes to table 1a.
In table 1b on page 146, we report the remuneration of the Chair
and the Non-Executive Directors.
Shareholder voting
As required under UK legislation, the current Remuneration Policy
was subject to a binding vote and approved at our 2024 AGMs. The
Implementation report, together with the annual statement by the
People & Remuneration Committee Chair, is subject to an advisory
vote each year as required by UK legislation. Under Australian
legislation, the Remuneration report as a whole is subject to an
advisory vote. All remuneration-related resolutions will be voted on
at the AGMs as Joint Decision Matters by Rio Tinto plc and
Rio Tinto Limited shareholders.
The differing approaches explained
As well as the difference in methodology for measuring
remuneration, there are key differences in how remuneration is
reported in the UK and Australia.
UK
•For reporting purposes, remuneration is divided into fixed and
variable elements.
•We report remuneration in the currency it is paid. For example,
where a UK executive is paid in pounds sterling, remuneration is
reported in pounds sterling.
Australia
•For reporting purposes, remuneration is divided into short- and
long-term elements.
•All remuneration is reported in US dollars, so using the previous
example, the UK executives’ remuneration would be converted to
US dollars using the average exchange rate for the financial year
(except STIP, which is converted at the year-end exchange rate).
The table below summarises the elements of each component of
remuneration, as well as the significant differences in the
approaches to measurement.
UK | ||
Fixed Base salary | ||
Benefits | ||
Pension The value of the pension contribution and payment in lieu of pension paid during the year | ||
Variable STIP – cash element | ||
STIP – deferred share element | ||
LTIP Valued at point of vesting | ||
Total remuneration | ||
Australia | ||
Short-term Base salary | ||
STIP – cash element | ||
Cash benefits | ||
Non-monetary benefits | ||
Long-term STIP – deferred share element Based on the amortised IFRS fair value of deferred shares at the time of grant | ||
LTIP Based on the amortised IFRS fair value of the award at time of grant | ||
Pension and superannuation valued on an accounting basis | ||
Total remuneration | ||
Annual Report on Form 20-F 2025 | 130 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
People & Remuneration Committee
Responsibilities
The Committee’s responsibilities are set out in our Terms of
Reference, which is reviewed annually, and published at
riotinto.com/corporategovernance.
Our responsibilities include:
People
•reviewing strategic workforce planning, including talent,
succession and development planning within the Group
•developing leaders’ skills
•overseeing and implementing the Board’s workforce engagement
plan and implementation.
Culture
•progressing implementation of the 2022 Everyday Respect Report
recommendations and the monitoring of broader cultural change
•developing strategies, initiatives and performance measures
around organisational culture and desired behaviours
•assessing the effectiveness of respect and inclusion policies.
Remuneration
•determining the Group’s remuneration strategy, policy
and framework
•determining the remuneration of the Chair, Executive Directors
and other members of the Executive Committee
•determining the mix and operation of the Group’s STIP and LTIP,
ensuring alignment with the company’s strategic objectives
•overseeing the operation of the Group’s STIP and LTIP for
executives, including approving awards, setting performance
criteria, and determining any outcomes or vesting, and, where
necessary, applying the consequence management framework to
current and prior awards
•determining contractual notice periods and termination
commitments, and setting retention and termination arrangements
for executives
•overseeing awards under the Group’s all-employee share plans
•the annual Directors’ Remuneration report, shareholder
engagement on the Remuneration Policy, including its
implementation, and other related matters including gender pay
•reviewing workforce remuneration and related policies, and the
alignment of incentives and rewards with culture and taking these
into account when setting the Policy for Executive Director
remuneration
•engaging independent external remuneration advisers.
We consider the level of pay and conditions for all employees
across the Group when determining executive remuneration.
Committee membership
The members of the Committee during the year and to the date of
this report were:
Ben Wyatt (Committee Chair from 2 May 2025) | Sam Laidlaw (member and Committee Chair to 1 May 2025) |
Dominic Barton | Susan Lloyd-Hurwitz |
Dean Dalla Valle | Jennifer Nason |
How we work
The Group Company Secretary (or their delegate) attends meetings
as secretary to the Committee. The Chief Executive, Chief People
Officer, Head of Reward and Head of Talent attend appropriate parts
of the meetings at the invitation of the Committee Chair. No
individual is in attendance during discussions about their own
remuneration.
How the Committee spent its time in 2025 | ||||
During 2025, the Committee met 7 times. We fulfilled our responsibilities as set out in our Terms of Reference. Our work in 2025 included: •reviewing culture maturity metrics •reviewing people development and talent management •determining any base salary adjustments and LTIP grants for executives •reviewing performance against the 2024 STIP and 2020 PSA targets, including assessing applicable outcomes •determining targets for the 2025 STIP and 2025 PSA •reviewing the strategy and report on the Group’s global benefit plans | •consulting with shareholders and proxy advisers on executive pay matters •finalising terms for the departures of Jakob Stausholm, Chief Executive, Sinead Kaufman, Chief Executive, Minerals and Kellie Parker, Chief Executive, Australia •setting terms of appointment of Simon Trott, Chief Executive and Matthew Holcz, Chief Executive, Iron Ore •reviewing executives’ progress towards the Group’s share ownership requirements •reviewing performance of the accountable executives for Global Industry Standard on Tailings Management (GISTM) implementation. | |||
Independent advisers
The Committee has a protocol for engaging and working with
remuneration consultants to ensure that “remuneration
recommendations” (being advice relating to the elements of
remuneration for KMP, as defined under the Australian Corporations Act
2001) are made free from undue influence by KMP to whom they may
relate. We monitored compliance with these requirements throughout
2025. Deloitte, the appointed independent advisers to the Committee,
gave declarations to the effect that any remuneration recommendations
were made free from undue influence by KMP to whom they related.
The Board has received assurance from the Committee and is satisfied
that this was the case.
Deloitte are members of the Remuneration Consultants’ Group, and
voluntarily operate under its Code of Conduct (the Code) in relation to
executive remuneration consulting in the UK. The Code is based
upon principles of transparency, integrity, objectivity, competence,
due care and confidentiality. Deloitte has confirmed that they
adhered to the Code throughout 2025 for all remuneration services
provided to Rio Tinto. The Code is available online at
remunerationconsultantsgroup.com.
The Committee is satisfied that the Deloitte team is independent. During
2025, Deloitte’s services also included attending Committee meetings,
providing support on executive changes in the year and giving advice in
relation to management proposals and shareholder consultations.
Deloitte was paid $520,856 for these services. Fees were charged on
the basis of time and expenses incurred. We received other services
and publications relating to remuneration data from a range of sources.
During the year, Deloitte also provided internal audit, tax compliance and
other non-audit advisory services. These services were provided under
separate engagement terms and the Committee is satisfied that there
were no conflicts of interest.
Annual Report on Form 20-F 2025 | 131 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Executive Directors
Single total figure of remuneration - Realised pay (£’000)
The single total figure of remuneration reflects the value of remuneration actually realised in respect of the 2025 financial year. As described on page
129, this may differ from the statutory values shown in table 1a. Realised pay can vary significantly from both statutory and target remuneration
because a substantial proportion of executive pay is performance based and influenced by share price movements.
Incentive - STIP payment | Value of LTIP awards vesting3 | ||||||||||
Executive Director | Year | Base salary | Benefits | Pension | Total fixed | Cash | Deferred shares | Face value | Share price appreciation | Total variable | Single total figure |
Simon Trott (Chief Executive)1 | 2025 | 472 | 636 | 66 | 1,174 | 352 | 352 | – | – | 704 | 1,878 |
Jakob Stausholm (former Chief Executive)2 | 2025 | 891 | 109 | 125 | 1,125 | 1,085 | – | – | – | 1,085 | 2,210 |
Jakob Stausholm (former Chief Executive) | 2024 | 1,277 | 168 | 179 | 1,624 | 636 | 636 | 449 | 229 | 1,950 | 3,574 |
Peter Cunningham (Chief Financial Officer) | 2025 | 780 | 30 | 109 | 919 | 466 | 466 | – | – | 932 | 1,851 |
Peter Cunningham (Chief Financial Officer) | 2024 | 756 | 44 | 106 | 906 | 376 | 377 | 45 | 23 | 821 | 1,727 |
1.Values in the table and sections supporting the table reflect remuneration from appointment as Executive Director and Chief Executive on 25 August 2025.
2.Values in the table reflect remuneration to 24 August 2025 when he stepped down as Chief Executive and includes an apportionment of the 2025 STIP award for the period served as an
Executive Director. The STIP award for the full performance year is £1,678,733.
3.Dividend equivalent shares are applied on the vesting of the LTIP awards and, for the purposes of this table, are valued at the share price when the LTIP was awarded and included in
the face-value figure. The impact of share price change for LTIP awards vesting is included under the heading “Share price appreciation”. The value of the LTIP awards reported in 2024
has been restated to reflect the actual vested value.
The 2021 PSA, which had a performance period that ended on 31 December 2025, vested at nil. No value is therefore shown under LTIP
face value or share price appreciation for 2025.
Fixed remuneration
Base salary
The Chief Executive’s salary on appointment in August 2025 was set below that of his predecessor with the intention to make higher increases as he
develops in the role. The Committee has assessed his performance and development since commencing as Chief Executive and feel it is appropriate
to award him a salary increase of 5%, slightly above the average UK employee rate. The Chief Financial Officer’s 2026 base salary increase is in line
with that to be awarded to the wider UK employee population of 2.7%. Base salaries are reviewed with a 1 March effective date.
Executive Director | Annual base salary 1 March 2025 £'000 | Annual base salary 1 March 2026 £'000 | % change |
Simon Trott | 1,3401 | 1,407 | 5% |
Jakob Stausholm | 1,411 | – | –% |
Peter Cunningham | 784 | 805 | 2.7% |
1.£1,340,000 represents his salary on appointment on 25 August 2025.
Benefits (2025)
Include healthcare, allowance for professional tax compliance services, occasional spouse travel in support of the business which is deemed
to be taxable to the individual, and non-performance based awards under the all-employee share plans.
The benefits value for Simon Trott includes relocation benefits of circa £610,000 in connection with his transfer from Australia to the UK
on becoming Chief Executive and in line with our international transfer policy that applies to executives across the business.
Pension (2025)
Pension benefits can be paid either as contributions to Rio Tinto’s company pension fund, as a cash allowance, or both.
Executive Director | Pension contributions paid to the Rio Tinto pension fund £'000 | Cash in lieu of pension contributions paid £'000 | Total £'000 | Pension provision (% of base salary) |
Simon Trott | 10 | 56 | 66 | 14% |
Jakob Stausholm | 7 | 118 | 125 | 14% |
Peter Cunningham | 10 | 99 | 109 | 14% |
Short-term incentive plan (2025)
2025 outcome
For an executive’s STIP outcome, the weighted STIP financial and strategic scorecard results are added to determine the total result.
For executives remaining in role, the resulting STIP is delivered equally in cash and deferred shares.
Executive Director | Weighted result (out of 100%) | Fatality deduction | Final scorecard result (%) | Individual performance multiplier | STIP outcome £’000 | Delivered in | Percentage of | |||||||
Financial (50%)1 | Strategic (50%)2 | Group scorecard result | Cash £’000 | Deferred shares £’000 | Max awarded | Max forfeited | Target awarded | |||||||
Simon Trott | 32.2% | 33.8% | 66% | (10%) | 59.5% | 125% | 704 | 352 | 352 | 74.4% | 25.6% | 149% | ||
Jakob Stausholm | 32.2% | 33.8% | 66% | (10%) | 59.5% | 100% | 1,085 | 1,085 | – | 59.5% | 40.5% | 119% | ||
Peter Cunningham | 32.2% | 33.8% | 66% | (10%) | 59.5% | 100% | 932 | 466 | 466 | 59.5% | 40.5% | 119% | ||
1.The financial scorecard includes flexed financials (underlying EBITDA and STIP free cash flow), focusing on the achievement of financial plan commitments and unflexed financials
(underlying EBITDA and STIP free cash flow) aligned to market conditions for our commodities.
2.The strategic scorecard includes Excel in Development (exploration progression, studies progression and project execution metrics), Impeccable ESG (safety and decarbonisation
metrics), People and Culture (gender diversity and culture change progress metrics) and Social Licence (reputation and Local Voices metric).
Maximum STIP award is capped at 200% of base salary. Target performance represents 50% of maximum, and outstanding performance
represents 100% of maximum. The cash component of the STIP award will be paid in March 2026, and the remainder will be delivered in
deferred shares as a BDA, vesting in December 2028. On cessation of employment, any unvested deferred shares will lapse unless the
Committee decides the executive is an eligible leaver.
Annual Report on Form 20-F 2025 | 132 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Under the STIP, an individual multiplier can be applied to reflect exceptional performance. This structure applies to all participants in the plan and is
used sparingly. A multiplier was applied to reflect Simon Trott’s exceptional performance in the year to significantly advance our operational
excellence, as summarised in the 2025 outcome table. In particular the Committee noted that in his previous role, the Iron Ore product group
delivered exceptional performance including recovery from the impacts of cyclones in Q1 followed by record rates of production. There were notable
uplifts in operational improvements allowing him to hand over a business that is in its best operational shape in many years. Since being appointed as
Chief Executive, Simon Trott has led and facilitated the Group’s most impactful transformation for many years. His revamped strategy was well
received by investors and is already reaping rewards with exceptional production performance in which production guidance was met or exceeded on
most commodities. The outcome following the application of the multiplier to his 2025 STIP is set out in the table on page 131 and on page 142.
Calculation of 2025 short-term incentive plan award
The following table summarises the calculation of the 2025 STIP award against the Group scorecard applicable to all STIP participants.
Group scorecard outcome
Weighting (out of 100%) | 2025 performance1 | Outcome | Result (% of maximum) | Weighted result (out of 100%) | ||||
Threshold | Target | Maximum | ||||||
Underlying EBITDA | Unflexed | 12.5% | $16.2 billion | $21.9 billion | $30.1 billion | $25.9 billion | 75% | 9.3% |
Flexed | 12.5% | $18.6 billion | $25.1 billion | $34.5 billion | 55% | 6.8% | ||
STIP free cash flow | Unflexed | 12.5% | $8.3 billion | $11.0 billion | $15.5 billion | $13.2 billion | 75% | 9.4% |
Flexed | 12.5% | $9.7 billion | $12.9 billion | $18.0 billion | 54% | 6.7% | ||
Total Financial | 50% | 64.4% | 32.2% | |||||
Impeccable ESG | AIFR2 | 2% | 0.44 | 0.38 | 0.3 | 0.37 | 50% | 1.0% |
SMM3 | 8% | 5.2 | 5.7 | 6.7 | 5.7 | 50% | 4.0% | |
Decarbonisation4 | 10% | 2.1 Mt CO2e | 3 Mt CO2e | 4 Mt CO2e | 3.37 Mt CO2e | 69% | 6.9% | |
Excel in Development | Exploration progression5 | 2.5% | 1 credit | 2 credits | 3 credits | 2.5 credits | 75% | 1.9% |
Studies progression | 2.5% | 3 studies | 4 studies | 6 studies | 7 studies | 100% | 2.5% | |
Project execution | 5% | 25% of projects | 50% of projects | 75% of projects | 85% | 100% | 5.0% | |
People and Culture | Gender diversity | 5% | 26.2% | 26.7% | 27.2% | 26.3% | 30% | 1.5% |
Culture change | 5% | 70 | 71 | 72 | 71 | 50% | 2.5% | |
Social Licence | Reputation | 7% | 57.8 or below | 58.8 to 60.8 | 62.8 or above | 64.1 | 100% | 7.0% |
Local Voices | 3% | 80% in 6 months | 80% in 4 months | 90% in 4 months | 80% in 4 months | 50% | 1.5% | |
Total Strategic | 50% | 67.5% | 33.8% | |||||
Total Group | 100% | 66.0% | ||||||
Fatality deduction | 10% reduction to STIP outcome | |||||||
Adjusted Group scorecard outcome | 59.5% | |||||||
1.No payout below threshold. Threshold payout is nil for financial measures and Social Licence and 25% of maximum for the other strategic measures. Payout for achieving target
corresponds to 50% of maximum, going up in a straight line to outstanding, which represents 100% of maximum.
2.AIFR assesses the number of injuries per 200,000 hours worked by employees and contractors at managed operations. It includes medical treatment cases, restricted workday and lost-
day injuries. Outcome has been capped at target due to a permanent damage injury occurring in 2025.
3.The Safety Maturity Model (SMM) result is the average of the SMM scores achieved by the individual assets included in the safety maturity program.
4.For Decarbonisation, the progress of carbon abatement projects against incremental stages of development is calculated as the expected 2030 carbon reduction, measured in tonnes of
CO2e, contributed by each abatement project that passes a stage-gate during the calendar year. The scope is restricted to direct abatement initiatives under the Global Decarbonisation
Programs, including approved renewable energy, abatement and energy efficiency projects. Nature-based solution (NbS) offset projects are not in scope.
5.One Conceptual Study (CS) project was completed in 2025 and assigned a value of 1 credit. One project advanced to CS and is assigned a value of 0.5 credits. Also, 4 projects
progressed from Target Testing to Project of Merit and each is assigned a value of 0.25 credits.
2025 STIP financial measures and Group scorecard commentary
Financial | ||||||
For 2025, the financial measures were underlying EBITDA and STIP free cash flow. The first, underlying EBITDA, gives insight to cost management, production, performance efficiency and the market environment. This is further described on page 171 along with a reconciliation of Profit after Tax for the year to underlying EBITDA. STIP free cash flow demonstrates our efficiency in converting EBITDA and underlying earnings to cash and provides further insight into our working capital and sustaining capital efficiency. STIP free cash flow comprises free cash flow (as reported on page 273), adjusted to exclude dividends paid to holders of non-controlling interests in subsidiaries (of $0.3 billion) and development capital expenditure (of $7.8 billion), including development capital expenditure associated with decarbonisation. This adjusted metric excludes the impact of those components of free cash flow that are not directly related to performance in the year and therefore better represents underlying business performance. | ||||||
Weighting 50% | Outcome |  | Above target (at 64.4% of maximum) | |||
Unflexed performance was underpinned by tailwinds from higher than target prices and the stronger US dollar, and reflected delivery of target volumes with cost and working capital discipline. There was operational improvement delivered across our operations, underpinning the 8% increase in CuEq production from 2024. Notably, the ramp-up of the Oyu Tolgoi underground and our bauxite operations performed better than target. These factors contributed to above target unflexed outcomes for EBITDA of 75% and STIP free cash flow of 75%. Flexed performance to remove the impact of commodity prices and foreign exchange rates gives us an indication of underlying business performance. | On removing the impact of prices and the stronger US dollar, the flexed component is above target for EBITDA at 55% and STIP free cash flow at 54%. Financial outcomes were normalised to align to the basis on which the original targets were set and to ensure the outcomes fairly reflect underlying business performance in the period. In line with our standard STIP principles, adjustments were made to exclude the impact of the acquisition of Arcadium (which was not in the Group's target; including acquisition and integration costs), the impact of legislative changes and tax matters, along with the impact of exceptional weather events (cyclones) on our Pilbara operations in Q1 2025. | |||||
Annual Report on Form 20-F 2025 | 133 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Commentary on strategic measures | ||||||
Impeccable ESG | ||||||
Impeccable ESG aims to promote safety in all its aspects and progress decarbonisation efforts as we work towards achieving our ambitious Scope 1 and 2 emissions reduction targets by 2030. Safety measures a combination of our Safety Maturity Model (SMM) and all-injury frequency rate (AIFR). The safety outcome is underpinned by an assessment of conformance with the GISTM for “high” and “very high” classification tailings facilities. Decarbonisation measures progress of carbon abatement projects against incremental stages of development. | ||||||
Weighting 20% | Outcome |  | Above target (at 59.3% of maximum) | |||
Safety is our number one priority, and we are immensely saddened to have tragically lost a colleague during the year. In 2025, our AIFR performance was 0.37, exceeding the annual target of 0.38. However, we had a permanent damage injury in 2025 and as such AIFR performance is capped at target. As part of our continual improvement, we have also seen an uplift of 0.5 in our SMM assessments score, aligned to target improvement of 0.5, resulting in a SMM global score of 5.7. The Safety underpin relating to GISTM implementation plans for all classifications of tailings facilities was met in 2025. We have had no significant incidents with tailings releases at any of our facilities. | Decarbonisation measures the progress of carbon abatement projects against incremental stages of development. Climate change and the low-carbon transition is at the heart of our strategy. We have set ambitious commitments to reduce carbon emissions (CO2e) from our business by 50% relative to 2018 levels by 2030, and achieve net zero Scope 1 and 2 emissions by 2050. Progress continued in 2025 with adjusted Scope 1 and 2 emissions reducing by 0.2 Mt CO2e during the year. A total of 21 projects representing 3.37 Mt CO2e of carbon abatement progressed through a development stage during the year, resulting in an outcome above the target of 3 Mt CO2e. | |||||
Excel in Development | ||||||
Excel in Development aims to incentivise a growth mindset by focusing on exploring new opportunities, prospecting new sites, technology, and innovation. It measures performance in exploration, studies and project execution. Exploration progress focuses on the opportunities coming out of the exploration pipeline and moving into formal studies. Studies progression assesses the number of studies approved to progress through stage-gates. Project execution measures our execution progress in creating growth opportunities and closure projects across the Rio Tinto portfolio. | ||||||
Weighting 10% | Outcome |  | Above target (at 94% of maximum) | |||
Exploration progression develops a dynamic portfolio of projects that are rigorously prioritised and rapidly tested. Exploration progression focuses on the opportunities coming out of the exploration pipeline and moving into formal studies, including conceptual studies completed with a decision to hold, divest or advance to Order of Magnitude (OoM), studies advancing from Projects of Merit (PoM) to Conceptual Studies (CS) phase, and studies advancing from Target Testing (TT) to PoM. One CS project was completed this year, one project advanced to CS and 4 projects progressed from TT to PoM, resulting in an above target weighted score of 2.5. | Studies progression of 7 studies in 2025, with 2 studies obtaining Notice to Proceed, feasibility studies completed for 4 projects and pre-feasibility studies completed for another. This result achieved maximum performance. Project execution refers to the percentage of in-flight and completed projects on track against the Investment Committee plan. Throughout 2025, we made strong progress on a range of projects with 11 out of 13 projects (85%) remaining on track with the approved Investment Committee plans achieving maximum performance. A significant milestone was also achieved with the start of operations at Simandou and first ore through Primary Crusher 2 at Oyu Tolgoi. | |||||
People and Culture | ||||||
People and Culture aims to improve diversity, and create an inclusive work environment in which people can thrive, accelerate our culture change and reinforce our values. It encompasses gender diversity and culture change metrics. Gender diversity measures the year-on-year increase in representation of women in our organisation. Culture progress reflects the change in organisational culture as indicated by our employee engagement survey. | ||||||
Weighting 10% | Outcome |  | Above threshold (at 40% of maximum) | |||
Gender diversity in 2025 was focused on increasing the number of women across our business. While progress was made in 2025, there is further opportunity for improvement in 2026. We were able to increase the representation of women in 2025 from 25.2% to 26.3%, slightly above threshold of 26.2%. | Culture is measured using results from our biannual, externally benchmarked employee engagement survey. The result from the second of our biannual employee engagement surveys at the end of 2025 was 71, which represented target performance. | |||||
Social Licence | ||||||
Social Licence is included as an indicator of our ability to build trust and acceptance with external stakeholders. This measure assesses changes in general public perceptions using RepTrak, and community perceptions local to operations through Voconiq’s Local Voices program. | ||||||
Weighting 10% | Outcome |  | Above target (at 85% of maximum) | |||
Reputation provides an indication of Rio Tinto’s social licence within the communities where we operate. The general public perception in selected countries is reflected by a reputation score measured by RepTrak. The 2025 result was 64.1, above the maximum range of 62.8 and a significant improvement on the score of 60.9 in the prior year. This score is a weighted, global aggregate made up of results from Australia, Canada, Mongolia, New Zealand, South Africa, the UK and the US. | Local Voices was introduced as a standalone measure in the scorecard in 2025, representing a significant step forward in how we evaluate and strengthen our social licence. The program provides asset teams with valuable insights to build trust-based relationships with communities by listening to their priorities and concerns and responding in meaningful ways. In 2025, 80% of assets deploying Local Voices shared community summaries within 4 months of survey completion, resulting in target performance. | |||||
Fatality deduction | ||||||
A 10% deduction was applied to the overall STIP scorecard result, covering all components of the STIP scorecard, to reflect the tragic work-related fatality in 2025. | ||||||
Annual Report on Form 20-F 2025 | 134 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Performance review process for executives
The Committee conducts annual performance reviews for all executives. The key objectives for the performance review process are to:
•improve organisational effectiveness by creating alignment between the executive’s objectives, Rio Tinto’s strategy, the individual’s
leadership behaviours and the company’s values
•provide a consistent, transparent and balanced approach to measure, recognise and reward executive performance.
The Chief Executive conducts the review for members of the Executive Committee and recommends the performance outcomes to the Committee.
The Chief Executive’s performance is assessed by the Chair of the Board and is discussed and considered with the Committee and the Board.
Performance reviews for all executives took place in 2025 and early 2026.
Commentary on individual performance
Simon Trott
Individual STIP multiplier outcome: +25% multiplier applied.
Strategic objectives | Performance assessment |
Best Operator Strong financial performance and prioritisation of Best Operator to enhance competitiveness (Outcome: Above target) | •Rolled out a transformative operating model and restructured the executive team to drive the company’s next chapter of growth. •Simplified the product group structure to 3 world class businesses: Aluminium & Lithium, Copper and Iron Ore. •Achieved record production in the Pilbara in the second half of 2025, demonstrating exceptional operational recovery and resilience following the significant disruptions from the cyclones in Q1. •Copper production achieved strong full-year results, supported by a robust second-half performance. •Exceeded full-year targets for bauxite production, driven by sustained performance above nameplate capacity at Amrun. |
Impeccable ESG Maintain relentless focus on safety, and advance our decarbonisation strategy (Outcome: Above target) | •Progressed the pathway for achieving a 50% reduction in Scope 1 and 2 emissions by 2030 with strong progress in advancing viable solutions for our Pacific Aluminium smelters (Boyne Smelters Limited and Tomago), which will be critical for achieving our ambitions. •Launched trial of battery swap electric haul truck technology at Oyu Tolgoi in Mongolia with China’s State Power Investment Corporation. •Successful start-up of ELYSISTM 450 kiloampere designed inert anode cell, a defining moment in the transition toward large- scale, low-carbon aluminium production. •First copper produced at Johnson Camp Mine in Arizona using Nuton technology, Rio Tinto’s proprietary bioleaching technology. |
Excel in Development Grow and diversify our portfolio (Outcome: Above target) | •All necessary state and federal government approvals received to develop the West Angelas Sustaining Project. •Implementation of Iron Ore product strategy. •Feasibility study commenced at Rhodes Ridge, one of the world’s best undeveloped iron ore deposits. •Integration of Rio Tinto Lithium progressed as planned. •First ore shipped from Simandou operations in Guinea, Africa’s largest greenfield integrated mine and infrastructure project. |
Social Licence Improve our social licence to operate by strengthening engagement with key stakeholders (Outcome: Above target) | •Comprehensive external stakeholder engagement program undertaken in key jurisdictions. •Maintained commitments to local communities, strong sustainability and social licence, including Indigenous and local procurement spend. •First modernised Traditional Owner agreement signed with Karlka Nyiyaparli Aboriginal Corporation. •Interim modernised agreement signed with Yinhawangka Aboriginal Corporation. •Extensive collaboration with local stakeholders on futures of Tomago and Boyne Smelters in Australia. |
Jakob Stausholm
Individual STIP multiplier outcome: Not applied
Strategic objectives | Performance assessment |
Best Operator Strong financial performance and prioritisation of Best Operator to enhance competitiveness (Outcome: At target) | •Delivered progress towards stable operating performance in line with long-term strategy to deliver profitable growth and build a stronger, more diversified business. •Achieved H1 record performance in bauxite production and from our Oyu Tolgoi copper mine in Mongolia. •Officially opened Western Range in the year, enabling work to continue to progress at Brockman Syncline 1 and commencement of construction works at Hope Downs 2. •Key contribution in enabling a seamless transition, providing thoughtful guidance and unwavering support which was instrumental in maintaining momentum through Q4. |
Impeccable ESG Maintain relentless focus on safety, and advance our decarbonisation strategy (Outcome: At target) | •Delivered a 0.2 Mt CO₂e reduction in adjusted Scope 1 and 2 emissions in 2025, despite higher underlying emissions arising from increased production. •Delivered 3rd tranche of our Gladstone operations energy solution, signing 2 new agreements on provision of solar and battery storage capacity. |
Excel in Development Grow and diversify our portfolio (Outcome: Above target) | •Completed acquisition of Arcadium Lithium plc. •Signed binding agreements with Codelco to form a joint venture to develop and operate a lithium project in Salar de Maricunga. •Signed a binding agreement with Empresa Nacional de Minería to form a joint venture to develop the Salares Altoandinos Lithium project in Chile. |
Social Licence Improve our social licence to operate by strengthening engagement with key stakeholders (Outcome: At target) | •Signed a Co-Management Agreement with the Puutu Kunti Kurrama and Pinikura (PKKP) Aboriginal Corporation to support a lasting and trusted partnership, and the overarching framework for Rio Tinto’s iron ore operations on PKKP Country. •Supported targeted stakeholder engagement in the final quarter of the year, including with the US Business Council and the European Roundtable. |
Annual Report on Form 20-F 2025 | 135 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Peter Cunningham
Individual STIP multiplier outcome: Not applied
Strategic objectives | Performance assessment |
Best Operator Strong financial performance and prioritisation of Best Operator to enhance competitiveness (Outcome: Above target) | •Led a detailed review of the Group’s financial performance to identify opportunities to materially improve financials. •Successfully integrated the business improvement agenda into the planning process. •Restructured parts of the Finance organisation to support improved performance. •Led improvement work around the Group’s risk management framework and preparations for enhanced external risk management reporting. •Ensured capital discipline around the Group’s overall level of capital expenditure. |
Impeccable ESG Maintain relentless focus on safety, and advance our decarbonisation strategy (Outcome: At target) | •Financially strengthened the decarbonisation pathway by leveraging third-party investment without compromising on achieving the 2030 target for 50% reduction. •Projects progressed, including phase 3 of repowering Boyne Smelter; progress towards execution of power purchase agreements (PPAs) in the Pilbara, Richards Bay Minerals and Kennecott; and commencement of execution at several major projects. |
Excel in Development Grow and diversify our portfolio (Outcome: At target) | •Led a successful strategy review in 2025 and the development of the subsequent communications to the market at the Capital Markets Day. •Oversaw the financial evaluation and execution of the Arcadium Lithium plc acquisition, ensuring disciplined valuation and executing funding for the transaction. •Played a key role in critical capital allocation decisions. •Supported the Board’s response to the resolution at the 2025 AGMs with respect to an independent review of the Group’s dual- listed structure. |
Social Licence Improve our social licence to operate by strengthening engagement with key stakeholders (Outcome: At target) | •Enhanced enterprise-wide risk review systems to integrate social licence considerations into capital allocation and project planning. •Active participation in CFO Roundtable events fostering dialogue with government representatives, financial institutions and local business owners on sustainable business practice and local economic development. •Engagement with external government and regulatory leaders to uphold sustainable business practices and address complex financial matters. |
Annual Report on Form 20-F 2025 | 136 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
2026 short-term incentive plan
This section outlines the operation of the 2026 STIP. For 2026, the STIP scorecard has increased the weight of the safety measure and
retained focus on key short-term decarbonisation elements.
2026 short-term incentive plan measures and weightings
Financial scorecard dimension | Weighting | What does it measure? | Commentary | |||
Underlying EBITDA Unflexed | 12.5% | Underlying EBITDA is an alternative performance measure and represents profit before tax, net finance items, depreciation and amortisation. | Underlying EBITDA is the prominent financial measure of underlying business performance on an income statement basis. The core objectives of robust operational performance and disciplined cost management are well reflected in underlying EBITDA. The underlying EBITDA target for STIP purposes is based on the Group’s annual plan, calibrated to reflect production guidance communicated at the start of the year. | |||
Underlying EBITDA Flexed | 12.5% | Underlying EBITDA, adjusted for the impact of commodity prices and foreign exchange rates. | Removing the impact of commodity prices and foreign exchange rates gives us a stronger indication of the underlying EBITDA outcome of our underlying business performance, aligned to the core objective of operational excellence. | |||
STIP free cash flow Unflexed | 12.5% | STIP free cash flow comprises free cash flow adjusted to exclude dividends paid to holders of non-controlling interests in subsidiaries and development capital expenditure (including development capital expenditure on decarbonisation projects). | STIP free cash flow demonstrates how we convert underlying EBITDA to cash and provides further insight into how we are managing efficiency and productivity, including working capital and sustaining capital. The STIP free cash flow target is based on the Group’s annual plan, calibrated to reflect production guidance communicated at the start of the year. | |||
STIP free cash flow Flexed | 12.5% | STIP free cash flow, adjusted for the impact of commodity prices and foreign exchange rates. | Removing the impact of commodity prices and foreign exchange rates gives us a stronger indication of the free cash flow outcome of our underlying business performance, aligned to the core objective of operational excellence. | |||
Total weighting | 50% |
Strategic scorecard dimension | Weighting | What does it measure? | Commentary | |||
People and Safety (25%) | ||||||
Gender representation | 5% | Strengthening inclusive leadership and talent practices, as reflected in improved gender representation outcomes at Rio Tinto. | These remain an important contributor to advancing our culture- change agenda. Using trends in responses and scores from our engagement survey, we also demonstrate to what extent our culture is changing. Both of these are important factors as we continue to transform our culture. | |||
Culture change | 5% | Measuring progress in our culture-change journey. | ||||
Safety index | 15% | AIFR as a lag indicator and a Safety Maturity extract from the Integrated Maturity Model which was introduced to reinforce the link between strong safety performance, well-maintained assets and operational excellence. Conformance to GISTM is set as an underpin. | Safety is at the heart of everything we do. The safety index provides focus on the importance of continuing to embed and strengthen our safety culture. | |||
Excel in Development (10%) | ||||||
Exploration, studies and project execution | 10% | Performance in exploration, studies and project delivery. | Exploration, studies and project execution identifies opportunities for growth and enhancing orebody reserves across our portfolio, while keeping focus on the importance of executing to time and budget. | |||
Sustainability and Social Licence (15%) | ||||||
Decarbonisation | 5% | Progress of moving carbon abatement projects through the various stages of development all the way to execution to meet our decarbonisation ambition. | Provides focus on progressing at pace and optimising the resource deployment of decarbonisation projects. | |||
Reputation | 5% | Indicators of Rio Tinto’s social licence across a broad set of stakeholders, including, but not only, communities, governments, customers, suppliers and civil society. | General public perception through a reputation score and local community perception, measured through the Voconiq Local Voices program. These social licence measures continue to form a key part of our strategy to build trust and meaningful relationships with our external stakeholders and communities neighbouring our operations. | |||
Meaningful Engagement - Local Voices | 5% | Community perception of meaningful engagement - how communities perceive our decision‑making processes, including whether they are respectful, transparent, inclusive and responsive to local values. | ||||
Total weighting | 50% | |||||
A fatality deduction of at least 10% will be applied in the event of work-related fatalities. This deduction, combined with the higher 15%
weighting of the safety index, ensures the prominence of safety in the STIP structure. The specific targets for the 2026 STIP are considered
by the Board to be commercially sensitive and will be disclosed alongside the outturn retrospectively in the 2026 Implementation report.
Annual Report on Form 20-F 2025 | 137 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Long-term incentive plan
PSA granted in 2021 were based on 2 performance conditions, both measured over a 5-year performance period:
•TSR relative to the EMIX Global Mining Index – 50%
•TSR relative to the MSCI World Index – 50%
Calculation of 2021 PSA vesting
The dual TSR measures recognise that the company competes in the global market for investors as well as within the mining sector, and
rewards executives for returns over the long term that outperform both the broader market and the mining sector. Over the 5-year
performance period to 31 December 2025, Rio Tinto’s TSR was 66.4%, which was below the TSR of both indices, resulting in a below
threshold outcome and nil vesting.
Index | Threshold (22.5% of maximum) | Maximum (100% of maximum) | Actual TSR performance | Weighting | Vesting outcome |
S&P Global Mining Index1 | Equal to Index | Above index by 6% p.a. | Below index by 5.5% p.a. | 50% | 0% |
MSCI World Index | Equal to Index | Above index by 6% p.a. | Below index by 6.0% p.a. | 50% | 0% |
1.The EMIX Global Mining Index was decommissioned on 31 July 2023 and therefore it was necessary to identify a replacement index for the remainder of the performance period. The
Committee considered a range of alternative indices and determined that S&P’s replacement index (the S&P Global Mining Index) was the most suitable, given the overlap in
constituents and close correlation in performance. TSR performance was calculated by our independent remuneration consultants tracking the EMIX Global Mining Index to 31 July 2023
and the S&P Global Mining Index thereafter. This methodology will apply to all relevant outstanding PSA.
For reference, the 2020 PSA vested at 12.75% on 20 February 2025 at Rio Tinto plc and Rio Tinto Limited share prices of £50.76 and
A$119.66 respectively (closing share price on the day prior to vesting). Dividend equivalents for the Executive Directors were equal to 40% of
the vested awards.
Long-term incentive plan awards granted in 2025
These awards are subject to TSR performance relative to the constituents of the S&P Global Mining Index (53.3%) and MSCI World Index
(26.7%), and a decarbonisation scorecard (20%) as set out in the Performance measures section below.
Executive Director | Type of award | Grant date | Face value of award (% of base salary) | Face value of award (’000) | % of vesting at threshold performance | Grant price1 | Conditional shares awarded | End of the period over which the performance conditions have to be fulfilled | End of holding period |
Simon Trott | PSA | 19 March 2025 | 500% | A$7,040 | 22.5% | A$121.69 | 57,851 | 31 December 2027 | February 2030 |
Jakob Stausholm | PSA | 19 March 2025 | 500% | £7,054 | 22.5% | £51.35 | 137,361 | 31 December 2027 | February 2030 |
Peter Cunningham | PSA | 19 March 2025 | 500% | £3,918 | 22.5% | £51.35 | 76,299 | 31 December 2027 | February 2030 |
1.In line with the Policy, the grant price for PSA is determined by reference to the average share price for the financial year prior to the year of grant. The grant price of £51.35 and
A$121.69 represents the Rio Tinto plc and Rio Tinto Limited average share prices for 2024.
Long-term incentive plan awards due to be granted in 2026
Executive Director | Type of award | Face value of award (% of base salary) | Face value of award (’000) | % of vesting at threshold performance | Grant price1 | Conditional shares to be awarded | End of the period over which the performance conditions have to be fulfilled | End of holding period |
Simon Trott | PSA | 500% | £7,035 | 22.5% | £48.18 | 146,011 | 31 December 2028 | February 2031 |
Peter Cunningham | PSA | 500% | £4,024 | 22.5% | £48.18 | 83,518 | 31 December 2028 | February 2031 |
1.In line with Policy, and as we have done since 1998, awards are calculated using the average share price over the previous financial year to mitigate the impact of short-term volatility in
the share price. The PSA granted in 2026 will therefore be calculated using the average share price for Rio Tinto plc over 2025, which was £48.18.
Performance measures
For PSA granted in 2025 and 2026, 80% of the award is based on relative TSR measured on a weighted ranked basis, with two-thirds of the
TSR element measured relative to sector peers (constituents of the S&P Global Mining Index) and one-third measured against a broader
market reference point (constituents of the MSCI World Index). The remaining 20% of the awards will be based on strategic measures,
which, for PSA granted in 2025, are linked to decarbonisation and, for PSA to be granted in 2026, will be assessed against both
decarbonisation progress and achievement against broader strategic objectives.
Performance measures | Threshold (22.5% of maximum) | Maximum (100% of maximum) | Weighting for 2025 and 2026 awards |
Relative TSR vs constituents of the S&P Global Mining Index | Median | Upper quartile | 53.3% |
Relative TSR vs constituents of the MSCI World Index | Median | Upper quartile | 26.7% |
Strategic scorecard | see page 139 | see page 139 | 20.0% |
Annual Report on Form 20-F 2025 | 138 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Decarbonisation (LTIP awards granted in 2024 and 2025)
Given the scale and complexity of our emissions portfolio, our decarbonisation ambitions, and the multi-year nature of this transition,
performance and progress will be assessed through a balanced scorecard approach. This scorecard incorporates a combination of metrics
designed to capture both opportunities and risks associated with the energy transition, with the aim of incentivising long-term competitive
advantage. The balanced scorecard comprises equally weighted elements assessed over a 3-year performance period.
Measures and targets for the 2024 and 2025 awards, including an update on performance tracking, are summarised below.
Residual emissions | 5% weighting | ||||
Measure and targets | Progress | ||||
Assesses reduction in Scope 1 and 2 emissions. Targets are aligned to the Group’s 2030 ambition of delivering a 50% reduction relative to our 2018 baseline, with the maximum outcome consistent with the linear trajectory required to meet this goal. When assessing performance, the relative contribution of nature-based offsets will be capped at 10% of the reduction. Any contribution from offsets will be disregarded for outcomes that exceed target. | 2024-2026 - tracking around threshold Projected net reduction of 4.1 Mt over the performance period, including nature-based offsets. Projected emissions reductions to 2030 are expected to be weighted to the end of the decade. 2025-2027 - tracking below threshold Projected net reduction of 1.8 Mt over the performance period including nature-based offsets. Projected emissions reductions to 2030 are expected to be weighted to the end of the decade. | ||||
Threshold (22.5% of maximum) | Target (50% of maximum) | Maximum (100% of maximum) | |||
3.95 Mt CO2e | 5.52 Mt CO2e | 7.1 Mt CO2e | |||
Project delivery | 5% weighting | ||||
Measure and targets | Progress | ||||
Successful delivery of abatement projects that are fundamental to achieving our decarbonisation objectives. Each year capex-funded priority decarbonisation projects will be identified for which investment approval has or will be granted. At the end of the 3-year performance period, each project will be evaluated for conformance to its approved plan in terms of both spend and schedule. A score out of 10 will be assigned to each project based on a predetermined framework. | 2024-2026 - tracking around threshold 4 projects have been included in the assessment of this metric and 3 of these remain largely on track for both cost and schedule, noting one project has been paused to resolve technical and design challenges. 2025-2027 - tracking at maximum One project is included in the assessment of this metric which is on track from a budget and schedule perspective. | ||||
Threshold (22.5% of maximum) | Target (50% of maximum) | Maximum (100% of maximum) | |||
Average score of at least 6 out of 10 being less than 25% deviation from planned cost and schedule | Average score of at least 8 out of 10 being less than 15% deviation from planned cost and schedule | Average score of at least 9 out of 10 being less than 10% deviation from planned cost and schedule | |||
Technology development | 5% weighting | ||||
Measure and targets | Progress | ||||
Assessing technology advancement and research and development breakthroughs by measuring Group research and development spend, and the successful implementation of projects that have a meaningful impact on the abatement of emissions (including spend associated with reducing Scope 3 emissions). | 2024-2026 - tracking at target Spend on research and development is tracking within target range, with projects expected to proceed into implementation later in the performance period delivering annual abatement over 500 kt. 2025-2027 - tracking at threshold Projects expected to proceed into implementation later in the performance period are delivering annual abatement over 500 kt, however spend on research and development is tracking below target. | ||||
Threshold (22.5% of maximum) | Target (50% of maximum) | Maximum (100% of maximum) | |||
0.2% of Group revenue on decarbonisation research and development spend. At least 1 project into implementation totalling 250 kt annual abatement | 0.4% of Group revenue on decarbonisation research and development spend. At least 1 project into implementation totalling 500 kt annual abatement | 0.5% of Group revenue on decarbonisation research and development spend. At least 2 projects into implementation totalling 750 kt annual abatement | |||
Transition strategy | 5% weighting | ||||
Measure and targets | Progress | ||||
This measure aligns decarbonisation activity with our value creation strategy, focusing on building new capabilities and commitments towards future growth assets. During the 2024-2026 performance period, the focus areas include Pacific Operations (PacOps) decarbonisation, aluminium recycling and ELYSISTM implementation. For 2025-2027, the measures cover PacOps decarbonisation, aluminium recycling and lithium growth. Any initiative retained on the scorecard across multiple years will be assessed solely on performance achieved within the relevant performance period. | 2024-2026 - tracking above threshold Progress has been made on the PacOps repowering strategy, with new power purchase agreements signed in the year. Discussions on both Tomago and BSL repowering solutions are continuing. For ELYSIS™ implementation, our Arvida smelter in Canada remains on track to achieve capacity to produce up to 2,500 tonnes of commercial quality aluminium without direct greenhouse gas emissions from 2027. We are seeing lower recycling volumes at Matalco, primarily due to external market factors. 2025-2027 - tracking around target Progress for PacOps remains broadly aligned with the 2024-2026 period. Matalco volumes remain lower than plan. For Lithium growth, based on the 2025 volumes and assuming similar performance trends, outcomes are expected to be at plan. | ||||
Threshold (22.5% of maximum) | Target (50% of maximum) | Maximum (100% of maximum) | |||
Average score of at least 6 out of 10, representing more limited progress | Average score of at least 8 out of 10, representing good progress towards strategic goals, some areas of outperformance, substantially achieved or on track to deliver major objectives, or progress with no major failures or impacts on broader performance of the Group | Average score of at least 9 out of 10, representing significant outperformance of expectations, implementation achieved or a major new advancement with scope for material benefits | |||
The Committee will retain discretion in determining vesting outcomes and where required will adjust targets or baselines in relation to any
material changes to the portfolio, such as following acquisitions, divestments or closure.
Annual Report on Form 20-F 2025 | 139 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Strategic scorecard (LTIP awards granted in 2026)
The December 2025 Capital Markets Day unveiled a refreshed strategy with the aim of delivering industry-leading returns by implementing a
stronger, sharper and simpler way of working. The refreshed strategy has 3 strategic priorities focused on driving step change in
performance and returns for shareholders. These priorities place strategic focus around operational excellence, project execution and capital
discipline, with our ambitious decarbonisation goal of 50% emissions reductions remaining a key priority. For 2026, changes to the LTIP
strategic scorecard will be made to incentivise for progress against the 3 strategic priorities, while retaining the most critical and relevant
decarbonisation linked metrics.
The scorecard and scoring matrix that will apply to 20% of the 2026 LTIP awards and which will be assessed over a 3-year performance
period is set out below. The remaining 80% of the 2026 LTIP awards will continue to be subject to TSR measures.
Strategic scorecard (20%) | Commentary | |
Decarbonisation - Residual emissions (5%) | This provides a measure of actual reduction in Scope 1 and 2 emissions with targets set taking into account the Group’s stated ambition of a 50% reduction by 2030 (relative to our 2018 baseline). Achieving the maximum outcome would be consistent with the linear trajectory required to meet this goal. The Committee will take into account the relative contribution of nature-based offsets when assessing performance. The contribution will be capped at 10% of the reduction. Any contribution from offsets will be disregarded for outcomes that exceed target. | |
Decarbonisation - Transition strategy (5%) | This measure aligns decarbonisation activity with our value creation strategy, specifically in building new capabilities or commitments towards new growth assets. For the 2026-2028 performance period, transition strategy outcomes that are significant to Group value were selected, with PacOps decarbonisation, aluminium recycling and lithium growth chosen. As these initiatives have been retained on the scorecard from prior years, they will be assessed solely on performance achieved within the relevant performance period. At the end of the 3-year performance period, each transition strategy will be assigned a score out of 10 using a predetermined framework and vesting will be determined based on the average score of the transition objectives. | |
Delivering Industry Leading Value (10%) | This measure is directly linked to the objectives set out at the December 2025 Capital Markets Day. It will be based on goals linked to Operational Excellence, Project Execution and Capital Discipline. The targets are linked to 3-year goals which support delivery of long-term competitive advantage and shareholder value. Operational Excellence objectives will be focused on achievement of enhanced production at lower cost. The specific factors taken into account in the assessment would include delivery of cost reductions (both absolute and on average unit cost basis) and delivery of consistent and sustained delivery of production volumes across each of our product groups. The Committee would also consider more detailed aspects of performance, including relevant market context to capture the underlying improvement in competitive positioning relative to the market. The Project Execution and Capital Discipline aspects of the strategy will be captured via production improvements at key growth initiatives (Oyu Tolgoi, Simandou and Rincon) that are critical to long-term growth, increases in return on capital employed and improvements in working capital ratio and sustaining capital intensity. At the end of the 3-year performance period, progress under the various elements will be given a score out of 10 using a predetermined framework and vesting will be determined based on the overall score under this element. Although the detailed objectives under this element are commercially sensitive, the Committee intends to provide enhanced disclosure regarding the basis of vesting at the end of the performance period. |
Threshold | Target | Maximum | ||||
Decarbonisation - Residual emissions (5%) Reduction in residual emissions relative to 2018 baseline | 3.95 Mt CO2e | 5.52 Mt CO2e | 7.1 Mt CO2e | |||
Decarbonisation – Transition strategy (5%) Alignment of decarbonisation activity with value creation | Average score – 6 out of 10 •Good performance but with more limited progress | Average score – 8 out of 10 •Good progress towards strategic goals •Some areas of outperformance •Substantially achieved or on track to deliver major objectives •Progress with no major failures or impacts on broader performance of the Group | Average score – at least 9 out of 10 •Implementation achieved or a major new advancement with scope for material benefits •Significant outperformance of expectations | |||
Delivering Industry Leading Value (10%) Operational Excellence elements - enhanced production at lower cost Project Execution and Capital Discipline – disciplined capex to invest in growth and return opportunities |
Annual Report on Form 20-F 2025 | 140 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Executive Directors’ shareholding
In line with our share ownership policy, Executive Directors’ shareholdings are set based on owning a fixed number of Rio Tinto shares,
which can be met through a holding of Rio Tinto plc shares, Rio Tinto Limited shares or a combination thereof.
Executive Director | Year requirement to be met | Effective holding of Rio Tinto plc ordinary shares | Effective holding of Rio Tinto Limited ordinary shares | % of requirement held | |||||
Requirement | 31 December 2025 | 31 December 2024 | Requirement | 31 December 2025 | 31 December 2024 | ||||
Simon Trott | 2030 | 120,000 | 7,671 | 441 | 105,000 | 38,735 | 35,354 | 43% | |
Jakob Stausholm | 2025 | 120,000 | 218,410 | 193,740 | 105,000 | – | – | 182% | |
Peter Cunningham | 2027 | 60,000 | 87,373 | 81,601 | 50,000 | – | – | 146% | |
The shareholdings shown above include 50% of the number of unvested BDA held by each executive. We operate a post-employment
shareholding requirement for Executive Directors and Jakob Stausholm will be subject to this requirement for 2 years following his
termination of employment.
Service contracts
Executive Director | Position held during 2025 | Date of appointment to position | Notice period |
Simon Trott | Chief Executive | 25 August 2025 | 12 months |
Jakob Stausholm | Chief Executive | 1 January 2021 | 12 months |
Peter Cunningham | Chief Financial Officer | 17 June 2021 | 12 months |
Either party can terminate their contract with notice in writing, or immediately in the case of the company by paying the base salary only in lieu of any
unexpired notice.
Executives’ external and other appointments
None of the Executive Directors currently has an external directorship.
Loss of office payments
Jakob Stausholm stepped down from his role as an Executive Director and Chief Executive on 24 August 2025. His employment will cease at
the end of his 12 month notice period on 23 May 2026, and he will continue to receive his base salary and contractual benefits up to his
termination date, participating in the STIP for the 2025 performance period but not for 2026. He will also receive payment for any accrued
and unused annual leave in line with relevant legislation and policy. Outstanding LTIP and all-employee share awards will be treated in
accordance with eligible leaver provisions of each plan and in accordance with our Policy, with pro-rating for service where applicable. All
LTIP awards will vest on their normal vesting dates with the PSA remaining subject to achievement of applicable performance conditions. He
will remain subject to a 2-year post-employment shareholding requirement.
Past director payments
There were no payments to past directors in excess of the de minimis threshold of £15,000.
Chief Executive’s remuneration over time
Year | Chief Executive | Single total figure of remuneration (’000) | Annual STIP award against maximum opportunity | Long-term incentive vesting against maximum opportunity (PSA) | |
2016 | Sam Walsh1 | A$5,772 | 68.2% | 50.5% | |
2016 | Jean-Sébastien Jacques | £3,116 | 82.4% | 50.5% | |
2017 | Jean-Sébastien Jacques | £3,821 | 73.4% | 66.7% | |
2018 | Jean-Sébastien Jacques | £4,551 | 70.1% | 43.0% | |
2019 | Jean-Sébastien Jacques | £5,999 | 74.8% | 76.0% | |
2020 | Jean-Sébastien Jacques | £8,670 | 0.0% | 66.7% | |
2021 | Jakob Stausholm2 | £2,788 | 61.3% | 0.0% | |
2022 | Jakob Stausholm | £5,010 | 48.7% | 100.0% | |
2023 | Jakob Stausholm | £8,311 | 56.0% | 94.1% | |
2024 | Jakob Stausholm3 | £3,574 | 49.5% | 12.75% | |
2025 | Jakob Stausholm4 | £2,210 | 59.5% | 0.0% | |
2025 | Simon Trott4 | £1,878 | 74.4% | 0.0% |
1.STIP award and PSA vesting percentages restated following release from the deed of deferral as described in prior Directors’ Remuneration reports.
2.Jakob Stausholm joined Rio Tinto in September 2018 and became Chief Executive on 1 January 2021. Therefore, he did not participate in the 2017 LTIP which vested at 66.7% of maximum.
3.The 2024 single total figure of remuneration for Jakob Stausholm reported in the 2024 Directors’ Remuneration report was £3.564 million, based on the estimated value of the 2020 PSA
which vested at 12.75%. The single total figure of remuneration for 2024 shown above is restated and based on the actual vesting share price of £50.76.
4.Jakob Stausholm stepped down as Chief Executive on 24 August 2025 and Simon Trott became Chief Executive on 25 August 2025
The effect of performance on the value of shareholdings, as measured by TSR delivered over the past 5 years, based on the sum of
dividends paid and share price movements during each calendar year, is detailed in the table below.
Year | Underlying earnings | Underlying EBITDA | Dividends paid per share | Share price – Rio Tinto plc pence | Share price – Rio Tinto Limited A$ | TSR | ||||||
$ millions | $ millions | $ cents | 1 Jan | 31 Dec | 1 Jan | 31 Dec | Group % | |||||
2021 | 21,401 | 37,720 | 963 | 5,470 | 4,892 | 113.8 | 100.1 | (3.8)% | ||||
2022 | 13,359 | 26,272 | 746 | 4,892 | 5,798 | 100.1 | 116.4 | 18.3% | ||||
2023 | 11,755 | 23,892 | 402 | 5,798 | 5,842 | 116.4 | 135.7 | 15.8% | ||||
2024 | 10,867 | 23,314 | 435 | 5,842 | 4,723 | 135.7 | 117.5 | (15.4)% | ||||
2025 | 10,868 | 25,363 | 373 | 4,723 | 5,994 | 117.5 | 146.8 | 43.7% | ||||
Annual Report on Form 20-F 2025 | 141 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
The data presented in this table reflects the dual corporate structure of Rio Tinto. We weight the 2 Rio Tinto listings to produce a Group TSR
figure in line with the weighting methodology used for the 2021 PSA. The TSR figure has been calculated using spot Return Index data from
DataStream as at the last trading day for the year, which is a different methodology than used to calculate the PSA outcome.
Total shareholder return
The vesting of the PSA granted in 2021 was subject to a relative
TSR measure against the S&P Global Mining Index (transitioned
from the EMIX Global Mining Index following its decommissioning in
July 2023) and the MSCI World Index.
The graph below shows Rio Tinto’s TSR performance for the 2021
PSA using the same methodology as that used to calculate the
vesting for the PSA granted in 2021, with a performance period that
ended on 31 December 2025.
Total shareholder return - 5 year
1.TSR for the MSCI and EMIX/S&P indices has been calculated using 12-month average
Return Index data for the year sourced from DataStream.
2.Rio Tinto's Group TSR has been calculated using a weighted average for Rio Tinto plc
and Rio Tinto Limited. The weighting is based on the free-float market capitalisation of
each entity as at the start of the period.
The following graph illustrates the TSR performance of the Group
against the S&P Global Mining Index (and for periods to 31 July
2023 against the EMIX Global Mining Index) and the MSCI World
Index over the 10 years to the end of 2025.
The graph meets the requirements of Schedule 8 of the UK Large
and Medium-sized Companies and Groups (Accounts and Reports)
Regulations 2008 (as amended) and is not an indication of the
vesting of PSA granted in 2021.
Total shareholder return - 10 year
1.TSR has been calculated using spot Return Index data as at the last trading day for the
year sourced from DataStream.
2.Rio Tinto's Group TSR has been calculated using a weighted average for Rio Tinto plc
and Rio Tinto Limited. The weighting is based on the free-float market capitalisation of
each entity as at the start of the period.
Other executive key management personnel
This section sets out remuneration information pertaining to
executive key management personnel (KMP) excluding the Chief
Executive and the Chief Financial Officer. The Policy applicable to
the Executive Directors is also applicable to the other executive
KMP with variances specified in this section.
The remuneration mix for other executive KMP under this Policy is
set out in the chart below.
2025 remuneration mix
Maximum
Target
l | Fixed pay | l | STIP – Cash | l | STIP – BDA | l | LTIP |
2025 assumptions
Fixed pay includes base salary, pension and benefits. The value of
benefits is estimated at 7% of base salary.
Performance-related (at risk) | ||
Target STIP and LTIP performance | •STIP award of 50% of the maximum award (equates to 100% of base salary) •PSA expected value of 50% of face value, calculated as 250% of base salary | |
Maximum STIP and LTIP performance | •Maximum STIP award of 200% of base salary •Maximum PSA face value of 500% of base salary | |
No assumption has been made for growth in share price and
payment of dividend equivalents.
The table below outlines the positions held by the other executive KMP and their respective dates of appointment:
Name | Position(s) held during 2025 | Date of appointment | ||||||||||
2021 | 2022 | 2023 | 2024 | 2025 | ||||||||
Matthew Holcz | Chief Executive, Iron Ore | 27 August 2025 | ||||||||||
Katie Jackson | Chief Executive, Copper | 1 September 2024 | ||||||||||
Sinead Kaufman1 | Chief Executive, Minerals | 1 March 2021 | ||||||||||
Jérôme Pécresse | Chief Executive, Aluminium | 23 October 2023 | ||||||||||
Simon Trott2 | Chief Executive, Iron Ore | 1 March 2021 | ||||||||||
1.Sinead Kaufman was a KMP until 26 August 2025. 2.Simon Trott was appointed Chief Executive from 25 August 2025. | ||||||||||||
Annual Report on Form 20-F 2025 | 142 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Base salary
Base salaries for executive KMP members are reviewed annually by the Committee, with increases generally aligned with the wider
employee population in the relevant jurisdiction. Variations may occur in instances in which an individual has changed position, or the
position’s duties and responsibilities have been enlarged, for example as a result of a reorganisation or acquisition, or where an individual’s
remuneration has fallen below comparable positions in the market.
Short-term incentive plan
Overview of 2025 short-term incentive plan weightings and measures
The measures and weightings used to determine STIP awards for executives in 2025 are set out on page 131.
The 2025 STIP awards are detailed in the table below. The amounts reflect the application of a 10% fatality deduction to the overall
STIP outcome.
Percentage of: | ||||
2025 STIP award ('000) | Maximum STIP awarded | Maximum STIP forfeited | Target STIP awarded | |
Matthew Holcz1 | A$555 | 59.5% | 40.5% | 119% |
Katie Jackson | £750 | 59.5% | 40.5% | 119% |
Sinead Kaufman2 | A$956 | 59.5% | 40.5% | 119% |
Jérôme Pécresse | C$2,135 | 74.4% | 25.6% | 149% |
Simon Trott3 | A$1,354 | 74.4% | 25.6% | 149% |
1.For the period from 27 August 2025 when Matthew Holcz became KMP.
2.For the period to 26 August 2025 during which Sinead Kaufman was KMP.
3.For the period to 24 August 2025 during which Simon Trott was Chief Executive, Iron Ore.
Share ownership
The following table shows the share ownership level for other
executive KMP as a percentage of their overall requirement. Share
ownership levels are set for each individual based on a fixed
number of shares and range between 48,000 to 54,000 Rio Tinto plc
shares or 40,000 to 46,000 Rio Tinto Limited shares.
Each executive KMP listed below is relatively new in role and will
continue to build up to their requirement over time.
Share ownership level at 31 December 2025 as a percentage of requirement | ||
Matthew Holcz | 16% | |
Katie Jackson | 21% | |
Jérôme Pécresse | 19% |
Service contracts
KMP service contracts can be terminated by the company or
executive with 12 months’ notice in writing, or immediately by the
company by paying base salary only in lieu of any unexpired notice.
Other KMP appointments
All newly appointed executives have received a remuneration
package that is aligned with our Policy and comprises: base salary
in line with market benchmarks; target STIP opportunity of 100% of
base salary (with maximum opportunity of 200% of base salary);
LTIP awards of up to 500% of base salary; company pension
contributions of 14% of base salary; and other benefits such as
company-provided healthcare coverage, and continued eligibility to
participate in the all-employee share plans. A minimum shareholding
requirement applies on appointment to be built up over
subsequent years.
Executive departures
Sinead Kaufman ceased to be a KMP on 26 August 2025 and will
leave the Group in 2026. She will continue to receive base salary,
pension contributions and contractual benefits up until the cessation
of her employment. Should her employment cease before the end of
her 12 month notice period, she will be paid base salary in lieu of
any remaining notice period. She will also receive payment for any
accrued but unused annual leave and long service leave on
cessation of employment in line with relevant legislation and policy.
She will be treated as an eligible leaver for the purposes of STIP,
LTIP and all-employee share awards.
Broader employee disclosures
Chief Executive pay ratio
The ratio of the single total figure of remuneration for the
Chief Executive to the lower quartile, median and upper quartile of
the Rio Tinto UK employee population for 2025 is set out in the table
below.
Method | Lower quartile | Median | Upper quartile | |
2025 1 | A | 31:1 | 23:1 | 15:1 |
2024 2 | A | 30:1 | 21:1 | 14:1 |
1.The 2025 data is based on a consolidation of the remuneration data of both Chief
Executives who served in 2025.
2.The 2024 pay ratio data has been restated based on actual pay outcomes for the Chief
Executive in 2024.
The ratios have been calculated using the option ‘A’ methodology for
UK employees at 31 December 2025. The median Chief Executive
pay ratio of 23:1 is slightly higher than the prior year, primarily due to
the benefits provided in relation to the relocation of the new Chief
Executive from Australia to the UK. The Committee continues to be
mindful of the relationship between executive remuneration and that
of our broader workforce, and the Committee’s decision-making will
continue to be supported by regular and detailed reporting on these
matters.
Relative spend on remuneration
The table below shows our relative spend on remuneration across
our global employee population and distributions to shareholders in
the year. We have also shown other significant disbursements of the
company’s funds for comparison.
Stated in $m | 2025 | 2024 | Difference in spend |
Remuneration paid1 | 7,605 | 7,055 | 550 |
Distributions to shareholders2 | 6,145 | 7,025 | (880) |
Purchase of property, plant and equipment, and intangible assets3 | 12,335 | 9,621 | 2,714 |
Corporate income tax paid3 | 4,215 | 4,165 | 50 |
1.Total employment costs for the financial year as per note 7 to the financial statements.
2.Distributions to shareholders include equity dividends paid to owners of Rio Tinto shares
as per the consolidated cash flow statement.
3.Purchase of property, plant and equipment, and intangible assets, and corporate income
tax paid during the financial year are as per the consolidated cash flow statement.
Annual Report on Form 20-F 2025 | 143 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Change in Director and employee pay
In the table below, we compare the annual changes in salary and annual incentives of the Directors for the past 5 years, to that of the
Australian employee population. Column “a” represents the percentage change in salary and fees; values in column “b” represent the
percentage change in annual incentive outcomes for performance periods in respect of each financial year.
2020 to 2021 | 2021 to 2022 | 2022 to 2023 | 2023 to 2024 | 2024 to 2025 | ||||||
a1 | b | a1 | b | a1 | b | a1 | b | a1 | b2 | |
Executive Directors | ||||||||||
Simon Trott3 | – | – | – | – | – | – | – | – | – | – |
Jakob Stausholm | 46% | 25% | 2% | (18)% | 4% | 20% | 4% | (8)% | 9% | 32% |
Peter Cunningham | – | – | – | 47% | 4% | 28% | 4% | (8)% | 3% | 24% |
Non-Executive Directors | ||||||||||
Dominic Barton | – | – | – | – | 50% | – | 8% | – | 1% | – |
Simon Henry | – | – | (6)% | – | (7)% | – | 18% | – | (4)% | – |
Sam Laidlaw | – | – | – | – | – | – | 15% | – | 3% | – |
Jennifer Nason | – | – | (6)% | – | (8)% | – | 14% | – | 20% | – |
Ngaire Woods | – | – | – | – | – | – | 8% | – | (3)% | – |
Ben Wyatt | – | – | 12% | – | – | – | 21% | – | 30% | – |
Dean Dalla Valle | – | – | – | – | – | – | 34% | – | 9% | – |
Kaisa Hietala | – | – | – | – | – | – | 28% | – | 9% | – |
Susan Lloyd-Hurwitz | – | – | – | – | – | – | 9% | – | 9% | – |
Joc O’Rourke | – | – | – | – | – | – | 39% | – | 14% | – |
Martina Merz | – | – | – | – | – | – | – | – | 0% | – |
Sharon Thorne | – | – | – | – | – | – | – | – | 32% | – |
Australian workforce4 | 4% | (18)% | 7% | 15% | 8% | 16% | 6% | (19)% | 7% | 22% |
1.Change in salary and fees compared on an annualised basis to smooth the impact of part-year appointments or departures.
2.The percentage change in annual incentive compares the incentive outcomes for the 2024 performance year to those for the 2025 performance year.
3.No prior year data as appointed as an Executive Director in 2025.
4.Since Rio Tinto plc, the statutory entity for which this disclosure is required, does not have any employees, we have included voluntary disclosure of the change in employee salary and
incentives for our Australian employees who make up more than 40% of our employee population. The disclosure does not include benefits as there have been no changes in the benefit
entitlements.
“–” in the table signifies no reported change as a result of the absence of comparable data.
Non-Executive Directors
Annual fees payable
The table below shows the annual fee structure as at 1 March 2025
and 1 March 2026 for the Chair and Non-Executive Directors. This
reflects an increase to the fees for Nominations & Governance
Committee members effective 1 January 2026 in recognition of the
increased scope of the Committee for governance.
2026 | 2025 | |
Director fees | ||
Chair’s fee | £800,000 | £800,000 |
Non-Executive Director base | £115,000 | £115,000 |
Senior Independent Director | £45,000 | £45,000 |
Committee fees | ||
Audit & Risk Committee Chair | £50,000 | £50,000 |
Audit & Risk Committee member | £30,000 | £30,000 |
People & Remuneration Committee Chair | £45,000 | £45,000 |
People & Remuneration Committee member | £25,000 | £25,000 |
Sustainability Committee Chair | £45,000 | £45,000 |
Sustainability Committee member | £25,000 | £25,000 |
Nominations & Governance Committee member | £17,500 | £8,000 |
Meeting allowances | ||
Long distance (flights over 10 hours per journey) | £10,000 | £10,000 |
Medium distance (flights of 5-10 hours per journey) | £5,000 | £5,000 |
Service contracts
The Chair and Non-Executive Directors’ letters of appointment from
the company stipulate their terms of appointment, including their
duties and responsibilities as Directors. Each Non-Executive
Director is appointed subject to their election and annual
re-election by shareholders.
The Chair’s appointment may be terminated by either party giving
12 months’ notice, and Non-Executive Directors’ appointments may
be terminated by either party giving 3 months’ notice.
Positions held and share ownership
Rio Tinto has a policy that encourages Non-Executive Directors to
build up a Rio Tinto shareholding. The shareholding target in 2025 is
1,800 Rio Tinto Limited shares or 2,200 Rio Tinto plc shares or
2,100 Rio Tinto ADRs (or a combination thereof), and will be
reviewed every 2 years. A higher target of 12,700 Rio Tinto Limited
shares applies to the Chair. Details of Non-Executive Directors’
shareholdings in the Group, are set out in table 2 on page 146.
We list in the table below the Non-Executive Directors who held
office during 2025 and their shareholdings as a percentage of their
2025 requirement. Each held office for the whole of 2025 unless
otherwise indicated. Their years of appointment are reported in
“Board of Directors” on pages 104-105.
Shareholding vs requirement | |||
Director | Title | 31 December 2025 | 31 December 2024 |
Dominic Barton | Chair | 100% | 94% |
Dean Dalla Valle | Non-Executive Director | 105% | 32% |
Simon Henry | Non-Executive Director | 100% | 100% |
Kaisa Hietala | Non-Executive Director | 45% | 45% |
Sam Laidlaw | Non-Executive Director | 341% | 341% |
Susan Lloyd-Hurwitz | Non-Executive Director | 137% | 79% |
Martina Merz | Non-Executive Director | 80% | –% |
Jennifer Nason | Non-Executive Director | 100% | 89% |
Joc O’Rourke | Non-Executive Director | 136% | –% |
Sharon Thorne | Non-Executive Director | 118% | 118% |
Ngaire Woods | Non-Executive Director | 100% | 67% |
Ben Wyatt | Non-Executive Director | 50% | 22% |
1.Sam Laidlaw and Kaisa Hietala stepped down from the Board at the conclusion of the
2025 AGM on 1 May 2025.
2.Simon Henry and Martina Merz stepped down from the Board on 23 October 2025.
Annual Report on Form 20-F 2025 | 144 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
We set out details of each element of remuneration, and the
single total figure of remuneration, paid to the Chair and Non-
Executive Directors during 2025 and 2024, in US dollars in table 1b
on page 146. No termination or share-based payments were made
in the year. Statutory minimum superannuation contributions for
Non-Executive Directors are deducted from the Director’s overall fee
entitlements when these are required by Australian superannuation
law.
The total fee and allowance payments made to the Chair and
Non-Executive Directors in 2025 were within the maximum
aggregate annual amount of £4 million set out in the Group’s
constitutional documents, approved by shareholders at the
2024 AGMs.
Other statutory disclosures
Other share plans
All-employee share plans
The Committee believes that all employees should be given the
opportunity to become shareholders in our business, and that share
plans help engage, retain and motivate employees over the long
term. Rio Tinto’s share plans are therefore part of its standard
remuneration practice to encourage employee share ownership and
create alignment with the shareholder experience. Executives may
participate in broad-based share plans that are available to
employees generally and to which performance conditions do not
apply.
A global employee share purchase plan is normally offered to all
eligible employees unless there are local jurisdictional restrictions.
Under the plan, employees may acquire shares up to the value of
$5,250 (or equivalent in other currencies) per year or capped at 15%
of their base salary, if lower. Each share purchased will be matched
by the company, providing the participant holds the shares, and is
still employed, at the end of the 3-year vesting period.
Approximately 37,000 of our employees (70% of those eligible) are
shareholders as a result of participating in these plans. In the UK,
these arrangements are partially delivered through the UK Share
Plan which is a UK tax-approved arrangement. Under this plan,
eligible participants may also receive an annual award of Free
Shares up to the limits prescribed under UK tax legislation.
Management Share Awards
Management Share Awards (MSA) are designed to help the Group
attract the best employees in a competitive labour market, and to
retain key individuals as we deliver our long-term strategy. MSA are
conditional share awards that are not subject to a performance
condition. They typically vest at the end of 3 years, subject to
continued employment. Shares to satisfy the awards are bought in
the market, issued or reissued from Treasury.
Shareholder voting
In the table below, we set out the results of the remuneration-related
resolutions voted on at the Group’s 2025 AGMs including the most
recent voting outcomes of the Remuneration Policy.
Resolution | Votes for | Votes against | Votes withheld1 |
Approval of the Directors’ Remuneration report: Implementation report | 98% | 2% | 26,622,923 |
Approval of the Remuneration Policy (2024) | 97% | 3% | 3,469,190 |
Approval of the Directors’ Remuneration report | 97% | 3% | 26,246,816 |
1.A vote “withheld” is not a vote in law and is not counted in the calculation of the
proportion of votes for and against the resolution.
Annual Report on Form 20-F 2025 | 145 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Table 1a – Executive KMP remuneration
The table below reports remuneration in line with Australian statutory requirements. See page 129 for a description of how disclosure in this
table differs from realised pay.
Stated in US$‘0001 | Short-term benefits | |||||
Base salary | Cash bonus2 | Other cash- based benefits3 | Non-monetary benefits4 | Total short-term benefits | ||
Executive Directors | ||||||
Simon Trott5 | 2025 | 1,205 | 929 | 1,088 | 142 | 3,364 |
2024 | 833 | 419 | 98 | 89 | 1,439 | |
Jakob Stausholm6 | 2025 | 1,175 | 1,463 | 156 | 138 | 2,932 |
2024 | 1,632 | 796 | 215 | 207 | 2,850 | |
Peter Cunningham | 2025 | 1,028 | 628 | 131 | 35 | 1,822 |
2024 | 966 | 471 | 122 | 49 | 1,608 | |
Other executives | ||||||
Matthew Holcz6 | 2025 | 298 | 186 | 37 | 36 | 557 |
Katie Jackson | 2025 | 831 | 505 | 101 | 58 | 1,495 |
2024 | 268 | 130 | 222 | 50 | 670 | |
Sinead Kaufman6 | 2025 | 512 | 640 | 57 | 29 | 1,238 |
2024 | 753 | 356 | 86 | 113 | 1,308 | |
Jérôme Pécresse | 2025 | 948 | 780 | 179 | 87 | 1,994 |
2024 | 876 | 516 | 167 | 63 | 1,622 | |
Stated in US$’0001 | Long-term benefits: Value of share-based awards7 | Post-employment benefits10 | ||||||||
BDA8 | PSA | MSA | Others9 | Pension and superannuation | Other post- employment benefits | Termination benefits | Total remuneration11 | Currency of actual payment | ||
Executive Directors | ||||||||||
Simon Trott5 | 2025 | 558 | 2,413 | – | – | 27 | – | – | 6,362 | A$ & £ |
2024 | 442 | 1,721 | – | – | 19 | – | – | 3,621 | A$ | |
Jakob Stausholm6 | 2025 | 547 | 4,122 | – | 8 | 9 | – | – | 7,618 | £ |
2024 | 843 | 3,281 | – | 8 | 13 | – | – | 6,995 | £ | |
Peter Cunningham | 2025 | 519 | 2,363 | – | 7 | 13 | – | – | 4,724 | £ |
2024 | 445 | 1,315 | 19 | 7 | 13 | – | – | 3,407 | £ | |
Other executives | ||||||||||
Matthew Holcz6 | 2025 | 42 | 248 | 122 | – | 5 | – | – | 974 | A$ |
Katie Jackson | 2025 | 150 | 734 | 532 | 1 | 16 | – | – | 2,928 | £ |
2024 | 31 | 69 | 333 | – | 7 | – | – | 1,110 | £ | |
Sinead Kaufman6 | 2025 | 181 | 1,400 | – | 2 | 15 | – | 2,836 | A$ | |
2024 | 364 | 1,378 | – | 3 | 19 | – | 3,072 | A$ | ||
Jérôme Pécresse | 2025 | 339 | 1,400 | – | 1 | 24 | – | – | 3,758 | C$ |
2024 | 151 | 480 | – | – | 24 | – | – | 2,277 | C$ | |
Notes to table 1a – Executives’ remuneration
1.“Table 1a – Executives KMP remuneration” is reported in US$ using A$1 = US$0.64492; £1 = US$1.31854; C$1 = US$0.71574 which are average rates for 2025, except for the cash
element of the STIP which use 31 December 2025 year-end rates of A$1 = US$0.67005; £1 = US$1.3474; C$1 = US$0.73086.
2.“Cash bonus” relates to the cash portion of the 2025 STIP award to be paid in March 2026.
3.“Other cash-based benefits” typically include cash in lieu of company pension or superannuation contributions. For Simon Trott this also includes benefits related to his relocation from
Australia to the UK following his appointment as Chief Executive, in line with the company’s international transfer policy.
4.“Non-monetary benefits” for executives typically include healthcare coverage, professional tax compliance services/advice, flexible perquisites and, where applicable, leave accruals and
mobility-related benefits. For Simon Trott this also includes benefits related to his relocation from Australia to the UK.
5.The figures for Simon Trott reflect his remuneration for the full financial year covering both roles served in the year of Chief Executive, Iron Ore and Group Chief Executive.
6.The figures for Jakob Stausholm reflect his remuneration up until he ceased to be a KMP on 24 August 2025. His total remuneration up until 31 December 2025 was $9.17 million. The
figures for Matthew Holcz reflect his remuneration from the date he commenced being a KMP on 27 August 2025. His total remuneration for the year ended 31 December 2025 was
$1.72 million. The figures for Sinead Kaufman reflect her remuneration up until she ceased to be a KMP on 26 August 2025. Her total remuneration up until 31 December 2025 was
$3.38 million.
7.The “Value of share-based awards” has been determined in accordance with the recognition and measurement requirements of IFRS 2 "Share-based Payment". The fair value of awards
granted as BDA, PSA and MSA have been calculated at their dates of grant using valuation models provided by external consultants, Lane Clark and Peacock LLP, including an
independent Monte Carlo valuation model, which take into account the constraints on vesting attached to these awards. Further details of the valuation methods and assumptions used
for these awards are included in note 28 (Share-based Payments) in the financial statements. The fair value of other share-based awards is measured at the purchase cost of the shares
from the market. The share-based values disclosed in this table do not reflect amounts actually paid in 2025 or the value of shares that will ultimately vest.
8.“BDA” represents the portion of the 2022–2025 STIP awards deferred into Rio Tinto shares.
9.“Others” includes the Global Employee Share Plan (myShare) and the UK Share Plan.
10.Any costs related to defined benefit pension plans and post-retirement medical benefits are the service costs attributable to the individual, calculated in accordance with IAS 19. The cost
for defined contribution pension plans is the amount contributed in the year by the company.
11.“Total remuneration” represents the disclosure of total emoluments and compensation required under the Australian Corporations Act 2001 and applicable accounting standards.
Further details in relation to aggregate remuneration for executives, including Directors, are included in note 30 (Directors’ and key
management remuneration).
Annual Report on Form 20-F 2025 | 146 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Table 1b – Non-Executive Directors’ remuneration
Stated in US$’0001 | Fees and allowances2 | Non-monetary benefits3 | Post- employment benefits4 | Single total figure of remuneration5 | Currency of actual payment | |
Chair | ||||||
Dominic Barton | 2025 | 1,055 | 44 | – | 1,099 | £ |
2024 | 1,008 | 94 | – | 1,102 | £ | |
Non-Executive Directors | ||||||
Dean Dalla Valle | 2025 | 315 | 51 | 19 | 385 | A$ |
2024 | 285 | 13 | 19 | 317 | A$ | |
Simon Henry6 | 2025 | 194 | 13 | – | 207 | £ |
2024 | 253 | 8 | – | 261 | £ | |
Kaisa Hietala7 | 2025 | 82 | 14 | – | 96 | £ |
2024 | 226 | 8 | – | 234 | £ | |
Sam Laidlaw8 | 2025 | 156 | 13 | – | 169 | £ |
2024 | 335 | 5 | – | 340 | £ | |
Susan Lloyd-Hurwitz | 2025 | 238 | 48 | 6 | 292 | A$ |
2024 | 225 | 8 | 5 | 238 | A$ | |
Martina Merz6 | 2025 | 169 | 21 | – | 190 | £ |
2024 | 164 | 8 | – | 172 | £ | |
Jennifer Nason | 2025 | 259 | 47 | – | 306 | £ |
2024 | 235 | 13 | – | 248 | £ | |
Joc O'Rourke | 2025 | 253 | 13 | – | 266 | £ |
2024 | 239 | 5 | – | 244 | £ | |
Sharon Thorne | 2025 | 306 | 5 | – | 311 | £ |
2024 | 105 | 7 | – | 112 | £ | |
Ngaire Woods | 2025 | 228 | 23 | – | 251 | £ |
2024 | 234 | 7 | – | 241 | £ | |
Ben Wyatt | 2025 | 339 | 66 | – | 405 | A$ |
2024 | 268 | 12 | – | 280 | A$ | |
1.Remuneration is reported in US$. The amounts have been
converted using the 2025 annual average exchange rates
of £1 = US$1.31854 and A$1 = US$0.64492.
2.“Fees and allowances” comprises the total fees for the
Chair and all Non-Executive Directors (NED), and travel
allowances for the NED.
3.“Non-monetary benefits” include, as in previous years,
amounts that are deemed by the UK tax authorities to be
benefits in kind relating largely to the costs of Directors’
expenses in attending Board meetings held at the
company’s UK-registered office (including associated
accommodation and subsistence expenses) and
professional tax compliance services/advice. Given these
expenses are incurred by Directors in the fulfilment of their
duties, the company pays the tax on them.
4.The statutory minimum superannuation contributions
required by the Australian superannuation law and paid for
the Australia-based NEDs are included in “Post-
employment benefits”.
5.Represents disclosure of the single total figure of
remuneration under Schedule 8 of the Large- and
Medium-sized Companies and Groups (Accounts and
Reports) Regulations 2008 (as amended) and total
remuneration under the Australian Corporations Act
2001 and applicable accounting standards.
6.The amounts reported for Simon Henry and Martina
Merz reflect the period of active Board membership from
1 January 2025 to 23 October 2025.
7.The amounts reported for Kaisa Hietala reflect
the period of active Board membership from
1 January 2025 to 1 May 2025.
8.The amounts reported for Sam Laidlaw reflect
the period of active Board membership from
1 January 2025 to 1 May 2025, as well as consulting fees
paid for the period from 2 May 2025 to 12 June 2025.
| For more information, further details in relation to aggregate remuneration for executives, including Directors, are included in note 30 (Directors’ and key management remuneration). |
Table 2 – Directors’ and executives’ beneficial interests in Rio Tinto shares
Rio Tinto plc1 | Rio Tinto Limited | Movements | ||||||||
1 Jan 20252 | 31 Dec 20253 | 5 Feb 20264 | 1 Jan 20252 | 31 Dec 20253 | 5 Feb 20264 | Compensation5 | Other6 | |||
Directors | ||||||||||
Dominic Barton | – | – | – | 11,900 | 12,700 | 12,700 | – | 800 | ||
Peter Cunningham | 74,480 | 79,211 | 79,217 | – | – | – | 8,089 | (3,352) | ||
Dean Dalla Valle | – | – | – | 579 | 1,885 | 1,885 | – | 1,306 | ||
Simon Henry7 | 2,200 | 2,200 | – | – | – | – | – | – | ||
Kaisa Hietala7 | 1,000 | 1,000 | – | – | – | – | – | – | ||
Sam Laidlaw7 | 7,500 | 7,500 | – | – | – | – | – | – | ||
Susan Lloyd-Hurwitz | – | – | – | 1,421 | 2,458 | 2,458 | – | 1,037 | ||
Martina Merz7 | – | 1,750 | – | – | – | – | – | 1,750 | ||
Jennifer Nason | 1,877 | 2,100 | 2,100 | – | – | – | – | 223 | ||
Joc O'Rourke | – | 3,000 | 3,000 | – | – | – | – | 3,000 | ||
Jakob Stausholm7 | 181,391 | 195,924 | – | – | – | – | 13,508 | 1,025 | ||
Sharon Thorne | 2,593 | 2,593 | 2,593 | – | – | – | – | – | ||
Simon Trott | 441 | 7,671 | 7,671 | 29,499 | 32,351 | 32,351 | 14,679 | (4,597) | ||
Ngaire Woods | 1,482 | 2,199 | 2,199 | – | – | – | – | 717 | ||
Ben Wyatt | – | – | – | 400 | 900 | 900 | – | 500 | ||
Executives | ||||||||||
Katie Jackson | 1,044 | 9,136 | 9,156 | – | – | – | 14,978 | (6,866) | ||
Sinead Kaufman7 | – | – | – | 36,564 | 37,436 | 37,436 | 1,480 | (608) | ||
Jérôme Pécresse | 5,043 | 5,109 | 5,121 | – | – | – | – | 78 | ||
Matthew Holcz7 | 642 | 656 | 656 | 6,807 | 6,930 | 6,930 | – | 137 | ||
1.Rio Tinto plc ordinary shares or American Depositary Receipts.
2.Or date of appointment, if later.
3.Or date of retirement/date stepped down from the Board or Executive Committee, if earlier.
4.Latest practicable date prior to the publication of the 2025 Annual Report, in accordance with LR 9.8.6A.
5.Shares obtained through awards under the Rio Tinto UK Share Plan, the Global Employee Share Plan and/or vesting of the PSA, MSA and BDA granted under the Group’s LTIP arrangements.
6.Share movements due to the sale or purchase of shares, or shares received under dividend reinvestment plans.
7.Simon Henry and Martina Merz retired as Non-Executive Directors on 23 October 2025. Kaisa Hietala and Sam Laidlaw retired as Non-Executive Directors on 1 May 2025. Jakob
Stausholm stepped down from the Executive Committee on 24 August 2025. Matthew Holcz was appointed to the Executive Committee from 27 August 2025. Sinead Kaufman stepped
down from the Executive Committee on 26 August 2025.
Interests in outstanding BDA, MSA and PSA, the UK Share Plan and the Global Employee Share Plan are set out in table 3 and 3a on pages
147-149.
Annual Report on Form 20-F 2025 | 147 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Table 3 – Plan interests (awards of shares under long-term incentive plans)
Name | Award/grant date | Market price at award1,2 | 1 January 2025 | Awarded | Lapsed/ cancelled | Dividend units | Vested | 31 December 2025 | 5 February 2026 | Performance period concludes/ vesting date | Date of release | Market price on release | Monetary value of award at release US$3 |
Peter Cunningham | |||||||||||||
Bonus Deferral Award | 22 Mar 2023 | £53.19 | 5,827 | – | – | 820 | (6,647) | – | – | 1 Dec 2025 | 1 Dec 2025 | £54.64 | 478,886 |
20 Mar 2024 | £49.41 | 8,415 | – | – | – | – | 8,415 | 8,415 | 1 Dec 2026 | – | – | – | |
19 Mar 2025 | £49.07 | – | 7,907 | – | – | – | 7,907 | 7,907 | 1 Dec 2027 | – | – | – | |
Performance Share Award | 16 Mar 2020 | £33.58 | 7,426 | – | (6,480) | 382 | (1,328) | – | – | 31 Dec 2024 | 20 Feb 2025 | £50.76 | 88,882 |
18 Mar 2021 | £55.58 | 9,564 | – | – | – | – | 9,564 | 9,564 | 31 Dec 2025 | – | – | – | |
23 Mar 2022 | £58.00 | 50,405 | – | – | – | – | 50,405 | 50,405 | 31 Dec 2026 | – | – | – | |
22 Mar 2023 | £53.19 | 55,134 | – | – | – | – | 55,134 | 55,134 | 31 Dec 2027 | – | – | – | |
9 May 2024 | £55.84 | 71,195 | – | – | – | – | 71,195 | 71,195 | 31 Dec 2026 | – | – | – | |
19 Mar 2025 | £49.07 | – | 76,299 | – | – | – | 76,299 | 76,299 | 31 Dec 2027 | – | – | – | |
Matthew Holcz4 | |||||||||||||
Management Share Award | 22 Mar 2023 | A$115.45 | 3,772 | – | – | – | – | 3,772 | 3,772 | 20 Feb 2026 | – | – | – |
19 Mar 2025 | A$118.70 | – | 2,131 | – | – | – | 2,131 | 2,131 | 1 Mar 2026 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 2,131 | – | – | – | 2,131 | 2,131 | 1 Mar 2027 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 2,131 | – | – | – | 2,131 | 2,131 | 1 Mar 2028 | – | – | – | |
Performance Share Award | 18 Mar 2021 | A$110.80 | 4,991 | – | – | – | – | 4,991 | 4,991 | 31 Dec 2025 | – | – | – |
23 Mar 2022 | A$113.68 | 5,457 | – | – | – | – | 5,457 | 5,457 | 31 Dec 2026 | – | – | – | |
22 Mar 2023 | A$115.45 | 7,544 | – | – | – | – | 7,544 | 7,544 | 31 Dec 2027 | – | – | – | |
9 May 2024 | A$130.23 | 20,787 | – | – | – | – | 20,787 | 20,787 | 31 Dec 2026 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 23,442 | – | – | – | 23,442 | 23,442 | 31 Dec 2027 | – | – | – | |
Katie Jackson | |||||||||||||
Bonus Deferral Award | 19 Mar 2025 | £49.07 | – | 2,182 | – | – | – | 2,182 | 2,182 | 1 Dec 2027 | – | – | – |
Management Share Award | 5 Sept 2024 | £45.91 | 3,547 | – | – | – | (3,547) | – | – | 1 Mar 2025 | 3 Mar 2025 | £48.70 | 227,765 |
5 Sept 2024 | £45.91 | 10,954 | – | – | 418 | (11,372) | – | – | 1 Sept 2025 | 1 Sept 2025 | £45.78 | 686,449 | |
Performance Share Award | 5 Sept 2024 | £45.91 | 18,883 | – | – | – | – | 18,883 | 18,883 | 31 Dec 2026 | – | – | – |
19 Mar 2025 | £49.07 | – | 61,343 | – | – | – | 61,343 | 61,343 | 31 Dec 2027 | – | – | – | |
Sinead Kaufman5 | |||||||||||||
Bonus Deferral Award | 22 Mar 2023 | A$115.45 | 4,278 | – | – | 488 | (4,766) | – | – | 1 Dec 2025 | 1 Dec 2025 | A$132.87 | 408,401 |
20 Mar 2024 | A$121.30 | 5,060 | – | – | – | – | 5,060 | 5,060 | 1 Dec 2026 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 4,879 | – | – | – | 4,879 | 4,879 | 1 Dec 2027 | – | – | – | |
Performance Share Award | 16 Mar 2020 | A$77.65 | 8,579 | – | (7,486) | 341 | (1,434) | – | – | 31 Dec 2024 | 20 Feb 2025 | A$119.66 | 110,663 |
18 Mar 2021 | A$110.80 | 41,207 | – | – | – | – | 41,207 | 41,207 | 31 Dec 2025 | – | – | – | |
23 Mar 2022 | A$113.68 | 36,042 | – | – | – | – | 36,042 | 36,042 | 31 Dec 2026 | – | – | – | |
22 Mar 2023 | A$115.45 | 40,045 | – | – | – | – | 40,045 | 40,045 | 31 Dec 2027 | – | – | – | |
9 May 2024 | A$130.23 | 49,145 | – | – | – | – | 49,145 | 49,145 | 31 Dec 2026 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 50,599 | – | – | – | 50,599 | 50,599 | 31 Dec 2027 | – | – | – | |
Annual Report on Form 20-F 2025 | 148 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Name | Award/grant date | Market price at award1,2 | 1 January 2025 | Awarded | Lapsed/ cancelled | Dividend units | Vested | 31 December 2025 | 5 February 2026 | Performance period concludes/ vesting date | Date of release | Market price on release | Monetary value of award at release US$3 |
Jérôme Pécresse | |||||||||||||
Bonus Deferral Award | 20 Mar 2024 | £49.41 | 1,533 | – | – | – | – | 1,533 | 1,533 | 1 Dec 2026 | – | – | – |
19 Mar 2025 | £49.07 | – | 8,384 | – | – | – | 8,384 | 8,384 | 1 Dec 2027 | – | – | – | |
Performance Share Award | 9 May 2024 | £55.84 | 66,928 | – | – | – | – | 66,928 | 66,928 | 31 Dec 2026 | – | – | – |
19 Mar 2025 | £49.07 | – | 71,780 | – | – | – | 71,780 | 71,780 | 31 Dec 2027 | – | – | – | |
Jakob Stausholm | |||||||||||||
Bonus Deferral Award | 22 Mar 2023 | £53.19 | 10,488 | – | – | 1,476 | (11,964) | – | – | 1 Dec 2025 | 1 Dec 2025 | £54.71 | 863,056 |
20 Mar 2024 | £49.41 | 14,211 | – | – | – | – | 14,211 | 14,211 | 1 Dec 2026 | – | – | – | |
19 Mar 2025 | £49.07 | – | 13,354 | – | – | – | 13,354 | 13,354 | 1 Dec 2027 | – | – | – | |
Performance Share Award | 16 Mar 2020 | £33.58 | 74,711 | – | (65,186) | 3,854 | (13,379) | – | – | 31 Dec 2024 | 20 Feb 2025 | £50.76 | 895,450 |
18 Mar 2021 | £55.58 | 103,510 | – | – | – | – | 103,510 | 103,510 | 31 Dec 2025 | – | – | – | |
23 Mar 2022 | £58.00 | 85,126 | – | – | – | – | 85,126 | 85,126 | 31 Dec 2026 | – | – | – | |
22 Mar 2023 | £53.19 | 93,114 | – | – | – | – | 93,114 | 93,114 | 31 Dec 2027 | – | – | – | |
9 May 2024 | £55.84 | 120,232 | – | – | – | – | 120,232 | 120,232 | 31 Dec 2026 | – | – | – | |
19 Mar 2025 | £49.07 | – | 137,361 | – | – | – | 137,361 | 137,361 | 31 Dec 2027 | – | – | – | |
Simon Trott | |||||||||||||
Bonus Deferral Award | 22 Mar 2023 | A$115.45 | 4,683 | – | – | 534 | (5,217) | – | – | 1 Dec 2025 | 1 Dec 2025 | A$132.87 | 447,047 |
20 Mar 2024 | A$121.30 | 7,027 | – | – | – | – | 7,027 | 7,027 | 1 Dec 2026 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 5,741 | – | – | – | 5,741 | 5,741 | 1 Dec 2027 | – | – | – | |
Performance Share Award | 16 Mar 2020 | £33.58 | 52,838 | – | (46,102) | 2,726 | (9,462) | – | – | 31 Dec 2024 | 20 Feb 2025 | £50.76 | 633,287 |
18 Mar 2021 | £55.58 | 49,571 | – | – | – | – | 49,571 | 49,571 | 31 Dec 2025 | – | – | – | |
23 Mar 2022 | £113.68 | 38,204 | – | – | – | – | 38,204 | 38,204 | 31 Dec 2026 | – | – | – | |
22 Mar 2023 | A$115.45 | 44,488 | – | – | – | – | 44,488 | 44,488 | 31 Dec 2027 | – | – | – | |
9 May 2024 | A$130.23 | 52,091 | – | – | – | – | 52,091 | 52,091 | 31 Dec 2026 | – | – | – | |
19 Mar 2025 | A$118.70 | – | 57,851 | – | – | – | 57,851 | 57,851 | 31 Dec 2027 | – | – | – | |
1.Awards denominated in pounds sterling were for Rio Tinto plc ordinary shares of 10 pence each and awards denominated in Australian dollars were for Rio Tinto Limited shares.
All awards are granted over ordinary shares.
2.The weighted fair value per share of Bonus Deferral Awards and Management Share Awards granted in March 2025 was £49.07 for Rio Tinto plc and A$119.53 for Rio Tinto Limited. For
Performance Share Awards granted in March 2025, the values were £30.45 for Rio Tinto plc and A$74.02 for Rio Tinto Limited. Conditional awards are awarded at no cost to the
recipient and no amount remains unpaid on any shares awarded.
3.The amount in US dollars has been converted at the rate of US$1.32 = £1 and US$0.64 = A$1, being the average exchange rates for 2025.
4.Matthew Holcz was appointed as KMP on 27 August 2025.
5.Sinead Kaufman and Jakob Stausholm stepped down from the Executive Committee on 26 August 2025 and 24 August 2025 respectively.
6.For the Performance Share Awards granted on 18 March 2021 with a performance period that concluded on 31 December 2025, 0% of the award vested.
7.The closing price at 31 December 2025 was £59.94 for Rio Tinto plc ordinary shares and was A$146.82 for Rio Tinto Limited ordinary shares. The high and low prices during 2025 of Rio
Tinto plc and Rio Tinto Limited shares were £60.47 and £40.25 and A$148.80 and A$100.75 respectively.
8.As of 5 February 2026, the above members of the Executive Committee held 1,631,196 shares awarded and not vested under long-term incentive plans. No Executive Committee
member held any options.
Annual Report on Form 20-F 2025 | 149 | riotinto.com |
Directors’ report | Remuneration report | Implementation report
Table 3a – Plan interests (award of shares under all-employee share arrangements)
myShare | UK Share Plan | Total activity in 2025 | ||||||||
Plan interests at 1 January 20251 | Value of Matching shares awarded in year2 ('000) | Value of Matching shares vested in year3 ('000) | Value of Matching shares awarded in year2 ('000) | Value of Matching shares vested in year3 ('000) | Value of Free shares awarded in year4 ('000) | Value of Free shares vested in year4 ('000) | Grants in year ('000) | Vesting in year ('000) | Plan interests at 31 December 20251 | |
Peter Cunningham | 284 | 2 | 1 | 0 | 0 | 5 | 4 | 7 | 5 | 303 |
Katie Jackson | 0 | 2 | 0 | 2 | 0 | 2 | 0 | 6 | 0 | 81 |
Sinead Kaufman | 147 | 4 | 3 | 0 | 0 | 0 | 0 | 4 | 3 | 143 |
Jérôme Pécresse | 42 | 4 | 0 | 0 | 0 | 0 | 0 | 4 | 0 | 104 |
Jakob Stausholm | 370 | 2 | 1 | 2 | 1 | 5 | 4 | 9 | 6 | 391 |
1.All shares shown are Rio Tinto plc shares except in the case of Sinead Kaufman which are Rio Tinto Limited shares.
2.myShare and UK Share Plan Matching share awards are granted on a quarterly basis (January, April, July and October) throughout the year.
3.The vesting of a Matching share is dependent on continued employment with Rio Tinto and the retention of the associated Investment share purchased by the participant for
3 years.
4.UK Share Plan Free shares vest after 3 years.
5.UK Share Plan awards shown above and the vested Matching shares under myShare are included, where relevant, in the executive’s share interests in table 2.
6.All currency figures are shown in USD and rounded.
7.Both Matthew Holcz and Simon Trott hold no unvested awards across myShare and/or UK Share Plan and also have not received or had awards vest during 2025.
Directors’ approval statement
This Directors’ Remuneration report is delivered in accordance
with a resolution of the Board, and has been signed on behalf of
the Board by:
Ben Wyatt
People & Remuneration Committee Chair
19 February 2026
Annual Report on Form 20-F 2025 | 150 | riotinto.com |
Directors’ report
Additional statutory disclosure
The Directors present their report and audited consolidated financial statements for the year ended 31
December 2025.
Scope of this report
For the purposes of UK company law and the Australian
Corporations Act 2001:
•The additional disclosures under the heading “Shareholder
information” on pages 336-341 are hereby incorporated by
reference to, and form part of, this Directors’ report.
•The Strategic report on pages 1-101 provides a comprehensive
review of Rio Tinto’s operations, its financial position and its
business strategies and prospects, and is incorporated by
reference into, and forms part of, this Directors’ report.
•Certain items that would ordinarily need to be included in this
Directors’ report (including an indication of likely future
developments in the business of the company and the Group)
have, as permitted, instead been discussed in the Strategic
report, while details of the Group’s policy on addressing financial
risks and details about financial instruments are shown in note 25
to the consolidated financial statements.
•Taken together, the Strategic report and this Directors’ report are
intended to provide a fair, balanced and understandable
assessment of the development and performance of the Group’s
business during the year and its position at the end of the year, its
strategy, likely developments, and any principal or emerging risks
and uncertainties associated with the Group’s business.
For the purposes of compliance with DTR 4.1.5R(2) and DTR
4.1.8R, the required content of the “Management report” can be
found in the Strategic report or this Directors’ report, including the
material incorporated by reference.
A full report on Director and executive remuneration and
shareholdings can be found in the Remuneration report on pages
122-149, which, for the purposes of the Australian Corporations Act
2001, forms part of this Directors’ report.
Dual-listed structure and constitutional documents
The dual-listed companies (DLC) structure of Rio Tinto plc and
Rio Tinto Limited, and their constitutional provisions and voting
arrangements – including restrictions that may apply to the shares of
either company under specified circumstances – are described on
pages 336-337.
Operating and financial review
Rio Tinto’s principal activities during 2025 were mining minerals and
metals throughout the lifecycle from exploration, development,
mining and processing, to marketing, and repurposing and renewing
our assets to create a positive legacy.
Subsidiaries with material non-controlling interests, joint operations
and associated undertakings, principally affecting the profits or net
assets of the Group in the year, are listed in notes 31-33 to the
financial statements. For a full listing of related undertakings, refer to
the Consolidated Entity Disclosure Statement on page 230.
The following significant changes and events affected the Group
during 2025 and up to the date of this report:
•In February 2025, we announced that Sam Laidlaw would step down
as a Non-Executive Director at the conclusion of the Rio Tinto
Limited annual general meeting on 1 May 2025.
•In February 2025, we announced that Kaisa Hietala would step
down as a Non-Executive Director at the conclusion of the
Rio Tinto Limited annual general meeting on 1 May 2025.
•In February 2025, we announced that Simon Henry would step down
as a Non-Executive Director in the second half of 2025.
•In March 2025, we announced investment of approximately
$1.8 billion to develop the Brockman Syncline 1 mine project
extending the life of the Brockman region in the West Pilbara of
Western Australia and sustaining production from the company’s
world class iron ore operation.
•In March 2025, we announced that we had completed the
acquisition of Arcadium Lithium plc for total consideration
of $6.7 billion, following the sanctioning of the Scheme of
Arrangement by the Royal Court of Jersey. The acquisition added a
portfolio of lithium assets located primarily in Argentina and
Australia, increasing the Group’s exposure to battery materials.
•In March 2025, we announced that we priced US$9.0 billion of fixed
and floating rate SEC-registered debt securities. The bonds would
be issued by Rio Tinto Finance (USA) plc and would be fully and
unconditionally guaranteed by Rio Tinto plc and Rio Tinto Limited.
•In May 2025, we announced that we had entered into an
agreement with Codelco to progress lithium development in Chile.
The partnership relates to the Salar de Maricunga, one of Chile’s
highest-grade lithium resources, and establishes a framework for
the joint development of lithium assets.
•In May 2025, we announced that Jakob Stausholm would step
down as Chief Executive following a transition period.
•In June 2025, we announced that Rio Tinto and Hancock
Prospecting would invest $1.6 billion (Rio Tinto share $0.8 billion)
to develop the Hope Downs 2 iron ore project in Western
Australia's Pilbara region.
•In July 2025, we announced the appointment of Simon Trott to
succeed Jakob Stausholm as Chief Executive, with effect from 25
August 2025.
•In August 2025, we announced a new operating model and
executive leadership team to simplify and streamline the
organisation. The product group structure was reorganised into three
core businesses — Iron Ore, led by Matthew Holcz; Aluminium &
Lithium, led by Jérôme Pécresse; and Copper, led by Katie Jackson
— with the Borates and Iron & Titanium businesses moved to the
Chief Commercial Officer’s portfolio. It was announced that Kellie
Parker would step down as Chief Executive, Australia after
transitional arrangements and Sinead Kaufman would step down as
Chief Executive, Minerals at the end of October 2025.
•In October 2025, we announced that Rio Tinto, Mitsui and Nippon
Steel will invest $733 million (Rio Tinto share $389 million) to
develop the West Angelas Sustaining Project, part of the Robe
River Joint Venture in Western Australia's Pilbara region.
•In October 2025, we announced that Martina Merz would step down
as a Non-Executive Director, effective 23 October 2025.
•In December 2025, we released our strategy to deliver industry
leading returns at our Capital Markets Day.
•In December 2025, we hosted an investor site visit to Argentina to
highlight its world-class integrated lithium business and growth
pipeline.
•In January 2026, we announced that we had been engaging in
preliminary discussions with Glencore plc about a possible
combination with some, or all, of their business.
•In February 2026, we announced that we were no longer
considering a possible merger, or other business combination,
with Glencore plc, as Rio Tinto had determined that it could not
reach an agreement that would deliver value to its shareholders.
| For more information visit riotinto.com/invest |
In 2025 and 2024, the Group did not receive any public takeover
offers from third parties in respect of Rio Tinto plc shares or
Rio Tinto Limited shares.
Details of events that took place after the balance sheet date are
further described in note 39 to the financial statements.
Risk identification, assessment and management
The Group’s material risks and uncertainties are listed on pages
91-99. The Group’s approach to risk management is discussed on
pages 89-90.
Annual Report on Form 20-F 2025 | 151 | riotinto.com |
Directors’ report | Additional statutory disclosure
Financial instruments
Details of the Group’s financial risk management objectives and
policies, and exposure to risk, are described in note 25 to the
financial statements.
Share capital
Details of the Group’s share capital as at 31 December 2025 are
described in note 35 to the financial statements. Details of the rights
and obligations attached to each class of shares are covered on
page 336, under the heading “Voting arrangements”.
Details of certain restrictions on holding shares in Rio Tinto and
certain consequences triggered by a change of control are
described on page 337 under the heading “Limitations on ownership
of shares and merger obligations”. There are no other restrictions on
the transfer of ordinary Rio Tinto shares, save for:
•Restrictions that may from time to time be imposed by laws,
regulations or Rio Tinto policy (for example, relating to
market abuse, insider dealing, share trading or an Australian
foreign investment).
•Restrictions on the transfer of shares that may be imposed following a
failure to supply information required to be disclosed, or where
registration of the transfer may breach a court order or a law, or in
relation to unmarketable parcels of shares.
•Restrictions on the transfer of certain shares awarded under
an employee share plan in accordance with the terms of
those awards.
At the AGMs held in 2025, shareholders authorised:
•The on-market purchase by Rio Tinto plc or Rio Tinto Limited
or its subsidiaries of up to 125,141,768 Rio Tinto plc shares
(representing approximately 10% of Rio Tinto plc’s issued
share capital, excluding Rio Tinto plc shares held in Treasury
at that time).
•The off-market purchase by Rio Tinto plc of up to 125,141,768
Rio Tinto plc shares acquired by Rio Tinto Limited or its subsidiaries
under the above authority.
•The on-market buy-back by Rio Tinto Limited of up to 55.6 million
Rio Tinto Limited shares (representing approximately 15% of
Rio Tinto Limited’s issued share capital at that time).
Substantial shareholders
Details of substantial shareholders are included on page 337.
Dividends
Details of dividends paid and declared for payment, together with
the company’s shareholder returns policy, can be found on page 20.
Waived dividends
The number of shares on which Rio Tinto plc dividends are based
excludes those held as treasury shares and those held by employee
share trusts that waived the right to dividends. Employee share
trusts waived dividends on 721,783 Rio Tinto plc ordinary shares
and 21,968 American Depositary Receipts (ADRs) for the 2024 final
dividend, and on 625,738 Rio Tinto plc ordinary shares and 29,954
ADRs for the 2025 interim dividend. (2024: on 81,491 Rio Tinto plc
ordinary shares and 35,066 ADRs for the 2023 final dividend, and
on 151,144 Rio Tinto plc ordinary shares and 30,888 ADRs for the
2023 interim dividend; 2023: on 99,016 Rio Tinto plc ordinary shares
and 35,132 ADRs for the 2022 final dividend, and on 110,774 Rio
Tinto plc ordinary shares and 31,831 ADRs for the 2023 interim
dividend). In 2025, 2024 and 2023, no Rio Tinto Limited shares were
held by Rio Tinto plc.
The number of shares on which Rio Tinto Limited dividends are
based excludes those held by shareholders who have waived the
rights to dividends. Employee share trusts waived dividends on
35,382 Rio Tinto Limited ordinary shares for the 2024 final dividend
and on 34,426 shares for the 2025 interim dividend (2024: on
32,540 shares for the 2023 final dividend and on 35,713 shares for
the 2024 interim dividend; 2023: on 35,010 shares for the 2022 final
dividend and on 34,607 shares for the 2023 interim dividend).
Our disclosure on Board and executive management diversity in line with UK Listing Rules (UKLR 22.2.30R(2)) is set out below.
Gender reporting categories as at 31 December 2025
Gender | Number of Board members | % of Board | Number of senior positions on the board (eg CEO/CFO, SID & Chair) | Number in executive management | % of executive management |
Men | 6 | 60% | 4 | 4 | 57% |
Women | 4 | 40% | 1 | 3 | 43%¹ |
Not specified/prefer not to say | – | – | – | – | – |
1.Sinead Kaufman stepped down as Chief Executive Officer, Minerals at the end of October 2025. Kellie Parker will leave Rio Tinto at the conclusion of her role – Chief Executive Officer,
Australia. She has remained during a transition period to ensure transfer of her responsibilities.
Ethnicity reporting categories as at 31 December 2025
ONS ethnicity category | Number of Board members | % of Board | Number of senior positions on the board (eg CEO/CFO, SID & Chair) | Number in executive management | % of executive management |
White British or other White (including minority-white groups) | 9 | 90% | 4 | 2 | 22% |
Mixed/Multiple Ethnic Groups | – | – | – | 1 | 11% |
Asian/Asian British | – | – | – | 1 | 11% |
Black/African/Caribbean/Black British | – | – | – | – | – |
Other Ethnic Group | 1 | 10% | – | – | |
Not specified/prefer not to say | – | – | – | 5 | 56% |
For the Executive Committee, gender data was collected via self disclosure in the HR system; data on ethnicity reporting categories was collected via a voluntary self identification survey
and self disclosure in the HR system. For the Board, gender and ethnicity reporting categories were collected via a voluntary self identification survey.
Annual Report on Form 20-F 2025 | 152 | riotinto.com |
Directors’ report | Additional statutory disclosure
Purchases: Rio Tinto plc shares
Shares of 10p each and Rio Tinto plc American Depositary Receipts (ADRs)
Total number of shares purchased1 | Average price per share $2 | Total number of shares purchased to satisfy company dividend reinvestment plans | Total number of shares purchased to satisfy employee share plans | Total number of shares purchased as part of publicly announced plans or programs3 | Maximum number of shares that may be purchased under plans or programs | |
2025 | ||||||
1 to 31 Jan | – | – | – | – | – | 125,141,7685 |
1 to 28 Feb | – | – | – | – | – | 125,141,7685 |
1 to 31 Mar | 374,568 | 63.51 | – | 374,568 | – | 125,141,7685 |
1 to 30 Apr | 2,148,041 | 60.15 | 2,092,446 | 55,595 | – | 125,305,1686 |
1 to 31 May | – | – | – | – | – | 125,305,1686 |
1 to 30 Jun | – | – | – | – | – | 125,305,1686 |
1 to 31 Jul | – | – | – | – | – | 125,305,1686 |
1 to 31 Aug | – | – | – | – | – | 125,305,1686 |
1 to 30 Sep | 37,780 | 63.33 | – | 37,780 | – | 125,305,1686 |
1 to 31 Oct | 1,339,413 | 65.45 | 1,339,413 | – | – | 125,305,1686 |
1 to 30 Nov | – | – | – | – | – | 125,305,1686 |
1 to 31 Dec | – | – | – | – | – | 125,305,1686 |
Total | 3,899,8024 | 62.33 | 3,431,859 | 467,943 | – | – |
2026 | ||||||
1 to 31 Jan | – | – | – | – | – | 125,305,1686 |
1 to 05 Feb | – | – | – | – | – | 125,305,1686 |
Purchases: Rio Tinto Limited shares
Total number of shares purchased1 | Average price per share $2 | Total number of shares purchased to satisfy company dividend reinvestment plans | Total number of shares purchased to satisfy employee share plans7 | Total number of shares purchased as part of publicly announced plans or programs3 | Maximum number of shares that may be purchased under plans or programs | |
2025 | ||||||
1 to 31 Jan | – | – | – | – | – | 55,600,0008 |
1 to 28 Feb | – | – | – | – | – | 55,600,0008 |
1 to 31 Mar | – | – | – | – | – | 55,600,0008 |
1 to 30 Apr | 983,139 | 70.78 | 733,086 | 250,053 | – | 55,600,0008 |
1 to 31 May | – | – | – | – | – | 55,600,0009 |
1 to 30 Jun | – | – | – | – | – | 55,600,0009 |
1 to 31 Jul | – | – | – | – | – | 55,600,0009 |
1 to 31 Aug | – | – | – | – | – | 55,600,0009 |
1 to 30 Sep | 542,101 | 78.97 | 363,166 | 178,935 | – | 55,600,0009 |
1 to 31 Oct | – | – | – | – | – | 55,600,0009 |
1 to 30 Nov | – | – | – | – | – | 55,600,0009 |
1 to 31 Dec | – | – | – | – | – | 55,600,0009 |
Total | 1,525,240 | 73.69 | 1,096,252 | 428,988 | – | – |
2026 | ||||||
1 to 31 Jan | – | – | – | – | – | 55,600,0009 |
1 to 05 Feb | – | – | – | – | – | 55,600,0009 |
1.Monthly totals of purchases are based on the settlement date.
2.The shares were purchased in the currency of the stock exchange on which the purchases took place and the sale price has been converted into US dollars at the exchange rate on the
date of settlement.
3.Shares purchased in connection with the dividend reinvestment plans and employee share plans are not deemed to form any part of any publicly announced plan or program.
4.This figure represents 0.31% of Rio Tinto plc issued share capital at 31 December 2025.
5.At the Rio Tinto plc AGM held in 2024, shareholders authorised the on-market purchase by Rio Tinto plc, and Rio Tinto Limited and its subsidiaries of up to 125,141,768 Rio Tinto plc
shares. This authorisation expired at the end of the Rio Tinto plc 2025 AGM.
6.At the Rio Tinto plc AGM held in 2025, shareholders authorised the on-market purchase by Rio Tinto plc, and Rio Tinto Limited and its subsidiaries of up to 125,305,168 Rio Tinto plc
shares. This authorisation will expire at the end of the Rio Tinto plc 2026 AGM or, if earlier, at the close of business on 30 June 2026.
7.The average price of shares purchased on-market by the trustee of Rio Tinto Limited’s employee share trust during 2025 was $72.00
8.At the Rio Tinto Limited AGM held in 2024, shareholders authorised the on-market buy-back of up to 55.6 million Rio Tinto Limited shares.
9.At the Rio Tinto Limited AGM held in 2025, shareholders authorised the on-market buy-back of up to 55.6 million Rio Tinto Limited shares.
Annual Report on Form 20-F 2025 | 153 | riotinto.com |
Directors’ report | Additional statutory disclosure
AGM Disclosures
At Rio Tinto plc’s AGM on 3 April 2025, Resolution 22 (“Authority to
purchase Rio Tinto plc shares”) was passed with less than 80% of
votes in favour, and Shining Prospect (a subsidiary of the Aluminium
Corporation of China (Chinalco)) voted against. Chinalco has not
sold any Rio Tinto plc shares and now has a holding of over 14%,
given its non-participation in Rio Tinto’s significant share buy-back
programs. This places Chinalco close to the 14.99% holding
threshold agreed with the Australian Government at the time of
Chinalco’s original investment in 2008.
Directors and executives
The names of Directors and their periods of appointment are listed on
pages 104-105, together with details of each Director’s qualifications,
experience and responsibilities, and current directorships.
There are no family relationships between any of our Directors or
executives. None of our Directors or Executive Committee members are
elected or appointed under any arrangement or understanding with any
major shareholder, customer, supplier or otherwise.
A table of Directors’ attendance at Board and committee meetings
during 2025 is on page 112.
Directors’ experience and independence
The Chair was considered independent upon his appointment and,
in the Board’s view, he continues to satisfy the tests for
independence under the ASX Principles and NYSE Standards.
The Board is satisfied that all of its Non-Executive Directors are
independent in character and judgement, and are free from any
relationships (material or otherwise) or circumstances that could
create a conflict of interest.
On joining Rio Tinto, all Directors receive a full, formal induction
program. It is delivered over a number of months, and tailored to
their specific requirements, taking into account their respective
committee responsibilities.
All Directors are expected to commit to continuing their development
during their tenure. This is supported through a combination of site
visits, teach-ins, deep dives, and internal business and operational
briefings provided in or around scheduled Board and committee
meetings.
The notice of AGM provides all material information in Rio Tinto’s
possession relevant to decisions on election and re-election of
Directors, including a statement from the Board that it considers all
Directors continue to perform effectively and demonstrate
appropriate levels of commitment. It also provides reasons why
each Director is recommended for re-election, highlighting their
relevant skills and experience. Further information on the skills and
experience of each Director is set out on pages 104-105.
Previous listed directorships
Details of each Director’s previous directorships of other listed
companies (where relevant) held in the past 3 years are set out below:
Martina Merz: thyssenkrupp AG (February 2019 - June 2023);
Siemens AG (February 2023 - February 2024)
Ben Wyatt: APM Human Services International Limited (September
2022 - October 2024)
Directors’ and executives’ beneficial interests
A table of Directors’ and executives’ beneficial interests in Rio Tinto
shares is on page 146.
Directors’ service contracts
The company has written agreements setting out the terms of
appointment for each Director and senior executive. Non-Executive
Directors are appointed by letters of appointment. Executive Directors
and other senior executives are employed through employment service
contracts. Further information is set out on pages 140, 142 and 143 in
the Remuneration report.
Secretaries
The Group Company Secretary is accountable to the Board and
advises the Chair, and through the Chair the Board, on all
governance matters. The appointment and removal of the Group
Company Secretary is a matter reserved for the Board. Andy
Hodges is Group Company Secretary and Company Secretary of
Rio Tinto plc. Tim Paine is the Company Secretary of Rio Tinto
Limited. Andy and Tim’s qualifications and experience are described
on page 105.
Indemnities and insurance
The Articles of Association of Rio Tinto plc and the Constitution of
Rio Tinto Limited provide for them to indemnify, to the extent
permitted by law, Directors and officers of the companies, including
officers of certain subsidiaries, against liabilities arising from the
conduct of the Group’s business. The Directors, Group Company
Secretary and Company Secretary of Rio Tinto Limited, together
with employees serving as Directors of eligible subsidiaries at the
Group’s request, have also received similar direct indemnities.
Former Directors also received indemnities for the period in which
they were Directors. These are qualifying third-party indemnity
provisions for the purposes of the UK Companies Act 2006, in force
during the financial year ended 31 December 2025 and up to the
date of this report. During 2025, Rio Tinto paid legal costs under the
terms of those indemnities for certain former Directors and officers
totalling $96,059.
Qualifying pension scheme indemnity provisions as defined by section
236 of the UK Companies Act 2006 and other applicable legal
jurisdictions were in force during the course of the financial year ended
31 December 2025 and up to the date of this Directors’ report, for the
benefit of trustees of the Rio Tinto Group pension and superannuation
funds across various jurisdictions. No amount has been paid under any
of these indemnities during the year.
The Group has agreed to pay a premium for Directors’ and officers’
insurance. Disclosure of the nature of the liability covered by the
insurance and premium paid is subject to confidentiality
requirements under the contract of insurance.
Oversight of whistleblowing procedures
Our whistleblowing process is overseen by the Board. Every
member of the workforce has access to the whistleblowing program
(myVoice); details of the program are on page 88.
Labour and engagement policies
Labour relations
We also work together with our employees and their unions, and we
seek constructive dialogue and fair solutions while maintaining the
competitiveness of our managed operations. In 2025, we had a
limited disruption due to industrial action in one of our RTIT Sorel
facilities. It did not impact production and customer delivery.
Employment of people with a disability
We acknowledge the systemic barriers facing people with disabilities
in attaining meaningful employment. We further acknowledge the
efforts necessary to fully support people with disabilities and we
seek to implement the accommodations they need to fulfil their role,
or an alternative role if required.
Our Respect, Inclusion and Diversity Policy sets out our
expectations around the behaviours needed for an inclusive and
diverse workplace, where we embrace different perspectives,
valuing diversity as a strength.
Our Employment Policy outlines how we are committed to
preventing discrimination and that we employ on the basis of job
requirements and do not discriminate on grounds of disability or any
other protected characteristic. It also explains how we ensure our
people are trained to perform their roles. More information can be
found at riotinto.com/policies.
We remain a member of the IncludeAbility Employer Network, which
was set up by the Australian Human Rights Commission and aims to
increase access to meaningful employment opportunities for people
with a disability. We will continue to seek ways to improve how we
provide meaningful opportunities for people with a disability and are
also working to reduce these barriers as part of our response to the
recommendations in the Everyday Respect Report and subsequent
Progress Review.
Engagement with UK employees
Our statement on engagement with UK employees is on page 107.
Annual Report on Form 20-F 2025 | 154 | riotinto.com |
Directors’ report | Additional statutory disclosure
Engagement with suppliers, customers and others in a
business relationship with the company
Our statement on engagement with suppliers, customers and others in
a business relationship with the company is on pages 108-109.
Political donations
Rio Tinto prohibits the use of its funds to support political candidates or
parties. No donations were made by the Group to parties or political
candidates during the year. At Rio Tinto, we respect every country’s
political process and do not get involved in political matters, nor do we
make any type of payments to political parties or political candidates.
In the US, in accordance with the Federal Election Campaign Act, we
provide administrative support for the Rio Tinto America Political Action
Committee (PAC), which was created in 1990 and encourages voluntary
employee participation in the political process. All Rio Tinto America PAC
employee contributions are reviewed for compliance with federal and
state laws and are publicly reported in accordance with US election laws.
The PAC is controlled by neither Rio Tinto nor any of its subsidiaries, but
instead by a governing board of 3 employee members on a voluntary
basis. In 2025, contributions to Rio Tinto America PAC by 11 employees
amounted to $13,313.26 and Rio Tinto America PAC donated $20,000 in
political contributions in 2025.
Government regulations
Our operations around the world are subject to extensive laws and
regulations imposed by local, state, provincial and federal
governments. In addition to these laws, several of our operations
are governed by specific agreements made with governments, some
of which are enshrined in legislation.
The geographic and product diversity of our operations reduces the
likelihood of any single law or government regulation having a
material effect on the Group’s business as a whole.
Environmental regulations
Rio Tinto is subject to various environmental laws and regulations in
the countries where it has operations. We measure our performance
against environmental regulation by tracking and rating incidents
according to their actual environmental and compliance impacts using
5 severity categories (very low, low, moderate, high or very high).
Incidents with a consequence rating of high or very high are of a
severity that requires notification to the relevant product group head
and the Rio Tinto Chief Executive immediately after the incident
occurring. In 2025, there were no environmental incidents at managed
operations with a high impact.
During 2025, 9 managed operations incurred fines amounting to
$1,639,274 (2024: $604,845). Details of these fines are reported in
the Our approach to sustainability section on page 50.
Australian corporations that exceed specific greenhouse gas (GHG)
emissions or energy use thresholds have obligations under the
Australian The National Greenhouse and Energy Reporting Act 2007
(NGER). All Rio Tinto entities covered under this Act have submitted
their annual NGER reports by the required 31 October 2025 deadline.
Further information on the Group’s environmental performance is
included in the Our approach to sustainability section on pages
32-88, and at riotinto.com/sustainabilityreporting.
Energy efficiency action
Details of the measures taken to increase the company’s energy
efficiency are reported on pages 32-86.
Energy consumption (equity basis)1, 2, 3
Energy consumption in PJ | 2025 | 20245 |
From activities including the combustion of fuel and the operation of facilities | 386 | 369 |
From the net purchase of electricity, heat, steam or cooling4 | 131 | 123 |
Total energy consumed | 517 | 492 |
1.Rio Tinto does not report on the proportion of energy consumption associated with the
UK and offshore area since it has no producing assets in the UK, only offices, and
consequently falls below Rio Tinto’s threshold level of reporting.
2.Our approach and methodology used for the determination of measuring energy
consumption is available at riotinto.com/sustainabilityreporting.
3.Data reported is equity basis, and includes total energy less export to others.
4.Rio Tinto exports electricity and steam to others and exports are netted from our purchases.
5.Numbers restated from those originally published to ensure comparability over time.
Greenhouse gas (GHG) emissions (in million tonnes CO2e)6, 7, 8
2025 | 20245 | |
Scope 19 | 24.0 | 23.0 |
Scope 210 | 7.5 | 6.9 |
Total gross Scope 1 and Scope 2 (market-based) GHG emissions (equity basis) | 31.5 | 29.9 |
Carbon credits11 | 1.2 | 1.0 |
Total net Scope 1 and 2 emissions (with credits)12 | 30.3 | 28.8 |
Operational emissions intensity (t CO2e/t Cu-eq)(equity)13 | 6.1 | 6.3 |
Scope 2 (location based) | 8.5 | 7.8 |
6.Rio Tinto’s GHG emissions for our operations (RT share: actual equity basis) are
reported in accordance with the requirements under Part 7 of the UK Companies Act
2006 (Strategic report and Directors’ report) Regulations 2013. This GHG data
represents Scope 1 and market-based Scope 2 data on equity basis. Our approach and
methodology used for the determination of these emissions are available at riotinto.com/
sustainabilityreporting.
7.Rio Tinto’s GHG emissions inventory is based on definitions provided by The World
Resource Institute/World Business Council for Sustainable Development Greenhouse
Gas Protocol: A Carbon Reporting and Accounting Standard (Revised Edition) (2015).
8.Rio Tinto does not report on the proportion of CO2 emissions associated with the UK
and offshore area since it has no producing assets in the UK, only offices, and
consequently falls below Rio Tinto’s threshold level of reporting.
9.Scope 1 GHG emissions are direct GHG emissions from facilities fully or partially owned
or controlled by Rio Tinto (equity share basis). They include fuel use,
on-site electricity generation, anode and reductant use, process emissions, land
management and livestock.
10.Scope 2 emissions are presented on equity share basis, for market based reporting
Scope 2 includes the use of Energy Attribution Certificates. Our approach and
methodology used for the determination of these emissions are available at riotinto.com/
sustainabilityreporting.
11.Carbon credits used towards our 2025 net emissions calculations include Australian Carbon
Credit Units (ACCUs) that were retired for compliance for the period 1 January to 30 June
2025 plus a projection of the number of ACCUs we expect to retire for the period 1 July to 31
December 2025. This projection is based on our Scope 1 emissions for the period 1 July - 31
December 2025. For details, refer to the table “Carbon credits retired towards net emissions
(equity basis)” in the Rio Tinto Sustainability Fact Book.
12.Total emissions are the sum of Scope 1 and scope 2 emissions. Total emissions include
scope 1 emissions resulting from production of electricity exported to third parties.
These emissions exclude indirect emissions associated with transportation and use of our
products reported under Scope 3 emissions at riotinto.com/sustainabilityreporting.
13.Historical information for copper equivalent intensity has been restated inline with the
2025 review of commodity pricing to allow comparability over time.
Exploration, research and development
The Group carries out exploration, research and development as
described in the product group on pages 26-31. Exploration and
evaluation costs, net of any gains and losses on disposal, generated a
net loss before tax of $577 million (2024: $936 million). Research and
development costs were $524 million (2024: $398 million).
Dealing in Rio Tinto securities
Rio Tinto securities dealing policy restricts dealing in Rio Tinto
securities by Directors and employees who may be in possession of
inside information. These individuals must seek clearance before
any proposed dealing takes place.
Our policy also prohibits such persons from engaging in hedging or
other arrangements that limit the economic risk in connection to
Rio Tinto securities issued, or otherwise allocated, as remuneration that
are either unvested, or that have vested but remain subject to a holding
period. We also impose restrictions on a broader group of employees,
requiring them to seek clearance before engaging in similar
arrangements over any Rio Tinto securities.
Financial reporting
Disclosure controls and procedures
We have a thorough and rigorous review process in place to ensure
integrity of the periodic reports we release to the market. We
communicate with the market through accurate, clear, concise and
effective reporting, and contents of periodic reports are verified by
the subject matter experts and reviewed by the relevant Group
functions. Such reports are then reviewed and considered by the
Group Disclosure Committee for release to the market.
To ensure that trading in our securities takes place in an informed
and orderly market, we have established a Disclosure Committee to
oversee compliance with our continuous disclosure obligations. The
Group Disclosure and Communications Policy, and the terms of
reference of our Disclosure Committee, together with our adopted
procedures in relation to disclosure and management of relevant
information, support compliance with our disclosure obligations.
Annual Report on Form 20-F 2025 | 155 | riotinto.com |
Directors’ report | Additional statutory disclosure
A copy of the Group Disclosure and Communications Policy is
available on the website.
The members of the Committee are the Chief Executive; the
Chief Financial Officer; the Group Company Secretary; the Chief
Legal, Governance & Corporate Affairs Officer; and the Head of
Investor Relations.
Consistent with the Group’s disclosure protocols, the Board is
provided with copies of all material market announcements promptly
after they are released to the market.
The Group maintains disclosure controls and procedures, as defined in
US Securities Exchange Act of 1934 (US Exchange Act) Rule
13a-15(e). Management, with the participation of the Chief Executive
and Chief Financial Officer, has evaluated the effectiveness of the
Group’s disclosure controls and procedures in relation to US Exchange
Act Rule 13a-15(b), as of the end of the period covered by this report,
and has concluded that the Group’s disclosure controls and procedures
were ineffective at a reasonable assurance level because a material
weakness in our internal control over financial reporting existed as
described below.
Management’s report on internal control over financial
reporting
Management is responsible for establishing and maintaining
adequate internal control over financial reporting. These controls,
designed under the supervision of the Chief Executive and Chief
Financial Officer, provide reasonable assurance regarding the
reliability of the Group’s financial reporting and the preparation and
presentation of financial statements for external reporting purposes,
in accordance with International Financial Reporting Standards
(IFRS) as defined on page 158.
The Group’s internal control over financial reporting include policies
and procedures designed to ensure the maintenance of records
that:
•accurately and fairly reflect transactions and dispositions
of assets;
•provide reasonable assurances that transactions are recorded as
necessary, enabling the preparation of financial statements in
accordance with IFRS, and that receipts and expenditures are
made with the authorisation of management and Directors of each
of the companies; and
•provide reasonable assurance regarding the prevention or timely
detection of unauthorised acquisition, use or disposition of the
Group’s assets that could have a material effect on its
financial statements.
Management, under the supervision of the Chief Executive and
Chief Financial Officer, conducted an assessment of the
effectiveness of the company’s internal control over financial
reporting was based on criteria established in the Internal Control-
Integrated Framework (2013), issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on
its assessment, management has determined that the Group’s
internal control over financial reporting is ineffective as at 31
December 2025 due to the existence of the material weakness
described below.
Management’s assessment and conclusion on the effectiveness of
internal control over financial reporting excludes Arcadium Lithium
plc, since this entity was acquired on 6th March 2025. This entity is
included in our 2025 consolidated financial statements, and
constituted 9% of our total assets as at 31 December 2025 and 2%
of consolidated sales revenue for the year ended 31 December
2025.
Due to inherent limitations, internal control over financial reporting
cannot provide absolute assurance. Similarly, these controls may not
prevent or detect all misstatements, whether caused by error or fraud,
within the Group.
A material weakness is defined as “a deficiency, or a combination of
deficiencies in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the
Company’s annual financial statements will not be prevented or
detected on a timely basis.”
Management identified a material weakness in its internal control
over financial reporting. This related specifically to inadequate risk
assessment over certain information and assumptions, used in the
calculation of fair value of a newly acquired business used in the
purchase price allocation exercise and subsequent test of
associated goodwill for impairment, resulting in ineffective design
and operation of certain related controls. No corrected or
uncorrected misstatement arose as a consequence of this
material weakness.
Attestation report of Independent Registered Public
Accounting Firms
KPMG, the Group’s auditors, has audited the company’s internal
control over financial reporting as at 31 December 2025 and has
issued an adverse report on the effectiveness of the internal control
over financial reporting, as stated in their report of Independent
Registered Public Accounting Firms which is included in this
Form 20-F.
Changes to internal control over financial reporting
Other than the material weakness described above, there were no
changes to our internal control over financial reporting during the
relevant period that have materially affected, or are reasonably likely
to materially affect, the internal control over financial reporting of the
Group.
In light of this material weakness, we performed additional analyses
and other procedures to ensure that the Group’s financial reporting
and the preparation and presentation of financial statements for
external reporting purposes, is in accordance with IFRS.
Notwithstanding the existence of the material weakness in internal
control over financial reporting, we believe that the consolidated
financial statements fairly present, in all material respects, the
Group’s financial condition, results of operations and cash flows for
the periods presented in this Form 20-F conformity with IFRS.
Remediation plan
Under the supervision and with the participation of management,
including the Chief Executive and Chief Financial Officer,
management is committed to remediating the material weakness
in a timely fashion, with appropriate oversight from the Audit & Risk
Committee. Management has started to build a remediation plan to
address the root cause of the material weakness, including
enhanced risk assessment and design of controls. Progress against
these remediation actions will be monitored through 2026.
Application of and compliance with governance codes
and standards
Our shares are listed on both the Australian Securities Exchange
(ASX) and the London Stock Exchange (LSE), We comply with the:
London Stock Exchange – UK Corporate Governance Code
(2024 version) (the UK Code) and the ASX Principles.
In addition, as a foreign private issuer (FPI) with American
Depositary Receipts (ADRs) listed on the New York Stock Exchange
(NYSE), we report any significant corporate governance differences
from the NYSE listing standards (NYSE Standards) followed by US
companies.
Annual Report on Form 20-F 2025 | 156 | riotinto.com |
Directors’ report | Additional statutory disclosure
Statement of compliance with the UK Code and ASX Principles
Throughout 2025, and as at the date of this report, the Group has
complied with all the Principles of the UK Code and the ASX
Principles, and all the relevant provisions, as currently in force.
For the purposes of ASX Listing Rule 4.10.3 and the ASX Principles,
pages 102-121 and 150-156 of this report form our “Corporate
Governance Statement”. This statement is current as at 5 February
2026, unless otherwise indicated, and has been approved by
the Board. Further information on our corporate governance
framework and practices is available at riotinto.com/
corporategovernance.
In accordance with UK Listing Rule 6.6.6 R(5), details of how we
have complied with the Principles set out in the UK Code can be
found by reference to the table below.
Principle | Page reference |
Section 1 – Board leadership and company purpose | |
A.Role of the Board | 103 - 105 |
B.Purpose, strategy and culture | 6 - 9, 111 |
C.Board decisions and outcomes | 110 - 111 |
D.Stakeholder engagement | 107 - 109 |
E.Workforce policies | 87 - 88, 107, 153 |
Section 2 – Division of responsibilities | |
F.Role of the Chair | 102, 103 |
G.Composition of the Board | 103 - 105, 114 |
H.Role of the Non-Executive Directors | 104 - 105 |
I.Board effectiveness | 103, 112 |
Section 3 – Composition, succession and evaluation | |
J.Board appointments and succession planning | 113 - 114 |
K.Board skills, experience and knowledge | 104 - 105, 114, 153 |
L.Board evaluation | 112 |
Section 4 – Audit, risk and internal control | |
M.Effectiveness of internal and external audit | 115- 119 |
N.Fair, balanced and understandable assessment | 154 - 155 |
O.Risk management and internal control | 89 - 100, 118 |
Section 5 – Remuneration | |
P.Remuneration policies and practices to support strategy | 125 - 126 |
Q.Executive remuneration policy | 125 - 126 |
R.Remuneration outcomes and independent judgement | 127 - 149 |
Difference from NYSE Standards
We consider that our practices are broadly consistent with the NYSE
Standards, There are the following exceptions where the literal
requirements of the NYSE Standards are not met due to differences
in corporate governance between the US, UK and Australia:
•The NYSE Standards state that US companies must have a
nominating/corporate governance committee which, in addition to
identifying individuals qualified to become board members,
develops and recommends to the Board a set of corporate
governance principles applicable to the company. Previously, the
Board itself developed the corporate governance principles.
Following a refresh of the responsibilities of the Nominations &
Governance Committee, the terms of reference were updated
with effect 1 January 2026. The Nominating & Governance
Committee oversees and monitors the corporate governance
framework and makes recommendations to the Board for
approval of the corporate governance practices.
•Under US securities law and the NYSE Standards, the company
is required to have an audit committee that is directly responsible
for the appointment, compensation, retention and oversight of the
work of external auditors. While our Audit & Risk Committee
makes recommendations to the Board on these matters, and is
subject to legal and regulatory requirements on oversight of audit
tenders, the ultimate responsibility for the appointment and
retention of the external auditors of Rio Tinto rests with
the shareholders.
•Under US securities law and the NYSE Standards, an audit
committee is required to establish procedures for the receipt,
retention and treatment of complaints regarding accounting,
internal accounting controls and audit matters. The whistleblowing
program (myVoice) enables employees to raise any concerns
confidentially or anonymously. The Board has responsibility to
ensure that the program is in place and to review the reports
arising from its operations.
•The NYSE Standards require that shareholders must be given the
opportunity to vote on all equity-compensation plans and material
revisions to those plans. We comply with the UK requirements,
which are similar to the NYSE Standards. However, the Board
does not explicitly take into consideration the NYSE's detailed
definition of what are considered 'material revisions.'
Non-audit services and auditor independence
Details of the non-audit services and a statement of independence
regarding the provision of non-audit services undertaken by our
external auditor, including the amounts paid for non-audit services,
are set out on page 118 of the Directors’ report.
Going concern
The Directors, having made appropriate enquiries, have satisfied
themselves that it is appropriate to adopt the going concern basis of
accounting in preparing the financial statements. Additionally, the
Directors have considered longer-term viability, as described in their
statement on page 100.
2026 annual general meetings
The 2026 Rio Tinto plc AGM will be held in parallel with, and at the
same time as, the Rio Tinto Limited AGM on 6 May 2026 in London,
UK and in Perth, Australia respectively. Notices of the 2026 AGMs
will be issued to shareholders of each company ahead of the
meetings.
Directors’ approval statement
The Directors’ report is delivered in accordance with a resolution of
the Board.
Dominic Barton
Chair
19 February 2026
Annual Report on Form 20-F 2025 | 157 | riotinto.com |
2025 Financial statements
About Rio Tinto | 158 |
About the presentation of our consolidated financial statements | 158 |
Consolidated primary statements | |
Consolidated income statement | 165 |
Consolidated statement of comprehensive income | 166 |
Consolidated cash flow statement | 167 |
Consolidated balance sheet | 168 |
Consolidated statement of changes in equity | 169 |
Notes to the consolidated financial statements | |
Our financial performance | |
Note 1 Financial performance by segment | 170 |
Note 2 Earnings per ordinary share | 172 |
Note 3 Dividends | 172 |
Note 4 Impairment charges net of reversals | 173 |
Note 5 Acquisitions and disposals | 176 |
Note 6 Revenue by destination and product | 179 |
Note 7 Net operating costs (excluding items disclosed separately) | 180 |
Note 8 Exploration and evaluation expenditure | 181 |
Note 9 Finance income and finance costs | 181 |
Note 10 Taxation | 182 |
Our operating assets | |
Note 11 Goodwill | 184 |
Note 12 Intangible assets | 185 |
Note 13 Property, plant and equipment | 188 |
Note 14 Close-down, restoration and environmental provisions | 191 |
Note 15 Deferred taxation | 195 |
Note 16 Inventories | 196 |
Note 17 Receivables and other assets | 197 |
Note 18 Trade and other payables | 198 |
Note 19 Other provisions | 198 |
Our capital and liquidity | |
Note 20 Net debt | 200 |
Note 21 Borrowings | 200 |
Note 22 Leases | 202 |
Note 23 Cash and cash equivalents | 203 |
Note 24 Other financial assets and liabilities | 203 |
Note 25 Financial instruments and risk management | 204 |
Our people | |
Note 26 Average number of employees | 209 |
Note 27 Employment costs and provisions | 209 |
Note 28 Share-based payments | 210 |
Note 29 Post-retirement benefits | 213 |
Note 30 Directors’ and key management personnel remuneration | 218 |
Our Group structure | |
Note 31 Subsidiaries with material non-controlling interests | 219 |
Note 32 Principal joint operations | 220 |
Note 33 Entities accounted under the equity method | 221 |
Note 34 Related-party transactions | 222 |
Our equity | |
Note 35 Share capital | 223 |
Note 36 Other reserves and retained earnings | 224 |
Other notes | |
Note 37 Contingencies and commitments | 225 |
Note 38 Auditors’ remuneration | 227 |
Note 39 Events after the balance sheet date | 228 |
Note 40 New standards issued but not yet effective | 228 |
Other information | |
Consolidated entity disclosure statement | 230 |
Report of Independent Registered Public Accounting Firms | 246 |
Additional financial information | |
Financial information by business unit | 267 |
Alternative performance measures | 270 |
| Image: Ports Dampier, Australia. |
Annual Report on Form 20-F 2025 | 158 | riotinto.com |
2025 Financial statements
In 1995, Rio Tinto plc, incorporated in the UK and listed on the London
and New York stock exchanges, and Rio Tinto Limited, incorporated in
Australia and listed on the Australian Securities Exchange, formed a
dual-listed companies structure (DLC). Under the DLC, Rio Tinto plc and
Rio Tinto Limited are viewed as a single economic enterprise, with
common Boards of Directors, and the shareholders of both companies
have a common economic interest in the DLC. International Financial
Reporting Standards-compliant consolidated financial statements of the
Rio Tinto Group are prepared on this basis, with the interests of
shareholders of both companies presented as the equity interests of
shareholders in the Rio Tinto Group. This is in accordance with the
principles and requirements of International Financial Reporting
Standards (IFRS Accounting Standards).
Rio Tinto’s business is finding, mining, and processing mineral
resources. Major products includes iron ore, aluminium, copper and
lithium. Activities span the world and are strongly represented in
Australia and North America, with significant businesses in Asia,
Europe, Africa and South America.
Rio Tinto plc’s registered office is at 6 St James’s Square, London
SW1Y 4AD, UK. Rio Tinto Limited’s registered office is at Level 43,
120 Collins Street, Melbourne VIC 3000, Australia.
financial statements
All financial statement values are presented in US dollars (USD) and
rounded to the nearest million (US$m), unless otherwise stated. Where
applicable, comparatives have been adjusted to measure or present
them on the same basis as current-year figures.
Our financial statements for the year ended 31 December 2025
were authorised for issue in accordance with a Directors’ resolution
on 19 February 2026.
a.The basis of preparation
The financial information included in the financial statements for the
year ended 31 December 2025, and for the related comparative
periods, has been prepared:
•under the historical cost convention, as modified by the
revaluation of certain financial instruments, the impact of fair
value hedge accounting on the hedged items and the accounting
for post-employment assets and obligations
•on a going concern basis, management has prepared detailed
cash flow forecasts for at least 12 months and has updated
life-of-mine plan models with longer-term cash flow projections,
which demonstrate that we will have sufficient cash, other liquid
resources and undrawn credit facilities to enable us to meet our
obligations as they fall due
•to meet IFRS Accounting Standards as issued by the International
Accounting Standards Board (IASB) and interpretations issued from
time to time by the IFRS Interpretations Committee (IFRS IC), which
are mandatory at 31 December 2025.
The above accounting standards and interpretations are collectively
referred to as “IFRS” in this report and contain the principles we use to
create our accounting policies. Where necessary, adjustments are made
to the locally reported assets, liabilities and results of subsidiaries, joint
arrangements and associates to align their accounting policies with ours
for consistent reporting.
b.The basis of consolidation
The financial statements consolidate the accounts of Rio Tinto plc and
Rio Tinto Limited (together “the Companies”) and their respective
subsidiaries (together “the Rio Tinto Group”, “the Group”, “we”, “our”)
and include the Group’s share of joint arrangements and associates.
We consolidate subsidiaries where either of the companies controls the
entity. Control exists where either of the companies has: power over the
entities, that is, existing rights that give it the current ability to direct the
relevant activities of the entities (those that significantly affect the
companies’ returns); exposure, or rights, to variable returns from its
involvement with the entities; and the ability to use its power to affect
those returns.
A joint arrangement is an arrangement in which 2 or more parties
have joint control. Joint control is the contractually agreed sharing of
control such that decisions about the relevant activities of the
arrangement (those that significantly affect the companies’ returns)
require the unanimous consent of the parties sharing control. We
have 2 types of joint arrangements: joint operations (JOs) and joint
ventures (JVs). A JO is a joint arrangement in which the parties that
share joint control have rights to the assets and obligations for the
liabilities relating to the arrangement. This includes situations where
the parties benefit from the joint activity through a share of the
output, rather than by receiving a share of the results of trading. For
our JOs, we recognise: our share of assets and liabilities; revenue
from the sale of our share of the output and our share of any
revenue generated from the sale of the output by the JO; and its
share of expenses. All such amounts are measured in accordance
with the terms of the arrangement, which is usually in proportion to
our interest in the JO. These amounts are recorded in our financial
statements on the appropriate lines. Our principal JOs are shown in
note 32. A JV is a joint arrangement in which the parties that share
joint control have rights to the net assets of the arrangement. JVs
are accounted for using the equity accounting method.
An associate is an entity over which we have significant influence.
Significant influence is presumed to exist where there is neither
control nor joint control and the Group has over 20% of the voting
rights, unless it can be clearly demonstrated that this is not the case.
Significant influence can arise where we hold less than 20% of the
voting rights if we have the power to participate in the financial and
operating policy decisions affecting the entity. It also includes
situations of collective control.
We use the term “equity accounted units” (EAUs) to refer to
associates and JVs collectively. Under the equity accounting
method, the investment is recorded initially at cost to the Group,
including any goodwill on acquisition. In subsequent periods, the
carrying amount of the investment is adjusted to reflect the Group’s
share of the EAUs’ retained post-acquisition profit or loss and other
comprehensive income. Our principal JVs and associates are shown
in note 33.
In some cases, we participate in unincorporated arrangements and have
rights to our share of the assets and obligations for our share of the
liabilities of the arrangement rather than a right to a net return, but we do
not share joint control. In such cases, we account for these
arrangements in the same way as our joint operations, with all such
amounts measured in accordance with the terms of the arrangement,
which is usually in proportion to our interest in the arrangement.
All intragroup transactions and balances are eliminated
on consolidation.
Annual Report on Form 20-F 2025 | 159 | riotinto.com |
2025 Financial statements
c.Materiality
Our Directors consider information to be material if correcting a misstatement, omission or obscuring could, in the light of surrounding
circumstances, reasonably be expected to change the judgement of a reasonable person relying on the financial statements. The Group
considers both quantitative and qualitative factors in determining whether information is material. The concept of materiality is therefore not
driven purely by numerical values.
When considering the potential materiality of information, management makes an initial quantitative assessment using thresholds based on
estimates of profit before taxation; for the year ended 31 December 2025 the quantitative threshold was US$700 million. However, other
considerations can result in a determination that lower values are material or, occasionally, that higher values are immaterial. These
considerations include whether a misstatement, omission or obscuring: masks a change or trend in key performance indicators; causes
reported key metrics to change from a positive to a negative value or vice versa; affects compliance with regulatory requirements or other
contractual requirements; could result in an increase to management’s compensation; or might conceal an unlawful transaction.
In assessing materiality, management also applies judgement based on its understanding of the business and its internal and external
financial statement users. The assessment will consider user expectations of numerical and narrative reporting. Sources used in making this
assessment would include, for example: published analyst consensus measures, experience gained in formal and informal dialogue with
users (including regulatory correspondence), and peer group benchmarking.
d.Summary of key judgements or other relevant judgements made in applying the accounting policies
The preparation of the financial statements requires management to use judgement in applying accounting policies and in making critical
accounting estimates.
These judgements and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to
previous experience, but actual results may differ materially from the amounts included in the financial statements. Areas of judgement in the
application of accounting policies that have the most significant effect on the amounts recognised in the financial statements, and key
sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities
within the next financial year, are noted below. Further information is contained in the notes to the financial statements.
Summarised below are the key judgements that we have taken in the application of the Group’s accounting policies for 2025 and how they
compare to the prior year. Taking a different judgement over these matters could lead to a material impact on the 2025 financial statements.
More detail on the judgement can be found in the respective notes.
Key judgements | 2025 | 2024 | Context |
Indicators of impairment and impairment reversals (note 4) | a | a | Various cash-generating units of the Group that have been impaired or tested for impairment in previous years, are at higher risk of impairment charge or reversal in the future due to carrying value and recoverable amounts being similar. While we monitor all assets for impairment, these assets, the largest being Oyu Tolgoi, are monitored more closely for indicators of further impairment or impairment reversal as such adjustments would likely be material to our results. |
Purchase price allocation from business combination (note 5) | a | 0 | The allocation of purchase consideration to the identifiable assets and liabilities of Arcadium Lithium plc is a significant judgement. The fair value of assets has been determined based on discounted future cash flows. These are inherently uncertain as selling prices are relatively volatile and the majority of the value is attributable to mines either under construction or still at the evaluation stage of study. Alternative modelling assumptions would have resulted in a different allocation of value between intangible assets, and property, plant and equipment, and, consequently, deferred tax liabilities and goodwill. |
Deferral of stripping costs (note 13) | a | a | The deferral of stripping costs is a key judgement in open-pit mining operations as it impacts the amortisation base for these costs, calculated on a units of production basis; this involves determining whether multiple pits are considered separate or integrated operations, which in turn influences the classification of stripping activities as pre-production or production phase. This judgement relies on various factors that are based on the unique characteristics and circumstances of each mine. |
Estimation of asset lives (note 13) | a | a | The useful lives of major assets are often linked to the life of the orebody they relate to, which is in turn based on the life-of-mine plan. Where the major assets are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. The accuracy of estimating these useful lives is essential for determining the appropriate allocation of costs over time, reflecting the consumption of the asset’s economic benefits. |
Close-down, restoration and environmental obligations (note 14) | a | a | Significant judgement is required to assess the possible extent of closure rehabilitation work needed to fulfil the Group’s legal, statutory, and constructive obligations, along with other commitments to stakeholders. This involves leveraging our experience in evaluating available options and techniques to meet these obligations, associated costs and their likely timing and, crucially, determining when that estimate is sufficiently reliable to make or adjust a closure provision. |
Annual Report on Form 20-F 2025 | 160 | riotinto.com |
2025 Financial statements
e.Key sources of estimation uncertainty
We define key sources of estimation uncertainty as accounting estimates that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year. We summarise below the most significant items and the rationale for
their identification. Relevant sensitivities are included within the indicated financial statement notes.
Key accounting estimates | 2025 | 2024 | Context |
Impairment test of goodwill (note 11) | a | 0 | The acquisition of Arcadium Lithium plc in March 2025 resulted in the recognition of goodwill which means the associated cash-generating units need to be tested annually for impairment. The recoverable amount is determined based on discounted cash-flows using future-oriented estimates, including forward pricing, operating costs, construction and production profiles that are inherently uncertain. |
Estimation of the close-down, restoration and environmental cost obligations (note 14) | a | a | Close-down, restoration and environmental obligations are based on cash flow projections derived from studies that incorporate planned rehabilitation activities, cost estimates and discounting for the time value. Closure studies are performed to a rolling schedule with increased frequency and engineering accuracy for sites approaching end of life. Information from these studies can result in a material change to the associated provisions. During the year, the most significant closure provision updates related to a number of sites across the Pilbara. The provisions are based on reforecast cash flows; these are subject to further study which could result in material adjustment in the near term. |
Power related commodity derivatives (note 25) | a | a | A discounted cash flow methodology is used to determine the fair value of the derivatives. Key inputs into the renewable energy valuation models include forward electricity price curves, which are used to forecast future floating cash flows, estimated electricity generation and credit-adjusted discount rates. Long-term forward electricity prices are a source of a significant estimation uncertainty as they are not readily available and may be impacted by renewable market developments, which are presently unknown. |
Estimation of obligations for post-employment costs (note 29) | a | a | The value of the Group’s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out, discounted to the balance sheet date. There is significant estimation uncertainty pertaining to the most significant assumptions used in accounting for pension plans, namely the discount rate, the long-term inflation rate and mortality rates. |
f.Currency
Other relevant judgements | Identification of functional currency |
We present our financial statements in USD, as that presentation currency most reliably reflects the global business performance of the Group as a whole. The functional currency for each subsidiary, unincorporated arrangement, joint operation and equity accounted unit is the currency of the primary economic environment in which it operates. For businesses that reside in developed economies, the functional currency is generally the currency of the country in which it operates because of the dominance of locally incurred costs. If the business resides in an emerging economy, the USD is generally identified to be the functional currency as a higher proportion of costs, particularly imported goods and services, are agreed and paid in USD, in common with other international investors. Determination of functional currency involves judgement, and other companies may make different judgements based on similar facts. The determination of functional currency affects the measurement of non-current assets included in the balance sheet and, as a consequence, the depreciation and amortisation of those assets included in the income statement. It also impacts exchange gains and losses included in the income statement and in equity. We also apply judgement in determining whether settlement of certain intragroup loans is neither planned nor likely in the foreseeable future and, therefore, whether the associated exchange gains and losses can be taken to equity. During 2025, A$ A$ | |
On consolidation, income statement items for each entity are translated from the functional currency into USD at the full-year average rate of
exchange, except for material one-off transactions, which are translated at the rate prevailing on the transaction date. Balance sheet items
are translated into USD at period-end exchange rates.
Exchange differences arising on the translation of the net assets of entities with functional currencies other than USD are recognised directly
in the currency translation reserve. These translation differences are shown in the statement of comprehensive income, with the exception of
the translation adjustment relating to Rio Tinto Limited’s share capital, which is shown in the statement of changes in equity.
Where an intragroup balance is, in substance, part of the Group’s net investment in an entity, exchange gains and losses on that balance are
taken to the currency translation reserve.
Except as noted above, or where exchange differences are deferred as part of a cash flow hedge, all other differences are charged or
Full-year average | Year-end | |||||
One unit of local currency buys the following number of USD | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 |
Pound sterling | ||||||
Australian dollar | ||||||
Canadian dollar | ||||||
Euro | ||||||
South African rand | ||||||
Annual Report on Form 20-F 2025 | 161 | riotinto.com |
2025 Financial statements
g.Ore Reserves and Mineral Resources
A Mineral Resource is a concentration or occurrence of solid
material of economic interest in or on the Earth’s crust in such form,
grade (or quality), and quantity that there are reasonable prospects
for eventual economic extraction. An Ore Reserve is the
economically mineable part of a measured or indicated Mineral
Resource.
The estimation of Ore Reserves and Mineral Resources requires
judgement to interpret available geological data and subsequently to
select an appropriate mining method and then to establish an
extraction schedule. At least annually, the Competent Persons of the
Group (according to the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the
“JORC Code”)), estimate Ore Reserves and Mineral Resources
using assumptions such as:
•available geological data
•expected future commodity prices and demand
•exchange rates
•production costs
•transport costs
•close-down and restoration costs
•recovery rates
•discount rates
•renewal of mining licences.
With regard to our future commodity price assumptions, to calculate
our Mineral Reserves and Mineral Resources for our filing on the
Australian Securities Exchange and London Stock Exchange, we
use prices generated by our Strategy and Economics team..For this
Form 20-F, we use consensus price or historical pricing and comply
with subpart 1300 of Regulation S-K (SK-1300), instead of with the
JORC Code.
We use judgement as to when to include Mineral Resources in
accounting estimates, for example, the use of Mineral Resources in
our depreciation policy as described in note 13 and in the
determination of the date of closure as described in note 14.
There are many uncertainties in the estimation process and
assumptions that are valid at the time of estimation may change
significantly when new information becomes available. New
geological or economic data or unforeseen operational issues may
change estimates of Ore Reserves and Mineral Resources. This
could cause material adjustments in our financial statements to:
•depreciation and amortisation rates
•carrying values of intangible assets and property, plant and
equipment
•deferred stripping costs
•provisions for close-down and restoration costs
The impacts on our financial statements from climate change and
the execution of our climate change strategy are discussed below.
Global decarbonisation and the world’s energy transition continue to
evolve, with the potential to materially impact our future financial
results as our significant accounting judgements and key estimates
are updated to reflect prevailing circumstances. The impacts from
climate change, our current strategy and approach to decarbonise
our operations are considered in our significant judgements and key
estimates reflected in these financial statements.
Strategy and approach to climate change
Our Climate Action Plan continues to guide our strategy to
decarbonise our operations, grow responsibly producing
commodities the world needs for the global energy transition,
manage climate-related risks and opportunities, and support our
partners in reducing value chain emissions.
We remain committed to delivering a 50 % reduction in our Scope 1
and 2 emissions by 2030, and to reach net zero emissions by 2050
(relative to 2018 levels). These targets were set in 2020 and were
consistent at the time with the Paris Agreement goals to limit
warming to 1.5°C. This pathway relies on commercially available
solutions, such as renewable energy contracts, and is contingent on
advancing repowering solutions for our Pacific Aluminium smelters.
Nature-based solutions (NbS) and carbon credits complement our
decarbonisation activities. We have now reduced gross operational
emissions by 14 % below our 2018 baseline; and have a pipeline of
projects and committed investments that support our 2030 target.
Our gross emissions reductions are expected to be at least 40 % by
2030, and the use of carbon credits towards our target will be limited
to 10 % of our 2018 baseline. Although the climate change targets
published in our 2025 Climate Action Plan remain unchanged, we
have updated our capital expenditure guidance to principally reflect
the slower pace of commercially viable technology development in
hard-to-abate sectors and our commitment to financially disciplined
capital allocation. Consequently, our updated decarbonisation
capital expenditure forecast is US$1 billion to US$2 billion to 2030,
revised from the prior year estimate of between US$5 billion to
US$6 billion.
Our approach to addressing Scope 3 emissions is to engage with
our customers on climate change and work with them to develop
and scale up the technologies to decarbonise steel and aluminium
production.
Progressing our strategy to grow in materials needed for the
low-carbon transition
Our forecast growth capital expenditure continues to capture new
growth opportunities with a focus on materials that are expected to
see strong demand growth from the low-carbon transition. This
includes the recent acquisition of Arcadium Lithium plc completed in
2025 (note 5) and developing Rincon, Simandou and Kennecott
Integrated Skarns. Our budget for central greenfield exploration
mainly focuses on copper and lithium projects. These projects follow
our existing accounting policies on undeveloped properties and cost
capitalisation.
Annual Report on Form 20-F 2025 | 162 | riotinto.com |
2025 Financial statements
Scenarios used to identify and assess climate risks and
opportunities
We use scenarios to identify and assess risks and opportunities,
including climate, that may affect our business in the medium to long
term. To assess transition risk, we use market analysis for our short-
term outlook, and our Conviction and Resilience scenarios for our
medium- to long-term assessment. For physical risks, we use an
intermediate and high emissions scenario. We review our scenarios
every year as part of our Group strategy engagement with the
Board.
Our Conviction scenario continues to be our central case. It
underlies strategic planning and portfolio investment decisions
across the Group, is used in commodity price forecasts, valuation
models, reserves and resources determination, and in determining
estimates for assets and liabilities in our financial statements. In this
scenario, countries will decarbonise at a moderate pace, real gross
domestic product (GDP) will grow at 2.2% between 2023 and 2050,
climate policies will become more ambitious and effective over time
resulting in a temperature rise of between 2.1°C to 2.3°C (previously
2.1°C) by 2100.
Resilience scenario, which limits temperature rises to around 2.5°C by
2100, is a sensitivity analysis that is designed to test our annual plan
and investment proposals. Weaker governance, declining global trade,
and lower economic growth will lead to less effective climate action. Real
GDP growth will only average 1.6% between 2023 and 2050.
Neither of the Conviction or Resilience scenarios above are
consistent with the expectation of climate policies required to
accelerate the global transition to meet the stretch goal of the Paris
Agreement. Despite agreements on climate change reached
globally in recent years in Glasgow, Dubai and Belem, emissions
today continue to rise, making the 1.5°C goal of the Paris
Agreement unlikely to be achieved. In 2022, we developed a Paris-
aligned scenario, referred to as the Aspirational Leadership
scenario. The Aspirational Leadership scenario reflects a world of
high growth, significant social change and accelerated climate
action. The Aspirational Leadership scenario is a commodity sales
price and carbon cost sensitivity, with all other inputs remaining
equal to our central case. It is built by design to reach net zero
emissions globally by 2050 and helps us better understand the
pathways to meet the Paris Agreement goal, and what this could
mean for our business. We do not use the Aspirational Leadership
scenario in our broader strategic or investment decision-making.
Importantly, none of the above scenarios are considered a definitive
representation for our assessment of the future impact of climate
change on the Group. Scenario modelling has inherent limitations
and, by its nature, allows a range of possible outcomes to be
considered where it is impossible to predict which outcome is likely.
In addition, as our macro-economic modelling involves a range of
variables, isolating and measuring the impact of specific climate
risks and opportunities is challenging. We do not publish the
commodity price forecasts associated with these scenarios, as to do
so would weaken our position in commercial negotiations and might
give rise to concerns from other market participants.
financial resilience of our portfolio
With higher GDP growth and a faster low-carbon transition, our
economic performance is stronger in Conviction than in Resilience.
In Aspirational Leadership, higher carbon penalties and the potential
impact on demand for mid- and lower-grade iron ore result in mixed
economic performance for iron ore, but stronger demand for other
metals than in Conviction. Overall, the economic performance of our
portfolio would be stronger in scenarios with higher GDP growth and
proactive climate action, and is resilient under scenarios aligned
with 1.5°C, 2.1°C-2.3°C and 2.5°C outcomes, respectively.
We carefully monitor and manage transition risks linked to our
operational Scope 1 and 2 emissions and value-chain Scope 3
emissions. In particular, we expect the decarbonisation of our assets
to benefit from the implementation of new technologies. The pace of
technological development is uncertain, which could delay or
increase the cost of our decarbonisation efforts.
Physical risks such as extreme weather events, rising sea levels
and temperature fluctuations can disrupt production, affect supply
chains, damage assets and infrastructure and impact the health and
safety of our people. Our approach to addressing physical risks
integrates continued measures to enhance resilience, applying
advanced weather and climate data for operational planning,
emergency response and long-term risk management. Climate risk
management is embedded across the asset life cycle, from project
initiation to closure planning.
We have continued to progress our Value at Risk analysis by
advancing physical climate change risk assessments through
financial modelling top down at the product group level. This year,
we completed assessments for our Aluminium & Lithium, Copper
and Iron Ore product groups. These assessments, as well as our
ongoing review processes, including impairment assessments, have
not identified any material accounting impacts to date.
Building on our physical resilience approach, we implemented a
number of measures to strengthen our resilience to physical climate
risk. This includes the development of a seawater desalination plant
in Dampier to provide a climate-resilient water source for our Pilbara
operations and the communities it supplies, in collaboration with
Water Corporation.
In addition, we do not foresee the renewal of our contractual water
rights in Canada that have been classified as indefinite-lived
intangible assets to be at risk from climate change (note 12).
Further, closure planning considers future climate change
projections at each step of the process to support safe and
appropriate final landform design.
While prioritising emissions reductions at our operations, we are
also investing in high-integrity NbS that can bring benefits to people,
nature and climate in the regions where we operate. We will
voluntarily retire associated carbon credits to complement other
decarbonisation investments, but, as discussed above, will limit the
use of voluntary and compliance offsets towards our 2030 climate
target to up to 10% of our 2018 baseline emissions. We source
carbon credits in 3 ways: we develop new projects, invest in and
scale up existing projects, and source high-quality carbon credits
through spot carbon credit purchases and long-term offtake
agreements. This complements our abatement project portfolio and
supports our compliance with carbon pricing regulation such as the
Safeguard Mechanism in Australia. In 2025, we made progress on
NbS, including advancing voluntary clean cooking, reforestation,
grasslands management and sustainable landscape projects, and
expanding our environmental planting ACCU pipeline in Australia.
In 2025, we purchased US$57 million (2024: US$50 million) of
carbon credits. They have been acquired for our own use and are
accounted for as intangible assets (note 12).
Annual Report on Form 20-F 2025 | 163 | riotinto.com |
2025 Financial statements
Decarbonisation expenditure
As part of our decarbonisation programs, we invested
US$182 million (2024: US$283 million) comprising capital projects,
investments and carbon credits referred to above, capitalised on the
balance sheet. Our operating expenditure on Scope 1, 2 and 3
energy efficient initiatives and research and development (R&D)
costs, inclusive of our equity share of R&D related to ELYSISTM, was
US$430 million (2024: US$306 million), recognised in the income
statement (note 7). Our capital commitments at the end of 2025
relating to decarbonisation totalled US$142 million (2024:
US$114 million) and included Jinbi and Amrun renewable power
purchase agreements (PPAs), both classified as leases not yet
commenced (note 37).
We invested US$7 million (2024: US$89 million) in entities
specialising in decarbonisation and related technology, accounted
for as financial assets at fair value.
Given advancements we are making to abate our carbon emissions,
we have considered the potential for asset obsolescence, with a
particular focus on our Pilbara operations where we are building our
own renewable assets and are prioritising investment in renewables
to switch away from natural gas power generation. No material
changes to useful economic lives have been identified in the current
year as the assets are expected to be required for the transition
(note 13). As the renewable projects progress, it is possible that
such adjustments may be identified in the future.
Large-scale renewable PPAs require judgement to determine the
appropriate accounting treatment and may result in a lease, a
derivative or an executory contract depending on contractual terms
(refer to note 22 for further information on significant judgements in
lease assessment). The renewable solar and wind PPAs at Richards
Bay Minerals (RBM) are accounted for on an accrual basis as
energy is produced. The renewable offtake arrangements at QIT
Madagascar Minerals (QMM) and Amrun are leases, while our own
built renewable solar farms, Gudai-Darri and Karratha, follow usual
policies on capitalisation of construction cost and depreciation when
ready to use.
As part of the program to develop renewable energy solutions for
our Queensland aluminium assets, we entered into a hybrid solar
and battery arrangement with Edify Energy in 2025 and 2 long-term
renewable 2.2 GW PPAs: the Upper Calliope solar farm and the
Bungaban wind farm, in prior years, to buy renewable electricity and
associated green products to be generated in the future. These
PPAs are in the final feasibility stage and development remains
subject to achieving financial close. In 2024, our New Zealand
Aluminium Smelters signed long-term PPAs with electricity
generators for a total of 572 MW of hydroelectricity. We have also
signed 2 renewable PPAs in the US to date. These contracts are
recorded as level 3 financial derivatives (note 25 (iv)) and require
complex measurement over the contract’s term, with inputs such as
unobservable long-term energy prices being key sources of
estimation of uncertainty (note e).
No adjustments to useful lives of the existing mining fleet have been
identified to date as a result of planned electrification in the Pilbara. The
solutions are still in development or pilot stages and the gradual fleet
replacement is intended to be part of the normal life cycle renewal of
trucks. Depending on technological development, which is highly
uncertain, this could lead to accelerated depreciation in the future.
Similarly, our target to have net zero vessels in our portfolio by 2030 has
not given rise to accounting adjustments to date, as the replacement is
planned as part of the life cycle renewal. The expenditure on our own
carbon abatement projects and technology advancements follows
existing accounting policies on cost capitalisation, and research and
development costs.
Use of Paris-aligned accounting
Forecast commodity prices, including carbon prices, incorporated
into our Conviction scenario are used to inform critical accounting
estimates included as inputs to impairment testing, estimation of
remaining economic life for units of production depreciation, and
discounting closure and rehabilitation provisions. These prices
represent our best estimate of actual market outcomes based on the
range of future economic conditions regarding matters largely
outside our control, as required by IFRS. As the Conviction scenario
does not represent the Group’s view of the goals of the Paris
Agreement, our commodity price assumptions used in accounting
estimates are not consistent with the expectation of climate policies
required to accelerate the global transition to meet the goals of the
Paris Agreement.
Impairment
In our impairment review process, we consider the risks and
sensitivities associated with climate change.
In 2025, we recognised an impairment charge at Rio Tinto Iron and
Titanium Quebec Operations and QIT Madagascar Minerals due to
challenging market conditions. To illustrate the sensitivity of the
impairment outcome to the cost of carbon, the post-tax net present
value of the cash generating unit would be US$250 million lower if
the carbon tax per tonne was increased by 25 % from 2040 with all
other valuations input remaining the same (note 4).
The Gladstone alumina refineries are responsible for more than half
of our Scope 1 carbon dioxide emissions in Australia and therefore
have been a key focus as we evaluate options to decarbonise our
assets. In prior years, we recorded an impairment of the Yarwun
alumina refinery and of the Queensland Alumina Limited (QAL)
refinery and provided carbon cost sensitivities. We continue to
progress lower-emission power solutions for the Boyne smelter that
could extend its life to at least 2040.
Under the Aspirational Leadership scenario, which is not used in the
preparation of these financial statements, nor for budgeting
purposes, the economic performance of copper and aluminium is
expected to be stronger under supply and demand forward-pricing
curves, which we believe will be consistent with the Paris
Agreement. It is possible therefore, under certain conditions, that
historical impairments associated with copper and aluminium assets
could reverse.
In the Aspirational Leadership scenario, the prices for lower-grade
iron ore are lower in the medium term due to higher recycling and
lower value-in-use relative to high grade ores. In the longer term, we
assume the pricing for lower-grade iron ore to be weaker than in our
Conviction scenario and will depend on the development of low-
carbon steel technology, the pace of which is uncertain, but is
expected to be partially offset by higher prices for higher-grade iron
ore. As was the case in the prior year, this is very unlikely to give
rise to impairment triggers in the short to medium term, due to the
high returns on capital employed in the Pilbara and the slow
deployment of low-carbon steel technology.
Closure provisions
Closure dates and cost of closure are also sensitive to climate
assumptions, including precipitation rates, but no material changes
have been identified in the year specific to climate change that
would require a material revision to the provisions in 2025. For those
commodities with higher forward price curves under the Aspirational
Leadership scenario, it may be economical to mine lower mineral
grades, which could result in the conversion of additional Mineral
Resources to Ore Reserves and therefore longer dated closure.
Additional commentary on the impact of climate change on our
business is included in the following notes:
Annual Report on Form 20-F 2025 | 164 | riotinto.com |
2025 Financial statements
h. Climate change continued
Financial reporting considerations and sensitivities related to climate change | Page |
Carbon tax sensitivity on impairment charge (note 4) | 175 |
Operating expenditure spend on decarbonisation (note 7 - footnote (f)) | 180 |
Water rights - climate impact on indefinite life (note 12) | 186 |
Carbon abatement spend on procurement of carbon units and renewable energy certificates (note 12 - footnote (a)) | 187 |
Estimation of asset lives (note 13) | 188 |
Additions to property, plant and equipment with a primary purpose of reducing carbon emissions (note 13 - footnote (d)) | 190 |
Useful economic lives of power generating assets (note 13) | 191 |
Close-down, restoration and environmental cost (note 14) | 194 |
Renewable PPAs accounted for as derivatives (note 25 (iv)) | 206 |
Decarbonisation capital commitments (note 37) | 226 |
i.New standards issued and effective in the current year
Our financial statements have been prepared on the basis of accounting policies consistent with those applied in the financial statements for
the year ended 31 December 2024, except for the accounting requirements set out below, effective as at 1 January 2025.
Lack of Exchangeability (Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates”)
We adopted amendment to IAS 21 which requires an entity to apply a consistent approach in assessing whether a currency is exchangeable
into another currency and, when it is not, to determine the exchange rate to use. The amendment also requires disclosure of information that
helps the users to understand the nature and financial impact of the lack of exchangeability, as well as the methods and assumptions used in
estimating the exchange rate. The amendment does not have a material impact on the Group.
Annual Report on Form 20-F 2025 | 165 | riotinto.com |
2025 Financial statements | Consolidated primary statements
Consolidated income statement
Years ended 31 December
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Consolidated operations | ||||
Consolidated sales revenue | 1, 6 | |||
Net operating costs (excluding items disclosed separately) | 7 | ( | ( | ( |
Net impairment charges | 4 | ( | ( | ( |
Gains on consolidation and disposal of interests in businesses | 5 | |||
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects) | 8 | ( | ( | ( |
Operating profit | ||||
Share of profit after tax of equity accounted units | 33 | |||
Profit before finance items and taxation | ||||
Finance items | ||||
Net exchange (losses)/gains on external net debt and intragroup balances | ( | ( | ||
Gains/(losses) on derivatives not qualifying for hedge accounting | ( | ( | ||
Finance income | 9 | |||
Finance costs | 9 | ( | ( | ( |
Amortisation of discount on provisions | 14, 19 | ( | ( | ( |
( | ( | ( | ||
Profit before taxation | ||||
Taxation | 10 | ( | ( | ( |
Profit after tax for the year | ||||
– attributable to owners of Rio Tinto (net earnings) | ||||
– attributable to non-controlling interests | ( | |||
Basic earnings per share | 2 | |||
Diluted earnings per share | 2 |
The notes on pages 158 to 164 and pages 170 to 228 are an integral part of these consolidated financial statements.
Annual Report on Form 20-F 2025 | 166 | riotinto.com |
2025 Financial statements | Consolidated primary statements
Consolidated statement of comprehensive income
Years ended 31 December
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Profit after tax for the year | ||||
Other comprehensive income/(loss) | ||||
Items that will not be reclassified to the income statement: | ||||
Remeasurement gains/(losses) on pension and post-retirement healthcare plans | 29 | ( | ||
Changes in the fair value of equity investments held at fair value through other comprehensive income (FVOCI) | ( | ( | ||
Tax relating to these components of other comprehensive income | 10 | ( | ( | |
Share of other comprehensive gains/(losses) of equity accounted units, net of tax | ( | |||
( | ||||
Items that have been/may be subsequently reclassified to the income statement: | ||||
Currency translation adjustment(a) | ( | |||
Currency translation on operations disposed of, transferred to the income statement | ( | |||
Fair value movements: | ||||
– Cash flow hedge gains | ||||
– Cash flow hedge (gains)/losses transferred to the income statement | ( | ( | ||
Net change in costs of hedging reserve | 36 | |||
Tax relating to these components of other comprehensive income | 10 | ( | ||
Share of other comprehensive income/(loss) of equity accounted units, net of tax | ( | |||
( | ||||
Total other comprehensive income/(loss) for the year, net of tax | ( | |||
Total comprehensive income for the year | ||||
– attributable to owners of Rio Tinto | ||||
– attributable to non-controlling interests | ( | ( |
(a)Excludes a currency translation gain of US$238 million (2024: charge of US$317 million; 2023: gain of US$47 million) arising on Rio Tinto Limited’s share capital for the year ended 31
December 2025, which is recognised in the consolidated statement of changes in equity. Refer to the consolidated statement of changes in equity on page 169.
The notes on pages 158 to 164 and pages 170 to 228 are an integral part of these consolidated financial statements.
Annual Report on Form 20-F 2025 | 167 | riotinto.com |
2025 Financial statements | Consolidated primary statements
Consolidated cash flow statement
Years ended 31 December
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Cash flows from consolidated operations(a) | ||||
Dividends from equity accounted units | ||||
Cash flows from operations | ||||
Net interest paid | ( | ( | ( | |
Dividends paid to holders of non-controlling interests in subsidiaries | ( | ( | ( | |
Tax paid | ( | ( | ( | |
Net cash generated from operating activities | ||||
Cash flows from investing activities | ||||
Purchases of property, plant and equipment and intangible assets(b) | 1 | ( | ( | ( |
Sales of property, plant and equipment and intangible assets | ||||
Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired | 5 | ( | ( | ( |
Disposals of subsidiaries, joint ventures, joint operations and associates | 5 | |||
Purchases of financial assets | ( | ( | ( | |
Sales of financial assets(c) | ||||
Net funding of equity accounted units(b) | ( | ( | ( | |
Other investing cash flows | ( | ( | ||
Net cash used in investing activities | ( | ( | ( | |
Cash flows before financing activities | ( | |||
Cash flows from financing activities | ||||
Equity dividends paid to owners of Rio Tinto | 3 | ( | ( | ( |
Proceeds from additional borrowings, net of issue costs | 20, 21 | |||
Repayment of borrowings and associated derivatives | 20, 21 | ( | ( | ( |
Lease principal payments | 20, 22 | ( | ( | ( |
Proceeds from issue of equity to non-controlling interests(b) | ||||
Purchase of non-controlling interest | ( | ( | ||
Other financing cash flows | ( | |||
Net cash from/(used in) financing activities | ( | ( | ||
Effects of exchange rates on cash and cash equivalents | ( | ( | ||
Net increase/(decrease) in cash and cash equivalents | ( | |||
Opening cash and cash equivalents less overdrafts | ||||
Closing cash and cash equivalents less overdrafts | 23 |
(a) Cash flows from consolidated operations | Note | 2025 US$m | 2024 US$m | 2023 US$m |
Profit after tax for the year | ||||
Adjustments for: | ||||
– Taxation | ||||
– Finance items | ||||
– Share of profit after tax of equity accounted units | ( | ( | ( | |
– Gains on consolidation and disposal of interests in businesses | 5 | ( | ||
– Net impairment charges | 4 | |||
– Depreciation and amortisation | ||||
– Provisions (including exchange differences on provisions) | ||||
Utilisation of other provisions | 19 | ( | ( | ( |
Utilisation of provisions for close-down and restoration | 14 | ( | ( | ( |
Utilisation of provisions for post-retirement benefits and other employment costs | 27 | ( | ( | ( |
Change in inventories | ( | ( | ||
Change in receivables and other assets | ( | ( | ( | |
Change in trade and other payables | ( | |||
Other items(d) | ( | ( | ||
(b) | In 2025, our net cash outflow in relation to the Simandou iron ore project, excluding cash generated from operating activities, was US$ includes cash outflows of US$ the funding of shared infrastructure in the WCS Rail and Port Holding Entities (2024: US$ Port Holding Entities). We received related cash inflows of US$ million, of which US$ |
(c) | In 2025, we received net proceeds of US$ portfolio of fixed income instruments. Refer to note 20 for details. Purchases and sales of these securities are reported on a net cash flow basis within “Sales of financial assets” or “Purchases of financial assets” depending on the overall net position at each reporting date. |
(d) | In 2025, other items includes the recognition of realised gains of US$ US$ |
The notes on pages 158 to 164 and pages 170 to 228 are an integral part of these consolidated financial statements.
Annual Report on Form 20-F 2025 | 168 | riotinto.com |
2025 Financial statements | Consolidated primary statements
Consolidated balance sheet
At 31 December
Note | 2025 US$m | 2024 US$m | |
Non-current assets | |||
Goodwill | 11 | ||
Intangible assets | 12 | ||
Property, plant and equipment | 13 | ||
Investments in equity accounted units | 33 | ||
Inventories | 16 | ||
Deferred tax assets | 15 | ||
Receivables and other assets | 17 | ||
Other financial assets | 24 | ||
Current assets | |||
Inventories | 16 | ||
Receivables and other assets | 17 | ||
Tax recoverable | |||
Other financial assets | 24 | ||
Cash and cash equivalents | 23 | ||
Total assets | |||
Current liabilities | |||
Borrowings | 21 | ( | ( |
Leases | 22 | ( | ( |
Other financial liabilities | 24 | ( | ( |
Trade and other payables | 18 | ( | ( |
Tax payable | ( | ( | |
Close-down, restoration and environmental provisions | 14 | ( | ( |
Provisions for post-retirement benefits and other employment costs | 27 | ( | ( |
Other provisions | 19 | ( | ( |
( | ( | ||
Non-current liabilities | |||
Borrowings | 21 | ( | ( |
Leases | 22 | ( | ( |
Other financial liabilities | 24 | ( | ( |
Trade and other payables | 18 | ( | ( |
Tax payable | ( | ( | |
Deferred tax liabilities | 15 | ( | ( |
Close-down, restoration and environmental provisions | 14 | ( | ( |
Provisions for post-retirement benefits and other employment costs | 27 | ( | ( |
Other provisions | 19 | ( | ( |
( | ( | ||
Total liabilities | ( | ( | |
Net assets | |||
Capital and reserves | |||
Share capital | |||
– Rio Tinto plc | 35 | ||
– Rio Tinto Limited | 35 | ||
Share premium account | |||
Other reserves | 36 | ||
Retained earnings | 36 | ||
Equity attributable to owners of Rio Tinto | |||
Attributable to non-controlling interests | |||
Total equity |
The notes on pages 158 to 164 and pages 170 to 228 are an integral part of these consolidated financial statements.
The financial statements on pages 158 to 228 were approved by the Directors on 19 February 2026 and signed on their behalf by
| | | ||
Dominic Barton Chair | Simon Trott Chief Executive | Peter Cunningham Chief Financial Officer |
Annual Report on Form 20-F 2025 | 169 | riotinto.com |
2025 Financial statements | Consolidated primary statements
Consolidated statement of changes in equity
Years ended 31 December
Year ended 31 December 2025 | Attributable to owners of Rio Tinto | ||||||
Share capital (note 35) US$m | Share premium account US$m | Other reserves (note 36) US$m | Retained earnings (note 36) US$m | Total US$m | Non- controlling interests US$m | Total equity US$m | |
Opening balance | |||||||
Total comprehensive income for the year(a) | – | – | |||||
Currency translation arising on Rio Tinto Limited’s share capital | – | – | – | – | |||
Dividends (note 3) | – | – | – | ( | ( | ( | ( |
Newly consolidated operations (note 5) | – | – | – | – | – | ||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees(b) | – | – | ( | ( | ( | – | ( |
Change in equity interest held by Rio Tinto | – | – | – | ( | ( | ( | |
Treasury shares reissued and other movements | – | – | – | – | |||
Equity issued to holders of non-controlling interests(c) | – | – | – | – | – | ||
Employee share awards charged to the income statement | – | – | – | ||||
Closing balance | |||||||
Year ended 31 December 2024 | Attributable to owners of Rio Tinto | ||||||
Share capital (note 35) US$m | Share premium account US$m | Other reserves (note 36) US$m | Retained earnings (note 36) US$m | Total US$m | Non- controlling interests US$m | Total equity US$m | |
Opening balance | |||||||
Total comprehensive income for the year(a) | – | – | ( | ( | |||
Currency translation arising on Rio Tinto Limited’s share capital | ( | – | – | – | ( | – | ( |
Dividends (note 3) | – | – | – | ( | ( | ( | ( |
Newly consolidated operations (note 5) | – | – | – | – | – | ||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees(b) | – | – | ( | ( | ( | – | ( |
Change in equity interest held by Rio Tinto | – | – | – | ( | ( | ( | |
Treasury shares reissued and other movements | – | – | – | – | |||
Equity issued to holders of non-controlling interests(c) | – | – | – | – | – | ||
Employee share awards charged to the income statement | – | – | – | ||||
Closing balance | |||||||
Year ended 31 December 2023 | Attributable to owners of Rio Tinto | ||||||
Share capital (note 35) US$m | Share premium account US$m | Other reserves (note 36) US$m | Retained earnings (note 36) US$m | Total US$m | Non- controlling interests US$m | Total equity US$m | |
Opening balance | |||||||
Total comprehensive income for the year(a) | – | – | ( | ||||
Currency translation arising on Rio Tinto Limited's share capital | – | – | – | – | |||
Dividends (note 3) | – | – | – | ( | ( | ( | ( |
Newly consolidated operations | – | – | – | – | – | ||
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees(b) | – | – | ( | ( | ( | – | ( |
Change in equity interest held by Rio Tinto | – | – | – | ( | ( | ||
Treasury shares reissued and other movements | – | – | – | – | |||
Equity issued to holders of non-controlling interests | – | – | – | – | – | ||
Employee share awards charged to the income statement | – | – | – | ||||
Closing balance | |||||||
(a)Refer to the consolidated statement of comprehensive income for further details. Adjustments to other reserves include currency translation attributable to owners of Rio Tinto, other than
that arising on Rio Tinto Limited’s share capital.
(b)Net of contributions received from employees for share awards.
The notes on pages 158 to 164 and pages 170 to 228 are an integral part of these consolidated financial statements.
Annual Report on Form 20-F 2025 | 170 | riotinto.com |
2025 Financial statements
Notes to the consolidated financial statements
Our financial performance
We use a number of measures, including segmental revenue, underlying EBITDA, and capital expenditure to provide us with a greater
understanding of our operations’ underlying business performance, including revenue generation, productivity and cost management, on a
comparable basis between reporting years.
1 Financial performance by segment
leaders, together with global support functions leaders, make up the Executive Committee. The Executive Committee members each report directly
to our Chief Executive who is the chief operating decision maker (CODM) and is responsible for allocating resources and assessing performance of
the operating segments. The CODM’s primary measure of performance is underlying EBITDA (as defined on page 171).
Our reportable segments are as follows.
Reportable segment | Principal activities |
Aluminium & Lithium | Bauxite mining; alumina refining; aluminium smelting and recycling; mining and processing of lithium. |
Copper | Mining and refining of copper, gold, silver, molybdenum, other by-products and exploration activities. |
Iron Ore | Iron ore mining and salt and gypsum production in Western Australia; iron concentrate and pellets from the Iron Ore Company of Canada. |
The Group’s reportable segments have been updated to reflect the organisational restructure announced on 27 August 2025 which simplified
our product group structure to 3 businesses: Aluminium & Lithium, Copper and Iron Ore. The unified Iron Ore portfolio integrates Rio Tinto’s
Western Australian Iron Ore operations with the Iron Ore Company of Canada and will include the Simandou project in Guinea upon its
completion. Management responsibility during the build phase of the Simandou iron ore project remains under the Chief Safety & Technical
Officer. While this sits outside of reportable segments until completion of the project, we continue to show this separately due to the
significance of funding and spend on the project. Accordingly comparative information has been restated.
During the year, we acquired Arcadium Lithium plc, and its results are included in the new Aluminium & Lithium reportable segment from 6
March 2025. Rio Tinto’s Lithium business, comprising Arcadium and Rincon (previously included within the Minerals product group), has
been combined with the previous Aluminium product group to form the Aluminium & Lithium product group.
The Borates and Iron & Titanium businesses were placed under strategic review during the year and have moved to the Chief Commercial
Officer's portfolio. Along with Diamonds, which is pending mine closure, these businesses are now presented below reportable segments, as
part of “Other Operations”.
Segmental revenue US$m | Underlying EBITDA US$m | Capital expenditure(b) US$m | |||||||
2025 | 2024 Restated(a) | 2023 Restated(a) | 2025 | 2024 Restated(a) | 2023 Restated(a) | 2025 | 2024 Restated(a) | 2023 Restated(a) | |
Aluminium & Lithium | |||||||||
Copper | |||||||||
Iron Ore | |||||||||
Reportable segments total | |||||||||
Simandou iron ore project | ( | ( | ( | ||||||
Other operations | |||||||||
Inter-segment transactions | ( | ( | ( | ||||||
Share of equity accounted units(c) | ( | ( | ( | ||||||
Central pension costs, share-based payments, insurance and derivatives | ( | ||||||||
Restructuring, project and one-off costs | ( | ( | ( | ||||||
Central costs | ( | ( | ( | ||||||
Central exploration and evaluation expenditures | ( | ( | ( | ||||||
Proceeds from disposal of property, plant and equipment | |||||||||
Other items | |||||||||
Consolidated sales revenue | |||||||||
Purchases of property, plant and equipment and intangible assets | |||||||||
Underlying EBITDA(d) | |||||||||
(a) | During the year, we simplified our product group structure to 3 product groups: Iron Ore, Aluminium & Lithium and Copper. Accordingly, prior year amounts have been restated for comparability. |
(b) | Capital expenditure for reportable segments includes the net cash outflow on purchases less disposals of property, plant and equipment, capitalised evaluation costs and purchases less disposals of other intangible assets. The details provided include |
(c) | Consolidated sales revenue includes subsidiary sales of US$ revenue. Segmental revenue includes the Group’s proportionate share of product sales by equity accounted units (after adjusting for sales to subsidiaries) of US$ (2024: US$ |
(d) | Pre-tax and pre-divestment expenditure on exploration and evaluation charged to the profit and loss account in 2025 was US$ excluding Simandou). Approximately and capitalised since 1 July 2024. |
Annual Report on Form 20-F 2025 | 171 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
1 Financial performance by segment continued
Segmental revenue includes consolidated sales revenue plus the equivalent sales revenue of equity accounted units (EAUs) in proportion to
our equity interest (after adjusting for sales to/from subsidiaries).
Segmental revenue measures revenue on a basis that is comparable to our underlying EBITDA metric.
Other segmental reporting
For further information relating to Revenue by destination and product and Non-operating assets by geography, refer to note 6 on page 180
and Our operating assets section on page 184, respectively.
Underlying EBITDA represents profit before taxation, net finance items, depreciation and amortisation adjusted to exclude the EBITDA
impact of items which do not reflect the underlying performance of our reportable segments.
Other relevant judgements | Exclusions from underlying EBITDA |
Items excluded from profit after tax 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 the underlying business performance. The following items are excluded from profit after tax in arriving at underlying EBITDA in each year irrespective of materiality: •all depreciation and amortisation in subsidiaries and the corresponding share of profit in EAUs •all taxation and finance items in subsidiaries and the corresponding share of profit in EAUs •unrealised gains and losses on embedded derivatives not qualifying for hedge accounting (including foreign exchange) •net gains and losses on consolidation or disposal of interests in businesses •impairment charges net of reversals including corresponding amounts in share of profit in EAUs •the underlying EBITDA of discontinued operations •adjustments to closure provisions where the adjustment is associated with an impairment charge and for legacy sites where the disturbance or environmental contamination relates to the pre-acquisition period. In addition, there is a final judgemental category which includes, where applicable, other credits and charges that, individually or in aggregate if of a similar type, are of a nature or size to require exclusion in order to provide additional insight into underlying business performance. In 2025 and 2024, there were no items in this category. In 2023, this included all re-estimates of the closure provisions for fully impaired sites identified in the second half of the year due to the materiality of the adjustment in aggregate. | |
2025 US$m | 2024 US$m | 2023 US$m | |
Profit after tax for the year | |||
Taxation | |||
Profit before taxation | |||
Depreciation and amortisation in subsidiaries, excluding capitalised depreciation(a) | |||
Depreciation and amortisation in equity accounted units | |||
Finance items in subsidiaries | |||
Taxation and finance items in equity accounted units | |||
Unrealised (gains)/losses on embedded commodity and currency derivatives not qualifying for hedge accounting (including foreign exchange) | ( | ( | |
Gains on consolidation and disposal of interests in businesses(b) | ( | ||
Impairment charges net of reversals (note 4) | |||
Change in closure estimates (non-operating and fully impaired sites)(c) | |||
Underlying EBITDA |
(a)Depreciation and amortisation in subsidiaries for the year ended 31 December is net of capitalised depreciation of US$306 million (2024: US$174 million; 2023: US$358 million).
(b)In 2024, gains on consolidation of businesses include the revaluation of our previously held interest in the NZAS joint operation as we acquired the remaining shares during the year and
this became a subsidiary. Disposals include the sale of Wyoming Uranium and Lake MacLeod, as described in note 5.
(c)In 2025, the change in closure estimate charge includes US$233 million related to the Yarwun alumina refinery, due to an acceleration of its forecast closure date as studies had not
identified an economically viable solution for the construction of a second tailings storage facility. This qualified under our accounting policy for exclusion from underlying earnings as it
also resulted in an impairment charge during the year (refer to note 4 for further details). In 2024, the charge to the income statement related to the change in estimates of underlying
closure cash flows, net of the impact of a change in discount rate, expressed in real-terms, from 2.0 % to 2.5 % as applied to provisions for close-down, restoration and environmental
liabilities at legacy sites where the environmental damage preceded ownership by Rio Tinto. In 2023, the charge includes US$873 million related to the closure provision update
announced by Energy Resources of Australia (ERA) on 12 December 2023, together with the update included in their half year results for the period ended 30 June 2023, published in
August 2023. This update was considered material and therefore it was aggregated with other closure study updates which were similar in nature and have been excluded from
underlying EBITDA.
Annual Report on Form 20-F 2025 | 172 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
2 Earnings per ordinary share
2025 | 2024 | 2023 | |
Net earnings attributable to owners of Rio Tinto (US$ million) | |||
Weighted average number of shares (millions)(a) | |||
Basic earnings per ordinary share (cents) |
Diluted earnings per share
For the purposes of calculating diluted earnings per share, the effect of dilutive securities of 14.0 million shares in 2025 (2024: 10.3 million;
2023: 10.1 million) is added to the weighted average number of shares described in footnote (a) below. This effect is calculated under the
treasury stock method, in accordance with IAS 33 “Earnings per Share”. Our only potential dilutive ordinary shares are share awards for
which terms and conditions are described in note 28.
2025 | 2024 | 2023 | |
Net earnings attributable to owners of Rio Tinto (US$ million) | |||
Weighted average number of shares (millions)(a) | |||
Diluted earnings per share attributable to ordinary shareholders of Rio Tinto (cents) |
(a)The weighted average number of shares is calculated as the average number of Rio Tinto plc shares outstanding not held as treasury shares of 1,253.0 million (2024: 1,252.1 million;
2023: 1,250.5 million) plus the average number of Rio Tinto Limited shares outstanding of 371.0 million (2024: 371.0 million; 2023: 370.9 million) over the relevant period. There were no
cross holdings of shares between Rio Tinto Limited and Rio Tinto plc at 31 December 2025 (2024: nil ; 2023: nil ).
3 Dividends
Our Directors have announced a final dividend of 254.0 cents per share on 19 February 2026. This is expected to result in payments of
US$4,125 million. The dividend will be paid on 16 April 2026 to Rio Tinto plc and Rio Tinto Limited shareholders on the register at the close of
business on 6 March 2026. Dividends per share announced for the year ended 31 December are as follows.
2025 US cents | 2024 US cents | 2023 US cents | |
Ordinary dividends per share: announced with the results for the year |
2025 US cents | 2024 US cents | 2023 US cents | |
Previous year final - paid during the year | |||
Interim - paid during the year | |||
Total paid during the year |
The franking credits available to the Group as at 31 December 2025, after allowing for Australian tax payable in respect of the current and
prior reporting period’s profit, are estimated to be US$10,297 million (2024: US$9,177 million; 2023: US$8,734 million).
The proposed Rio Tinto Limited dividend will be fully franked based on a tax rate of 30
US$405 million.
2025 US$m | 2024 US$m | 2023 US$m | |
Rio Tinto plc previous year final dividend payable | |||
Rio Tinto plc interim dividend payable | |||
Rio Tinto Limited previous year final dividend payable | |||
Rio Tinto Limited interim dividend payable | |||
Dividends payable during the year | |||
Net movement of unclaimed dividends in the year | |||
Dividends paid during the year |
Annual Report on Form 20-F 2025 | 173 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
4 Impairment charges net of reversals
Impairment charges and reversals are assessed at the level of cash-generating units (CGUs) which, in accordance with IAS 36 “Impairment
of Assets”, are identified as the smallest identifiable asset or group of assets that generate cash inflows, which are largely independent of the
cash inflows from other assets. Separate CGUs are identified where an active market exists for intermediate products, even if the majority of
those products are further processed internally. In some cases, individual business units consist of several operations with independent
cash-generating streams which constitute separate CGUs.
Goodwill acquired through business combinations is allocated to the CGU or groups of CGUs that are expected to benefit from the related
business combination, and tested for impairment at the lowest level within the Group at which goodwill is monitored for internal management
purposes.
Other relevant judgements | Determination of CGUs |
Judgement is applied to identify the Group’s CGUs, particularly when assets belong to integrated operations, and changes in CGUs could impact impairment charges and reversals. The most relevant judgement for grouping continues to relate to the grouping of Rio Tinto Iron and Titanium Quebec Operations and QIT Madagascar Minerals (QMM) as a single CGU on the basis that they are vertically integrated operations and there is no active market for QMM’s ilmenite. The most relevant judgement for disaggregation continues to relate to our bauxite and alumina refining operations in Australia, whereby we treat the Weipa bauxite mine as a separate CGU from the downstream assets at Gladstone. Currently, Weipa sells the majority of its bauxite to third-party customers, whereas the alumina refineries are supplied with all of their bauxite internally. | |
Property, plant and equipment, including right-of-use assets and intangible assets with finite lives, are reviewed for impairment annually or
more frequently if there is an indication that the carrying amount may not be recoverable. This review starts with an appraisal of the perimeter
of cash-generating units to consider changes in the business or strategic direction. Following this, an assessment of internal and external
indicators is performed. Internal sources of information considered include assessment of the financial performance of the CGU and changes
in mine plans. External sources of information include changes in forecast commodity prices, costs and other market factors.
Non-current assets (excluding goodwill) that have suffered impairment are reviewed using the same basis for valuation as explained below
whenever events or changes in circumstances indicate that the impairment loss may no longer exist, or may have decreased. If appropriate,
an impairment reversal will be recognised. The carrying amount of the CGU after reversal must be the lower of (a) the recoverable amount,
as calculated above, and (b) the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment
loss been recognised for the CGU in prior periods.
Key judgement | Indicators of impairment and impairment reversals |
Our mining operations require large upfront investment with long periods of construction and management of geotechnical stability risks from large-scale excavation of open pits or underground tunnelling. During operation and towards the end of mine life, the economic performance of assets is subject to greater influence by short-term market dynamics, which can impact the economic feasibility of operations and life extension options. Together these represent our most significant sources of uncertainty relating to the identification of indicators of impairment and impairment reversal. The underground expansion of our Oyu Tolgoi copper and gold mine in Mongolia is closely monitored for indicators of impairment and impairment reversal, as it was previously impaired, meaning that carrying value and fair value were equal at that date. During 2025, development of infrastructure to support the underground mine was completed, however the production ramp up still requires several years of construction. The complexity and inherent uncertainty of ramping up block caving means we have not identified an indicator for impairment reversal. | |
Where indication of impairment or impairment reversal exists, an impairment review is undertaken. The recoverable amount is assessed by
reference to the higher of value in use (being the net present value of expected future cash flows of the relevant CGU in its current condition)
and fair value less costs of disposal (FVLCD). When the recoverable amount of the CGU is measured by reference to FVLCD, this amount is
further classified in accordance with the fair value hierarchy for observable market data that is consistent with the unit of account for the CGU
being tested. FVLCD is based on the best information available to reflect the amount the Group could receive for the CGU in an orderly
transaction between market participants at the measurement date. This is often estimated using discounted cash flow techniques and is
classified as level 3 in the fair value hierarchy. The resulting estimates are based on detailed life-of-mine and long-term production plans;
these may include anticipated expansions which are at the evaluation stage of study. This differs from value in use which requires future cash
flows to be estimated for the asset in its current condition and therefore does not include future cash flows associated with improving or
enhancing an asset’s performance. Anticipated enhancements to assets may be included in FVLCD calculations and, therefore, generally
result in a higher value.
Annual Report on Form 20-F 2025 | 174 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
4 Impairment charges net of reversals continued
Where the recoverable amount of a CGU is dependent on the life of its associated orebody, expected future cash flows reflect the current
life-of-mine and long-term production plans; these are based on detailed research, analysis and iterative modelling to optimise the level of
return from investment, output and sequence of extraction. The mine plan takes account of all relevant characteristics of the orebody,
including waste-to-ore ratios, ore grades, haul distances, chemical and metallurgical properties of the ore impacting process recoveries, and
capacities of processing equipment that can be used. The life-of-mine plan and long-term production plans are, therefore, the basis for
forecasting production output and production costs in each future year.
Forecast cash flows for Ore Reserve estimation for JORC purposes are generally based on Rio Tinto’s commodity price forecasts, which
assume short-term market prices will revert to the Group’s assessment of the long-term price, generally over a period of 3 to 5 years. For
most commodities, these forecast commodity prices are derived from a combination of analyses of the marginal costs of the producers and
the incentive price of these commodities. These assessments often differ from current price levels and are updated periodically. The Group
does not believe that published medium- and long-term forward prices necessarily provide a good indication of future levels because they
tend to be strongly influenced by spot prices. The price forecasts used for Ore Reserve estimation are generally consistent with those used
for impairment testing, unless management deems that in certain economic environments a market participant would not assume Rio Tinto’s
view on prices. In which case, in preparing FVLCD impairment calculations, management estimates the assumptions that a market
participant would be expected to use.
Forecast future cash flows of a CGU take into account the sales prices under existing sales contracts, where appropriate.
The discount rates applied to the future cash flow forecasts represent an estimate of the rate the market participant would apply having
regard to the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted. The
Group’s weighted average cost of capital is generally used as a starting point for determining the discount rates, with appropriate
adjustments for the risk profile of the countries in which the individual CGUs operate. For final feasibility studies and Ore Reserve estimation,
internal hurdle rates, which are generally higher than the Group’s weighted average cost of capital, are used. For developments funded with
project finance, the debt component of the weighted average cost of capital may be calculated by reference to the specific interest rate of the
project finance and anticipated leverage of the project.
For operations with a functional currency other than the US dollar, the impairment review is undertaken in the relevant functional currency. In
estimating FVLCD, internal forecasts of exchange rates take into account spot exchange rates, historical data and external forecasts, and
are kept constant in real terms after 5 years. The great majority of the Group’s sales are based on prices denominated in US dollars. To the
extent that the currencies of countries in which the Group produces commodities strengthen against the US dollar without an increase in
commodity prices, cash flows and, therefore, net present values, are reduced. Management considers that, over the long term, there is a
tendency for movements in commodity prices to compensate to some extent for movements in the value of the US dollar, particularly against
the Australian dollar and Canadian dollar, and vice versa. However, such compensating changes are not synchronised and do not fully offset
each other. In estimating value in use, the present value of future cash flows in foreign currencies is translated at the spot exchange rate on
the testing date.
Generally, discounted cash flow models are used to determine the recoverable amount of CGUs. In this case, significant judgement is
required to determine the appropriate estimates and assumptions used, and there is significant estimation uncertainty. In particular, for fair
value less costs of disposal valuations, judgement is required to determine the estimates a market participant would use. The discounted
cash flow models are most sensitive to the following estimates: the timing of project expansions; the cost to complete assets under
construction; long-term commodity prices; production timing and recovery rates; exchange rates; operating costs; reserve and resource
estimates; closure costs; discount rates; allocation of long-term contract revenues between CGUs; and, in some instances, the renewal of
mining licences. Some of these variables are unique to an individual CGU. Future changes in these variables may differ from management’s
expectations and may materially alter the recoverable amounts of the CGUs.
Annual Report on Form 20-F 2025 | 175 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
4 Impairment charges net of reversals continued
2025 | 2024 | 2023 | |||||
Note | Pre-tax amount US$m | Taxation US$m | Non- controlling interests US$m | Net amount US$m | Pre-tax amount US$m | Pre-tax amount US$m | |
Other operations - RTITQO | ( | ( | |||||
Aluminium & Lithium - Alumina refineries | ( | ( | ( | ( | |||
Aluminium & Lithium - Tiwai Point | |||||||
Aluminium & Lithium - MRN | ( | ||||||
Other operations - Diavik | ( | ||||||
Other operations - Simandou | |||||||
Net impairment charges | ( | ( | ( | ( | |||
Allocated as: | |||||||
Intangible assets | 12 | ||||||
Property, plant and equipment | 13 | ( | ( | ( | |||
Share of profit after tax in EAUs | ( | ||||||
Net impairment charges | ( | ( | ( | ||||
Comprising: | |||||||
Impairment charges of consolidated balances | ( | ( | ( | ||||
Impairment charges related to EAUs (pre-tax) | ( | ||||||
Net impairment charges | ( | ( | ( | ||||
Taxation (including related to EAUs) | |||||||
Non-controlling interests | ( | ||||||
Net impairment charges in the income statement | ( | ( | ( | ||||
We progressed a business transformation at RTITQO during the period in response to challenging market conditions for our products
at the Sorel site, including TiO2 and metallics. This transformation, which includes the adjustment of the business footprint to projected
demand, is underway and is expected to take up to 24 months to complete its core components. During the 6 months ended 30 June 2025,
we identified these conditions as an impairment trigger and have therefore performed an impairment test for the cash-generating unit which
comprises the mines and processing facilities at RTITQO (in Canada) and QMM (in Madagascar).
We expect the transformation program to result in significant improvements in operating costs, including opportunities to reduce carbon emissions
and therefore carbon costs. However, for the purposes of this test, a risk adjustment has been applied to reduce the forecast cash flows to reflect a
market participant perspective that the value of the projected initiatives may not fully deliver the expected benefit.
Using a fair value less cost of disposal methodology and discounting real-terms post-tax cash flows at an effective rate of 7.6 % we have
determined the recoverable amount to be US$1,780 million. This has resulted in a pre-tax impairment charge of US$122 million (post-tax
US$86 million) and has been allocated to property, plant and equipment in Canada.
During the second half of 2025, market conditions remained challenging, albeit within the parameters assumed for the impairment test at 30
June 2025 and therefore no subsequent impairment trigger was identified.
Impact of climate change on our business | Carbon tax sensitivity on RTITQO impairment charge |
To further illustrate the sensitivity of the impairment outcome to the cost of carbon, which we consider the most judgmental input, the post- tax net present value of the cash-generating unit would be US$ 2040 with all other valuation inputs remaining unchanged. To mitigate this risk, management has identified programs which we expect to reduce the carbon emissions of these operations and therefore reduce the forecast carbon cost to the RTITQO business. | |
On 18 November 2025, we announced that our capital studies for a second tailings facility at Yarwun had not identified an economically
viable solution in the current market conditions. At current production rates, the existing tailings storage facility was expected to reach
capacity by 2031 and therefore we will curtail production of alumina by 40 % from October 2026 to allow another 4 years to explore and
develop technical solutions that could extend the refinery’s life. These circumstances have been identified as an indicator of impairment and
therefore we have assessed the recoverability of the carrying value of the cash-generating unit.
Using a fair value less cost of disposal methodology and discounting real-terms post-tax cash flows at an effective rate of 6.6 %, we have recognised
a pre-tax impairment charge of US$219 million (post-tax US$155 million). This represents a full impairment of the property, plant and equipment at
the Yarwun alumina refinery, being the capital invested since the previous impairment in 2023, see below.
Annual Report on Form 20-F 2025 | 176 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
4 Impairment charges net of reversals continued
2024 and 2023
Copper - Rio Tinto Kennecott, US
In 2024, further studies on the geotechnical risks relating to a zone of pit wall geotechnical instability were completed, indicating the need to
change our mine plan to stabilise pit wall movement and mitigate the risk of a significant geotechnical failure. This was expected to restrict
ore deliveries from the primary ore face in 2025 and 2026, with the new information representing a material deviation from the previous mine
plan and was therefore identified as an impairment indicator. An impairment test was performed using a fair value less cost of disposal
methodology, based on our Conviction price series, with real-terms post-tax cash flows discounted over the expected life of mine at 6.3 %. The
calculated recoverable amount exceeded the US$2.2 billion carrying value of the CGU by US$0.5 billion and, therefore, no impairment charge was
recorded.
Aluminium & Lithium - Alumina refineries, Australia
In 2023, we recognised a pre-tax impairment charge of US$1,175 million (post-tax US$828 million). This represented a full impairment of the
property, plant and equipment at the Yarwun alumina refinery (US$948 million) and an impairment of US$227 million for the property, plant
and equipment of QAL.
In 2024, we further recognised a pre-tax impairment charge of US$461 million (post-tax US$503 million). This charge was all allocated
against the property, plant and equipment of QAL leaving them with a residual carrying value of US$151 million. The post-tax impairment
charge also included a consequential adjustment to deferred tax asset recognition within the same tax group.
Other operations - Simandou, Guinea
The Simandou project in Guinea was fully impaired in 2015 as uncertainty over infrastructure ownership and funding had resulted in further
spend on exploration and evaluation being neither budgeted nor planned. In 2023, following the conclusion of key agreements on the
development of the Simandou project, we recognised a pre-tax impairment reversal of US$239 million, which was allocated as
US$231 million to intangible assets (exploration and evaluation) and US$8 million to property, plant and equipment. A deferred tax asset of
US$152 million was recorded to account for the difference between the asset values included in the Group accounts and the carrying value
of in-country depreciable assets. All spend on the Simandou project between the impairment in 2015 and 30 September 2023 was expensed
as incurred. From 1 October 2023, qualifying spend has been capitalised.
5 Acquisitions and disposals
Recognition and measurement
In determining whether a particular set of activities is a business, an acquired arrangement has to have an input and substantive process,
which together significantly contribute to the ability to create outputs. Where an acquisition does not meet the definition of a business as
defined by IFRS 3 “Business Combinations”, each asset is recognised on the balance sheet at fair value. In the consolidated cash flow
statement we assess, based on the substance of the transaction, whether to allocate the cash consideration for these transactions either to
“Purchases of property, plant and equipment, and intangible assets” or to “Acquisitions of subsidiaries, joint ventures and associates”,
depending on the type of assets purchased.
For undeveloped mining projects that have arisen through acquisition, the allocation of the purchase price consideration may result in
undeveloped properties being recognised at an earlier stage of project evaluation compared with projects arising from the Group’s
exploration and evaluation program. Subsequent expenditure on acquired undeveloped projects is only capitalised if it meets the high degree
of confidence threshold discussed in note 12.
Where we increase our ownership interest in a subsidiary, the difference between the purchase price and the carrying value of the share of
net assets acquired is recorded in equity. The cash cost of such purchases is included within “financing activities” in the cash flow statement.
2025
Acquisition of Arcadium Lithium
On 9 October 2024, Rio Tinto and Arcadium Lithium plc (Arcadium Lithium) announced a definitive agreement under which Rio Tinto would
acquire 100 % of Arcadium Lithium in an all-cash transaction for $5.85 per share (the “transaction”). On 6 March 2025, the transaction was
completed following the sanctioning of the Scheme of Arrangement by the Royal Court of Jersey and receipt of final regulatory approvals. On
completion, the acquisition established Rio Tinto as a leader in supplying energy transition materials, with one of the world's largest lithium
resource bases.
The transaction has been accounted for as business combination under IFRS 3 “Business Combinations” using the acquisition method
of accounting.
For the 10 months post-acquisition, Arcadium Lithium contributed US$944 million of revenue and US$94 million (loss) to profit before tax,
inclusive of a US$147 million amortisation charge for favourably priced customer contracts. Had the acquisition taken place at the beginning
of the 2025 financial year, the revenue and profit before tax would not be materially different to a proportionate increment of an additional 2
months.
Annual Report on Form 20-F 2025 | 177 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
5 Acquisitions and disposals continued
Acquisitions (continued)
During the year, we finalised the analysis to allocate the purchase price to the fair value of acquired assets and liabilities, which were
provisionally reported at 30 June 2025. The following table summarises the final purchase price allocation for the Arcadium transaction:
Fair value of identifiable assets acquired and liabilities assumed | Final fair value at 6 March 2025 US$m |
Intangible assets | |
Property, plant and equipment | |
Cash and cash equivalents | |
Borrowings(a) | ( |
Close-down, restoration and environmental provisions | ( |
Other provisions | ( |
Other assets and liabilities | |
Deferred tax liabilities (net of deferred tax assets) | ( |
Net assets | |
Non-controlling interests (NCI)(b) | ( |
Goodwill (refer note 11) | |
Net attributable assets (including Goodwill) |
(a)Borrowings includes a US$200 million loan advanced by Rio Tinto to Arcadium Lithium in January 2025, prior to the transaction completing.
(b)NCI relates to the Olaroz lithium carbonate mine in Argentina and the Nemaska Lithium development project in Canada, of which Arcadium Lithium holds interests of 66.5 % and 50 %,
respectively. It has been valued at the pro rata share of the net identifiable assets.
Presentation in cash flow statement | 2025 US$m |
Cash payment in consideration of equity to shareholders of Arcadium Lithium plc | |
less: cash and cash equivalents balance acquired | ( |
Acquisitions of subsidiaries, joint ventures and associates, net of cash acquired |
Total cash paid on 6 March 2025 was US$6,701 million, including US$6,301 million paid in consideration of equity to the shareholders of
Arcadium Lithium plc and US$400 million paid to holders of convertible loan notes. As a result of the acquisition, the Group's net debt
increased by US$7,607 million. This comprises US$7,407 million change in net debt on acquisition plus US$200 million advanced to
Arcadium Lithium prior to acquisition.
Impact of the acquisition on net debt | 2025 US$m |
Borrowings of Arcadium Lithium | |
less: convertible loan notes settled on change of control | ( |
less: cash and cash equivalents acquired | ( |
less: loan advanced to Arcadium prior to acquisition | ( |
Acquired net debt | |
Cash payment in consideration of equity to shareholders of Arcadium Lithium plc | |
Cash payment to settle convertible loan notes | |
Change in net debt on acquisition |
Transaction costs of US$77 million have been expensed and are included in operating expenses in the statement of profit or loss and are
part of operating cash flows in the statement of cash flows.
Key judgement | Purchase price allocation from business combination |
The allocation of the US$ judgement as the majority of the acquired business value is dependent on the development of mines and processing facilities and the profitable extraction and sale of lithium products. The fair value of assets acquired has been determined based on discounted forecast future cash-flows, adjusted for a country risk premium depending on the location of the assets. At 6 March 2025, this resulted in a weighted post-tax real-terms discount rate of The forecast future cash flows have been estimated using a long-run lithium carbonate price towards the upper end of a consensus range outlook at 6 March 2025, applied to projected production and cost data from reserves and resource life of mine plan modelling. Alternative inputs to the discounted cash flow models would have resulted in a different weighting of the purchase price allocation principally between intangible assets, property, plant and equipment and, consequently, deferred tax liabilities and goodwill. | |
Annual Report on Form 20-F 2025 | 178 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
5 Acquisitions and disposals continued
Acquisitions (continued)
Proposed acquisition of Salar de Maricunga SpA
On 19 May 2025, Rio Tinto and Corporación Nacional Del Cobre de
Chile (Codelco) signed binding agreements to form a joint venture to
develop and operate a high-grade lithium project in the Salar de
Maricunga SpA (the “Company”) in Chile.
Under the agreement, Rio Tinto will acquire a 49.99 % interest in Salar
de Maricunga SpA, through which Codelco (with its 50.01 % interest)
holds its licences and mining concessions in the Salar de Maricunga.
Rio Tinto will initially fund US$350 million towards additional studies and
resource analysis to progress the project through to a final investment
decision. A further US$500 million will be invested once a decision is made
to proceed with the project, towards construction costs, and an additional
US$50 million if the joint venture achieves its aim of delivering first lithium
by the end of 2030. The partners will fund further capital requirements in
line with their share of ownership of the joint venture.
The transaction is expected to close in the first half of 2026, subject to
receipt of all applicable regulatory approvals and the satisfaction of other
customary closing conditions.
2024 and 2023
Boyne Smelters Limited (BSL)
In 2024, we increased our total interest in BSL, which owns and
operates the Boyne Island aluminium smelter in Gladstone Australia,
to 73.5 % following our acquisition of Mitsubishi Corporation’s 11.65 %
interest in BSL, and Sumitomo Chemical Company Limited’s (SCC)
New Zealand Aluminium Smelters Limited (NZAS)
In 2024, NZAS, which owns and operates the Tiwai Point aluminium
smelter in New Zealand, become a wholly owned subsidiary after we
acquired SCC’s 20.64 % interest in NZAS. A gain of US$638 million
(post-tax US$467 million) was recorded within “Gains/(losses) on
consolidation and disposal of interests in businesses” in the
consolidated income statement. This also resulted in an increase to
the carrying value of property, plant and equipment of
US$650 million and deferred tax liabilities of US$171 million.
WCS Rail and Port Holding Entities
In 2024, we acquired a 34 % equity interest in Winning Consortium
Simandou Railway Pte. Ltd and Winning Consortium Simandou Ports
Pte. Ltd (together referred to as “WCS Rail and Port Holding Entities”),
through our partially owned subsidiary SimFer Jersey, for
US$313 million. The Rio Tinto share of this consideration was
US$166 million and US$147 million was funded by Chalco Iron Ore
Holdings Ltd (CIOH). Further shareholder loan funding to the WCS Rail
and Port Holding Entities was also made directly by Rio Tinto and CIOH,
in proportion to their respective 53 % and 47 % ownership interest of
SimFer Jersey, to these equity accounted units.
Matalco
In 2023, Rio Tinto and Giampaolo Group completed a transaction to
form the Matalco joint venture. We acquired a 50 % equity interest in
Matalco Canada Inc. which owns one Canadian aluminium recycling
facility, and a 50 % equity interest in Matalco USA LLC which owns 6
aluminium recycling facilities in the US, for combined consideration
of US$738 million, inclusive of accrued transaction costs and
working capital adjustments.
Recognition and measurement
If a group of assets and liabilities (disposal group) is sold, the
carrying value of the disposal group is de-recognised with the
difference between the carrying amount and the consideration
received recognised in the income statement. Certain amounts
previously recognised in other comprehensive income in respect of
the entity disposed of may be recycled to the income statement. The
cash proceeds of disposals are included within “Investing activities”
in the cash flow statement.
2025
Divestment of 30 % of Winu copper-gold project
On 8 May 2025, Rio Tinto entered into a binding joint venture
agreement with Sumitomo Metal Mining Co (SMM) to deliver the
Winu copper-gold project (Winu), located in the Great Sandy Desert
region of Western Australia. Under the agreements, Rio Tinto will
continue to develop and operate Winu, and SMM
will pay Rio Tinto up to US$430 million for a 30 % share of the
project's assets and liabilities. On 31 October 2025, we completed
the sale, forming the Winu Joint Venture, and received an initial
US$195 million in cash consideration. As Winu is an undeveloped
property, the consideration received has, therefore, been recorded in
the cash flow statement within “net cash generated from operating
activities”. We recognised a pre-tax gain of US$196 million in
the income statement. A further US$235 million in deferred
consideration to be received is contingent on future milestones;
as at 31 December 2025, we have not recognised any additional
consideration and this will be reassessed at each reporting period.
Rio Tinto Winu Pty Limited (RT Winu) is the legal entity that
owns the Group’s 70 % interest in the Winu Joint Venture, an
unincorporated arrangement. From 1 November 2025, the Group
recognises its share of assets, revenue, and expenses relating to
this arrangement. The Group also recognises its share of all
liabilities, except for employment provisions which are recognised
according to RT Winu’s contactual obligations, with a corresponding
Wyoming Uranium
In 2024, we completed our sale of the Sweetwater uranium mill facility
together with mining projects (collectively known as “Wyoming
Uranium”) to Uranium Energy Corp. (UEC) for cash consideration
of US$175 million.
Lake MacLeod
In 2024, we completed our sale of Dampier Salt Limited’s Lake
MacLeod salt and gypsum operation in Carnarvon to Leichhardt
Industrials Group (Leichhardt) for cash consideration of
US$247 million.
La Granja
In 2023, we completed the sale of a 55 % interest in the undeveloped La
Granja project in Peru for US$105 million to First Quantum Minerals
(FQM). As a result of the sale, our retained interest in La Granja
represents a 45 % owned associate (equity accounted) over which
RioTinto has significant influence during the evaluation phase. In total,
we recognised a pre-tax gain of US$154 million in the income
statement, primarily representing the consideration transferred by
First Quantum, plus the fair value of the retained interest in the
project.
Annual Report on Form 20-F 2025 | 179 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
6 Revenue by destination and product
We recognise sales revenue related to the transfer of promised
goods or services when control of the goods or services passes to
the customer. The amount of revenue recognised reflects the
consideration to which the Group is, or expects to be, entitled in
exchange for those goods or services.
Sales revenue is recognised on individual sales when control
transfers to the customer. In most instances, control passes and
sales revenue is recognised when the product is delivered to the
vessel or vehicle on which it will be transported once loaded, the
destination port or the customer’s premises. There may be
circumstances when judgement is required based on the 5
indicators of control below:
•The customer has the significant risks and rewards of ownership
and has the ability to direct the use of, and obtain substantially all
of the remaining benefits from, the good or service.
•The customer has a present obligation to pay in accordance with
the terms of the sales contract. For shipments under the
Incoterms cost, insurance and freight (CIF)/carriage paid to
(CPT)/cost and freight (CFR), this is generally when the ship is
loaded, at which time the obligation for payment is for both
product and freight.
•The customer has accepted the asset. Sales revenue may be
subject to adjustment if the product specification does not
conform to the terms specified in the sales contract but this does
not impact the passing of control. Assay and specification
adjustments have historically been immaterial.
•The customer has legal title to the asset. The Group usually retains
legal title until payment is received for credit risk purposes only.
•The customer has physical possession of the asset. This indicator
may be less important as the customer may obtain control of an
asset prior to obtaining physical possession, which may be the
case for goods in transit.
majority of our products on CFR or CIF Incoterms. This means that
the Group is responsible (acts as principal) for providing shipping
services and, in some instances, insurance after the date at which
control of goods passes to the customer at the loading port. The
Group, therefore, has separate performance obligations for freight
and insurance services that are provided solely to facilitate the sale
of the products it produces. Other Incoterms commonly used by the
Group are free on board (FOB), where the Group has no
responsibility for freight or insurance once control of the goods has
passed at the loading port, and delivered at place (DAP), where
control of the goods passes when the product is delivered to the
agreed destination. For these Incoterms, there is only one
performance obligation, being the provision of product at the point
where control passes.
Within each sales contract, each unit of product shipped is a
separate performance obligation. Revenue is generally recognised
at the contracted price as this reflects the standalone selling price.
Sales revenue excludes any applicable sales taxes. Sales of copper
concentrate are stated net of the treatment and refining charges
which will be required to convert it to an end product.
The Group’s products are sold to customers under contracts that
vary in tenure and pricing mechanisms, including some volumes
sold on the spot market. Pricing for iron ore is on a range of terms,
the majority being either monthly or quarterly average pricing
mechanisms, with a smaller proportion of iron ore volumes being
sold on the spot market.
Certain of the Group’s products may be provisionally priced at the
date revenue is recognised and a provisional invoice issued;
however, substantially all iron ore and aluminium sales are reflected
at final prices in the results for the period. Provisionally priced
receivables are subsequently measured at fair value through the
income statement under IFRS 9 “Financial Instruments” as
described in note 25. The final selling price for all provisionally
priced products is based on the price for the quotational period
stipulated in the contract. Final prices for copper concentrate are
normally determined between 30 and 120 days after delivery to the
customer. The change in value of the provisionally priced receivable
is based on relevant forward market prices and is included in sales
revenue. Refer to “Other revenue” within the sales by product
disclosure below.
Revenues from the sale of significant by-products, such as gold, are
included in sales revenue. Third-party commodity swap arrangements
principally for delivery and receipt of smelter-grade alumina are offset
within operating costs. The sale and purchase of third-party production
for own use or to mitigate shortfalls in our production are accounted for
on a gross basis with sales presented within revenue from contracts with
customers. Other operating income includes revenue incidental to the
main revenue-generating activities of the operations and is treated as a
credit to operating costs.
Typically, the Group has a right to payment before or at the point
that control of the goods passes, including a right, where applicable,
to payment for provisionally priced products and unperformed freight
and insurance services. Cash received before control passes is
recognised as a contract liability. The amount of consideration does
not contain a significant financing component as payment terms are
less than one year. We have a number of long-term contracts to
supply products to customers in future periods. Generally, revenue
is recognised on an invoice basis, as each unit sold is a separate
performance obligation and therefore the right to consideration from
a customer corresponds directly with our performance completed to
date.
We do not disclose sales revenue from freight and insurance
services separately as we do not consider that this is necessary in
order to understand the impact of economic factors on the Group.
Our Chief Executive, the CODM as defined under IFRS 8 “Operating
Segments”, does not review information specifically relating to these
sources of revenue in order to evaluate the performance of business
segments and Group information on these sources of revenue is not
provided externally.
Annual Report on Form 20-F 2025 | 180 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
6 Revenue by destination and product continued
2025 % | 2024 % | 2023 % | 2025 US$m | 2024 US$m | 2023 US$m | |
Greater China | ||||||
US | ||||||
Japan | ||||||
Europe (excluding UK) | ||||||
South Korea | ||||||
Asia (excluding Greater China, Japan and South Korea) | ||||||
Canada | ||||||
Australia | ||||||
UK | ||||||
Other countries | ||||||
Consolidated sales revenue |
(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.
2025 | 2024 | 2023 | |||||||
Revenue from contracts with customers US$m | Other revenue(a) US$m | Consolidated sales revenue US$m | Revenue from contracts with customers US$m | Other revenue(a) US$m | Consolidated sales revenue US$m | Revenue from contracts with customers US$m | Other revenue(a) US$m | Consolidated sales revenue US$m | |
Iron ore | ( | ( | |||||||
Aluminium, alumina and bauxite | ( | ||||||||
Copper | ( | ( | |||||||
Industrial minerals (comprising titanium dioxide slag, borates and salt) | ( | ( | ( | ||||||
Gold | |||||||||
Lithium | |||||||||
Other products and freight services(b) | ( | ( | |||||||
Consolidated sales revenue | ( | ||||||||
(a)Consolidated sales revenue includes both revenue from contracts with customers, accounted for under IFRS 15 “Revenue from Contracts with Customers”, and subsequent movements
in provisionally priced receivables, accounted for under IFRS 9, and included in “Other revenue” above.
(b)“Other products and freight services” includes metallic co-products, diamonds, molybdenum, silver and other commodities.
7 Net operating costs (excluding items disclosed separately)
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Raw materials, consumables, repairs and maintenance | ||||
Amortisation of intangible assets | 12 | |||
Depreciation of property, plant and equipment | 13 | |||
Employment costs | 27 | |||
Shipping and other freight costs | ||||
Decrease in finished goods and work in progress(a) | ||||
Royalties | ||||
Amounts charged by equity accounted units(b) | ||||
Net foreign exchange losses/(gains) | ( | ( | ||
Provisions (including exchange differences on provisions) | ||||
Research and development | ||||
Other external costs(c) | ||||
Costs included above capitalised or shown on a separate line item(d) | ( | ( | ( | |
Other operating income(e) | ( | ( | ( | |
Net operating costs (excluding items disclosed separately)(f) |
(a)Includes purchases of third-party material to satisfy sales contracts.
(b)Amounts charged by equity accounted units relate to toll processing fees and also include purchases from equity accounted units of bauxite, aluminium and copper concentrate which
are then processed by the product group or sold to third parties.
(c)In 2025, other external costs includes US$1,059 million (2024: nil ) of costs due to the impact of tariffs imposed on sales to the US, US$269 million (2024: US$217 million, 2023: US$269 million) of short-
term lease costs and US$84 million (2024: US$46 million, 2023: US$40 million) of variable lease costs recognised in the income statement in accordance with IFRS 16 “Leases”. Refer to note 22.
(d)In 2025, US$1,036 million (2024: US$923 million; 2023: US$1,007 million) of operating costs were capitalised, US$192 million (2024: US$220 million; 2023: US$247 million) of costs
were shown separately within “Exploration and evaluation costs” in the consolidated income statement, and US$84 million (2024: US$60 million; 2023: US$77 million) of costs were
shown within operating costs as “Research and development”.
(e)Other operating income includes sundry revenue incidental to the main revenue-generating activities of the operations.
(f)Operating decarbonisation spend of US$430 million (2024: US$306 million; 2023: US$234 million) is allocated as US$374 million (2024: US$253 million; 2023: US$182 million) within
“Net operating costs (excluding items disclosed separately)”, with the remainder included in our share of profit or loss of equity accounted units.
Annual Report on Form 20-F 2025 | 181 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
8 Exploration and evaluation expenditure
•researching and analysing existing exploration data
•conducting geological studies, exploratory drilling and sampling
•examining and testing extraction and treatment methods
•compiling various studies (order of magnitude, pre-feasibility and feasibility) and/or
•early works at mine sites prior to full notice to proceed.
Exploration expenditure relates to the initial search for deposits with economic potential. Expenditure on exploration activity undertaken by
the Group is not capitalised.
Evaluation expenditure relates to a detailed assessment of deposits or other projects (including smelter and refinery projects) that have been
identified as having economic potential. These costs are also expensed until the business case for the project is sufficiently advanced. For
2025 US$m | 2024 US$m | 2023 US$m | |
Expenditure in the year (inclusive of net cash proceeds of US$ disposal of undeveloped projects)(a) | ( | ( | ( |
Non-cash movements and non-cash proceeds on disposal of undeveloped projects | ( | ( | ( |
Amount capitalised during the year | |||
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects) per income statement | ( | ( | ( |
Comprising: | |||
–exploration and evaluation expenditures | ( | ( | ( |
–profit/(loss) from disposal of interests in undeveloped projects(a) | ( |
(a)In 2025, net cash proceeds of US$213 million includes US$195 million received in relation to the sale of a 30 % interest in the Winu copper-gold project in Western Australia, for which
we recognised a gain on disposal of US$196 million. This profit is recorded within underlying EBITDA as it represents recovery of past exploration and evaluation expenditures that were
also included within underlying EBITDA. Refer to note 5 for details of the transaction. In 2023, net cash proceeds of US$88 million were received in relation to the sale of a 55 % interest
in the undeveloped La Granja project in Peru, for which we recognised a gain on disposal of US$154 million.
9 Finance income and finance costs
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Finance income from loans to equity accounted units | ||||
Other finance income (including bank deposits, net investment in leases, and other financial assets) | ||||
Total finance income | ||||
Interest on: | ||||
–financial liabilities at amortised cost (excluding lease liabilities) and associated derivatives | ( | ( | ( | |
–lease liabilities | ( | ( | ( | |
Fair value movements: | ||||
–bonds designated as hedged items in fair value hedges(a) | ( | ( | ( | |
–derivatives designated as hedging instruments in fair value hedges(a) | ||||
Amounts capitalised(b) | 13 | |||
Total finance costs | ( | ( | ( |
(a)The main sources of ineffectiveness of the fair value hedges include changes in the timing of the cash flows of the hedging instrument compared to the underlying hedged item, and
changes in the credit risk of parties to the hedging relationships.
(b)We capitalise interest based on the Group or relevant subsidiary’s cost of borrowing (refer to note 13) or at the rate of project-specific debt (where applicable).
Annual Report on Form 20-F 2025 | 182 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
10 Taxation
The taxation charge contains both current and deferred tax.
Current tax is the tax expected to be payable on the taxable income for the year calculated using rates applicable during the year. It includes
adjustments for tax expected to be payable or recoverable in respect of previous periods. Where the amount of tax payable or recoverable is
uncertain, we establish provisions based on either: the Group’s judgement of the most likely amount of the liability or recovery; or, when there
is a wide range of possible outcomes, a probability weighted average approach.
Deferred tax is calculated in accordance with IAS 12, at the rate expected to apply when the asset is realised or liability settled, according to rates that
have been enacted or substantively enacted at the balance sheet date. Deferred tax is generally recognised in respect of differences between the
carrying values of assets and liabilities in the financial statements and their tax bases. Deferred tax assets are recognised to the extent it is probable
that taxable profit will be available against which the deductible temporary difference can be utilised.
Deferred tax is not recognised on the initial recognition of goodwill or of assets and liabilities, other than in a business combination, that at
the time of the transaction impact neither accounting nor taxable profit, except where the transaction gives rise to equal and offsetting taxable
and deductible temporary differences. Deferred tax is not recognised in respect of investments in subsidiaries and associates and jointly
controlled entities where the Group is able to control the timing of the reversal of the temporary difference and it is probable they will not
reverse in the foreseeable future.
The mandatory exception to recognising and disclosing information related to deferred tax assets and liabilities related to Pillar Two income
taxes has been applied since 1 January 2024, as required by IAS 12.
Current and deferred tax assets and liabilities are offset when the balances are related to taxes levied by the same taxing authority, there is a
Other relevant judgements | Uncertain tax positions |
The Group operates across a large number of jurisdictions and is subject to review and challenge by local tax authorities on a range of tax matters. Where the amount of tax payable or recoverable is uncertain, whether due to local tax authority challenge or due to uncertainty regarding the appropriate treatment, judgement is required to assess the probability that the adopted treatment will be accepted. In accordance with IFRIC 23 “Uncertainty over Income Tax Treatments”, if it is not probable that the treatment will be accepted, the Group accounts for uncertain tax provisions for all matters worldwide based on the Group’s judgement of the most likely amount of the liability or recovery, or, where there is a wide range of possible outcomes, using a probability weighted average approach. Uncertain tax provisions include any related interest and penalties. The Mongolian Tax Authority has issued a number of tax assessments dating back to 2013, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. As required by Mongolian law, we have paid all amounts due in respect of the assessments, totalling US$ seek to disallow tax deductions, including future tax deductions in respect of amounts accrued and payable in the future. The International Arbitration hearings were held in September 2025. The parties are now awaiting the arbitration Tribunal to provide a final decision. Management regularly re-evaluates the likely outcomes from the dispute based on the progress of the arbitration proceedings, legal advice, and discussions with the Government of Mongolia. In 2024, a provision of US$ continues to reflect our best estimate of the likely outcome from the dispute. It is possible that the outcome of these proceedings could result in a change in our estimated exposure in respect of the matters under dispute. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the recovery of certain deferred tax assets, further details of which are provided in note 15. | |
Annual Report on Form 20-F 2025 | 183 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
10 Taxation continued
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
–Current | ||||
–Deferred | 15 | ( | ( | |
Total taxation charge |
2025 US$m | 2024 US$m | 2023 US$m | |
Profit before taxation(a) | |||
Prima facie tax payable at UK rate of 25.0% (2024: 25.0%; 2023: 23.5%)(b) | |||
Higher rate of taxation of 30% on Australian earnings(b) | |||
Other tax rates applicable outside the UK and Australia | ( | ( | ( |
Tax effect of profit from equity accounted units, related impairments and expenses(a) | ( | ( | ( |
Impact of changes in tax rates | ( | ( | |
Resource depletion allowances | ( | ( | ( |
Recognition of previously unrecognised deferred tax assets(c) | ( | ( | ( |
Write-down of previously recognised deferred tax assets | |||
Utilisation of previously unrecognised deferred tax assets | ( | ( | ( |
Current year unrecognised deferred tax assets(d) | |||
Uncertain tax provision(e) | |||
Deferred tax arising on internal sale of assets in Canadian operations(f) | ( | ||
Adjustments in respect of prior periods | ( | ||
Other items(g) | |||
Total taxation charge |
(a)The Group profit before tax includes profit after tax of equity accounted units. Consequently, the tax effect on the profit from equity accounted units is included as a separate reconciling
item in this prima facie tax reconciliation.
(b)As a UK headquartered and listed Group, the reconciliation of expected tax on accounting profit to tax charge uses the UK corporate 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 corporate tax rate on profit before tax is approximately 30 % (2024:
(c)The recognition of previously unrecognised deferred tax assets in 2025 includes re-recognition in Australia following announcements in December 2025 relating to the Tomago
Aluminium smelter, supporting an operating life extension beyond 2028, and in the US following amended US Treasury guidance on Corporate Alternative Minimum Tax regulations. In
2024, this includes US$443 million in respect of Energy Resources of Australia (ERA) and relates to rehabilitation provisions which are tax deductible when paid in the future. In
November 2024, our interest in ERA increased from 86.3 % to 98.43 % and in 2025 we commenced the process to compulsorily acquire the remaining shares. This proposed acquisition
remains subject to court approval. Tax deductions for rehabilitation payments made after completion of the compulsory acquisition process will be applied against taxable profits from
other Australian operations, including our iron ore business. In 2023, this relates primarily to Oyu Tolgoi where reaching sustainable underground production reduced the risk of tax
losses expiring if not recovered against taxable profits within 8 years.
(d)Current-year unrecognised deferred tax assets include operating losses and other costs incurred by the Group for which no tax benefit is currently recognised due to uncertainty
regarding the availability of suitable taxable profits in future periods.
(e)The uncertain tax provision of US$295 million in 2024 represents amounts provided in relation to disputes with the Mongolian Tax Authority for which the timing of resolution and
potential economic outflow are uncertain. Further information is included above, in the “Other relevant judgements - uncertain tax positions” section of this note.
(f)In 2023, the Canadian aluminium business completed an internal sale of assets which resulted in the utilisation of previously unrecognised capital losses and an uplift in the tax
depreciable value of assets on which a deferred tax asset of US$364 million was recognised.
(g)Other items includes less than US$1 million (2024: US$1 million) current tax expense related to Pillar Two measures; the global minimum tax of 15% formulated by the Organisation for
Economic Co-operation and Development (OECD).
2025 US$m | 2024 US$m | 2023 US$m | |
Tax credit/(charge) on fair value movements | ( | ||
Tax (charge)/credit on remeasurement gains/(losses) on pension and post-retirement healthcare plans | ( | ( | |
Deferred tax relating to components of other comprehensive income for the year (note 15) | ( | ( |
Annual Report on Form 20-F 2025 | 184 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
We are a diversified mining operation with the majority of our assets being located in OECD countries.
2025 US$m | 2024 US$m | |
Australia | ||
Canada | ||
Mongolia | ||
US | ||
Africa | ||
South America | ||
Europe (excluding UK) | ||
UK | ||
Other countries(b) | ||
Total non-current assets other than excluded items | ||
Non-current assets excluded from analysis above: | ||
Deferred tax assets | ||
Other financial assets | ||
Quasi-equity loans to equity accounted units(a) | ||
Receivables and other assets | ||
Total non-current assets per balance sheet |
(a)Allocation of non-current assets by country is based on the location of the business units holding the assets. It includes investments in equity accounted units totalling US$5,876 million
(2024: US$4,832 million) which represents the Group’s share of net assets excluding quasi-equity loans shown separately above.
(b)This includes US$2,146 million of goodwill relating to the acquisition of Arcadium Lithium plc which is not geographically allocated. Refer to note 5 for further details.
11 Goodwill
Goodwill is not amortised; it is tested annually as at 30 September for impairment, regardless of whether there has been an impairment
trigger, or more frequently if events or changes in circumstances indicate a potential impairment. Refer to note 4 for further information.
2025 US$m | 2024 US$m | |
Net book value | ||
At 1 January | ||
Adjustment on currency translation | ( | |
Company no longer consolidated | ( | |
Newly consolidated operations(a) | ||
At 31 December | ||
–cost | ||
–accumulated impairment | ( | ( |
At 1 January | ||
–cost | ||
–accumulated impairment | ( | ( |
At 31 December, goodwill has been allocated as follows.
2025 US$m | 2024 US$m | |
Net book value | ||
Lithium(a) | ||
Richards Bay Minerals | ||
Pilbara | ||
Dampier Salt | ||
Total |
(a)Goodwill relates to the acquisition of Arcadium Lithium plc and has been allocated to the acquired business and our Rincon operation in Argentina. Refer to note 5 for further details.
Annual Report on Form 20-F 2025 | 185 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
11 Goodwill continued
Impairment tests for goodwill
Lithium
We acquired Arcadium Lithium plc on 6 March 2025. The purchase price allocation was completed during the final quarter of 2025, resulting
in the recognition of goodwill of US$2.1 billion which has therefore been tested for impairment as at 31 December 2025. Goodwill has been
allocated to the Lithium cash-generating units (including Rincon) which have a combined carrying value of US$10.3 billion including goodwill.
The goodwill balance principally relates to deferred tax liabilities on non-tax deductible fair value adjustments and also represents synergies
from complementary technologies and geographies, and Rio Tinto’s financial strength and project development experience that can
accelerate volume growth when supported by markets and returns.
Key accounting estimate | Impairment test of goodwill |
The recoverable amount has been assessed by reference to the FVLCD methodology described in note 4, utilising post-tax cash flows expressed in real terms discounted at a weighted discount rate of cash flows are based on operating assumptions that focus on delivering the committed projects to reach capacity of accounting for recoverable amount, with expansions having been risk adjusted for project specific factors, including in Argentina for the benefit of the Regime for Large Investments (“RIGI”) potentially not being available. The recoverable amount exceeds the carrying value by US$ assumption to which the determination is most sensitive is the long-run price for lithium carbonate. At 31 December 2025, market commentators used in our determination of consensus pricing have published forecast prices (adjusted to 2025 real-terms) in range $13.3/ kg lithium carbonate equivalent (LCE) to $22.0/kg LCE. For our impairment test we have used a long-run lithium carbonate price in the upper half of that range in recognition of positive market sentiment at the balance sheet date. With all other modelling inputs remaining constant, a reduction in the long-run price for lithium carbonate by carrying value. To further illustrate the sensitivity of the recoverable amount, with all other inputs remaining constant, an increase in the weighted average discount rate to | |
Richards Bay Minerals
Richards Bay Minerals’ annual impairment review resulted in no impairment charge for 2025 (2024: no impairment charge). The recoverable amount
has been assessed by reference to the CGU’s FVLCD, in line with the policy set out in note 4 and classified as level 3 under the fair value hierarchy.
FVLCD was determined by estimating cash flows until the end of the life-of-mine plan including anticipated expansions. In arriving at FVLCD, a post-
tax discount rate of 8.6 % (2024: 8.6 %) has been applied to the post-tax cash flows expressed in real terms.
FVLCD are set out below:
2025 US$m | 2024 US$m | |
( | ( | |
Future selling prices and operating costs have been estimated in line with the policy set out in note 4. The recoverable amount of the CGU
12 Intangible assets
Purchased intangible assets are initially recorded at cost. Finite-life intangible assets are amortised over their useful economic lives on a
straight line or units of production basis, as appropriate. Intangible assets that are deemed to have indefinite lives and intangible assets that
are not yet ready for use are not amortised; they are reviewed annually as at 30 September for impairment, regardless of whether there has
been an impairment trigger, or more frequently if events or changes in circumstances indicate a potential impairment. The majority of our
intangible assets relate to capitalised exploration and evaluation spend on undeveloped properties and contract-based water rights.
The carrying values for undeveloped properties are reviewed at each reporting date in accordance with IFRS 6 “Exploration for and
Evaluation of Mineral Resources”. The indicators of impairment differ from the tests in accordance with IAS 36 in recognition of the
subjectivity of estimating future cash flows for mineral interests under evaluation. Potential indicators of impairment include: expiry of the right
to explore, substantive expenditure is no longer planned, commercially viable quantities of Mineral Resources have not been discovered and
exploration activities will be discontinued, or sufficient data exists to indicate a future development would be unlikely to recover the carrying
amount in full. When such impairment indicators have been identified, the recoverable amount and impairment charge are measured under
IAS 36. Impairment reversals for undeveloped properties are not subject to special conditions within IFRS 6 and are therefore subject to the
same monitoring for indicators of impairment reversal as other CGUs.
Annual Report on Form 20-F 2025 | 186 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
12 Intangible assets continued
Exploration and evaluation
Evaluation expenditure relates to a detailed assessment of deposits or other projects (including smelter and refinery projects) that have been
identified as having economic potential. Capitalisation of evaluation expenditure commences when there is a high degree of confidence that
the Group will determine that a project is commercially viable; that is, the project will provide a satisfactory return relative to its perceived
risks and, therefore, it is considered probable that future economic benefits will flow to the Group. The Group’s view is that a high degree of
confidence is greater than “more likely than not” (that is, greater than 50% certainty) and less than “virtually certain” (that is, less than 90%
certainty).
Assessing whether there is a high degree of confidence that the Group will ultimately determine that an evaluation project is commercially
viable requires judgement and consideration of all relevant factors such as: the nature and objective of the project, the project’s current
stage, project timeline, current estimates of the project’s net present value (including sensitivity analyses for the key assumptions), and the
main risks of the project. Development expenditure incurred prior to the decision to proceed is subject to the same criteria for capitalisation,
being a high degree of confidence that the Group will ultimately determine that a project is commercially viable.
In some cases, undeveloped projects are regarded as successors to orebodies, smelters or refineries currently in production. Where this is
the case, it is intended that these will be developed and go into production when the current source of ore is exhausted or when existing
smelters or refineries are closed. Ore Reserves may be declared for an undeveloped mining project before its commercial viability has been
fully determined. Evaluation costs may continue to be capitalised in between declaration of Ore Reserves and approval to mine as further
work is undertaken in order to refine the development case to maximise the project’s returns.
Carbon credits and Renewable Energy Certificates
Carbon credits and Renewable Energy Certificates (RECs) acquired for our own use are accounted for as intangible assets (included within
“Other intangible assets”), initially recorded at cost. They are amortised through the income statement when surrendered.
Contract-based intangible assets
The majority of the carrying value of our contract-based intangible assets relate to water rights in the Quebec region, which were acquired
with Alcan. These contribute to the efficiency and cost effectiveness of our aluminium operations as they enable us to generate electricity
Other relevant judgements | Assessment of indefinite-lived water rights in Quebec, Canada |
We continue to judge the water rights in Quebec to have an indefinite life because we expect the contractual rights to contribute to the efficiency and cost effectiveness of our operations for the foreseeable future. Accordingly, the rights are not subject to amortisation but are tested annually for impairment. We have no other indefinite-lived assets. As at 31 December 2025, the remaining carrying value of the water rights (included in contract-based assets) of US$ (2024: US$ to FVLCD using discounted cash flows. The recoverable amount of the Quebec smelters is classified as level 3 under the fair value hierarchy. In arriving at its FVLCD, post-tax cash flows expressed in real terms have been estimated over the expected useful economic lives of the underlying smelting assets and discounted using a real post-tax discount rate of The recoverable amounts were determined to be significantly in excess of carrying value, and there are no reasonably possible changes in key assumptions that would cause the remaining water rights to be impaired. | |
Impact of climate change on our business | Water rights |
To manage the uncertainties of climate change and our impact on the area, our team of hydrologists in Quebec analyse different weather scenarios on a daily basis. We monitor the water resource available to us along with the impact that our operation is having on the water quality and quantity, and on the environment when we return the water following use. Based on our analysis to date, we do not consider the renewal of our contractual water rights to be at risk from climate change for the foreseeable future. | |
Annual Report on Form 20-F 2025 | 187 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
12 Intangible assets continued
2025 | ||||
Exploration and evaluation US$m | Contract-based intangible assets US$m | Other intangible assets(a) US$m | Total US$m | |
Net book value | ||||
At 1 January 2025 | ||||
Adjustment on currency translation | ||||
Additions(a) | ||||
Amortisation for the year | ( | ( | ( | |
Newly consolidated operations(b) | ||||
Transfers and other movements(c) | ( | |||
At 31 December 2025 | ||||
–cost | ||||
–accumulated amortisation and impairment | ( | ( | ( | ( |
Total | ||||
2024 | ||||
Exploration and evaluation US$m | Contract-based intangible assets US$m | Other intangible assets(a) US$m | Total US$m | |
Net book value | ||||
At 1 January 2024 | ||||
Adjustment on currency translation | ( | ( | ( | ( |
Additions(a) | ||||
Amortisation for the year | ( | ( | ( | |
Transfers and other movements(c) | ( | ( | ||
At 31 December 2024 | ||||
–cost | ||||
–accumulated amortisation and impairment | ( | ( | ( | ( |
Total | ||||
(a) | Additions to Other intangible assets include US$ will generate future economic benefit. At 31 December 2025, the balance of carbon units and RECs was US$ |
(b) | Newly consolidated operations principally relate to undeveloped projects acquired through Arcadium Lithium plc and classified as exploration and evaluation, together with other identifiable intangible assets including favourably priced customer contracts. Refer to note 5 for details. |
(c) | Transfers and other movements includes reclassification between categories. In 2024, following approvals by the Board of notice to proceed, exploration and evaluation assets relating to Simandou (US$ |
Where amortisation is calculated on a straight line basis, the following useful lives have been determined:
Contract-based intangible assets | Other intangible assets | |||||
Type of intangible | Power contracts/ water rights | Other purchase and customer contracts | Internally generated intangible assets and computer software | Other intangible assets | Patented and non-patented technology | Trademarks |
Amortisation profile | ||||||
Annual Report on Form 20-F 2025 | 188 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
13 Property, plant and equipment
Property, plant and equipment is stated at cost, as defined in IAS 16 “Property, Plant and Equipment”, less accumulated depreciation and
accumulated impairment losses. The cost of property, plant and equipment includes, where applicable, the estimated close-down and
restoration costs associated with the asset.
Property, plant and equipment includes right-of-use assets arising from leasing arrangements, shown separately from owned and leasehold assets.
Once an undeveloped mining project has been determined as commercially viable and approval to mine has been given, further expenditure is
capitalised under “capital works in progress” together with any amount transferred from “Exploration and evaluation”. Once the project enters into an
operation phase, the amounts capitalised in capital work in progress are reclassified to their respective asset categories.
Costs incurred while commissioning new assets, in the period before they are capable of operating in the manner intended by management, are
capitalised unless associated with pre-production revenue. Development costs incurred after the commencement of production are capitalised to the
extent they are expected to give rise to a future economic benefit. Interest on borrowings related to construction or development projects is
capitalised, at the rate payable on project-specific debt if applicable or at the Group or subsidiary’s cost of borrowing if not. This is performed until the
point when substantially all the activities that are necessary to make the asset ready for its intended use are complete. It may be appropriate to use a
subsidiary’s cost of borrowing when the debt was negotiated based on the financing requirements of that subsidiary.
Property, plant and equipment is depreciated over its useful life, or over the remaining life of the mine, smelter or refinery if that is shorter and
there is no reasonable alternative use for the asset by the Group. Depreciation commences when an asset is available for use.
Straight line basis
shorter than the related mine are depreciated on a straight line basis as follows.
Type of Property, plant and equipment | Land and buildings | Plant and equipment | ||
Land | Buildings | Power-generating assets | Other plant and equipment | |
Depreciation profile | Not depreciated | See Power note below on page 191 | ||
The useful lives and residual values for material assets and categories of assets are reviewed annually and changes are reflected prospectively.
Units of production basis
For mining properties and leases and certain mining equipment, consumption of the economic benefits of the asset is linked to production.
Except as noted below, these assets are depreciated on the units of production basis.
In applying the units of production method, depreciation is normally calculated based on production in the period as a percentage of total expected
production in current and future periods based on Ore Reserves and, for some mines, other Mineral Resources. Other Mineral Resources may be
included in the calculations of total expected production in limited circumstances where there are very large areas of contiguous mineralisation, for
which the economic viability is not sensitive to likely variations in grade, as may be the case for certain iron ore, bauxite and industrial mineral
deposits, and where there is a high degree of confidence that the other Mineral Resources can be extracted economically. This would be the case
when the other Mineral Resources do not yet have the status of Ore Reserves merely because the necessary detailed evaluation work has not yet
been performed and the responsible technical personnel agree that inclusion of a proportion of Measured and Indicated Resources in the calculation
of total expected production is appropriate based on historical reserve conversion rates.
The required level of confidence is unlikely to exist for minerals that are typically found in low-grade ore (as compared with the above), such as copper or
gold. In these cases, specific areas of mineralisation have to be evaluated in detail before their economic status can be predicted with confidence.
Sometimes the calculation of depreciation for infrastructure assets, primarily rail and port, considers Measured and Indicated Resources. This is
because the asset can benefit current and future mines. The measured and indicated resource may relate to mines which are currently in production
or to mines where there is a high degree of confidence that they will be brought into production in the future. The quantum of Mineral Resources is
determined taking into account future capital costs as required by the JORC Code. The depreciation calculation, however, applies to current mines
only and does not take into account future development costs for mines which are not yet in production.
Key judgement | Estimation of asset lives |
The useful lives of the major assets of a CGU are often dependent on the life of the orebody to which they relate. Where this is the case, the lives of mining properties, and their associated refineries, concentrators and other long-lived processing equipment are generally limited to the expected life of the orebody. The life of the orebody, in turn, is estimated on the basis of the life-of-mine plan. Where the major assets of a CGU are not dependent on the life of a related orebody, management applies judgement in estimating the remaining service potential of long-lived assets. Factors affecting the remaining service potential of smelters include, for example, smelter technology and electricity purchase contracts when power is not sourced from the Group, or in some cases from local governments permitting electricity generation from hydropower stations. | |
Impact of climate change on our business | Estimation of asset lives |
We expect there to be a higher demand for copper, aluminium, lithium and high-grade iron ore in order to meet demand for the minerals required to transition to a low-carbon economic environment, consistent with the climate change commitments of the Paris Agreement. We expect this to exceed new supply to the market and therefore increase prices. Under the Aspirational Leadership scenario, the economic cut-off grade for our Ore Reserves is expected to be lower; in effect we would mine a greater volume of material before the mines are depleted. We cannot quantify the difference this would make without undue cost as it would require revised mine plans, but for property, plant and equipment this increased volume of material would reduce the depreciation charge during any given period for assets that use the “Units of production” depreciation basis. | |
Annual Report on Form 20-F 2025 | 189 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
In open pit mining operations, overburden and other waste materials must be removed to access ore from which minerals can be extracted
economically. The process of removing overburden and other waste materials is referred to as stripping. During the development of a mine (or,
in some instances, pit; see below), before production commences, stripping costs related to a “component” of an orebody are capitalised as part
of the cost of construction of the mine (or pit). A “component” is a specific section of the orebody that is made more accessible by the stripping
activity. It will typically be a subset of the larger orebody that is distinguished by a separate useful economic life (for example, a pushback).
These are then amortised over the life of the mine (or pit) on a units of production basis.
Where a mine operates several open pits that are regarded as separate operations for the purpose of mine planning, initial stripping costs
are accounted for separately by reference to the ore from each separate pit. If, however, the pits are highly integrated for the purpose of mine
planning, the second and subsequent pits are regarded as extensions of the first pit in accounting for stripping costs. In such cases, the initial
stripping of the second and subsequent pits is considered to be production phase stripping (see below).
Key judgement | Deferral of stripping costs |
We apply judgement as to whether multiple pits at a mine are considered separate or integrated operations. This determines whether the stripping activities of a pit are classified as pre-production or production phase stripping and, therefore, the amortisation base for those costs. The analysis depends on each mine’s specific circumstances and requires judgement: another mining company could make a different judgement even when the fact pattern appears to be similar. In order for production phase stripping costs to qualify for capitalisation as a stripping activity asset, 3 criteria must be met: •it must be probable that there will be an economic benefit in a future accounting period because the stripping activity has improved access to the orebody •it must be possible to identify the “component” of the orebody for which access has been improved •it must be possible to reliably measure the costs that relate to the stripping activity. | |
Recognition and measurement of deferred stripping
Phase | Development phase | Production phase | |
Stripping activity | Overburden and other waste removal during the development of a mine before production commences. | Production phase stripping can give access to 2 benefits: the extraction of ore in the current period and improved access to ore which will be extracted in future periods. | |
Period of benefit | After commissioning of the mine. | Future periods after first phase is complete. | Current and future benefit are indistinguishable. |
Capitalised to mining properties and leases in property, plant and equipment | During the development of a mine, stripping costs relating to a component of an orebody are capitalised as part of the cost of construction of the mine. | It may be the case that subsequent phases of stripping will access additional ore and that these subsequent phases are only possible after the first phase has taken place. Where applicable, the Group considers this on a mine-by-mine basis. Generally, the only ore attributed to the stripping activity asset for the purposes of calculating the life-of-component ratio is the ore to be extracted from the originally identified component. | Stripping costs for the component are deferred to the extent that the current period ratio exceeds the life-of-component ratio. |
Allocation to inventory | Not applicable | Not applicable | Stripping costs are allocated to inventory based on a relevant production measure using a life- of-component strip ratio. |
Life-of-component ratio | The life-of-component ratios are based on the Ore Reserves of the mine (and for some mines, other Mineral Resources) and the annual mine plan. They are a function of the mine design and, therefore, changes to that design will generally result in changes to the ratios. Changes in other technical or economic parameters that impact the Ore Reserves (and for some mines, other Mineral Resources) may also have an impact on the life-of-component ratios even if they do not affect the mine design. Changes to the ratios are accounted for prospectively. | ||
Depreciation basis | Depreciated on a “units of production” basis based on expected production of either ore or minerals contained in the ore over the life of the component unless another method is more appropriate. | ||
2025 US$m | 2024 US$m | |
Property, plant and equipment – owned | ||
Right-of-use assets – leased | ||
Net book value |
Annual Report on Form 20-F 2025 | 190 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
13 Property, plant and equipment continued
2025 | ||||||
Note | Mining properties and leases(a) US$m | Land and buildings US$m | Plant and equipment US$m | Capital works in progress US$m | Total US$m | |
Net book value | ||||||
At 1 January 2025 | ||||||
Adjustment on currency translation(b) | ||||||
Adjustments to capitalised closure costs | 14 | |||||
Interest capitalised(c) | 9 | |||||
Additions(d) | ||||||
Depreciation for the year(a) | ( | ( | ( | ( | ||
Impairment charges net of reversals(e) | ( | ( | ( | ( | ||
Disposals | ( | ( | ( | ( | ||
Newly consolidated operations(f) | ||||||
Transfers and other movements(g) | ( | ( | ||||
At 31 December 2025 | ||||||
Comprising: | ||||||
– cost | ||||||
– accumulated depreciation and impairment | ( | ( | ( | ( | ( | |
Total | ||||||
Non-current assets pledged as security(h) | ||||||
2024 | ||||||
Note | Mining properties and leases(a) US$m | Land and buildings US$m | Plant and equipment US$m | Capital works in progress US$m | Total US$m | |
Net book value | ||||||
At 1 January 2024 | ||||||
Adjustment on currency translation(b) | ( | ( | ( | ( | ( | |
Adjustments to capitalised closure costs | 14 | |||||
Interest capitalised(c) | 9 | |||||
Additions(d) | ||||||
Depreciation for the year(a) | ( | ( | ( | ( | ||
Impairment charges net of reversals(e) | ( | ( | ( | ( | ( | |
Disposals | ( | ( | ( | ( | ( | |
Newly consolidated operations(f) | ||||||
Operations divested | ( | ( | ( | |||
Transfers and other movements(g) | ( | |||||
At 31 December 2024 | ||||||
Comprising | ||||||
–cost | ||||||
–accumulated depreciation and impairment | ( | ( | ( | ( | ( | |
Total | ||||||
Non-current assets pledged as security(h) | ||||||
(a)At 31 December 2025, the net book value of capitalised production phase stripping costs totalled US$2,506 million, with US$2,057 million within “Property, plant and equipment” and a
further US$449 million within “Investments in equity accounted units” (2024: total of US$2,326 million, with US$1,947 million in “Property, plant and equipment” and a further US$379
million within “Investments in equity accounted units”). During the year, capitalisation of US$622 million was offset by depreciation of US$460 million, inclusive of amounts recorded
within equity accounted units (2024: US$423 million offset by depreciation of US$580 million). Depreciation of deferred stripping costs in respect of subsidiaries of US$303 million (2024:
US$411 million; 2023: US$216 million) is included within “Depreciation for the year”.
(b)Adjustment on currency translation represents the impact of exchange differences arising on the translation of the assets of entities with functional currencies other than the US dollar, recognised
directly in the currency translation reserve. The adjustment in 2025 arose primarily from the strengthening of the Australian and Canadian dollars against the US dollar.
(c)Our average borrowing rate, excluding any project finance, used for capitalisation of interest is 5.40 % (2024: 7.20 %).
(d)Additions to “Property, plant and equipment” includes US$116 million of spend on carbon abatement (2024: US$144 million).
(e)Refer to note 4 for details.
(f)In 2025, newly consolidated operations primarily relates to the acquisition of Arcadium Lithium plc. Refer to note 5 for details. In 2024, this primarily related to the acquisition of the
remaining 20.64 % interest in New Zealand Aluminium Smelters (NZAS), including fair value adjustments for contributed assets.
(g)“Transfers and other movements” includes reclassification between categories. In 2025, this primarily related to amounts reclassed from Capital works in progress to other property, plant
and equipment categories for assets at Oyu Tolgoi and Pilbara. In 2024, this included amounts reclassified from Intangible Assets relating to exploration and evaluation at Simandou
(US$732 million) and Rincon (US$1,013 million) following Board approval of “notice to proceed” in February 2024 and December 2024, respectively.
(h)Excludes assets held under capitalised lease arrangements. Non-current assets pledged as security represent amounts pledged as collateral against US$3,794 million (2024: US$4,011
Annual Report on Form 20-F 2025 | 191 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
Impact of climate change on our business | Useful economic lives of our power generating assets | ||||
The Group has committed to reducing Scope 1 and Scope 2 carbon emissions by net 2022 and 2030. Transitioning electricity from principally fossil fuel-based power generating assets to principally renewables is critical to achieving that goal. The carrying value of power generating assets is set out in the table below. The weighted average remaining useful economic life of plant and equipment for fossil fuel-based power generating assets is limitations of intermittent renewable energy generation and energy storage systems, and our need for reliable baseload electricity, we expect our current generation assets will be integral to those needs for the foreseeable future. We are investing in research and development and evaluating new market options that may overcome these technical challenges. Should pathways for eliminating fossil fuel power generating assets be identified we may need to accelerate depreciation or impair the assets; however, at this present moment the requirement for fossil fuel powered back-up means that early retirement of the assets is not expected and no change to depreciation rates is required. | |||||
2025 | 2024 | ||||
Net book value of power generating assets powered by | Land and buildings US$m | Plant and equipment US$m | Land and buildings US$m | Plant and equipment US$m | |
–Fossil fuels | |||||
–Renewables | |||||
2025 | 2024 | |||||
Land and buildings US$m | Plant and equipment US$m | Total US$m | Land and buildings US$m | Plant and equipment US$m | Total US$m | |
Net book value | ||||||
At 1 January | ||||||
Adjustment on currency translation | ( | ( | ( | |||
Additions | ||||||
Depreciation for the year | ( | ( | ( | ( | ( | ( |
Net impairment (charges)/reversals(a) | ( | ( | ||||
Newly consolidated operations | ||||||
Disposals | ( | ( | ( | |||
Transfers and other movements | ( | ( | ( | |||
At 31 December | ||||||
(a)Refer to note 4 for details.
The leased assets of the Group include land and buildings (mainly office buildings) and plant and equipment, the majority of which are
marine vessels. Lease terms are negotiated on an individual basis and contain a wide range of terms and conditions. Right-of-use assets are
14 Close-down, restoration and environmental provisions
The Group has provisions for close-down and restoration costs, which include the dismantling and demolition of infrastructure, the removal of
residual materials, and the remediation of disturbed areas for mines and certain refineries and smelters. The obligation may arise during
development or during the production phase of a facility. These provisions are based on all regulatory requirements and any other
commitments made to stakeholders. The provision excludes the impact of future disturbance that is planned to occur during the life of mine,
so that it represents only existing disturbance as at the balance sheet date.
Closure provisions are not made for those operations that have no known restrictions on their lives as the closure dates cannot be reliably
estimated; instead a contingent liability is disclosed. Refer to note 37 for details. This applies primarily to certain Canadian smelters that have
indefinite-lived water rights from local governments permitting electricity generation from hydropower stations and are not tied to a specific
orebody.
Close-down and restoration costs are a normal consequence of mining or production, and the majority of close-down and restoration
expenditure is incurred in the years following closure of the mine, refinery or smelter. Although the ultimate cost to be incurred is uncertain,
the Group’s businesses estimate their costs using current restoration standards, techniques and expected climate conditions. The costs are
estimated on the basis of a closure plan, and are reviewed at each reporting period during the life of the operation to reflect known
developments. The estimates are also subject to formal review, with appropriate external support, at regular intervals.
The timing of closure and the rehabilitation plans for the site can be uncertain and dependent upon future capital allocation decisions, which
involve estimation of future economic circumstances and business cases. In such circumstances, the closure provision is estimated using
probability weighting of the different remediation and closure scenarios.
Annual Report on Form 20-F 2025 | 192 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
14 Close-down, restoration and environmental provisions continued
The initial close-down and restoration provision is capitalised within “Property, plant and equipment”. Subsequent movements in the close-
down and restoration provisions for ongoing operations are treated as an adjustment to cost within “Property, plant and equipment”. This
includes those resulting from new disturbances related to expansions or other activities qualifying for capitalisation; updated cost estimates;
changes to the estimated lives of operations; changes to the timing of closure activities; and revisions to discount rates.
Changes in closure provisions relating to closed and fully impaired operations are charged/(credited) to “Net operating costs” in the income
statement.
Where rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure, provision is made for the
estimated outstanding continuous rehabilitation work at each balance sheet date and the cost is charged to the income statement.
The closure provision is represented by forecast future underlying cash flows expressed in real terms at the balance sheet date. These are
discounted for the time value of money based on a long-term view of low-risk market yields which includes a review of historic trends plus
risks and opportunities for which future cash flows have not been adjusted, namely potential improvements in closure practices between the
reporting date and the point at which rehabilitation spend takes place. The real-terms discount rate used is 2.5 % (2024: 2.5 %) which is
applied to all locations since we expect to meet closure cash flows principally from US dollar revenues and financing, with activities
coordinated by the Group’s central closure team.
To roll forward those real-terms cash flows between periods, we identify local rates of inflation based on Producer Price Inflation (PPI) indices
and, together with the real-terms discount rate, unwind the discount through the line “Amortisation of discount on provisions”, shown within
“Finance items” in the income statement. This nominal rate for cost escalation in the current financial year is estimated at the start of each
half-year and applied systematically for 6 months. At the end of each half year we update the underlying cash flows for the latest estimate of
experienced inflation, if it differs materially from our forecast, for the current financial year and record this as “changes to existing provisions”.
For operating sites this adjustment usually results in a corresponding adjustment to property, plant and equipment, and for closed and fully
impaired sites the adjustment is charged or credited to the income statement.
In some cases, our subsidiaries make a contribution to trust funds in order to meet or reimburse future environmental and decommissioning
costs. Amounts due for reimbursement from trust funds are not offset against the corresponding closure provision unless payments into the
fund have the effect of passing the closure obligation to the trust.
Environmental costs result from environmental damage that was not a necessary consequence of operations, and may include remediation,
compensation and penalties. Provision is made for the estimated present value of such costs at the balance sheet date. These costs are
charged to “Net operating costs”, except for the unwinding of the discount which is shown within “Amortisation of discount on provisions”.
Remediation procedures may commence soon after the time the disturbance, remediation process and estimated remediation costs become
Note | 2025 US$m | 2024 US$m | |
At 1 January | |||
Adjustment on currency translation | ( | ||
Adjustments to mining properties/right-of-use assets: | 13 | ||
–increases to existing and new provisions | |||
–change in discount rate | ( | ||
Charged/(credited) to profit: | |||
–increases to existing and new provisions | |||
–change in discount rate | ( | ||
–unused amounts reversed | ( | ( | |
–exchange (gains)/losses on provisions | ( | ||
–amortisation of discount | |||
Utilised in year | ( | ( | |
Newly consolidated operations(a) | |||
Transfers and other movements | ( | ||
At 31 December(b) | |||
Balance sheet analysis: | |||
Current | |||
Non-current | |||
Total |
(a)In 2025, this relates to our acquisition of Arcadium Lithium plc. Refer to note 5 for details. In 2024, this relates to our acquisition of an additional 20.64 % interest in NZAS.
(b)Close-down, restoration and environmental provisions at 31 December 2025 have not been adjusted for closure-related receivables amounting to US$394 million (2024: US$350 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.
Annual Report on Form 20-F 2025 | 193 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
14 Close-down, restoration and environmental provisions continued
Key judgement | Close-down, restoration and environmental obligations |
We use our judgement and experience to determine the potential scope of closure rehabilitation work required to meet the Group’s legal, statutory and constructive obligations, and any other commitments made to stakeholders, and the options and techniques available to meet those obligations in order to estimate the associated costs and the likely timing of those costs. Significant judgement is also required to then determine both the costs associated with that work and the other assumptions used to calculate the provision. External experts support the cost estimation process where appropriate, but there remains significant estimation uncertainty. The key judgement in applying this accounting policy is determining when an estimate is sufficiently reliable to make or adjust a closure provision. Adjustments are made to provisions when the range of possible outcomes becomes sufficiently narrow to permit reliable estimation. Depending on the materiality of the change, adjustments may require review and endorsement by the Group’s Closure Steering Committee before the provision is updated. Cost provisions are updated throughout the life of the operation with conceptual study estimates reviewed every 5 years. Within 10 years from the expected closure date, closure cost estimates must comply with the Group’s Capital Project Framework. This means, for example, that where an Order of Magnitude (OoM) study is required for closure, it must be of the same standard as an OoM study for a new mine, smelter or refinery. In some cases, the closure study may indicate that monitoring and, potentially, remediation will be required indefinitely - for example, groundwater treatment. In these cases, the underlying cash flows for the provision may be restricted to a period for which the costs can be reliably estimated, which on average is around predicted with confidence, this period may be shorter. | |
2025 US$m | 2024 US$m | |
Undiscounted close-down, restoration and environmental obligations | ||
Impact of discounting | ( | ( |
Present value of close-down, restoration and environmental provisions | ||
Attributable to: | ||
Operating sites | ||
Non-operating sites | ||
Total close-down, restoration and environmental provisions |
Closure cost composition as at 31 December | 2025 US$m | 2024 US$m |
Decommissioning, decontamination and demolition | ||
Closure and rehabilitation earthworks(a) | ||
Long-term water management costs(b) | ||
Post-closure monitoring and maintenance | ||
Indirect costs, owners’ costs and contingency(c) | ||
Total |
(a)A key component of earthworks rehabilitation involves re-landscaping the area disturbed by mining activities utilising largely diesel-powered heavy mobile equipment. In developing low-
carbon solutions for our mobile fleet, this may include electrification of the vehicles during the mine life. The forecast cash flows for the heavy mobile equipment in the closure cost
estimate are based on existing fuel sources. The cost incurred during closure could reduce if these activities are powered by renewable energy.
(b)Long-term water management relates to the post-closure treatment of water due to acid rock drainage and other environmental commitments and is an area of research and
development focus for our Closure team. The cost of this water processing can continue for many years after the bulk earthworks and demolition activities have completed and are
therefore exposed to long-term climate change. This could materially affect rates of precipitation and therefore change the volume of water requiring processing. It is not currently
possible to forecast accurately the impact this could have on the closure provision as some of our locations could experience drier conditions whereas others could experience greater
rainfall. A further consideration relates to the alternative commercial use for the processed water, which could support ultimate transfer of these costs to a third party.
(c)Indirect costs, owners' costs and contingency include adjustments to the underlying cash flows to align the closure provision with a central-case estimate. This excludes allowances for
quantitative estimation uncertainties, which are allocated to the underlying cost driver and presented within the respective cost categories above.
Geographic composition as at 31 December | 2025 US$m | 2024 US$m |
Australia | ||
US | ||
Canada | ||
Other countries | ||
Total |
The geographic composition of the closure provision shows that our closure obligations are largely in countries with established levels of
regulation in respect of mine and site closure.
Annual Report on Form 20-F 2025 | 194 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
14 Close-down, restoration and environmental provisions continued
Projected cash flows (undiscounted) for close-down, restoration and environmental provisions
<1 year US$m | 1-3 years US$m | 3-5 years US$m | >5 years US$m | Total US$m | |
At 31 December 2025 | |||||
At 31 December 2024 |
Remaining lives of operations and infrastructure range from 1 to over 50 years with an average for all sites, weighted by undiscounted
present closure obligation, of around 15 years. Although the ultimate cost to be incurred is uncertain, the Group’s businesses estimate their
respective costs based on current restoration standards, techniques and expected climate conditions.
Key accounting estimate | Close-down, restoration and environmental obligations |
The most significant assumptions and estimates used in calculating the provision are: •Closure timeframes. The weighted average remaining lives of operations is shown above. Some expenditure may be incurred before closure while the operation as a whole is in production. •The length of any post-closure monitoring period. This will depend on the specific site requirements and the availability of alternative commercial arrangements; some expenditure can continue into perpetuity. The Rio Tinto Kennecott closure and environmental remediation provision includes an allowance for ongoing monitoring and remediation costs, including groundwater treatment, of approximately US$ •The probability weighting of possible closure scenarios. The most significant impact of probability weighting is at the Pilbara operations (Iron Ore) relating to infrastructure, and incorporates the expectation that some infrastructure will be retained by the relevant State authorities post closure. The assignment of probabilities to this scenario reduces the closure provision by US$ •Appropriate sources on which to base the calculation of the discount rate. The discount rate, by nature, is subjective and therefore sensitivities are shown below for how the provision balance would change if discounted at alternative discount rates. There is significant estimation uncertainty in the calculation of the provision and cost estimates can vary in response to many factors including: •changes to the relevant legal or local/national government requirements and any other commitments made to stakeholders •review of remediation and relinquishment options •additional remediation requirements identified during the rehabilitation •the emergence of new restoration techniques •precipitation rates and climate change •change in foreign exchange rates •change in the expected closure date •change in the discount rate. Experience gained at other mine or production sites may also change expected methods or costs of closure, although elements of the restoration and rehabilitation can be unique to each site. Generally, there is relatively limited restoration and rehabilitation activity and historical precedent elsewhere in the Group, or in the industry as a whole, against which to benchmark cost estimates. The expected timing of expenditure can also change for other reasons, for example because of changes to expectations relating to Ore Reserves and Mineral Resources, production rates, renewal of operating licences or economic conditions. Changes in closure cost estimates at the Group’s ongoing operations could result in a material adjustment to assets and liabilities in the next 12 months and would also impact the depreciation and the unwinding of discount in future years. Changes to closure cost estimates for closed operations, and changes to environmental cost estimates at any operation, could cause a material adjustment to the income statement and closure liability. We do not consider that there is significant risk of a change in estimates for these liabilities causing a material adjustment to the income statement in the next 12 months. Any new environmental incidents may require a material provision but cannot be predicted. Project-specific risks are embedded within the cash flows which are based on a central case estimate of closure activities assuming that the obligation is fulfilled by the Group. These cash flows are then discounted, as mentioned above, using a consistent discount rate applied to all locations. | |
Impact of climate change on our business | Close-down, restoration and environmental costs |
The underlying costs for closure have been estimated with varying degrees of precision based on a function of the age of the underlying asset and proximity to closure. For assets within 10 years of closure, closure plans and cost estimates are supported by detailed studies which are refined as the closure date approaches. These closure studies consider climate change and plan for resilience to expected climate conditions with a particular focus on precipitation rates. For new developments, consideration of climate change and ultimate closure conditions are an important part of the approval process. For longer-lived assets, closure provisions are typically based on conceptual level studies that are refreshed at least every 5 years; these are evolving to incorporate greater consideration of forecast climate conditions at closure. | |
Annual Report on Form 20-F 2025 | 195 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
14 Close-down, restoration and environmental provisions continued
Close-down, restoration and environmental provisions are based on risk-adjusted cash flows expressed in real terms. On 30 June 2024, we
revised the closure discount rate from 2.0 % to 2.5 %, applied prospectively from that date. We reassessed the closure discount rate in the
current year and continue to consider the real rate of 2.5 % is the most appropriate rate to use.
At 31 December 2025 | At 31 December 2024 | |||||
Capitalised within “Property, plant and equipment” US$m | Charged/(credited) to the income statement US$m | Total increase/ (decrease) in provision US$m | Capitalised within “Property, plant and equipment” US$m | Charged/(credited) to the income statement US$m | Total increase/ (decrease) in provision US$m | |
Discount rate decreased to | ||||||
Discount rate increased to | ( | ( | ( | ( | ( | ( |
15 Deferred taxation
The Group’s accounting policy in relation to deferred taxation is outlined within note 10.
The movement in deferred tax (liabilities)/assets during the year is as follows.
2025 US$m | 2024 US$m | |
At 1 January | ||
Adjustment on currency translation | ( | |
(Charged)/credited to the income statement | ( | |
(Charged) to the statement of comprehensive income(a) | ( | ( |
Newly consolidated operations(b) | ( | |
Other movements(c) | ( | ( |
At 31 December | ||
Comprising: | ||
– deferred tax assets(d)(e) | ||
– deferred tax liabilities(f) | ( | ( |
required by IAS 12. The closing deferred tax assets and liabilities, prior to this offsetting of balances, are shown below.
Deferred tax assets | Deferred tax liabilities | Credited/(charged) to the income statement | ||||
2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Tax losses(d) | – | – | ( | |||
Tax credits(d) | – | – | ( | |||
Provisions and other liabilities | – | – | ||||
Capital allowances | ( | ( | ( | ( | ||
Post-retirement benefits | ( | ( | ||||
Unrealised exchange losses | ( | ( | ( | ( | ||
Unremitted earnings(f) | – | – | ( | ( | ( | |
Capitalised and accrued interest | – | – | ( | ( | ( | ( |
Other temporary differences | ( | ( | ( | |||
Total | ( | ( | ( | |||
(a)The amounts (charged) directly to the statement of comprehensive income include provisions for tax on cash flow hedges and on remeasurement gains/(losses) on pension schemes
and on post-retirement healthcare plans.
(b)Newly consolidated operations relates to the acquisition of Arcadium Lithium plc. Refer to note 5 for details.
(c)Other movements includes deferred tax relating to unremitted earnings of equity accounted units.
(d)Recognised deferred tax assets of US$1,133 million (2024: US$1,293 million) are subject to expiry if not recovered within certain time limits as specified in local tax legislation and
investment agreements. Of those recognised assets, US$16 million (2024: US$66 million) would expire within one year if not used, US$285 million (2024: US$93 million) would expire
within one to 5 years, and US$832 million (2024: US$1,134 million) would expire in more than 5 years.
(e)Recognised and unrecognised deferred tax assets are shown in the table on page 196 and totalled US$11,271 million at 31 December 2025 (2024: US$9,994 million). Of this total,
US$4,288 million has been recognised as deferred tax assets (2024: US$4,016 million), leaving US$6,983 million (2024: US$5,978 million) unrecognised, as recovery is not considered
probable.
(f)Deferred tax liabilities are not recognised on the unremitted earnings of subsidiaries and joint ventures totalling US$2,790 million (2024: US$2,152 million) where the Group is able to control the
timing of the remittance and it is probable that there will be no remittance in the foreseeable future. If these earnings were remitted, tax of US$146 million (2024: US$99 million) would be payable.
Annual Report on Form 20-F 2025 | 196 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
Other relevant judgements | Recoverability of deferred tax assets |
In considering the recoverability of deferred tax assets, judgement is required regarding the extent to which certain risk factors are likely to affect the recovery of these assets. These risk factors include the risk of expiry of losses prior to utilisation, the impact of other legislation or tax regimes, such as minimum taxes, and consideration of factors that lead to the generation of losses or other deferred tax assets. IAS 12 requires us to consider whether taxable profits will be available against which deferred tax assets may be utilised. The Mongolian Tax Authority has issued a number of tax assessments dating back to 2013, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. The matters under dispute have been referred to international arbitration. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the amount and/or recovery of recognised deferred tax items, including those in respect of amounts accrued and payable in the future. The issuance of the arbitration award on matters of this complexity can typically take longer than 12 months to conclude following the International Arbitration hearings, which occurred in September 2025. | |
The recognised amounts in the table below do not include deferred tax assets that have been netted off against deferred tax liabilities.
Recognised | Unrecognised | |||
At 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Australia | ||||
Mongolia(a) | ||||
Canada | ||||
US(b) | ||||
UK | ||||
France | ||||
Other countries | ||||
Total(c)(d) | ||||
(a)Deferred tax assets recognised in Mongolia are in relation to anticipated future deductions and, in 2024, also included US$419 million from tax losses that expire if not recovered against taxable
profits within 8 years. Deferred tax assets have been calculated in accordance with the Oyu Tolgoi Investment Agreement and Mongolian legislation. The interpretation of the Investment Agreement
by the Mongolian Tax Authority is under dispute and has been referred to international arbitration. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a
material impact on the amount and/or period of recovery of deferred tax assets.
(b)Although our US Group companies expect to generate sufficient taxable profits to utilise existing Federal deferred tax assets, the application of the new Corporate Alternative Minimum
Tax (CAMT) rules has resulted in a position where the future tax benefit derived from utilisation of Federal deferred tax assets is limited and consequently these deferred tax assets are
included as “unrecognised” in this table.
(c)US$2,892 million (2024: US$2,561 million) of the unrecognised assets relate to realised or unrealised capital losses, the recovery of which depends on the existence of capital gains in
future years. There are time limits, the shortest of which is one year , for the recovery of US$375 million of the unrecognised assets (2024: US$249 million).
(d)In addition to the unrecognised deferred tax assets in this table, the Group has accumulated UK foreign tax credits of US$1.5 billion (2024: US$1.4 billion). The credits are not refundable
but would be available, if needed, to shelter any UK tax in respect of profits arising in the Escondida business.
16 Inventories
Inventories are measured at the lower of cost and net realisable value, primarily on a weighted average cost basis. Third-party production
purchased for our own use that is ordinarily interchangeable in accordance with IAS 2 “Inventories” is valued on the same basis, jointly with
our own production. Average costs are calculated by reference to the cost levels experienced in the relevant month together with those in
opening inventory.
The cost of raw materials and purchased components, and consumable stores, is the purchase price. The cost of work in progress, and
finished goods and goods for resale, is generally the cost of production, including directly attributable labour costs, materials and contractor
expenses, the depreciation of assets used in production and production overheads.
Work in progress includes ore stockpiles and other partly processed material. Stockpiles represent ore that has been extracted and is
available for further processing. If there is significant uncertainty as to if and when the stockpiled ore will be processed, the cost of such ore
is expensed as mined. If the ore will not be processed within 12 months after the balance sheet date, it is included within non-current assets
and net realisable value is calculated on a discounted cash flow basis. Quantities of stockpiled ore are assessed primarily through surveys
and assays. Certain estimates, including expected metal recoveries, are calculated using available industry, engineering and scientific data,
Annual Report on Form 20-F 2025 | 197 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
2025 US$m | 2024 US$m | |
Raw materials and purchased components | ||
Consumable stores | ||
Work in progress | ||
Finished goods and goods for resale | ||
Total inventories | ||
Comprising: | ||
Expected to be used within one year | ||
Expected to be used after more than one year | ||
Total inventories |
During 2025, the Group recognised a net inventory write-off of US$28 million (2024: US$49 million write-off). This included inventory write-
offs of US$82 million (2024: US$77 million) partly offset by a write-back of previously written down inventory due to an increase in realisable
values amounting to US$54 million (2024: US$28 million).
At 31 December 2025, US$1,072 million (2024: US$947 million) of inventories were pledged as security for liabilities.
17 Receivables and other assets
Recognition and measurement
Financial assets (except provisionally priced receivables) which are held under a hold to collect business model and have cash flows that
meet the “solely payments of principal and interest” (SPPI) criteria are recognised at amortised cost. Provisionally priced receivables are
measured at fair value through profit or loss with subsequent fair value gains or losses taken to the income statement.
As a part of our working capital management, we offer receivables factoring and letter of credit programs for our customers/receivables. For our
receivables under letter of credit programs, the business model of “hold to collect” has not changed and these continue to be recognised at amortised
cost, as the sale of the letter of credit is made close to maturity of receivables and discounting costs are immaterial. The receivables under our global
factoring program do not meet the “hold to collect” model and therefore are recognised at fair value through profit or loss and continue to be classified
as trade receivables within operating cash flows. US$697 million of receivables (2024: US$588 million) are subject to our factoring program and
US$965 million (2024: US$510 million) of receivables subject to a letter of credit discounting program have been transferred to the participating banks
and derecognised at the reporting date.
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Trade receivables(a) | ||||||
Other financial receivables(a) | ||||||
Other receivables(b) | ||||||
Prepayment of tolling charges to jointly controlled entities(c) | ||||||
Pension surpluses (note 29) | ||||||
Other prepayments | ||||||
Total(d) | ||||||
(a)At 31 December 2025, trade receivables and other financial receivables are stated net of allowances for expected credit losses of US$73 million (2024: US$72 million). We apply the
“simplified approach” to trade receivables and receivables relating to net investment in finance leases and a “general approach” to all other financial assets.
(b)At 31 December 2025, other receivables include US$376 million (2024: US$333 million) related to Energy Resources of Australia Ltd’s (ERA) deposit held in a trust fund which is controlled by the
Government of Australia. ERA are entitled to reimbursement from the fund once specific phases of rehabilitation relating to the Ranger Project are completed. The fund is outside the scope of IFRS 9.
(c)These prepayments will be charged to Group operating costs as tolling services are rendered and product processing occurs.
(d)There is no material element of receivables and other assets that is interest-bearing or financing in nature. The fair value of current trade and other receivables and the majority of
Credit risk related to receivables
Our Commercial team manages customer credit risk by reference to our established policy, procedures and controls. The team establishes credit limits
for all of our customers. Where customers are rated by an independent credit rating agency, these ratings are used as a guide to set credit limits. Where
there are no independent credit ratings available, we assess the credit quality of the customer through a credit rating model and assign appropriate credit
limits. The Commercial team monitors outstanding customer receivables regularly and highlights any credit concerns to senior management.
Receivables to high-risk customers are often secured by letters of credit or other forms of credit enhancement.
The expected credit loss on our trade receivable portfolio is insignificant.
Annual Report on Form 20-F 2025 | 198 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
18 Trade and other payables
Recognition and measurement
Trade payables are measured at amortised cost, with the exception of provisionally priced contracts which are held at fair value as per IFRS 9.
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Trade payables | ||||||
Other financial payables | ||||||
Other payables | ||||||
Deferred income(a) | ||||||
Accruals | ||||||
Employee entitlements | ||||||
Royalties and mining taxes | ||||||
Amounts owed to equity accounted units | ||||||
Total | ||||||
The fair value of trade payables and financial instruments within other financial payables approximates their carrying value.
The Group participates in supplier finance arrangements with designated banks whereby suppliers may elect to receive early payment of their invoice from
a third-party bank by factoring their receivable from Rio Tinto. These arrangements do not modify the terms of the original liability with respect to either
counterparty terms, settlement date or amount due. Although they are open to a wide range of suppliers, we typically see a take-up for suppliers with
payment terms ranging from 60 to 105 days, similar to the prior year. For comparable trade payables that are not part of supplier finance arrangements, the
range of payment terms are similar. Use of the early settlement facility is voluntary and at the suppliers' discretion on an invoice-by-invoice basis. Financial
liabilities subject to supplier finance arrangements, therefore, continue to be classified as trade payables with cash outflows showing within operating cash
flows. There were no significant non-cash changes in the carrying amount of the trade payables included in the Group's supplier finance arrangements.
As at 31 December 2025, the carrying value of the financial liabilities that are part of supplier finance arrangements presented within trade
payables amounts to US$622 million (2024: US$714 million), of which US$574 million (2024: US$603 million) relates to amounts that
19 Other provisions
Recognition and measurement
Other provisions are recognised when it is more likely than not that we will become obliged, legally or constructively, to future expenditure
because of a past event. The provision reflects the best estimate of the expenditure needed to settle the obligation which existed at the
balance sheet date. Where there is sufficient objective evidence of reasonably expected future events (such as changes in technology and
new legislation) we reflect this in the amounts recognised. Other provisions includes provision for legal claims, onerous contracts and claims
for past royalties.
2025 US$m | 2024 US$m | |
Opening balance at 1 January | ||
Adjustment on currency translation | ( | |
Adjustments to mining properties/right-of-use assets: | ||
– increases to existing and new provisions | ||
– change in discount rate | ( | |
Charged/(credited) to profit: | ||
– increases to existing and new provisions | ||
– change in discount rate | ( | |
– unused amounts reversed | ( | ( |
– exchange gain on provisions | ( | |
– amortisation of discount | ||
Utilised in year | ( | ( |
Newly consolidated operations(a) | ||
Transfers and other movements | ( | ( |
Closing balance at 31 December | ||
Balance sheet analysis: | ||
Current | ||
Non-current | ||
Total |
(a)Newly consolidated operations relates to the acquisition of Arcadium Lithium plc. Refer to note 5 for details.
Annual Report on Form 20-F 2025 | 199 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
disciplined manner. Essential capital expenditure remains our priority for capital allocation. It includes sustaining capital to ensure the integrity of our assets,
high-returning replacement projects and decarbonisation investment. This is followed by ordinary dividends within our well-established returns policy. We
then test investment in compelling growth projects against debt management and additional cash returns to shareholders.
Our Board and senior management regularly review the capital structure and liquidity of the Group. They take into account our strategic priorities, the
economic and business conditions, and any identified investment opportunities, along with the expected returns to shareholders. We expect total cash
returns to shareholders over the longer term to be in a range of 40 –60 % of underlying earnings in aggregate through the cycle.
We consider various financial metrics when managing our capital structure and liquidity risk, including total capital, net debt, gearing, the
overall level of borrowings and their maturity profile, liquidity levels, future cash flows, underlying EBITDA and interest cover ratios.
Note | 2025 US$m | 2024 US$m | |
Equity attributable to owners of Rio Tinto (see consolidated balance sheet) | |||
Equity attributable to non-controlling interests (see consolidated balance sheet) | |||
Net debt | 20 | ||
Total capital |
We have access to various forms of financing including corporate bonds issued in debt capital markets through our US Shelf and Euro
Medium Term Note Programmes, commercial paper, project finance, bank loans and credit facilities.
On 6 March 2025, we drew the US$7 billion bridge loan facility to fund the acquisition of Arcadium Lithium plc. Refer to note 5 for further details. The
facility was subsequently repaid on 19 March 2025 following our US$9 billion bond issuance of fixed and floating rate SEC-registered debt securities
on 14 March 2025. The Group also has an existing US$7.5 billion multi-currency revolving credit facility which matures in November 2028. This
facility remained undrawn throughout the year. At 31 December 2025, the Group’s subsidiaries had aggregate committed borrowing facilities of
US$742 million (2024: US$738 million) available. These amounts are available for use by the respective holders of each facility only and are not
available for use across the Group.
2025 | 2024 | |
Long-term rating | A/A/A1 | A/NR/A1 |
Short-term rating | A-1/F1/P-1 | A-1/NR/P-1 |
Outlook | Stable/Stable/Stable | Stable/NR/Stable |
(a)The Group did not have a solicited credit rating (NR) from Fitch Ratings Limited as at 31 December 2024.
Our unified credit status is maintained through cross guarantees, which means the contractual obligations of each of Rio Tinto plc and Rio
Tinto Limited are automatically guaranteed by the other.
payments as at 31 December. When the amount payable is not fixed, the amount disclosed is determined by reference to the conditions
existing at the end of the reporting period. This will, therefore, not necessarily agree with the amounts disclosed as the carrying value.
2025 | 2024 | |||||||||
(Outflows)/Inflows | Within 1 year or on demand US$m | Between 1 and 2 years US$m | Between 2 and 5 years US$m | After 5 years US$m | Total US$m | Within 1 year or on demand US$m | Between 1 and 2 years US$m | Between 2 and 5 years US$m | After 5 years US$m | Total US$m |
Non-derivative financial liabilities | ||||||||||
Trade and other financial payables(a) | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Expected lease liability payments | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Borrowings before swaps | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Expected future interest payments(a) | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Other financial liabilities | ( | ( | ||||||||
Derivative financial liabilities(b) | ||||||||||
Derivatives related to net debt – net settled | ( | ( | ( | ( | ( | ( | ( | ( | ( | |
Derivatives related to net debt – gross settled(a) | ||||||||||
–gross inflows | ||||||||||
–gross outflows | ( | ( | ( | ( | ( | ( | ( | ( | ||
Derivatives not related to net debt – net settled | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Derivatives not related to net debt – gross settled | ||||||||||
–gross inflows | ||||||||||
–gross outflows | ( | ( | ( | ( | ||||||
Total | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
(a)The interest payable at the year end is removed from trade and other financial payables and shown within expected future interest payments and derivatives related to net debt. Interest
payments have been projected using interest rates applicable at the end of the applicable financial year. Where debt is subject to variable interest rates, future interest payments are
subject to change in line with market rates.
(b)The maturity grouping is based on the earliest payment date.
Our weighted average debt maturity including leases and derivatives related to debt was approximately 11 years (2024: 11 years ).
Annual Report on Form 20-F 2025 | 200 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
20 Net debt
2025 | ||||||
Financial liabilities | ||||||
Borrowings excluding overdrafts (note 21)(a) US$m | Lease liabilities (note 22)(b) US$m | Derivatives related to net debt (note 24)(c) US$m | Cash and cash equivalents including overdrafts (note 23)(a) US$m | Other investments (note 24)(d) US$m | Net debt US$m | |
At 1 January | ( | ( | ( | ( | ||
Foreign exchange adjustment | ( | ( | ||||
Net cash movements excluding exchange movements | ( | ( | ( | ( | ||
Newly consolidated operations(e) | ( | ( | ( | |||
Other non-cash movements | ( | ( | ( | |||
At 31 December | ( | ( | ( | ( | ||
2024 | ||||||
Financial liabilities | Other assets | |||||
Borrowings excluding overdrafts (note 21)(a) US$m | Lease liabilities (note 22)(b) US$m | Derivatives related to net debt (note 24)(c) US$m | Cash and cash equivalents including overdrafts (note 23)(a) US$m | Other investments (note 24)(d) US$m | Net debt US$m | |
At 1 January | ( | ( | ( | ( | ||
Foreign exchange adjustment | ( | ( | ( | ( | ||
Cash movements excluding exchange movements | ( | ( | ( | |||
Other non-cash movements | ( | ( | ||||
At 31 December | ( | ( | ( | ( | ||
(a)Borrowings excluding overdrafts of US$21,924 million (2024:US$12,431 million) differs from Borrowings on the balance sheet as it excludes bank overdrafts of US$7 million
(2024: US$11 million) which has been included in cash and cash equivalents for the net debt reconciliation.
(b)Other non-cash movements in lease liabilities include the net impact of additions, modifications and terminations during the year.
(c)Included within derivatives related to net debt are interest rate and cross-currency interest rate swaps that are in hedge relationships with the Group’s debt.
(d)Other investments includes US$363 million of term deposits with a maturity greater than 3 months. In 2024, the entire balance of US$212 million comprised highly liquid financial assets held in a
separately managed portfolio of fixed income instruments, classified as held for trading.
exchange contracts:
2025 | 2024 | ||||||
Net debt by currency | Borrowings excluding overdrafts US$m | Lease liabilities US$m | Derivatives related to net debt US$m | Cash and cash equivalents US$m | Other investments US$m | Net debt US$m | Net debt US$m |
US dollar | ( | ( | ( | ( | ( | ||
Australian dollar | ( | ( | |||||
Canadian dollar | ( | ( | ( | ( | |||
South African rand | ( | ||||||
Other | ( | ||||||
Total | ( | ( | ( | ( | ( | ||
21 Borrowings
Recognition and measurement
Borrowings are recognised initially at fair value, net of transaction costs incurred, and are subsequently measured at amortised cost.
Our policy is to predominantly borrow in US dollars (USD) at floating interest rates, either directly or through the use of derivatives, as:
•the majority of our sales are in USD
•historically a lower cost of borrowing has been observed from maintaining a floating rate exposure
•historically there has been a correlation between interest rates and commodity prices.
For bonds with fixed interest rates, we generally enter into interest rate swaps to convert them to floating rates. The tenor of the interest rate
swaps is sometimes shorter than the tenor of the bond which means we remain exposed to long-term fixed-rate funding. As interest rate
swaps mature, new medium-dated swaps are generally transacted to maintain this floating rate exposure; however, we may elect to maintain
a proportion of fixed-rate funding after considering market conditions, the cost and form of funding, and other related factors.
We have designated the swaps to be in fair value hedge relationships with the corresponding period of future interest payments of the respective debt.
Where we borrow non-US denominated debt, we generally enter into cross-currency interest rate swaps to convert the principal and fixed
interest coupon to a USD nominal with a USD interest coupon.
Annual Report on Form 20-F 2025 | 201 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
21 Borrowings continued
Borrowings
Carrying value 2025 US$m | Carrying value 2024 US$m | Nominal value of hedged item 2025 US$m | Nominal value of hedged item 2024 US$m | Weighted average interest rate after swaps (where applicable) | Swap maturity (where applicable) | |
Rio Tinto Finance (USA) plc Bonds | ||||||
Rio Tinto Finance (USA) plc Bonds SOFR plus | ||||||
Rio Tinto Finance (USA) plc Bonds | ||||||
Rio Tinto Finance (USA) Limited Bonds | 3 month SOFR + | 2028 | ||||
Alcan Inc. Debentures | 6 month SOFR + | 2028 | ||||
Rio Tinto Finance plc Sterling Bonds | ||||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2030 | ||||
Alcan Inc. Debentures | 6 month SOFR + | 2031 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2032 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2026/2033 | ||||
Alcan Inc. Global Notes | 6 month SOFR + | 2033 | ||||
Alcan Inc. Global Notes | 6 month SOFR + | 2035 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2035 | ||||
Rio Tinto Finance (USA) Limited Bonds | 6 month SOFR + | 2033 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2026 | ||||
Rio Tinto Finance (USA) plc Bonds | ||||||
Rio Tinto Finance (USA) Limited Bonds | 6 month SOFR + | 2028 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2033 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2034 | ||||
Rio Tinto Finance (USA) plc Bonds | 6 month SOFR + | 2035 | ||||
Listed bonds(d) | ||||||
Oyu Tolgoi LLC MIGA Insured Loan SOFR plus | ||||||
Oyu Tolgoi LLC Commercial Banks “B Loan” SOFR plus | ||||||
Oyu Tolgoi LLC Export Credit Agencies Loan | ||||||
Oyu Tolgoi LLC Export Credit Agencies Loan SOFR plus | ||||||
Oyu Tolgoi LLC International Financial Institutions “A Loan” SOFR plus | ||||||
Oyu Tolgoi project finance(d) | ||||||
Other secured loans | ||||||
Other unsecured loans | ||||||
Bank overdrafts | ||||||
Other borrowings(d) | ||||||
Total borrowings(g) | ||||||
Comprising: | ||||||
Current borrowings | ||||||
Non-current borrowings | ||||||
Total borrowings(g) |
(a) | The fair value movements of our borrowings and interest rate swaps that are in fair value hedge relationships are included in note 9. |
(b) | On 14 March 2025, we issued US$ partly used to repay our US$ |
(c) | Rio Tinto has a US$ (2024: US$ |
(d) | Our listed bonds have a fair value of US$ drawn down by Oyu Tolgoi (fair value of US$ million (2024: US$ because of their short maturity, or because they carry floating rates of interest. |
(e) | These borrowings relate to the Oyu Tolgoi LLC project finance facility and the due dates stated represent the final repayment date. The interest rates stated are pre-completion and will increase by |
(f) | Our bank borrowings in Oyu Tolgoi (OT) are subject to financial covenants which require that OT maintains a certain level of debt-equity ratio and a debt service coverage ratio. These covenants are tested at the end of each month. Based on our forecasting, we consider this risk of non-compliance with these covenants to be remote. |
(g) | The Group’s borrowings of US$ financial and general covenants with which the respective borrowers were in compliance as at 31 December 2025 and are expected to be in compliance within 12 months after the reporting date. The non-compliance with these covenants, if not remediated, could permit the lender to immediately call the loan and borrowings. |
Annual Report on Form 20-F 2025 | 202 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
22 Leases
leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources. We apply the scope exemptions in paragraphs 3(e) and
4 of IFRS 16 and do not apply the standard to leases of any assets which would otherwise fall within the scope of IAS 38 “Intangible Assets”.
A significant proportion of our lease arrangements relate to dry bulk vessels and office properties. Other leases include land and non-mining
rights, warehouses, ports, equipment and vehicles.
We recognise all lease liabilities and corresponding right-of-use assets on the balance sheet, with the exception of short-term (12 months or fewer)
and low-value leases, where payments are expensed as incurred. Lease liabilities are recorded at the present value of fixed payments; variable lease
payments that depend on an index or rate; amounts payable under residual value guarantees; and extension options expected to be exercised.
Where a lease contains an extension option that we can exercise without negotiation, lease payments for the extension period are included in the
liability if we are reasonably certain that we will exercise the option. Variable lease payments not dependent on an index or rate are excluded from the
calculation of lease liabilities at initial recognition. Payments are discounted at the incremental borrowing rate of the lessee, unless the interest rate
implicit in the lease can be readily determined. For lease agreements relating to vessels, ports and properties, non-lease components are excluded
from the future lease payments and recorded separately within operating costs as services are being provided. The lease liability is measured at
amortised cost using the effective interest method. The right-of-use asset arising from a lease arrangement at initial recognition reflects the lease
liability, initial direct costs, lease payments made before the commencement date of the lease, and capitalised provision for dismantling and
restoration of the underlying asset, less any lease incentives.
We recognise depreciation on right-of-use assets and interest on lease liabilities in the income statement over the lease term. Repayments of
lease liabilities are separated into a principal portion (presented within financing activities) and an interest portion (which the Group presents
in operating activities) in the cash flow statement. Payments made before the commencement date are included within financing activities
unless they in substance represent investing cash flows, for example where pre-commencement cash flows are significant relative to
aggregate cash flows of the leasing arrangement.
Other relevant judgements | Accounting for renewable power purchase agreements |
We have to apply judgement for certain contractual arrangements, such as renewable energy power purchase agreements (PPAs), in evaluating whether we have the right to obtain substantially all of the economic benefits from the use of the renewable energy assets, including the right to obtain physical energy these assets generate. Based on our evaluation, we determine whether an arrangement is a lease, an executory contract or a derivative. An immaterial amount was recognised as a lease at both 31 December 2025 and 31 December 2024 for a fixed component of the QMM renewable PPA. The Amrun and Jinbi renewable PPAs are leases which have not yet commenced, and are included in our decarbonisation capital commitments (note 37). | |
Description of payment | Included within | 2025 US$m | 2024 US$m |
Principal lease payments | Cash flows from financing activities | ||
Interest payments on leases | Cash flows from operating activities | ||
Short life leases | Net operating costs | ||
Variable lease components | Net operating costs | ||
Low value leases (>12 months in duration) | Net operating costs | ||
Total lease payments |
2025 US$m | 2024 US$m | |
Lease liabilities | ||
Due within 1 year | ||
Between 1 and 3 years | ||
Between 3 and 5 years | ||
More than 5 years | ||
Total undiscounted cash payments expected to be made | ||
Effect of discounting | ( | ( |
Present value of minimum lease payments | ||
Comprising: | ||
Current lease liabilities per the balance sheet | ||
Non-current lease liabilities per the balance sheet | ||
Total lease liabilities |
At 31 December 2025, commitments for leases not yet commenced were US$785 million (2024: US$405 million) and commitments relating
to short-term leases which had already commenced were US$217 million (2024: US$182 million). These commitments are not included in
Annual Report on Form 20-F 2025 | 203 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
23 Cash and cash equivalents
For the purpose of the balance sheet, cash and cash equivalents covers cash on hand, deposits held with banks for less than 3 months, and
short-term, highly liquid investments (mainly money market funds and reverse repurchase agreements) that are readily convertible into
known amounts of cash and which are subject to insignificant risk of changes in value. Bank overdrafts are shown as current liabilities on the
Note | 2025 US$m | 2024 US$m | |
Cash at bank and in hand | |||
Money market funds, reverse repurchase agreements and other cash equivalents | |||
Total cash and cash equivalents per consolidated balance sheet | |||
Bank overdrafts repayable on demand (unsecured) | 21 | ( | ( |
Total cash and cash equivalents per consolidated cash flow statement |
Restricted cash and cash equivalent analysis
Cash and cash equivalents of US$515 million (2024: US$515 million) are held in countries where there are restrictions on remittances. Of
this balance, US$70 million (2024: US$194 million) could be used to repay subsidiaries’ third-party borrowings.
There are also restrictions on a further US$1,453 million (2024: US$1,150 million) of cash and cash equivalents, the majority of which is held
by partially owned subsidiaries and is not available for use in the wider Group due to legal and contractual restrictions currently in place. Of
this balance, US$969 million (2024: US$157 million) could be used to repay these subsidiaries’ third-party borrowings.
Credit risk related to cash and cash equivalents
Our Treasury team manages credit risk from our investing activities in accordance with a credit risk framework which sets the risk appetite. We make
investments of surplus funds only with approved investment grade (BBB+ and above) counterparties who have been assigned specific credit limits. The
limits are set to minimise the concentration of credit risk and therefore mitigate the potential for financial loss through counterparty failure.
At 31 December 2025, we held US$1,114 million (2024: nil ) of reverse repurchase agreements, measured at amortised cost and reported
within cash and cash equivalents as they are highly liquid products maturing within 3 months. As at 31 December 2025, we accepted
collateral of investment-grade quality in respect of these reverse repurchase agreements, with a fair value of US$1,165 million (2024: nil ).
Collateral is not recognised on our balance sheet and if the counterparty were to default we would be able to sell it.
24 Other financial assets and liabilities
Recognition and measurement
Derivatives are measured at fair value through profit or loss unless they are designated as hedging instruments. For details about our
hedging strategy and risks, refer to note 25. The Group has made an irrevocable choice to measure investments in equity shares at fair value
through other comprehensive income (FVOCI) except for those held for trading purposes.
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Derivatives not related to net debt | ||||||
Derivatives related to net debt | ||||||
Equity shares and quoted funds | ||||||
Other investments, including loans(a) | ||||||
Loans to equity accounted units(b) | ||||||
Total other financial assets | ||||||
(a)Current “Other investments, including loans” include US$363 million of term deposits with a maturity greater than 3 months. In 2024, this balance included US$212 million of highly liquid
financial assets held in a separately managed portfolio of fixed income instruments, classified as held for trading. Both of these investments are included within our net debt definition.
(b)This relates to loans of US$842 million due from WCS Rail and Port Holding Entities, net of expected credit loss.
Credit risk related to other financial assets
Our Treasury team manages credit risk in relation to applicable other financial assets in accordance with our counterparty credit framework (which is
reviewed biannually) to minimise our counterparty risk and mitigate financial loss through counterparty failure. Derivatives and investments with any
given counterparty are required to be within the credit limit (based on a quantitative credit risk model) for that counterparty as approved by the
Group’s Financial Risk Management Committee. Our investments are dictated by the Group’s investment policy which sets out a number of criteria
for eligible investments, including credit quality, duration, maturity and concentration limits.
2025 | 2024 | |||||
Non-current US$m | Current US$m | Total US$m | Non-current US$m | Current US$m | Total US$m | |
Derivatives not related to net debt | ||||||
Derivatives related to net debt | ||||||
Other financial liabilities | ||||||
Total other financial liabilities | ||||||
Annual Report on Form 20-F 2025 | 204 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
24 Other financial assets and liabilities continued
Offsetting and enforceable master netting agreements
When we have a legally enforceable right to set-off our financial assets and liabilities and an intention to settle on a net basis, or realise the asset and
settle the liability simultaneously, we report the net amount in the consolidated balance sheet. Agreements with derivative counterparties are based
on the International Swaps and Derivatives Association master netting agreements that do not meet the criteria for offsetting, but allow for the related
25 Financial instruments and risk management
We classify our financial assets into those held at amortised cost and those to be measured at fair value either through the profit and loss
(FVTPL) or through other comprehensive income (FVOCI) based on the business model for managing the financial assets and the
contractual terms of the cash flows.
Classification of financial asset | Amortised cost | Fair value through profit and loss | Fair value through other comprehensive income |
Recognition and initial measurement | At initial recognition, trade receivables that do not have a significant financing component are recognised at their transaction price. Other financial assets are initially recognised at fair value plus related transaction costs. | The asset is initially recognised at fair value with transaction costs immediately expensed to the income statement. | The asset is initially recognised at fair value. |
Subsequent measurement | Amortised cost using the effective interest method. | Fair value movements are recognised in the income statement. | Fair value gains or losses on revaluation of such equity investments, including any foreign exchange component, are recognised in other comprehensive income. Dividends are recognised in the income statement when the right to receive payment is established. |
Derecognition | Any gain or loss on derecognition or modification of a financial asset held at amortised cost is recognised in the income statement. | Not applicable. | When the equity investment is derecognised, there is no recycling of fair value gains or losses previously recognised in other comprehensive income to the income statement. |
Borrowings and other financial liabilities (including trade payables but excluding derivative liabilities) are recognised initially at fair value, net
of transaction costs incurred, and are subsequently measured at amortised cost.
Financial risk management objectives
Our financial risk management objectives are:
•to have in place a robust capital structure to manage the organisation through the cycle
•to allow our financial exposures, mainly commodity price, foreign exchange and interest rates to, in general, float with the market.
Our Treasury and Commercial teams manage the following key economic risks generated from our operations:
•capital and liquidity risk
•credit risk
•interest rate risk
•commodity price risk
•foreign exchange risk.
These teams operate under a strong control environment, within approved limits.
(i) Capital and liquidity risk
Our capital and liquidity risk arises from the possibility that we may not be able to settle or meet our obligations as they fall due. Refer to our
capital and liquidity section on page 199.
As disclosed in note 18, under the supplier finance arrangements, the Group makes payments to participating banks on the same date as
stated on the vendor’s invoice, and as such these arrangements do not give rise to additional liquidity risk.
(ii) Credit risk
Credit risk is the risk that our customers, or institutions that we hold investments with, are unable to meet their contractual obligations. We
are exposed to credit risk in our operating activities (primarily from customer trade receivables); and from our investing activities that include
government securities (primarily US Government), corporate and asset-backed securities, reverse repurchase agreements, money market
funds, and balances with banks and financial institutions. Refer to note 17, note 23 and note 24 for an understanding of the size of, and the
credit risk related to, each balance.
Our interest rate management policy is generally to borrow and invest at floating interest rates. However, we may elect to maintain a
proportion of fixed-rate funding after considering market conditions, the cost and form of funding, and other related factors. After the impact of
hedging, 76 % (2024: 76 %) of our borrowings (including leases) were at floating rates. To understand how we manage interest rate risk, refer
to note 21.
Annual Report on Form 20-F 2025 | 205 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
25 Financial instruments and risk management continued
Sensitivity to interest rate changes
Based on our floating rate financial instruments outstanding at 31 December 2025, the effect on our net earnings of a 100 basis point
increase in US dollar Secured Overnight Financing Rate (SOFR) interest rates, with all other variables held constant, would be an expense
of US$72 million (2024: US$23 million). This reflects the net debt position in 2025 and 2024.
We are also exposed to interest rate volatility within shareholders’ equity. This is because we have designated some cross-currency interest
rate swaps to be in a cash flow hedge relationship with our 2029 British pound sterling (GBP) bond. As we receive fixed GBP interest and
pay fixed USD interest, any change in the GBP interest rate or the USD interest rate will have an impact on the fair value of the derivative
within shareholders’ equity. With all factors remaining constant, a 100 basis point increase in interest rates in each of the currencies in
isolation would impact equity, before tax, by a charge of US$24 million (2024: US$27 million) for GBP and a credit of US$29 million (2024:
US$35 million) for USD. A 100 basis point decrease would have broadly the same impact in the opposite direction.
Our broad commodity base means our exposure to commodity prices is diversified. Our normal policy is to sell our products at prevailing
market prices. For certain physical commodity transactions for which the price was fixed at the contract date, we enter into derivatives to
achieve the prevailing market prices at the point of revenue recognition. We do not generally consider that using derivatives to fix commodity
prices would provide a long-term benefit to our shareholders.
Exceptions to this rule are subject to limits, and to defined market risk tolerances and internal controls.
Substantially all iron ore and aluminium sales are reflected at final prices at each reporting period. Final prices for copper concentrate,
however, are normally determined between 30 and 180 days after delivery to our customer.
At 31 December 2025, we had 200 million pounds of copper sales (31 December 2024: 186 million pounds) which were provisionally priced
at US 566 cents per pound (2024: US 397 cents per pound). The final price of these sales will be determined during the first half of 2026. A
net earnings by US$63 million (2024: US$46 million).
Power costs represent a significant portion of costs in our aluminium business and, therefore, we are exposed to fluctuations in power prices.
To mitigate our exposure to changes in the relationship between aluminium prices and power prices, we have a number of power purchase
contracts that are directly linked to the daily official LME cash ask price for high-grade aluminium (LME price) and to the US Midwest
Transaction Premium (Midwest premium). We have also entered into renewable power purchase agreements (PPAs), which are contract for
differences (CfD) and are accounted for as derivatives.
contracts and renewable power purchase agreements. The following table summarises these hedging relationships.
Embedded derivatives separated from aluminium power contracts | Renewable power purchase agreements | |
Hedging instrument | Nominal aluminium forward sales | Power purchase agreement |
Hedged item | Highly probably forecast aluminium sales priced using LME price and Midwest premium | Highly probable future energy purchases at spot electricity prices |
Hedging ratio | 1:1 | |
Accounting treatment of ineffective portion and source of ineffectiveness | Differences in the timing of the cash flows between the hedged item and the hedging instrument, non-zero initial fair value of the hedging instrument, the existence of a cap on the Midwest premium in the hedging instrument and counterparty credit risk. | Credit risk of supplier/Rio Tinto, unexpected escalation in CPI/ aluminium prices. |
Hedge ineffectiveness is included in “net operating costs” (within “other external costs” - refer to note 7) in the income statement. | ||
Accounting treatment of effective portion | The effective portion of the change in the fair value of the hedging instrument is included in other comprehensive income, and is accumulated in the cash flow hedge reserve. The amount that is recognised in other comprehensive income is limited to the lesser of the cumulative change in the fair value of the hedging instrument and the cumulative change in the fair value of the hedged item, in absolute terms. | |
On realisation of the hedges, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement. | On realisation of the hedges, realised amounts are reclassified from reserves to power cost in the income statement. | |
as at 31 December:
2025 | 2024 | |||||||||
Nominal aluminium forward sales embedded in power contracts | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total | Within 1 year | Between 1 and 5 years | Between 5 and 10 years | After 10 years | Total |
Nominal amount (tonnes) | ||||||||||
Nominal amount (US$m) | ||||||||||
Nominal future energy purchase in power purchase agreements | ||||||||||
Nominal amount (GW) | ||||||||||
Nominal amount (US$m) | ||||||||||
Annual Report on Form 20-F 2025 | 206 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
25 Financial instruments and risk management continued
Hedging instrument | Hedged item | |||||||
Nominal US$m | Carrying amount(a) US$m | Change in fair value in the period US$m | Cash flow hedge reserve(b) US$m | Change in fair value in the period US$m | Total hedging gains/ (losses) recognised in reserves US$m | Hedge ineffectiveness in the period gains US$m | (Gains)/losses reclassified from reserves to income statement US$m | |
Nominal aluminium forward sales | Highly probable forecast aluminium sales | |||||||
2025 | ( | ( | ( | ( | ||||
2024 | ( | ( | ( | |||||
Power purchase agreements | Highly probable future energy purchases | |||||||
2025 | ( | ( | ( | |||||
2024 | ( | ( | ( | ( | ( | |||
(a) The carrying amount of US$218 million (2024: US$154 million) is shown within “Other financial assets and liabilities”.
There was no cost of hedging recognised in 2025 (2024: no cost) relating to this hedging relationship.
Key accounting estimate | Power related commodity derivatives |
embedded in power supply agreements, and changes in forward electricity price curves have on renewable PPAs outstanding at
31 December 2025. Any change in price will result in an offsetting change in our future earnings.
Embedded derivatives in aluminium power contracts | Renewable power purchase agreements | ||||
Change in market prices | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | |
Effect on net earnings | + | ( | ( | ||
( | ( | ||||
Effect on equity | + | ( | ( | ||
( | ( | ( | |||
We exclude our “own use contracts” from this sensitivity analysis as they are outside the scope of IFRS 9. Our business units continue to
hold these types of contracts to satisfy their expected purchase, sale or usage requirements.
Impact of climate change on our business | Renewable power purchase agreements |
As part of the program to develop renewable energy solutions for our Queensland aluminium assets, we entered into long-term renewable 2.2 GW PPAs to buy renewable electricity and associated carbon credits to be generated in the future from the Upper Calliope solar farm and the Bungaban wind farm. In 2025, we entered into 2 long term hybrid services agreements with Edify Energy for a total combined capacity of 574 MW solar farm paired with battery energy storage systems. In 2024, our New Zealand Aluminium Smelters signed long term PPAs with electricity generators for a total of 572 MW of a diversified mix of renewable electricity. We also signed PPAs with the Monte Cristo and Monarch Creek wind farm in the US. Renewable power purchase agreements are recorded as derivatives, with net fair value of US$ (2024: US$ unobservable inputs related to future energy prices. | |
The broad geographic spread of our sales and operations means that our earnings, cash flows and shareholders’ equity are influenced by a
wide variety of currencies. The majority of our sales are denominated in USD.
Our operating costs are influenced by the currencies of those countries where our mines and processing plants are located, and by those
currencies in which we buy imported equipment and services. The USD, the Australian dollar (AUD) and the Canadian dollar (CAD) are the
most important currencies influencing our costs. In any particular year, currency fluctuations may have a significant impact on our financial
results. A strengthening of the USD against the currencies in which our costs are partly denominated has a positive effect on our net
earnings. However, a strengthening of the USD reduces the value of non-USD denominated net assets, and therefore total equity.
In most cases, our debt and other financial assets and liabilities, including intragroup balances, are held in the functional currency of the relevant
subsidiary. There are instances where these balances are held in currencies other than the functional currency of the relevant subsidiary. This means
we recognise exchange gains and losses in our income statement (except where they can be taken to equity) as these balances are translated into
the functional currency of the relevant subsidiary. Our income statement also includes exchange gains and losses arising on USD net debt and
intragroup balances. On consolidation, these balances are retranslated to our USD presentational currency and there is a corresponding and
offsetting exchange difference recognised directly in the currency translation reserve. There is no impact on total equity.
Under normal market conditions, we do not consider that active currency hedging of transactions would provide long-term benefits to
shareholders. We review our exposure on a regular basis and will undertake hedging if deemed appropriate. We may deem currency
protection measures appropriate in specific commercial circumstances. Capital expenditures and other significant financial items such as
acquisitions, disposals, tax and dividend cash flows may be economically hedged.
Annual Report on Form 20-F 2025 | 207 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
25 Financial instruments and risk management continued
balances, of a 10 % strengthening in the closing exchange rate of the USD against significant currencies. We deem 10 % to be the annual
exchange rate movement that is reasonably probable (on an annual basis over the long run) for any of our significant currencies and
therefore an appropriate representation for the sensitivity analysis.
2025 | 2024 | |||||
Currency exposure | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m | Closing exchange rate US cents | Effect on net earnings US$m | Impact directly on equity US$m |
Australian dollar | ( | ( | ||||
Canadian dollar | ( | ( | ||||
We calculate sensitivities in relation to the functional currencies of our individual entities. We translate the impact of these on net earnings
into USD at the exchange rates on which the sensitivities are based. The impact to net earnings associated with a 10 % weakening of a
particular currency, shown above, is broadly offset within equity through movements in the currency translation reserve and therefore
generally has no impact on our net assets. The offsetting currency translation movement is not shown in the table above. The impact is
expressed in terms of the effect on net earnings and equity, assuming that each exchange rate moves in isolation. The sensitivities are based
on financial assets and financial liabilities held at 31 December, where balances are not denominated in the functional currency of the
subsidiary or joint operation, and exclude financial assets and liabilities held by equity accounted units. These balances will not remain
constant throughout 2026 and, therefore, this illustrative information should be used with caution.
Measurement” at 31 December.
All instruments shown as being held at fair value have been classified as fair value through the profit and loss unless specifically footnoted.
2025 | 2024 | ||||||||||
Held at fair value | Held at amortised cost US$m | Total US$m | Held at fair value | Held at amortised cost US$m | Total US$m | ||||||
Note | Level 1(a) US$m | Level 2(b) US$m | Level 3(c) US$m | Level 1(a) US$m | Level 2(b) US$m | Level 3(c) US$m | |||||
Assets | |||||||||||
Cash and cash equivalents(d) | 23 | ||||||||||
Investments in equity shares and funds(e) | 24 | ||||||||||
Other investments, including loans(f) | 24 | ||||||||||
Trade and other financial receivables(g) | 17 | ||||||||||
Loans to equity accounted units | 24 | ||||||||||
Forward, option and embedded derivative contracts: designated as hedges(h) | 24 | ||||||||||
Forward, option and embedded derivative contracts, not designated as hedges(h) | 24 | ||||||||||
Derivatives related to net debt(i) | 24 | ||||||||||
Liabilities | |||||||||||
Trade and other financial payables(j) | 18 | ( | ( | ( | ( | ( | ( | ||||
Forward, option and embedded derivatives contracts, designated as hedges(h) | 24 | ( | ( | ( | ( | ||||||
Forward, option and embedded derivatives contracts, not designated as hedges(h) | 24 | ( | ( | ( | ( | ( | ( | ||||
Derivatives related to net debt(i) | 24 | ( | ( | ( | ( | ||||||
Other financial liabilities | 24 | ( | ( | ||||||||
(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 market quoted FX rates, credit default spread, 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. Valuation techniques include discounted
cash flows or closely related listed product, as appropriate.
(c)Valuation is based on inputs that cannot be observed using market data (unobservable inputs), including forward electricity or commodity prices, energy volume or mine production, using valuation
techniques such as discounted cash flows or option pricing models, as appropriate. The change in valuation of our level 3 instruments for the year to 31 December is as follows.
Annual Report on Form 20-F 2025 | 208 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
25 Financial instruments and risk management continued
2025 | 2024 | |
Level 3 financial assets and liabilities | US$m | US$m |
Opening balance | ||
Currency translation adjustments | ( | |
Total realised gains/(losses) included in: | ||
–net operating costs | ( | |
Total unrealised gains included in: | ||
–net operating costs | ||
Total unrealised (losses)/gains transferred into other comprehensive income through cash flow hedges | ( | |
Additions/acquisition of financial assets | ||
Disposals/maturity of financial instruments | ( | ( |
Closing balance | ||
Net gains included in the income statement for assets and liabilities held at year end |
(d)Our Cash and cash equivalents of US$8,872 million (2024: US$8,495 million) includes US$3,725 million (2024: US$4,893 million) relating to money market funds which are treated as
FVTPL under IFRS 9 with the fair value movements reported as finance income.
(e)Investments in equity shares and funds include US$240 million (2024: US$221 million) of equity shares, not held for trading, where we have irrevocably elected to present fair value
gains and losses on revaluation in other comprehensive income. The election is made at an individual investment level.
(f)Other investments, including loans, covers cash deposits in rehabilitation funds, government bonds, managed investment funds and royalty receivables. Royalty receivables include
amounts arising from our previously divested coal businesses with a fair value of US$275 million (2024: US$252 million).
(g)Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with
changes between the provisional price and the final price recorded separately within “Other revenue”. The selling price can be measured reliably for the Group's products, as it operates
in active and freely traded commodity markets. At 31 December 2025, US$1,431 million (2024: US$1,374 million) of provisionally priced receivables were recognised.
(h)Level 3 derivatives mainly consist of derivatives embedded in electricity purchase contracts linked to the LME, Midwest premium and billet premium with terms expiring between 2026
and 2036 (2024: 2025 and 2036). Derivatives related to renewable power purchase agreements are linked to forward electricity prices with terms expiring between 2026 and 2054
(31 December 2024: 2026 and 2054).
(i)Net debt derivatives include interest rate swaps and cross-currency swaps.
(j)Trade and other financial payables comprise trade payables, other financial payables, accruals and amounts due to equity accounted units within note 18.
There were no material transfers between level 1 and level 2, or between level 2 and level 3 in the current or prior year.
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.
Net derivative assets related to our renewable power purchase agreements have a fair value of US$29 million at 31 December 2025 (2024:
net liabilities of US$111 million). The fair value is calculated as the present value of the future contracted cash flows using risk-adjusted
forecast prices including credit adjustments. A 10 % increase in forecast electricity prices over the remaining term of the contracts would
result in a US$520 million (2024: US$499 million) increase in fair value, and a 10 % decrease in forecast electricity prices would result in a
US$521 million (2024: US$500 million) decrease in fair value.
To value 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 is a
net liability of US$320 million at 31 December 2025 (2024: US$132 million).
Annual Report on Form 20-F 2025 | 209 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
Our people
Summarised below are the key financial metrics relating to our people.
26 Average number of employees
Subsidiaries and joint operations | Equity accounted units (Rio Tinto share) | |||||
2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |
Principal locations of employment: | ||||||
Australia and New Zealand | ||||||
Canada | ||||||
UK | ||||||
Europe (excluding UK) | ||||||
Africa | ||||||
US | ||||||
Mongolia | ||||||
Argentina | ||||||
South America (excluding Argentina) | ||||||
India | ||||||
Singapore | ||||||
Other countries(a) | ||||||
Total | ||||||
Employee numbers, which represent the average for the year, include 100 % of employees of subsidiary companies. Employee numbers for
joint operations and equity accounted units are proportional to the Group’s interest under contractual agreements. Average employee
numbers include a part-year effect for companies acquired or disposed of during the year.
Part-time employees are included on a full-time-equivalent basis. Temporary employees are included in employee numbers.
27 Employment costs and provisions
Note | 2025 US$m | 2024 US$m | 2023 US$m | |
Employment costs | ||||
– Wages and salaries | ||||
– Social security costs | ||||
– Net post-retirement charge | 29 | |||
– Share-based payment charge | 28 | |||
Less: charged within movement in provisions (see below) | ( | ( | ( | |
Total employment costs | 7 |
2025 | 2024 | |||
Employment provisions | Pensions and post-retirement healthcare(a) US$m | Other employee entitlements(b) US$m | Total US$m | Total US$m |
At 1 January | ||||
Adjustment on currency translation | ( | |||
Charged/(credited) to profit: | ||||
–increases to existing and new provisions | ||||
–unused amounts reversed | ( | ( | ( | |
Utilised in year | ( | ( | ( | ( |
Remeasurement gains recognised in other comprehensive income | ( | ( | ( | |
Newly consolidated operations(c) | ||||
Transfers and other movements | ||||
At 31 December | ||||
Balance sheet analysis: | ||||
Current | ||||
Non-current | ||||
Total employment provisions | ||||
(a)The main assumptions used to determine the provision for pensions and post-retirement healthcare, and other information, including the expected level of future funding payments in
respect of those arrangements, are given in note 29.
(b)The provision for other employee entitlements includes a provision for long-service leave of US$376 million (2024: US$313 million), based on the relevant entitlements in certain Group
operations, and includes US$82 million (2024: US$24 million) of provision for redundancy and severance payments.
(c)Newly consolidated operations relates to the acquisition of Arcadium Lithium plc. Refer to note 5 for details.
Annual Report on Form 20-F 2025 | 210 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
UK Share Plan
The fair values of Matching and Free share awards are the market value of the shares on the date of award. The awards are settled in equity.
Equity Incentive Plan
Since 2018, all long-term incentive awards have been granted under the 2018 Equity Incentive Plans which allow for awards in the form of
Performance Share Awards (PSA), Management Share Awards (MSA) and Bonus Deferral Awards (BDA) to be granted. In general, these
awards will be settled in equity, including the dividends accumulated from date of award to vesting and therefore the awards are accounted
for in accordance with the requirements applying to equity-settled share-based payment transactions.
The vesting of these awards is dependent on service conditions being met; performance conditions apply.
Awards granted in previous years (since 2018) are subject to a Total Shareholder Return (TSR) performance condition. Awards granted since
2024 are subject to both a TSR performance condition (80 % weighting), and a decarbonisation measure (20 % weighting). The fair value of
the awards subject to a TSR performance condition is calculated using a Monte Carlo simulation model. For the part of the awards subject to
a decarbonisation target, as this is a non-market related performance condition, the number of awards assumed to vest is reviewed at each
accounting date, based on the prevailing projected outcome. Forfeitures prior to vesting are assumed at 5 % per annum of outstanding
awards (2024: 5 % per annum).
The vesting of these awards is dependent on service conditions being met; no performance conditions apply.
The fair value of each award on the day of grant is based on the share price on the day of grant. Forfeitures prior to vesting are assumed at
Bonus Deferral Awards
Bonus Deferral Awards represent the deferral of 50 % of the Short Term Incentive Plan (STIP) award for Executive Directors and Executive
Committee members.
The vesting of these awards is dependent only on service conditions being met. The fair value of each award is based on the share price on
the day of grant. Forfeitures prior to vesting are assumed at 3 % per annum of outstanding awards (2024: 3 % per annum).
Global Employee Share Plans
The Global Employee Share Plans were re-approved by shareholders in 2021. Under these plans, the companies provide a Matching share
award for each Investment share purchased by a participant. The vesting of Matching awards is dependent on service conditions being met
and the continued holding of Investment shares by the participant until vesting. These awards are settled in equity including the dividends
accumulated from date of award to vesting. The fair value of each Matching share on the day of grant is equal to the share price on the date
of purchase less a deduction of 15 % (5 % per annum) for estimated cancellations (caused by employees withdrawing their Investment shares
prior to vesting). In addition, the number of awards expected to vest includes a deduction for expected forfeitures prior to vesting which are
assumed at 5 % per annum of outstanding awards (2024: 5 % per annum).
Legacy Arcadium share plans
Under the terms of the acquisition of Arcadium Lithium plc in March 2025, there was a rollover of share awards under the Arcadium Lithium
plc Omnibus Incentive Plan and the Livent Corporation Incentive Compensation and Stock Plan (the Arcadium Plans) into Rio Tinto plc
denominated awards.
The Arcadium Plans provided for the grant of a variety of cash and equity awards, including share options, restricted share units and
restricted share rights.
Unvested and unexercised share awards were rolled over into Rio Tinto plc denominated share awards using the conversion ratio set out in
the Arcadium transaction agreement.
Share options vest on the first, second and third anniversaries of the original date of grant, subject to continued employment and the exercise
price may not be less than the fair market value of the share at the original date of grant. Options expire no later than 10 years from the
original grant date.
Awards of restricted share units and restricted share rights typically vest equally on the first, second and third anniversaries of the grant date,
subject to continued employment.
The cost for share options, restricted share units and restricted share rights is recognised over the vesting period since the acquisition less
any charge previously recognised by Arcadium Lithium plc. Share options are valued using a Black-Scholes valuation model, restricted share
units and restricted share rights are valued using the market price of the shares on the acquisition date.
All Arcadium awards will be settled with Rio Tinto plc shares.
Annual Report on Form 20-F 2025 | 211 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
28 Share-based payments continued
Recognition and measurement
These plans are accounted for in accordance with the fair value recognition provisions of IFRS 2.
The fair value of the Group’s share plans is recognised as an expense over the expected vesting period with an offset to retained earnings
for Rio Tinto plc plans and to other reserves for Rio Tinto Limited plans.
The Group uses fair values provided by independent actuaries calculated using a Monte Carlo simulation model and Black-Scholes valuation
option model where required.
The terms of each plan are considered at the balance sheet date to determine whether the plan should be accounted for as equity-settled or
cash-settled. The Group does not operate any material plans as cash-settled although certain awards can be settled in cash at the discretion
of the Directors or where settling awards in equity is challenging or prohibited by local laws and regulations. The value of these awards is
immaterial.
The Group’s equity-settled share plans are settled by the issuance of shares by the relevant parent company, the purchase of shares on
market, or the use of shares held in treasury. If the cost of shares acquired to satisfy the plans differs from the expense charged, the
difference is taken to retained earnings or other reserves, as appropriate.
settled awards), is set out in the table below.
Charge recognised for the year | Liability at the end of the year | ||||
2025 US$m | 2024 US$m | 2023 US$m | 2025 US$m | 2024 US$m | |
Equity-settled awards | |||||
Cash-settled awards | |||||
Total | |||||
Rio Tinto plc awards | Rio Tinto Limited awards | |||||||
2025 number | Weighted average fair value at grant date 2025 £ | 2024 number | Weighted average fair value at grant date 2024 £ | 2025 number | Weighted average fair value at grant date 2025 A$ | 2024 number | Weighted average fair value at grant date 2024 A$ | |
Unvested awards at 1 January | ||||||||
Awarded | ||||||||
Forfeited | ( | ( | ( | ( | ||||
Failed performance conditions | ( | ( | ( | ( | ||||
Vested | ( | ( | ( | ( | ||||
Unvested awards at 31 December | ||||||||
Rio Tinto plc awards | Rio Tinto Limited awards | |||||||
2025 number | Weighted average share price at vesting 2025 £ | 2024 number | Weighted average share price at vesting 2024 £ | 2025 number | Weighted average share price at vesting 2025 A$ | 2024 number | Weighted average share price at vesting 2024 A$ | |
Vested awards settled in shares during the year (including dividend shares applied on vesting) | ||||||||
Vested awards settled in cash during the year (including dividend shares applied on vesting) | ||||||||
In addition to the equity-settled awards shown above, there were 117,416 Rio Tinto plc and 14,855 Rio Tinto Limited cash-settled awards
outstanding at 31 December 2025 (2024: 41,164 Rio Tinto plc and 25,792 Rio Tinto Limited cash-settled awards outstanding). The total
liability for these awards at 31 December 2025 was US$3 million (2024: US$1 million).
Annual Report on Form 20-F 2025 | 212 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
28 Share-based payments continued
Employee Share Plans, UK Share Plan and Arcadium Plans (combined)
Rio Tinto plc awards(a) | Rio Tinto Limited awards | |||||||
2025 number | Weighted average fair value at grant date 2025 £ | 2024 number | Weighted average fair value at grant date 2024 £ | 2025 number | Weighted average fair value at grant date 2025 A$ | 2024 number | Weighted average fair value at grant date 2024 A$ | |
Unvested awards at 1 January(b) | ||||||||
Awarded | ||||||||
Forfeited | ( | ( | ( | ( | ||||
Cancelled | ( | ( | ( | ( | ||||
Vested | ( | ( | ( | ( | ||||
Unvested awards at 31 December(b) | ||||||||
Comprising: | ||||||||
–Management Share Awards | ||||||||
–Bonus Deferral Awards | ||||||||
–Global Employee Share Plan | ||||||||
–UK Share Plan | ||||||||
– Arcadium Plans (Restricted Share Rights) | ||||||||
– Arcadium Plans (Restricted Share Units) | ||||||||
Unvested awards at 31 December(b) | ||||||||
(a)Awards of Rio Tinto American Depositary Receipts (ADRs) under the Global Employee Share Plan are included within the totals for Rio Tinto plc awards for the purpose of these tables.
(b)These numbers are presented and calculated in accordance with IFRS 2 and represent awards for which an IFRS 2 charge continues to be accrued for.
Rio Tinto plc awards(a) | Rio Tinto Limited awards | |||||||
2025 number | Weighted average share price at vesting 2025 £ | 2024 number | Weighted average share price at vesting 2024 £ | 2025 number | Weighted average share price at vesting 2025 A$ | 2024 number | Weighted average share price at vesting 2024 A$ | |
Vested awards settled in shares during the year (including dividend shares applied on vesting): | ||||||||
–Management Share Awards | ||||||||
–Bonus Deferral Awards | ||||||||
–Global Employee Share Plan | ||||||||
–UK Share Plan | ||||||||
– Arcadium Plans (Restricted Share Rights) | ||||||||
– Arcadium Plans (Restricted Share Units) | ||||||||
Vested awards settled in cash during the year (including dividend shares applied on vesting): | ||||||||
–Bonus Deferral Awards | ||||||||
In addition to the equity-settled awards shown above, there were 76,737 Rio Tinto plc and 1,837 Rio Tinto Limited cash-settled awards
outstanding at 31 December 2025 (2024: 88,637 Rio Tinto plc and 5,232 Rio Tinto Limited cash-settled awards outstanding). The total
liability for these awards at 31 December 2025 was US$4 million (2024: US$4 million).
Outstanding unvested options | Number | Weighted average exercise price per option £ | Weighted average remaining contractual life Years | Aggregate intrinsic value £m 2025 |
Arcadium Plans (Options) (exercise price £ |
As at 31 December 2024, there were no unvested options. Following the acquisition of Arcadium Lithium plc in March 2025, there was a
rollover of options under the Arcadium Plans into Rio Tinto plc denominated awards.
Outstanding vested options | Number | Weighted average exercise price per option £ | Weighted average remaining contractual life Years | Aggregate intrinsic value £m 2025 |
Arcadium Plans (Options) (exercise price £ | – |
As at 31 December 2024, there were no vested options. Following the acquisition of Arcadium Lithium plc in March 2025, there was a
Annual Report on Form 20-F 2025 | 213 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
29 Post-retirement benefits
The Group operates a number of pension and post-retirement healthcare plans which provide lump sums, pensions, medical benefits and life
insurance to retirees. Some of these plans are defined contribution and some are defined benefit, with assets held in separate trusts,
foundations and similar entities.
Defined benefit pension and post-retirement healthcare plans expose the Group to a number of risks.
Uncertainty in benefit payments | The value of the Group’s liabilities for post-retirement benefits will ultimately depend on the amount of benefits paid out. This, in turn, will depend on the level of future pay increases, the level of inflation (for those benefits that are subject to some form of inflation protection) and how long individuals live. |
Volatility in asset values | The Group is exposed to future movements in the values of assets held in pension plans to meet future benefit payments. |
Uncertainty in cash funding | Movements in the values of the obligations or assets may result in the Group being required to provide higher levels of cash funding, although changes in the level of cash required can often be spread over a number of years. In some countries, control over the rate of cash funding or over the investment policy for pension assets might rest to some extent with a trustee body or other body that is not under the Group’s direct control. In addition, the Group is also exposed to adverse changes in pension regulation. |
For these reasons, the Group has a policy of moving away from defined benefit pension provisions and towards defined contribution
arrangements. The defined benefit pension plans for non-unionised employees are closed to new entrants in all countries. For unionised
employees, some plans remain open.
The Group does not usually participate in multi-employer plans in which the risks are shared with other companies using those plans.
The Group’s participation in such plans is immaterial and therefore no detailed disclosures are provided in this note.
Pension plans
The majority of the Group’s defined benefit pension obligations are in Canada, the UK, the US and Switzerland. In Australia, the main
arrangements are principally defined contribution in nature, but there are sections providing defined benefits linked to final pay. The features
of the Group’s defined benefit pension obligations are summarised as follows.
Calculation of benefit | Regulatory requirements | Governing body | |
Canada | Linked to final average pay for non-unionised employees. For unionised employees, linked to final average pay or to a flat monetary amount per year of service. | Regulatory requirements in the relevant provinces and territories (predominantly Quebec). | Pension committee, a number of members are appointed by the sponsor and a number appointed by plan participants. In some cases, independent committee members are also appointed. |
UK | Linked to final pay, subject to an earnings cap. | Regulatory requirements that apply to UK pension plans. | Trustee board, a number of directors appointed by the sponsor and a number appointed by plan participants and an independent trustee director. |
US | Linked to final average pay for non-unionised employees and to a flat monetary amount per year of service for unionised employees. | US regulations. | Benefit Governance Committee. Members are appointed by the sponsor. |
Switzerland | Linked to final average pay. | Swiss regulations. | Trustee board. Members are appointed by the plan sponsor, by employees and by retirees. |
Australia | Linked to final pay and typically paid in lump sum form. | Local regulations in Australia. | An independent financial institution. One-third of the board positions are nominated by employers. Remaining positions are filled by independent directors and directors nominated by participants. |
The Group also operates a number of unfunded defined benefit plans, which are included in the reported defined benefit obligations.
Post-retirement healthcare plans
Certain subsidiaries of the Group, mainly in the US and Canada, provide healthcare and life insurance benefits to retired employees and in
some cases to their beneficiaries and covered dependents. Eligibility for coverage is dependent upon certain age and service criteria. These
arrangements are unfunded, and are included in the reported defined benefit obligations.
For post-employment defined benefit schemes, in accordance with IAS 19 “Employee Benefits”, local actuaries calculate the fair value of the
plan assets and the present value of the plan obligations using a variety of valuation techniques dependent on the type of asset or liability.
The difference is recognised as an asset or liability in the balance sheet.
Where appropriate, the recognition of assets may be restricted to the present value of any amounts the Group expects to recover by way of refunds from
the plan or reductions in future contributions. In determining the extent to which a refund will be available, the Group considers whether any third party,
such as a trustee or pension committee, has the power to enhance benefits or to wind up a pension plan without the Group’s consent.
The current service cost, any past service cost and the effect of any curtailment or settlements and the interest cost less interest income on
assets held in the plans are recognised in the income statement. Actuarial gains/(losses) and returns from assets are recognised in other
comprehensive income.
The Group’s contributions to defined contribution plans are charged to the income statement in the period to which the contributions relate.
All amounts charged to the income statement in respect of these plans are included within “Net operating costs” or in “Share of profit after tax
of equity accounted units”, as appropriate.
Annual Report on Form 20-F 2025 | 214 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
The assets of the pension plans are invested predominantly in a diversified range of bonds, equities, property and qualifying insurance
policies. Consequently, the funding level of the pension plans is affected by movements in interest rates and also in the level of equity
markets.
Investment strategy reviews are conducted on a periodic basis to determine the optimal investment mix. This is performed while bearing in
mind the risk tolerance of the Group and local sponsor companies, and the views of the pension committees and trustee boards who are
legally responsible for the plans’ investments. The assets of the pension plans may also be invested in qualifying insurance policies which
provide a stream of payments to match the benefits being paid out by the plans. This would therefore remove the investment, inflation and
longevity risks.
In Canada, the UK and Switzerland, the Group works with the governing bodies to ensure that the investment policy adopted is consistent
2025 | 2024 | |||
Equities | ||||
–Quoted(a) | ||||
–Private(b) | ||||
Bonds(c) | ||||
–Government fixed income | ||||
–Government inflation-linked | ||||
–Corporate and other publicly quoted | ||||
–Private | ||||
Property(d) | ||||
–Quoted property funds | ||||
–Unquoted property funds | ||||
Qualifying insurance policies(e) | ||||
Cash and other(f)(g) | ||||
Total | ||||
(a)The holdings of quoted equities are invested in either pooled funds or segregated accounts held in the name of the relevant pension funds. These equity portfolios are well diversified in
terms of the geographic distribution and market sectors.
(b)Investments in private equity, private debt and property are less liquid than the other investment classes listed above and therefore the Group’s investment in those asset classes is
restricted to a level that does not endanger the liquidity of the pension plans.
(c)The holdings of government bonds are generally invested in the debt of the country in which a pension plan is situated. Corporate and other quoted bonds are usually of investment
grade. Private debt is mainly held in the North American and UK pension funds and is invested in North American and European companies.
(d)The property funds held by pension plans are invested in a diversified range of properties.
(e)Qualifying insurance policies are held with insurance companies that are regulated by the relevant local authorities. The value of those policies is calculated by the local actuaries using
assumptions consistent with those adopted for valuing the insured obligations.
(f)The holdings of cash and other are predominantly cash and short-term money market instruments.
(g)The Group makes limited use of futures, repurchase agreements and other instruments to manage the interest rate risk in some of its plans. Fund managers may also use derivatives to
hedge currency movements within their portfolios and, in the case of bond managers, to take positions that could be taken using direct holdings of bonds but more efficiently. Exposure
The approximate total holding of Group securities within the plans is US$1 million (2024: US$1 million).
Maturity of defined benefit obligations
Pension benefits | Other benefits | 2025 Total | 2024 Total | |
Proportion relating to current employees | ||||
Proportion relating to former employees not yet retired | ||||
Proportion relating to retirees | ||||
Total | ||||
Average duration of obligations (years) |
Annual Report on Form 20-F 2025 | 215 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
29 Post-retirement benefits continued
Pension benefits US$m | Other benefits US$m | 2025 Total US$m | 2024 Total US$m | 2023 Total US$m | |
Current employer service cost for defined benefit plans | ( | ( | ( | ( | ( |
Past service (cost)/credit | ( | ( | ( | ||
Curtailment gains | |||||
Net interest on net defined benefit liability | ( | ( | ( | ( | |
Non-investment expenses paid from the plans | ( | ( | ( | ( | |
Total defined benefit expense | ( | ( | ( | ( | ( |
Current employer service cost for defined contribution and industry-wide plans | ( | ( | ( | ( | ( |
Total expense recognised in the income statement | ( | ( | ( | ( | ( |
These expense amounts are included as an employee cost within net operating costs.
2025 US$m | 2024 US$m | 2023 US$m | |
Actuarial gains/(losses) | ( | ||
Impact of buy-in | ( | ||
Return on assets, net of interest on assets | ( | ||
(Losses)/gains on application of asset ceiling | ( | ( | |
Remeasurement gains/(losses) on pension and post-retirement healthcare plans | ( |
Amounts recognised in the balance sheet
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Total fair value of plan assets | ||||
Present value of obligations – funded | ( | ( | ( | |
Present value of obligations – unfunded | ( | ( | ( | ( |
Present value of obligations – total | ( | ( | ( | ( |
Effect of asset ceiling | ( | ( | ( | |
Net surplus/(deficit) to be shown in the balance sheet | ( | ( | ( | |
Comprising: | ||||
–Deficits | ( | ( | ( | ( |
–Surpluses | ||||
Net surplus/(deficit) on pension plans | ( | |||
Unfunded post-retirement healthcare obligation | ( | ( | ( | |
The surplus amounts shown above are included in the balance sheet as “Receivables and other assets”. See note 17.
Deficits are shown in the balance sheet within “Provisions (including post-retirement benefits)”. See note 27.
Funding policy and contributions to plans
level required in each country. In Canada and the US, the minimum level is prescribed by legislation. In the UK and Switzerland, the
minimum level is negotiated with the local trustee in accordance with the funding guidance issued by the local regulators. In deciding whether
to provide funding above the minimum level, we consider other possible uses of cash elsewhere, the local sponsoring entity’s tax situation
and any strategic advantage we might obtain. The Group does not generally pre-fund post-retirement healthcare arrangements.
2025 | 2024 | 2023 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | Total US$m | |
Contributions to defined benefit plans | |||||
Contributions to defined contribution plans | |||||
Total | |||||
Annual Report on Form 20-F 2025 | 216 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
29 Post-retirement benefits continued
The level of surplus in the Rio Tinto Pension Fund in the UK is such that it may be used to pay for the employer contributions to the defined
contribution section of that Fund, in accordance with the funding arrangements agreed with the trustee of that Fund. Consequently, the cash
paid to defined contribution plans is lower than the defined contribution service cost by US$8 million. Contributions to defined benefit pension
plans are kept under regular review and actual contributions will be determined in line with the Group’s wider financing strategy, taking into
account relevant minimum funding requirements.
As contributions to many plans are reviewed on at least an annual basis, the contributions for 2026 and subsequent years cannot be determined precisely
in advance. Most of the Group’s largest pension funds are fully funded on their local funding basis and at present do not require long-term funding
commitments. Contributions to defined benefit pension plans for 2026 are estimated to be around US$100 million but may be higher or lower than this
depending on the evolution of financial markets and voluntary funding decisions taken by the Group. Contributions for subsequent years are expected to
be at similar levels. Healthcare plans are generally unfunded and contributions for future years will be equal to benefit payments net of participant
contributions. The Group’s contributions for healthcare plans in 2026 are expected to be similar to the amounts paid in 2025.
Movements in the net defined benefit liability
detailed analysis of the movements in the present value of the obligations and the fair value of assets.
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Change in the net defined benefit liability | ||||
Net defined benefit liability at the start of the year | ( | ( | ( | ( |
Amounts recognised in income statement | ( | ( | ( | ( |
Amounts recognised in other comprehensive income | ||||
Employer contributions | ||||
Assets transferred to defined contribution section | ( | ( | ( | |
Currency exchange rate gains/(losses) | ( | ( | ||
Net defined benefit surplus/liability at the end of the year | ( | ( | ( | |
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Change in present value of obligation | ||||
Present value of obligation at the start of the year | ( | ( | ( | ( |
Current employer service costs | ( | ( | ( | ( |
Past service (cost)/credit | ( | ( | ( | |
Curtailments | ||||
Interest on obligation | ( | ( | ( | ( |
Contributions by plan participants | ( | ( | ( | |
Benefits paid | ||||
Experience (losses)/gains | ( | ( | ||
Changes in financial assumptions gains/(losses) | ( | |||
Changes in demographic assumptions gains | ( | |||
Currency exchange rate losses | ( | ( | ( | |
Present value of obligation at the end of the year | ( | ( | ( | ( |
2025 | 2024 | |||
Pension benefits US$m | Other benefits US$m | Total US$m | Total US$m | |
Change in plan assets | ||||
Fair value of plan assets at the start of the year | ||||
Interest on assets | ||||
Contributions by plan participants | ||||
Contributions by employer | ||||
Benefits paid | ( | ( | ( | ( |
Non-investment expenses | ( | ( | ( | |
Return on plan assets, net of interest on assets | ( | |||
Assets transferred to defined contribution section | ( | ( | ( | |
Currency exchange rate gains | ( | |||
Fair value of plan assets at the end of the year | ||||
Annual Report on Form 20-F 2025 | 217 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
29 Post-retirement benefits continued
The impact of higher interest rates on bonds and qualifying insurance policies explains most of the return on plan assets, net of interest on
assets in 2025.
The resulting effect of applying an asset ceiling is a loss of US$8 million and a loss of US$7 million for the change in currency exchange rate
during the year. In determining the extent to which the asset ceiling has an effect, the Group considers the funding legislation in each country
and the rules specific to each pension plan. The calculation takes into account any minimum funding requirements that may be applicable to
the plan, whether any reduction in future Group contributions is available, and whether a refund of surplus may be available. In considering
whether any refund of surplus is available, the Group considers the powers of trustee boards and similar bodies to augment benefits or wind
up a plan. Where such powers are unilateral, the Group does not consider a refund to be available at the end of the life of a plan. Where the
plan rules and legislation both permit the employer to take a refund of surplus, the asset ceiling may have no effect, although it may be the
case that a refund will only be available many years in the future.
Main assumptions (rates per annum)
Key estimate | Estimation of obligations for post-employment costs | ||||||
The value of the Group’s obligations for post-employment benefits is dependent on the amount of benefits that are expected to be paid out, discounted to the balance sheet date. The most significant assumptions used in accounting for pension plans are: •The discount rate used to determine the net present value of the obligations, the interest cost on the obligations and the interest income on plan assets. We use the yield from high-quality corporate bonds with maturities and terms that match those of the post-employment obligations as closely as possible. Where there is no developed corporate bond market in a currency, the rate on government bonds is used. •The long-term inflation rate used to project increases in future benefit payments for those plans that have benefits linked to inflation. The assumption regarding future inflation is based on market yields on inflation-linked instruments, where possible, combined with consensus views. •The mortality rates used to project the period over which benefits will be paid, which is then discounted to arrive at the net present value of the obligations. The Group reviews the actual mortality rates of retirees in its major pension plans on a regular basis and uses these rates to set its current mortality assumptions. It also uses its judgement with respect to allowances for future improvements in longevity having regard to standard improvement scales in each relevant country and after taking external actuarial advice. The weighted-average assumptions used for the valuation at year-end are summarised below: | |||||||
At 31 December 2025 | At 31 December 2024 | ||||||
Discount rate | Long-term inflation(a) | Rate of increase in pensions | Discount rate | Long-term inflation(a) | Rate of increase in pensions | ||
Canada | |||||||
UK | |||||||
US | |||||||
Switzerland | |||||||
(a)The long-term inflation assumption shown for the UK is for the Retail Price Index. The assumption for the Consumer Price Index at 31 December 2025 was | |||||||
The main financial assumptions used for the healthcare plans, which are predominantly in the US and Canada, were: discount rate: 5.2 %
(2024: 5.3 %); medical trend rate: 9.5 % reducing to 4.6 % by the year 2035, broadly on a straight line basis (2024: 9.7 %, reducing to 4.7 % by
the year 2034); claims costs based on individual company experience.
For both the pension and healthcare arrangements, the post-retirement mortality assumptions allow for future improvements in longevity. The
mortality tables used imply that a man aged 60 at the balance sheet date has a weighted average expected future lifetime of 27 years (2024:
mortality tables are generally based upon the latest standard tables published in each country, adjusted appropriately to reflect the actual
mortality experience of the plan participants where credible data is available.
The values reported for the defined benefit obligations are sensitive to the actuarial assumptions used for projecting future benefit payments
and discounting those payments. In order to estimate the sensitivity of the obligations to changes in assumptions, we calculate what the
obligations would be if we were to make changes to each of the key assumptions in isolation. The difference between this figure and the
figure calculated using our stated assumptions is an indication of the sensitivity to reasonably possible changes in each assumption. The
results of this sensitivity analysis are summarised in the table below. Note that this approach is valid for small changes in the assumptions
but will be less accurate for larger changes in the assumptions. The sensitivity to inflation includes the impact on pension increases, which
are generally linked to inflation where they are granted.
Annual Report on Form 20-F 2025 | 218 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
29 Post-retirement benefits continued
2025 | 2024 | ||||
Approximate (increase)/ decrease in obligations | Approximate (increase)/ decrease in obligations | ||||
Assumption | Change in assumption | Pensions US$m | Other US$m | Pensions US$m | Other US$m |
Discount rate | Increase of | ||||
Decrease of | ( | ( | ( | ( | |
Long-term inflation | Increase of | ( | ( | ( | ( |
Decrease of | |||||
Demographic – allowance for future improvements in longevity | Participants assumed to have the mortality rates of individuals who are | ||||
Participants assumed to have the mortality rates of individuals who are | ( | ( | ( | ( | |
As most of the Group’s defined benefit pension plans are closed to new entrants, the carrying value of the Group’s post-employment
30 Directors’ and key management personnel remuneration
as follows.
2025 US$’000 | 2024 US$’000 | 2023 US$’000 | |
Emoluments | |||
Long-term incentive plans | |||
Pension contributions to defined contribution plans by Rio Tinto plc | |||
Pension contributions to defined contribution plans by Rio Tinto Limited | |||
Aggregate remuneration, including pension contributions | |||
Incurred by: | |||
Rio Tinto plc | |||
Rio Tinto Limited | |||
The Group defines key management personnel as the Directors and certain members of the Executive Committee, specifically the Executive
Directors and product group Chief Executive Officers.
During 2025, no Directors (2024: nil ; 2023: nil ) accrued retirement benefits under defined benefit arrangements, and 3 Directors (2024: 2 ;
2023: 2 ) accrued retirement benefits under defined contribution arrangements.
key management, including Directors, was as follows.
2025 US$'000 | 2024 US$'000 | 2023 US$'000 | |
Short-term employee benefits and costs | |||
Post-employment benefits | |||
Employment termination benefits | |||
Share-based payments | |||
Total(a) |
(a)The figures shown above include employment costs which cover social security and accident premiums in Canada, the UK and payroll taxes in Australia paid by the employer as a direct
Annual Report on Form 20-F 2025 | 219 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
Our Group structure
The Group’s subsidiaries that have non-controlling interests that are material to the Group, principal joint operations, as well as principal joint
ventures and associates are included in notes 31 to 33 below. These notes only includes those entities that have a more significant impact
on the profit or operating assets of the Group.
31 Subsidiaries with material non-controlling interests
below.
Company | Country of incorporation/operation | Principal activities | Economic interest (%) |
Robe River Mining Co. Pty. Ltd.(a) | Australia | Iron ore mining | |
Iron Ore Company of Canada(b) | US/Canada | Iron ore mining; iron ore pellets production | |
SimFer Jersey Limited(c) | Jersey/Guinea | Iron ore project | |
Oyu Tolgoi LLC | Mongolia | Copper and gold mining |
(a)Robe River Mining Co. Pty. Ltd. (which is 60 % owned by the Group) holds a 30 % economic interest in Robe River Iron Associates (Robe River). North Mining Ltd (which is wholly owned
by the Group) holds a 35 % economic interest in Robe River. Through these companies the Group recognises a 65 % share of the assets, liabilities, revenues and expenses of Robe
River, with a 12 % non-controlling interest. The Group therefore has a 53 % economic interest in Robe River.
(b)Iron Ore Company of Canada is incorporated in the US, but operates in Canada.
(c)Rio Tinto SimFer UK Limited (which is wholly owned by the Group) holds a 53 % interest in SimFer Jersey Limited (SimFer Jersey), a company incorporated in Jersey. SimFer Jersey, in
turn, has an 85 % interest in SimFer S.A., the company that will carry out the Simandou mining operations in Guinea and an 85 % interest in the company which is delivering SimFer
Jersey’s scope of the co-developed rail and port infrastructure. SimFer Jersey at present has a 100 % interest in the companies that will own and operate the transhipment vessels,
however this is anticipated to reduce to 85 % with the Government of Guinea taking a 15 % interest before transhipment operations commence. These entities, together with the equity
accounted WCS Rail and Port Holding Entities described in note 33, are referred to as the Simandou iron ore project.
accordance with IFRS in line with the Group’s accounting policies, including fair value adjustments, and before intercompany eliminations.
Income statement summary for the year ended 31 December | Iron Ore Company of Canada 2025 US$m | Iron Ore Company of Canada 2024 US$m | SimFer Jersey 2025 US$m | SimFer Jersey 2024 US$m | Oyu Tolgoi LLC(a) 2025 US$m | Oyu Tolgoi LLC(a) 2024 US$m | Robe River Mining Co. Pty. Ltd. 2025 US$m | Robe River Mining Co. Pty. Ltd. 2024 US$m |
Revenue | ||||||||
Profit/(loss) after tax | ( | ( | ( | |||||
–attributable to non-controlling interests | ( | ( | ( | |||||
–attributable to Rio Tinto | ( | ( | ||||||
Other comprehensive income/(loss) | ( | ( | ||||||
Total comprehensive income/(loss) | ( | ( | ( |
Balance sheet summary as at 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Non-current assets | ||||||||
Current assets | ||||||||
Current liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
Non-current liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
Net assets/(liabilities) | ( | ( | ||||||
–attributable to non-controlling interests | ( | ( | ||||||
–attributable to Rio Tinto | ( | ( |
Cash flow statement summary for the year ended 31 December | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m | 2025 US$m | 2024 US$m |
Cash flows from operations | ( | ( | ||||||
Dividends paid to non-controlling interests | ( | ( | ( |
Annual Report on Form 20-F 2025 | 220 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
32 Principal joint operations
Company and country of incorporation/operation | Principal activities | Group interest (%) |
See other relevant judgements call out box below | ||
(a)The Group owns a 54 % interest in the Western Range Joint Venture (WRJV), an unincorporated arrangement in the Pilbara. The Group recognises its equity share of assets, revenue
and expenses relating to this arrangement. Liabilities are recognised at 54 % with the exception of the close-down and restoration provision, which is recognised at 100 % according to
WRJV’s contractual obligations, with a corresponding 46 % receivable from China Baowu Group, for the co-owner’s share.
(b)Although the Group has an 80 % interest in Queensland Alumina Limited (QAL), decisions about activities that significantly affect the returns that are generated require agreement of both
parties to the joint arrangement, giving rise to joint control. Rio Tinto has entered into a tolling arrangement with QAL that enables it to utilise additional available capacity at the refinery.
These revenues and costs are included within the income statement.
(c)QAL and Pechiney Reynolds Quebec Inc. are joint arrangements that are primarily designed for the provision of output to the parties sharing joint control. This indicates that the parties
have rights to substantially all the economic benefits of the assets. The liabilities of the arrangements are in substance satisfied by cash flows received from the parties. This
dependence indicates that the parties in effect have obligations for the liabilities. It is these facts and circumstances that give rise to the classification of these entities as joint operations.
(d)Pechiney Reynolds Quebec Inc., an entity incorporated in the United States, has a 50.1 % interest in the Aluminerie de Bécancour, Inc. aluminium smelter , which is located in Canada. As
Rio Tinto owns 50.2 % of Pechiney Reynolds Quebec Inc, our effective ownership of the Bécancour smelter is 25.1 %.
Other relevant judgements | Accounting for the Pilbara Iron Arrangements |
A number of arrangements are in place amongst the Australian Iron Ore operations, managed by Rio Tinto, which allow their respective assets to be operated as a single integrated network across the Pilbara region. In assessing the Pilbara Iron Arrangements, it has been concluded that they collectively constitute a joint operation on the basis that decisions about relevant activities require unanimous consent. The resulting efficiencies are shared between Rio Tinto and Robe River Iron Associates (Robe River), and the parties fund all of the cash flow requirements of Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. Each of the partners in the joint operation is able to request the other to construct assets on their tenure to increase the capacity of the rail and port infrastructure network. The requesting partner’s (Asset User’s) share of the capacity of the network will increase by the capacity of the newly constructed asset, but generally that capacity may be provided from any of the network assets. The Asset User will pay an annual charge - Committed Use Charge (CUC) - over a contractually specified period irrespective of network usage. The constructing partner (Asset Owner) has an ongoing obligation to make available capacity from those assets and to maintain the assets in good working order as required under relevant State Agreements and associated tenure. The arrangements are managed through two wholly-owned subsidiaries: Pilbara Iron (Company) Services Pty Ltd and Pilbara Iron Pty Ltd. We have also considered whether the CUC arrangements give rise to a lease between the Asset Owner and the Asset User. We have concluded that they do not, as there is no specified asset; rather the Asset User has a first priority right to the capacity in the CUC asset. This treatment was grandfathered on adoption of IFRS 16 on 1 January 2019, following an assessment under the preceding standards IAS 17 “Leases” and IFRIC 4 “Determining whether an arrangement contains a lease”, with no change to the conclusion under IFRS 16 for subsequent expenditure subject to the existing CUC arrangements. Management considers that these arrangements are unique and has used judgement to apply the principles of IFRS to the accounting for the arrangements as described above. The obligation of the Asset Owner to make capacity available is fulfilled over time and not at a point in time. The CUC arrangement is therefore an executory contract as defined under IAS 37, whereby neither party has performed any of its obligations, or both parties have partially performed their obligations to an equal extent, and so the CUC payments are expensed as incurred. An alternative interpretation of the fact pattern could have resulted in a gross presentation in the Group’s balance sheet with an asset and a corresponding liability to reflect the present value of the CUC payments. The Asset User is a wholly-owned subsidiary of Rio Tinto, whereas the Asset Owner is a joint operation. This impact would be some US$ calculating the gross-up might give rise to different numbers. | |
Annual Report on Form 20-F 2025 | 221 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
33 Entities accounted under the equity method
Principal joint ventures
Company | Country of incorporation/operation | Principal activities | Group interest (%) |
Matalco Canada Inc. | Canada | Aluminium recycling | |
Minera Escondida Ltda(a) | Chile | Copper mining and refining | |
Sohar Aluminium Co. L.L.C.(b) | Oman | Aluminium smelting, power generation | |
Matalco USA, LLC | US | Aluminium recycling |
(a)The year end of Minera Escondida Ltda is 30 June. The amounts included in the consolidated financial statements of Rio Tinto are, however, based on financial statements of Minera
Escondida Ltda that are coterminous with those of the Group.
(b)Although the Group holds a 20 % interest in Sohar Aluminium Co. L.L.C, decisions about relevant activities that significantly affect the returns that are generated require agreement of all
parties to the arrangement. It is therefore determined that Rio Tinto has joint control.
Other relevant judgements | Accounting for Minera Escondida Ltda (Escondida) |
Judgement has been applied on the determination that Escondida is a joint venture. We have based this on the nature of significant commercial decisions, including those in relation to capital expenditure, which require approval of both Rio Tinto and its partner BHP (holders of a through its rights to direct relevant activities. Adoption of the equivalent judgement by the Group would result in reclassification of Escondida from a joint venture to an associate, with no other financial reporting consequence since accounting under the equity method would remain in place. | |
prepared in accordance with IFRS under Group accounting policies, including fair value adjustments and amounts due to and from Rio Tinto.
Minera Escondida Ltda 2025 US$m | Minera Escondida Ltda 2024 US$m | |
Revenue | ||
Depreciation and amortisation | ( | ( |
Other operating costs | ( | ( |
Operating profit | ||
Finance expense | ( | ( |
Income tax | ( | ( |
Profit after tax | ||
Other comprehensive income | ||
Total comprehensive income | ||
Non-current assets | ||
Current assets | ||
Current liabilities | ( | ( |
Non-current liabilities | ( | ( |
Net assets | ||
Assets and liabilities above include: | ||
–cash and cash equivalents | ||
–current financial liabilities | ( | ( |
–non-current financial liabilities | ( | ( |
Dividends received from joint venture (Rio Tinto share) |
Annual Report on Form 20-F 2025 | 222 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
33 Entities accounted under the equity method continued
Company | Country of incorporation/operation | Principal activities | Group interest (%) |
Boyne Smelters Limited(a) | Australia | Aluminium smelting | |
Mineração Rio do Norte S.A. | Brazil | Bauxite mining | |
Winning Consortium Simandou Railway Pte. Ltd.(b) | Singapore/Guinea | Rail and port infrastructure including trans-Guinean heavy haul rail system | |
Winning Consortium Simandou Ports Pte. Ltd.(b) | Singapore/Guinea | ||
Halco (Mining) Inc.(c) | US | Bauxite mining |
(a)The parties that collectively control Boyne Smelters Limited (BSL) do so through decisions that are determined on an aggregate voting interest that can be achieved by several
combinations of the parties. Although each combination requires Rio Tinto’s approval, this is not joint control as defined under IFRS 11 “Joint Arrangements”. Rio Tinto is, therefore,
determined to have significant influence over this company.
(b)Rio Tinto SimFer UK Limited (which is wholly owned by the Group) holds a 53 % interest in SimFer Jersey Limited (SimFer Jersey), a company incorporated in Jersey. Refer to note 31 for further
details. SimFer Jersey, through its wholly owned subsidiary, SimFer InfraCo Ltd., a company incorporated in the United Kingdom, holds a 34 % interest in Winning Consortium Simandou Railway
Pte. Ltd and Winning Consortium Simandou Ports Pte. Ltd (together referred to as “WCS Rail and Port Holding Entities”). As at 31 December 2025, the Group has an effective 18.02 % indirect
interest in the WCS Rail and Port Holding Entities. The WCS Rail and Port Holding Entities, in turn, hold an 85 % interest in Winning Consortium Simandou Ports SA and Winning Consortium
Simandou Rail SA (together referred to as “WCS Project Companies”), with the remaining 15 % held by the Government of Guinea. As a result, the Group has an effective 15.32 % indirect interest
in the WCS Project Companies. The WCS Rail and Port Holding Entities are incorporated in Singapore; however, the operations of the WCS Project Companies are in Guinea.
(c)The Group holds a 45 % interest in Halco (Mining) Inc., a non-managed associate. Halco (Mining) Inc., in turn, has a 51 % indirect interest in Compagnie des Bauxites de Guinée, a
bauxite mine, the core assets of which are located in Guinea.
Financial Statements
Minera Escondida Ltda(a) US$m | Individually immaterial EAUs 2025 US$m | Total 2025 US$m | Minera Escondida Ltda(a) US$m | Individually immaterial EAUs 2024 US$m | Total 2024 US$m | |
Net assets (100%) | ||||||
Group ownership interest | ||||||
Carrying value of Group’s interest | ||||||
Share of profit/(loss) after tax | ( | ( | ||||
Share of other comprehensive income/(loss) | ( | ( | ||||
Share of total comprehensive profit/(loss) | ( | ( |
(a)In addition to its “Investment in equity accounted units”, the Group recognises deferred tax liabilities of US$421 million (2024: US$349 million) relating to tax on unremitted earnings of
34 Related-party transactions
Information about material related-party transactions of the Rio Tinto Group is set out below.
Subsidiary companies and joint operations
Transactions and balances with subsidiaries are fully eliminated on consolidation, while transactions and balances with joint operations are eliminated to
the extent of our interest in the entity. Details of all subsidiary companies are disclosed in the consolidated entity disclosure statement, and information
relating to principal joint operations can be found in note 32.
Equity accounted units
payables, relate largely to amounts charged by equity accounted units for toll processing of alumina and purchasing of bauxite and
aluminium. Sales relate largely to sales of alumina to equity accounted units for smelting into aluminium.
2025 US$m | 2024 US$m | 2023 US$m | ||
Income statement items | ||||
Purchases from equity accounted units | ( | ( | ( | |
Sales to equity accounted units | ||||
Cash flow statement items | ||||
Dividends from equity accounted units | ||||
Net funding of equity accounted units | ( | ( | ( | |
Balance sheet items | ||||
Investments in equity accounted units(a) | ||||
Loans to equity accounted units(b) | ||||
Loans related to equity accounted units | ||||
Trade and other receivables: related to equity accounted units(c) | ||||
Trade and other payables: related to equity accounted units | ( | ( | ( |
(a)Investments in equity accounted units include quasi-equity loans. Further information about investments in equity accounted units is set out in note 33.
(b)Relates to funding of WCS Rail and Port Holding Entities. In 2024, this also includes the initial amounts advanced as part of the acquisition of these EAUs.
Pension funds
Information relating to pension fund arrangements is set out in note 29.
Annual Report on Form 20-F 2025 | 223 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
Our equity
35 Share capital
Recognition and measurement
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
Where any Group company purchases the Group’s equity share capital (treasury shares), the consideration paid, including any directly
attributable incremental costs (net of income taxes), is deducted from equity attributable to owners of Rio Tinto. Where such shares are
subsequently reissued, any consideration received, net of any directly attributable incremental costs and the related income tax effects, is
included in equity attributable to owners of Rio Tinto. If purchased Rio Tinto plc shares are cancelled, an amount equal to the nominal value
of the cancelled share is credited to the capital redemption reserve.
2025 Number (million) | 2024 Number (million) | 2023 Number (million) | 2025 US$m | 2024 US$m | 2023 US$m | |
Issued and fully paid up share capital of 10p each | ||||||
At 1 January | ||||||
Ordinary shares issued under the Global Employee Share plan (GESP) | ||||||
Shares purchased and cancelled(a) | ||||||
At 31 December | ||||||
Shares held by public | ||||||
At 1 January | ||||||
Shares reissued from treasury under the GESP(b) | ||||||
Ordinary shares issued under the GESP(b) | ||||||
Shares purchased and cancelled(a) | ||||||
At 31 December | ||||||
Shares held in treasury | ||||||
Shares held by public | ||||||
Total share capital | ||||||
Other share classes | ||||||
Special Voting Share of 10p each(c) | ||||||
DLC Dividend Share of 10p each(c) |
(a)The authority for the company to buy back its ordinary shares was renewed at the 2021 annual general meeting. No
under the on-market buy-back program.
(b)New shares issued and reissued from Treasury during the year resulting from the vesting of awards and the exercise of options under Rio Tinto plc employee share-based payment
plans had exercise prices and market values between £41.17 and £60.26 per share.
(c)The Special Voting Share was issued to facilitate the joint voting by shareholders of Rio Tinto plc and Rio Tinto Limited on Joint Decisions, following the DLC Merger. The DLC Dividend
Share was issued to a subsidiary of Rio Tinto Limited to facilitate the efficient management of funds within the DLC structure. In addition, an Equalisation Share is authorised but not
During 2025, US$30 million of shares and ADRs (2024: US$13 million; 2023: US$17 million) were purchased by employee share ownership
trusts on behalf of Rio Tinto plc to satisfy employee share awards on vesting. At 31 December 2025, 512,911 shares (2024: 229,749 ; 2023:
2025 Number (million) | 2024 Number (million) | 2023 Number (million) | 2025 US$m | 2024 US$m | 2023 US$m | |
Issued and fully paid up share capital | ||||||
At 1 January | ||||||
Adjustment on currency translation | ( | |||||
At 31 December | ||||||
– Special Voting Share(a) | ||||||
– DLC Dividend Share(a) | ||||||
Total share capital |
(a)The Special Voting Share was issued to facilitate the joint voting by shareholders of Rio Tinto Limited and Rio Tinto plc on Joint Decisions following the DLC Merger. The DLC Dividend
Share was issued to a subsidiary of Rio Tinto Plc to facilitate the efficient management of funds within the DLC structure. Directors have the ability to issue an Equalisation Share if that
During 2025, US$57 million of shares (2024: US$44 million; 2023: US$78 million) were purchased by employee share ownership trusts on
behalf of Rio Tinto Limited to satisfy employee share awards on vesting. At 31 December 2025, 70,976 shares (2024: 303,327 ; 2023:
Information relating to share-based incentive schemes is in note 28.
Annual Report on Form 20-F 2025 | 224 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
36 Other reserves and retained earnings
2025 US$m | 2024 US$m | 2023 US$m | |
Capital redemption reserve(a) | |||
At 1 January and 31 December | |||
Cash flow hedge reserve | |||
At 1 January | ( | ( | ( |
Cash flow hedge gains | |||
Cash flow hedge (gains)/losses transferred to the income statement | ( | ( | |
Tax on the above | ( | ||
At 31 December | ( | ( | ( |
Fair value through other comprehensive income reserve | |||
At 1 January | ( | ( | |
Losses on equity investments | ( | ( | |
At 31 December | ( | ( | ( |
Cost of hedging reserve | |||
At 1 January | ( | ( | ( |
Cost of hedging deferred to reserves during the year | |||
Transfer of cost of hedging to the income statement | |||
At 31 December | ( | ( | ( |
Other reserves(b) | |||
At 1 January | |||
Own shares purchased from Rio Tinto Limited shareholders to satisfy share awards | ( | ( | ( |
Employee share options: value of services | |||
Deferred tax on share options | ( | ||
At 31 December | |||
Foreign currency translation reserve(c) | |||
At 1 January | ( | ( | ( |
Parent and subsidiaries’ currency translation and exchange adjustments | ( | ||
Equity accounted units currency translation adjustments | ( | ||
Currency translation reclassified on disposal | ( | ||
At 31 December | ( | ( | ( |
Total other reserves per balance sheet |
Retained earnings(d) | |||
At 1 January | |||
Parent and subsidiaries’ profit for the year | |||
Equity accounted units’ profit after tax for the year | |||
Remeasurement gains/(losses) on pension and post-retirement healthcare plans(e) | ( | ||
Tax relating to components of other comprehensive income | ( | ( | |
Total comprehensive income for the year | |||
Dividends paid | ( | ( | ( |
Change in equity interest held by Rio Tinto(f) | ( | ( | ( |
Own shares purchased/treasury shares reissued for share awards and other movements | ( | ( | ( |
Employee share options and other IFRS 2 charges taken to the income statement | |||
At 31 December |
(a)The capital redemption reserve was set up to comply with section 733 of the UK Companies Act 2006 (previously section 170 of the UK Companies Act 1985) when shares of a company are
redeemed or purchased wholly out of the company’s profits. Balances reflect the amount by which the company’s issued share capital is diminished in accordance with this section.
(b)Other reserves includes US$11,936 million which represents the difference between the nominal value and issue price of the shares issued arising from Rio Tinto plc’s rights issue
completed in July 2009. No share premium was recorded in the Rio Tinto plc financial statements through the operation of the merger relief provisions of the UK Companies Act 1985.
Other reserves also include the cumulative amount recognised under IFRS 2 in respect of awards granted but not exercised to acquire shares in Rio Tinto Limited, less, where
applicable, the cost of shares purchased to satisfy share awards exercised. The cumulative amount recognised under IFRS 2 in respect of awards granted but not exercised to acquire
shares in Rio Tinto plc is recorded in retained earnings.
(c)Exchange differences arising on the translation of the Group’s net investment in foreign controlled companies are taken to the foreign currency translation reserve. The cumulative
differences relating to an investment are transferred to the income statement when the investment is disposed of.
(d)Retained earnings and movements in reserves of subsidiaries include those arising from the Group’s share of joint operations.
(e)In 2025, there were US$1 million of remeasurement losses relating to equity accounted units (2024: losses of US$6 million, 2023: gains of US$3 million).
(f)In 2024, this relates to the additional interest acquired in ERA which increased from 86.3 % to 98.43 % as a result of new shares issued to Rio Tinto under ERA’s entitlement offer to raise
funds for the rehabilitation of the Ranger Project Area, as well as the settlement of deferred consideration payable to Turquoise Hill Resources Ltd dissenting shareholders.
Annual Report on Form 20-F 2025 | 225 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
Other notes
37 Contingencies and commitments
Recognition and measurement
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 (eg undertakings related to supplier agreements) not provided for
on the balance sheet, where the likelihood of the contingent liabilities, guarantees or indemnities being called is assessed as possible rather
than probable or remote.
Other relevant judgements | Contingencies |
Disclosure is made for material contingent liabilities unless the possibility of any loss arising is considered remote based on our judgement and legal advice. These are quantified unless, in our judgement, the amount cannot be reliably estimated. The unit of account for claims is the matter taken as a whole and therefore when a provision has been recorded for the best estimate of the cost to settle the obligation there is no further contingent liability component. This means that when a provision is recognised for the best estimate of the expenditure required to settle the present obligation from a single past event, a further contingent liability is not reported for the maximum potential exposure in excess of that already provided. We have 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 our 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 judgements may at times occur. The Group may in the future incur judgements or enter into settlements of claims that could lead to material cash outflows. | |
2025 US$m | 2024 US$m | |
Contingent liabilities, indemnities and other performance guarantees(a) |
Contingent liabilities - not quantifiable
The current status of contingent liabilities where it is not practicable to provide a reliable estimate of possible financial exposure is:
Litigation disputes
Litigation matter | Latest update |
2011 Contractual payments in Guinea | In 2023, we resolved a previously self-disclosed investigation by the SEC into certain contractual payments totalling US$ Simandou project in the Republic of Guinea. In August 2023, the UK Serious Fraud Office closed its case and announced that the Australian Federal Police maintains a live investigation into the matter. Rio Tinto continues to cooperate fully with relevant authorities. At 31 December 2025, the outcome of this investigation remains uncertain, but it could ultimately expose the Group to material financial cost. No provision has been recognised for the investigation. We believe this case is unwarranted and will defend the allegation vigorously. |
Other contingent liabilities
We continue to modernise agreements with Traditional Owner groups in response to the Juukan Gorge incident. We have created provisions,
within “Other provisions”, based on 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, restoration and environmental 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 our Canadian aluminium smelters, which are not dependent
upon a specific orebody and have access to indefinite-lived power from owned hydropower 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, restoration and environmental
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 predetermined period. Any contingent liability for these assets will crystallise into a closure
provision if and when a decision is taken to cease operations.
Contingent assets
The Group has, from time to time, various insurance claims outstanding with reinsurers. Recognition of any assets arising takes place once
the insurance company has agreed to refund the claims and the amount is quantifiable. This is usually in the same period as payment is
received.
Annual Report on Form 20-F 2025 | 226 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
37 Contingencies and commitments continued
Our capital commitments include:
•open purchase orders for managed operations and non-managed tolling entities
•expenditure on major projects already authorised by our Investment Committee for non-managed operations.
Our capital commitments do not include those relating to lease obligations, which are disclosed separately in note 22.
The capital commitments for Simandou are reported on a 100% basis for the SimFer mine and the SimFer scope of infrastructure as
managed operations. The Group’s share of EAU capital commitments reported in relation to WCS Rail and Port Holding Entities represents
SimFer Jersey Limited’s 34 % investment in those EAUs, inclusive of funding due from non-controlling interests.
2025 US$m | 2024 US$m | |
Capital commitments excluding the Group's share of EAU capital commitments | ||
Within 1 year | ||
Between 1 and 3 years | ||
Between 3 and 5 years | ||
After 5 years | ||
Total | ||
Group's share of EAU capital commitments | ||
Within 1 year | ||
Between 1 and 3 years | ||
Total |
Impact of climate change on our business | Decarbonisation capital commitments |
Capital commitments do not include the estimated incremental capital expenditure relating to decarbonisation projects unless otherwise contractually committed. In 2025, we adjusted our capital guidance to spend of US$ capital commitments at 31 December 2025 are contractually committed decarbonisation capital commitments of US$ (2024: US$ (disclosed in note 22). | |
Other commitments
The Group has also made other commitments to incur a minimum amount of expenditure on community development initiatives as part of its
agreements with various stakeholders. As of 31 December 2025, a total of US$215 million (2024: US$154 million) of such expenditure is
estimated to be incurred over the next 25 years, out of which US$26 million (2024: US$27 million) is expected to be incurred within the next
year.
Unrecognised commitments to contribute funding or resources to joint ventures
Along with the other joint venture partners, we have commitments to provide emergency funding (such as funding required to preserve the
life of assets of the company or to comply with applicable laws) if required by Sohar Aluminium Company L.L.C., subject to approved
thresholds.
At 31 December 2025, Minera Escondida Ltda held an undrawn shareholder line of credit, of which Rio Tinto’s share was US$225 million
(2024: US$225 million). The current facility will mature in September 2026.
Purchase obligations
Purchase obligations are enforceable and legally binding agreements to buy goods or services. They specify all significant terms, including
fixed or minimum quantities to be purchased or consumed; fixed, minimum or variable price provisions; and the approximate timing of the
transactions.
Purchase obligations for goods mainly relate to purchases of raw materials and consumables, and purchase obligations for services mainly
relate to charges for the use of infrastructure, commitments to purchase power and freight contracts. These goods and services are expected
to be used in the business. To the extent that this changes, a provision for onerous obligations may be made.
Purchases from joint arrangements or associates are included if the quantity to be purchased is in excess of our ownership interest in the
entity. However, purchase obligations exclude contracted purchases of bauxite, alumina and aluminium from joint arrangements and
associates and contracted purchases of alumina from third parties. This is because these purchases are made for commercial reasons and
the Group is, overall, a net seller of these commodities.
Annual Report on Form 20-F 2025 | 227 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
37 Contingencies and commitments continued
2025 US$m | 2024 US$m | |
Within 1 year | ||
Between 1 and 2 years | ||
Between 2 and 3 years | ||
Between 3 and 4 years | ||
Between 4 and 5 years | ||
After 5 years | ||
Total |
Rio Tinto plc and Rio Tinto Limited have, jointly and severally, fully and unconditionally guaranteed the following securities issued by the
following 100% owned finance subsidiaries: US$15.2 billion (2024: US$6.2 billion) Rio Tinto Finance (USA) Limited and Rio Tinto Finance
(USA) plc bonds with maturity dates up to 2065; and US$0.7 billion (2024: US$0.6 billion) on the European Debt Issuance Programme. In
addition, Rio Tinto Finance plc and Rio Tinto Finance Limited have entered into undrawn facility arrangements for an aggregate amount of
US$7.5 billion (2024: US$7.5 billion). The facilities are guaranteed by Rio Tinto plc and Rio Tinto Limited.
Rio Tinto plc has provided a guarantee, known as the completion support undertaking (CSU), in favour of the Oyu Tolgoi LLC project finance lenders.
At 31 December 2025, a total of US$5.4 billion (2024: US$5.5 billion) of project finance debt was outstanding under this facility of which
US$3.8 billion (2024: US$3.9 billion) is owed to external third party lenders. Rio Tinto plc, through its subsidiaries, owns 66 % of Oyu Tolgoi
LLC, with the remaining share owned by Erdenes Oyu Tolgoi LLC (34 %), which is controlled by the Government of Mongolia. The project
finance was raised for development of the underground mine and the CSU will terminate on the completion of the underground mine
38 Auditors’ remuneration
2025 US$m | 2024 US$m | 2023 US$m | |
Audit of the Group | |||
Audit of subsidiaries | |||
Total audit | |||
Audit-related assurance service | |||
Other assurance services(b) | |||
Total assurance services | |||
Tax compliance | |||
Other non-audit services not covered above | |||
Total non-audit services | |||
Total Group auditors’ remuneration | |||
Group auditors’ remuneration as required to be categorised under SEC regulations | |||
Audit fees | |||
Audit-related fees | |||
Tax fees | |||
All other fees | |||
Total Group auditors’ remuneration | |||
Audit fees payable to other accounting firms | |||
Audit of the financial statements of the Group’s subsidiaries | |||
Fees in respect of pension scheme audits | |||
Total audit fees payable to other accounting firms |
(a)The remuneration payable to KPMG, the Group auditors, is approved by the Audit & Risk Committee (the ‘Committee’). The Committee sets the policy for the award of non-audit work to
the auditors and approves the nature and extent of such work, and the amount of the related fees, to ensure that independence is maintained. The fees disclosed above consolidate all
payments, including overruns, made to member firms of KPMG by the companies and their subsidiaries, along with fees in respect of joint operations paid for by the Group. Non-audit
services arise largely from assurance and regulation related work.
(b)In 2025, other assurance services include regulatory sustainability assurance services which amount to US$2.2 million, and the review of non-statutory financial information.
Annual Report on Form 20-F 2025 | 228 | riotinto.com |
2025 Financial statements | Notes to the consolidated financial statements
39 Events after the balance sheet date
On 11 February 2026, Oyu Tolgoi LLC received tax assessments amounting to MNT 1.6 trillion (approximately US$440 million) from the
Mongolian Tax Authority in relation to the years ended 31 December 2021 and 31 December 2022.
These assessments are inconsistent with the Oyu Tolgoi Investment Agreement and applicable Mongolian legislation, and no adjustment has
been made to the financial statements for the year ended 31 December 2025 in respect of these tax assessments. We will take relevant
steps including engaging in discussions with the Government of Mongolia to resolve this matter.
There were no other significant events after the balance sheet date requiring disclosure.
40 New standards issued but not yet effective
We have not early adopted any new accounting standards or amendments that have been issued but are not yet effective.
IFRS 18 “Presentation and Disclosure in Financial Statements” (mandatory in 2027) will replace IAS 1. The new standard requires that
companies classify all income and expenses into 5 categories in the statement of profit or loss, namely the operating, investing, financing,
discontinued operations and income tax categories. Management-defined performance measures (MPMs), which are subtotals of income
and expenses not specified by IFRS Accounting Standards and used in public communications, must be disclosed in a single note within the
financial statements. The standard also provides enhanced guidance on grouping and organising information for better clarity. Additionally,
the operating profit subtotal will be the starting point for the statement of cash flows under the indirect method. These changes aim to
improve transparency and comparability across entities. We expect that certain of the Group’s income and expense items will be reclassified
among operating, investing, and financing categories, resulting in changes to the operating profit subtotal. Alternative performance measures
meeting the definition of MPMs will be disclosed in a separate note with the reconciliation between these MPMs and profit after tax. This
reconciliation will also account for income tax effects and the impact on non-controlling interests for each reconciling item as required by the
standard. Our interest received and interest paid will be classified in investing activities and financing activities, respectively, in the statement
of cash flows. Dividends received from equity accounted units and dividends paid to non-controlling interest holders will be classified in the
investing activities and financing activities respectively under the new standard.
Foreign exchange differences will be classified in the category where the related income and expense form the item giving rise to the foreign
exchange difference. We continue to assess the detailed implications of applying the new standard and expect that changes will be required
to the presentation and disclosures in our financial statements.
Amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures on Contracts Referencing Nature-dependent
Electricity” (mandatory in 2026) will help companies better report the financial effects of nature-dependent electricity contracts, which are
often structured as power purchase agreements (PPAs). The amendments include: clarifying the application of the “own-use” requirements,
permitting hedge accounting if these contracts are used as hedging instruments; and adding new disclosure requirements to enable investors
to understand the effect of these contracts on a company’s financial performance and cash flows. The assessments performed to date have
not identified a material impact on our financial statements as a result of these amendments.
The assessment is ongoing in relation to the amendments listed below, but no material impact has been identified to date:
•Annual Improvements to IFRS Accounting Standards (Amendments to IAS 7 “Statement of Cash Flows” and IFRS 10 “Consolidated
Financial Statements” (mandatory in 2026)
•Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 “Financial Instruments” and IFRS 7
“Financial Instruments: Disclosures” (mandatory in 2026)
Page 229 has been intentionally omitted.
Annual Report on Form 20-F 2025 | 230 | riotinto.com |
2025 Financial statements | Other information
Consolidated entity disclosure statement
Basis of preparation
This consolidated entity disclosure statement (CEDS) has been prepared as at 31 December 2025.
For all entities within this CEDS, place (country) of incorporation, classes of shares, the registered office address, the percentage of the
share class held by Group entities, and the effective percentage of equity owned by the Group calculated by reference to voting rights, are
disclosed. The share class held by the Group are ordinary (voting) shares (also referred to as common stock in certain countries), unless
identified with one of the following annotations against the entity name:
(1) ordinary/common; (2) preference; (3) redeemable preference; (4) unit; (5) redeemable preference B; (6) registered; (7) special voting; (8) DLC
dividend; (9) founder’s; (10) non-cumulative redeemable preference; (11) non-redeemable preference; (12) deferred; (13) Class A; (14) Class B; (15)
Class/Series C; (16) Class/Series D; (17) Class/Series E; (18) Series F; (19) Series G; (20) Class H; (21) Class J; (22) Class S; (23) Class Z; (24) E1
Class; (25) E2 Class; (26) F1 Class; (27) F2 Class; (28) G1 Class; (29) Stock Unit A; (30) Stock Unit B; (31) Stock Unit C; (32) C1 Class; (33) C2
Class.
Additionally, for subsidiaries and other consolidated entities, the entity’s tax residency; whether the entity was a body corporate, partnership
or trust; and whether the entity was a partner in a partnership, a trustee of a trust or a participant in a joint venture within the consolidated
Group, are also disclosed. Unless otherwise disclosed, each entity in this CEDS is a body corporate.
Unless otherwise disclosed, the tax residency of subsidiaries and other consolidated entities is the same as the country of incorporation. The
determination of tax residency involves judgement as the determination of tax residency is highly fact dependent and requires interpretation
of relevant legislation, guidance and judicial precedent. Different interpretations could be adopted which could give rise to a different
conclusion on residency. In determining tax residency, the Group has applied current legislation, judicial precedent and other available
guidance.
Refer to the “Basis of consolidation” on page 158 for further information on accounting policies, basis of consolidation, subsidiaries with
material non-controlling interests, joint operations, joint ventures and associates.
An explanation of the dual-listed companies structure of Rio Tinto plc and Rio Tinto Limited can be found on pages 336 to 337.
For completeness, the effective ownership by the Group relates to effective holdings by both entities either together or individually.
Entities are listed by place (country) of incorporation and under their registered office address.
Parent entities
Australia | United Kingdom | |||
Level 43, 120 Collins Street, Melbourne VIC 3000 | 6 St James’s Square, London, SW1Y 4AD | |||
Rio Tinto Limited | Rio Tinto plc |
Wholly-owned subsidiaries
Angola |
Edificio Kilamba, 20th Floor, Avenida 4 de Fevereiro, Marginal de Luanda, Luanda |
Rio Tinto Angola (SU), LDA. |
Rio Tinto Exploration Angola (SU), Limitada |
Escritorio B01 401, 4th Andar, Edf 1, Bloco 1, Via S8, Talatona, Luanda |
Rio Tinto Metais Básicos Angola (SU), Lda |
Argentina |
Carlos Pellegrini, 1427, 4th Floor Ciudad, Autónoma de Buenos Aires, 1011 |
Olaroz Lithium SA |
Intendente Lascano 2100, San Fernando del Valle de Catamarca, Catamarca, 4700 |
Galaxy Lithium (SAL DE VIDA) S.A. |
Mza.5 Lote 6, Ciudad Oeste, San Lorenzo Chico – 4401, Salta, 4400 |
Advantage Lithium Argentina SAU |
El Trigal SAU |
La Frontera Minerals SAU |
South American Salars SA |
Australia |
155 Charlotte Street, Brisbane QLD 4000 |
Alcan Gove Development Pty Limited |
Alcan Holdings Australia Pty Limited |
Alcan Northern Territory Alumina Pty Limited |
Alcan Primary Metal Australia Pty Ltd(bb) |
Alcan South Pacific Pty Ltd |
Australian Coal Holdings Pty. Limited(a) |
Cathjoh Holdings Pty Limited(bb) |
Gladstone Infrastructure Pty Ltd |
Gove Aluminium Ltd |
GPS Energy Pty Limited(w) |
GPS Nominee Pty Limited |
GPS Power Pty. Limited(w) |
Hunter Valley Resources Pty Ltd |
Johcath Holdings Pty Limited |
Kembla Coal & Coke Pty. Limited |
Mitchell Plateau Bauxite Co. Pty. Limited(y) |
Pacific Aluminium Pty. Limited(a) |
Pechiney Consolidated Australia Pty Limited |
Annual Report on Form 20-F 2025 | 231 | riotinto.com |
2025 Financial statements | Other information
Australia (continued) |
Queensland Coal Pty. Limited |
Rio Tinto Alcan Technology Pty Ltd |
Rio Tinto Aluminium (Bell Bay) Limited |
Rio Tinto Aluminium (Holdings) Limited |
Rio Tinto Aluminium Bell Bay Sales Pty Limited |
Rio Tinto Aluminium Limited |
Rio Tinto Aluminium Services Pty Limited |
Rio Tinto Coal (Clermont) Pty Ltd |
Rio Tinto Coal Australia Pty Limited |
Rio Tinto Coal NSW Holdings Pty Ltd(a) |
RTA AAL Australia Limited |
RTA Boyne Limited |
RTA Gove Pty Limited |
RTA Holdco Australia 1 Pty Ltd |
RTA Holdco Australia 3 Pty Ltd |
RTA Holdco Australia 5 Pty Ltd |
RTA Holdco Australia 6 Pty Ltd |
RTA Pacific Pty Limited |
RTA Sales Pty Ltd |
RTA Smelter Development Pty Limited |
RTA Weipa Pty Ltd |
RTA Yarwun Pty Ltd |
Swiss Aluminium Australia Limited |
Trans Territory Pipeline Pty Limited |
Winchester South Development Company Proprietary Limited |
19 Westal Street, Nhulunbuy NT 0880 |
Nhulunbuy Corporation Limited(c) |
37 Belmont Avenue, Belmont WA 6104 |
Peko Exploration Pty Ltd. |
Rio Tinto Exploration Pty Limited(a) |
Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 |
A.C.N. 646 148 754 Pty. Ltd. |
Allkem Corporate Services Pty. Ltd. |
Allkem Financial Services Pty. Ltd. |
Allkem Pty. Ltd. |
AML Properties Pty Ltd |
Argyle Diamond Mines Pty Limited |
Argyle Diamonds Pty Limited(a) |
Ashton Mining Pty Ltd |
Ashton Nominees Pty Limited |
Capricorn Diamonds Investments Pty Limited |
Channar Management Services Pty Limited |
Channar Mining Pty Ltd |
Dampier Desalination Proprietary Limited |
Galaxy Lithium Australia Pty. Ltd. |
Galaxy Resources Pty. Ltd. |
Hamersley Exploration Pty Limited |
Hamersley HMS Pty Ltd |
Hamersley Holdings Limited(a) |
Hamersley Iron - Yandi Pty Limited(a) |
Hamersley Iron Pty. Limited(dd) |
Hamersley Resources Limited(z) |
Hamersley WA Pty Ltd(x) |
HIsmelt Corporation Pty Limited(a) |
Juna Station Pty Ltd |
Lithium Extraction Technologies (Australia) Pty Ltd |
Mount Bruce Mining Pty Limited |
NBH Pty Ltd |
Norgold Pty Limited |
North Gold (W.A.) Pty Ltd |
North IOC Holdings Pty Ltd |
North Limited |
North Mining Limited(aa) |
Peko-Wallsend Pty Ltd |
Pilbara Iron Company (Services) Pty Ltd |
Pilbara Iron Pty Ltd |
Ranges Management Company Pty Ltd |
Ranges Mining Pty Ltd(u) |
Rhodes Ridge Account Manager Pty Ltd |
Rhodes Ridge Management Services Pty Ltd |
Rincon Mining Pty Limited |
Rio Tinto EN21 Australia Pty Ltd(a) |
Rio Tinto EN21 Op Co Pty Ltd |
Rio Tinto Investments One Pty Limited |
Rio Tinto Investments Two Pty Limited |
Rio Tinto Iron Ore (Pilbara) Sales Pty Ltd |
Rio Tinto PACE Australia Pty Limited(a) |
Rio Tinto Winu Pty Limited(a)(t) |
Robe River Limited |
Rocklea Station Pty Ltd |
South American Salar Minerals Pty. Ltd. |
Winu Services Pty Ltd(a) |
Level 43, 120 Collins Street, Melbourne VIC 3000 |
Australian Mining & Smelting Pty Ltd(a) |
Canning Resources Pty Limited(a) |
CRA Investments Pty. Limited(a) |
CRA Pty Ltd(a) |
Fundsprops Pty. Limited(a) |
Kalimantan Gold Pty Limited |
Kelian Pty. Limited(a) |
Kutaibar Holdings Pty Ltd(a) |
MineSmith Australasia Pty Ltd(d) |
North Insurances Pty. Ltd. |
Project Generation Group Pty Ltd(a) |
Rio Tinto (Commercial Paper) Limited(a) |
Rio Tinto Advisory Services Pty Limited |
Rio Tinto Asia Pty. Limited(a) |
Rio Tinto Biofuels Pty Ltd |
Rio Tinto Closure Pty Limited(a) |
Rio Tinto Energy and Climate Investments Australia Pty Ltd(a) |
Rio Tinto Energy Services Pty Ltd |
Rio Tinto Finance (Rhodes Ridge) Pty Ltd |
Rio Tinto Finance (USA) Limited(a) |
Rio Tinto Finance Limited(a) |
Rio Tinto Leaching Technologies Pty Limited(a) |
Rio Tinto Services Limited(a) |
Rio Tinto Shared Services Pty Limited |
Rio Tinto Shipping Pty. Limited.(a) |
Rio Tinto Staff Fund (Retired) Pty Limited(a) |
RTLDS Aus Pty Ltd(a) |
RTPDS Aus Pty Ltd |
Southern Copper Pty. Limited |
Technological Resources Pty. Limited(a) |
The Zinc Corporation Pty Ltd |
Tinto Holdings Australia Pty. Limited |
Wimmera Industrial Minerals Pty. Limited(a) |
Belgium |
Hoveniersstraat 53, 2018, Antwerp |
Rio Tinto Diamonds NV |
Rond-point Robert Schuman 2/4, 1040, Bruxelles |
Rio Tinto Belgium SA |
Annual Report on Form 20-F 2025 | 232 | riotinto.com |
2025 Financial statements | Other information
Bermuda |
Clarendon House, 2 Church Street, Hamilton, HM 11 |
North IOC (Bermuda) Holdings Limited |
North IOC (Bermuda) Limited |
QIT Madagascar Minerals Ltd(f) |
Rio Tinto Escondida Limited(f) |
Brazil |
Avenida das Nações Unidas, 12.551 - 19th floor - Suite 1.911, São Paulo, SP, 04578-00 |
Alcan Composites Brasil Ltda |
Avenida Engenheiro Emiliano Macieira, 1 - km 18, Pedrinhas, Sao Luis, MA, 65095-603 |
Rio Tinto do Brasil Ltda. |
Avenida Benedito Lessa 240, Bairro Conceição, Município de Ipaiú, Estado de Bahia, CEP, 45.570-000 |
Rio de Contas Desenvolvimentos Minerais Ltda |
SIG Quadra 04, Lote 175, Torre A, Salas 106 a 109, Edificio Capital Financial Center, Brasilia, CEP 70610-440 |
Rio Tinto Desenvolvimentos Minerais Ltda. |
SIG Quadra 04, Lote 75, Torre A Sala, 109 Parte B, Edificio Capital Financial Center, Brasilia, CEP, 70610-440 |
Rio Tinto Mineracao do Brasil Ltda |
SIG, QUADRA 04, Lote 75, Sala 109 Parte C, Edificio Capital Financial Center, Brasilia DF, CEP, 71.610-440 |
Empresa de Mineracao Finesa Ltda. |
SIG, QUADRA 04, Lote 75, Sala 109 Parte D, Edificio Capital Financial Center, Brasilia DF, CEP, 71.610-440 |
Mineracao Tabuleiro Ltda |
SIG, QUADRA 04, Lote 75, Sala 109 Parte E, Edificio Capital Financial Center, Brasilia DF, CEP, 71.610-440 |
Rio Santa Rita Empreenimentos e-Particiacoes Ltda |
Canada |
1212-1175 Douglas Street, Victoria BC V8W 2E1 |
Rio Tinto Exploration Canada Inc. |
1625 Route Marie-Victorin, Sorel-Tracy QC J3R 1M6 |
Rio Tinto Fer et Titane inc. |
Rio Tinto Iron and Titanium Canada Inc. / Rio Tinto Fer et Titane Canada Inc. |
200-204 Lambert Street, Whitehorse YT Y1A 1Z4 |
Turquoise Hill Resources Ltd. |
300-5201 50th Avenue, Yellowknife NT X1A 2P8 |
Diavik Diamond Mines (2012) Inc.(cc) |
300-815 West Hastings Street, Vancouver BC V6C 1B4 |
Rio Tinto Potash Management Inc. / Rio Tinto Potasse Management Inc.(s) |
400-1190 Avenue des Canadiens-de-Montréal, Montréal QC H3B 0E3 |
10676276 Canada Inc. |
16140467 Canada Inc. |
16992269 Canada Inc. |
9519-2845 Quebec inc.(r) |
Alcan Management Services Canada Limited / Societe de Services de Gestion Alcan Canada Limitee |
Alcan Realty Limited / Societe Immobiliere Alcan Limitee |
Galaxy Lithium (Canada) Inc. |
Galaxy Lithium One Inc. |
Livent Lithium Quebec Inc. |
Rio Tinto Alcan Fund Inc. |
Rio Tinto Alcan Inc.(r) |
Rio Tinto Alcan International Ltd. / Rio Tinto Alcan International Ltee |
Rio Tinto Canada Inc |
Rio Tinto Canada Management Inc. / Rio Tinto Gestion Canada Inc. |
Rio Tinto Energy and Climate Investments Canada Inc./Rio Tinto Investissements Énergie et Climat Canada Inc. |
Rio Tinto PACE Canada Inc. / Gestion Rio Tinto PACE Canada Inc. |
The Roberval and Saguenay Railway Company/ La Compagnie du Chemin de Fer Roberval Saguenay |
5300-66 Wellington Street West, Toronto ON M5K 1E6 |
1043802 Ontario Ltd |
Rio Tinto Saskatchewan Potash Holdings General Partner Inc.(s) |
Rio Tinto Saskatchewan Potash Holdings Limited Partnership(c)(p) |
745 Thurlow Street, Suite 2400, Vancouver BC V6E 0C5 |
1508137 B.C. Ltd. |
90 Riviera Drive, Markham ON L3R 5M12 |
Rio Tinto Lithium Canada Inc. |
Cayman Islands |
One Nexus Way, Camana Bay, c/o Intertrust Corp Services, Grand Cayman, KY1-9005 |
Lithium Cayman LLP(m) |
Chile |
Av. Presidente Riesco 5435, Of. 1302, Las Condes, Santiago |
Rio Tinto Chile Dos SpA |
Rio Tinto Chile SpA |
Rio Tinto Chile Tres SpA |
China |
41/F Wheelock Square, No. 1717 West Nanjing Road, Jing’ an District, Shanghai, 200040 |
Rio Tinto Trading (Shanghai) Co., Ltd. |
418 Nanshi Street, Suzhou Industrial Park, Suzhou, 215021 |
Rio Tinto Iron & Titanium (Suzhou) Co., Ltd |
No. 32, North Beijing Road, Yangtse River Chemical Park, Free Trade Zone, Zhangijiagang, Jiangsu, 215635 |
Livent Lithium (Zhangjiagang) Co. Ltd. |
Room 328, 3rd Floor, Unit 2, 231 Shibocun Road, Shanghai, Pilot Free Trade Zone, 200125 |
Rio Tinto Mining Commercial (Shanghai) Co., Ltd. |
Units 15-16, 18/F, China World Office Building 2, No. 1 Jianguomenwai Dajie, Chaoyang District, Beijing |
Rio Tinto Minerals Exploration (Beijing) Co., Ltd |
Colombia |
Calle 2, No. 20, 50 Edificio Q Office, Medellin, Antioquia, 503 |
ACO Colombia S.A.S. |
RT Colombia S.A.S. |
Finland |
PL 18, Helsinki, 00271 |
Rio Tinto Exploration Finland OY |
France |
60 Avenue Charles de Gaulle, 92200, Neuilly-Sur-Seine |
Pechiney Bâtiment |
Rio Tinto France S.A.S. |
RTA HOLDCO FRANCE 1 S.A.S. |
RTA HOLDCO FRANCE 2 S.A.S. |
725 rue Aristide Bergès, 38340, Voreppe |
AP Service |
Rio Tinto Aluminium Pechiney |
89 Route de Bourbourg, 59210, Coudekerque-Branche |
Borax Français |
Annual Report on Form 20-F 2025 | 233 | riotinto.com |
2025 Financial statements | Other information
Germany |
Alfred-Herrhausen-Allee 3-5, 65760, Eschborn |
Rio Tinto Commercial GmbH |
Rio Tinto Iron & Titanium GmbH(c) |
Rio Tinto Iron & Titanium Holdings GmbH(c) |
Alusingenplatz 1, D-78221, Singen |
Alcan Betriebs- und Verwaltungsgesellschaft GmbH |
Alcan Lebensmittelverpackungen GmbH |
Alcan Packaging Mühltal Gmbh & Co. KG |
Scheuch Unterstuetzungskasse GmbH |
Guernsey |
Plaza House, Third Floor, Elizabeth Avenue, St. Peter Port, GY1 2HU |
Livent Lithium (GY) Limited |
Guinea |
Immeuble Camayenne Corniche Nord, Commune de Dixinn, BP 848, Conakry |
Rio Tinto Guinée S.A. |
Manquépas - Commune de Kaloum |
Fondation Rio Tinto(c) |
Hong Kong |
10/F, Guangdong Investment Tower, 148 Connaught Road Central |
Galaxy Resources International Ltd. |
6/F, Luk Kwok Centre, 72 Gloucester Road, Wan Chai |
Alcan Asia Limited(e) |
Rio Tinto Asia Ltd(e)(h) |
Iceland |
P.O. Box 244, IS-222, Hafnarfjördur |
Rio Tinto Iceland Ltd. |
India |
Ground, 1st & 2nd Floor, DLF Building No. 7, Tower B, DLF Cyber City, Phase III, Gurgaon, Haryana, 122002 |
Rio Tinto Exploration India Private Limited(d) |
Rio Tinto India Private Limited |
Ireland |
8-34 Percy Place, Dublin 4, D04 P5K3 |
Arcadium Lithium Financing IRL DAC |
Arcadium Lithium Intermediate IRL Limited(f) |
Japan |
Kojimachi Diamond Building, 8th Floor, 1 Kojimachi 4-chome, Chiyoda-ku, Tokyo, 102-0083 |
Rio Tinto Japan Limited |
Marunouchi Eiraku Building 15F, 1-4-1, Marunouchi, Chiyoda-Ku, Tokyo |
Livent Japan G.K. |
Jersey |
3rd Floor, IFC 5, Castle Street, St Helier, JE2 3BY |
Rio Tinto Jersey Holdings 2010 Limited(f) |
3rd Floor, 44 Esplanade, St Helier, JE4 9WG |
Arcadium Lithium plc(f) |
Kazakhstan |
Dostyk 310/G, Almaty, 050020 |
Korgantas LLP(c)(d)(o) |
Rio Tinto Exploration Kazakhstan LLP(c)(o) |
Korea, Republic of |
16th Floor, Aju Building, 201, Teheran-ro, Gangnam-gu, Seoul, 06141 |
Rio Tinto Korea Ltd |
Livent Korea LLC |
Lao People's Democratic Republic |
5th Floor, AGL Building, 33 Lane Xang Avenue, Hatsady Village, Chanthaboury District, Vientiane Capital |
Rio Tinto Minerals Development (Lao) Sole Co., Ltd.(i) |
Malaysia |
Suite 13.03, 13th Floor, Menara Tan & Tan, 207 Jalan Tun Razak, 50400, Kuala Lumpur |
Borax Malaysia Sdn Bhd |
Mexico |
Florencia 57, Piso 3, Col. Juarez, Delegacion Cuauhtemoc, Mexico, D.F., 06600 |
Minera Kennecott, S.A. de C.V.(d)(g) |
Mongolia |
Level 17, Shangri-La Center, Olympic Street 19A, Sukhbaatar District, Ulaanbaatar, 14214 |
Heruga Exploration LLC |
Rio Tinto Holdings LLC |
Rio Tinto Mongolia LLC |
Mozambique |
Av. da Marginal Nº 4985, 1º andar – Prédio ZEN, Maputo |
Mutamba Mineral Sands S.A. |
Netherlands |
6 St James's Square, London, SW1Y 4AD, United Kingdom |
Rio Tinto Eastern Investments B.V.(f) |
Basisweg 10, 1043 AP, Amsterdam |
Livent Foreign HoldCo B.V. |
Bolder Corporate Services (Netherlands) B.V., De Boelelaan 7, 7th Floor, 1083, Amsterdam, HJ |
Galaxy Lithium Holdings B.V. |
Welplaatweg 104, 3197 KS Botlek-Rotterdam |
Oyu Tolgoi Netherlands BV |
Alcan Holdings Europe B.V. |
Alcan Holdings Nederland B.V. |
Borax Rotterdam BV |
Rio Tinto Diamonds Netherlands B.V. |
Saryarka B.V.(d) |
New Zealand |
1530 Tiwai Road, Tiwai Point, Invercargill, 9877 |
Electric Power Generation Limited(a) |
New Zealand Aluminium Smelters Ltd |
Pacific Aluminium (New Zealand) Limited |
Level 2, 20 Customhouse Quay, Wellington, 6011 |
NZAS Retirement Fund Trustee Limited |
Papua New Guinea |
C/- Guinn Accountants, Section 15, Lot 15, Bernal Street, Port Moresby, National Capital District |
Rio Tinto Holding PNG Limited |
Section 15, Lot 15, Bernal Street, National Capital District, Port Moresby |
Rio Tinto Exploration (PNG) Limited(a)(l) |
Annual Report on Form 20-F 2025 | 234 | riotinto.com |
2025 Financial statements | Other information
Peru |
Av. La Paz 1049, Oficina 503, Miraflores, Lima, 18 |
Rio Tinto Mining and Exploration S.A.C. |
Rwanda |
9 (Plot 526), KG 668 St, Kimihurura, Gasabo, Kigali |
Rio Tinto Exploration Rwanda Limited |
Serbia |
Bulevar Milutina Milankovica 1i, 5th Floor, Novi Beograd, 11070 |
Jadar Free Zone Management Company DOO Beograd - Novi Beograd |
Rio Sava Exploration DOO |
Rio Tinto Exploration Dunav d.o.o. Beograd - Novi Beograd(c) |
Singapore |
12 Marina Boulevard, #10-01 MBFC Tower 3, 018982 |
Cuprum Metals Pte. Ltd. |
Sharp Investment Holding Company Pte. Ltd. |
12 Marina Boulevard, #20-01 MBFC Tower 3, 018982 |
Rio Tinto Commercial Pte. Ltd. |
Rio Tinto Global Employment Company Pte. Ltd. |
Rio Tinto Marketing Pte. Ltd. |
Rio Tinto Minerals Asia Pte Ltd |
Rio Tinto Procurement (Singapore) Pte Ltd |
Rio Tinto Shipping (Asia) Pte. Ltd. |
Rio Tinto Singapore Holdings Pte Ltd |
2 Shenton Way #26-01, SGX Centre I, 068804 |
Metals and Minerals Insurance Pte Limited |
2 Venture Drive, #24-01, Vision Exchange, 608526 |
Turquoise Hill Resources Singapore Pte Ltd.(d)(k) |
77 Robinson Road #13-00, 068896 |
AGM Holding Company Pte. Ltd.(d)(k) |
Singapore Metals Pte. Ltd.(d)(j) |
77 Robinson Road #20-01, 068896 |
Livent Singapore Pte. Ltd. |
South Africa |
1 Harries Road, Illovo, Sandton, 2196 |
Rio Tinto Management Services South Africa (Proprietary) Ltd |
Ground Floor-Cypress Place North, Woodmead Business Park, 140/142 Western Service Road, Woodmead, 2191 |
Riversdale Connections (Proprietary) Ltd |
The Farm RBM, Number 16317, KwaZulu-Natal, 3900 |
Richards Bay Mining Holdings (Proprietary) Limited |
Richards Bay Titanium Holdings (Proprietary) Limited |
Spain |
CN 340, Km 954, 12520 NULES, Castellon |
Borax España, S.A. |
Switzerland |
Badenerstrasse 549, CH-8048, Zürich |
Metallwerke Refonda AG |
Rio Tinto Switzerland AG (SA/Ltd.) |
Zahlerweg 6, 6300, Zug |
Livent Switzerland GmbH |
United Kingdom |
5 Churchill Place, 10th Floor, London, E14 5HU |
Livent Lithium UK Holdings Limited |
Quebec Lithium Partners (UK) Limited |
Livent UK Pension Plan Limited |
6 St James's Square, London, SW1Y 4AD |
Alcan Chemicals Limited |
Alcan Farms Limited |
Anglesey Aluminium Metal Limited |
Borax Europe Limited |
British Alcan Aluminium Limited |
IOC Sales Limited |
Lawson Mardon Flexible Limited |
Lawson Mardon Smith Brothers Ltd. |
Nuton Holdings Limited |
Pechiney Aviatube Limited |
Rio Tinto Australian Holdings Limited |
Rio Tinto Bahia Holdings Limited |
Rio Tinto BM Limited |
Rio Tinto BM Subsidiary Limited |
Rio Tinto Canada Finance Limited |
Rio Tinto Copper Holdings Limited |
Rio Tinto Copper Limited |
Rio Tinto Energy Limited |
Rio Tinto European Holdings Limited(b) |
Rio Tinto Finance (USA) plc |
Rio Tinto Finance plc |
Rio Tinto Indonesian Holdings Limited |
Rio Tinto International Holdings Limited(b) |
Rio Tinto Iron Ore Atlantic Limited |
Rio Tinto Iron Ore Trading China Limited |
Rio Tinto London Limited |
Rio Tinto Medical Plan Trustees Limited |
Rio Tinto Metals Limited |
Rio Tinto Minerals Development Limited |
Rio Tinto Minerals Investments Africa Limited |
Rio Tinto Minerals Limited |
Rio Tinto Mining and Exploration Limited |
Rio Tinto Nominees Limited |
Rio Tinto OT Management Limited |
Rio Tinto Overseas Holdings Limited |
Rio Tinto Pension Fund Trustees Limited |
Rio Tinto Secretariat Limited |
Rio Tinto SimFer UK Limited |
Rio Tinto South East Asia Limited |
Rio Tinto Sulawesi Holdings Limited |
Rio Tinto Technological Resources UK Limited |
Rio Tinto Western Holdings Limited |
RTA Holdco 1 Limited |
RTA Holdco 4 Limited |
RTLDS UK Limited |
TBAC Limited |
Thos. W. Ward Limited |
THR Copper Limited |
Commercial Road, Bromborough, Wirral, Merseyside, CH62 3NL |
Lithium Corporation of Europe Limited |
Livent Lithium UK Limited |
International Centre for Sustainable Carbon, 27 Old Gloucester Street, London, England, WC1N 3AX |
IEA Coal Research Limited |
Pure Offices Cheltenham Office Park, Hatherley Lane, Cheltenham, GL51 6SH |
IEA Environmental Projects Limited |
Annual Report on Form 20-F 2025 | 235 | riotinto.com |
2025 Financial statements | Other information
United States |
1108 E. South Union Avenue, Midvale UT 84047 |
Three Crowns Insurance Company |
15 West South Temple, Suite 600, Salt Lake City UT 84101 |
Daybreak Property Holdings LLC(c) |
DB Medical I LLC |
DBVC1 LLC(c) |
Kennecott Utah Copper LLC |
Rio Tinto Minerals Inc. |
211 East 7th Street, Suite 620, Austin TX 78701-3218 |
Alcan Corporation |
Alcan Primary Products Corporation |
251 Little Falls Drive, Wilmington DE 19808 |
Alcan Primary Products Company LLC |
BetterIron - Texas Inc. |
CuTerra Holdings LLC |
Daybreak Development LLC |
Daybreak Secondary Water Distribution Company |
Daybreak Water Holding LLC |
Eastland Management Inc. |
Flambeau Mining Company |
High Purity Iron Inc. |
Iron Company of Texas LLC |
Kennecott Barneys Canyon Mining Company |
Kennecott Exploration Company |
Kennecott Holdings Corporation |
Kennecott Land Company |
Kennecott Land Investment Company LLC(c) |
Kennecott Nevada Copper Company |
Kennecott Ridgeway Mining Company |
Kennecott Royalty Company |
Kennecott Services Company |
Kennecott Water Distribution LLC |
KUC NWQ JV LLC |
Lithium USA Holding LLC |
Livent Asia-Pacific, Inc. |
Livent Corporation |
Livent Lithium LLC |
Livent Overseas Ltd. |
Livent Quebec Holdings LLC |
Livent USA Corp. |
MDA Lithium Holdings LLC |
Nuton LLC(v) |
Pacific Coast Mines, Inc. |
Pechiney Bécancour, Inc. |
Pechiney Cast Plate, Inc. |
Pechiney Holdings, Inc. |
Pechiney Metals LLC(c) |
Pechiney Plastic Packaging, Inc. |
Pechiney Sales Corporation |
Resolution Copper Company |
Rio Tinto America Holdings Inc. |
Rio Tinto America Inc. |
Rio Tinto AuM Company |
Rio Tinto Commercial Americas Inc. |
Rio Tinto Energy America Inc. |
Rio Tinto Energy Development LLC |
Rio Tinto Energy Services Inc. |
Rio Tinto Finance (USA) Inc. |
Rio Tinto Hydrogen Energy LLC(c) |
Rio Tinto Leaching Technologies LLC |
Rio Tinto Mining and Exploration Inc. |
Rio Tinto Services Inc. |
Rio Tinto Technological Resources Inc. |
Rio Tinto Technology Holdings Corporation |
Skymont Corporation |
Sohio Western Mining Company |
The Pyrites Company, Inc. |
U.S. Borax Inc. |
Victoria Technology Inc.(a) |
Waste Solutions and Recycling LLC |
80 State Street, Albany NY 12207-2543 |
Alcan International Network U.S.A. Inc. |
Henlopen Manufacturing Co., Inc. |
8825 N. 23rd Avenue, Suite 100, Phoenix AZ 85021 |
Integrity Land and Cattle LLC |
Swift Current Land & Cattle LLC(c) |
British Virgin Islands |
Craigmuir Chambers, PO Box 71, Road Town, Tortolla, VG1110 |
THR Oyu Tolgoi Ltd.(f) |
Zambia |
Block A, Suites GF05-GF08, Bishops Office Park, 4 Bishops Road, Kabulonga, Lusaka |
Solwezi Metals Exploration Limited |
Rio Tinto Exploration Zambia Limited |
Subsidiaries where the effective ownership is less than 100%
Name of entity and place (country) of incorporation | Registered address | Share class note | % of share class held by Group companies | Effective Group % ownership |
Argentina | ||||
Los Andes Compania Minera SA | Curupaytí 151, San Salvador de Jujuy, Jujuy, 4600 | (1) | 100 | 66.8 |
Sales de Jujuy S.A. | Curupaytí 151, San Salvador de Jujuy, Jujuy, 4600 | (13) | 100 | 66.5 |
Minera del Altiplano S.A. | Intendente Lascano 2100, San Fernando del Valle de Catamarca, Catamarca, 4700 | (c) | – | 99.99 |
Australia | ||||
Dampier Salt Limited | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | (1) | 68.36 | 68.36 |
Energy Resources of Australia Ltd | TIO Building, Level 8, 24 Mitchell Street, Darwin, NT 0800 | (1) | 98.43 | 98.43 |
Hope Downs Marketing Company Pty Ltd | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | (13) | 100 | 50 |
Robe River Mining Co. Pty. Ltd.(aa) | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | (13) | 40 | 73.61 |
(14) | 76.36 |
Annual Report on Form 20-F 2025 | 236 | riotinto.com |
2025 Financial statements | Other information
Name of entity and place (country) of incorporation | Registered address | Share class note | % of share class held by Group companies | Effective Group % ownership |
Canada | ||||
Electrode Manufacturing Demonstration Plant, L.P. / Usine de démonstration de fabrication d'électrodes, Société en commandite(p) | 400-1190 Avenue des Canadiens-de-Montréal, Montréal QC H3B 0E3 | (4) | 100 | 99.9 |
Évolys Québec Inc. | 400-1190 Avenue des Canadiens-de-Montréal, Montréal QC H3B 0E3 | (1) | 79.42 | 79.42 |
Gulf Power Company / La Compagnie Gulf Power | 400-1190 Avenue des Canadiens-de-Montréal, Montréal QC H3B 0E3 | (1) | 100 | 58.72 |
Quebec North Shore and Labrador Railway Company Inc. / Compagnie de Chemin de Fer du Littoral Nord de Quebec et du Labrador Inc. | 400-1190 Avenue des Canadiens-de-Montréal, Montréal QC H3B 0E3 | (1) | 100 | 58.72 |
Nemaska Lithium Inc. | 750-600 boul. De Maisonneuve O Montreal QC H3A3J2 | (1) | 50 | 50 |
Chile | ||||
Nuevo Cobre S.A. | Av. Ricardo Lyon #222, Office 1403, Providencia, Santiago, Metropolitan Region | (1) | 100 | 57.74 |
Guinea | ||||
SimFer InfraCo Guinée S.A. | Tours Cocotiers, Coléah Route du Niger, Matam, Conakry, BP848 | (2) | 100 | 45.05 |
SimFer S.A. | Tours Cocotiers, Coléah Route du Niger, Matam, Conakry, BP848 | (1) | 85 | 45.05 |
SimFer Marine Guinée S.A. | Tours Cocotiers, Coléah Route du Niger, Matam, Conakry, BP848 | (1) | 100 | 53 |
Société Minière Et De Participations Guinée-Alusuisse | Tougue, Guinea | (c) | – | 50 |
India | ||||
Rio Tinto Orissa Mining Private Ltd | 220, 2nd Floor, DLF Cyber City, Chandaka Industrial Area, Patia, Bhubneshwar, Odisha, 751024 | (1) | 51 | 51 |
Indonesia | ||||
PT Kelian Equatorial Mining | Sampoerna Strategic Square, South Tower, Level 30, Jl. Jenderal Sudirman Kav. 45-46, Jakarta, 12930 | (1) | 90 | 90 |
Jersey | ||||
SimFer Jersey Limited(f) | PO Box 536, 13-14 Esplanade, St Helier, JE4 5UR | (1) | 53 | 53 |
Madagascar | ||||
Port d'Ehoala S.A. | Immeuble ASSIST, Ivandry, Lot N°35, 5ème étage, Antananarivo, 101 | (1) | 100 | 80 |
QIT Madagascar Minerals SA(q) | Immeuble ASSIST, Ivandry, Lot N°35, 5ème étage, Antananarivo, 101 | (1) | 85 | 80 |
Mongolia | ||||
Gobi Oyu Development Support Fund | 8th Bagh of Tsagaan Bulag, Umnugobi Provice, 46801 | (c) | – | 66 |
Oyu Tolgoi Catalyst Fund for Khanbogd Development | 3rd Bagh, Dalanzadgad Soum, Umnugobi Aimag | (c) | – | 66 |
Oyu Tolgoi LLC | Level 12 Monnis Tower, Chinggis Avenue-15, 1st khoroo, Sukhbaatar District, Ulaanbaatar, 14240 | (1) | 66 | 66 |
Rwanda | ||||
Nyabarongo Mining and Exploration Limited | Kimihurura, Gasabo, Umujyi wa, Kigali | (1) | 75 | 75 |
Singapore | ||||
Chlor Alkali Unit Pte Ltd | 12 Marina Boulevard, #20-01 MBFC Tower 3, 018982 | (1) | 68.36 | 68.36 |
Simfer Marketing Private Limited | 12 Marina Boulevard, #20-01 MBFC Tower 3, 018982 | (1) | 53 | 53 |
SimFer Marine Singapore Pte. Ltd. | 9 Raffles Place, #26-01, Republic Plaza, 048619 | (1) | 100 | 53 |
Sales de Jujuy Pte. Ltd. | 77 Robinson Road #20-01, 068896 | (1) | 100 | 72.68 |
South Africa | ||||
Richards Bay Mining (Proprietary) Limited | The Farm RBM, Number 16317, KwaZulu-Natal, 3900 | (1) | 100 | 74 |
(2) | 100 | |||
Richards Bay Titanium (Proprietary) Limited | The Farm RBM, Number 16317, KwaZulu-Natal, 3900 | (1) | 100 | 74 |
(2) | 100 | |||
RBM EnergyCo | The Farm RBM, Number 16317, KwaZulu-Natal, 3900 | (c) | – | 74 |
United Kingdom | ||||
SimFer InfraCo Ltd | 6 St James's Square, London, SW1Y 4AD | (1) | 100 | 53 |
SimFer Jersey Nominee Limited | 6 St James's Square, London, SW1Y 4AD | (1) | 100 | 53 |
United States | ||||
Iron Ore Company of Canada | 1209 Orange Street, Wilmington DE 19801 | (13) | 91.41 | 58.72 |
(17) | 100 | |||
(18) | 100 | |||
Magma Arizona Railroad Company | 8825 N. 23rd Avenue, Suite 100, Phoenix AZ 85021 | (1) | 99.97 | 54.97 |
Resolution Copper Mining LLC | 251 Little Falls Drive, Wilmington DE 19808 | (c) | – | 55 |
Annual Report on Form 20-F 2025 | 237 | riotinto.com |
2025 Financial statements | Other information
Associated undertakings and significant holdings in related undertakings other than subsidiaries
Name of entity and place (country) of incorporation | Registered address | Share class note | % of share class held by Group companies | Effective Group % ownership |
Australia | ||||
Australian Integrated Carbon Pty Ltd | Level 4, 191 Pulteney Street, Adelaide SA 5000 | (1) | 14.15 | 14.15 |
Boyne Smelters Limited | 155 Charlotte Street, Brisbane QLD 4000 | (13) | 100 | 73.5 |
(24) | 100 | |||
(25) | 100 | |||
(28) | 100 | |||
(14) | 100 | |||
Tomago Aluminium Company Pty Limited | 638 Tomago Road, Tomago NSW 2322 | (1) | 36.05 | 51.55 |
(1) | 15.5 | |||
Electralith Pty Ltd | IP Group Australia, Level 35, 360 Elizabeth Street, Melbourne VIC 3000 | (1) | 28.17 | 23.43 |
(2) | 18.06 | |||
FF RT JV Pty Ltd | Level 20, 1 William Street, Perth WA 6000 | (2) | 16.67 | 70 |
(2) | 100 | |||
Australia-Japan Innovation Fund | 25 St James Park Drive, Brighton VIC 3186 | (c) | – | 25 |
Panguna Legacy Assessment Company Limited | Level 10, 12 Creek Street, Brisbane QLD 4000 | (c) | – | 33.33 |
Queensland Alumina Limited | Plant Operations Building, Parsons Point, Gladstone QLD 4680 | (16) | 100 | 80 |
(14) | 100 | |||
(15) | 100 | |||
Robe River Ore Sales Pty. Ltd. | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | (1) | 65 | 57.08 |
Sovereign Metals Limited | Level 9, 28 The Esplanade, Perth WA 6000 | (1) | 18.45 | 18.45 |
Yalleen Pastoral Co. Pty. Ltd. | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | (1) | 63.73 | 55.97 |
Brazil | ||||
Mineração Rio do Norte S.A. | Rua Jari, S/N Porto Tombetas, Municipio de Oriximina, Para, CEP 68275-000 | (1) | 25 | 22 |
(2) | 20.5 | |||
Consórcio de Alumínio do Maranhão | Av. Engenheiro Emiliano Macieira 01, KM18, Pedrinhas, 65095-604, Sao Luis, Maranhao | (c) | – | 10 |
Canada | ||||
Aluminerie Alouette Inc. | 400, Chemin de la Pointe-Noire, C.P. 1650, Sept-Îles Québec G4R 5M9 | (1) | 40 | 40 |
Aluminerie De Bécancour, Inc. | 5555 Pierre Thibault Street, PO 30, Becancour, Quebec G0X 1B | (1) | 50.1 | 25.1 |
CanPacific Potash Inc. | 500-211 19th Street East, Saskatoon SK S7K 5R6, | (c) | – | 32 |
Elysis Limited Partnership / Elysis Société en Commandite | 2323-1, Place Ville Marie, Montréal QC H3B 5M5 | (14) | 100 | 48.24 |
Matalco Canada Inc. | 301-1 Kenview Boulevard, Brampton ON L6T 5E6 | (1) | 100 | 50 |
McEwen Copper Inc. | 2800-150 King Street West Toronto ON M5H 1J9 | (1) | 17.18 | 17.18 |
Regulus Resources Inc. | Suite 2300, 1177 West Hastings Street, Vancouver BC V6E 2K3 | (1) | 15.99 | 15.99 |
Usine de démonstration de la Technologie ELYSIS S.E.C / ELYSIS Technology Demonstration Plant L.P.(p) | 400-1190 Avenue des Canadiens-de-Montréal, Montréal QC H3B 0E3 | (4) | 100 | 74.3 |
Chile | ||||
Minera Escondida Ltda | Cerro el Plomo 6000, Piso 15, Santiago, 7560623 | (c) | – | 30 |
China | ||||
Minmetals Rio Tinto Exploration Company Limited | 422-2, 4th Floor, Building #1 of Yongyou Industrial Park, Yazhou Bay Science & Technology City, Yazhou District, Sanya City, Hainan Province | (1) | 50 | 50 |
Finland | ||||
Arctial Group Oy | Fabianinkatu 9, c/o Asianajotoimisto Krogerus Oy, Helsinki, 00130 | (1) | 31.04 | 31.04 |
France | ||||
Procivis Savoie | 116 Quai Charles Roissard, 73000, Chambéry | (1) | 22.06 | 22.06 |
Guinea | ||||
La Compagnie du Transguinéen S.A. | 5D Bloc A, Résidence Hamade, Cité Ministérielle Fondis, Commune de Dixinn, Conakry | (1) | 42.5 | 22.53 |
Indonesia | ||||
PT Hutan Lindung Kelian Lestari | Kelian Mine Site, West Kutai, East Kalimantan | (1) | 99 | 99 |
Japan | ||||
Toyotsu Lithium Corporation | 1-40, Aza Nakamaru Oaza Yamadaoka, Naraha-machi, Futaba-gun, Fukushima | (13) | 49 | 49 |
Netherlands | ||||
Aluminium & Chemie Rotterdam B.V. | Oude Maasweg 80, NL-3197 KJ, Botlek, Rotterdam | (1) | 65.82 | 65.82 |
Global Hubco BV | Luna Arena, Herikerbergweg 238, 1101, CM, Amsterdam Zuidoost | (1) | 33.33 | 33.33 |
Oman | ||||
Sohar Aluminium Co. L.L.C. | Sohar Industrial Estate, P.O. Box 80, PC 327, Sohar | (1) | 20 | 20 |
Annual Report on Form 20-F 2025 | 238 | riotinto.com |
2025 Financial statements | Other information
Name of entity and place (country) of incorporation | Registered address | Share class note | % of share class held by Group companies | Effective Group % ownership |
Singapore | ||||
Rightship Group Pte. Ltd. | 10 Anson Road #29-07, International Plaza, 079903 | (1) | 33.33 | 33.33 |
Winning Consortium Simandou Ports Pte. Ltd. | 5 Shenton Way, #19-01, UIC Building, 068808 | (1) | 34 | 18.02 |
(2) | 34 | |||
Winning Consortium Simandou Railway Pte. Ltd. | 5 Shenton Way, #19-01, UIC Building, 068808 | (1) | 34 | 18.02 |
(2) | 34 | |||
West Kutai Foundation Limited | 10 Collyer Quay, #10-01 Ocean Financial Centre, 049315 | (c) | – | 100 |
The Kelian Community and Forest Protection Trust(n) | 10 Collyer Quay, #10-01 Ocean Financial Centre, 049315 | (c) | – | 100 |
Sweden | ||||
Alufluor AB | Industrigatan 70, Box 902, S-25109, Helsingborg | (1) | 50 | 50 |
United Kingdom | ||||
La Granja UK Holdings Limited | The Heal's Building 1 Alfred Mews, 2nd floor, London, W1T 7AA | (1) | 45 | 45 |
United States | ||||
201 Logistics Center, LLC | 1209 Orange Street, Wilmington DE 19801 | (c) | – | 50 |
7600 West Center, LLC | 9090 S. Sandy Parkway, Sandy UT 84070 | (c) | – | 50 |
E.T. Irrigating Canal Company | 4700 Daybreak Parkway, South Jordan UT 84009 | (1) | 54.17 | 54.17 |
GLC Phase 4 JV, LLC | 800 N State Street, Suite 402, Dover DE 19901 | (4) | 74.07 | 74.07 |
Halco (Mining) Inc. | 251 Little Falls Drive, Wilmington DE 19808 | (1) | 45 | 45 |
Matalco USA, LLC | 1209 Orange Street, Wilmington DE 19801 | (4) | 50 | 50 |
North Jordan Irrigation Company | 5189 South 1130 West, Taylorsville UT 84123 | (1) | 24.21 | 24.21 |
Pechiney Reynolds Quebec, Inc. | 233 South 13th Street, Suite 1900, Lincoln NE 68508 | (1) | 50 | 50.2 |
(2) | 100 | |||
Regeneration Enterprises, Inc. | 2657 Windmill Parkway #302, Henderson NV 89074 | (13) | 25 | 25 |
Venezuela, Bolivarian Republic of | ||||
Fabrica De Plasticos Mycsa, S.A.(d) | Urbanización Industrial San Ignacio, parcela 2-A, vía San Pedro, Los Teques, Estado Miranda | (1) | 49 | 49 |
In addition, the Group participates in the following unincorporated arrangements:
Place (country) of operation | Name of entity | Address or principal place of business | Interest % owned by the Group |
Australia | Dampier Seawater Desalination Plant Joint Venture | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | 50 |
Australia | Gladstone Power Station Joint Venture | NRG Gladstone Operating Service, Power Station, Gladstone QLD 4680 | 42.13 |
Australia | Hope Downs Joint Venture | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | 50 |
Australia | Mitchell Plateau Joint Venture | 155 Charlotte Street, Brisbane QLD 4000 | 65.62 |
Australia | Rhodes Ridge Joint Venture | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | 50 |
Australia | Robe River Iron Associates Joint Venture | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | 57.08 |
Australia | Tomago Aluminium Joint Venture | 638 Tomago Road, Tomago NSW 2322 | 51.55 |
Australia | Western Range Joint Venture | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | 54 |
Australia | Winu Joint Venture | 155 Charlotte Street, Brisbane QLD 4000, Australia | 70 |
Australia | Yarraloola Pastoral Co | Level 18, Central Park, 152-158 St Georges Terrace, Perth WA 6000 | 57.08 |
Canada | Winter Road Joint Venture | 300-5201 50th Avenue, Yellowknife NT X1A 2P9 | 33.33 |
United States | Gunnison-Nuton Tax Partnership | 4700 Daybreak Parkway, South Jordan UT 84009 | 49 |
(a)Directly held by Rio Tinto Limited.
(b)Directly held by Rio Tinto plc.
(c)Group ownership is held through an interest in
capital. The entity has no classes of shares.
(d)Entity in liquidation or application for dissolution filed.
(e)Entity liquidated or dissolved subsequent to
31 December 2025.
(f)Entity is a tax resident of the United Kingdom.
(g)Entity is a tax resident of the United States.
(h)Entity is a tax resident of Hong Kong and Australia.
(i)Entity is a tax resident of Laos and Australia.
(j)Entity is a tax resident of Singapore and Australia.
(k)Entity is a tax resident of Singapore and Canada.
(l)Entity is a tax resident of Australia.
(m)Entity is a limited liability partnership registered in Cayman
Islands. There is no corporate tax regime in the Cayman
Islands. Therefore, this partnership does not have a tax
residency.
(n)This entity is a trust.
(o)This entity is a partnership.
(p)This entity is a partnership but not a taxable entity.
The partnership’s income and losses flow through to the
partners for tax purposes. As such, this partnership does
not have a tax residency. The partners of this partnership
are incorporated in Canada.
(q)The Group’s shareholding in QIT Madagascar Minerals
SA (QMM) carries an 80% economic interest and 80% of
the total voting rights; a further 5% economic interest is
held through non-voting investment certificates to give
an economic interest of 85%.
(r)Entity is a partner in the ELYSIS Technology
Demonstration Plant Limited Partnership and
Electrode Manufacturing Demonstration Plant, L.P.
(s)Entity is a partner in the Rio Tinto Saskatchewan
Potash Holdings Limited Partnership.
(t)Entity is a participant in the Winu Joint Venture.
(u)Entity is a participant in the Western Range Joint
Venture.
(v)Entity is a participant in the Gunnison-Nuton Tax
Partnership (formerly known as Excelsior-Nuton).
(w)Entity is a participant in the Gladstone Power Station
Joint Venture.
(x)Entity is a participant in the Hope Downs Joint Venture.
(y)Entity is a participant in the Mitchell Plateau
Joint Venture.
(z)Entity is a participant in the Rhodes Ridge Joint Venture.
(aa)Entity is a participant in the Robe River Iron Associates
Joint Venture and Yarraloola Pastoral Co.
(bb)Entity is a participant in the Tomago Aluminium
Joint Venture.
(cc)Entity is a participant in the Winter Road Joint Venture.
(dd)Entity is a participant in the Dampier Seawater
Desalination Plant Joint Venture.
Pages 239 to 245 have been intentionally omitted.
Annual Report on Form 20-F 2025 | 246 | riotinto.com |
2025 Financial statements | Report of Independent Registered Public Accounting Firms
Report of Independent Registered
Public Accounting Firms
To the Shareholders and Board of Directors of Rio Tinto plc and Rio Tinto Limited:
Opinions on the Consolidated Financial Statements
We have audited the accompanying Consolidated Balance Sheet of Rio Tinto Group (‘the Group’), comprising of Rio Tinto plc and Rio Tinto
Limited, together with their subsidiaries as of December 31, 2025 and 2024, the related Consolidated Income Statement, Consolidated
Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Cash Flow Statement for each of the
years in the three‑year period ended December 31, 2025, and the related notes (collectively, the consolidated financial statements). In our
opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of December 31,
2025 and 2024, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2025,
in conformity with International Financial Reporting Standards Accounting Standards as issued by the International Accounting Standards
Board (IASB).
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the
Group’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 19,
2026, expressed an adverse opinion on the effectiveness of the Group’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Group’s management. Our responsibility is to express an opinion on
these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to
be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or
fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that
were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to
the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of
critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to
which they relate.
Evaluation of lithium goodwill
As discussed in Note 11, the goodwill balance as of 31 December 2025 was US$2,949 m, of which US$2,146 m related to Rio Tinto Lithium,
which includes Arcadium Lithium and Rincon. The Group performs goodwill impairment testing annually regardless of whether there has
been an impairment indicator or more frequently if events or changes in circumstances indicate a potential impairment.
We identified the Group’s evaluation of lithium goodwill as a critical audit matter. Significant auditor judgment was required to evaluate key
assumptions, including the long-run lithium carbonate price and the discount rate used in the assessment. Minor changes in these
assumptions could have a significant impact on the recoverable amount. We performed a sensitivity analysis to determine the significant
assumptions used to value the assets as at the balance sheet date, individually and in the aggregate, which required challenging auditor
judgement. Additionally, the evaluation of the key assumptions required specialised skills and knowledge.
The following are the primary procedures we performed to address this critical audit matter:
•We involved our valuation professionals with specialised skills and knowledge who assisted us in assessing the long-run lithium carbonate
price used in the Group’s goodwill assessment against market observable price forecasts.
•We assessed the long-run lithium carbonate price selected in the goodwill impairment assessment based on current macroeconomic
factors and industry trends.
•We involved our valuation professionals with specialised skills and knowledge who assisted us in challenging the Group’s discount rate by
comparing it to a range of discount rates that we independently developed using publicly available market data for comparable companies
and adjusted for certain risk factors specific to the assets.
Evaluation of Iron Ore (‘Pilbara’) provision for close-down and restoration
As discussed in Note 14 to the consolidated financial statements, the Group has a provision for close-down, restoration and environmental
activities (‘closure provisions’) of US$17,831m as of December 31, 2025, a portion of which relates to Pilbara Iron Ore (‘Pilbara’).
We identified the evaluation of provisions for close-down and restoration related to Pilbara as a critical audit matter. Significant auditor
judgement was required to evaluate the Group’s assumptions related to the life of operation and the probability, nature and timing of possible
closure and rehabilitation activities, and future close-down and restoration costs including costs associated with post-closure monitoring
(‘closure costs’).
Annual Report on Form 20-F 2025 | 247 | riotinto.com |
2025 Financial statements | Report of Independent Registered Public Accounting Firms
The following are the primary procedures we performed to address this critical audit matter.
•We evaluated the design and tested the operating effectiveness of certain internal controls over the Group’s process
to estimate provisions for close-down and restoration including the Group’s selection of key assumptions to be used.
•We evaluated the scope and competency of the Group’s experts, both internal and external to the Group, who produce the closure cost
estimates by examining the work they were involved to perform, and their professional qualifications and experience.
•We compared a selection of previous forecast cost assumptions to actual costs to assess the Group’s ability to accurately forecast closure
costs.
•We inspected the most recent closure studies and other technical material prepared by the Group relating to changes in the closure
provision to assess the nature and scope of restoration work planned to be undertaken. This included assumptions relating to the life of the
operation and the nature and timing of closure and rehabilitation activities.
•We evaluated the completeness of the provisions against the Group’s analysis of where disturbance requires rehabilitation and our
understanding of the Pilbara sites, including the probability, nature and timing of possible closure and rehabilitation activities.
•In addition, for certain sites, we involved mine closure professionals with specialised skills and knowledge who assisted in evaluating the
methodology applied by the Group’s third-party experts and assisted us in assessing certain assumptions regarding the nature and costs
of future rehabilitation activities based on their experience and familiarity with applicable legislative requirements and industry practice and
the Group’s closure commitments.
Evaluation of the property, plant and equipment and exploration and evaluation of assets acquired
As discussed in Note 5, on March 6, 2025, the Group completed the acquisition of Arcadium Lithium. This transaction was accounted for as a
business combination using the acquisition method of accounting. As a result of the transaction, the Group recognised certain tangible and
intangible assets and liabilities at their acquisition-date fair value, including US$2,054m of exploration and evaluation assets as described in
Note 12 and acquired property, plant and equipment of US$4,814m described in Note 5.
We identified the valuation of the property, plant and equipment and exploration and evaluation assets acquired as a critical audit matter.
Significant auditor judgment was required to evaluate key assumptions, including the long-run lithium carbonate price and the discount rate
used in the valuation of the property, plant and equipment and exploration and evaluations assets acquired. Minor changes in these
assumptions could have a significant impact on the fair value. We performed a sensitivity analysis to determine the significant assumptions
used to value the assets acquired, individually and in the aggregate, which required challenging auditor judgement. Additionally, the
evaluation of the key assumptions required specialised skills and knowledge.
The following are the primary procedures we performed to address this critical audit matter:
•We evaluated the design and tested the operating effectiveness of certain internal controls related to the development and review of the
long-run lithium carbonate price and discount rate as part of the Group’s acquisition-date valuation process.
•We involved our valuation professionals with specialised skills and knowledge who assisted us in assessing and challenging the long-run
lithium carbonate price used in the Group’s valuation of property, plant and equipment and exploration and evaluation assets by comparing
them to market observable price forecasts.
•We assessed the long-run lithium carbonate price selected in the valuation of property, plant and equipment and exploration and
evaluation assets acquired based on current macroeconomic factors and industry trends.
•We involved our valuation professionals with specialised skills and knowledge who assisted us in challenging the Group’s discount rate by
comparing it to a range of discount rates that we independently developed using publicly available market data for comparable companies
and adjusted for certain risk factors specific to the assets.
Evaluation of indicators of impairment or impairment reversals of property, plant and equipment for the Oyu Tolgoi copper-
gold mine cash generating unit (Oyu Tolgoi CGU)
As discussed, in Note 13 to the consolidated financial statements, as at December 31, 2025, the Group has US$82,889m of property, plant
and equipment, a portion of which relates to the Oyu Tolgoi copper-gold mine (Oyu Tolgoi CGU). As discussed in Note 4, external and
internal factors are monitored for indicators of impairment or impairment reversal and judgment is required to determine whether the impacts
of these factors are significant.
We identified the evaluation of indicators of impairment or impairment reversal of property, plant and equipment related to the Oyu Tolgoi
CGU as a critical audit matter. Significant auditor judgement was required to assess whether certain internal and external factors impacting
the Oyu Tolgoi CGU, including volatility on forecast commodity prices and the ramp up of underground mine production, result in indicators of
impairment or impairment reversal.
The following are the primary procedures we performed to address this critical audit matter.
•We evaluated the design and tested the operating effectiveness of certain internal controls related to the identification of indicators of
impairment or impairment reversal of property, plant and equipment for the Oyu Tolgoi CGU.
•We involved valuation professionals with specialised skills and knowledge who assisted in assessing the forecast commodity prices used
in the Group’s assessment, by comparing them to, and considering changes in, market observable price forecasts.
•We assessed the impact of the underground progress in the period by comparing the actual ramp up of underground mine production to
the Group's plans, to assess whether any deviation from these plans could represent an indicator of impairment or impairment reversal.
We also inquired of operational management to corroborate certain changes in assumptions.
We have served as the Company’s auditor since 2020.
/s/ KPMG LLP London, United Kingdom February 19, 2026 In respect of the Board of directors and shareholders of Rio Tinto plc | /s/ KPMG Perth, Australia February 19, 2026 In respect of the Board of directors and shareholders for Rio Tinto Limited |
Annual Report on Form 20-F 2025 | 248 | riotinto.com |
2025 Financial statements | Report of Independent Registered Public Accounting Firms
Report of Independent Registered
Public Accounting Firms
To the Shareholders and Board of Directors of Rio Tinto plc and Rio Tinto Limited:
Opinion on Internal Control Over Financial Reporting
We have audited Rio Tinto Group (‘the Group’), comprising of Rio Tinto plc and Rio Tinto Limited, internal control over financial reporting as of December
31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the
Treadway Commission. In our opinion, because of the effect of the material weakness, described below, on the achievement of the objectives of the control
criteria, the Group has not maintained effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal
Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Consolidated
Balance Sheet of the Group as of December 31, 2025 and 2024, the related Consolidated Income Statement, Consolidated Statement of Comprehensive
Income, Consolidated Statement of Changes in Equity and Consolidated Cash Flow Statement for each of the years in the three-year period ended
December 31, 2025, and the related notes (collectively, the consolidated financial statements) and our report dated February 19, 2026 expressed an
unqualified opinion on those consolidated financial statements.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the Group’s annual or interim financial statements will not be prevented or detected on a timely basis. A material weakness
related to inadequate risk assessment over certain input assumptions, including information used in the calculation of fair value of a newly acquired
business used in the purchase price allocation exercise and subsequent test of associated goodwill for impairment, resulting in ineffective design and
operation of certain related controls has been identified and included in management’s assessment. The material weakness was considered in determining
the nature, timing, and extent of audit tests applied in our audit of the 2025 consolidated financial statements, and this report does not affect our report on
those consolidated financial statements.
The Group acquired Arcadium Lithium plc during 2025, and management excluded from its assessment of the effectiveness of the Group’s internal control
over financial reporting as of 31 December 31 2025, Arcadium Lithium plc’s internal control over financial reporting associated with 9% of total assets and
2% of total sales revenue included in the consolidated financial statements of the Group as of and for the year ended 31 December 2025. Our audit of
internal control over financial reporting of the Group also excluded an evaluation of the internal control over financial reporting of Arcadium Lithium plc.
Basis for Opinion
The Group’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting, included in the accompanying Management’s report on internal control over financial reporting. Our responsibility is
to express an opinion on the Group’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial
reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures
as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A Group’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Group’s internal control over
financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the Group; (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Group
are being made only in accordance with authorizations of management and directors of the Group; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the Group’s assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
/s/ KPMG LLP London, United Kingdom February 19, 2026 In respect of the Board of directors and shareholders of Rio Tinto plc | /s/ KPMG Perth, Australia February 19, 2026 In respect of the Board of directors and shareholders for Rio Tinto Limited |
Pages 249 to 266 have been intentionally omitted.
Annual Report on Form 20-F 2025 | 267 | riotinto.com |
2025 Financial statements | Additional financial information
Financial information by business unit
Segmental revenue(a) for the year ended 31 December | Underlying EBITDA(a) for the year ended 31 December | Depreciation and amortisation for the year ended 31 December | ||||||||
Rio Tinto interest % | 2025 US$m | 2024 US$m Restated | 2023 US$m Restated | 2025 US$m | 2024 US$m Restated | 2023 US$m Restated | 2025 US$m | 2024 US$m Restated | 2023 US$m Restated | |
Aluminium & Lithium | ||||||||||
Bauxite | (b) | 3,887 | 3,061 | 2,390 | 1,847 | 1,250 | 662 | 309 | 365 | 373 |
Alumina | (c) | 3,926 | 3,612 | 2,882 | 1,003 | 799 | 136 | 126 | 142 | 170 |
North American Aluminium | (d) | 8,443 | 7,030 | 6,581 | 1,367 | 1,639 | 1,480 | 864 | 785 | 710 |
Pacific Aluminium | (e) | 3,391 | 2,844 | 2,613 | 375 | 363 | 169 | 204 | 154 | 165 |
Evaluation projects/other | 565 | 754 | 772 | (266) | (203) | (172) | – | – | – | |
Intra-segment | (4,100) | (3,651) | (2,953) | 72 | (175) | 7 | – | – | – | |
Aluminium | 16,112 | 13,650 | 12,285 | 4,398 | 3,673 | 2,282 | 1,503 | 1,446 | 1,418 | |
Lithium | (f) | 944 | – | – | 176 | (121) | (146) | 288 | – | – |
Total Aluminium & Lithium segment | 17,056 | 13,650 | 12,285 | 4,574 | 3,552 | 2,136 | 1,791 | 1,446 | 1,418 | |
Copper | ||||||||||
Kennecott | 100% | 2,766 | 2,599 | 1,430 | 870 | 720 | 178 | 600 | 718 | 500 |
Escondida | 30% | 4,582 | 3,424 | 2,756 | 3,379 | 2,221 | 1,619 | 449 | 426 | 355 |
Oyu Tolgoi | 66% | 4,992 | 2,184 | 1,625 | 3,545 | 1,105 | 639 | 846 | 473 | 476 |
Evaluation projects/other | 1,389 | 1,068 | 867 | (425) | (609) | (476) | 3 | 3 | 5 | |
Total Copper segment | 13,729 | 9,275 | 6,678 | 7,369 | 3,437 | 1,960 | 1,898 | 1,620 | 1,336 | |
Iron Ore | ||||||||||
Pilbara | (g) | 25,847 | 27,849 | 30,867 | 14,786 | 16,543 | 19,828 | 2,398 | 2,390 | 2,128 |
Iron Ore Company of Canada | 58.7% | 2,060 | 2,450 | 2,500 | 469 | 746 | 942 | 268 | 229 | 214 |
Dampier Salt | 68.4% | 304 | 412 | 422 | 76 | 117 | 120 | 14 | 23 | 21 |
Evaluation projects/other | (h) | 2,318 | 3,197 | 2,701 | (232) | (497) | 48 | 2 | – | – |
Intra-segment | (h) | (1,540) | (2,307) | (1,951) | 95 | 76 | (23) | – | – | – |
Total Iron Ore segment | 28,989 | 31,601 | 34,539 | 15,194 | 16,985 | 20,915 | 2,682 | 2,642 | 2,363 | |
Reportable segments total | 59,774 | 54,526 | 53,502 | 27,137 | 23,974 | 25,011 | 6,371 | 5,708 | 5,117 | |
Simandou iron ore project | (i) | – | – | – | (96) | (22) | (539) | 19 | 7 | – |
Rio Tinto Iron & Titanium | (j) | 1,729 | 1,993 | 2,172 | 148 | 609 | 582 | 249 | 226 | 222 |
Rio Tinto Borates | 100% | 814 | 763 | 802 | 210 | 183 | 212 | 64 | 65 | 58 |
Diamonds | (k) | 332 | 279 | 444 | (79) | (115) | 44 | 8 | 29 | 35 |
Other operations | (l) | 239 | 166 | 158 | (229) | (160) | (306) | 339 | 321 | 291 |
Inter-segment transactions | (13) | (21) | (21) | – | – | – | ||||
Central pension costs, share-based payments, insurance and derivatives | (74) | 153 | 168 | |||||||
Restructuring, project and one-off costs | (606) | (254) | (190) | |||||||
Central costs | (818) | (816) | (990) | 121 | 121 | 95 | ||||
Central exploration and evaluation | (230) | (238) | (100) | |||||||
Net interest | ||||||||||
Underlying EBITDA/earnings | 25,363 | 23,314 | 23,892 | |||||||
Items excluded from underlying EBITDA/earnings | (229) | 1,055 | (1,257) | |||||||
Reconciliation to consolidated income statement | ||||||||||
Share of EAUs sales and inter-subsidiary/EAUs sales | (5,237) | (4,048) | (3,016) | |||||||
Impairment charges net of reversals | (m) | (341) | (573) | (936) | ||||||
Depreciation and amortisation in subsidiaries excluding capitalised depreciation | (6,271) | (5,744) | (4,976) | |||||||
Depreciation and amortisation in EAUs | (594) | (559) | (484) | (594) | (559) | (484) | ||||
Taxation and finance items in EAUs | (1,514) | (1,002) | (741) | |||||||
Finance items | (1,846) | (876) | (1,713) | |||||||
Consolidated sales revenue/profit before taxation/ depreciation and amortisation | 57,638 | 53,658 | 54,041 | 14,568 | 15,615 | 13,785 | 6,577 | 5,918 | 5,334 | |
Annual Report on Form 20-F 2025 | 268 | riotinto.com |
2025 Financial statements | Additional financial information
Capital expenditure(a)(n) for the year ended 31 December | Operating assets(o) as at 31 December | Employees for the year ended 31 December | ||||||||
Rio Tinto interest % | 2025 US$m | 2024 US$m Restated | 2023 US$m Restated | 2025 US$m | 2024 US$m Restated | 2023 US$m Restated | 2025 | 2024 Restated | 2023 Restated | |
Aluminium & Lithium | ||||||||||
Bauxite | (b) | 231 | 159 | 159 | 2,105 | 2,289 | 2,649 | 3,182 | 3,188 | 3,008 |
Alumina | (c) | 289 | 279 | 325 | 689 | 804 | 1,315 | 2,230 | 2,502 | 2,600 |
North American Aluminium | (d) | 1,344 | 1,153 | 748 | 11,411 | 10,516 | 10,582 | 7,494 | 7,497 | 6,886 |
Pacific Aluminium | (e) | 117 | 102 | 99 | 736 | 706 | 340 | 3,351 | 2,728 | 2,563 |
Evaluation projects/other | – | – | – | 814 | 810 | 899 | 234 | 243 | 256 | |
Intra-segment | – | 1 | – | 78 | (15) | 98 | – | – | – | |
Aluminium | 1,981 | 1,694 | 1,331 | 15,833 | 15,110 | 15,883 | 16,491 | 16,158 | 15,313 | |
Lithium | (f) | 1,365 | 154 | 26 | 9,783 | 1,088 | 816 | 2,446 | 226 | 171 |
Total Aluminium & Lithium segment | 3,346 | 1,848 | 1,357 | 25,616 | 16,198 | 16,699 | 18,937 | 16,384 | 15,484 | |
Copper | ||||||||||
Kennecott | 100% | 593 | 774 | 735 | 2,589 | 2,391 | 2,606 | 2,234 | 2,502 | 2,411 |
Escondida | 30% | – | – | – | 3,316 | 2,779 | 2,844 | 1,203 | 1,135 | 1,203 |
Oyu Tolgoi | 66% | 1,278 | 1,277 | 1,230 | 16,857 | 16,692 | 15,334 | 4,876 | 4,734 | 4,515 |
Evaluation projects/other | 1 | 4 | 11 | 230 | 262 | 266 | 289 | 317 | 295 | |
Total Copper segment | 1,872 | 2,055 | 1,976 | 22,992 | 22,124 | 21,050 | 8,602 | 8,688 | 8,424 | |
Iron Ore | ||||||||||
Pilbara | (g) | 4,063 | 2,985 | 2,563 | 20,427 | 17,016 | 17,959 | 14,515 | 15,152 | 15,181 |
Iron Ore Company of Canada | 58.7% | 330 | 291 | 364 | 1,394 | 1,240 | 1,347 | 3,123 | 3,214 | 3,206 |
Dampier Salt | 68.4% | 29 | 27 | 25 | 94 | 5 | 146 | 286 | 422 | 430 |
Evaluation projects/other | (h) | – | – | – | 804 | 718 | 780 | 21 | 22 | 22 |
Intra-segment | (h) | – | – | – | (105) | (177) | (230) | – | – | – |
Total Iron Ore segment | 4,422 | 3,303 | 2,952 | 22,614 | 18,802 | 20,002 | 17,945 | 18,810 | 18,839 | |
Reportable segments total | 9,640 | 7,206 | 6,285 | 71,222 | 57,124 | 57,751 | 45,484 | 43,882 | 42,747 | |
Simandou iron ore project | (i) | 2,219 | 1,832 | 266 | 4,158 | 2,106 | 738 | 1,216 | 989 | 571 |
Rio Tinto Iron & Titanium | (j) | 229 | 244 | 240 | 3,270 | 3,215 | 3,386 | 4,123 | 4,397 | 4,415 |
Rio Tinto Borates | 100% | 64 | 57 | 49 | 438 | 475 | 502 | 981 | 989 | 1,013 |
Diamonds | (k) | 3 | 48 | 66 | (106) | (38) | 29 | 758 | 864 | 871 |
Other operations | (l) | 38 | 70 | 58 | (1,251) | (1,396) | (2,581) | 937 | 835 | 860 |
Inter-segment transactions | (3) | 6 | 7 | |||||||
Other items | 92 | 134 | 113 | (1,163) | (755) | (1,015) | 7,731 | 7,638 | 6,697 | |
Total | 12,285 | 9,591 | 7,077 | 76,565 | 60,737 | 58,817 | 61,230 | 59,594 | 57,174 | |
Add back: Proceeds from disposal of property, plant and equipment | 50 | 30 | 9 | |||||||
Total purchases of property, plant & equipment and intangibles as per cash flow statement | 12,335 | 9,621 | 7,086 | |||||||
Add: Net debt | (14,362) | (5,491) | (4,231) | |||||||
Equity attributable to owners of Rio Tinto | 62,203 | 55,246 | 54,586 | |||||||
Total employees | 61,230 | 59,594 | 57,174 | |||||||
Annual Report on Form 20-F 2025 | 269 | riotinto.com |
2025 Financial statements | Additional financial information
Business units are classified according to the Group’s management
structure. Our management structure is based on product groups
together with global support functions whose leaders make up the
Executive Committee. The Executive Committee members each
report directly to our Chief Executive who is the chief operating
decision maker and is responsible for allocating resources and
assessing performance of the operating segments. Finance costs
and net debt are managed on a Group-wide basis and are therefore
excluded from the segmental results
The financial information by business unit has been recast in
accordance with the organisational restructure announced on 27
August 2025 which simplified our product group structure from 4 to 3
segments. The main impacts are: Iron Ore Company of Canada
(IOC) has moved from the previous Minerals product group to the
Iron Ore product group and Rincon has moved from “evaluation
projects/other” in the previous Minerals product group to the new
Aluminium & Lithium product group; the other business activities
formerly in the Minerals product group are now classified outside of
the reportable segments. Rio Tinto Iron & Titanium and Rio Tinto
Borates were placed under strategic review during 2025, with
Diamonds now presented outside of our product group structure as
it managed by the Chief Commercial Officer.
On 6 March 2025, we acquired Arcadium Lithium plc, and its results
are included in the new Aluminium & Lithium product group as part
of "Lithium", together with Rincon.
The disclosures in this note include certain alternative performance
measures (non-IFRS measures). For more information on the non-
IFRS measures used by the Group, including definitions and
calculations, refer to the section titled alternative performance
measures (pages 270 to 274). Ownership interests are 100% unless
otherwise shown.
(a) | Segmental revenue, Underlying EBITDA and Capital expenditure are defined and calculated in note 1 from pages 170 to 171. |
(b) | Bauxite represents the Group’s interest in Gove and Weipa, Porto Trombetas (22%) and Sangaredi (22.9%). |
(c) | Alumina represents the Group’s interest in Jonquière (Vaudreuil), Yarwun, Queensland Alumina (80% equity and 20% additional tolling capacity in the income statement) and São Luis (Alumar) (10%). |
(d) | North American Aluminium represents the Group’s interest in Alma, Arvida, Arvida AP60, Grande-Baie, ISAL, Kitimat, Laterrière, Alouette (40%), Bécancour (25.1%), Sohar (20%) and Matalco (50%). |
(e) | Pacific Aluminium represents the Group’s interest in Bell Bay, Boyne Island (73.5%), Tiwai Point and Tomago (51.6%). On 30 September 2024, our interest in Boyne Island was increased from 59.4% to 71.05% following our acquisition of Mitsubishi Corporation’s 11.65% interest in Boyne Smelters Limited (BSL). On 1 November 2024, our interest was further increased to 73.5% following our acquisition of Sumitomo Chemical Company’s (SCC) 2.46% interest in BSL. On 1 November 2024, we also acquired SCC’s 20.64% interest in New Zealand Aluminium Smelters, increasing our interest from 79.36% to 100%. |
(f) | Lithium represents the Group’s interest in Rincon and, following the acquisition of Arcadium Lithium on 6 March 2025, the following operating mines: Olaroz (67%), Hombre Muerto, assets under construction in Argentina and Canada (50%), undeveloped properties and downstream processing facilities in Argentina, Canada, US, UK, China, and Japan (75%). |
(g) | Pilbara represents the Group’s holding in Hamersley, Hope Downs Joint Venture (50%), Western Range Joint Venture (54%) and Robe River Iron Associates (65%). The Group’s net beneficial interest in Robe River Iron Associates is 53%, as 30% is held through a 60% owned subsidiary and 35% is held through a 100% owned subsidiary. |
(h) | Segmental revenue, Underlying EBITDA, and Operating assets within Evaluation projects/other include activities relating to the shipment and blending of Pilbara and IOC iron ore inventories held portside in China and sold to domestic customers. Transactions between Pilbara or IOC and our portside trading business are eliminated through the Iron Ore “intra-segment” line. |
(i) | Rio Tinto SimFer UK Limited (which is wholly owned by the Group) holds a 53% interest in SimFer Jersey Limited (SimFer Jersey) which in turn, has an 85% interest in SimFer S.A., the company that will carry out the Simandou mining operations in Guinea, and an 85% interest in the company which is delivering SimFer Jersey’s scope of the co-developed rail and port infrastructure. SimFer Jersey at present has a 100% interest in the companies that will own and operate the transhipment vessels, however this is anticipated to reduce to 85% with the Government of Guinea taking a 15% interest before transhipment operations commence. These entities, together with the equity accounted WCS Rail and Port entities described in note 33 and La Compagnie du Transguinéen S.A., eventual owner and operator of the co-developed infrastructure, are referred to as the Simandou iron ore project. |
(j) | Includes our interests in Rio Tinto Iron and Titanium Quebec Operations, QIT Madagascar Minerals (QMM, economic interest of 85%) and Richards Bay Minerals (attributable interest of 74%). |
(k) | Relates to our 100% interest in the Diavik diamond mine and diamond marketing operations. |
(l) | Other operations includes our 98.43% interest in Energy Resources of Australia, sites being rehabilitated under the management of Rio Tinto Closure, Rio Tinto Marine, and the remaining legacy liabilities of Rio Tinto Coal Australia. These include provisions for onerous contracts, in relation to rail infrastructure capacity, partly offset by financial assets and receivables relating to contingent royalties and disposal proceeds. |
(m) | Refer to note 4 for allocation of impairment charges net of reversals between consolidated amounts and share of profit in EAUs. |
(n) | Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and purchases less sales of other intangible assets as derived from the consolidated cash flow statement. The details provided include 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations but exclude equity accounted units. |
(o) | Operating assets of the Group represents equity attributable to Rio Tinto adjusted for net debt. Operating assets of subsidiaries, joint operations and the Group’s share relating to equity accounted units are made up of net assets adjusted for net debt and post- retirement assets and liabilities, net of tax. Operating assets are stated after the deduction of non-controlling interests; these are calculated by reference to the net assets of the relevant companies (ie inclusive of such companies’ debt and amounts due to or from Rio Tinto Group companies). |
Annual Report on Form 20-F 2025 | 270 | riotinto.com |
2025 Financial statements | Additional financial information
Alternative performance measures
The Group presents certain alternative performance measures (non-IFRS measures) which are reconciled to directly comparable IFRS
financial measures below. These non-IFRS measures, hereinafter referred to as alternative performance measures (APMs), are used by
management to assess the performance of the business and provide additional information, which investors may find useful. APMs are
presented in order to give further insight into the underlying business performance of the Group's operations.
APMs are not consistently defined and calculated by all companies, including those in the Group’s industry. Accordingly, these measures
used by the Group may not be comparable with similarly titled measures and disclosures made by other companies. Consequently, these
APMs should not be regarded as a substitute for the IFRS measures and should be considered supplementary to those measures.
The following tables present the Group's key financial measures not defined according to IFRS and a reconciliation between those APMs and
their nearest respective IFRS measures.
Reconciliation of APMs to the nearest comparable IFRS financial measures for the year 2022 and 2021 can be found in the section APM of
our 2022 Annual Report on Form 20-F. Reconciliation of underlying return on capital employed and Net (debt)/cash for the year 2023 can be
found in our 2023 Annual Report on Form 20-F.
APMs derived from the income statement
The following income statement measures are used by the Group to provide greater understanding of the underlying business performance
of its operations and to enhance comparability of reporting periods. They indicate the underlying commercial and operating performance of
our assets including revenue generation, productivity and cost management.
Segmental revenue
Segmental revenue includes consolidated sales revenue plus the equivalent sales revenue of equity accounted units (EAUs) in proportion to our
equity interest (after adjusting for sales to/from subsidiaries). The reconciliation can be found in “Our financial performance” on page 170.
Underlying EBITDA
Underlying EBITDA represents profit before taxation, net finance items, depreciation and amortisation adjusted to exclude the EBITDA
impact of items that do not reflect the underlying performance of our reportable segments. The reconciliation of profit after tax to underlying
EBITDA can be found in “Our financial performance” on page 171.
Underlying EBITDA margin
Underlying EBITDA margin is defined as underlying EBITDA divided by the aggregate of consolidated sales revenue and our share of equity
account unit sales after eliminations.
2025 US$m | 2024 US$m | 2023 US$m | |
Underlying EBITDA | 25,363 | 23,314 | 23,892 |
Consolidated sales revenue | 57,638 | 53,658 | 54,041 |
Share of equity accounted unit sales and inter-subsidiary/equity accounted unit sales eliminations | 5,237 | 4,048 | 3,016 |
62,875 | 57,706 | 57,057 | |
Underlying EBITDA margin | 40% | 40% | 42% |
Annual Report on Form 20-F 2025 | 271 | riotinto.com |
2025 Financial statements | Additional financial information
Underlying earnings
Underlying earnings represents net earnings attributable to the owners of Rio Tinto, adjusted to exclude items that do not reflect the
underlying performance of the Group’s operations.
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.
The following items are excluded from net earnings in arriving at underlying earnings in each period irrespective of materiality:
•net (gains)/losses on consolidation or disposal of interests in businesses
•net impairment charges and reversals
•(profit)/loss after tax from discontinued operations
•exchange and derivative gains and losses. This adjustment includes exchange (gains)/losses on external net debt 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 with an impairment charge, or for legacy sites where the disturbance
or environmental contamination relates to the pre-acquisition period.
In addition, there is a final judgemental category which includes, where applicable, other credits and charges that, individually or in aggregate
if of a similar type, are of a nature or size to require exclusion in order to provide additional insight into underlying business performance. In
2025, there were no items in this category. In 2024 this includes provision for uncertain tax positions in relation to disputes with the
Mongolian Tax Authority and the recognition of deferred tax assets at Energy Resources of Australia.
Exclusions from underlying earnings relating to equity accounted units are stated after tax and included in the column “Pre-tax”.
Pre-tax 2025 US$m | Taxation 2025 US$m | Non- controlling interests 2025 US$m | Net amount 2025 US$m | Net amount 2024 US$m | Net amount 2023 US$m | |
Net earnings | 14,568 | (4,319) | (283) | 9,966 | 11,552 | 10,058 |
Items excluded from underlying earnings | ||||||
Impairment charges net of reversals (note 4) | 341 | (100) | – | 241 | 534 | 652 |
Gains on consolidation and disposal of interests in businesses | – | – | – | – | (897) | – |
Foreign exchange and derivative losses/(gains): | ||||||
– Exchange losses/(gains) on external net debt, intragroup balances and derivatives(a) | 471 | 14 | 1 | 486 | (293) | 243 |
– (Gains)/losses on currency and interest rate derivatives not qualifying for hedge accounting(b) | (8) | 1 | (4) | (11) | 74 | 87 |
– (Gains)/losses on embedded commodity derivatives not qualifying for hedge accounting(c) | (63) | 27 | – | (36) | 65 | (23) |
Change in closure estimates (non-operating and fully impaired sites)(d) | 293 | (71) | – | 222 | 73 | 1,102 |
Uncertain Tax Provisions | – | – | – | – | 195 | – |
Recognition of deferred tax assets at Energy Resources of Australia | – | – | – | – | (436) | – |
Deferred tax arising on internal sale of assets in Canadian operations | – | – | – | – | – | (364) |
Total excluded from underlying earnings | 1,034 | (129) | (3) | 902 | (685) | 1,697 |
Underlying earnings | 15,602 | (4,448) | (286) | 10,868 | 10,867 | 11,755 |
(a)Exchange losses/(gains) on external net debt, intragroup balances and derivatives includes post-tax losses on intragroup balances of US$761 million (2024: US$647 million gain; 2023:
US$316 million loss) offset by post-tax gains on external net debt of US$275 million (2024: US$354 million loss; 2023: US$73 million gain), primarily as a result of the Australian dollar
strengthening against the US dollar compared to the 31 December 2024 spot rate.
(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 (MTM) 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. In 2025, this includes unrealised gains (2024: losses) recognised in relation to our renewable PPAs.
(d)In 2025, the change in closure estimate charge includes US$233 million related to the Yarwun alumina refinery, due to an acceleration of its forecast closure date as studies had not
identified an economically viable solution for the construction of a second tailings storage facility. This qualified under our accounting policy for exclusion from underlying earnings as it
also resulted in an impairment charge during the year (refer to note 4 for further details). In 2024, the charge to the income statement related to the change in estimates of underlying
closure cash flows, net of impact of a change in discount rate, expressed in real-terms, from 2.0% to 2.5% as applied to provisions for close-down, restoration and environmental
liabilities at legacy sites where the environmental damage preceded ownership by Rio Tinto. In 2023, the charge includes US$873 million related to the closure provision update
announced by ERA on 12 December 2023, together with the update included in their half year results for the period ended 30 June 2023, published in August 2023. This update was
considered material and therefore it was aggregated with other closure study updates which were similar in nature and have been excluded from underlying earnings.
Annual Report on Form 20-F 2025 | 272 | riotinto.com |
2025 Financial statements | Additional financial information
Basic underlying earnings per share
Basic underlying earnings per share is calculated as underlying earnings divided by the weighted average number of shares outstanding
during the year.
2025 (cents) | 2024 (cents) | 2023 (cents) | |
Basic earnings per ordinary share | 613.7 | 711.7 | 620.3 |
Items excluded from underlying earnings per share(a) | 55.5 | (42.2) | 104.7 |
Basic underlying earnings per ordinary share | 669.2 | 669.5 | 725.0 |
(a)Calculation of items excluded from underlying earnings per share.
2025 | 2024 | 2023 | |
Items excluded from underlying earnings (US$m) (refer to page 271) | 902.0 | (685.0) | 1,697.0 |
Weighted average number of shares (millions) | 1,624.0 | 1,623.1 | 1,621.4 |
Items excluded from underlying earnings per share (cents) | 55.5 | (42.2) | 104.7 |
We have provided basic underlying earnings per share as this allows the comparability of financial performance adjusted to exclude items
which do not reflect the underlying performance of the Group's operations.
Interest cover
Interest cover is a financial metric used to monitor our ability to service debt. It represents the number of times finance income and finance
costs (including amounts capitalised) are covered by profit before taxation, before finance income, finance costs, share of profit after tax of
equity accounted units and items excluded from underlying earnings, plus dividends from equity accounted units.
2025 US$m | 2024 US$m | |
Profit before taxation | 14,568 | 15,615 |
Add back | ||
Finance income | (465) | (514) |
Finance costs | 1,062 | 763 |
Share of profit after tax of equity accounted units | (1,478) | (838) |
Items excluded from underlying earnings | 1,034 | (715) |
Add: Dividends from equity accounted units | 1,070 | 1,067 |
Calculated earnings | 15,791 | 15,378 |
Finance income | 465 | 514 |
Finance costs | (1,062) | (763) |
Add: Amounts capitalised | (411) | (424) |
Total net finance costs before capitalisation | (1,008) | (673) |
Interest cover | 16 | 23 |
Payout ratio
The payout ratio is used by us to guide the dividend policy we implemented in 2016, under which we have sought to return 40-60% of
underlying earnings, on average through the cycle, to shareholders as dividends. It is calculated as total equity dividends per share to
owners of Rio Tinto declared in respect of the financial year divided by underlying earnings per share (as defined above). Dividends declared
usually include an interim dividend paid in the year, and a final dividend paid after the end of the year. Any special dividends declared in
respect of the financial year are also included.
2025 (cents) | 2024 (cents) | |
Interim dividend declared per share | 148.0 | 177.0 |
Final dividend declared per share | 254.0 | 225.0 |
Total dividend declared per share for the year | 402.0 | 402.0 |
Underlying earnings per share | 669.2 | 669.5 |
Payout ratio | 60% | 60% |
Annual Report on Form 20-F 2025 | 273 | riotinto.com |
2025 Financial statements | Additional financial information
APMs derived from cash flow statement
Capital expenditure
Capital expenditure includes the net sustaining and development expenditure on property, plant and equipment, and on intangible assets.
This is equivalent to “Purchases of property, plant and equipment and intangible assets” in the cash flow statement less “Sales of property,
plant and equipment and intangible assets”.
This measure is used to support management's objective of effective and efficient capital allocation as we need to invest in existing assets in
order to maintain and improve productive capacity, and in new assets to drive business growth.
2025 US$m | 2024 US$m | 2023 US$m | |
Purchase of property, plant and equipment and intangible assets | 12,335 | 9,621 | 7,086 |
Less: Sales of property, plant and equipment and intangible assets | (50) | (30) | (9) |
Capital expenditure | 12,285 | 9,591 | 7,077 |
Rio Tinto share of capital investment
Rio Tinto’s share of capital investment represents our economic investment in capital projects.
The measure is based upon our capital expenditure APM (as defined above), adjusted to deduct equity or shareholder loan financing
provided to partially owned subsidiaries by non-controlling interests in respect of major capital projects in the period and contributions from
other third parties. In circumstances where the funding to be provided by non-controlling interests is not received in the same period as the
underlying capital investment, this adjustment is applied in the period in which the underlying capital investment is made, not when the
funding is received. Where funding which would otherwise be provided directly by shareholders is replaced with project financing, an
adjustment is also made to deduct the share of project financing attributable to the non-controlling interest. This adjustment is not made in
cases where Rio Tinto has unilaterally guaranteed this project financing. Lastly, funding contributed by the Group to equity accounted units
for its share of investment in their major capital projects is added to the measure. No adjustment is made to the Capital expenditure APM
where capital expenditure is funded from the operating cash flows of the subsidiary or EAU.
2025 US$m | 2024 US$m Adjusted(a) | 2023 US$m Adjusted(a) | |
Capital expenditure(a) | 12,285 | 9,591 | 7,077 |
Funding provided by the group to EAUs(b) | 557 | 965 | – |
Total capital investment(a) | 12,842 | 10,556 | 7,077 |
Less: Equity or shareholder loan financing received/due from non-controlling interests(c) | (1,439) | (1,063) | (125) |
Rio Tinto share of capital investment(a) | 11,403 | 9,493 | 6,952 |
(a)In 2025, we revised the calculation of “Rio Tinto share of capital investment” to be based on our “Capital expenditure” APM, as presented above. Accordingly, we have adjusted prior
year comparatives for comparability.
(b)Funding provided by the group to EAUs relates to funding of WCS Rail and Port Holding Entities (WCS) in relation to the Simandou project, consisting of a direct equity investment in
WCS of US$249 million (2024: US$431 million) and loans provided totalling US$308 million (2024: US$534 million).
(c)We received US$1,321 million (2024: US$1,505 million) from Chalco Iron Ore Holdings Ltd (CIOH) interests of which US$1,160 million (2024: US$1,063 million) relates to CIOH’s 47%
share of capital expenditure incurred on the Simandou project and associated funding provided by the Group to EAUs during the current year on an accruals basis. In 2025, we also
received US$236 million from Investissement Québec (IQ) in respect of their 50% share of capital expenditure incurred on the Nemaska lithium development project. The equivalent
amount, on an accruals basis, of US$279 million is included in Rio Tinto share of capital investment.
Free cash flow
Free cash flow is defined as net cash generated from operating activities minus purchases of property, plant and equipment and intangibles
and payments of lease principal, plus proceeds from the sale of property, plant and equipment and intangible assets.
This measures the net cash returned by the business after the expenditure of sustaining and development capital. This cash can be used for
shareholder returns, reducing debt and other investing/financing activities.
2025 US$m | 2024 US$m | 2023 US$m | |
Net cash generated from operating activities | 16,832 | 15,599 | 15,160 |
Less: Purchase of property, plant and equipment and intangible assets | (12,335) | (9,621) | (7,086) |
Less: Lease principal payments | (522) | (455) | (426) |
Add: Sales of property, plant and equipment and intangible assets | 50 | 30 | 9 |
Free cash flow | 4,025 | 5,553 | 7,657 |
Annual Report on Form 20-F 2025 | 274 | riotinto.com |
2025 Financial statements | Additional financial information
APMs derived from the balance sheet
Net debt
Net debt is total borrowings plus lease liabilities less cash and cash equivalents and other liquid investments, adjusted for derivatives related
to net debt.
Net debt measures how we are managing our balance sheet and capital structure. Refer to note 20 on page 200 for the reconciliation.
Net gearing ratio
Net gearing ratio is defined as net debt divided by the sum of net debt and total equity at the end of each year. It demonstrates the degree to
which the Group’s operations are funded by debt versus equity.
2025 US$m | 2024 US$m | |
Net debt | 14,362 | 5,491 |
Total equity | 67,024 | 57,965 |
Net debt plus total equity | 81,386 | 63,456 |
Net gearing ratio | 18% | 9% |
Underlying return on capital employed
Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed
(operating assets).
Underlying ROCE measures how efficiently we generate profits from investment in our portfolio of assets.
2025 US$m | 2024 US$m | |
Profit after tax attributable to owners of Rio Tinto (net earnings) | 9,966 | 11,552 |
Items added back to derive underlying earnings (refer to page 271) | 902 | (685) |
Underlying earnings | 10,868 | 10,867 |
Add/(deduct): | ||
Finance income per the income statement | (465) | (514) |
Finance costs per the income statement | 1,062 | 763 |
Tax on finance cost | (71) | (208) |
Non-controlling interest share of net finance costs | (560) | (496) |
Net interest cost in equity accounted units (Rio Tinto share) | 49 | 60 |
Net interest | 15 | (395) |
Adjusted underlying earnings | 10,883 | 10,472 |
Equity attributable to owners of Rio Tinto - beginning of the year | 55,246 | 54,586 |
Net debt - beginning of the year | 5,491 | 4,231 |
Operating assets - beginning of the year | 60,737 | 58,817 |
Equity attributable to owners of Rio Tinto - end of the year | 62,203 | 55,246 |
Net debt - end of the year | 14,362 | 5,491 |
Operating assets - end of the year | 76,565 | 60,737 |
Average operating assets | 68,651 | 59,777 |
Underlying return on capital employed | 16% | 18% |
Annual Report on Form 20-F 2025 | 275 | riotinto.com |
Production, Mineral Reserves, Mineral Resources
and operations
Metals and minerals production | 276 |
Mineral Resources and Mineral Reserves | 278 |
Qualified Persons | 280 |
Mineral Reserves | 282 |
Mineral Resources | 294 |
Mines and production facilities | 305 |
| Image: Conveyor belt between stockpiles at Weipa Operations, Australia. |
Annual Report on Form 20-F 2025 | 276 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations
Metals and minerals production
Rio Tinto % interest1 | 2025 Production | 2024 Production | 2023 Production | ||||
Total | Rio Tinto share | Total | Rio Tinto share | Total | Rio Tinto share | ||
ALUMINA('000 tonnes) | |||||||
Jonquière (Vaudreuil) (Canada) | 100% | 1,370 | 1,370 | 1,353 | 1,353 | 1,392 | 1,392 |
Jonquière (Vaudreuil) specialty plant (Canada) | 100% | 110 | 110 | 111 | 111 | 109 | 109 |
Queensland Alumina (Australia) | 80% | 3,488 | 2,791 | 3,384 | 2,707 | 3,366 | 2,693 |
São Luis (Alumar) (Brazil) | 10% | 3,796 | 380 | 3,687 | 369 | 3,375 | 338 |
Yarwun (Australia) | 100% | 2,943 | 2,943 | 2,762 | 2,762 | 3,006 | 3,006 |
Rio Tinto total | 7,593 | 7,303 | 7,537 | ||||
ALUMINIUM (primary) ('000 tonnes) | |||||||
Alma (Canada) | 100% | 485 | 485 | 483 | 483 | 484 | 484 |
Alouette (Sept-Îles) (Canada) | 40% | 616 | 247 | 632 | 253 | 634 | 253 |
Arvida (Canada) | 100% | 130 | 130 | 153 | 153 | 172 | 172 |
Arvida AP60 (Canada) | 100% | 60 | 60 | 61 | 61 | 59 | 59 |
Bécancour (Canada) | 25% | 470 | 118 | 473 | 119 | 465 | 117 |
Bell Bay (Australia) | 100% | 190 | 190 | 187 | 187 | 186 | 186 |
Boyne Island (Australia)2 | 74% | 504 | 370 | 507 | 318 | 496 | 295 |
Grande-Baie (Canada) | 100% | 229 | 229 | 229 | 229 | 229 | 229 |
ISAL (Reykjavik) (Iceland) | 100% | 203 | 203 | 202 | 202 | 209 | 209 |
Kitimat (Canada) | 100% | 406 | 406 | 419 | 419 | 377 | 377 |
Laterrière (Canada) | 100% | 251 | 251 | 252 | 252 | 244 | 244 |
Sohar (Oman) | 20% | 400 | 80 | 399 | 80 | 398 | 80 |
Tiwai Point (New Zealand)3 | 100% | 315 | 315 | 290 | 239 | 334 | 265 |
Tomago (Australia) | 52% | 574 | 296 | 587 | 302 | 589 | 304 |
Rio Tinto total | 3,380 | 3,296 | 3,272 | ||||
Recycled production ('000 tonnes) | |||||||
Matalco | 50% | 538 | 269 | 528 | 264 | – | – |
BAUXITE ('000 tonnes)4 | |||||||
Gove (Australia) | 100% | 12,729 | 12,729 | 12,721 | 12,721 | 11,566 | 11,566 |
Porto Trombetas (MRN) (Brazil) | 22% | 11,560 | 2,543 | 11,523 | 2,535 | 11,472 | 1,502 |
Sangaredi (Guinea)5 | 23% | 17,032 | 7,665 | 14,043 | 6,319 | 14,278 | 6,425 |
Weipa (Australia) | 100% | 39,464 | 39,464 | 37,078 | 37,078 | 35,126 | 35,126 |
Rio Tinto total | 62,400 | 58,653 | 54,619 | ||||
BORATES (B2O3 content) (‘000 tonnes) | |||||||
Rio Tinto Borates – Boron (US) | 100% | 502 | 502 | 504 | 504 | 495 | 495 |
COPPER (mine production) ('000 tonnes)4 | |||||||
Bingham Canyon (US) | 100% | 125 | 125 | 123 | 123 | 152 | 152 |
Escondida (Chile) | 30% | 1,272 | 382 | 1,196 | 359 | 1,000 | 300 |
Oyu Tolgoi (Mongolia) | 66% | 345 | 228 | 215 | 142 | 168 | 111 |
Rio Tinto total mine production | 735 | 624 | 562 | ||||
COPPER (refined) ('000 tonnes) | |||||||
Escondida (Chile) | 30% | 187 | 56 | 184 | 55 | 222 | 67 |
Kennecott (US)6 | 100% | 134 | 134 | 193 | 193 | 109 | 109 |
Rio Tinto total refined production | 190 | 248 | 175 | ||||
COPPER (production-consolidated basis) ('000 tonnes) | |||||||
Kennecott (US)6 - Production of refined metal | 134 | 134 | 193 | 193 | 109 | 109 | |
Escondida (Chile)7 - Mill production (metal in concentrates) | 348 | 348 | 329 | 329 | – | – | |
Escondida (Chile) - Refined production from leach plants | 56 | 56 | 55 | 55 | – | – | |
Oyu Tolgoi (Mongolia) - Metal in concentrates | 345 | 345 | 215 | 215 | – | – | |
Rio Tinto total production - consolidated basis | 883 | 793 | 608 | ||||
DIAMONDS ('000 carats) | |||||||
Diavik (Canada) | 100% | 4,429 | 4,429 | 2,759 | 2,759 | 3,340 | 3,340 |
GOLD (mined) ('000 ounces)4 | |||||||
Bingham Canyon (US) | 100% | 117.8 | 117.8 | 95.2 | 95.2 | 104.8 | 104.8 |
Escondida (Chile) | 30% | 152.1 | 45.6 | 168.6 | 50.6 | 199.2 | 59.7 |
Oyu Tolgoi (Mongolia) | 66% | 455.9 | 300.9 | 206.4 | 136.2 | 177.3 | 117 |
Rio Tinto total | 464.3 | 282 | 281.5 | ||||
See notes on page 277.
Annual Report on Form 20-F 2025 | 277 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Metals and minerals production
Rio Tinto % interest1 | 2025 Production | 2024 Production | 2023 Production | ||||
Total | Rio Tinto share | Total | Rio Tinto share | Total | Rio Tinto share | ||
GOLD (refined) (‘000 ounces) | |||||||
Kennecott (US)6 | 100.0% | 117 | 117 | 144 | 144 | 74 | 74 |
IRON ORE ('000 tonnes)8 | |||||||
Hamersley mines (Australia) | See footnote 9 | 229,605 | 229,605 | 224,816 | 224,816 | 225,898 | 225,898 |
Hope Downs (Australia) | 50.0% | 36,751 | 18,375 | 41,956 | 20,978 | 46,482 | 23,241 |
Iron Ore Company of Canada (Canada) | 58.7% | 15,905 | 9,339 | 16,086 | 9,446 | 16,478 | 9,676 |
Robe River - Robe Valley (Australia) | 53.0% | 28,610 | 15,163 | 31,742 | 16,823 | 29,162 | 15,456 |
Robe River - West Angelas (Australia) | 53.0% | 32,326 | 17,133 | 29,457 | 15,612 | 29,999 | 15,899 |
Rio Tinto total8 | 289,616 | 287,676 | 290,171 | ||||
Simandou iron ore production ('000 tonnes)10 | 45.0%11 | 2,271 | 1,023 | N/A | N/A | ||
LITHIUM ('000 tonnes) | |||||||
Lithium carbonate | See footnote 12 | 60 | 49 | ||||
Lithium hydroxide | 100.0% | 21 | 21 | N/A | N/A | N/A | N/A |
Spodumene | 100.0% | 34 | 34 | N/A | N/A | N/A | N/A |
Other lithium specialities (LCE) | 100.0% | 6 | 6 | N/A | N/A | N/A | N/A |
Total lithium carbonate equivalent (LCE) production13 | 57¹⁴ | N/A | N/A | ||||
MOLYBDENUM ('000 tonnes)4 | |||||||
Bingham Canyon (US) | 100.0% | 5.1 | 5.1 | 2.6 | 2.6 | 1.8 | 1.8 |
SALT ('000 tonnes)15 | |||||||
Production ('000 tonnes) | |||||||
Dampier Salt (Australia) | 68.4% | 6,949 | 4,750 | 8,518 | 5,823 | 8,737 | 5,973 |
SILVER (mined) ('000 ounces)6 | |||||||
Metal in concentrates production ('000 ounces) | |||||||
Bingham Canyon (US) | 100.0% | 1,734 | 1,734 | 1,484 | 1,484 | 1,618 | 1,618 |
Escondida (Chile) | 30.0% | 7,810 | 2,343 | 6,042 | 1,813 | 4,921 | 1,476 |
Oyu Tolgoi (Mongolia) | 66.0% | 2,180 | 1,439 | 1,424 | 940 | 1,086 | 717 |
Rio Tinto total | 5,516 | 4,236 | 3,811 | ||||
SILVER (refined) ('000 ounces) | |||||||
Kennecott (US)6 | 100.0% | 1,838 | 1,838 | 2,314 | 2,314 | 1,407 | 1,407 |
TITANIUM DIOXIDE SLAG (‘000 tonnes) | |||||||
Rio Tinto Iron & Titanium (Canada/South Africa)16 | 100.0% | 975 | 975 | 990 | 990 | 1111 | 1111 |
Production data notes
1.Rio Tinto percentage interest shown above is at 31 December 2025.
2.On 1 November 2024, Rio Tinto’s ownership interest in Boyne Smelters Limited (BSL) increased from 71.04% to 73.5%. Production is reported including this change from 1 November 2024.
3.On 1 November 2024, Rio Tinto’s ownership interest in Tiwai Point Smelter (NZAS) increased from 79.36% to 100%. Production is reported including this change from 1 November 2024.
4.Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or doré bullion irrespective of whether these products are then refined onsite,
except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets.
5.Rio Tinto has a 22.95% shareholding in the Sangaredi mine but benefits from 45.0% of production.
6.We continue to process third party concentrate to optimise smelter utilisation, including 4 thousand tonnes of cathode produced from purchased concentrate in Q4 2025 (39 thousand
tonnes for full year 2025). Purchased and tolled copper concentrates are excluded from reported production figures and guidance. Sales of cathodes produced from purchased
concentrate are included in reported revenues.
7.Mill production was previously reported together with recoverable copper in ore stacked for leaching as mined production.
8.Mine production figures for metals refer to the total quantity of metal produced in concentrates, leach liquor or doré bullion irrespective of whether these products are then refined onsite,
except for the data for bauxite and iron ore which represent production of marketable quantities of ore plus concentrates and pellets. Iron Ore production refers to saleable production,
after crushing, screening and beneficiation processes. This, therefore, excludes Simandou production in 2025 which represents crushed ore at the mine gate. Final crushing of
Simandou ore will initially be undertaken in China.
9.Includes 100% of production from Paraburdoo, Mt Tom Price, Western Turner Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar, Gudai-Darri, Eastern
Range and Western Range mines. Whilst Rio Tinto owns 54% of the Eastern Range and the Western Range mines, under the terms of the joint venture agreement, Hamersley Iron
manages the operation and is obliged to purchase all mine production from the joint venture and therefore all of the production is included in Rio Tinto's share of production.
10.Simandou production represents crushed ore at mine gate in wet metric tonnne. Final crushing initially will be undertaken in China.
11.Represents the Rio Tinto equity share of SimFer Jersey (53% owned by Rio Tinto), which owns 85% of the SimFer mine (Blocks 3&4).
12.Lithium carbonate quantities reflect Rio Tinto’s 66.5% ownership in Olaroz, 100% ownership in Fenix.
13.The lithium value chain is vertically integrated and as a result production volumes are not additive. Lithium Carbonate Equivalent (LCE) is derived from volumes of lithium carbonate,
lithium chloride, and spodumene concentrate. These compounds are used as feedstock in downstream production.
14.Q1 2025 LCE production from Arcadium was 17kt of which 6kt was produced since completion of the acquisition in March. Accordingly of the 57kt LCE production in 2025, 46kt was
attributable to Rio Tinto.
15.In December 2024, we completed the sale of Dampier Salt Limited’s Lake MacLeod operation to Leichhardt Industrial Group. Following this divestment, we continue to operate solar salt
sites at Dampier and Port Hedland.
16.Quantities comprise 100% of Rio Tinto Fer et Titane and Rio Tinto's 74% interest in Richards Bay Minerals (RBM).
Annual Report on Form 20-F 2025 | 278 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations
Mineral Resources and Mineral Reserves
Mineral Resources and Mineral Reserves reporting
Mineral Resources and Ore Reserves for Rio Tinto managed
operations are reported in accordance with the Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore
Reserves, 2012 edition (the JORC Code) as required by the
Australian Securities Exchange (ASX). Rio Tinto also files this Form
20-F with the SEC and prepares the Form 20-F Mineral Resources
and Mineral Reserves in accordance with subpart 1300 of
Regulation S-K (SK-1300). Mineral Reserves under SK-1300 are the
equivalent of Ore Reserves under the JORC Code.
A Mineral Resource is a concentration or occurrence of solid
material of economic interest in or on the Earth’s crust in such form,
grade (or quality), and quantity that there are reasonable prospects
for eventual economic extraction. Estimates of such material are
based largely on geological information with only preliminary
consideration of mining, economic and other factors. While in the
judgement of the Qualified Persons (Competent Persons as defined
by the JORC Code) there are realistic expectations that all or part of
the Mineral Resources will eventually become Proven or Probable
Mineral Reserves, there is no guarantee that this will occur as the
result depends on further technical and economic studies and
prevailing economic conditions in the future.
A Mineral Reserve (or Ore Reserve as defined by JORC) is the
economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted. It is
defined by studies at pre-feasibility or feasibility level as appropriate,
with the application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction can reasonably be justified.
Mineral Resources and Mineral Reserves information in the
following tables is based on information compiled by Qualified
Persons (as defined by SK-1300), most of whom are full time
employees of Rio Tinto or related companies. Each has had a
minimum of 5 years’ relevant experience and is a member or fellow
of the Australasian Institute of Mining and Metallurgy (AusIMM),
Australian Institute of Geoscientists (AIG) or a recognised
professional organisation (RPO). Each Qualified Person consents to
the inclusion in this Form 20-F of information they have provided in
the form and context in which it appears. Qualified Persons
responsible for the estimates are listed on pages 280-281. by
operation, along with their professional affiliation, employer, and
accountability for Mineral Resources and/or Mineral Reserves.
The Mineral Resources and Mineral Reserves figures in the
following tables are as of 31 December 2025.
Rio Tinto’s Mineral Resources are reported as additional (exclusive) to
the reported Mineral Reserves, with the exception of the lithium brines
Mineral Resources. These are reported both inclusive and exclusive of
Mineral Reserves. Reporting of Mineral Resources inclusive of Mineral
Reserves is industry-standard for in situ lithium brines. Exclusive Mineral
Resources for lithium brines are reported to satisfy SK-1300 reporting
rulings.
Metric units are used throughout. The figures used to calculate
Rio Tinto’s Mineral Resources and Mineral Reserves are more
precise than the rounded numbers shown in the tables, hence small
differences might result if the calculations are repeated using the
tabulated figures.
ASX releases incorporating JORC Table 1 reports for new or
materially changed significant deposits are released to the market.
They are also available at riotinto.com/resourcesandreserves.
Non-managed and joint venture operations
Mineral Resources and Mineral Reserves from externally managed
operations, in which Rio Tinto holds a minority share, are reported
as received from the managing entity and in accordance with the
SK-1300.
ASX, SEC and other jurisdiction exchange releases generated by
non-managed units or joint venture partners are referenced within
the reporting footnotes, with the location and initial reporting date
identified.
Australian Stock Exchange vs US Securities and
Exchange Commission reporting
Some variations may occur between the reporting in accordance
with the JORC Code and SK-1300 with the main difference being a
result of pricing assumptions:
•For Mineral Resources and Ore Reserves reporting, the JORC
Code envisages the use of reasonable investment assumptions to
test the economic viability of the Ore Reserves and the
reasonable prospects of eventual economic extraction for the
Mineral Resources. To achieve this, we use internally generated,
projected long-term commodity prices.
•SK-1300 requires the use of a justifiable commodity price to test
the economic viability of the Mineral Reserves and the reasonable
prospects of economic extraction for the Mineral Resources, and
prices used in calculating the estimates must be disclosed. As a
result of the commercial sensitivity of Rio Tinto’s long-term
commodity prices, we use commercially available consensus
pricing or historical pricing for SEC reporting.
Technical Report Summaries
For SEC reporting purposes, the Pilbara Operations, Oyu Tolgoi,
Escondida and Simandou are considered material to the Group and
hence require submission of a Technical Report Summary.
Technical Report Summaries for the Pilbara Operations and
Escondida are filed as exhibit 96.1 and exhibit 96.2, respectively, to
this Form 20-F.
The Technical Report Summary for Simandou was filed as exhibit
96.4 to the Form 20-F for the year ended 31 December 2023; and
the Technical Report Summary for Oyu Tolgoi was filed as exhibit
96.3 to the Form 20-F for the year ended 31 December 2022.
Mineral Resources and Mineral Reserves
governance and internal controls
Rio Tinto has well-established governance processes and internal
controls to support the generation and publication of Mineral
Resources and Mineral Reserves, including a series of business unit
and product group structures and processes independent of
operational reporting.
Audit & Risk Committee
The Audit & Risk Committee’s remit includes the governance of
Mineral Resources and Mineral Reserves. This includes an annual
review of Mineral Resources and Mineral Reserves at a Group level,
as well as a review of findings and progress from the Group Internal
Audit program.
Ore Reserves Steering Committee
The Ore Reserves Steering Committee (ORSC), chaired by the
Chief Safety & Technical Officer, Safety, Development & Technical,
meets at least quarterly. The ORSC comprises senior
representatives across our technical, financial, governance and
business groups, and oversees the appointment of Qualified
Persons nominated by the business units; reviews Exploration
Results, Mineral Resources or Mineral Reserves data prior to public
reporting; and oversees the development of the Group Mineral
Resources and Mineral Reserves standards and guidance.
Annual Report on Form 20-F 2025 | 279 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Mineral Resources and Mineral Reserves
Safety and Technical Standards & Assurance
Safety and Technical Standards & Assurance contains a dedicated
team which works in conjunction with the ORSC. It is the guardian
and author of Group Mineral Resources and Ore Reserves
standards and guidance, and is responsible for the governance and
compilation of Group Mineral Resources, Ore Reserves and
reconciliation reporting. This team also advises on disclosure
obligations, monitors the external reporting environment and
facilitates internal audits.
Internal Auditing
Mineral Resources and Mineral Reserves internal audits are
conducted by independent external consulting personnel in a
programme managed by Safety and Technical Standards &
Assurance. Material findings are reported outside of the product
group reporting line to the ORSC, and all reports and action plans
are reviewed by the ORSC for alignment to internal and external
reporting standards.
During 2025, two internal Mineral Resources and Mineral Reserves
audits were completed.
Geoscientific information management and assurance
We employ industry-standard drilling, sampling, assaying and
quality assurance/quality control (QA/QC) practices supported by
formally documented procedures.
Diamond core and reverse circulation are our primary drilling
methods. We use other methods such as sonic and air core if
appropriate for the style of deposit. Drill hole locations are typically
confirmed by high-precision differential Global Positioning System
(GPS) and down-hole trace positioning is primarily achieved by
gyroscopic survey.
Drill sample recovery is typically recorded, and all geological data is
collected by qualified geoscientific professionals. Geological logging
consistency is secured via formal logging procedures and training,
reference materials, application of geological code libraries and
digital logging directly to the geological database.
On-site or commercial laboratories provide appropriate analytical
(assaying) techniques, according to the commodity and style of
deposit. Reliability of assay data is maintained via QA/QC
procedures, which monitor assay accuracy and precision through
the analysis of blanks, sample duplicates and matrix-matched
certified reference materials.
Our geoscientific information management standard is the industry-
leading acQuire system and we employ strict QA/QC criteria to
ensure only high-quality assay data is uploaded to a project’s
database.
Mineral Resources and Mineral Reserves
risk management
Risks to our Mineral Resources and Mineral Reserves estimates are
managed through comprehensive risk assessments undertaken in
support of the annual reporting cycle. Risks are identified and
managed by verifying controls, determining and undertaking suitable
actions to remove or reduce the risk, conducting reviews, and
maintaining compliance with standards and procedures. Risks are
managed through a commercial risk management solution.
At the end of each reporting cycle, we analyse the Mineral
Resources and Mineral Reserves risks across all business units
both to ensure consistency of reporting and determine any Group-
wide risks to the various processes.
Annual Report on Form 20-F 2025 | 280 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations
Qualified Persons
Association(a) | Employer | Accountability | Deposits | |||
Bauxite | ||||||
A McIntyre | AusIMM | Rio Tinto | Resources | Gove, East Weipa & Andoom, North of Weipa, Amrun | ||
W Saba | AusIMM | Reserves | Gove, East Weipa & Andoom, Amrun | |||
M Alpha Diallo | EFG | Compagnie des Bauxites de Guinée (CBG) | Resources | Sangaredi | ||
J Cassoff | OIQ | External consultant to CBG | Reserves | |||
R Aglinskas | AusIMM | Mineração Rio do Norte | Resources | Porto Trombetas (MRN) | ||
G A Coutinho | AusIMM | Mineração Rio do Norte | Reserves | |||
Copper | ||||||
J Pocoe | AusIMM | Rio Tinto | Resources | Winu(b) (d) | ||
G Austin | AusIMM | Rio Tinto | Resources | Kennecott(b) (c) (d) | ||
R Hayes | AusIMM | U/G Resources | ||||
P Rodriguez | AusIMM | Resources | ||||
E Hoffmann | AusIMM | O/P Reserves | ||||
C McArthur | AusIMM | U/G Reserves | ||||
D Hlorgbe | AusIMM | Rio Tinto | Resources | Resolution(b)(c) | ||
H Martin | AusIMM | Resources | ||||
A Schwarz | AusIMM | Resources | ||||
R Maureira | AusIMM | Minera Escondida Ltda. | Resources | Escondida | ||
E Mulet Cortes | AusIMM | Resources | Chimborazo, Pampa Escondida(d), Pinta Verde | |||
P Castillo | AusIMM | Reserves | Escondida | |||
J Marshall | AusIMM | Rio Tinto | Resources | La Granja | ||
J Marshall | AusIMM | Rio Tinto | Resources | Oyu Tolgoi(b) (c) (d) | ||
A Isabel | AusIMM | U/G Reserves | ||||
N Robinson | AusIMM | O/P Reserves | ||||
Iron ore | ||||||
M Judge | AusIMM | Rio Tinto | Resources | Pilbara Operations – Boolgeeda, Brockman, Brockman Process Ore, Channel Iron Deposit, Detrital, Marra Mamba | ||
R Nair | AusIMM | Resources | ||||
P Savory | AusIMM | Resources | ||||
C Valentine | AusIMM | Resources | ||||
O Abdrashitova | AusIMM | Reserves | Pilbara Operations – Brockman Ore, Marra Mamba Ore, Pisolite (Channel Iron) Ore | |||
P Barnes | AusIMM | Reserves | ||||
L Fouché | AusIMM | Reserves | ||||
A Ghosh | AusIMM | Reserves | ||||
L Vilela Couto | AusIMM | Reserves | ||||
B Satria Yudha | AusIMM | Reserves | ||||
M McDonald | PEGNL | Rio Tinto | Resources | Iron Ore Company of Canada | ||
B Power | PEGNL | Resources | ||||
S Roche | AusIMM | Reserves | ||||
P Ziemendorf | AusIMM | Reserves | ||||
M Styles | AusIMM | Rio Tinto | Resources | Simandou | ||
M Apfel | AusIMM | Reserves | ||||
Lithium brine | ||||||
M Rosko | SME | External consultants to Rio Tinto | Resources & Reserves | Rincon | ||
M Zivic | SME | |||||
B Foster | AusIMM | Rio Tinto | Reserves - Processing | |||
S Kosinski | AIPG | Rio Tinto | Resources & Reserves | Cauchari, Fénix, Olaroz, Sal de Vida | ||
Lithium | ||||||
J Oppelaar | AusIMM | External consultant to Rio Tinto | Resources | Mt Cattlin | ||
A Sami | AusIMM | Rio Tinto | Reserves | |||
L Evans | OIQ | External consultant to Rio Tinto | Resources | Galaxy | ||
N Lecuyer | OIQ | External consultant to Rio Tinto | Reserves | |||
C Beaulieu | OGQ | External consultant to Rio Tinto | Resources | Whabouchi | ||
J Cassoff | OIQ | External consultant to Rio Tinto | Reserves | |||
I Misailovic | EFG | Rio Tinto | Resources | Jadar(e) | ||
D Tanaskovic | EFG | Resources |
Annual Report on Form 20-F 2025 | 281 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Qualified Persons
Association(a) | Employer | Accountability | Deposits | |||
Borates | ||||||
B Griffiths | SME | Rio Tinto | Resources & Reserves | Boron | ||
Diamonds | ||||||
K Pollock | NAPEG | Rio Tinto | Resources | Diavik | ||
Z Li | NAPEG | Reserves | ||||
Titanium dioxide | ||||||
F Kerr-Gillespie | OGQ | Rio Tinto | Resources | Rio Tinto Iron and Titanium Quebec Operations | ||
J Solorzano | OIQ | Reserves | ||||
A Cawthorn-Blazeby | SACNASP | Rio Tinto | Resources | Richards Bay Minerals(f) | ||
S Mnunu | SACNASP | Reserves | ||||
A Louw | AusIMM | Rio Tinto | Resources | QIT Madagascar Minerals(f)(g) | ||
P Kluge | SAIMM | Reserves |
(a)AIPG: American Institute of Professional Geologists
AusIMM: Australasian Institute of Mining and Metallurgy
EFG: European Federation of Geologists
NAPEG: Northwest Territories and Nunavut Association of Professional Engineers and Geoscientists
OGQ: L’Ordre des Géologues du Québec
OIQ: L’Ordre des Ingénieurs du Québec
PEGNL: Professional Engineers and Geoscientists Newfoundland and Labrador
SACNASP: South African Council for Natural Scientific Professions
SAIMM: South African Institute of Mining and Metallurgy
SME: Society of Mining, Metallurgy and Exploration
(b)Includes silver
(c)Includes molybdenum
(d)Includes gold
(e)Includes borates
(f)Includes zircon
(g)Includes monazite
Annual Report on Form 20-F 2025 | 282 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations
Mineral Reserves
Type of mine1 | Proven Mineral Reserves as at 31 December 2025 | Probable Mineral Reserves as at 31 December 2025 | |||||
Tonnage | Grade | Tonnage | Grade | ||||
Bauxite2 | Mt | % Al2O3 | % SiO2 | Mt | % Al2O3 | % SiO2 | |
Amrun (Australia)3 | O/P | 724 | 54.1 | 9.0 | 351 | 54.5 | 9.4 |
East Weipa and Andoom (Australia)3 | O/P | 44 | 50.3 | 8.4 | 1.0 | 49.5 | 9.9 |
Gove (Australia)3 | O/P | 35 | 50.1 | 6.7 | 4.9 | 49.9 | 6.9 |
Total (Australia)4 | 803 | 53.7 | 8.8 | 357 | 54.4 | 9.4 | |
Porto Trombetas (MRN) (Brazil)5 6 | O/P | 6.6 | 46.9 | 5.8 | 37 | 49.1 | 4.6 |
Sangaredi (Guinea)7 8 | O/P | 79 | 46.3 | 1.9 | 3.5 | 45.3 | 1.8 |
Total bauxite | 889 | 53.0 | 8.2 | 398 | 53.8 | 8.9 | |
1.Type of mine: O/P = open pit/surface.
2.Bauxite Mineral Reserves are stated as recoverable Mineral Reserves of marketable product after accounting for all mining and processing losses. Mill recoveries are therefore not
shown.
3.Australian bauxite Mineral Reserves are stated as dry tonnes and total alumina and silica grade.
4.Valuations of the Australian bauxite Mineral Reserves are based on specific product pricing based on a long term prices of US$48.69/t CFR China for Gove and US$49.28/t CFR China
for Amrun, East Weipa and Andoom. This price is sourced from leading industry analyst CRU.
5.Porto Trombetas (MRN) Mineral Reserves are stated as dry tonnes, available alumina grade and total reactive silica grade.
6.Porto Trombetas (MRN) Mineral Reserves valuations are based on an average price of US$38.69/t FOB as supplied by the JV partner.
7.Sangaredi Mineral Reserves tonnes are reported on a 3% moisture basis and total alumina and silica grade.
8.Sangaredi Mineral Reserves valuations are based on specific product pricing based on a long term price of US$39.11/t FOB as supplied by the JV partner.
Annual Report on Form 20-F 2025 | 283 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Mineral Reserves
Total Mineral Reserves as at 31 December 2025 | Rio Tinto share recoverable mineral | Total Mineral Reserves as at 31 December 2024 | |||||||
Tonnage | Grade | Tonnage | Grade | ||||||
Mt | % Al2O3 | % SiO2 | % | Mt | Mt | % Al2O3 | % SiO2 | ||
1,076 | 54.2 | 9.1 | 100.0 | 1,076 | 978 | 54.4 | 9.0 | ||
45 | 50.3 | 8.4 | 100.0 | 45 | 56 | 50.5 | 8.1 | ||
40 | 50.1 | 6.7 | 100.0 | 40 | 48 | 50.0 | 6.4 | ||
1,161 | 53.9 | 9.0 | 1,161 | 1,083 | 54.0 | 8.8 | |||
44 | 48.8 | 4.8 | 22.0 | 44 | 46 | 48.9 | 4.7 | ||
82 | 46.3 | 1.9 | 23.0 | 82 | 78 | 47.1 | 1.9 | ||
1,287 | 53.3 | 8.4 | 1,287 | 1,207 | 53.4 | 8.2 | |||
Amrun
The change in Mineral Reserves at Amrun reflects a routine review of economic assumptions over the life of the mine and updated orebody
knowledge. A JORC Table 1 in support of this change will be released to the market contemporaneously with the release of the Annual Report and
can be viewed at riotinto.com/resourcesandreserves.
East Weipa and Andoom & Gove
The decrease in Mineral Reserves tonnes at both Andoom and Gove, is due to mining depletion. Mining operations ceased at East Weipa in 2024.
Annual Report on Form 20-F 2025 | 284 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Mineral Reserves
Lithium brine2 3 | Type of mine1 | Proven Mineral Reserves as at 31 December 2025 | Probable Mineral Reserves as at 31 December 2025 | ||||||
Anticipated total brine volume | Extracted grade | Lithium metal | LCE | Anticipated total brine volume | Extracted grade | Lithium metal | LCE | ||
Mm3 | mg/L Li | Mt | Mt | Mm3 | mg/L Li | Mt | Mt | ||
Cauchari (Argentina) | B/E | 80 | 570 | 0.05 | 0.24 | 350 | 490 | 0.17 | 0.91 |
Fénix (Argentina) | B/E | 310 | 730 | 0.23 | 1.20 | 1,260 | 620 | 0.78 | 4.16 |
Olaroz (Argentina)4 | B/E | 106 | 650 | 0.07 | 0.37 | 412 | 650 | 0.27 | 1.43 |
Rincon (Argentina) | B/E | – | – | – | – | 1,340 | 350 | 0.47 | 2.50 |
Sal de Vida (Argentina) | B/E | 100 | 800 | 0.08 | 0.43 | 510 | 750 | 0.38 | 2.04 |
Total (Argentina) | 596 | 859 | 0.42 | 2.24 | 3,872 | 977 | 2.07 | 11.03 | |
Total lithium brine | 596 | 859 | 0.42 | 2.24 | 3,872 | 977 | 2.07 | 11.03 | |
Lithium5 6 | Type of mine1 | Proven Mineral Reserves as at 31 December 2025 | Probable Mineral Reserves as at 31 December 2025 | Total Mineral Reserves as at 31 December 2025 | ||||||
Tonnage | Grade | Tonnage | Grade | Tonnage | Grade | |||||
Mt | % Li2O | ppm Ta2O5 | Mt | % Li2O | ppm Ta2O5 | Mt | % Li2O | ppm Ta2O5 | ||
Mt Cattlin (Australia) | O/P | |||||||||
– Mt Cattlin open pit | O/P | 0.1 | 0.80 | 158 | 1.6 | 1.31 | 151 | 1.7 | 1.29 | 150 |
– Mt Cattlin stockpile | S/P | – | – | – | 0.6 | 0.54 | 67 | 0.6 | 0.54 | 67 |
Total (Australia) | 0.1 | 0.80 | 158 | 2.2 | 1.11 | 129 | 2.3 | 1.10 | 130 | |
Galaxy (Canada) | O/P | – | – | – | 37 | 1.27 | – | 37 | 1.27 | – |
Whabouchi (Canada) | O/P | 5.3 | 1.40 | – | 8.0 | 1.27 | – | 13 | 1.32 | – |
Total (Canada) | 5.3 | 1.40 | – | 45 | 1.27 | – | 51 | 1.28 | – | |
Total lithium | 5.3 | 1.39 | 2 | 48 | 1.26 | 6 | 53 | 1.28 | 6 | |
1.Type of mine: B/E = brine extraction, O/P = open pit/surface, S/P = stockpile.
2.Lithium brine Mineral Reserves anticipated total brine volume is the cumulative brine volume simulated from the entire wellfield over the life of mine whilst the extracted grade is
averaged for the entire pumping period for the simulated wellfield. Lithium metal and lithium carbonate equivalent (LCE) tonnages at each Reserve category are reported from a point of
reference of the wellhead and assume 100% recovery. To obtain the equivalent tonnage for LCE, the estimated mass of lithium was multiplied by a factor that is based on the atomic
weights of each element in lithium carbonate to obtain the final compound weight. The factor used was 5.323 to obtain LCE mass from lithium mass.
3.Lithium brine Mineral Reserves valuations are based on a lithium carbonate price of US$17,790/t. This price was sourced from the average of the available forecasts from ten brokers/
banks (BoAML, Cannacord, Citigroup, Goldman Sachs, HSBC, JP Morgan, Liberum, Macquarie, Morgan Stanley and UBS) and three analysts (Benchmark, CRU and Woodmac).
4.Olaroz Rio Tinto interest represents its fractional ownership in Sales de Juyjuy (SDJ - 66.5%). Mineral Reserves are not produced from Rio Tinto’s other ownership interests (Olaroz
Lithium, La Frontera, or Minera Andes).
5.Mineral Reserves for lithium are reported as dry mill feed tonnes.
6.Lithium Mineral Reserves valuations are based on a 6% Li2O product price of US$1,361/t (adjusted for the 5.2% product at Mt Cattlin, the 5.6% product at Galaxy and the 5.5% product
at Whabouchi). This price was sourced from the average of the available forecasts from six brokers/banks (BoAML, Cannacord, Goldman Sachs, JP Morgan, Macquarie and UBS)
and three analysts (Benchmark, CRU and Woodmac).
Annual Report on Form 20-F 2025 | 285 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Mineral Reserves
Total Mineral Reserves as at 31 December 2025 | Average process recovery % | Rio Tinto interest | Rio Tinto share recoverable Li metal | Rio Tinto share recoverable LCE | Total Mineral Reserves as at 31 December 2024 | |||||||
Total brine pumped | Extracted grade | Lithium metal | LCE | Total brine pumped | Extracted grade | Lithium metal | LCE | |||||
Mm3 | mg/L Li | Mt | Mt | % | Mt | Mt | Mm3 | mg/L Li | Mt | Mt | ||
430 | 505 | 0.22 | 1.16 | 60 | 100.0 | 0.13 | 0.69 | – | – | – | – | |
1,570 | 642 | 1.01 | 5.36 | 77 | 100.0 | 0.77 | 4.11 | – | – | – | – | |
519 | 650 | 0.34 | 1.79 | 60 | 66.5 | 0.20 | 1.08 | – | – | – | – | |
1,340 | 350 | 0.47 | 2.50 | 90 | 100.0 | 0.42 | 2.25 | 1,340 | 350 | 0.47 | 2.50 | |
610 | 758 | 0.46 | 2.46 | 70 | 100.0 | 0.32 | 1.72 | – | – | – | – | |
4,469 | 955 | 2.49 | 13.27 | 1.85 | 9.85 | 1,340 | 350 | 0.47 | 2.50 | |||
4,469 | 955 | 2.49 | 13.27 | 1.85 | 9.85 | 1,340 | 350 | 0.47 | 2.50 | |||
Average process efficiency % | Rio Tinto interest | Rio Tinto share recoverable Li2O | Rio Tinto share recoverable Ta2O5 | Total Mineral Reserves as at 31 December 2024 | ||||
Tonnage | Grade | |||||||
Spodumene | Tantalite | % | Mt | M lbs | Mt | % Li2O | ppm Ta2O5 | |
67 | 20 | 100.0 | 0.01 | 0.11 | – | – | – | |
25 | 20 | 100.0 | 0.001 | 0.02 | – | – | – | |
0.02 | 0.13 | – | – | – | ||||
69 | – | 100.0 | 0.33 | – | – | – | – | |
85 | – | 50.0 | 0.15 | – | – | – | – | |
0.48 | – | – | – | |||||
0.49 | 0.13 | – | – | – | ||||
Cauchari, Fénix, Olaroz, Sal de Vida Mt Cattlin, Galaxy and Whabouchi,
Following the acquisition of Arcadium Lithium on 6 March 2025 Mineral Reserves were reported for the first time by Rio Tinto on
4 December 2025. A JORC Table 1 in support of this was released to the market on this date and can be viewed at riotinto.com/
resourcesandreserves.
Annual Report on Form 20-F 2025 | 286 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Mineral Reserves
Type of mine1 | Proven Mineral Reserves as at 31 December 2025 | Probable Mineral Reserves as at 31 December 2025 | |||||||||
Tonnage | Grade | Tonnage | Grade | ||||||||
Copper2 | Mt | % Cu | g/t Au | g/t Ag | % Mo | Mt | % Cu | g/t Au | g/t Ag | % Mo | |
Kennecott (US)3 | |||||||||||
– Bingham Open Pit4 | O/P | 442 | 0.38 | 0.18 | 1.98 | 0.034 | 288 | 0.34 | 0.19 | 1.93 | 0.025 |
– Underground Skarns | U/G | 0.8 | 1.68 | 0.59 | 9.83 | 0.042 | 7.8 | 2.13 | 1.16 | 14.28 | 0.012 |
Total (US) | 443 | 0.38 | 0.18 | 1.99 | 0.034 | 296 | 0.39 | 0.21 | 2.26 | 0.024 | |
Escondida (Chile)5 | |||||||||||
– Full SaL | O/P | 57 | 0.77 | – | – | – | 6.5 | 0.69 | – | – | – |
– sulphide | O/P | 905 | 0.62 | – | – | – | 358 | 0.54 | – | – | – |
– sulphide leach | O/P | 348 | 0.39 | – | – | – | 79 | 0.40 | – | – | – |
Total (Chile) | 1,310 | 0.56 | – | – | – | 443 | 0.52 | – | – | – | |
Oyu Tolgoi (Mongolia)6 | |||||||||||
– Hugo Dummett North7 | U/G | – | – | – | – | – | 247 | 1.56 | 0.30 | 3.20 | – |
– Hugo Dummett North Extension | U/G | – | – | – | – | – | 20 | 1.68 | 0.59 | 3.96 | – |
– Oyut Open Pit | O/P | 159 | 0.54 | 0.39 | 1.24 | – | 270 | 0.38 | 0.26 | 1.10 | – |
– Oyut stockpiles | S/P | – | – | – | – | – | 50 | 0.32 | 0.13 | 0.94 | – |
Total (Mongolia) | 159 | 0.54 | 0.39 | 1.24 | – | 587 | 0.92 | 0.28 | 2.06 | – | |
Total copper | 1,911 | 0.52 | 0.07 | 0.56 | 0.008 | 1,326 | 0.67 | 0.17 | 1.42 | 0.005 | |
1.Type of mine: O/P = open pit/surface, S/P = stockpile, U/G = underground.
2.Copper Mineral Reserves are reported as dry mill feed tonnes.
3.Kennecott Mineral Reserves valuations are based on commodity prices of USc421.08/lb for copper, US$2,367.21/oz for gold, US$26.65/oz for silver and US$12.78/lb for molybdenum.
These prices are sourced from the average of the available forecasts from ten brokers/banks (Barclays, BoAML, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan,
Macquarie, Morgan Stanley and UBS) and two analysts (CRU and Woodmac).
4.Bingham Open Pit Mineral Reserves molybdenum grades interpolated from exploration drilling assays have been factored based on a long reconciliation history to blast hole and
mill samples.
5.Escondida Mineral Reserves valuations are based on a copper price of USc400/lb supplied by the JV partner.
6.Oyu Tolgoi Mineral Reserves valuations are based on commodity prices of USc400.19/lb for copper, US$1,693.00/oz for gold, US$22.73/oz for silver. These prices are sourced from the
average of the available June 2024 forecasts escalated to 2025 terms from ten brokers/banks (Barclays, BoAML, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan,
Macquarie, Morgan Stanley and UBS) and two analysts (CRU and Woodmac).
7.The Hugo Dummett North Mineral Reserves include approximately 1.2 million tonnes of stockpiled material at a grade of 0.48% copper, 0.14 g/t gold and 1.18 g/t silver.
Annual Report on Form 20-F 2025 | 287 | riotinto.com |
Production, Mineral Reserves, Mineral Resources and operations | Mineral Reserves
Total Mineral Reserves as at 31 December 2025 | Average mill recovery % | Rio Tinto interest | Rio Tinto share recoverable metal | Total Mineral Reserves as at 31 December 2024 | |||||||||||||||
Tonnage | Grade | Tonnage | Grade | ||||||||||||||||
Mt | % Cu | g/t Au | g/t Ag | % Mo | Cu | Au | Ag | Mo | % | Mt Cu | Moz Au | Moz Ag | Mt Mo | Mt | % Cu | g/t Au | g/t Ag | % Mo | |
730 | 0.36 | 0.18 | 1.96 | 0.030 | 88 | 69 | 71 | 65 | 100.0 | 2.35 | 2.94 | 32.68 | 0.144 | 777 | 0.36 | 0.18 | 1.97 | 0.034 | |
8.6 | 2.08 | 1.11 | 13.86 | 0.014 | 92 | 69 | 66 | 62 | 100.0 | 0.17 | 0.21 | 2.54 | 0.001 | 4.7 | 2.21 | 1.39 | 14.30 | 0.022 | |
739 | 0.38 | 0.19 | 2.10 | 0.030 | 2.52 | 3.15 | 35.22 | 0.145 | 782 | 0.37 | 0.19 | 2.05 | 0.034 | ||||||
63 | 0.76 | – | – | – | 75 | – | – | – | 30.0 | 0.36 | – | – | – | 63 | 0.77 | – | – | – | |
1,263 | 0.59 | – | – | – | 85 | – | – | – | 30.0 | 6.41 | – | – | – | 1,313 | 0.61 | – | – | – | |
426 | 0.39 | – | – | – | 41 | – | – | – | 30.0 | 0.69 | – | – | – | 445 | 0.39 | – | – | – | |
1,753 | 0.55 | – | – | – | 7.47 | – | – | – | 1,820 | 0.56 | – | – | – | ||||||
247 | 1.56 | 0.30 | 3.20 | – | 92 | 79 | 81 | – | 66.0 | 3.57 | 1.88 | 20.44 | – | 255 | 1.58 | 0.31 | 3.25 | – | |
20 | 1.68 | 0.59 | 3.96 | – | 93 | 81 | 84 | – |
|||||||||||
FAQ
How did Rio Tinto (RIO) perform financially in 2025?
Rio Tinto delivered higher revenue and EBITDA in 2025. Consolidated sales revenue rose to $57.6 billion from $53.7 billion, and underlying EBITDA increased 9% to $25.4 billion. Net earnings declined to $10.0 billion as depreciation, finance costs and taxes rose alongside major growth investments.
What were Rio Tinto (RIO)’s 2025 earnings and dividends per share?
Underlying earnings in 2025 were stable at $10.9 billion, with underlying EPS of 669.2 US cents. Profit after tax attributable to owners was $10.0 billion. The company declared a full-year ordinary dividend of 402 US cents per share, maintaining a 60% payout of underlying earnings.
How did Rio Tinto’s (RIO) net debt and cash flow change in 2025?
Net cash generated from operating activities increased to $16.8 billion, up 8% year on year, reflecting stronger volumes. Net debt, however, rose sharply to $14.4 billion from $5.5 billion, mainly due to the $7.6 billion Arcadium Lithium acquisition and $11.4 billion of capital investment.
What major strategic projects did Rio Tinto (RIO) advance in 2025?
Rio Tinto advanced several large projects in 2025, including ramp-up of the Simandou iron ore project in Guinea, record copper growth from the Oyu Tolgoi underground mine, the Arcadium Lithium acquisition, Amrun bauxite expansions, and a $1.2 billion modernisation of the Isle‑Maligne hydro power plant.
How is Rio Tinto (RIO) positioned in energy transition metals like copper and lithium?
Rio Tinto strengthened its energy-transition positioning in 2025. Copper production rose, with Oyu Tolgoi’s underground ramp-up driving a 61% copper increase there, while acquiring Arcadium Lithium created one of the world’s largest lithium resource bases, targeting 200 kt lithium carbonate equivalent capacity by 2028.
What safety and sustainability metrics did Rio Tinto (RIO) report for 2025?
The all‑injury frequency rate was 0.37 per 200,000 hours worked, matching 2024 but including a workplace fatality and a permanent injury. Gross Scope 1 and 2 emissions on an adjusted equity basis were 31.5 Mt CO₂e, about 14% below 2018 levels, reflecting some progress on decarbonisation initiatives.
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